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Middle East M&A deals surge 52% to $29 billion in 2024, led by energy and tech
Middle Eastern acquirers have significantly increased their investments in Europe, with strategic deal value for European targets rising by 120%.
The Middle East saw a sharp rise in mergers and acquisitions (M&A) in 2024, with deal value soaring to $29 billion—a 52% increase from the previous year. Sovereign wealth funds and government-linked entities remained the primary activity drivers, with Saudi Arabia and the UAE leading in deal value. The energy and natural resources sectors dominated the landscape, accounting for nearly 80% of total transactions.
The largest deal of 2024 was Saudi Arabian Oil Co.’s $8.9 billion acquisition of Rabigh Refining & Petrochemical Co. Meanwhile, the advanced manufacturing and technology sectors saw significant momentum, with tech-related deals doubling in value.
Gregory Garnier, Partner at Bain & Company and head of the Private Equity and Sovereign Wealth Fund practice in the Middle East, commented: “2024 has proven to be a transformative year for the region’s M&A activity. With continued support from government entities and strong cross-regional investments, particularly in Europe, the Middle East is well-positioned to continue driving high-value strategic acquisitions, especially in energy transition and technology sectors. The UAE’s investor-friendly regulations are further enhancing the region’s role as a key global player in M&A.”
Middle Eastern acquirers have sharply increased their investments in Europe, with strategic deal value for European targets surging by 120%. In contrast, investments in the Asia-Pacific region saw a steep 78% decline in 2024. Local companies are also increasingly pursuing joint ventures, particularly in renewable energy. Notably, Saudi Arabia’s sovereign wealth fund completed three joint ventures in solar and wind projects last year.
After years of sluggish global M&A activity, 2025 could mark a turning point. Bain & Company’s Global M&A Report for 2025 predicts a rebound as two major obstacles—high interest rates and regulatory challenges—are expected to ease in the coming year.
M&A and divestitures will remain essential for companies navigating the changing landscape of technology disruption and a post-globalization economy. Les Baird, Partner at Bain & Company and head of the firm’s global M&A and Divestitures practice, said: “M&A activity tends to be cyclical, and we believe the market is poised for an upturn. While we saw a modest recovery last year, deal value remains historically low as a percentage of global GDP as headwinds have stifled dealmaking for the past three years. The best companies have persisted throughout the slow period, learning to navigate unfavorable market realities to deliver inorganic growth. As headwinds become less acute, more companies will join those that have learned how to adapt.”
With new administrations in the EU and US fostering a more M&A-friendly environment, strategic dealmakers in 2025 are expected to focus on long-term growth rather than short-term market fluctuations. The ongoing wave of technological disruption will further drive deal activity, with generative AI, automation, renewable energy, and quantum computing becoming essential for maintaining competitiveness. As a result, both tech and non-tech firms are likely to pursue tech-driven acquisitions to strengthen their capabilities and optimize costs.
The post-globalization era and shifting profit pools reshape M&A strategies, prompting executives to rethink global operations, tap into high-growth markets, and strengthen supply chains. Bain’s report highlights evolving trends across industries, noting that while a few major acquisitions took place in the consumer products sector, overall deal value declined by 19% in 2024 as companies prioritized streamlining portfolios and divesting non-core assets.
The energy and natural resources sector witnessed a wave of consolidation, with oil, gas, and chemicals companies restructuring their portfolios, driving energy deals to a record $400 billion. In financial services, M&A activity surged to $309 billion, fueled by technology advancements, regulatory shifts, and evolving customer expectations. The media and entertainment industry saw increased consolidation as traditional firms scaled up in response to big tech’s expansion. Meanwhile, retail rebounded in deal value and volume, with executives anticipating sustained dealmaking momentum in 2025.
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