Recent findings show a significant 26 percent surge in merger and acquisition activity across the MENA region, with deal volume rising to 884 in 2025 from 701 the previous year, according to EY.
The EY MENA M&A Insights 2025 report highlights that this surge brought the total deal value to $106.1 billion, representing a 15 percent rise over the $92.3 billion reported the previous year. The GCC region was the primary driver of this activity, accounting for 685 deals with a total value of $102.1 billion. This expansion was largely supported by favorable regulations, economic diversification strategies, and a disciplined approach to deal-making. Cross-border transactions were particularly prominent, representing 54 percent of the total volume and 61 percent of the overall value. Sovereign wealth funds, including ADIA, Mubadala, and the Public Investment Fund (PIF) of Saudi Arabia, continued to serve as the main catalysts for regional activity.
Market resilience and global integration
Brad Watson, EY-Parthenon MENA Leader, says: “The MENA M&A market remained resilient in 2025, with deal volume as well as value rising significantly. Cross-border transactions were the main driver of this upward curve, highlighting the increasing appetite of companies for international expansion and diversification. Governments continued to invest steadily, supported by robust economic growth, low public debt, SWF backing and broader economic diversification initiatives. Rising foreign direct investment (FDI) added further momentum.”
Top transactions of the year
The three largest deals in the region for 2025 were all centered in the UAE. The leading transaction involved the Austrian oil firm OMV and its subsidiary Borealis acquiring a 64 percent stake in Borouge for $16.5 billion. This was followed by L’IMAD Holding Company, an entity owned by the Abu Dhabi Government, acquiring an 84.76 percent stake in Modon Holding for $13.8 billion. The third-largest deal saw the Abu Dhabi-based Multiply Group acquire a 42.2 percent stake in 2PointZero for $7.7 billion.
Cross-border deals accelerate
Cross-border deal-making experienced substantial growth in both volume and value. Inbound deal volume rose by 37 percent to 223 transactions, with values reaching $25.4 billion—more than double the $11.4 billion recorded the previous year. Austria became the leading investor country, contributing 65 percent of the inbound deal value through three major chemical sector transactions. Outbound deals also increased, rising 29 percent to 256 transactions with a combined value of $39.2 billion, or 37 percent of the regional total. Government-related entities played a vital role here, making up 64 percent of outbound deal value. While Canada attracted the highest outbound value at $7.1 billion, the United States remained the most frequent destination in terms of deal volume. Collectively, North America, Europe, and Asia represented 44 percent of cross-border deal volume and 39 percent of their value. Sectors leading the volume included technology and diversified industrial products at 38 percent.
Domestic deals drive momentum
Domestic M&A activity was a key component of the region’s momentum in 2025, accounting for 46 percent of total deal volume with 405 transactions, up from 339 in 2024. The disclosed value for these domestic deals grew from $24.4 billion to $41.6 billion. The technology and consumer products sectors led in terms of domestic volume, contributing 38 percent of the total. Regarding value, the real estate, hospitality, leisure, and asset management sectors represented 55 percent of the domestic total, showcasing a broad spread of investment across local industries.
Strategic deployment of capital
Anil Menon, EY-Parthenon MENA Head of M&A and Equity Capital Markets Leader, says: “2025 was a remarkable show of MENA M&A market resilience. The significant increase in M&A market activity was inspite of regional political unrest, significant global trade policy uncertainties and a once-in-a-generation tech transformation led by AI. These are times of significant shift in fundamental value of assets and we expect M&A to be deployed surgically by corporates and SWFs to drive enduring competitive advantage.”
UAE and Saudi Arabia lead
The UAE and Saudi Arabia remained the focal points for investment, capturing 59 percent of MENA investments as target nations, particularly in technology and professional services. As investors, these two countries contributed 66 percent of total regional deal activity, focusing on technology and diversified industrial products. Other notable participants included Egypt and Kuwait, which ranked among the top five target and bidder nations, alongside appearances by Oman and Qatar. The UAE specifically led domestic activity with 131 deals, reinforced by its stable regulatory environment and economic reforms. It also remained a top choice for foreign investors, accounting for 49 percent of total inbound volume and 92 percent of inbound value across the MENA region.
Banking outbound activity rises
The banking and capital markets sector represented 14 percent of the total outbound deal value in 2025. Financial institutions in the region are increasingly targeting Indian banks and non-banking financial companies due to India’s economic growth and digital user base. Significant transactions in this space included a $4.4 billion deal by Emirates NBD with RBL Bank, a $1.1 billion investment by IHC in Sammaan Capital, and an investment by ADIA in IDFC FIRST Bank.
