Mergers and acquisitions across the Middle East and North Africa reached their highest level in five years in the first half of 2025, according to the latest EY MENA M&A Insights report. The region recorded 425 deals worth $58.7 billion, representing a 31% increase in volume and a 19% rise in value compared with the same period in 2024.
The UAE and Saudi Arabia remained the region’s key destinations, attracting a combined $27.9 billion in deal value. The UAE led with $25.4 billion, while Saudi Arabia drew $2.5 billion. Sectors such as chemicals, technology, industrials and real estate continued to attract the bulk of capital.
MENA M&A snapshot
Cross-border transactions accounted for more than half of the activity, with 233 deals worth $45.9 billion, the highest level in the past five years. Chemicals and technology dominated, making up 67% of cross-border deal value. The largest was Borealis AG and OMV AG’s $16.5 billion acquisition of a 64% stake in Borouge plc. Compared with the first half of 2024, cross-border deal volume rose 40% and value increased by 7%.
Domestic transactions represented 192 deals worth $12.8 billion, a 22% increase in volume and a 94% jump in value year-on-year.
Diversified industrial products and technology accounted for over half of this activity. The largest domestic deal was Group 42’s $2.2 billion purchase of a 40% stake in Khazna Data Center.
Inbound M&A also expanded sharply, rising 53% to 107 deals. Total inbound value more than tripled to $21.5 billion from $6.4 billion in the same period a year earlier. The UAE was the main destination, accounting for half of all inbound deals and nearly all of their value. Austria emerged as the largest source of inbound capital, contributing 77% of the total value, largely through a chemicals transaction.
Outbound transactions reached 126 deals worth $24.4 billion, a 30% increase in volume compared with last year. The UAE and Saudi Arabia together accounted for 87% of outbound value, underpinned by sovereign entities. Notable deals included ADNOC and OMV AG’s acquisition of Canada’s Nova Chemicals and Saudi Aramco’s $3.5 billion purchase of Primax in South America.
Sovereign wealth funds and government-related investors remained central to deal activity, contributing $21 billion across 54 transactions. The Abu Dhabi Investment Authority, Mubadala and Saudi Arabia’s Public Investment Fund were among the leading players, directing capital into chemicals, technology and industrial assets in line with national diversification strategies.
The report noted that stable oil prices, ongoing infrastructure development, and a continued focus on high-growth sectors are anchoring long-term investor confidence. Despite softer activity in the second quarter due to global trade uncertainty and regional tensions, overall momentum remains strong, with intensifying competition expected for strategic assets in the months ahead.
