• UAE, Saudi Arabia and Egypt dominated activity, driving 89% of all deals
  • Intra-regional transactions rose to 134 deals, signalling deeper Gulf integration and rising investor confidence

Riyadh, Kingdom of Saudi Arabia – PwC Middle East has launched its 2025 TransAct Middle East mid-year update report, highlighting a surge in regional mergers and acquisitions (M&A) despite global headwinds. The report, ‘Middle East M&A defies global slowdown powered by sovereign capital, reforms, and high-growth sectors’, reveals a 19% increase in Middle East deal volumes in the first half of 2025, reaching 271 deals compared to 228 during the same period last year.

This surge comes despite a 9% decline in global M&A, underscoring the region’s ability to adapt swiftly and sustain momentum through sovereign capital, ambitious reforms, and diversification into high-growth sectors.

While global dealmaking has been slowed by economic headwinds and tariff-linked challenges, the Middle East is charting its own course. Sovereign wealth funds, domestic investors and corporates are driving disciplined, mid-market transactions that are easier to finance, faster to execute, and directly aligned with national priorities around localisation, digital sovereignty, and economic diversification.

Romil Radia, Deals Markets Leader at PwC Middle East, commented: “The Middle East has continued to show resilience and ambition in the first half of 2025 with deal activity growth in contrast to the global decline in M&A volumes. The shift towards mid-market, high-impact deals shows a sharp focus on strategic assets that are easier to fund and align with national goals like localisation, economic diversification and building digital and green infrastructure.”

Technology, energy transition and healthcare continue to anchor regional M&A. Landmark transactions such as G42’s US$2.2bn acquisition of a 40% stake in Khazna Data Centers and Saudi Arabia’s US$100bn Project Transcendence AI commitment underscored the region’s ambition to lead in digital infrastructure and advanced technologies.

The report also highlights how sovereign-led investments in green hydrogen, sustainable transport, and renewable energy are accelerating decarbonisation and long-term growth. At the same time, consolidation in specialised healthcare is advancing localisation and expanding access to world-class care across the region.

The Middle East’s M&A market should continue to have some momentum where domestic and intra-regional transactions will continue to lead, while mid-sized deals provide the most practical path to growth in transformative sectors such as green energy, healthcare and digital infrastructure. Despite some market pressures, the region is well positioned to unlock new value, reshape industries, and strengthen its global influence in high-growth markets.

For more information, visit PwC 2025 TransAct Middle East mid-year report.

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