UAE Leads Mena M&A Boom As Regional Dealmaking Surges 26% In 2025

(MENAFN- Khaleej Times) The UAE cemented its position as the Middle East and North Africa's (Mena) dominant mergers and acquisitions hub in 2025, spearheading a sharp rise in regional deal activity that saw Mena transactions climb to their highest level in years.

New data from EY's Mena M&A Insights 2025 report shows the region recorded 884 deals last year - up 26 per cent from 701 in 2024 - while deal value rose 15 per cent to $106.1 billion.

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The UAE was at the heart of this momentum. It not only attracted the region's largest transactions but also led domestic dealmaking, with 131 local deals - more than any other Mena country. It also accounted for nearly half of all inbound investment volume and an extraordinary 92 per cent of total inbound value, underscoring its magnetism for global investors.

According to EY, the wider Mena region's resurgence was fueled by enabling regulations, economic diversification efforts and what the firm described as“disciplined deal-making.” The Gulf Cooperation Council countries contributed 685 of the total deals, valued at $102.1 billion, reflecting their heavy weight in the regional economy.

“The Mena M&A market remained resilient in 2025, with deal volume as well as value rising significantly,” said Brad Watson, EY‐Parthenon Mena Leader.“Cross-border transactions were the main driver of this upward curve, highlighting the increasing appetite of companies for international expansion and diversification.”

Cross-border M&A continued to dominate the landscape, accounting for 54 per cent of the region's deal count and 61 per cent of value. Sovereign wealth funds again played a central role. Entities such as Abu Dhabi Investment Authority, Mubadala and Saudi Arabia's Public Investment Fund were among the most active, providing substantial capital for acquisitions both within and beyond the region.

The UAE also hosted the region's biggest deals of the year. The largest was Austrian energy group OMV's $16.5 billion acquisition, alongside subsidiary Borealis, of a 64 per cent stake in petrochemicals company Borouge. It was followed by L'IMAD Holding Company's $13.8 billion purchase of an 84.76 per cent stake in Modon Holding. The third-largest transaction saw Multiply Group acquire 42.2 per cent of 2PointZero for $7.7 billion. All three deals underline the UAE's depth in industrial, investment and technology-linked sectors.

Inbound dealmaking surged as investors bet on the region's evolving economic landscape. Inbound volume rose 37 per cent to 223 deals, while value more than doubled to $25.4 billion from $11.4 billion in 2024. Austria was the standout investor, responsible for 65 per cent of inbound value in just three chemical-sector transactions.

Outbound deals were similarly strong, climbing 29 per cent year on year to 256 transactions worth $39.2 billion. Government-related entities, particularly those from the UAE and Saudi Arabia, remained dominant and accounted for 64 per cent of outbound value. Canada attracted the most outbound investment by value, at $7.1 billion, while the United States remained the top destination by deal count.

Sectorally, technology and diversified industrial products continued to be the region's growth engines, contributing 38 per cent of overall deal volume. Real estate - including hospitality and leisure - and asset management accounted for more than half the disclosed value of domestic deals, signalling strong investor appetite for long-term assets.

“2025 was a remarkable show of Mena M&A market resilience,” said Anil Menon, EY‐Parthenon Mena Head of M&A and Equity Capital Markets.“The significant increase in M&A market activity was in spite of regional political unrest, significant global trade policy uncertainties and a once-in-a-generation tech transformation led by AI.”

Beyond the UAE, Saudi Arabia also saw significant activity, and together the two countries captured 59 per cent of total Mena investments. Egypt, Kuwait, Oman and Qatar all appeared among the top target and bidder nations, signalling broader regional diversification.

With its stable regulatory environment, expanding trade volumes and diversified economy, the UAE ended 2025 as Mena's most attractive M&A destination - both for foreign and domestic investors - underscoring its growing status as one of the world's emerging FDI powerhouses.

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