The Middle East and North Africa (MENA) region has seen a significant upsurge in merger and acquisition (M&A) activities in 2025. The first nine months of the year witnessed a 23% rise, reaching $69.1 billion from a total of 649 deals.
The latest MENA M&A Insights report by EY highlights a notable increase in cross-border transactions, which have hit a five-year high, driven primarily by the United Arab Emirates and Saudi Arabia.
The Gulf Cooperation Council (GCC) remains at the forefront of regional transactions, accounting for 500 deals valued at $65.9 billion. Cross-border investments were a key driver of growth, contributing to 54% of transaction volume and 76% of deal value – the highest percentages seen in recent years.
Brad Watson, from EY MENA, remarks on the resilience of the MENA M&A market. He points out the increasing trend towards international expansion and diversification as central to the market’s dynamics. There’s a noticeable shift towards mid-size deals, focusing on sectors that promise high growth and innovation, aligning with the region’s economic diversification objectives.
The year’s largest acquisition occurred in the UAE, with OMV and Borealis acquiring a 64% stake in Borouge for $16.5 billion. Another significant deal was the acquisition by Abu Dhabi National Oil Company of a 46.94% stake in NOVA Chemicals, a $6.3 billion transaction. Saudi Aramco’s $3.5 billion purchase of Peruvian Primax S.A. underscores Saudi Arabia’s strategy to bolster its international investment presence.
Outbound deals constituted the majority of M&A value, with Canada attracting the highest outbound value and the United Kingdom leading in transaction volume. The UAE was the top target for inbound investments, highlighting its steady foreign direct investment appeal, buoyed by a stable economic framework and policies favourable to investors.
The chemical and technology sectors lead the regional M&A value with significant investments supporting industrial transformation and technological advancement. Domestic transactions increased to contribute 46% of deal volume, concentrated in technology, healthcare and financial services.
Sovereign wealth funds (SWFs) have also been instrumental, engaging in 22 strategic transactions, influenced by countries like UAE and Saudi Arabia.
Egypt, Kuwait, Oman and Qatar are becoming notable players in the M&A arena, reflecting an expanding regional footprint.
