• The UAE and Saudi Arabia led deal activity by value in the first half of the year, recording deals worth $27.9 billion.
• Cross-border mergers and acquisitions reached a five-year high, accounting for 55% of total deal volume and 78% of total deal value.
• Government-related entities and sovereign wealth funds participated in 54 deals worth US$21 billion during the first half of 2025.

The EY MENA M&A report reveals that the region recorded 425 deals with a total value of USD 58.7 billion during the first half of 2025, representing a 31% increase in the number of deals and a 19% increase in their value compared to the same period last year.

This performance builds on the steady flow of deals witnessed in 2024, with strong momentum in early 2025, supported by regulatory reforms, policy shifts, and an improved macroeconomic outlook. While activity slowed slightly in the second quarter of the year due to evolving global trade policies and regional conditions, overall market attractiveness remained positive, with diversification and growth strategies in high-potential sectors boosting dealmaking opportunities.

Commenting on the report, Brad Watson, MENA Leader, EY-Parthenon, said: “The positive performance in the first half of 2025 underscores the strength, dynamism, and resilience of the MENA M&A market. We are witnessing record cross-border activity, as investors look beyond short-term volatility and actively pursue expansion, innovation, and new market opportunities. The UAE, in particular, remains an attractive destination for global capital, thanks to its stable regulatory framework and focus on economic diversification, while regional partnerships with Europe, Asia, and North America are opening up new avenues for economic growth.”

In the Middle East and North Africa (MENA) region, the UAE and Saudi Arabia maintained their positions as the top destinations for deals in the first half of 2025, recording deals worth $25.4 billion and $2.5 billion, respectively. These deals were primarily concentrated in the chemicals, industrials, and real estate sectors, with the two countries leading deal activity in the first half of the year, recording deals worth $27.9 billion.

Cross-border deals hit five-year high

Cross-border deals accounted for 55% of total deal volume and 78% of total deal value in the first half of 2025, recording 233 deals worth USD 45.9 billion, the highest level in the past five years. The chemicals and technology sectors together contributed 67% of these deals, led by major deals such as Borealis AG and OMV AG’s USD 16.5 billion acquisition of a 64% stake in Borouge PLC. This reflects a 40% increase in deal volume and 7% increase in deal value compared to the first half of 2024.

Anil Menon, MENA M&A and Capital Markets Leader, EY-Parthenon, said: “The MENA deal landscape will continue to flourish in 2025, reflecting investor confidence in the region’s strong long-term fundamentals. Stable oil prices, continued infrastructure development, and a strategic focus on technology, chemicals, and industrials are important factors that lay a solid foundation for sustained deal activity. For the remainder of the year, we expect competition to intensify for high-quality assets, particularly those that align with national transformation agendas and deliver strategic value beyond financial returns.”

Domestic and inbound deal activity remains strong.

During the first six months of the year, local deals accounted for 45% of the total deal volume and 22% of the total deal value, with 192 deals worth USD 12.8 billion, a 22% increase in volume and 94% increase in value compared to the same period last year. The diversified industrial products and technology sector led the value of local deals, accounting for more than half of the total deal value recorded. The largest local deal was Group 42's acquisition of a 40% stake in Khazna Data Center for USD 2.2 billion.

Inbound M&A activity increased by 53% to 107 deals, with the total value increasing from USD 6.4 billion to USD 21.5 billion in the first half of 2025. The UAE led this activity, accounting for 50% of inbound deal volume and 98% of deal value. Austria emerged as the largest investor, contributing 77% of inbound deal value, driven by a significant deal in the chemicals sector.

Outbound deal flow and government-backed investments fuel deal activity

Outbound deals reached 126, valued at USD 24.4 billion, in the first half of 2025, a 30% increase in volume compared to the same period in 2024. The UAE and Saudi Arabia together accounted for 87% of outbound deals, with government-related entities (GREs) supporting the deal. Notable deals include ADNOC and OMV AG 's acquisition of Canadian chemicals company Nova and Saudi Aramco's USD 3.5 billion acquisition of Primax in South America.

Government-related entities and sovereign wealth funds participated in 54 deals totaling $21 billion, with major players such as the Abu Dhabi Investment Authority, the Public Investment Fund, and Mubadala actively targeting investments in the chemical, technology, and industrial sectors, in line with these entities' long-term diversification objectives.

Ernst & Young | Building the future with confidence

Ernst & Young works to build a better working world by creating new value for clients, employees, society and the planet, and by building trust in financial markets.

Ernst & Young teams help clients build the future with confidence, delivering solutions to today's and tomorrow's most pressing issues, powered by data, artificial intelligence, and advanced technology.

Our teams operate across a full range of services in assurance, advisory, tax, strategy, and transactions. They provide services in more than 150 countries and territories, leveraging deep sector insights, a global, multidisciplinary network, and diverse partners.

We all work to build the future with confidence.

EY refers to the global organization, and may also refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. Information about how EY collects and uses personal data, and the rights individuals have under data protection legislation, are available at ey.com/privacy. The member firms of Ernst & Young Global Limited do not engage in the practice of law where prohibited by local law. For further information about our organization, please visit ey.com.

EY began operating in the Middle East and North Africa (MENA) region in 1923. For over 100 years, we have grown to more than 8,500 people across 26 offices and 15 countries, united by shared values and an unwavering commitment to the highest standards of quality. We continue to develop outstanding business leaders who deliver exceptional services to our clients and contribute to the communities in which we operate. We are proud of our achievements over the past 90 years, reaffirming EY's position as the largest and most established professional services organization in the region .

About EY-Parthenon

The firm delivers real value to its clients through proven solutions in practice, not just on paper, through a unique blend of transformational strategy, transactional services, and corporate finance.

Drawing on EY's comprehensive suite of services, the firm reshapes strategic consulting to fit today's increasingly complex world. The firm partners with CEOs, boards of directors, private equity firms, and government agencies at every step of the way, leveraging its deep sector expertise, innovative AI technologies, and insightful investment mindset to enable its clients to build their futures with confidence.

EY-Parthenon is a brand through which a number of EY member firms worldwide provide strategy consulting services.

-I finish-

#Corporate Data

Disclaimer for the content of press releases
The content of these press releases is provided by a third-party provider. We do not assume any responsibility for, nor do we have any control over, such content. This content is provided on an 'as is' and 'as available' basis and has not been edited in any way. Neither we nor our affiliates are responsible for the accuracy, endorsement, or completeness of the opinions, views, information, or materials contained in this content.
Press releases are provided for informational purposes only; the content does not imply legal, investment, or tax advice or any opinion regarding the suitability, value, or profitability of any particular portfolio or investment strategy. We, or our affiliates, will not be liable for any errors or inaccuracies in the content, or for any actions you take based on such content. You expressly agree and acknowledge that you bear full responsibility for the use of the information contained in these press releases.
To the extent permitted by applicable law, Refinitiv, its parent, subsidiaries, affiliates, and their respective shareholders, directors, officers, employees, agents, advertisers, content providers, and licensors (collectively, the “Refinitiv Parties”) will not be liable (either jointly or severally) to you for any direct, indirect, consequential, special, incidental, punitive, or exemplary damages; This includes, but is not limited to: lost profits, lost savings or revenue, whether caused by negligence, tort, contract or other liability theories, even if the Refinitiv Parties have been advised of the possibility of any such damages and losses or had actually anticipated their occurrence.