Latest news with #MENAM&AInsights
Al Etihad
2 hours ago
- Business
- Al Etihad
UAE dominates M&A activity in MENA region in H1 2025
19 Aug 2025 23:48 MAYS IBRAHIM (ABU DHABI)The UAE has attracted nearly half of the MENA's total M&A value of $58.7 billion in the first half of 2025, according to the latest EY MENA M&A Insights UAE captured investments worth $25.4 billion, mainly in chemicals, technology, industrials, and real estate. Meanwhile, the Kingdom of Saudi Arabia (KSA) received investments worth $2.5b in the first half of this the MENA region recorded 425 M&A deals between January and June 2025, marking a 31% increase in volume and a 19% rise in value compared to the same period last year. 'This performance builds on the steady flow of transactions seen in 2024, with strong momentum in early 2025 supported by regulatory reforms, policy shifts, and an improving macroeconomic outlook,' the EY report stated. Although deal-making slowed slightly in the second quarter amid global trade policies and regional conflicts, market sentiment remained positive with investors increasingly targeting sectors offering diversification and high-potential growth opportunities.'We are witnessing record-breaking cross-border activity as investors look beyond short-term volatility, actively pursuing scale, innovation, and new market opportunities,' Brad Watson, MENA EY-Parthenon Leader, said.'The UAE, in particular, remains a magnet for global capital, supported by a stable regulatory framework and a focus on economic diversification, while regional partnerships with Europe, Asia, and North America are opening doors to fresh growth channels.'The UAE was the clear leader in inbound M&A, capturing 50% of all inbound deals and an overwhelming 98% of inbound deal value across the region. The UAE also witnessed strong domestic activity, with 192 transactions worth $12.8 billion in H1 2025. Group 42's $2.2 billion acquisition of a 40% stake in Khazna Data Center was the largest local deals across the MENA region hit their highest level in five years, with 233 transactions worth $45.9 billion, accounting for 78% of total deal value. Chemicals and technology sectors dominated, making up 67% of cross-border deal Menon, MENA EY-Parthenon Head of M&A and Equity Capital Markets Leader, noted that the MENA's strong dealmaking in 2025 reflects investor confidence in the region's long-term fundamentals. 'Stable oil prices, ongoing infrastructure development, and a strategic focus on technology, chemicals, and industrials are creating solid foundations for sustained activity,' he explained. 'As the year progresses, we expect intensifying competition for high-quality assets, particularly those that align with national transformation agendas and offer strategic value beyond financial returns.'Outbound activity reached 126 deals valued at $24.4b in H1 2025, up 30% in volume from the same period in 2024, according to EY. 'The UAE and KSA together accounted for 87% of outbound value, supported by government-related entities playing a major role.'Notable UAE-led moves included ADNOC and OMV AG's acquisition of Canada's Nova Chemicals. Sovereign wealth funds and government-backed entities such as ADIA and Mubadala played a central role, driving $21 billion in deal value across chemicals, technology, and industrials.
Al Etihad
12 hours ago
- Business
- Al Etihad
UAE dominates M&A activity in MENA region in H1 2025: EY report
19 Aug 2025 13:52 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 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 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 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.
Al Bawaba
27-02-2025
- Business
- Al Bawaba
MENA region witnesses increased M&A activity in 2024 with 701 deals totaling US$92.3b
According to the latest EY MENA M&A Insights 2024 report, the MENA region recorded a 3% rise in merger and acquisition (M&A) activity with 701 deals in 2024, compared to 679 deals in 2023. The total deal value in 2024 reached US$92.3b, indicating a 7% increase from the previous year. The GCC region accounted for the majority of deals with 580, amounting to US$90.0b. This expansion was largely fueled by substantial reforms in the capital markets, strategic policy changes and enhanced efforts to attract foreign investments. Cross-border deals were the major driver of M&A deals in the MENA region, accounting for 52% of the volume and 74% of the Watson, EY MENA Strategy and Transactions Leader, says: 'In 2024, the MENA region witnessed positive developments in the M&A space with a y-o-y increase in activity as well as overall deal value. With companies actively seeking opportunities to grow and diversify their operations, cross-border deals were the major driver in terms of volume and value. The top five subsectors were insurance, asset management, real estate and hospitality, power and utilities, and technology – indicating a real interest in the innovative solutions that the MENA region can provide. In addition, there is a focus on strengthening regional relationships with Asian and European countries, enabled MENA countries to gain access to larger and growing markets.' Sovereign wealth funds (SWFs), such as the Abu Dhabi Investment Authority (ADIA) and Mubadala from the United Arab Emirates (UAE), as well as the Public Investment Fund (PIF) from the Kingdom of Saudi Arabia (KSA), continued to lead the deal activity in the region. The UAE reported the region's largest M&A deal of the year with the announced acquisition of Truist Insurance by Clayton Dubilier & Rice, Stone Point Capital and Mubadala Investment for US$12.4b. This was followed by Saudi Aramco's acquisition of a 22.5% stake in Rabigh Refining and Petrochemical Company from Tokyo-based Sumitomo Chemical for US$8.9b. The third-largest deal was the acquisition of a 60% stake in the Chinese shopping mall company Zhuhai Wanda Commercial Management Group by PAG, Mubadala and ADIA for US$ deals contributed the largest share of M&A transaction value in 2024 accounting for 61% of the total consolidated deal value, with 199 transactions amounting to US$56.6b. The MENA region continues to be one of the most attractive destinations for foreign direct investors. In 2024, there were 163 inbound deals with a combined value of US$11.4b, marking an 18% increase in volume and a 42% surge in value compared to terms of sectors, technology and consumer products were the leading contributors to overall deal volume, each experiencing a 10% year-on-year (y-o-y) increase. The United States emerged as the largest acquiring country outside of the region by volume and value, with 48 transactions totaling US$4.6 and KSA among preferred investment destinations The UAE remained the preferred destination for investors due to its enabling business environment. The country achieved the highest volume and value for inbound transactions, with 96 deals valued at US$7.6b, representing 67% of the total deal value. The highest number of deals – 35 – were in the technology sector, driven by the country's focus on AI, cybersecurity and digital transformation. The landmark acquisition of Abu Dhabi's Group 42 by Microsoft for US$1.5b reflects the strengthening ties between the UAE and the United States. The US-UAE Business Council actively promotes partnerships between the two countries, creating favorable conditions for cross-border innovation. KSA was another popular investment destination in the region. The UAE and KSA reported significant combined deal volume with 318 deals valued at US$29.6b. The two countries were also among the top MENA bidders, indicating their active participation in the M&A landscape. In 2024, the United States was the favorite target destination for MENA investors with 41 deals that amounted to US$19.9b in total made it among the region's top five target countries as well as bidder countries by volume and value last year, while Qatar, Bahrain, Egypt and Kuwait also made appearances between the target and bidder deal activity on the rise Domestic M&As contributed 48% of the total deal volume in 2024 with 339 deals, compared to 333 deals in 2023. The combined disclosed value of domestic M&A transactions stood at US$24.4b. The technology and consumer products industries have been drawing increased investor interest, fueled by digital transformation and evolving consumer behaviors in the region. Both sectors together contributed 35% of the total domestic deal volume. Oil and gas sector builds on last year's momentum Continuing last year's upward trajectory, oil and gas was the top sector by disclosed deal value in 2024 with US$9.0b, accounting for 37% of the total domestic deal value. This was largely due to Saudi Aramco's US$8.9b acquisition of Rabigh Refining and Petrochemical Company. Anil Menon, EY MENA Head of M&A and Equity Capital Markets Leader, says: 'In 2024, technology remained the most attractive sector for investors, accounting for 23% of total inbound and domestic deal volume. We're living through a productivity renaissance fueled by technology and AI, which will manifest in capital allocation and M&A.' 'The deal book (across sectors) for the fiscal year 2025 remains extremely strong and we expect to see continued portfolio momentum and interest in MENA-based assets.' © 2000 - 2025 Al Bawaba ( Signal PressWire is the world's largest independent Middle East PR distribution service.
