MENA Region Records 225 M&A Deals Worth $46Bn In Q1

Doha: According to the latest EY MENA M&A Insights 2024report, the MENA region witnessed 225 M&A deals in Q1 2025, up from the 172 deals recorded in Q1 2024, reflecting a 31% increase in deal volume when compared year-on-year. Total deal value rose by 66% to US$46bn in Q1 2025, when compared to $27.6bn in Q1 2024.

Cross-border deals were the primary driver of M&A activity in the MENA region, contributing 52% of total deal volume with 117 deals and 81% of total deal value at $37.3bn.

The first quarter of 2025 recorded the highest cross-border deal activity both in volume and value when compared to the same period in the past five years, as companies increasingly pursued growth and diversification beyond domestic markets.

Brad Watson, MENA EY-Parthenon Leader, says:“In 2024 we saw a steady flow of M&A deals and the MENA region continues to exhibit a robust influx of M&A transactions in 2025. This is supported by regulatory reforms, policy shifts, and a favorable macroeconomic outlook, including easing interest rates and improved investor sentiment.”

“This growth is also reflected in the steady increase of domestic M&A activity, whichcontributed48% of total deal volume in Q1 2025. The rise in domestic M&A transactions aligns with the IMF projection that MENA GDP will grow by 3.6% this year and is further supported by the strong global M&A momentum.

Companies are realigning their strategies to better accommodate the need for diversification, digital transformation, and the integration of emerging technologies.”

In the MENA region, the United Arab Emirates (UAE) remained the top target country with 63 deals totaling $20.3bn in Q1 2025. Kuwait ranked second in terms of deal proceeds, reaching $2.3bn, driven by two major transactions in the Diversified Industrial Products and Power & Utilities sectors.

During the first three months of 2025, Canada attracted the highest outbound deal value from MENA investors at US$6.4b, while the USA remained the preferred target destination in terms of deal volume.

Sovereign Wealth Funds (SWFs) like ADIA, PIF, and Mubadala, along with other government-related entities (GREs), remained key M&A drivers in Q1 2025, aligning with national economic strategies and diversification goals.

In the first quarter of 2025, M&A activity in the MENA region witnessed a 20% increase in deal volume while deal value rose significantly reaching US$8.7b as compared to $1.69bn recorded in Q1 2024.

The technology sector led domestic M&A activity in MENA in Q1 2025, contributing 37% of total domestic deal value and 27% of total domestic deal volume.

The largest domestic deal during the first quarter of the year was a $2.2bn acquisition where Group 42, an Abu Dhabi based AI and cloud computing firm, agreed to acquire a 40% stake in Khazna Data Centres, a digital infrastructure provider.

Anil Menon (pictured), MENA EY-Parthenon Head of M&A and Equity Capital Markets Leader, says:“The MENA deal markets remained resilient despite lack of clarity on two fronts: the impact of monetary policy on cost ofcapital and the ongoing tariff and trade discussions. The MENA deal book for the remainder of 2025 is promising and we can expect to see increased activity in consumer, technology, and energy sectors. In addition, with AI expected to drive material shifts in fundamental value, we can expect to see significant capital allocation in technology.”

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