Key Highlights
⦁ M&A transactions across the MENA region reached $106.1 billion in 2025, reflecting 15% annual growth despite global economic volatility.
⦁ Cross-border deals dominated activity, contributing 54% of total deal volume and 61% of overall transaction value.
⦁ GCC countries remained the driving force, supported by sovereign wealth funds, regulatory maturity, and economic diversification programs.
The Middle East and North Africa experienced strong merger and acquisition activity during 2025, which resulted in total transactions reaching a value of $106.1 billion. The figure represented a 15 percent increase compared to the previous year, which proved that the region could maintain its deal-making activity during periods of global economic instability and geopolitical conflicts. Industry activity experienced a major boost when 884 transactions occurred throughout the year, which represented a 26 percent increase from the previous year.
The increase in activity demonstrated that investors maintained their confidence because they received clear regulatory information and they had access to capital and new market opportunities across different industries. The Gulf Cooperation Council maintained its position as the most powerful force in regional dealmaking by executing 685 transactions that reached a total value of $102.1 billion.
The Gulf Cooperation Council markets achieved strong results because the region successfully implemented long-term plans to decrease its dependence on oil while simultaneously increasing its attractiveness to international investors.
Mergers and acquisitions were underpinned by state-led investment vehicles. The ongoing deal activity during the year received support from four factors which included strong economic growth,manageable public debt levels and active sovereign wealth fund participation and increased foreign direct investment.
M&A growth received support from two main factors which included beneficial regulatory frameworks and proper transaction management, alongside continuous economic development work. The factors helped keep investor confidence intact which resulted in both domestic and international parties taking part in the regional deal ecosystem.
Major Transactions
Sovereign wealth funds continued to act as key catalysts for large-scale transactions, which enabled companies to make strategic investments in various sectors. The largest three deals of the region for 2025 all took place in the UAE. The largest transaction involved Austrian energy group OMV and its subsidiary Borealis acquiring a 64 percent stake in Borouge for $16.5 billion.
Abu Dhabi government-owned L’IMAD Holding Co. acquired an 84.76 percent stake in Modon Holding for $13.8 billion. The third-largest deal saw Multiply Group purchase a 42.2 percent stake in 2PointZero for $7.7 billion.
Cross-Border Trends
The upsurge of M&A commotion tons and tons was a noteworthy 37 percent. It clocked 223 transactions in volume. The value of inbound deals more than doubled to $25.4 billion because international investors continued to trust the region’s economic prospects throughout the year.
Austria emerged as the leading inbound investor by value which accounted for 65 percent of inbound capital mainly through chemical-sector transactions. Outbound activity showed growth through a 29 percent increase in deal volumes which resulted in 256 transactions that reached a total value of $39.2 billion.
The government-related entities provided almost two-thirds of the total outbound deal value. Canada received the most outbound investment value which reached $7.1 billion while the United States continued to be the main target for deal volume.
The technology and diversified industrial products sectors generated 38 percent of total deal volume while banking and capital markets sectors produced 14 percent of outbound deal value.
The financial sector in India attracted more investment because investors showed confidence in the country’s economic growth and digital expansion and increasing credit demand.
Domestic Activity
Domestic transactions accounted for 46 percent of total deal volume in 2025, with 405 deals completed compared with 339 in the previous year. Domestic deals increased their disclosed value from $24.4 billion to $41.6 billion.
The technology and consumer sectors showed the highest domestic deal activity while value-based transactions dominated the real estate, hospitality, leisure, and asset management sectors.
The political tensions and trade uncertainty together with AI-driven disruption made the dealmaking process difficult but investors still achieved their goals through targeted acquisitions which helped them establish long-term competitive advantages.
