MENA sees increased M&A activity in 2024 with 701 deals totaling $92.3bn

Doha, Qatar: According to the latest EY MENA M&A Insights 2024 report, the MENA region recorded a 3% rise in merger and acquisition (M&A) activity with 701 deals in 2024, compared to 679 deals in 2023. The total deal value in 2024 reached $92.3bn, indicating a 7% increase from the previous year. The GCC region accounted for the majority of dealswith580, amounting to $90bn.

This expansion was largely fueled by substantial reforms in the capital markets, strategic policy changes and enhanced efforts to attract foreign investments. Cross-border deals were the major driver of M&A deals in the MENA region, accounting for 52%of the volume and 74% of the value.

Brad Watson, EY MENA Strategy and Transactions Leader, says: “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. With companies actively seeking opportunities to grow and diversify their operations, cross-border deals were the major driver in terms of volume and value. The top five subsectors were insurance, asset management, real estate and hospitality, power and utilities, and technology – indicating a real interest in the innovative solutions that the MENA region can provide. In addition, there is a focus on strengthening regional relationships with Asian and European countries, enabled MENA countries to gain access to larger and growing markets.”

Anil Menon, EY MENA Head of M&A and Equity Capital Markets Leader, says: “In 2024, technology remained the most attractive sector for investors, accounting for 23% of total inbound and domestic deal volume. We’re living through a productivity renaissance fueled by technology and AI, which will manifest in capital allocation and M&A.”

“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.” 

Sovereign wealth funds (SWFs), such as the Abu Dhabi Investment Authority (ADIA) and Mubadala from the United Arab Emirates (UAE), as well as the Public Investment Fund (PIF) from the Kingdom of Saudi Arabia (KSA), continued to lead the deal activity in the region.

Outbound deals contributed the largest share of M&A transaction value in 2024 accounting for61% of the total consolidated deal value, with 199transactions amounting to $56.6bn.The MENA region continues to be one of the most attractive destinations for foreign direct investors.

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