Merger and acquisition (M&A) activity across the Middle East and North Africa (MENA) region surged 23 per cent in the first nine months of 2025, reaching $69.1bn across 649 deals, according to the latest EY MENA M&A Insights 9M 2025 report.
The GCC continued to dominate regional transactions with 500 deals valued at $65.9bn, supported by robust investor sentiment, a strengthening economic outlook, and a surge in cross-border investment.
Cross-border transactions remained the key growth engine, accounting for 54 per cent of volume and 76 per cent of total deal value — the highest level in five years.
MENA M&A activity
Brad Watson, EY MENA Strategy and Transactions Leader, said: “The MENA M&A market continues to demonstrate resilience this year. The rise in cross-border deal activity showcases the growing appetite of companies for international expansion and portfolio diversification.
“Meanwhile, the shift toward mid-size transactions reflects a strategic focus on high-growth, innovation-driven sectors that support long-term economic development in line with the region’s economic diversification goals.”
The UAE recorded the region’s largest M&A of the year to date — OMV and Borealis’s acquisition of a 64 per cent stake in Borouge for $16.5bn.
This was followed by Abu Dhabi National Oil Company (ADNOC) acquiring a 46.94 per cent stake in NOVA Chemicals for $6.3bn — one of the world’s largest petrochemical transactions.
The third-largest deal was Saudi Aramco’s $3.5bn purchase of Peruvian fuel distributor Primax S.A, underscoring Saudi Arabia’s growing international investment focus.
Inbound and outbound trends
Outbound deals accounted for the largest share of M&A value, totalling 189 transactions worth $28.5bn.
- Canada attracted the highest outbound value at $7.1bn
- The United Kingdom led in outbound deal volume
Inbound investment also strengthened, with 160 inbound deals worth $23.8bn — up 25 per cent in volume and 34 per cent in value year-on-year. Austria emerged as the top investor, contributing 69 per cent of inbound value, primarily due to the Borouge acquisition.
UAE is investors’ preferred destination
The UAE retained its position as the region’s top investment destination, recording 171 inbound deals worth $29bn. Both the UAE and Saudi Arabia ranked among the most active bidders, together accounting for 85 per cent of total outbound deal value.
Anil Menon, EY MENA Head of M&A and Equity Capital Markets Leader, said: “MENA’s improving economic outlook, expanding digital economy and strategic policy support attracted higher foreign investor interest in the first nine months of this year.
“The UAE maintained strong foreign direct investment momentum, driven by its stable economy and investor-friendly policies. We expect UAE & KSA to remain one of the most attractive deal markets globally.”
Sectors driving growth
The chemicals ($23.9bn) and technology ($12.2bn) sectors led regional M&A value, supported by increasing investment in innovation and industrial transformation.
Domestic M&A also rose, contributing 46 per cent of total volume across 300 deals worth $16.8bn, primarily in technology, healthcare, and financial services.
Sovereign wealth funds (SWFs) continued to play an active role in regional M&A, executing 22 transactions during the first nine months of 2025, including 17 outbound deals.
Investments focused on technology, consumer products, and professional services, with the UAE and Saudi Arabia maintaining their dominance as sovereign investment hubs.
MENA-based government-related entities (GREs) also drove outbound activity, completing 39 deals worth 66 per cent of GRE transaction value — including 22 UAE-based and 11 Saudi-based deals — highlighting the influence of sovereign-backed investors in shaping regional diversification strategies.
Regional participation
Beyond the GCC, Egypt and Kuwait ranked among the region’s top five target and bidder countries, while Oman and Qatar also featured prominently on both lists, reflecting a broadening M&A footprint across MENA.
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