The Middle East has recorded a sharp rise in mergers and acquisitions (M&A) in the first half of 2025, bucking the global slowdown, according to PwC Middle East’s 2025 TransAct mid-year update report.
The report, “Middle East M&A defies global slowdown powered by sovereign capital, reforms, and high-growth sectors”, revealed 271 deals were completed in H1 2025, a 19 per cent increase from 228 deals in the same period last year.
This surge comes despite global M&A volumes falling by 9 per cent, highlighting the region’s ability to sustain momentum through sovereign capital, ambitious reforms, and diversification into high-growth sectors.
MENA M&A activity
While global dealmaking has slowed due to economic headwinds and tariff-linked challenges, Middle Eastern sovereign wealth funds, domestic investors, and corporates are driving disciplined mid-market transactions.
These deals are easier to finance, faster to execute, and closely aligned with national priorities around localisation, digital sovereignty, and economic diversification.
Romil Radia, Deals Markets Leader at PwC Middle East, said: “The Middle East has continued to show resilience and ambition in the first half of 2025 with deal activity growth in contrast to the global decline in M&A volumes.
“The shift towards mid-market, high-impact deals shows a sharp focus on strategic assets that are easier to fund and align with national goals like localisation, economic diversification and building digital and green infrastructure.”
Technology, energy transition, and healthcare remain the strongest sectors anchoring regional M&A.
Landmark transactions include G42’s $2.2bn acquisition of a 40 per cent stake in Khazna Data Centres and Saudi Arabia’s $100bn Project Transcendence AI commitment, underlining the region’s ambition to lead in digital infrastructure and advanced technologies.
The report also highlights sovereign-led investment in green hydrogen, renewable energy, and sustainable transport as key to accelerating decarbonisation and long-term growth.
In parallel, consolidation in specialised healthcare is advancing localisation and improving access to world-class medical services across the region.
PwC notes that the Middle East’s M&A market should continue to show momentum, with domestic and intra-regional transactions expected to lead. Mid-sized deals are likely to provide the most practical path to growth in transformative sectors such as green energy, healthcare, and digital infrastructure.
Despite ongoing market pressures, the region remains well positioned to unlock new value, reshape industries, and strengthen its global influence in high-growth markets.
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