MENA Region Sees Surge in M&A Activity as Deal Value Hits $46 Billion in Q1 2025
The MENA region recorded a sharp uptick in mergers and acquisitions in the first quarter of 2025, with deal volume rising 31% year-on-year to 225 and total deal value soaring 66% to $46 billion, according to the EY MENA M&A Insights 2024 report.
The United Arab Emirates retained its position as the region's top M&A destination, accounting for 63 deals worth $20.3 billion. Kuwait followed with $2.3 billion in deal value, largely driven by transactions in the industrial and utilities sectors.
Cross-border activity led the growth, making up 52% of deal volume and 81% of total value at $37.3 billion — the highest level in five years. The trend reflects a broader strategic push by companies to diversify beyond domestic markets.
Domestically, M&A also saw steady growth, contributing 48% of total deal volume. The technology sector emerged as a key driver, making up 37% of domestic deal value. A standout deal involved Abu Dhabi-based Group 42 acquiring a 40% stake in Khazna Data Centres for $2.2 billion.
The UAE, Saudi Arabia, and Kuwait dominated intraregional transactions, accounting for 83% of domestic deal value. Meanwhile, Canada attracted the highest outbound deal value from MENA investors at $6.4 billion, while the U.S. led in deal volume.
Inbound foreign direct investment surged, with deal value reaching $17.6 billion — a dramatic increase from $2.5 billion a year earlier. Austria led inbound investment, primarily through a major deal in the chemicals sector.
EY analysts expect momentum to continue through 2025, with technology, energy, and consumer sectors driving further activity, fueled by regional reforms and growing investor confidence.
News Source: Emirates News Agency
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