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AI is rewriting M&A in MENA. But not every firm is ready

Wider adoption in the MENA region faces challenges like data sensitivity, regulatory hurdles, and skills gaps.

AI is rewriting M&A in MENA. But not every firm is ready
[Source photo: Krishna Prasad/Fast Company Middle East]

M&A activity in the Middle East and North Africa (MENA) region is growing rapidly, with deal volumes rising 26% in 2025 to reach $106.1 billion across 884 transactions.

Beyond the headline numbers, there is a deeper change: the M&A market, once driven by relationships and slow processes, is quickly moving toward digital solutions.

Driven by government efforts to diversify and by investors seeking new opportunities, a deal technology (dealtech) revolution is underway. Using AI, data analytics, and automation, these platforms are changing how companies are bought, sold, and financed across the region.

FROM RELATIONSHIP-DRIVEN TO PLATFORM-LED

The shift to digital M&A is happening at every level. In the UAE, Dubai-based Bidzi is establishing itself as a digital M&A platform for SMEs, providing valuation, buyer discovery, due diligence, and escrow-backed closings in one workflow.

With the UAE’s SME base projected to reach one million businesses by 2030, platforms like Bidzi are critical to scaling deal activity.

Governments and global players are joining in as well. In 2025, the Sharjah FDI Office launched Sharjah AcquireHub, the region’s first government-backed digital M&A platform that connects capital directly with businesses ready to be acquired.

At the same time, global platforms like Ansarada are gaining ground by providing AI-powered deal intelligence and virtual data room (VDR) tools designed for complex cross-border deals.

“Deal technology is fundamentally reshaping M&A transactions across the Middle East, driven by the region’s growing deal sophistication, increased cross-border activity, and the need for faster, more secure processes,” says Arie Maree, head of growth for Middle East & Africa at Ansarada.

TRANSFORMING DUE DILIGENCE 

The biggest impact of dealtech is happening in due diligence. Tasks that once needed many analysts are now automated.

Amar Rizvi, head of M&A and Equity Capital Markets at Dubai-based Klay Capital Ltd, says AI-powered document review and red-flagging are speeding up risk assessment.

“CRM platforms such as DealCloud and Salesforce enhance internal collaboration… while data analytics tools are supporting more targeted buyer identification and valuation analysis,” he says.

This automation directly impacts deal velocity. According to Maree, “What used to take weeks of manual document review and Q&A can now happen in days, with AI helping to surface key risks and insights that might otherwise be missed.”

LEVELING THE INFORMATION GAP

In the past, the party with the most information usually had the upper hand in M&A negotiations. Dealtech is changing this, making negotiations more balanced.

Abhishek Jain, CEO at Dubai-based PESA Capital and risk management firm EIRS, points out that technology is significantly reducing the information gap between buyers and sellers.

“Buyers can now interrogate and analyze data more deeply, while sellers can present verified performance data clearly and professionally,” Jain explains. “In our experience, leverage no longer depends on who has more information, but on who can interpret and present it better.”

Anurag Chaturvedi, CEO of Andersen, says that although dealtech’s practical uses are becoming standard, their impact is still very significant.

AI-powered virtual data rooms now automatically organize large document sets, and natural language processing tools quickly flag important contract clauses, such as change-of-control provisions. Predictive analytics are also being used more to manage complex valuation models.

“Technology is changing how both parties work,” Chaturvedi says. “Buyers use AI tools to screen thousands of potential targets. This enables a more thorough financial analysis and more effective deal-structure modelling. Sellers benefit from faster timelines: AI-powered data rooms accelerate setup, organize documents, and identify documentation gaps.”

However, Chaturvedi warns that technology should not replace traditional dealmaking. He believes the most successful firms combine fast digital tools with experienced human judgment.

“Technology enhances execution,” he emphasizes, “but strategic thinking and relationship building remain central.”

SOVEREIGN CAPITAL LEADS THE CHARGE

Despite the rapid advancements, dealtech adoption in the Middle East remains uneven, resulting in a distinct two-tier landscape.

The market is heavily dominated by sovereign wealth funds (SWFs) and government-related entities, which account for 86 percent of deal value in the region. Citing the latest Global SWF report, Chaturvedi notes that these institutions—such as Mubadala, Qatar Investment Authority, and Saudi Arabia’s Public Investment Fund—deployed $66 billion into AI and digitalization in 2025. 

This massive capital injection has enabled mega-deals — from Abu Dhabi-based MGX’s role in the $40 billion acquisition of US data infrastructure group Aligned Data Centers, to the Qatar Investment Authority backing American AI firm Anthropic in its $13 billion Series F, to ADNOC L&S’ purchase of an 80% stake in Singapore’s Navig8 for $1 billion.

These complex, international deals demand coordination across jurisdictions, varying data laws, and extreme time-zone differences, which is exactly where advanced dealtech adds value.

Yet despite these high-profile examples, smaller firms often struggle with skills gaps, data sensitivity concerns, and regulatory complexity. In 2025, the UAE and Saudi Arabia together captured 59% of regional deals, reflecting the concentration of digital capability.

“The current reality is that the largest players have advanced capabilities while smaller regional firms face significant barriers,” says Chaturvedi. 

He adds that wider adoption is held back by data sensitivity—since sellers often won’t let confidential info be used for AI training—regulatory hurdles like Saudi Arabia’s strict data localization rules, and skills gaps, with many smaller firms still using generic chatbots instead of specialized M&A tools.

Still, technology providers are hopeful the playing field will even out. By offering localized data infrastructure, like keeping data stored in the UAE and Saudi Arabia, platforms are tackling regulatory and security concerns for all players.

“The pace of adoption we’re seeing reflects the broader transformation happening here,” says Ansarada’s Maree. “Middle East dealmakers aren’t just catching up; in many cases, they’re setting new standards for how technology should support complex, high-value transactions.”

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