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Merger and acquisition (M&A) activity in the Middle East and North Africa (Mena) region rose 3 per cent in 2024, with total deal value increasing 7pc, according to a report by EY.
The region saw 701 deals worth $92.3 billion, up from 679 deals valued at $86.3bn in 2023, EY’s Mena M&A Insights 2024 report showed. The GCC accounted for the bulk of the activity, with 580 deals totalling $90bn.
The increase was attributed to capital market reforms, policy changes, and efforts to attract foreign investment, with cross-border deals driving growth, accounting for 52pc of volume and 74pc of value.
“In 2024, the Mena region witnessed positive developments in the M&A space with a y-o-y increase in activity as well as overall deal value,” said EY Mena strategy and transactions leader Brad Watson.
Sovereign wealth funds (SWFs) from the UAE and Saudi Arabia, including ADIA, Mubadala, and PIF, remained key players.
Notable deals included the $12.4bn acquisition of Truist Insurance by Clayton Dubilier an Rice, Stone Point Capital, and Mubadala, and Saudi Aramco’s $8.9bn purchase of a 22.5pc stake in Rabigh Refining and Petrochemical Company.
Outbound deals accounted for 61pc of total deal value, with 199 transactions worth $56.6bn, . Inbound deals rose 18pc in volume and 42pc in value, with 163 transactions worth $11.4bn.
Technology and consumer products led deal volume, each up 10pc year-on-year. The US was the largest acquiring country outside the region.
The UAE remained the top destination for investors, with 96 deals worth $7.6bn, driven by its focus on AI, cybersecurity, and digital transformation. Saudi Arabia was also a key destination.
The US was the top target for Mena investors, with 41 deals worth $19.9bn. Domestic M&A accounted for 48pc of deal volume, with 339 deals worth $24.4bn.
“In 2024, technology remained the most attractive sector for investors, accounting for 23pc of total inbound and domestic deal volume,” said EY Mena head of M&A and equity capital markets leader Anil Menon.
“The deal book (across sectors) for the fiscal year 2025 remains extremely strong and we expect to see continued portfolio momentum and interest in Mena-based assets,” he added.
avinash@gdnmedia.bh
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