Middle East M&A activity remained resilient in first quarter amid uncertainty
M&A activity in the Middle East saw a modest decline in the first quarter of 2026, although the slowdown was less pronounced than expected, highlighting the sector’s resilience amid ongoing geopolitical uncertainty.
The latest mid-year report from Ansarada, a provider of data room software for dealmakers, shows that 196 deals were announced in Q1 2026, down from 207 transactions during the same period in 2025. In value terms, total deal value fell from $31.3 billion in Q1 2025 to $23.3 billion in the first quarter of this year.
The UAE accounted for 33 deals valued at $2.2 billion during the quarter, down from 52 deals in Q1 2025, representing a 37% decline in deal volume. However, the report found that this reflects a recalibration of capital deployment strategies rather than a weakening of investor confidence.
“The conflict may be reshaping deal timelines, but it’s not reshaping the region’s thirst for ongoing M&A activity. We remain confident in the long-term health of deal activity in the UAE, which we view as an enduring and critical hub for M&A in the region and beyond,” said Justin Smith, Managing Director at Ansarada.
Across the Gulf, deal activity remained relatively stable. Saudi Arabia recorded 24 announced deals, up slightly from 23 in Q1 2025. Oman recorded seven deals valued at $535 million, while Qatar recorded four transactions and Kuwait recorded three deals worth $24 million.
From a sector perspective, technology emerged as the leading sector by volume with 68 deals worth $7.3 billion, driven by continued investment into AI, fintech and enterprise technology. Transportation led by value with $8.2 billion across nine transactions, highlighting sustained investment into strategic infrastructure.
Energy and natural resources contributed $2.2 billion across 18 deals, while healthcare recorded $1.9 billion across 19 transactions as governments continue expanding medical and life sciences capabilities. Industrials generated $1.6 billion across 23 deals, driven by national ambitions to strengthen domestic manufacturing and industrial capacity.
The report found that across the region, Gulf deal flow continues to be underpinned by sovereign-backed investment strategies, national transformation agendas and long-term infrastructure priorities.
Looking ahead, Smith said that the GCC’s proven ability to weather economic uncertainty leaves the region well placed for the months ahead. “The fundamental drivers of M&A remain strong, but dealmakers must adapt to a new normal characterised by greater volatility and uncertainty.”
