M&A in MENA region grows by 15% to $106 billion as cross-border deals surge
The value of merger and acquisition activity across the Middle East and North Africa climbed to $106 billion in 2025, a 15% increase from the previous year, as dealmaking accelerated despite global economic uncertainty. That is according to research from EY-Parthenon.
In the twelve months of 2025, both deal volume and value in the MENA region saw a significant uptick, largely fueled by enabling regulations, ongoing economic diversification initiatives and disciplined deal-making. Total deal activity grew from 701 in 2024 to 884 in 2025, a rise of 26%.
The GCC region accounted for the majority of deals at 685, valued at $102 billion, while cross-border transactions dominated the region, making up 54% of the volume and 61% of the value.
“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,” said Brad Watson, MENA Leader at EY-Parthenon.
“Governments continued to invest steadily, supported by robust economic growth, low public debt, the backing of sovereign wealth funds, and broader economic diversification initiatives. Rising foreign direct investment added further momentum.”
The headline deals
The region’s three largest deals of 2025 were concentrated in the UAE, led by the acquisition of a 64% stake in Borouge by the Austrian oil giant OMV and its subsidiary Borealis for $16.5 billion. This was followed by the acquisition of an 84.76% stake in Modon Holding by L’IMAD Holding Company, owned by the Abu Dhabi Government, for $13.8 billion..
The third-largest deal was the acquisition of a 42.2% stake in 2PointZero by Multiply Group, an Abu Dhabi-based investment holding company, for $7.7 billion.
Cross-border deals
Inbound deal volume increased by 37% to 223 deals, while deal value surged to $25.4 billion, more than double compared to last year’s $11.4 billion, reflecting sustained confidence in the region’s evolving economic landscape. Meanwhile, outbound deals grew in volume by 29% year on year to 256 deals and reached a combined value of $39.2 billion, representing 37% of the total.
North America, Europe and Asia together accounted for 44% and 39% of cross-border deals by volume and value respectively.
UAE and KSA the main markets
As target nations, the UAE and KSA together captured 59% of MENA investments, mainly in technology and professional firms and services. In addition, they contributed 66% of the region’s total deal activity as investors, with a focus on technology and diversified industrial products.
With 131 deals, the UAE led domestic activity as the most attractive hub for investors due to its favorable business environment, stable regulations and ongoing economic reforms. The country also remained the preferred destination for foreign investors, supported by expanding trade volumes, resilient domestic demand and sustained economic diversification efforts.
On an overall basis, Egypt and Kuwait made it among the region’s top five target countries as well as bidder countries last year, while Oman and Qatar also made an appearance on the lists.
Reflecting on the 2025 deal year, Anil Menon, partner at EY-Parthenon said: “2025 was a remarkable show of M&A market resilience in MENA. 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 artificial intelligence.”
