Merger and acquisition activity in the Middle East and North Africa (Mena) rose 26 per cent in 2025, driven by a surge in cross-border deals and heavy investment from sovereign wealth funds, according to an EY report released yesterday.
Total deal volume climbed to 884 transactions from 701 the previous year, with total deal value reaching $106.1 billion, a 15pc increase from $92.3bn in 2024. The GCC region dominated the landscape, accounting for $102.1bn of the total value.
The expansion was underpinned by sovereign wealth funds (SWFs), including Abu Dhabi’s ADIA and Mubadala, and Saudi Arabia’s Public Investment Fund (PIF). Cross-border transactions accounted for 54pc of deal volume and 61pc of total value.
“The Mena M&A market remained resilient in 2025,” said EY-Parthenon Mena Leader Brad Watson. “Governments continued to invest steadily, supported by robust economic growth, low public debt, and SWF backing.”
The UAE remained the primary hub for foreign direct investment, attracting 92pc of the region’s total inbound deal value.
Inbound deal value more than doubled to $25.4bn. Austria became the top investor by value due to chemicals sector acquisitions, while the US remained the most frequent target for outbound Mena investors by volume.
Outbound deals rose 29pc to $39.2bn, with government-related entities contributing 64pc of that value. Canada was the largest recipient of Mena capital by value, totalling $7.1bn.
Technology and diversified industrial products led deal activity, representing 38pc of total volume. Domestic M&A also grew, with value rising to $41.6bn from $24.4bn.
“The increase was in spite of regional political unrest and global trade policy uncertainties,” said EY-Parthenon Mena head of M&A Anil Menon. He added that AI-driven tech transformations are shifting fundamental asset values, leading to more “surgical” deal-making.
In the banking sector, Mena firms increased their footprint in India, highlighted by Emirates NBD’s $4.4bn deal with RBL Bank and IHC’s $1.1bn investment in Sammaan Capital.
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