The MENA region recorded 425 merger and acquisition (M&A) deals in the first half of 2025, marking a 31 per cent increase in volume and a 19 per cent rise in value to $58.7bn (AED215.6bn) compared with the same period in 2024, according to the latest EY MENA M&A Insights report.
This performance builds on momentum from 2024, supported by regulatory reforms, policy shifts, and a resilient macroeconomic outlook.
While activity slowed slightly in Q2 due to shifting global trade policies and regional conflicts, dealmaking remained robust, with diversification strategies and high-potential sectors fuelling growth.
UAE leads MENA M&A activity
Cross-border transactions accounted for 233 deals worth $45.9bn (AED168.5bn), representing 55 per cent of total volume and 78 per cent of total value in H1 2025 — the highest level in five years.
Chemicals and technology dominated, contributing 67 per cent of cross-border deal value, led by Borealis AG and OMV AG’s $16.5bn (AED60.6bn) acquisition of a 64 per cent stake in Borouge plc.
Brad Watson, MENA EY-Parthenon Leader, said: “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.”
The UAE and Saudi Arabia attracted a combined $27.9bn (AED102.3bn) in the first half of 2025. The UAE led with $25.4bn (AED93.3bn), while Saudi Arabia secured $2.5bn (AED9.1bn), mainly in chemicals, technology, industrials, and real estate.
Inbound M&A surged 53 per cent to 107 deals, with value soaring from $6.4bn (AED23.5bn) in H1 2024 to $21.5bn (AED79.1bn).
The UAE captured 50 per cent of inbound volume and an extraordinary 98 per cent of inbound value, with Austria contributing 77 per cent of inbound investment on the back of landmark chemical sector transactions.
Domestic deals totalled 192 transactions worth $12.8bn (AED47.1bn), a 22 per cent rise in volume and a 94 per cent jump in value year-on-year.
The largest was Group 42’s $2.2bn (AED8.1bn) acquisition of a 40 per cent stake in Khazna Data Centre.
Outbound activity climbed to 126 deals worth $24.4bn (AED89.6bn), up 30 per cent in volume compared with H1 2024.
The UAE and KSA accounted for 87 per cent of outbound value, with notable transactions including ADNOC and OMV AG’s acquisition of Canada’s Nova Chemicals, and Saudi Aramco’s $3.5bn (AED12.9bn) purchase of Primax in South America.
Government-related entities and sovereign wealth funds contributed $21bn (AED77.1bn) across 54 deals, led by ADIA, PIF, and Mubadala. Activity focused on chemicals, technology, and industrials, aligned with national diversification strategies.
Anil Menon, MENA EY-Parthenon Head of M&A and ECM Leader, said: “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 aligned with national transformation agendas and offering strategic value beyond financial returns.”
