The Middle East and North Africa (MENA) region has experienced a significant boost in merger and acquisition (M&A) activities, recording 522 deals valued at $71 billion in the first nine months of 2024.
This marks a 9% increase in deal volume and a 7% rise in deal value compared to the same period in 2023, according to the latest EY MENA M&A Insights report.
The United Arab Emirates (UAE) and the Kingdom of Saudi Arabia (KSA) emerged as prime destinations for investors, thanks to favourable business conditions. The two nations recorded 239 deals during this period, totaling $24.5 billion and representing 52% of the total deal volume and 81% of the deal value in the MENA region.
Anil Menon, EY MENA Head of M&A and Equity Capital Markets Leader, described the M&A market as “extremely buoyant”, adding: “We expect to end the year with more than 700 deals, which will be very close to the historic five-year high of 750 deals.”
During the first nine months of the year, the GCC region hosted the top 10 M&A transactions. The largest disclosed domestic deal was Saudi Aramco’s $8.9 billion acquisition of a stake in Rabigh Refining and Petrochemical Company. Meanwhile, the UAE registered the region’s largest transaction with the acquisition of Truist Insurance Holdings by Clayton Dubilier & Rice, Stone Point Capital and Mubadala Investment for $12.4 billion.
Cross-border mergers and acquisitions were pivotal, contributing 52% of the overall deal volume and 73% of the value. The US remained the preferred destination for MENA investors, with 32 deals valued at $18.3 billion.
Sovereign wealth funds (SWFs), such as Abu Dhabi Investment Authority (ADIA) and Mubadala from the UAE and the Public Investment Fund (PIF), continued to lead the deal activity in the region to support their countries’ economic strategies.
In terms of inbound deals, the MENA region attracted a 20% increase in volume, with the US and UK leading the charge. Technology and professional services sectors saw the highest activity, reflecting increased digitalisation and AI adoption.
“Deal activity in the MENA region has seen a notable improvement this year, driven by strategic policy shifts, the liberalisation of investment regulations and robust capital inflows from investors,” said Brad Watson, EY MENA Strategy and Transactions Leader.
“With companies actively seeking opportunities to grow and diversify their operations, we have observed a surge in cross-border M&A volume and value. In particular, the UAE remained a favoured investment destination during the first nine months of 2024 due to its business-friendly regulations and efficient legislative framework.”
With increasing emphasis on digital transformation and shifting consumer patterns, technology and consumer products witnessed 78 deals, representing 31% of the total domestic M&A volume. Meanwhile, the oil and gas and metals and mining sectors became the major contributors in terms of M&A value with 19 deals amounting to $10.9 billion. Notably, oil and gas accounted for 46% of the total deal value.
