Middle East M&A sector gains momentum in first half of 2025
Despite ongoing global uncertainty and a slowdown in deals in many major markets, M&A activity in the Middle East gained significant momentum in the first half of 2025, according to new research from WTW.
The research from WTW, a global advisory, risk and insurance business, shows that 339 transactions valued over $100 million were completed worldwide in the first half of 2025, a slight increase from 332 during the same period last year.
The world’s largest deal market, North America, saw a decline in H1 2025 – deal volume fell to 160 from a peak of 292 in H1 2021. Europe and Asia Pacific meanwhile performed a lot stronger, with the latter boosted heavily by dealmaking in China.
In terms of returns on deals, the WTW found that transactions in telecommunications and materials closed in H1 enjoyed the highest return on investment (from the perspective of the acquirer), while mega deals (over $1 billion) proved the most value-accretive. However, cross-sector deals and those under $1 billion struggled to generate returns.
Commenting on the findings, Devvrat Gaggar, Middle East M&A Consulting Director at WTW, said: “Geopolitical uncertainty may be the new normal, and dealmakers are adapting by finding ways to generate long-term value. While North America is lagging, Europe, Asia, and increasingly the Middle East, are seeing renewed confidence and momentum in dealmaking.”
Middle East M&A activity surges
The Middle East enjoyed robust momentum in the first six months. Including Africa in its numbers, WTW said that total transaction value in the region rose by 35% year-on-year. The United Arab Emirates and Saudi Arabia were at the forefront of this growth, with many deals building on key government-backed pillars such as private sector growth, foreign investment, and sector liberalization – particularly in renewable energy, fintech, logistics, and advanced technologies.
Gabe Langerak, M&A Consulting leader at WTW for the Middle East & Africa, said: “The M&A landscape in early 2025 highlights the Middle East’s growing confidence and strategic intent. In the UAE, announced transaction values surged over 1,100% year-on-year in Q1, largely driven by high-profile deals such as G42 Holding’s $2.2 billion acquisition of Khazna Data Center, according to S&P Global.”
“This surge reflects a broader focus on digital infrastructure, financial services, and industrial consolidation in line with government priorities like Saudi Vision 2030 and the UAE’s economic diversification strategy.”
Looking ahead, Langerak and Gaggar said that continued deal flow is expected in infrastructure, financial services, and technology, as regional players prioritize scale, resilience, and localization in response to shifting global trade dynamics and rising geopolitical complexity.
WTW’s research was conducted in partnership with the M&A Research Centre at Bayes Business School, with deal data sourced from Refinitiv.
