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According to Ansarada’s Middle East M&A Market Analysis Q1 2026 the UAE announced 33 deals worth a combined $2.2 billion during the period which reflected a recalibration of capital deployment strategies rather than any weakening in investor sentiment. The report noted that the 37 percent drop in transaction count from 52 deals in Q1 2025 occurred against a backdrop of regional geopolitical uncertainty yet fundamental drivers for activity endured. Across the wider Middle East 196 deals valued at $23.3 billion were recorded compared with 207 transactions worth $31.3 billion a year earlier while a PwC global trends assessment projected worldwide M&A value to approach $4 trillion for the full year of 2026.
Deal activity held relatively steady in other Gulf Cooperation Council markets where Saudi Arabia logged 24 announced transactions an increase from 23 in the same quarter of 2025 according to the Ansarada report. Oman accounted for seven deals valued at $535 million Qatar saw four transactions and Kuwait completed three deals worth $24 million as sovereign-backed strategies national transformation programmes and infrastructure priorities continued to underpin regional dealmaking. The analysis from Ansarada pointed to the GCC’s track record of economic resilience including through the COVID-19 pandemic as a continuing source of investor confidence that is unlikely to be fundamentally altered by prolonged tensions.
Sovereign wealth funds served as a major stabilising force within regional M&A markets the report found while economic reform programmes and diversification agendas sustained cross-border investment and outbound acquisitions by Middle Eastern acquirers. Those acquirers demonstrated confidence in the area’s capital strength strategic position and long-term growth prospects through international partnerships. Technology stood out as the most active sector by volume with 68 transactions worth $7.3 billion driven by investments in artificial intelligence fintech and enterprise technology solutions.
Transportation led in deal value generating $8.2 billion from nine transactions as commitments to strategic infrastructure remained firm according to the Ansarada document. Energy and natural resources contributed $2.2 billion across 18 deals healthcare recorded $1.9 billion from 19 transactions backed by government efforts to expand medical and life sciences capabilities and industrials produced $1.6 billion in 23 deals that reflected ambitions to strengthen domestic manufacturing. The report tied healthcare and industrial activity directly to national programmes aimed at broadening economic bases across the region.
Justin Smith the managing director at Ansarada stated “The conflict may be reshaping deal timelines but it’s not reshaping the region’s thirst for ongoing M&A activity.” Smith added “We remain confident in the long-term health of deal activity in the UAE which we view as an enduring and critical hub for M&A in the region and beyond.” He noted that while volatility continues a lot of dry powder waits for the right opportunities deals already under way advance with more rigorous diligence and the fundamental strategic drivers for M&A in the UAE remain strong.
Smith further observed that periods of uncertainty place enormous pressure on execution certainty requiring real-time visibility into risk compliance and diligence readiness. He said virtual data room platforms such as Ansarada help dealmakers manage complexity maintain momentum and execute transactions with greater confidence and efficiency. The Ansarada assessment concluded that prolonged geopolitical tensions could influence dealmaking timelines in the short to medium term but would be unlikely to alter the region’s long-term growth trajectory.
