MENA Region Record 425 M&A Deals in H1 2025

The MENA region recorded 425 mergers and acquisition (M&A) deals in the first half of 2025, marking a 31% increase in deal volume and a 19% rise in total value to $58.7 billion compared with the same period in 2024, according to the latest EY MENA M&A Insights report.

This performance was built on the steady flow of transactions seen in 2024, with strong momentum in early 2025 supported by regulatory reforms, policy shifts, and an improving macroeconomic outlook.

While activity moderated slightly in Q2 due to evolving global trade policies and regional conflicts, overall market sentiment remained positive, with deal-making driven by diversification strategies and growth in high-potential sectors, the report said.

In the MENA region, the UAE and Saudi Arabia received investments worth $25.4 billion and $2.5 billion, respectively, mainly in chemicals, technology, industrials and real estate – attracting a combined total of $27.9 billion in the first half of this year.

Brad Watson, MENA EY-Parthenon Leader, said that the positive performance in the first half of 2025 underscores the strength, dynamism, and resilience of MENA’s M&A market.

“We are witnessing record-breaking cross-border activity as investors look beyond short-term volatility, actively pursuing scale, innovation, and new market opportunities. The UAE, in particular, 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,” he said.

Cross-border Deals

The 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 AG and OMV AG’s acquisition of a 64% stake in Borouge plc for $16.5 billion, reflecting a 40% increase in deal volume and 7% rise in deal value when compared to H1 2024.

Anil Menon, MENA EY-Parthenon Head of M&A and Equity Capital Markets Leader, said that MENA’s deal making continued to thrive in 2025, reflecting investor confidence in the region’s long-term fundamentals.

He added: “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.”

Strong Domestic and Inbound Activity

During the first six months of the year, 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 y-o-y.

Diversified industrial products and technology led domestic deal value, representing over half of the total. The largest domestic deal was Group 42’s US$2.2b acquisition of a 40% stake in Khazna Data Center.

Inbound M&A activity rose 53% to 107 deals, with total value increasing from $6.4 billion to $21.5 billion in H1 2025. The UAE was the leading destination, capturing 50% of inbound deal volume and 98% of inbound value. Austria emerged as the top investor, contributing 77% of inbound deal value, driven by a landmark chemicals sector transaction.

Outbound Activity

Outbound activity reached 126 deals valued at $24.4 billion in H1 2025, up 30% in volume from the same period in 2024. The UAE and Saudi Arabia together accounted for 87% of outbound value, supported by government-related entities (GREs) playing a major role.

Notable deals included ADNOC and OMV AG’s acquisition of Canada’s Nova Chemicals and Saudi Aramco’s $3.5 billion acquisition of Primax in South America, the report said.

GREs and sovereign wealth funds 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 long-term diversification goals, the report said.