RIYADH: Mergers and acquisitions in the Middle East and North Africa region reached $69.1 billion in the first nine months of this year through 649 deals, marking a 23 percent year-on-year rise, a new analysis showed.
In its latest report, professional services firm EY said that Gulf Cooperation Council countries accounted for the majority of activity, with 500 deals valued at $65.9 billion.
The sharp uptick signals robust investor appetite despite macroeconomic uncertainty and builds on a solid 2024 performance, when MENA M&A deals rose 7 percent to $92.3 billion.
In February, US-based investment bank Morgan Stanley described the momentum as a “structural upswing” in deal volume and value, driven by regulatory reforms and strategic policy shifts across the region.
Commenting on the latest report, Strategy and Transactions Leader at EY MENA Brad Watson said: “The MENA M&A market continues to demonstrate resilience this year. The rise in cross-border deal activity showcases the growing appetite of companies for international expansion and portfolio diversification.”
He added: “Meanwhile, the shift toward mid-size transactions reflects a strategic focus on high-growth, innovation-driven sectors that support long-term economic development in line with the region’s economic diversification goals.”
Cross-border transactions remained the dominant growth engine for the region, contributing 54 percent of total volume and 76 percent of overall value. The first nine months of this year also recorded the highest cross-border activity compared to the same period in the past five years.
According to EY, the UAE reported the region’s largest M&A of the year to date with the announced acquisition of a 64 percent stake in Borouge by Austrian energy group OMV and its subsidiary Borealis for $16.5 billion.
This was followed by Abu Dhabi National Oil Co.’s acquisition of a 46.94 percent stake in Canada-based NOVA Chemicals for $6.3 billion, one of the largest transactions in the global petrochemical sector.
The third-largest deal was Saudi Aramco’s acquisition of the Peruvian fuel distributor Primax S.A. for $3.5 billion.
Outbound deals
Outbound deals dominated the regional landscape, contributing the largest share of transaction value in the first nine months of 2025 with 189 deals amounting to $28.5 billion.
Canada attracted the highest outbound deal value from MENA investors at $7.1 billion, while the UK was the preferred target country by volume.
The UAE and were among the top MENA bidders, together accounting for 85 percent of total outbound deal value.
During the same period, the region saw 160 inbound deals worth $23.8 billion, marking a 25 percent rise in volume and a 34 percent surge in value compared with the same period last year.
Austria emerged as the top investor nation, accounting for 69 percent of inbound deal value — driven by the Borouge acquisition by OMV and Borealis.
“MENA’s improving economic outlook, expanding digital economy and strategic policy support attracted higher foreign investor interest in the first nine months of this year,” said Anil Menon, EY MENA head of M&A and Equity Capital Markets Leader.
He added: “The UAE maintained strong foreign direct investment momentum, driven by its stable economy and investor-friendly policies. We expect the UAE & to remain one of the most attractive deal markets globally.”
Sectoral outlook
According to EY, chemicals and technology were the leading contributors to total deal value at $23.9 billion and $12.2 billion, respectively.
Government-related entities in MENA focused their outbound investments on energy and utilities infrastructure, technology, logistics, and industrial production, accounting for 39 out of 189 outbound deals — representing 66 percent of total value. UAE-based GREs executed 22 deals, while Saudi-based entities completed 11.
Domestic M&As accounted for 46 percent of total deal volume in the first nine months of 2025, with 300 transactions worth $16.8 billion.
The technology and consumer products sectors continued to draw strong investor interest, fueled by digital transformation and evolving consumer behavior across the region. Both sectors together contributed 40 percent of total domestic deal volume and 32 percent of its value.
EY added that sovereign wealth funds remained key M&A drivers, executing 22 deals during the first nine months of 2025, of which 17 were outbound.
These investments, led by funds in the UAE and , were concentrated in technology, consumer products, and professional services sectors.
