The Middle East and North Africa region’s mergers and acquisitions market demonstrated remarkable strength in 2025, with total deal value reaching $106.1 billion, a 15% increase from the previous year. According to a new report by EY, this surge occurred despite persistent global economic uncertainty, with total deal volume climbing 26% year-on-year to 884 transactions, signaling sustained investor confidence in the region.
GCC and Sovereign Wealth Funds Lead The Charge
The Gulf Cooperation Council (GCC) was the engine of this growth, accounting for 685 deals valued at an impressive $102.1 billion. This momentum is a direct reflection of the region’s continued economic diversification efforts, strategic moves to reduce reliance on oil revenues, and robust government-backed investment frameworks.
Sovereign wealth funds (SWFs) remained central to this high-value dealmaking. Major players such as Saudi Arabia’s Public Investment Fund (PIF) and the UAE’s Abu Dhabi Investment Authority (ADIA) and Mubadala Investment Company were key drivers of both regional and international acquisitions, leveraging their significant capital to pursue strategic global assets.
Cross-Border Deals Dominate The Landscape
Highlighting the region’s increasing integration into the global economy, cross-border transactions were the primary driver of growth. These deals accounted for 54% of total volume and 61% of total value.
“The MENA M&A market remained resilient in 2025, with deal volume as well as value rising significantly,” said Brad Watson, EY-Parthenon MENA Leader. He noted that cross-border transactions were the primary driver of growth, highlighting companies’ growing appetite for international expansion and portfolio diversification.
Inbound M&A activity saw 223 deals, a 37% increase, with the total value more than doubling to $25.4 billion. Propelled by major deals in the chemicals sector, Austria emerged as the leading inbound investor by value.
Outbound activity also strengthened significantly, with 256 transactions worth $39.2 billion. Government-related entities accounted for 64% of this value, led by SWFs pursuing global expansion. Canada attracted the highest outbound deal value from MENA investors at $7.1 billion, while the United States remained the most targeted destination by volume.
UAE Anchors Mega-Deals
The United Arab Emirates cemented its position as a major M&A hub, hosting the region’s three largest transactions of 2025.
The top deal involved OMV and its subsidiary Borealis acquiring a 64% stake in Borouge for $16.5 billion. This was followed by L’IMAD Holding Co.’s $13.8 billion acquisition of an 84.76% stake in Modon Holding. The third-largest transaction saw Multiply Group acquire a 42.2% stake in 2PointZero for $7.7 billion.
Domestic Activity Gathers Pace
Alongside the flourishing cross-border market, domestic dealmaking also gained significant momentum. Local transactions rose to 405 deals in 2025, up from 339 the previous year, with a disclosed value of $41.6 billion.
Technology and consumer products led domestic deal volume, while real estate and asset management accounted for 55% of the total domestic deal value.
“The significant increase in M&A market activity was despite regional political unrest, global trade policy uncertainty, and a once-in-a-generation AI-led technology transformation,” said Anil Menon, MENA Head of M&A and Equity Capital Markets Leader at EY. He added that shifting asset valuations are prompting corporates and SWFs to deploy capital strategically to secure long-term competitive advantages.
About EY
EY, or Ernst & Young, is a multinational professional services network with headquarters in London. As one of the largest professional services networks in the world, it provides assurance, tax, consulting, and advisory services to a wide range of clients. EY’s purpose is to build a better working world by helping create long-term value for clients, people, and society, and to build trust in the capital markets.
Source: Fast Company Middle East
