MENA M&A Deal Value Soars 66% to USD 46B in Q1
MENA’s mergers and acquisitions (M&A) market witnessed a dramatic surge in Q1 2025, with deal value reaching USD 46 billion, marking a 66% year-on-year (YoY) increase. A total of 225 transactions (up 31% YoY) shaped the region’s dealmaking landscape, largely fueled by regulatory reforms, macroeconomic shifts, and growing investor confidence. Saudi M&A Consulting sees this uptick as a reflection of enhanced liquidity, robust cross-border activity, and sectoral innovation, underscoring the Middle East’s emergence as a global investment hub.
Cross-Border M&A Hit a Five-Year High, Representing 81% of Value
A defining trend of Q1 was the rise in cross-border M&A, reaching a five-year high. Deals involving companies in different countries accounted for 81% of total transaction value and 52% of total volume across 117 transactions.
The rise of outbound investment, particularly from Saudi Arabia and the UAE, highlights regional corporations seeking international diversification. Saudi M&A Consulting anticipates further overseas expansion, particularly in Europe and North America, as Middle Eastern conglomerates tap into global opportunities.
Also Read: $3.5 Billion Niantic Acquisition Strengthens Saudi Global Gaming Presence
Domestic Transactions Hit USD 8.7B, Tech Leads with 37% of Value
Domestic M&A also thrived, clocking in at USD 8.7 billion, a 5x increase YoY. The technology sector dominated 37% of total domestic M&A value and 27% of deal volume, reinforcing the region’s commitment to digital transformation.
Notably, Abu Dhabi-based G42’s USD 2.2 billion acquisition of a 40% stake in Khazna Data Centers was the largest domestic deal, underscoring the heightened interest in cloud infrastructure and data services.
Outbound M&A Activity Hits USD 19.7B, Saudi & UAE Drive 94% of Value
Outbound M&A soared to USD 19.7 billion, accounting for 43% of the region’s total deal value. Saudi Arabia and the UAE led the charge, representing 77% of outbound deals by volume and a staggering 94% by value.
The largest outbound transaction was Adnoc and OMV’s joint USD 6.3 billion acquisition of Canada’s Nova Chemicals, highlighting the Gulf’s expanding global footprint. Saudi M&A Consulting foresees continued outbound growth, particularly in North American energy assets and European industrial sectors.
Inbound M&A Value Hits USD 17.6B, UAE Captures 99% of Funds
Inbound M&A transactions reached USD 17.6 billion, up 7x YoY, with the UAE attracting 53% of inbound deals and nearly all of their value (99%). This was largely driven by the USD 60 billion merger between Adnoc and Austria’s OMV, cementing Austria’s position as the top foreign investor in the region.
Saudi M&A Consulting notes that global investors remain bullish on the Middle East’s economic trajectory, particularly in energy, infrastructure, and AI-driven technology.
Banking Consolidation Looms Amid Market Pressures
The banking sector in the GCC remains ripe for consolidation, driven by lower oil prices, subdued global demand, and profitability pressures. Fitch Ratings suggests that smaller banks with weaker franchises and thinner capital buffers could be M&A targets.
Saudi M&A Consulting expects regional banking deals to accelerate, as financial institutions seek scale and operational efficiency amid an overbanked market with 150+ entities.
MENA’s M&A Pipeline to Stay Strong in Consumer, Tech & Energy
Looking ahead, Saudi M&A Consulting forecasts continued dealmaking momentum, with consumer goods, technology, and energy leading the charge. The integration of AI into market strategies will be pivotal, reshaping value creation and driving sectoral investment.
With Saudi Arabia and the UAE maintaining their dominance, the next wave of M&A activity promises regional leadership in global capital flows and strategic acquisitions.
Also Read: Saudi M&A Consulting Booms with 19% Growth in 2024
