Egypt’s M&A market experiences strong rebound amid reforms and investment

Research from PwC shows that Egypt’s M&A sector experienced a strong rebound in 2024, with the number of deals closed 24% higher than the year previous. Maged EzzEldeen and Maye Ayoub from PwC walk through 2024’s main highlights and the outlook for 2025.

After a series of macroeconomic challenges in 2023, 2024 saw a significant increase in the number of financial transactions, from 97 deals to 120, marking a 24% year-on-year growth – the highest in the Middle East.

Although this level is lower than the peak levels seen in 2022, the current surge in mergers & acquisitions (M&A) can be partly attributed to Egypt’s ongoing economic reforms and efforts to attract foreign direct investment, particularly in infrastructure, fintech, and consumer markets.

The country recorded 77 corporate transactions in 2024, highlighting a strong private sector involvement in Egypt’s M&A market, signaling business confidence, economic diversification and growth opportunities.

The largest M&A deals in 2024 included the $800 million acquisition of Legacy Hotels by Arab Co for Hotels and Tourist Investments, the $157 million investor deal in MNT Halan (a fintech and digital lending firm), and the acquisition of a 90% stake in Orascom Financial Holding for $49 million by an Egyptian private equity firm.

Privatisation accelerated

As Egypt navigates macroeconomic stability amid regional tensions and declining Suez Canal trade, its privatisation efforts are gradually reducing government control and boosting private sector participation. In December 2024, the IMF approved a $1.2 billion disbursement under Egypt’s $8 billion programme, on the condition of accelerating privatisation.

As part of this push, the Central Bank of Egypt began the sale of a 30% stake in state-owned United Bank through an initial public offering (IPO) on the local exchange, as part of its plans to attract foreign investment through the sale of public assets.

Tax incentives

Egypt is intensifying efforts to attract private equity and venture capital by introducing tax incentives and economic reforms aimed at accelerating investment. The government rolled out tax incentives for investors in high-growth sectors in the second half of last year, particularly in technology, renewable energy, and manufacturing.

Furthermore, the April 2024 amendments to Egypt’s Anti-Trust Law (Number 3 of 2005) has reshaped Egypt’s M&A landscape by transitioning from a post-merger notification system to a pre-merger control regime. This change has introduced greater clarity and predictability for investors, streamlined approvals, set clear thresholds for notification and ensured compliance with global best practices.

These reforms are expected to create a more investor-friendly environment and sustain Egypt’s upward trajectory in M&A deal volumes.

Foreign investment and Sovereign Wealth Funds

Egypt’s plan to transfer state-owned enterprises to its $12 billion sovereign wealth fund, aims to maximise asset returns, encourage private sector partnerships, and attract foreign investment. At PwC, we also see sovereign wealth funds of the Gulf Cooperation Council (GCC), such as Saudi Arabia’s Public Investment Fund, Qatar Investment Authority, and the UAE’s Abu Dhabi Developmental Holding Company (ADQ) increasing investments in Egypt’s industrial zones, tourism and oil & gas sectors.

In February 2024, under the $35 billion land deal the ADQ-led consortium secured the rights to develop 130 million square meters along Egypt’s north coast at Ras El Hekma, while $11 billion of Emirati deposits held in Egypt’s central bank would be released, enabling investments in key projects across the country to support economic growth and development.

Meanwhile in September 2024, PIF announced a $5 billion investment into Egypt to boost bilateral relations, while in November 2024, Qatar Energy acquired 23% of Chevron in an offshore exploration block located in Egyptian waters, demonstrating Qatar’s commitment to Egypt’s oil & gas sector.

Looking ahead

Egypt’s recovery in deal volume in 2024 underscores renewed investor confidence, supported by economic reforms, privatisation and tax incentives. With the UAE’s Emirates NBD initiating the plans to acquire a 45% stake of Banque du Caire for $1 billion, it also highlights the growing momentum in Egypt’s financial sector. With private-sector-led M&A transactions rising, key investment opportunities lie in financial services, infrastructure, tourism and digital transformation.

As Egypt continues to enhance its investment climate, 2025 is set to be another pivotal year for dealmaking and economic expansion.

About the authors: Maged EzzEldeen is Egypt Country Senior Partner and Deals Leader at PwC, where Maye Ayoub is a Partner in the Deals practice.