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Arabian Business
2 days ago
- Business
- Arabian Business
MENA region records $46bn in M&A activity in Q1
The MENA region recorded M&A activity worth $46bn in Q1, according to the latest EY MENA M&A Insights report. It represents an increase of 66 per cent, when compared to $27.6b in Q1 2024. The MENA region witnessed 225 M&A deals in Q1 2025, up from the 172 deals recorded in Q1 2024, reflecting a 31 per cent increase in deal volume when compared year-on-year. MENA M&A activity 2025 Cross-border deals were the primary driver of M&A activity in the MENA region, contributing 52 per cent of total deal volume with 117 deals and 81 per cent of total deal value at $37.3bn. The first quarter of 2025 recorded the highest cross-border deal activity both in volume and value when compared to the same period in the past five years, as companies increasingly pursued growth and diversification beyond domestic markets. Brad Watson, MENA EY-Parthenon Leader, said: 'In 2024 we saw a steady flow of M&A deals and the MENA region continues to exhibit a robust influx of M&A transactions in 2025. This is supported by regulatory reforms, policy shifts, and a favourable macroeconomic outlook, including easing interest rates and improved investor sentiment. 'This growth is also reflected in the steady increase of domestic M&A activity, which contributed 48 per cent of total deal volume in Q1 2025. 'The rise in domestic M&A transactions aligns with the IMF projection that MENA GDP will grow by 3.6 per cent this year and is further supported by the strong global M&A momentum. 'Companies are realigning their strategies to better accommodate the need for diversification, digital transformation, and the integration of emerging technologies.' In the MENA region, the UAE remained the top target country with 63 deals totalling $20.3bn in Q1 2025. Kuwait ranked second in terms of deal proceeds, reaching $2.3bn, driven by two major transactions in the Diversified Industrial Products and Power and Utilities sectors. During the first three months of 2025, Canada attracted the highest outbound deal value from MENA investors at $6.4bn, while the USA remained the preferred target destination in terms of deal volume. Sovereign Wealth Funds (SWFs) like ADIA, PIF, and Mubadala, along with other government-related entities (GREs), remained key M&A drivers in Q1 2025, aligning with national economic strategies and diversification goals. In the first quarter of 2025, M&A activity in the MENA region witnessed a 20 per cent increase in deal volume while deal value rose significantly reaching $8.7bn as compared to $1.69bn recorded in Q1 2024. The technology sector led domestic M&A activity in MENA in Q1 2025, contributing 37 per cent of total domestic deal value and 27 per cent of total domestic deal volume. The largest domestic deal during the first quarter of the year was a $2.2bn acquisition where Group 42, an Abu Dhabi based AI and cloud computing firm, agreed to acquire a 40 per cent stake in Khazna Data Centres, a digital infrastructure provider. Intraregional deals involving the UAE, Kuwait, and the Kingdom of Saudi Arabia (KSA) accounted for 83 per cent of total domestic deal value and 56 per cent of total domestic deal volume, highlighting strong intraregional M&A activity, particularly in the technology, industrials, and real estate sectors. The MENA region continues to emerge as one of the most attractive destinations for foreign direct investment during the first few months of 2025, with inbound deal volume surging by 21 per cent and deal value reaching $17.6bn, when compared to $2.5bn in Q1 2024. The UAE remains the leading destination for foreign direct investment in the MENA region in Q1 2025, capturing 53 per cent of total inbound deal volume and 99 per cent of the total inbound deal value. Austria was the top investor country, accounting for 94 per cent of total inbound deal value, largely driven by a major transaction in the chemicals sector. During the first three months of 2025, outbound deal volume increased by 63 per cent when compared to Q1 2024, with a total deal value of $19.7bn, contributing 43 per cent of overall deal value. The UAE and KSA led the outbound investment from the MENA region, accounting for 77 per cent of total deal volume and 94 per cent of total outbound value. Though chemicals and oil and gas dominated in outbound deal value, outbound deal volume was primarily focused on technology, diversified industrial products, and professional services. This trend reflects the region's broader diversification strategy into high-growth global sectors. The UK was the leading destination for outbound M&A deals from MENA by volume, recording 13 transactions in Q1 2025. Canada and Peru together contributed 50 per cent of total outbound deal value driven primarily by a major transaction in Canada's chemical sector. ADNOC and Austria's OMV AG has agreed to acquire Canada's Nova chemicals for $6.3bn by holding 46.94 per cent each in the newly formed Borouge International Group. Anil Menon, MENA EY-Parthenon Head of M&A and Equity Capital Markets Leader, said: 'The MENA deal markets remained resilient despite lack of clarity on two fronts: the impact of monetary policy on cost of capital and the ongoing tariff and trade discussions. 'The MENA deal book for the remainder of 2025 is promising and we can expect to see increased activity in consumer, technology, and energy sectors. In addition, with AI expected to drive material shifts in fundamental value, we can expect to see significant capital allocation in technology.'
Gulf Business
2 days ago
- Business
- Gulf Business
MENA M&A activity surges in Q1 2025 with $46bn in deals: EY
Image: Getty Images/ For illustrative purposes Mergers and acquisitions (M&A) in the Middle East and North Africa (MENA) region surged in Q1 2025, with 225 deals valued at $46bn, according to EY's latest MENA M&A Insights 2024 report. This marks a 31 per cent increase in deal volume and a 66 per cent rise in deal value compared to Q1 2024. Cross-border transactions remained the key driver of M&A activity, accounting for 117 deals worth $37.3bn — 52 per cent of total volume and 81 per cent of total value. This represents the highest quarterly cross-border activity in both value and volume in the past five years, as companies seek growth and diversification outside their domestic markets. 'The MENA region continues to exhibit a robust influx of M&A transactions in 2025,' said Brad Watson, MENA EY-Parthenon leader. 'This is supported by regulatory reforms, policy shifts, and a favorable macroeconomic outlook, including easing interest rates and improved investor sentiment.' Watson added that the steady rise in domestic M&A activity — 48 per cent of total deal volume in Q1 2025 — aligns with the IMF's projection of 3.6 per cent GDP growth for the region. 'Companies are realigning their strategies to better accommodate the need for diversification, digital transformation, and the integration of emerging technologies,' he said. The UAE maintained its position as the top MENA target country, with 63 deals totaling $20.3bn in Q1 2025. Kuwait followed with$2.3bn in deal proceeds, bolstered by two major transactions in the Diversified Industrial Products and Power & Utilities sectors. Canada attracted the highest outbound MENA deal value at $6.4bn, while the US remained the most popular outbound destination by volume. Sovereign Wealth Funds (SWFs) such as ADIA, PIF, and Mubadala, alongside other government-related entities (GREs), were key M&A players in the quarter, aligning with national diversification strategies. Domestic M&A shows 20 per cent rise Domestic M&A also showed strong growth, with a 20 per cent rise in volume and deal value jumping to $8.7bn from $1.69bn in Q1 2024. The technology sector led domestic activity, contributing 37 per cent of value and 27 per cent of volume. The largest domestic transaction was Abu Dhabi-based G42's $2.2bn acquisition of a 40 per cent stake in Intraregional deals involving the UAE, Kuwait, and Saudi Arabia represented 83 per cent of total domestic deal value and 56 per cent of volume, highlighting ongoing regional integration in the technology, industrials, and real estate sectors. The region also continued to attract strong foreign direct investment (FDI), with inbound deal volume rising 21 per cent and value reaching $17.6bn — up sharply from $2.5bn a year earlier. The UAE captured 53 per cent of inbound deal volume and 99 per cent of value. Austria emerged as the top investor country, accounting for 94 per cent of total inbound value, led by a major chemicals sector transaction. Outbound M&A highlights Outbound M&A saw a 63 per cent increase in deal volume and totaled US$19.7bn, driven by investments from the UAE and Saudi Arabia, which together contributed 77 per cent of outbound volume and 94 per cent of value. While the chemicals and oil & gas sectors led in outbound deal value, the highest number of outbound transactions were in technology, industrial products, and professional services. The UK was the leading destination for outbound M&A by volume with 13 deals, while Canada and Peru together accounted for 50 per cent of outbound deal value. A key transaction was ADNOC and Austria's OMV AG's joint acquisition of Canada's Nova Chemicals for $6.3bn, through a new entity, Borouge International Group, in which both parties will hold a 46.94 per cent stake. 'The MENA deal markets remained resilient despite lack of clarity on two fronts: the impact of monetary policy on cost of capital and the ongoing tariff and trade discussions,' said Anil Menon, 'With AI expected to drive material shifts in fundamental value, significant capital allocation in technology is likely.'
Zawya
2 days ago
- Business
- Zawya
UAE leads MENA M&A boom with 63 deals in Q1-25
DUBAI - The MENA region witnessed 225 mergers and acquisitions (M&A) activity deals in Q1 2025, up from the 172 deals recorded in Q1 2024, reflecting a 31% increase in deal volume when compared year-on-year, according to the latest EY MENA M&A Insights 2024 report. Total deal value rose by 66% to US$46 billion in Q1 2025, when compared to US$27.6 billion in Q1 2024. The United Arab Emirates remained the top target country with 63 deals totalling US$20.3 billion in Q1-2025. Kuwait ranked second in terms of deal proceeds, reaching US$2.3 billion, driven by two major transactions in the diversified industrial products, and power and utilities sectors. Cross-border deals were the primary driver of M&A activity in the MENA region, contributing 52% of total deal volume with 117 deals and 81% of total deal value at US$37.3b. Q1 2025 recorded the highest cross-border deal activity both in volume and value when compared to the same period in the past five years, as companies increasingly pursued growth and diversification beyond domestic markets. Brad Watson, MENA EY-Parthenon Leader, said: 'In 2024 we saw a steady flow of M&A deals and the MENA region continues to exhibit a robust influx of M&A transactions in 2025. This is supported by regulatory reforms, policy shifts and a favourable macroeconomic outlook, including easing interest rates and improved investor sentiment.' 'This growth is also reflected in the steady increase of domestic M&A activity, which contributed 48% of total deal volume in Q1 2025. The rise in domestic M&A transactions aligns with the International Monetary Fund (IMF) projection that MENA GDP will grow by 3.6% this year and is further supported by the strong global M&A momentum. Companies are realigning their strategies to better accommodate the need for diversification, digital transformation and the integration of emerging technologies.' During the first three months of 2025, Canada attracted the highest outbound deal value from MENA investors at US$6.4b, while the USA remained the preferred target destination in terms of deal volume. In Q1 2025, M&A activity in the MENA region witnessed a 20% increase in deal volume while deal value rose significantly reaching US$8.7b as compared to US$1.69b recorded in Q1 2024. The technology sector led domestic M&A activity in MENA in Q1 2025, contributing 37% of total domestic deal value and 27% of total domestic deal volume. The largest domestic deal during Q1 2025 was a US$2.2b acquisition where Group 42, an Abu Dhabi based AI and cloud computing firm, agreed to acquire a 40% stake in Khazna Data Centres, a digital infrastructure provider. Intraregional deals involving the UAE, Kuwait and the Kingdom of Saudi Arabia accounted for 83% of total domestic deal value and 56% of total domestic deal volume, highlighting strong intraregional M&A activity, particularly in the technology, industrials and real estate sectors. The MENA region continues to emerge as one of the most attractive destinations for foreign direct investment (FDI) during the first few months of 2025, with inbound deal volume surging by 21% and deal value reaching US$17.6b, when compared to US$2.5b in Q1 2024. The UAE remains the leading destination for FDI in the MENA region in Q1 2025, capturing 53% of total inbound deal volume and 99% of the total inbound deal value. Austria was the top investor country, accounting for 94% of total inbound deal value, largely driven by a major transaction in the chemicals sector. During the first three months of 2025, outbound deal volume increased by 63% when compared to Q1 2024, with a total deal value of US$19.7b, contributing 43% of overall deal value. The UAE and KSA led the outbound investment from the MENA region, accounting for 77% of total deal volume and 94% of total outbound value. Though chemicals and oil and gas dominated outbound deal value, outbound deal volume was primarily focused on technology, diversified industrial products and professional services. This trend reflects the region's broader diversification strategy into high-growth global sectors. Anil Menon, MENA EY-Parthenon Head of M&A and Equity Capital Markets Leader, said: 'The MENA deal markets remained resilient despite lack of clarity on two fronts: the impact of monetary policy on cost of capital and the ongoing tariff and trade discussions. The MENA deal book for the remainder of 2025 is promising and we can expect to see increased activity in consumer, technology, and energy sectors. In addition, with AI expected to drive material shifts in fundamental value, we can expect to see significant capital allocation in technology.'
Khaleej Times
2 days ago
- Business
- Khaleej Times
UAE remains top target country for Mena M&As in first quarter
The UAE remained the top target country in terms mergers and acquisitions (M&A) within the Middle East and North Africa (Mena) region in the first quarter of this year, with 63 deals totaling $20.3 billion in Q1 2025 data showed. According to the latest EY Mena M&A Insights 2024 report, Kuwait ranked second in terms of deal proceeds, reaching $2.3 billion, driven by two major transactions in the Diversified Industrial Products and Power & Utilities sectors. The Mena region witnessed 225 M&A deals in Q1 2025, up from the 172 deals recorded in Q1 2024, reflecting a 31 per cent increase in deal volume when compared year-on-year. Total deal value rose by 66 per cent to $46 billion in Q1 2025, when compared to $27.6 billion in Q1 2024. Cross-border deals were the primary driver of M&A activity in the Mena region, contributing 52 per cent of total deal volume with 117 deals and 81 per cent of total deal value at $37.3b. The first quarter of 2025 recorded the highest cross-border deal activity both in volume and value when compared to the same period in the past five years, as companies increasingly pursued growth and diversification beyond domestic markets. Brad Watson, Mena EY-Parthenon Leader, said: 'In 2024 we saw a steady flow of M&A deals and the Mena region continues to exhibit a robust influx of M&A transactions in 2025. This is supported by regulatory reforms, policy shifts, and a favorable macroeconomic outlook, including easing interest rates and improved investor sentiment. This growth is also reflected in the steady increase of domestic M&A activity, which contributed 48 per cent of total deal volume in Q1 2025. The rise in domestic M&A transactions aligns with the IMF projection that Mena GDP will grow by 3.6 per cent this year and is further supported by the strong global M&A momentum. Companies are realigning their strategies to better accommodate the need for diversification, digital transformation, and the integration of emerging technologies.' During the first three months of 2025, Canada attracted the highest outbound deal value from Mena investors at $6.4 billion, while the USA remained the preferred target destination in terms of deal volume. Sovereign Wealth Funds (SWFs) like the Abu Dhabi Investment Authority, Saudi Arabia's Public Investment Fund and Mubadala, along with other government-related entities (GREs), remained key M&A drivers in Q1 2025, aligning with national economic strategies and diversification goals. Domestic M&A activity continues to rise from previous years In the first quarter of 2025, M&A activity in the Mena region witnessed a 20 per cent increase in deal volume while deal value rose significantly reaching $8.7 billion as compared to $1.69 billion recorded in Q1 2024. The technology sector led domestic M&A activity in Mena in Q1 2025, contributing 37 per cent of total domestic deal value and 27 per cent of total domestic deal volume. The largest domestic deal during the first quarter of the year was a $2.2b acquisition where Group 42, an Abu Dhabi based AI and cloud computing firm, agreed to acquire a 40 per cent stake in Khazna Data Centres, a digital infrastructure provider. Intraregional deals involving the UAE, Kuwait, and Saudi Arabia accounted for 83 per cent of total domestic deal value and 56 per cent of total domestic deal volume, highlighting strong intraregional M&A activity, particularly in the technology, industrials, and real estate sectors. The Mena region continues to emerge as one of the most attractive destinations for foreign direct investment during the first few months of 2025, with inbound deal volume surging by 21 per cent and deal value reaching $17.6 billion, when compared to $2.5 billion in Q1 2024. During the first three months of 2025, outbound deal volume increased by 63 per cent when compared to Q1 2024, with a total deal value of $19.7 billion, contributing 43 per cent of overall deal value. The UAE and Saudi Arabia led the outbound investment from the Mena region, accounting for 77 per cent of total deal volume and 94 per cent of total outbound value. Though chemicals and oil and gas dominated in outbound deal value, outbound deal volume was primarily focused on technology, diversified industrial products, and professional services. This trend reflects the region's broader diversification strategy into high-growth global sectors. The UK was the leading destination for outbound M&A deals from Mena by volume, recording 13 transactions in Q1 2025. Canada and Peru together contributed 50 per cent of total outbound deal value driven primarily by a major transaction in Canada's chemical sector. Adnoc and Austria's OMV agreed to acquire Canada's Nova chemicals for $6.3 billion by holding 46.94 per cent each in the newly formed Borouge International Group. Anil Menon, Mena EY-Parthenon Head of M&A and Equity Capital Markets Leader, says: 'The Mena deal markets remained resilient despite lack of clarity on two fronts: the impact of monetary policy on cost of capital and the ongoing tariff and trade discussions. The Mena deal book for the remainder of 2025 is promising and we can expect to see increased activity in consumer, technology, and energy sectors. In addition, with AI expected to drive material shifts in fundamental value, we can expect to see significant capital allocation in technology.'
Trade Arabia
3 days ago
- Business
- Trade Arabia
MENA records 225 M&A deals worth $46bn in Q1
The MENA region witnessed 225 mergers and acquisitions (M&A) deals in Q1 2025, up from the 172 deals recorded in Q1 2024, reflecting a 31% increase in deal volume when compared year-on-year. Total deal value rose by 66% to $46 billion in Q1 2025, when compared to $27.6 billion in Q1 2024, said the latest EY MENA M&A Insights 2024 report. Cross-border deals were the primary driver of M&A activity in the MENA region, contributing 52% of total deal volume with 117 deals and 81% of total deal value at $37.3 billion. The first quarter of 2025 recorded the highest cross-border deal activity both in volume and value when compared to the same period in the past five years, as companies increasingly pursued growth and diversification beyond domestic markets. Brad Watson, MENA EY-Parthenon Leader, says: 'In 2024 we saw a steady flow of M&A deals and the MENA region continues to exhibit a robust influx of M&A transactions in 2025. This is supported by regulatory reforms, policy shifts, and a favorable macroeconomic outlook, including easing interest rates and improved investor sentiment.' 'This growth is also reflected in the steady increase of domestic M&A activity, which contributed 48% of total deal volume in Q1 2025. The rise in domestic M&A transactions aligns with the IMF projection that MENA GDP will grow by 3.6% this year and is further supported by the strong global M&A momentum. Companies are realigning their strategies to better accommodate the need for diversification, digital transformation, and the integration of emerging technologies.' In the MENA region, the UAE remained the top target country with 63 deals totaling $20.3 billion in Q1 2025. Kuwait ranked second in terms of deal proceeds, reaching $2.3 billion, driven by two major transactions in the Diversified Industrial Products and Power & Utilities sectors. During the first three months of 2025, Canada attracted the highest outbound deal value from MENA investors at $6.4 billion, while the US remained the preferred target destination in terms of deal volume. Sovereign Wealth Funds (SWFs) like ADIA, PIF, and Mubadala, along with other government-related entities (GREs), remained key M&A drivers in Q1 2025, aligning with national economic strategies and diversification goals. Domestic M&A activity rise In the first quarter of 2025, M&A activity in the MENA region witnessed a 20% increase in deal volume while deal value rose significantly reaching $8.7 billion as compared to $1.69 billion recorded in Q1 2024. The technology sector led domestic M&A activity in MENA in Q1 2025, contributing 37% of total domestic deal value and 27% of total domestic deal volume. The largest domestic deal during the first quarter of the year was a $2.2 billion acquisition where Group 42, an Abu Dhabi based AI and cloud computing firm, agreed to acquire a 40% stake in Khazna Data Centres, a digital infrastructure provider. Intraregional deals involving the UAE, Kuwait, and Saudi Arabia (KSA) accounted for 83% of total domestic deal value and 56% of total domestic deal volume, highlighting strong intraregional M&A activity, particularly in the technology, industrials, and real estate sectors. MENA region remains an attractive The MENA region continues to emerge as one of the most attractive destinations for foreign direct investment during the first few months of 2025, with inbound deal volume surging by 21% and deal value reaching $17.6 billion, when compared to $2.5 billion in Q1 2024. The UAE remains the leading destination for foreign direct investment in the MENA region in Q1 2025, capturing 53% of total inbound deal volume and 99% of the total inbound deal value. Austria was the top investor country, accounting for 94% of total inbound deal value, largely driven by a major transaction in the chemicals sector. Diversification efforts During the first three months of 2025, outbound deal volume increased by 63% when compared to Q1 2024, with a total deal value of $19.7 billion, contributing 43% of overall deal value. The UAE and KSA led the outbound investment from the MENA region, accounting for 77% of total deal volume and 94% of total outbound value. Though chemicals and oil & gas dominated in outbound deal value, outbound deal volume was primarily focused on technology, diversified industrial products, and professional services. This trend reflects the region's broader diversification strategy into high-growth global sectors. The UK was the leading destination for outbound M&A deals from MENA by volume, recording 13 transactions in Q1 2025. Canada and Peru together contributed 50% of total outbound deal value driven primarily by a major transaction in Canada's chemical sector. ADNOC and Austria's OMV AG has agreed to acquire Canada's Nova chemicals for US$6.3b by holding 46.94% each in the newly formed Borouge International Group. Anil Menon, MENA EY-Parthenon Head of M&A and Equity Capital Markets Leader, says: 'The MENA deal markets remained resilient despite lack of clarity on two fronts: the impact of monetary policy on cost of capital and the ongoing tariff and trade discussions. The MENA deal book for the remainder of 2025 is promising and we can expect to see increased activity in consumer, technology, and energy sectors. In addition, with AI expected to drive material shifts in fundamental value, we can expect to see significant capital allocation in technology.' -TradeArabia News Service
