Middle East M&A activity moderated in the first half of 2026, with an estimated 272 transactions recorded, down approximately 8 percent year-on-year. Saudi Arabia remained one of the region’s leading deal markets, recording an estimated 74 transactions during the period.
Yet beneath the headline numbers, the market continued to demonstrate resilience as investors concentrated capital on strategic sectors, technology-driven businesses and long-term value creation.
“The Middle East continues to look beyond today’s uncertainty by investing in the capabilities that will drive tomorrow’s growth. Investment in AI, energy, logistics and industrial capability is laying the foundations for a more resilient M&A market, stronger regional businesses and long-term productivity,” said Imad Matar, Partner, Deals Leader, PwC Middle East.
Saudi Arabia and the UAE drive Middle East M&A activity
According to PwC Middle East’s latest TransAct Middle East – 2026 Mid-Year report, geopolitical uncertainty and a more selective investment environment tempered overall activity but regional and sovereign-linked investors continued to deploy capital with conviction, particularly in energy, infrastructure and technology.
At the same time, technology, media and telecommunications became the region’s most active sector, reflecting growing confidence in digital transformation and technology-enabled business models.
The report also revealed that the Middle East recorded an estimated 272 transactions in mid-year 2026, with Saudi Arabia accounting for 74 deals. Together, Saudi Arabia and the UAE accounted for approximately 65 percent of regional deal volume.
Of disclosed-value transactions, 151 were below $100 million, 12 were valued between $101 million and $500 million and only one exceeded $500 million. Corporate buyers completed 167 transactions, while private equity activity declined to around 105.
Financial services fell from 75 transactions in mid-year 2025 to 53.
Five largest M&A transactions
The five largest disclosed Middle East M&A transactions were:
- DEWA’s $1.41 billion Empower stake acquisition.
- GFH’s $400 million Byrne Equipment Rental acquisition.
- AD Ports Group’s $299.5 million additional stake in Global Feeder Shipping.
- AHS Properties’ $299.5 million acquisition of the Shangri-La Hotel on Sheikh Zayed Road.
- Titan Holdings International’s $282.6 million acquisition of a 67 percent stake in Damas International.
DEWA’s $1.41 billion transactions emerges as largest deal
The largest Middle East M&A transactions centered on utilities, power, logistics and operating infrastructure. DEWA’s $1.41 billion acquisition of a further 24 percent stake in Emirates Central Cooling Systems Corporation was the largest deal and the only one above $500 million.
Energy, utilities and resources recorded 22 transactions, up from 15 a year earlier. Other deals included ACWA Power’s $224.8 million acquisition of a 32 percent stake in the Shuaibah water and power company and ADNOC Drilling’s $204 million acquisition of an 80 percent stake in Oman’s MB Petroleum Services.
“The first half of 2026 tested the resilience of the Middle East’s deal market. Activity moderated, but investors remained focused on strategic growth, prioritizing assets across energy, critical infrastructure and technology that can strengthen long-term value. Regional and sovereign-linked capital continued to play a pivotal role in keeping transactions moving, as buyers became more disciplined and selective in their investment decisions,” said Romil Radia, Partner, Valuations, Performance & Restructuring Leader, PwC Middle East.
The report also revealed that inbound cross-border activity declined by around 19 percent, while intra-regional dealmaking increased by 2 percent. State and sovereign-linked entities featured on at least one side of half of the region’s largest transactions.
GFH Financial Group’s $400 million acquisition of a 60 percent stake in Byrne Equipment Rental reflected regional capital backing a GCC industrial-services platform.
AI and digital transformation reshape the Middle East M&A landscape
Technology, media and telecommunications recorded 76 transactions, up from 54 in mid-year 2025 and 41 in mid-year 2024, making it the region’s most active sector.
Completed M&A focused mainly on software, digital and AI-enabled businesses, while larger investments progressed through partnerships, financing and greenfield infrastructure, creating a future pipeline for consolidation and strategic investment.
As organizations continue to reinvent their business models and governments accelerate national transformation agendas, deal activity is expected to remain focused on sectors that combine strategic relevance with long-term growth potential.
Technology and AI, critical infrastructure, industrial capability, the energy transition, and defense and security are likely to remain priority investment areas, while well-capitalized corporates and sovereign-backed investors continue to shape the region’s next phase of consolidation.
“The next wave of M&A will be defined less by volume and more by quality,” added Radia. “Businesses that can combine technological capability, operational resilience and strategic scale will be best positioned to attract investment and create sustained value.”
