A surge in mergers and acquisitions is taking place across the Gulf region, with Saudi Arabia and the UAE at the forefront. The two nations collectively contributed to a 7% rise in deal value, reaching $71 billion in the first nine months of 2024.

According to EY’s MENA M&A Insights 9M 2024 report, the MENA region saw a total of 522 deals during this period, reflecting a 9% year-on-year increase in deal volume.

Key drivers of this growth include cross-border transactions and investments from sovereign wealth funds such as the UAE’s Abu Dhabi Investment Authority (ADIA) and Mubadala, as well as Saudi Arabia’s Public Investment Fund (PIF).

Brad Watson, EY MENA strategy and transactions leader, said: “Deal activity in the MENA region has seen a notable improvement this year, driven by strategic policy shifts, the liberalization of investment regulations, and robust capital inflows from investors.” 

The UAE and Saudi Arabia emerged as the region’s leading investment destinations, representing 52% of the total deal volume and 81% of the total deal value. Together, they accounted for 239 transactions worth $24.5 billion.

Sovereign wealth funds played a central role in driving regional M&A activity, aligning their investments with long-term national diversification strategies. Key sectors of interest included technology, energy, and infrastructure.

Cross-border M&A activity made up 52% of deal volume and 73% of total deal value, while domestic transactions also saw significant growth, increasing 44% year on year to $19.3 billion.

Government-related entities dominated domestic deals, focusing on oil and gas, metals and mining, and chemicals.

Insurance and oil and gas sectors dominated by deal value, contributing 34% of the total, while technology and consumer products led domestic M&A activity by volume, with 78 deals accounting for 31% of the total.

Outbound M&A was the largest contributor to overall deal value, with 147 transactions totaling $41.4 billion, particularly in insurance and real estate. The US and China accounted for 70% of outbound deal value.

Inbound deals also grew, with volumes rising 20% and values climbing 47% to $10.4 billion. Technology and professional services drove much of this activity, with the US and UK emerging as key contributors.