Today's Edition
MAYS IBRAHIM (ABU DHABI)
International investors are flocking to the UAE at unprecedented levels, drawn by its strategic location, dynamic business environment, economic diversification, and ambition to become a global hub for innovation, market analysis shows.
Justin Smith, Managing Director at Ansarada M&A Platform, says these factors, combined with the rapid adoption of AI-driven technology, are creating new investment opportunities across technology, energy, and financial services sectors.
“The region’s strategic position as a bridge between East and West, combined with robust sovereign wealth fund activity and growing private equity presence, has created a mature M&A ecosystem,” he told Aletihad in a recent interview.
He added that cross-border transactions are becoming more complex, with larger deal sizes, longer due diligence, and intricate structures as investors navigate regulatory differences across jurisdictions.
Data from Ansarada’s Q2 2025 market analysis shows the UAE recorded 24 deals totalling $1.9 billion during the quarter, with particularly strong activity in energy, natural resources, financial services, and technology.
Smith added that demand is rising for AI-powered tools that can streamline cross-border transactions by managing compliance, translation, redaction, and bidder evaluation.
“The UAE’s emergence as a global AI hub could drive record levels of cross-border investment and deal activity, creating opportunities that require sophisticated technology infrastructure to manage effectively.”
Market indicators suggest cross-border deals are expected to rise further in 2026, according to Smith.
He expects AI integration to become a baseline requirement in dealmaking, allowing investors to process vast datasets in real time, identify risks early, and improve decision-making speed and accuracy.
“AI and technology integration will become table stakes rather than differentiators in deals,” said Smith.
“Having the right AI-powered data room will determine how dealmakers successfully navigate complex transactions, particularly as the UAE continues its historic economic transformation and positions itself as a global hub for business and innovation.”
Smith also noted that the energy transition is expected to accelerate significantly in the coming year, driving mega-deals in renewable energy, green hydrogen, and carbon capture technologies, with sovereign wealth funds leading consolidation in these sectors.
The Middle East’s mergers and acquisitions market is defying a global slowdown, with PwC’s TransAct Middle East Mid-Year Update showing volumes rose 19% year-on-year to 271 deals in the first half of 2025.
The UAE remained the region’s top hub, recording 95 deals – more than a third of regional activity – despite a slight dip from 101 in the same period last year.
