Recession fears, geopolitical flashpoints, and tariff concerns kept boardrooms on edge for a while. Now, they appear to have put aside those worries for good, leading to a sharp surge in mergers and acquisitions (M&As) in the Middle East and North Africa (MENA), buoyed by a deregulatory wave, sovereign capital, high-growth sectors, and a tax-friendly environment.

Observers say the current momentum is unprecedented. Optimism isn’t driven by exits—they’re still emerging—but by a foundation for sustainable liquidity. 

“For the first time, we are seeing real momentum in the market, not just isolated wins,” says Noor Sweid, Founder and Managing Partner at Global Ventures. 

She adds: “Founders are scaling faster, acquirers are acting earlier, and the entire ecosystem is starting to move in rhythm…M&A is no longer episodic; it’s becoming the rhythm of the ecosystem itself.” 

According to data from Magnitt, the region recorded 40 M&A transactions in the first nine months of 2025, a 100% year-on-year increase and surpassing the total number of deals closed in 2024. 

“The rise was particularly strong in Q1 2025, which saw 22 M&A deals, the highest single-quarter total ever recorded in MENA. Although activity moderated in Q2 and Q3, the overall nine-month performance signals renewed deal-making momentum,” says Philip Bahoshy, CEO and founder of Magnitt.

Deals in the first nine months of 2025 outpaced both Southeast Asia (17) and Africa (23), underscoring the region’s status as one of the most active emerging markets for strategic exits. 

CONVERGING FORCES

The M&A boom is being powered by an alignment of forces. Elevated oil prices are pumping fresh fiscal surpluses into Saudi Arabia, the UAE, and Qatar, replenishing sovereign wealth funds. Armed with renewed capital, these funds are aggressively backing domestic transformation plays and outbound bets spanning energy transition, gaming, logistics, and AI infrastructure.

Simultaneously, global financial conditions are gradually easing – interest rate normalization and capital market recoveries have narrowed valuation gaps and restored greater pricing discipline among sellers, says Georges Attieh, Principal at GDA Legal. 

“While geopolitical risk and cross-border regulatory complexity remain material constraints, the data suggest that relative to global peers, the MENA M&A engine is firmly engaged, powered increasingly by domestic policy imperatives and sovereign capital rather than external cycles alone,” adds Attieh.

According to Tony Hallside, CEO of STP Partners, apart from sovereign funds’ firepower, easing rates and bankable cross-border flows underpin the boom. In the first half of 2025, he adds, the deal value stood at about $58.7 billion.

“It’s capital, policy, and digital transformation,” says Victor Sunyer, Partner at Nuwa Capital, driving the renewed optimism. 

He adds that the region’s deal momentum is being powered by deep sovereign capital, a widening pool of global buyers, and reform-driven asset pipelines. Gulf wealth funds continue to anchor activity while global PE and growth investors are now writing large checks into regional leaders, exemplified by Permira and Blackstone’s $525 million investment in Property Finder. National transformation agendas, from Saudi Vision 2030 to the UAE’s diversification push, are unlocking privatizations, PPPs, and sector liberalization, creating a steady flow of assets across infrastructure, energy, healthcare, logistics, and education. 

At the same time, a maturing tech sector is producing scalable, acquisition-ready players like Tabby and Tamara, setting the stage for future M&A, IPOs, and strategic partnerships.

BIG-TICKET TRANSACTIONS

If Uber’s acquisition of Careem for $3.1 billion was one of the most significant startup exits in the region, it has now been succeeded by several other substantial transactions. 

If 2025 has proved anything, it’s that big deals are back. In just nine months, MENA delivered six mega rounds—Tabby ($160 million), Hala ($157 million), Ninja ($254 million), Airalo ($220 million), Cadena ($183 million), and Xpanceo ($250 million).

“They were not just large raises. They signaled that MENA startups can now compete for global capital on an equal footing,” says Sweid. “On the M&A side, value remains concentrated, with five transactions accounting for nearly 90% of disclosed deal size, but what’s exciting is the diversity of activity beneath those outliers.” 

Fintech, logistics, and enterprise software continue to lead, and acquirers are getting smarter, prioritizing technology, data, and integration of capabilities over pure market share, she adds.

In total, mega deals accounted for 41% of all funding, up from 20% in the first nine months of 2024, marking the fifth consecutive quarter of sustained megadeal activity, according to Bahoshy. “This represents  over 325% year-on-year growth in the value of large transactions.”

The average mega deal size is approximately $204 million.

In the infrastructure and traditional sectors, the key drivers were sovereign wealth funds and large corporations becoming more aggressive in their growth strategies. 

Some notable examples include Abu Dhabi National Oil Company and Austria’s OMV, which merged their polyolefin businesses to create the Borouge Group International, a chemicals powerhouse with an enterprise value of $60 billion. The Abu Dhabi state oil firm also received the EU’s conditional greenlight for its $17 billion bid for German chemicals company Covestro. 

UAE’s renewable energy company Masdar has fully acquired Greece’s Terna Energy, following its acquisition of a majority stake last year, marking a further step in its international expansion strategy.

“These deals show how Gulf capital is using M&A not just to buy local assets, but to build global platforms in chemicals, renewables, financial services, telecoms, and gaming, effectively exporting MENA’s balance sheet into global opportunities,” says Sunyer.

BRIDGING CAPABILITY GAPS

M&As are increasingly about capability gaps: not just users, but the speed and talent that fuel growth.

“Many of our portfolio companies are using acquisitions to supercharge their growth, while others are being acquired by regional and international players that recognize their technological edge,” says Sweid.

Abhi, a neobank, is a perfect example, adds Sweid. “It became Pakistan’s first fintech to acquire a bank, instantly expanding its credit infrastructure and positioning itself to scale across multiple verticals. That kind of move shows how founders in emerging markets are starting to use M&A as an offensive strategy, not a defensive one.”

Halliside notes that financial services and tech deals are accelerating as incumbents snap up digital capabilities. In the chemicals industry, consolidation, especially in petrochemicals integration, is all about scale, feedstock advantage, and downstream technology. “Cross-border activity to import know-how is up, with sovereigns catalyzing sector upgrades,” he adds.

While M&A activity remains largely strategic and capability-driven, Sweid adds that global corporations and regional champions are acquiring high-performing MENA startups to accelerate innovation. 

“Fintech (eight exits) and enterprise software (five exits) led in 2025, reflecting how acquirers are seeking differentiated technology. The result is a far more balanced ecosystem, one where founders can both buy to build and be bought to scale.”

Mergers like Saudi Arabia-based B2B marketplace Sary joining Bangladesh’s ShopUp to form the SILQ Group, and Salla App acquiring Salla Ads, signal a clear trend, Bahoshy says: “Startups are being actively acquired to broaden products, strengthen platforms, and accelerate market reach.”

Seventy percent of all M&A deals are clustered in the UAE and Egypt. In Egypt, 10 of 13 deals were led by local buyers—Fawry alone acquired three startups to bolster its integrated fintech platform. “This reflects a push to deepen vertical strengths in payments and digital commerce,” adds Bahoshy.

In the UAE, nearly half the deals, seven of 15, involved international corporates, underscoring strong inbound interest and a drive for cross-border capability transfer in logistics, fintech, and B2B software. Saudi Arabia logged eight deals, six of which were made by local acquirers, signaling a clear wave of ecosystem consolidation.

“Capability acquisition has evolved from a secondary consideration to a primary strategic rationale in MENA M&A, reflecting institutional recognition that sustainable competitive advantage increasingly depends on importing expertise, technology, and know-how that would require years to develop organically,” says Attieh.

PwC’s 2025 TransAct Middle East report highlights a clear shift toward “capability-driven acquisitions that enhance regional self-sufficiency,” citing deals like TC Mena Holdings’ 63 percent stake in Gulf Cement as a strategic move to secure local materials capacity for large-scale infrastructure projects. 

Attieh notes that this behavior is systematic rather than opportunistic, consistently appearing across AI, data centers, fintech, healthcare, advanced manufacturing, logistics, and the energy transition.

“Boards and investment committees are increasingly deploying M&A and partnerships in combination: sovereign funds utilize majority or significant minority stakes to secure strategic platforms, such as G42’s acquisition of e&’s 40 percent stake in Khazna Data Centers for AI-ready data centre infrastructure – then complement these with smaller bolt-on acquisitions to build operational depth, while corporates and family conglomerates favor minority investments and joint ventures when capabilities are highly specialized or cultural integration risks are elevated.”

STRONG DEAL ACTIVITY IN 2026

A combination of strong sovereign balance sheets, clear reform agendas, demonstrated track records of executing complex deals, and positive investor sentiment suggests that the region is well-positioned for sustained activity in 2026. 

Structural drivers suggest stronger 2026 volumes: multi-year capital programs under Vision 2030, Dubai D33, and Oman Vision 2040 will fuel asset monetizations and platform consolidations; sovereign wealth funds like PIF, Mubadala, and ADQ plan sustained or increased deployment, including cross-border deals; and massive AI and energy transition investments position the Gulf as both a capital source and development hub.

Attieh notes that current pipelines and pending deals provide a strong foundation. Across the Gulf, privatization and PPP initiatives are driving activity: Saudi Arabia has about 200 approved projects and 300 under review; Egypt presses ahead despite macro headwinds; Oman targets 35 state-owned enterprise privatizations by 2027; and the UAE continues liberalizing ownership and PPP frameworks. Around one-third of M&A transactions involve Middle Eastern buyers or assets, with digital, infrastructure, and energy transition sectors leading the way.

The region is now defined not just by growth, but by maturity, says Sweid. “Funding remains strong, international investors are showing up in record numbers, and founders are building with exits in mind from day one. Sovereign funds are still anchoring liquidity, corporate acquirers are stepping up, and capital flows are more coordinated than ever.” 

PwC’s Middle East outlook predicts continued growth in 2026 as interest rates ease, privatizations progress, and sovereign/GRIs reinvest capital in strategic sectors. “Pipeline megadeals (petrochemicals, energy transition, digital) support carry-through,” adds Hallside.

“Beyond M&A, liquidity options are expanding,” says Sweid. Secondaries are emerging for early investors, and simpler, more inclusive public listing paths for smaller companies will be key. Gaps remain—especially at Series B—but the trend is clear.

“Isolated successes no longer define MENA’s ecosystem. It is building a rhythm, a cadence of capital and opportunity. If 2025 was the year the M&A engine restarted. In that case, 2026 is shaping up to be the year it accelerates, powered by confidence, collaboration, and a growing sense that the region’s moment has truly arrived.”

However, risks persist. Attieh says, “Geopolitical tensions could disrupt investor confidence or delay cross-border regulatory approvals; a sharp deterioration in global growth or interest rate reversals could affect financing conditions and widen buyer-seller valuation gaps; tighter GCC bank liquidity and higher funding costs could constrain acquisition financing capacity.”