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Middle East and North Africa (MENA) deal activity saw strong momentum in the first half of 2025, with both deal volume and deal value up significantly on the same period last year. That is according to research from EY-Parthenon.
The first six months of the year saw a total of 425 mergers & acquisitions come to a successful close, a 31% increase on H1 in 2024. Deal value rose by 19% to $58.7 billion.
EY-Parthenon said that the market’s growth was fueled by all types of dealmakers – strategics, financial sponsors and international players – and was driven by regulatory reforms, policy shifts, an improving macroeconomic outlook, government diversification strategies and growth in high-potential sectors.
Brad Watson, EY-Parthenon Leader for MENA, said: “The positive performance in the first half of 2025 underscores the strength, dynamism, and resilience of MENA’s M&A market.”
The UAE has dominated the M&A scene in the first half of the year, with transactions accounting for nearly half of the total for the entire MENA region. During the six-month period, the UAE saw $25.4 billion in M&A deals, representing around 43% of the total $58.7 billion in transactions.
“The United Arab Emirates remains a magnet for global capital, supported by a stable regulatory framework and a focus on economic diversification, while regional partnerships with Europe, Asia, and North America are opening doors to fresh growth channels,” said Watson.
Another dominant player, Saudi Arabia recorded $2.5 billion worth of deals, accounting for approximately 4.3% of the total.
Cross-border deals reach five-year high
Cross-border transactions accounted for 55% of total deal volume and 78% of total deal value in H1 2025, with 233 deals worth $45.9 billion – the highest level in the past five years.
Chemicals and technology together contributed 67% of cross-border deal value, led by major transactions such as Borealis and OMV’s acquisition of a 64% stake in Borouge for $16.5 billion. This reflects a 40% increase in deal volume and 7% rise in deal value when compared to H1 2024.
“We are witnessing record-breaking cross-border activity as investors look beyond short-term volatility, actively pursuing scale, innovation, and new market opportunities,” noted Watson.
Domestic activity
Domestically, the largest was Group 42’s $2.2 billion acquisition of a 40% stake in Khazna Data Center. Overall, domestic transactions accounted for 45% of total deal volume and 22% of total value, with 192 deals worth $12.8 billion – a 22% increase in volume and a 94% rise in value year-on-year.
Government-related entities and sovereign wealth funds remained an important player in the M&A landscape, contributed $21 billion in deal value across 54 transactions, with leading players such as ADIA, PIF, and Mubadala actively targeting chemicals, technology, and industrial sectors in line with diversification goals.
From the region to global
In terms of international deals closed by MENA players, outbound activity reached 126 deals in H1 of 2025, valued at $24.4 billion, up 30% in volume from the same period in 2024. The UAE and KSA together accounted for 87% of outbound value, supported by government-related entities playing a major role.
Notable deals included ADNOC and OMV’s acquisition of Canada’s Nova Chemicals and Saudi Aramco’s $3.5 billion acquisition of Primax in South America.
Looking ahead, Anil Menon, MENA Head of M&A and Equity Capital Markets at EY-Parthenon, said: “MENA’s dealmaking continues to thrive in 2025, reflecting investor confidence in the region’s long-term fundamentals. Stable oil prices, ongoing infrastructure development, and a strategic focus on technology, chemicals, and industrials are creating solid foundations for sustained activity.”
“As the year progresses, we expect intensifying competition for high-quality assets, particularly those that align with national transformation agendas and offer strategic value beyond financial returns.”
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