M&A Activity in MENA Region Shows Significant Growth in H1 2025
According to a report by Ernst & Young (EY), the Middle East and North Africa (MENA) region recorded a total of 425 mergers and acquisitions (M&A) deals worth approximately $58.7 billion in the first half of 2025. This represents a 31% increase in the number of deals and a 19% rise in their total value compared to the same period last year.
Leading Destinations for M&A
The United Arab Emirates (UAE) and Saudi Arabia have maintained their positions as the top targets for M&A activity in the first half of 2025. The UAE accounted for deals valued at $25.4 billion, while Saudi Arabia saw transactions worth $2.5 billion. Most of this activity was concentrated in the chemicals, industrials, and real estate sectors, with both countries totaling $27.9 billion in transaction value.
Brad Watson, head of EY-Parthenon in the MENA region, stated, “The strong performance in the first half of 2025 reaffirms the robustness and dynamism of the M&A market in MENA.” He noted that cross-border activity is witnessing record levels as investors look beyond short-term volatility in pursuit of expansion, innovation, and new market opportunities. Watson pointed out that the UAE remains an attractive destination for global capital due to its stable regulatory framework and focus on economic diversification, while regional partnerships with Europe, Asia, and North America create new avenues for growth.
Cross-Border Transactions
Cross-border transactions comprised 55% of the total volume and 78% of the total value of M&A deals in the first half of 2025, with 233 deals worth $45.9 billion—marking the highest level in five years. The chemicals and technology sectors contributed significantly, accounting for 67% of the value of these deals. Notably, Borealis AG and OMV AG’s acquisition of a 64% stake in Borealis PLC for $16.5 billion stood out as a significant transaction. This reflects a 40% increase in deal volume and a 7% increase in deal value compared to the same period last year.
Domestic and Inbound Deals
Domestic transactions accounted for 45% of the total volume, totaling 192 deals valued at $12.8 billion during the first six months of the year, representing a 22% increase in volume and a remarkable 94% rise in value year-over-year. The diverse industrial products and technology sectors led the charge in domestic deal value, contributing more than half of the total registered.
The largest domestic deal involved Group 42 acquiring a 40% stake in Khazna Data Center for $2.2 billion. Inbound deal activity surged by 53%, with 107 transactions increasing the total value from $6.4 billion to $21.5 billion in H1 2025. The UAE dominated this arena, making up 50% of the inbound deal volume and an impressive 98% of their value. Austria emerged as the largest investor, contributing 77% of the inbound deal value following a significant transaction in the chemicals sector.
Government-Supported Outbound Transactions
There were 126 outbound transactions valued at $24.4 billion in the first half of 2025, marking a 30% increase in volume compared to the same period in 2024. The UAE and Saudi Arabia collectively accounted for 87% of the value of outbound transactions, largely supported by government-linked entities.
Notable transactions included ADNOC and OMV AG’s acquisition of Canadian chemicals firm Nova and Aramco’s acquisition of Primax in South America for $3.5 billion. Government-linked entities and sovereign wealth funds participated in 54 transactions worth a collective $21 billion, targeting key sectors such as chemicals, technology, and industrials, in line with their long-term diversification goals.