Cross-border M&A 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 contributed US$21b in deal value across 54 transactions during H1 2025
According to the latest EY MENA M&A Insights report, the MENA region recorded 425 M&A deals in the first half of 2025, marking a 31% increase in deal volume and a 19% rise in total value to US$58.7b compared with the same period in 2024.
This performance builds on the steady flow of transactions seen in 2024, with strong momentum in early 2025 supported by regulatory reforms, policy shifts, and an improving macroeconomic outlook. While activity moderated slightly in Q2 due to evolving global trade policies and regional conflicts, overall market sentiment remained positive, with deal-making driven by diversification strategies and growth in high-potential sectors.
Brad Watson, MENA EY-Parthenon Leader, says: “The positive performance in the first half of 2025 underscores the strength, dynamism, and resilience of MENA’s M&A market. We are witnessing record-breaking cross-border activity as investors look beyond short-term volatility, actively pursuing scale, innovation, and new market opportunities. The United Arab Emirates (UAE), in particular, remains a magnet for global capital, supported by a stable regulatory framework and a focus on economic diversification, while regional partnerships with Europe, Asia, and North America are opening doors to fresh growth channels.”
In the MENA region, the UAE and the Kingdom of Saudi Arabia (KSA) received investments worth US$25.4b and US$2.5b, respectively, mainly in chemicals, technology, industrials and real estate – attracting a combined total of US$27.9b in the first half of this year.
Cross-border deals reach five-year high
Cross-border transactions accounted for 55% of total deal volume and 78% of total deal value in H1 2025, with 233 deals worth US$45.9b – the highest level in the past five years. Chemicals and technology together contributed 67% of cross-border deal value, led by major transactions such as Borealis AG and OMV AG’s acquisition of a 64% stake in Borouge plc for US$16.5b. This reflects a 40% increase in deal volume and 7% rise in deal value when compared to H1 2024.
Anil Menon, MENA EY-Parthenon Head of M&A and Equity Capital Markets Leader, says: “MENA’s dealmaking continues to thrive in 2025, reflecting investor confidence in the region’s long-term fundamentals. Stable oil prices, ongoing infrastructure development, and a strategic focus on technology, chemicals, and industrials are creating solid foundations for sustained activity. As the year progresses, we expect intensifying competition for high-quality assets, particularly those that align with national transformation agendas and offer strategic value beyond financial returns.”
Domestic and inbound activity remain strong
During the first six months of the year, domestic transactions accounted for 45% of total deal volume and 22% of total value, with 192 deals worth US$12.8b – a 22% increase in volume and a 94% rise in value year-on-year. Diversified industrial products and technology led domestic deal value, representing over half of the total. The largest domestic deal was Group 42’s US$2.2b acquisition of a 40% stake in Khazna Data Center.
Inbound M&A activity rose 53% to 107 deals, with total value increasing from US$6.4b to US$21.5b in H1 2025. The UAE was the leading destination, capturing 50% of inbound deal volume and 98% of inbound value. Austria emerged as the top investor, contributing 77% of inbound deal value, driven by a landmark chemicals sector transaction.
Outbound flows and sovereign-backed investments fuel growth
Outbound activity reached 126 deals valued at US$24.4b in H1 2025, up 30% in volume from the same period in 2024. The UAE and KSA together accounted for 87% of outbound value, supported by government-related entities playing a major role. Notable deals included ADNOC and OMV AG’s acquisition of Canada’s Nova Chemicals and Saudi Aramco’s US$3.5b acquisition of Primax in South America.
Government-related entities and sovereign wealth funds contributed US$21b in deal value across 54 transactions, with leading players such as ADIA, PIF, and Mubadala actively targeting chemicals, technology, and industrial sectors in line with long-term diversification goals.