- The positive deal flow was driven by sustained investor interest and improving economic environment across MENA.
- The first nine months of 2025 recorded the highest cross-border activity compared to the same period in the past five years.
- The UAE remained the preferred destination for investors.
- The country witnessed the region’s largest deal with the announced acquisition of a 64% stake in Borouge by Borealis and OMV for US$16.5b.
According to the EY MENA M&A Insights 9M 2025 report, the MENA region recorded a 23% rise in merger and acquisition (M&A) activity in the first nine months of this year with 649 deals with a total value of US$69.1b. The GCC region accounted for the majority of the deals at 500, valued at US$65.9b.
The positive deal flow was driven by sustained investor interest and improving economic environment across MENA. Cross-border transactions remained the dominant growth engine for the region, contributing 54% of the volume and 76% of the value. In fact, the first nine months of 2025 recorded the highest cross-border activity compared to the same period in the past five years.
Brad Watson, EY MENA Strategy and Transactions Leader, says:
“The MENA M&A market continues to demonstrate resilience this year. The rise in cross-border deal activity showcases the growing appetite of companies for international expansion and portfolio diversification. Meanwhile, the shift toward mid-size transactions reflects a strategic focus on high-growth, innovation-driven sectors that support long-term economic development in line with the region’s economic diversification goals.”
The United Arab Emirates (UAE) reported the region’s largest M&A of the year to date with the announced acquisition of a 64% stake in Borouge by the Austrian giant OMV and its subsidiary Borealis for US$16.5b. This was followed by Abu Dhabi National Oil Company’s (ADNOC’s) acquisition of a 46.94% stake in the Canadian company NOVA Chemicals for US$6.3b, one of the largest deals in the global petrochemical space. The third-largest deal was the acquisition of the Peruvian fuel distributor Primax S.A by Saudi Aramco for US$3.5b.
Outbound deals contributed the largest share of the M&A transaction value in the first nine months of 2025, with 189 deals amounting to US$28.5b. Canada attracted the highest outbound deal value from MENA investors at US$7.1b, while the United Kingdom (UK) was the preferred target country in terms of deal volume.
During the first nine months of 2025, the region recorded 160 inbound deals with a combined value of US$23.8b, marking a 25% increase in volume and a 34% surge in value compared to the same period last year. Austria emerged as the top investor country, accounting for 69% of the total inbound deal value, driven by the Borouge acquisition by OMV and Borealis.
In terms of sectors, chemicals and technology were the leading contributors to overall deal value at US$23.9b and US$12.2b respectively.
UAE remains favorite investment destination
The UAE remained the preferred destination for investors due to its favorable business environment. The country achieved the highest volume and value for inbound transactions, with 171 deals valued at US$29.0b.
The UAE and KSA were among the top MENA bidders, indicating their active participation in the M&A landscape. Together, they contributed 85% of the total outbound deal value.
MENA-based government-related entities (GREs) focused their outbound investments on energy and utilities infrastructure, technology, logistics and industrial production, which accounted for 39 out of the 189 outbound deals, representing 66% of their total value. Of these, UAE-based GREs executed 22 deals and Saudi-based GREs completed 11 deals, reflecting the growing influence of sovereign-backed investors in cross-border dealmaking.
Egypt and Kuwait made it among the region’s top five target countries as well as bidder countries by volume and value, while Oman and Qatar also made an appearance on the lists.
Anil Menon, EY MENA Head of M&A and Equity Capital Markets Leader, says:
“MENA’s improving economic outlook, expanding digital economy and strategic policy support attracted higher foreign investor interest in the first nine months of this year. The UAE maintained strong foreign direct investment (FDI) momentum, driven by its stable economy and investor-friendly policies. We expect UAE & KSA to remain one of the most attractive deal markets globally”
Domestic deal activity on the rise
Domestic M&As contributed 46% of the total deal volume in the first nine months of 2025 with 300 deals with a combined disclosed value of US$16.8b. Mid-sized deals trended high, driven mainly by activity in technology, provider care as well as banking and capital markets sectors.
Overall, the technology and consumer products industries continued to draw increased investor interest, fueled by digital transformation and evolving consumer behaviors in the region. Both sectors together contributed 40% of the total domestic deal volume and 32% of the value.
Sovereign wealth funds continue to play an active role
Sovereign wealth funds (SWFs) remained among major M&A drivers in MENA, having executed 22 deals during the first nine months of 2025, of which 17 were outbound. The investments were concentrated in the technology, consumer products as well as professional firms and services sectors. Once again, the UAE and KSA were the dominant hubs for SWF activity.
