Today's Edition
KHALED AL KHAWALDEH (ABU DHABI)
The Middle East continues to be a hotbed for merger and acquisition activity in 2024 despite a global slowdown, according to a report by global consulting firm PWC. The report found the region recorded 475 deals in 2024.
The 2025 edition of the annual Transact Middle East report found that despite an overall 4% decrease in deal volumes, the Middle East stood out as a resilient market, largely weathering many of the conditions that resulted in a much larger 17% drop globally.
Much of this was driven by the region's active sovereign wealth funds which invested billions in 2024. The UAE's Mubadala emerged as the region's largest investor, deploying $29.2 billion across 52 deals in 2024. Saudi Arabia's PIF and Qatar's QIA are the other leading sovereign investors.
The single largest deal of the year was ADNOC's acquisition of urea and ammonia exporter, Fertiglobe. "The state oil firm is pursuing downstream acquisitions to secure global market share in hydrocarbons, balancing sustainability with economic growth," the report said.
"In 2024, the Middle East's M&A market demonstrated remarkable resilience and confidence, driving strategic investments in sectors such as AI, renewable energy and infrastructure," Romil Radia, Deals Markets Leader, PwC Middle East, said. "The region saw a notable rise in large-ticket deals, reflecting the bold ambitions of investors to accelerate regional diversification, bringing in new capabilities and strategic expertise to strengthen key industries and help develop the newer sectors."
The report highlighted the strong performance of the GCC's IPO market which thrived despite higher interest rates and heightened volatility. 2024 proved to be a record-breaking year with 53 listings raising a total of $13.2 billion-marking a 25% increase from the previous year. PWC said this was in part driven by increased privatisation efforts which is seeing the floatation of the big companies.
The UAE's firms were also highlighted for their strategic investments. This included Mubadala Capital's $8.7 billion acquisition of Toronto-based CI Financial, which PWC said was "a strategic push into the financial sector and an avenue to enhance its footprint in North America". The report said these exemplified the region's ambition and willingness to compete on the world stage.
"Sovereign wealth funds and Middle East corporates are actively expanding their global footprint, positioning themselves for an even bigger push in 2025," Radia said.
Moreover, despite a 7% drop in inbound foreign direct investment, PWC believes the region remained an attractive proposition. The report highlighted the Brookfield Business Partners' $2 billion acquisition of UAE-based payments-processing company Network International as a signal of continued confidence in key sectors.
