Middle East M&A activity shows stability in 2024 despite global uncertainty

The Middle East’s mergers and acquisitions (M&A) market remained stable in 2024, with 823 recorded transactions amounting to approximately USD 63.96 billion, according to the CMS Middle East M&A Report 2025. While this represents a significant level of activity, total deal value continued to stay below pre-pandemic highs, reflecting a shift toward cautious investment strategies amid global economic pressures.

Sector Performance and Regional Hotspots

The Technology, Media, and Telecommunications (TMT) sector led deal activity with 227 transactions, emphasizing the region’s growing focus on digital transformation and innovation. A notable deal in this space was Microsoft’s USD 1.5 billion investment in G42, positioning the UAE as a key player in artificial intelligence development.

The Industrials & Chemicals sector followed closely with 110 deals, demonstrating steady investor confidence, particularly in Turkey, which accounted for 52 transactions in this segment. Major transactions included the Saudi Arabian Mining Company’s (Ma’aden) USD 3.5 billion investment in mining and aluminum assets.

The Financial Services sector saw 70 transactions, with significant activity in the UAE, Bahrain, and Egypt. A highlight was Al Ansari Financial Services’ acquisition of BFC Group Holdings, further consolidating its market presence in the Gulf.

M&A by Country: Saudi Arabia and UAE Lead the Market

Saudi Arabia led the region in total deal value, reaching USD 15.19 billion across 62 transactions. The largest deal in the region was Saudi Aramco’s USD 8.91 billion acquisition of a 22.5% stake in Rabigh Refining & Petrochemical Co.

The UAE was the most active market by deal count, with 130 transactions totaling USD 11.68 billion. Its M&A activity was fueled by investments in TMT, Business Services, and Industrials & Chemicals. The OCI Methanol Marketing LLC acquisition by Canada’s Methanex Corp for USD 2.02 billion was among the largest UAE deals.

Turkey also saw significant M&A growth, recording 260 deals worth USD 7.59 billion, the highest volume in over five years. The USD 1.13 billion acquisition of D-Market Elektronik Hizmetler Ticaret AS by Kazakhstan’s Kaspi.kz JSC was a standout transaction.

Sovereign Wealth Funds Drive M&A Growth

Middle Eastern Sovereign Wealth Funds (SWFs) played a critical role in shaping the investment landscape. With half of the world’s top ten SWFs based in the region, their investments spanned traditional industries like infrastructure, real estate, and energy, as well as emerging sectors such as artificial intelligence and fintech. Countries such as Saudi Arabia and the UAE are using their SWFs to advance national economic goals and promote diversification away from oil dependency.

Graham Conlon, Partner, Head of Corporate – Middle East, CMS UAE: “Their different priorities and allocation targets mean there’s an inherently wide range in investment strategies for SWFs in the region. But one thing that’s remained a common feature is an appetite for traditional direct and alternative investments – infrastructure projects, large scale real estate and telecoms.”

Challenges and Outlook for 2025

Despite strong deal-making activity, global economic uncertainty and geopolitical risks continue to weigh on the region’s M&A landscape. In Egypt, for example, deal activity dropped to 29 transactions worth USD 1.28 billion, a sharp decline from 71 deals in 2022, largely due to political instability and a decline in TMT sector investments.

Looking ahead to 2025, lower financing costs and sustained high rental returns in real estate, along with continued government-led investments in technology, energy, and infrastructure, are expected to drive further M&A activity. The expansion of venture capital funding and startup ecosystems, particularly in Saudi Arabia, the UAE, and Turkey, also suggests continued opportunities for investors in the region.

As Middle Eastern economies push for economic diversification and digital transformation, the M&A market is poised for a new wave of investment opportunities across multiple sectors.

Source: CMS Middle East M&A Report 2025