Today's Edition
A. SREENIVASA REDDY (ABU DHABI)
The UAE played a central role in mergers and acquisitions (M&A) activity in the MENA region in 2025, hosting the three largest deals of the year and reinforcing its position as the most attractive hub for foreign investors, according to the EY MENA M&A Insights 2025 report.
The three largest transactions were the $16.5 billion acquisition of a 64% stake in Borouge by OMV and Borealis, the $13.8 billion acquisition of an 84.76% stake in Modon Holding by L’IMAD Holding Company, and the $7.7 billion acquisition of a 42.2% stake in 2PointZero by Multiply Group.
With 131 domestic deals, the UAE led local M&A activity in 2025, the EY report said. The country maintained its position as the preferred destination for foreign investors, supported by its favourable business environment, stable regulatory framework and ongoing economic reforms, the report added. Expanding trade volumes, resilient domestic demand, and sustained economic diversification efforts further strengthened its appeal, the report noted.
According to the report, the UAE accounted for 49% of total inbound deal volume and 92% of inbound deal value across MENA, underscoring its dominance as a regional FDI hub. The technology, professional firms and services, and diversified industrial products sectors recorded the highest number of transactions in the country during the year.
Sovereign wealth funds such as Abu Dhabi Investment Authority (ADIA) and Mubadala continued to play a catalytic role in dealmaking, alongside other regional investors. In the banking and capital markets segment, MENA investors directed 14% of total outbound deal value into the sector, including Emirates NBD’s $4.4 billion transaction with RBL Bank, IHC’s $1.1 billion investment in Sammaan Capital, and ADIA’s investment in IDFC FIRST Bank. All three investments were directed towards India’s banking and financial sector.
Across the wider MENA region, total M&A activity rose 26% year-on-year to 884 deals in 2025, up from 701 in 2024, while aggregate deal value increased 15% to $106.1 billion from $92.3 billion. The GCC accounted for 685 deals worth $102.1 billion. Cross-border transactions represented 54% of total volume and 61% of total value, while domestic transactions reached 405 deals valued at $41.6 billion, reflecting broad-based momentum across the region.
