UAE dominates M&A activity in MENA region in H1 2025: EY report
A. SREENIVASA REDDY (ABU DHABI) The UAE has emerged as the leading hub for mergers and acquisitions (M&A) in the Middle East and North Africa (MENA), drawing $25.4 billion in deals during the first half of 2025, according to the latest EY MENA M&A Insights report.Together with Saudi Arabia, which attracted $2.5 billion, the two markets accounted for a combined $27.9 billion, representing nearly half of the MENA region's total deal value .Across MENA, overall activity reached 425 deals worth $58.7 billion in H1 2025, a 31% increase in volume and a 19% rise in value compared with the same period last year. EY attributed the momentum to regulatory reforms, supportive policies, and a resilient macroeconomic outlook, although global trade shifts and regional conflicts tempered the M&A activity slightly in the second quarter .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. The UAE, in particular, remains a magnet for global capital, supported by a stable regulatory framework and a focus on economic diversification.' He added that growing partnerships with Europe, Asia, and North America are opening fresh channels for investment .Cross-border deals reached a five-year high, making up 55% of total volume and 78% of value, at $45.9 billion. Chemicals and technology were the dominant sectors, together contributing 67% of cross-border deal value. Notable deals included ADNOC and OMV AG's acquisition of Canada's Nova Chemicals and Saudi Aramco's $3.5b acquisition of Primax in South America.The report highlighted that inbound M&A surged 53% in volume, with the UAE capturing half of all inbound deals and almost all of their value at 98%. Austria emerged as the top foreign investor, largely due to the chemicals sector transaction.Domestically, the UAE also led with Group 42's $2.2 billion acquisition of a 40% stake in Khazna Data Center ranking as the largest deal .
Government-related entities and sovereign wealth funds such as ADIA, Mubadala, and Saudi Arabia's PIF were also key drivers, contributing $21 billion across 54 transactions, with a strategic focus on chemicals, technology, and industrials in line with long-term diversification agendas.
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