Region sees 701 deals worth $92.3bn in 2024

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Merger and acquisition (M&A) activity in the MENA region surged in 2024, recording 701 deals valued at $92.3bn, according to the latest EY MENA M&A Insights 2024 report. The figures mark a 3 per cent rise in deal volume and a 7 per cent increase in total value compared to 2023.

The Gulf Cooperation Council (GCC) accounted for 580 deals worth $90bn, underscoring the region’s dominant role in M&A transactions. The increase was fueled by capital market reforms, strategic policy shifts, and enhanced efforts to attract foreign investment.

Cross-border deals drove M&A activity, representing 52 per cent of transaction volume and 74 per cent of total deal value.

Outbound transactions accounted for the largest share, with 199 deals totalling $56.6bn — 61 per cent of the region’s total deal value.

Inbound deals also rose sharply, with 163 transactions worth $11.4bn, reflecting an 18 per cent rise in volume and a 42 per cent increase in value year-on-year.

Key Sectors and Players

“The MENA region witnessed strong M&A momentum in 2024, with deal activity and values rising year-on-year. Cross-border transactions were a major driver, with companies looking to expand and diversify,” said Brad Watson, EY MENA Strategy and Transactions leader.

“The top five subsectors — insurance, asset management, real estate and hospitality, power and utilities, and technology — highlight the region’s appeal as a hub for innovation and investment,” he added.

Sovereign wealth funds (SWFs) remained key players, with the Abu Dhabi Investment Authority (ADIA), Mubadala Investment Company, and Saudi Arabia’s Public Investment Fund (PIF) leading major transactions.

The UAE recorded the region’s largest deal, with Clayton Dubilier & Rice, Stone Point Capital, and Mubadala acquiring Truist Insurance for $12.4bn.

Other high-profile transactions included Saudi Aramco’s $8.9bn purchase of a 22.5 per cent stake in Rabigh Refining and Petrochemical Company from Sumitomo Chemical and the $8.3bn acquisition of a 60 per cent stake in China’s Zhuhai Wanda Commercial Management Group by PAG, Mubadala, and ADIA.

UAE and Saudi Arabia lead M&A landscape

The UAE emerged as the preferred investment destination, securing 96 inbound deals worth $7.6bn, which accounted for 67 per cent of total inbound deal value.

The technology sector led the charge, with 35 deals reflecting the country’s focus on AI, cybersecurity, and digital transformation.

Microsoft’s $1.5bn investment in Abu Dhabi’s G42 was a key transaction, highlighting growing US-UAE business ties. The US-UAE Business Council has been instrumental in fostering cross-border innovation and collaboration.

Saudi Arabia also remained a prime investment hub, contributing to a combined 318 deals with the UAE, valued at $29.6bn. The US was the largest foreign acquirer in MENA, executing 48 transactions worth $4.6bn. Meanwhile, MENA investors favoured US assets, with 41 deals totalling $19.9bn.

Morocco emerged among the top five bidder and target markets, while Qatar, Bahrain, Egypt, and Kuwait also saw significant M&A activity.

Domestic M&A and energy sector growth

Domestic deals accounted for 48 per cent of the region’s total M&A activity, with 339 transactions valued at $24.4bn.

Technology and consumer products led domestic M&A, contributing 35 per cent of total deal volume.

The oil and gas sector maintained its momentum, ranking as the top industry by disclosed deal value at $9bn, accounting for 37 per cent of total domestic deal value. Saudi Aramco’s $8.9bn acquisition of Rabigh Refining and Petrochemical Company was the year’s largest energy transaction.

MENA’s M&A outlook remains strong

“In 2024, technology remained the most attractive sector for investors, comprising 23 per cent of total inbound and domestic deal volume,” said Anil Menon, EY MENA head of M&A and Equity Capital Markets leader. “We’re amid a productivity renaissance fuelled by AI and digital transformation, which will drive capital allocation and M&A.”

“The deal book for FY2025 remains robust across sectors, and we expect continued portfolio momentum and growing interest in MENA-based assets.”

With ongoing economic diversification efforts and a strong push for technological advancements, the MENA region remains a hotspot for global investors, positioning itself as a key player in the evolving global M&A landscape.

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