MENA M&A activity experienced remarkable growth in 2025, with the region recording 884 merger and acquisition deals totaling US$106.1 billion, according to the latest EY MENA M&A Insights 2025 report. This represents a substantial 26% increase in deal volume compared to 701 transactions in 2024, while total deal value rose 15% from the previous year’s US$92.3 billion.
The expansion was largely fueled by enabling regulations, ongoing economic diversification initiatives, and disciplined deal-making across the region. The GCC region dominated the landscape, accounting for 685 deals valued at US$102.1 billion, demonstrating the continued strength of Gulf economies in attracting investment.
Cross-Border Transactions Drive Regional Growth
Cross-border M&As emerged as the primary driver of MENA M&A activity, representing 54% of total deal volume and 61% of overall value. Inbound deal volume surged by 37% to 223 transactions, while deal value more than doubled to US$25.4 billion from US$11.4 billion in 2024. Austria emerged as the top investor country, contributing 65% of total inbound deal value through three major chemical sector transactions.
Outbound deals also demonstrated strong momentum, growing 29% year-on-year to 256 transactions with a combined value of US$39.2 billion. Government-related entities remained major contributors, accounting for 64% of overall outbound deal value. Canada attracted the highest outbound investment at US$7.1 billion, while the United States maintained its position as the preferred destination by deal volume.
“The MENA M&A market remained resilient in 2025, with deal volume as well as value rising significantly. Cross-border transactions were the main driver of this upward curve, highlighting the increasing appetite of companies for international expansion and diversification.”
Brad Watson, EY-Parthenon MENA Leader
Sovereign Wealth Funds Lead Investment Activity
Sovereign wealth funds including Abu Dhabi Investment Authority (ADIA), Mubadala from the UAE, and Saudi Arabia’s Public Investment Fund (PIF) continued to serve as primary catalysts for regional deal-making. These institutions leveraged robust economic growth, low public debt levels, and broader economic diversification mandates to drive strategic investments across multiple sectors.
The region’s three largest deals in 2025 were all concentrated in the UAE. Austrian oil giant OMV and its subsidiary Borealis led with a US$16.5 billion acquisition of a 64% stake in Borouge. This was followed by L’IMAD Holding Company’s US$13.8 billion purchase of an 84.76% stake in Modon Holding, and Multiply Group’s US$7.7 billion acquisition of a 42.2% stake in 2PointZero.
Domestic Market Shows Strong Performance
Domestic transactions played a crucial role in overall market momentum, contributing 46% of total deal volume with 405 transactions compared to 339 in 2024. The combined disclosed value of domestic deals increased significantly to US$41.6 billion from US$24.4 billion in the previous year.
Technology and consumer products sectors led domestic activity, together accounting for 38% of total domestic deal volume. In terms of value, real estate (including hospitality and leisure) and asset management sectors represented a combined 55% of the total, reflecting diversified investments across key domestic industries.
Banking Sector Drives International Expansion
The banking and capital markets sector accounted for 14% of MENA’s total outbound deal value in 2025. Regional banks and financial institutions actively invested in Indian banks and non-banking financial companies (NBFCs), supported by India’s strong economic growth, expanding credit demand, and rapidly growing digital user base. Notable transactions included Emirates NBD’s US$4.4 billion deal with RBL Bank, IHC’s US$1.1 billion investment in Sammaan Capital, and ADIA’s investment in IDFC FIRST Bank.
“2025 was a remarkable show of MENA M&A market resilience. The significant increase in M&A market activity was inspite of regional political unrest, significant global trade policy uncertainties and a once-in-a-generation tech transformation led by AI.”
Anil Menon, EY-Parthenon MENA Head of M&A and Equity Capital Markets Leader
