Global markets have witnessed a major surge in merger and acquisition (M&A) activity in 2025, with total deal value surpassing $3.5 trillion by the end of the third quarter. This represents a 34% increase compared to the same period last year, marking one of the strongest years since 2021. At the heart of this global boom are the Gulf’s sovereign wealth funds, including Saudi Arabia’s Public Investment Fund (PIF), the Abu Dhabi Investment Authority (ADIA), and the Qatar Investment Authority (QIA), which are leading an unprecedented wave of strategic international acquisitions.
A New Era of Gulf Dominance in Global Deals
Driven by a strategic imperative to diversify national economies and amplify international economic influence, Gulf sovereign wealth funds (SWFs) have moved to the center of the global deal-making landscape. Despite global economic challenges and interest rate volatility, these funds are leveraging significant liquidity to deploy capital into high-value assets across technology, healthcare, and infrastructure, signaling a major structural shift in the global financial order.
Landmark Deals Redefining Industries
The scale of this new investment thrust is illustrated by several mega-deals that have shaped the market this year:
- In a landmark move in the gaming industry, Saudi’s Public Investment Fund agreed to a $55 billion leveraged buyout to take video game giant Electronic Arts private.
- The Abu Dhabi Investment Authority (ADIA) participated as a minority investor alongside Singapore’s GIC in the $18.3 billion acquisition of medical device company Hologic by Blackstone and TPG.
- Mubadala’s AI company, MGX, collaborated with BlackRock in a $40 billion deal to acquire Aligned Data Centers.
- The Qatar Investment Authority (QIA) partnered with Carlyle to purchase BASF’s coatings unit in a transaction that valued the business at $8.9 billion.
From Passive Capital to Active Strategists
Analysts note that this surge in activity reflects a fundamental change in the Gulf’s investment philosophy—a transition from passive investment to active, strategic control. Rather than focusing on stable assets like real estate, these funds are now aggressively pursuing controlling stakes in high-growth companies. This proactive approach is fueled by high liquidity from strong oil prices in the first half of 2025, enabling Gulf SWFs to seize attractive investment opportunities while many Western institutions remain cautious due to tighter monetary policies.
Catalyzing Domestic Economic Transformation
The benefits of these global acquisitions extend far beyond financial returns. Gulf SWFs are strategically focused on transferring global expertise and cutting-edge technology back to their home markets. These investments are designed to bolster domestic economies by seeding joint ventures and driving projects in critical sectors such as digital transformation, sustainable energy, artificial intelligence, and advanced infrastructure. This activity not only accelerates local development but also cements the Gulf’s position as a vital global financial hub managing trillions of dollars.
About The Public Investment Fund
The Public Investment Fund (PIF) is the sovereign wealth fund of Saudi Arabia and one of the largest in the world. It is a key engine of the Kingdom’s economic transformation under Vision 2030. PIF aims to build a diversified portfolio by investing in attractive, long-term opportunities both locally and internationally, contributing to a more prosperous future for Saudi Arabia and the world.
Source: Jawlah
