The Middle East recorded $39 billion in mergers and acquisitions (M&A) activity across 475 transactions in 2024, according to PwC’s latest TransAct Middle East report. The figure represents a 4% decline in deal volume compared to 2023’s 493 deals, but significantly outperformed the 17% global drop in M&A volumes. The data signals sustained deal appetite in the region despite wider macroeconomic uncertainty.
Private equity (PE) activity showed marginal growth, with 108 inbound transactions playing a key role in driving volumes. The number of large-scale deals exceeding $1 billion also rose. While the region saw only one such transaction in 2023, 2024 registered five, including the largest deal valued at $3.6 billion. PwC did not name the counterparties involved in that transaction.
Key transactions
Deal momentum in the region was concentrated in sectors such as technology, artificial intelligence, energy, and infrastructure. Notable transactions included Bayanat AI’s $1.5 billion acquisition of Al Yah Satellite Communications, which strengthened the company’s position in geospatial analytics and AI capabilities. Qatar’s Ooredoo secured $550 million to expand its data centre and AI infrastructure portfolio, part of a broader digital transformation push across the Gulf.
In the renewable energy sector, the UAE’s clean energy firm Masdar completed a $2.7 billion acquisition of a controlling stake in Greece’s Terna Energy. The deal, which involved acquiring 67% of the European firm, marks one of the UAE’s largest outbound renewable investments and reflects the region’s growing focus on international sustainability-linked assets.
Another key transaction in 2024 was the $35 billion agreement between Abu Dhabi-based holding company ADQ and the Egyptian government. The deal, centred on the development of the Ras El Hekma area along Egypt’s north coast, is part of Cairo’s broader privatisation programme aimed at reducing fiscal pressure and attracting foreign direct investment.
Sovereign wealth funds remained the primary drivers of regional M&A activity, with Mubadala Investment Company accounting for $29.2 billion in capital deployment across 52 deals. Saudi Arabia’s Public Investment Fund (PIF) and ADQ were also active, aligning their portfolios with long-term national strategic plans. According to PwC, these funds are increasingly focused on acquiring technology, infrastructure and industrial assets that support diversification agendas under initiatives such as Saudi Arabia’s Vision 2030.
Overview of deal activity
Country-specific trends also shaped deal activity. Saudi Arabia saw a rise in domestic deals across healthcare and infrastructure, as the government continues to promote private-sector participation. In 2024, 53% of the investment in the Saudi healthcare sector came from private sources. The country also announced “Project Transcendence,” a $100 billion AI programme aimed at building deep tech capabilities, which is expected to drive future deal activity.
The UAE remained focused on cross-border M&A, with companies targeting energy and digital infrastructure assets in Europe, Asia, and Africa. Emirati companies were involved in three of the five billion-dollar deals recorded in the region last year. Egypt also emerged as an increasingly active market due to ongoing structural reforms and a pipeline of asset sales tied to its IMF-supported economic programme.
Globally, private equity saw an 11% increase in average deal sizes, with the number of deals valued above $1 billion rising from 430 in 2023 to over 500 in 2024. This trend is attributed to growing pressure on fund managers to exit mature assets and return capital to investors, which has led to a higher supply of large-scale opportunities. The Middle East, though smaller in volume, tracked a similar trend with increasing activity in growth sectors.
Looking ahead, more than half of CEOs in the region indicated plans to pursue acquisitions over the next three years. PwC expects cross-border M&A, inbound investment, and sovereign-led strategic transactions to continue shaping the market in 2025. With digital infrastructure, AI, and green energy at the centre of most investment strategies, the region is positioning itself as a global hub for high-growth sectors.
Governments in Saudi Arabia, the UAE and Egypt are also expected to continue liberalising markets and rolling out policies that encourage private and foreign investment. PwC notes that as new sectors emerge and more high-growth opportunities become available, regional and global corporations will have increasing incentives to deploy capital in the Middle East.
