MENA sees 390 M&A deals worth $46.7 billion in first half of 2026

The MENA region recorded 390 mergers and acquisitions worth $46.7 billion in the first half of 2026, as strong domestic and outbound investment helped sustain dealmaking despite geopolitical uncertainty.

The UAE and Saudi Arabia remained the region’s most active outbound investors, while sovereign wealth funds and government-related entities continued to deploy capital across strategic sectors, according to the EY MENA M&A Insights report.

Overall activity moderated from the same period last year, when 434 deals worth $58.8 billion were recorded. However, momentum picked up in the second quarter of 2026, driven by domestic transactions, outbound investment, and continued sovereign capital deployment.

The recovery became particularly visible toward the end of the quarter, with May and June accounting for 61% of Q2 deal volume and 79% of deal value.

Large transactions also played an outsized role. Deals valued at more than $500 million accounted for nearly three-quarters of total deal value between March and June, signaling continued appetite for strategic, high-value assets.

Brad Watson, MENA EY-Parthenon Leader, said the first half of the year demonstrated the resilience of the region’s M&A market despite a more cautious global investment environment.

“Strong domestic capital deployment, active sovereign investors and the region’s continued focus on economic diversification have helped sustain deal activity,” he said, adding that improving momentum toward the end of the second quarter reflected growing confidence in the region’s long-term investment outlook.

Domestic investment accelerated sharply between March and June, reaching $16 billion — more than four times the value recorded during the same period last year. Major transactions across real estate, power and utilities, and technology helped drive the increase.

Government-related entities remained prominent in domestic dealmaking, reflecting continued investment in infrastructure and national economic transformation programs.

Outbound investment also remained resilient, with 119 deals worth $25.5 billion completed during the first six months of the year. Investors from the region targeted opportunities across technology, transportation, financial services, and energy-related sectors, with the UAE and Saudi Arabia leading outbound activity.

Among the largest transactions was Dubai Aerospace Enterprise’s $7 billion acquisition of Macquarie AirFinance. Saudi Electronic Gaming Holding Company’s $6 billion acquisition of Shanghai Moonton Technology was another major deal during the period.

Technology remained a key priority even as inbound investment slowed amid geopolitical uncertainty. The sector accounted for the largest share of inbound deal value between March and June, with investors targeting AI-driven solutions, enterprise digitalization, software platforms, and technology-enabled business services.

The UAE remained MENA’s preferred destination for inbound investment, supported by its diversified economy and regulatory environment, according to EY.

Sovereign wealth funds and government-related entities, including ADIA, PIF, and Mubadala, also continued to shape regional dealmaking, directing capital toward sectors aligned with long-term economic diversification strategies.

Anil Menon, MENA EY-Parthenon Head of M&A and Equity Capital Markets Leader, said investors were increasingly prioritizing transactions aligned with long-term strategic objectives.

“While geopolitical developments have influenced the pace of inbound activity, domestic and outbound investment has remained resilient, supported by strong corporate balance sheets, sovereign capital and continued investment across priority sectors,” he said.

As regional economies continue to pursue diversification, strategic assets, particularly in technology, infrastructure, and other priority industries, are likely to remain central to MENA’s dealmaking landscape.