Today's Edition
MAYS IBRAHIM (ABU DHABI)
The UAE led the MENA region’s merger and acquisition (M&A) activity in the first nine months of 2025 with 171 deals valued at $29 billion, according to the EY MENA M&A Insights 9M 2025 report.
The region as a whole saw a 23% rise in M&A activity, recording 649 deals with a total value of $69.1 billion.
“The positive deal flow was driven by sustained investor interest and improving economic environment across MENA,” EY said.
The GCC region accounted for the majority of the deals, contributing 500 transactions valued at $65.9 billion, according to the report.
“The UAE remained the preferred destination for investors due to its favourable business environment.”
Cross-border deals continued to fuel growth in the region, contributing 54% of the deal volume and 76% of the total value.
The EY report said that the first nine months of 2025 recorded the region’s highest cross-border activity over the past five years.
“The rise in cross-border deal activity showcases the growing appetite of companies for international expansion and portfolio diversification,” Brad Watson, EY MENA Strategy and Transactions Leader, said in a statement.
“The shift toward mid-size transactions reflects a strategic focus on high-growth, innovation-driven sectors that support long-term economic development in line with the region’s economic diversification goals.”
The UAE recorded the region’s largest deal of the year with the announced acquisition of a 64% stake in Borouge by the Austrian giant OMV and its subsidiary Borealis for $16.5b.
Abu Dhabi National Oil Company’s (ADNOC) followed with its $6.3b acquisition of a 46.94% stake in the Canadian company NOVA Chemicals, while Saudi Aramco purchased Peruvian fuel distributor Primax S.A for $3.5 billion.
Outbound deals accounted for the largest share of the M&A transaction value, with 189 deals amounting to $28.5 billion.
Canada attracted the highest outbound deal value from MENA investors at $7.1b, while the United Kingdom (UK) led in deal volume.
Inbound transactions increased 25% in volume and 34% in value, reaching 160 deals valued at $23.8 billion.
Austria emerged as the top inbound investor, accounting for 69% of total deals value, driven largely by the Borouge acquisition.
Chemicals and technology were the leading sectors by deal value, contributing $23.9 billion and $12.2 billion, respectively.
Sovereign wealth funds (SWFs) remained key drivers of M&A activity in MENA, executing 22 deals of which 17 were outbound, primarily in technology, consumer products as well as professional firms and services sectors.
The UAE and Saudi Arabia were the dominant hubs for SWF activity, and together they accounted for 85% of the total outbound deal value in the region.
MENA-based government-related entities (GREs) focused their outbound investments on energy and utilities infrastructure, technology, logistics and industrial production.
The report revealed that 39 of the 189 outbound deals were GRE-backed, representing 66% of their total value. UAE-based GREs executed 22 deals and Saudi-based GREs completed 11 deals.
“The UAE maintained strong foreign direct investment (FDI) momentum, driven by its stable economy and investor-friendly policies. We expect UAE & KSA to remain one of the most attractive deal markets globally,” Anil Menon, EY MENA Head of M&A and Equity Capital Markets Leader, said.
Domestic M&As contributed 46% of the total deal volume in the first nine months of 2025 with 300 deals valued at $16.8 billion.
Technology and consumer products industries in particular drew increased investor interest, contributing 40% of the total domestic deal volume and 32% of the value.
