The MENA region recorded a 3 percent rise in merger and acquisition (M&A) activity with 701 deals in 2024, compared to 679 deals in 2023. The total deal value in 2024 reached $92.3 billion, indicating a 7 percent increase from the previous year, according to the latest EY MENA M&A Insights 2024 report. The GCC region accounted for the majority of deals with 580, amounting to $90 billion.
“In 2024, the MENA region witnessed positive developments in the M&A space with a year-on-year (YoY) increase in activity as well as overall deal value. With companies actively seeking opportunities to grow and diversify their operations, cross-border deals were the major driver in terms of volume and value,” stated Brad Watson, EY MENA strategy and transactions leader.
Cross-border deals drive major growth
EY attributed the surge in MENA M&A activity to substantial reforms in the capital markets, strategic policy changes and enhanced efforts to attract foreign investments. Cross-border deals were the major driver of M&A deals in the MENA region, accounting for 52 percent of the volume and 74 percent of the value.
“The top five sub-sectors were insurance, asset management, real estate and hospitality, power and utilities, and technology – indicating a real interest in the innovative solutions that the MENA region can provide. In addition, there is a focus on strengthening regional relationships with Asian and European countries, enabled MENA countries to gain access to larger and growing markets,” added Watson.
UAE reports region’s largest M&A deal in 2024
Sovereign wealth funds, such as the Abu Dhabi Investment Authority (ADIA) and Mubadala from the UAE, as well as the Public Investment Fund (PIF) from Saudi Arabia, continued to lead M&A activity in the MENA region.
The UAE reported the MENA region’s largest M&A deal of the year with the announced acquisition of Truist Insurance by Clayton Dubilier & Rice, Stone Point Capital and Mubadala Investment for $12.4 billion.
This was followed by Saudi Aramco’s acquisition of a 22.5 percent stake in Rabigh Refining and Petrochemical Company from Tokyo-based Sumitomo Chemical for $8.9 billion.
The third-largest deal was the acquisition of a 60 percent stake in the Chinese shopping mall company Zhuhai Wanda Commercial Management Group by PAG, Mubadala and ADIA for $8.3 billion.
Read: UAE’s February Islamic treasury sukuk auction attracts bids worth $1.93 billion
UAE, Saudi Arabia remain preferred destination for investors
The UAE remained the preferred destination for investors due to its enabling business environment. The country achieved the highest volume and value for inbound transactions, with 96 deals valued at $7.6 billion, representing 67 percent of the total deal value.
The highest number of deals, 35, were in the technology sector, driven by the country’s focus on AI, cybersecurity and digital transformation. The landmark acquisition of Abu Dhabi’s Group 42 by Microsoft for $1.5 billion reflects the strengthening ties between the UAE and the United States.
“In 2024, technology remained the most attractive sector for investors, accounting for 23 percent of total inbound and domestic deal volume. We are living through a productivity renaissance fueled by technology and AI, which will manifest in capital allocation and M&A,” stated Anil Menon, EY MENA head of M&A and equity capital markets leader.
Saudi Arabia was another popular investment destination in the region. The UAE and Saudi Arabia reported significant combined deal volume with 318 deals valued at $29.6 billion. The two countries were also among the top MENA bidders, indicating their active participation in the M&A landscape.
In 2024, the United States was the favorite target destination for MENA investors with 41 deals that amounted to $19.9 billion in total value. Morocco made it among the region’s top five target countries as well as bidder countries by volume and value last year, while Qatar, Bahrain, Egypt and Kuwait also made appearances between the target and bidder lists.
