Dubai, UAE — The Middle East and North Africa (MENA) region has kicked off 2025 with a record-breaking first quarter in mergers and acquisitions (M&A), as deal value soared to $46 billion—a 66% increase year-on-year (YoY).
According to Saudi M&A Consulting, this robust growth reflects rising investor confidence, favorable regulatory reforms, and strong macroeconomic fundamentals across the region.
The number of deals also rose significantly, with 225 transactions recorded in Q1 2025, up 31 percent from the same period in 2024. This marks a five-year high for the MENA region in both deal volume and value, positioning it as an increasingly influential global investment destination.
Cross-Border M&A Dominates Deal Landscape
Cross-border M&A accounted for 81 percent of total deal value and 52 percent of the total number of transactions, with 117 deals executed, the highest in the last five years.
Saudi Arabia and the United Arab Emirates (UAE) were key players in this trend, spearheading outbound investments aimed at global diversification. Analysts expect this momentum to continue, with Middle Eastern companies targeting acquisitions in Europe and North America to expand their international reach.
Domestic M&A Booms, Tech Sector Leads
Domestic deal activity also flourished, reaching $8.7 billion—a fivefold increase from Q1 2024. The technology sector dominated the domestic landscape, contributing 37 percent of the value and 27 percent of total deal volume.
A standout transaction was Abu Dhabi-based G42’s $2.2 billion acquisition of a 40 percent stake in Khazna Data Centers, signaling growing investor interest in cloud infrastructure and data-driven services.
Outbound Deals Total $19.7 billion, Saudi and UAE Take Lead
Outbound M&A reached $19.7 billion in Q1, representing 43 percent of the region’s total deal value. Saudi Arabia and the UAE drove this wave, accounting for 77 percent of outbound transactions and an overwhelming 94 percent of deal value.
The largest outbound transaction was the joint $6.3 billion acquisition of Canadian firm Nova Chemicals by Adnoc and Austria’s OMV. This further cemented the Gulf region’s expanding global investment footprint, especially in strategic sectors like energy and chemicals.
Inbound M&A Rises Sharply, UAE Attracts Nearly All Capital
Inbound M&A activity surged to $17.6 billion—an almost sevenfold increase YoY. The UAE captured 53 percent of all inbound transactions and 99 percent of the total value, buoyed by the landmark $60 billion merger between Adnoc and OMV. Austria emerged as the leading foreign investor.
GCC Banking Sector Braces for Consolidation
The report also points to increasing consolidation pressures within the GCC banking sector. Factors such as low oil prices and global demand softness are driving smaller banks toward potential mergers. Fitch Ratings warns that institutions with thin capital buffers could become acquisition targets.
