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The UAE took the top spot in Mergers and Acquisitions (M&A) activity in the MENA region during the first nine months of 2025, achieving the highest volume and value for inbound transactions with 171 deals valued at $29 billion.
Findings of the EY MENA M&A Insights 9M 2025 report attributed this performance to sustained investor interest and an improved economic environment seen across the MENA region, which resulted in a 23% year-on-year rise in dealmaking activity, with a total of 649 deals valued at $69.1 billion.
The GCC accounted for 500 of those deals, valued at $65.9 billion, the report stated.
Cross-border transactions remained dominant, contributing to 54% of the volume and 76% of the value, the highest in the past five years over the period.
“The MENA M&A market continues to demonstrate resilience this year. The rise in cross-border deal activity showcases the growing appetite of companies for international expansion and portfolio diversification,” Brad Watson, EY MENA Strategy and Transactions Leader said.
Big ticket deals
The UAE’s performance was bolstered by the announced acquisition of a 64% stake in Borouge by Austrian giant OMV and its subsidiary Borealis for $16.5 billion in March, making it the region’s largest M&A of the year to date.
The Abu Dhabi National Oil Company’s (ADNOC’s) acquisition of a 46.94% stake in the Canada’s NOVA Chemicals for $6.3 billion in March, came in second place, making it one of the largest deals in the global petrochemical space this year.
The March acquisition of Primax S.A by Saudi Aramco for $3.5 billion was the third largest deal of 2025 in the region, the report stated.
Outbound deals contributed the largest share of the M&A transaction value in the first nine months, with 189 deals amounting to $28.5 billion. The UAE and Saudi were among the top MENA bidders, accounting for 85% of the total outbound deal value.
Canada attracted the highest outbound deal value from MENA investors at $7.1 billion, while UK was the preferred target country in terms of deal volume.
During the first nine months of 2025, the region recorded 160 inbound deals with a combined value of $23.8 billion, marking a 25% increase in volume and a 34% surge in value compared to the same period last year.
Domestic M&As contributed 46% of the total deal volume in the first nine months with 300 deals and a combined disclosed value of $16.8 billion. Mid-sized deals trended high, driven mainly by activity in technology, provider care, as well as banking and capital markets sectors.
Sovereign wealth funds among the major M&A drivers in MENA with 22 deals announced during this period.
(Writing by Farah Heiba, editing by Bindu Rai)
