According to the latest EY MENA M&A Insights report, the Middle East and North Africa (MENA) region recorded 425 mergers and acquisitions (M&A) deals in the first half of 2025, marking a 31 percent year-on-year increase in deal volume and a 19 percent rise in total deal value, which reached $58.7 billion.
This robust performance builds on the momentum established in 2024, as regulatory reforms, economic policy shifts, and a more optimistic macroeconomic outlook bolstered investor confidence in early 2025.
Despite a slight moderation in Q2 due to shifting global trade dynamics and regional geopolitical tensions, market sentiment remained largely positive.
Activity continued to be driven by diversification strategies and growth across high-potential sectors such as chemicals, technology, industrials, and real estate.
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UAE and Saudi Arabia attract combined $27.9 billion in investments
In terms of country-specific inflows, the UAE attracted $25.4 billion, while Saudi Arabia received $2.5 billion in investment during H1 2025. These inflows were concentrated in strategic sectors, further solidifying their roles as regional investment hubs.
Cross-border M&A reaches five-year peak
Cross-border transactions dominated the MENA M&A landscape, accounting for 55 percent of total deal volume and a staggering 78 percent of total deal value, with 233 deals worth $45.9 billion. This marks the highest cross-border activity in the past five years, representing a 40 percent increase in deal volume and a 7 percent rise in value compared to the same period in 2024.
The chemicals and technology sectors were the standout contributors, together accounting for 67 percent of total cross-border deal value. A major highlight was Borealis AG and OMV AG’s acquisition of a 64 percent stake in Borouge plc for $16.5 billion, underlining continued appetite for large-scale strategic investments.
Brad Watson, MENA EY-Parthenon Leader, says: “The positive performance in the first half of 2025 underscores the strength, dynamism, and resilience of MENA’s M&A market. We are witnessing record-breaking cross-border activity as investors look beyond short-term volatility, actively pursuing scale, innovation, and new market opportunities.
“The UAE, in particular, remains a magnet for global capital, supported by a stable regulatory framework and a focus on economic diversification, while regional partnerships with Europe, Asia, and North America are opening doors to fresh growth channels.”
Anil Menon, MENA EY-Parthenon Head of M&A and Equity Capital Markets Leader, says: “MENA’s dealmaking continues to thrive in 2025, reflecting investor confidence in the region’s long-term fundamentals.
“Stable oil prices, ongoing infrastructure development, and a strategic focus on technology, chemicals, and industrials are creating solid foundations for sustained activity. As the year progresses, we expect intensifying competition for high-quality assets, particularly those that align with national transformation agendas and offer strategic value beyond financial returns.”
Domestic deals surge with 94 percent growth in value
Domestic M&A activity remained strong, with 192 deals valued at $12.8 billion during the first half of the year. This reflects a 22 percent year-on-year increase in volume and a 94 percent jump in total value.
The diversified industrial products and technology sectors led domestic deal activity, accounting for over half of the value. The largest domestic transaction was Group 42’s $2.2 billion acquisition of a 40 percent stake in Khazna Data Center, showcasing continued interest in data infrastructure.
Inbound investment climbs to $21.5 billion
Inbound M&A activity posted strong gains, with 107 deals representing a 53 percent increase in volume compared to H1 2024. Deal value more than tripled, surging from $6.4 billion to $21.5 billion.
The UAE captured 50 percent of inbound deal volume and 98 percent of total inbound value, solidifying its role as the region’s top destination for foreign capital.
Austria emerged as the largest inbound investor, contributing 77 percent of the total inbound deal value, largely driven by a transformative transaction in the chemicals sector.
Outbound deals and sovereign investments drive further growth
Outbound M&A activity saw 126 deals valued at $24.4 billion, marking a 30 percent increase in volume over the first half of 2024. The UAE and Saudi Arabia together accounted for 87 percent of outbound deal value, with sovereign entities playing a major role.
Key outbound transactions included ADNOC and OMV AG’s acquisition of Canada’s Nova Chemicals and Saudi Aramco’s $3.5 billion acquisition of Primax in South America.
In total, sovereign wealth funds and government-related entities were involved in 54 transactions with a combined value of $21 billion. Institutions such as ADIA, PIF, and Mubadala were particularly active, targeting chemicals, technology, and industrial sectors in alignment with national diversification strategies.
The MENA M&A landscape in H1 2025 reflects resilient investor confidence, strategic cross-border collaboration, and ongoing efforts by regional governments and sovereign investors to diversify economies and strengthen global partnerships.
As regulatory environments continue to evolve and macroeconomic stability improves, deal-making in the region is expected to remain robust into the second half of the year.
