The Middle East and North Africa (MENA) region has witnessed a significant surge in merger and acquisition (M&A) activity in the first nine months of 2024. A total of 522 deals, valued at $71 billion, were recorded during this period, marking a 9% increase in deal volume and a 7% increase in deal value compared to the same period in 2023.
The UAE and Saudi Arabia emerged as the top destinations for investors, attracting 239 deals worth a combined $24.5 billion. These two countries also led in terms of M&A deal volume and value, accounting for 52% and 81%, respectively.
Sovereign Wealth Funds Fuel Growth
Sovereign wealth funds (SWFs) from the UAE and Saudi Arabia, such as Abu Dhabi Investment Authority (ADIA), Mubadala, and the Public Investment Fund (PIF), played a crucial role in driving M&A activity. These funds actively supported their countries’ economic strategies by investing in various sectors.
Cross-border M&A deals contributed significantly to the overall M&A landscape, accounting for 52% of the total volume and 73% of the total value. The United States remained the top target destination for MENA investors, with 32 deals worth $18.3 billion.
The insurance and oil & gas sectors were the most attractive for investors, accounting for 34% of the total deal value. Domestic M&A value increased by 44% year-over-year, driven by government-related entities (GREs) transactions in key sectors.
Favorable Business Environment Drives Growth
The UAE’s business-friendly regulations and efficient legislative framework made it a preferred investment destination. The region’s overall favorable business environment, coupled with strategic policy shifts and liberalized investment regulations, contributed to the surge in M&A activity.
