UAE Claims Nearly Half of MENA’s Mid-Year M&A Value

The United Arab Emirates registered some US$25.4 billion in mergers and acquisitions through the first six months of 2025, making up approximately 43 per cent of all M&A transactions across the Middle East and North Africa—which totalled US$58.7 billion during the period, according to data from EY’s latest MENA M&A Insights report.

MENA deal-making demonstrated robust momentum in the first half of 2025, with 425 transactions reflecting a 31 per cent increase in volume and a 19 per cent rise in overall value compared with the same period in 2024, as EY’s analysis shows.

Cross-border activity surged, accounting for 55 per cent of all deals by number and 78 per cent by value—marking the highest cross-border level in the past five years. Key sectors driving these overseas transactions included chemicals and technology, which together represented two-thirds of cross-border deal value. Among the most significant was the US$16.5 billion deal in which Borealis AG and OMV AG acquired a 64 per cent stake in Borouge plc.

Domestic deal-making remained energetic too. Homegrown transactions constituted 45 per cent of all deals by volume and 22 per cent of the total value, amounting to 192 deals worth US$12.8 billion—an impressive 94 per cent year-on-year rise in value. The technology and diversified industrial products sectors were prominent in this category. A standout deal was AI and cloud services firm Group 42’s acquisition of a 40 per cent stake in Khazna Data Centres for US$2.2 billion.

EY’s MENA EY-Parthenon Leader, Brad Watson, emphasised that the mid-year results underline how resilient and dynamic the region’s M&A market is. He pointed to sustained appeal for investors, underpinned by stable oil prices, infrastructure expansion and a strategic emphasis on growth industries such as technology, chemicals, and industry. I n particular, he noted that the UAE continues to attract significant global capital, thanks to its strong regulatory environment and push for economic diversification, alongside growing collaborative ties with Europe, Asia, and North America.

When compared with mid-2024 performance, the jump is clear. In the first half of last year, the MENA region recorded 321 deals valued at US$49.2 billion. That represented only a modest 1 per cent increase in volume and 12 per cent growth in value over the prior year. Deal values in the UAE and the Kingdom of Saudi Arabia accounted for US$9.8 billion out of that total.

Looking at the broader picture, 2024 closed with 701 MENA M&A deals worth US$92.3 billion, reflecting a 3 per cent rise in deal volume and 7 per cent gain in value compared with 2023. Cross-border transactions were the primary engine, making up 52 per cent of deal volume and 74 per cent of value.

The UAE’s growing prominence in M&A stems from both deliberate policy reforms and strategic positioning. Domestic investors, notably sovereign wealth funds and government-related entities such as ADIA and Mubadala, have been highly active across both home-market and international transactions. At the same time, global investors have responded favourably to the region’s economic diversification efforts, regulatory clarity, and infrastructural thrust.

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