MENA recorded 425 mergers and acquisitions in the first half of 2025, marking a 31 percent jump in volume and a 19 percent rise in value to $58.7 billion (AED 215.6 billion) compared with the same period in 2024, according to EY’s latest report. This surge reflects continued momentum from 2024, supported by regulatory reforms, policy shifts, and a strong macroeconomic outlook.
While activity slowed slightly in Q2 due to shifting trade policies and regional tensions, dealmaking remained resilient. Diversification strategies and high-growth sectors helped maintain confidence, fueling sustained interest across the region.
Cross-Border Deals Lead the Charge
Cross-border transactions reached 233 deals worth $45.9 billion (AED 168.5 billion), the highest in five years, accounting for 55 percent of total volume and 78 percent of total value. Chemicals and technology dominated these deals, representing 67 percent of value, led by Borealis AG and OMV AG’s $16.5 billion (AED 60.6 billion) purchase of a 64 percent stake in Borouge plc.
Brad Watson, MENA EY-Parthenon Leader, said: “The positive performance in the first half of 2025 underscores the strength, dynamism, and resilience of MENA’s M&A market. We are witnessing record-breaking cross-border activity as investors look beyond short-term volatility, actively pursuing scale, innovation, and new market opportunities. The UAE, in particular, remains a magnet for global capital, supported by a stable regulatory framework and a focus on economic diversification.”
UAE Dominates Inbound and Outbound Investment
The UAE and Saudi Arabia attracted a combined $27.9 billion (AED 102.3 billion) in H1 2025, with the UAE leading at $25.4 billion (AED 93.3 billion) and Saudi Arabia securing $2.5 billion (AED 9.1 billion). Inbound M&A rose 53 percent to 107 deals, with value jumping from $6.4 billion (AED 23.5 billion) to $21.5 billion (AED 79.1 billion). The UAE captured 50 percent of inbound volume and 98 percent of inbound value, driven mainly by Austrian investment in chemicals.
Domestic deals totaled 192 transactions worth $12.8 billion (AED 47.1 billion), up 22 percent in volume and 94 percent in value year-on-year. The largest was Group 42’s $2.2 billion (AED 8.1 billion) acquisition of a 40 percent stake in Khazna Data Centre. Outbound activity also grew, with 126 deals worth $24.4 billion (AED 89.6 billion), a 30 percent increase in volume. ADNOC and OMV AG’s purchase of Canada’s Nova Chemicals and Saudi Aramco’s $3.5 billion (AED 12.9 billion) acquisition of Primax in South America were among the highlights.
Government-related entities and sovereign wealth funds, including ADIA, PIF, and Mubadala, drove $21 billion (AED 77.1 billion) across 54 deals. Anil Menon, MENA EY-Parthenon Head of M&A and ECM Leader, said: “Stable oil prices, ongoing infrastructure development, and a strategic focus on technology, chemicals, and industrials are creating solid foundations for sustained activity. As the year progresses, we expect intensifying competition for high-quality assets, particularly those aligned with national transformation agendas and offering strategic value beyond financial returns.”
