In 2024, the Gulf region became a leading force in global mergers and acquisitions, with sovereign wealth funds from Saudi Arabia and the UAE driving a surge in mega-deals within energy, technology, and manufacturing sectors.
Strategic M&A activity, both inbound and domestic, increased by 88% year-on-year to $36 billion during the first 10 months of 2024, according to Bain & Company, outpacing global deal growth, which rose just 7%.
Grégory Garnier, Middle East Head at Bain, highlighted that the region’s exceptional M&A growth signals its emergence as a global investment hub. Sovereign wealth funds and regional players are seizing both domestic and international opportunities with strategic precision.
Key sectors saw significant growth in 2024, with energy and natural resources up 140%, technology rising 90%, and advanced manufacturing growing 300% compared to 2023.
Global M&A activity reached $3.5 trillion in 2024, marking a 15% increase from 2023. The Middle East’s performance stood out for its scale and strategic focus, with Saudi Arabia’s PIF and UAE funds, including Mubadala and ADIA, leading the charge.
Saudi Aramco’s $8.9 billion acquisition of Rabigh Refining & Petrochemical Co. demonstrated a trend towards larger, transformative deals, signalling a shift towards strategic value rather than sheer volume.
Despite similar sectors, Saudi and UAE sovereign funds have adopted distinct strategies. Saudi funds focus on domestic opportunities in line with Vision 2030, while UAE funds aggressively expand internationally, especially in Europe, where investments increased by over 100%.
The region’s regulatory environment, more favourable than other markets, has attracted global investors. However, future growth will depend on stable oil revenues and geopolitical conditions, although the shift towards high-value deals signals a change in the region’s role in global M&A.
Strategic agility, bolstered by local expertise, positions the Gulf as a growing player in global M&A markets. The region’s evolving approach suggests continued dominance in 2025, particularly as traditional markets face regulatory and interest rate challenges.