MENA’s PE Activity Decline by 38% in H1-2025

Private equity (PE) activity in the Middle East and North Africa (MENA) declined for the third straight H1. In MENA dropped 38% y-o-y by volume, but only 11% by value, highlighting a clear pivot toward bigger, high-conviction deals. As many as 29 transactions valued $2.9 billion were recorded in the first half of the year.

According to 1H MENA PE report published by MAGNiTT, a go-to platform for verified Venture Capital & Private Equity data, larger deals dominated the landscape, accounting for 72% of transaction volume in H1 2025, up from just 23% a year earlier, as investors concentrated capital in scale-ready assets.

The UAE led in disclosed deal value, while Saudi Arabia topped the list by transaction count. Together accounting for 86% of all PE deals. Sustainability took centre stage, accounting for 57% of disclosed funding, driven by two large deals aligned with energy and climate goals.

“International syndication is rising, with most large deals featuring a mix of local and global investors pursuing operational influence and exit-readiness,” the report said.

General Partners (GPs) are adopting a more risk-averse stance, pivoting toward fewer, higher conviction transactions on scale-ready platforms with strong fundamentals, the report said and added that PE transactions in the region skewed larger, with the two biggest size brackets hitting five-year highs in the first six months of the year.

Range of Transactions

Transactions in the $500 million to 1 billion range accounted for 29% of total volume, and 42% of total value, while those over $1 billion comprised 14% of the count and 36% of the overall value. Smaller buyouts (under $50 million) fell to a record low of 14%, while the $100-$500 million bracket nearly doubled y-o-y to 29% of total PE activity by count, and 18% by value.

The slowdown reflects a strategic recalibration in the region’s PE market rather than a retreat. “The MENA region’s PE recalibration is being led by scale-ready SMEs and high-conviction strategies, not withdrawal. The growing dominance of over $100 million transactions signals a maturing landscape ready to absorb larger pools of capital,” Magnitt Research Department Manager Farah El Nahlawi said in a statement (pdf) accompanying the report.

According to a report by Enterprise Egypt, growth transactions involve minority investments in established but expanding companies, providing capital to fuel new markets, products, or acquisitions without taking control. Investors rely primarily on the company’s organic growth for returns, with exits typically via IPOs or secondary sales.

Buyouts, by contrast, involve acquiring a majority or full stake, often using leverage to gain operational control, drive restructuring or efficiency improvements, and create value through active ownership. While growth transactions are about accelerating expansion, buyouts are about taking charge to unlock value and position the business for strategic sales or mergers.

Saudi Arabia and the UAE captured 86% of all PE activity in the region with the Kingdom completing 13 transactions up 8% y-o-y, accounting for the lion’s share (45%) of total activity in the region, and the UAE recorded 12 transactions (41%) over the same period, down 25% y-o-y, with more capital flowing in from international buyers. Egypt (down 89%) and Jordan (down 50%) each saw one transaction in first six months of 2025.