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The EY MENA M&A Insights 2025 report documented a 26 percent increase in deal volume from 701 transactions in 2024, with total value climbing 15 percent from $92.3 billion as the region demonstrated resilience amid geopolitical tensions and economic shifts. GCC countries accounted for the majority of activity under the EY figures, completing 685 deals worth $102.1 billion that underscored their central role in driving regional momentum. Cross-border transactions contributed 54 percent of overall volume and 61 percent of value, reflecting corporate and investor efforts to pursue opportunities beyond domestic borders throughout the year.
Inbound deal volume expanded 37 percent to 223 transactions valued at $25.4 billion, more than doubling the $11.4 billion registered in 2024, the EY report showed. Outbound activity gained 29 percent in volume to reach 256 deals worth $39.2 billion as MENA entities extended their footprint internationally. The United Arab Emirates emerged as the venue for the three largest transactions, led by the $16.5 billion OMV-Borealis acquisition of a 64 percent stake in Borouge, followed by the $13.8 billion L’IMAD purchase of 84.76 percent in Modon and the $7.7 billion Multiply deal for 42.2 percent of 2PointZero.
Domestic deals represented 46 percent of total volume with 405 transactions valued at $41.6 billion, according to EY data that highlighted sustained local consolidation across multiple sectors. Technology and consumer industries captured 38 percent of deal count while real estate and asset management commanded 55 percent of value in transactions completed during the period. The United Arab Emirates and Saudi Arabia together attracted 59 percent of MENA targets and generated 66 percent of regional deal activity as investors, with Egypt and Kuwait also ranking among the top five countries for both bidding and target roles.
Interim updates from the same EY reporting series illustrated how activity built steadily, with the first quarter of 2025 alone producing 225 deals valued at $46 billion for a 31 percent volume rise and 66 percent value increase from the prior-year period. The first nine months delivered 649 transactions totaling $69.1 billion, establishing a strong platform for the full-year outcome that EY detailed in its February 2026 release. Sovereign wealth funds including the Abu Dhabi Investment Authority, Mubadala Investment Company and Saudi Arabia’s Public Investment Fund acted as significant catalysts for this expansion, the EY assessment found.
Banking sector participants directed substantial outbound capital toward India, where Emirates NBD invested $4.4 billion in RBL Bank, International Holding Company committed $1.1 billion to Sammaan Capital and the Abu Dhabi Investment Authority took a stake in IDFC FIRST Bank, per the EY breakdown. These moves aligned with broader patterns of diversification that shaped MENA investment flows last year. The EY MENA M&A Insights 2025 report further noted that inbound activity in the United Arab Emirates represented 49 percent of regional volume and 92 percent of value while the country recorded 131 domestic deals.
In commentary accompanying the data, EY-Parthenon partner Brad Watson said the MENA M&A market remained resilient with cross-border transactions as the main driver while governments invested steadily and rising foreign direct investment added momentum. EY-Parthenon MENA managing partner Anil Menon described 2025 as a remarkable show of resilience despite political unrest, global trade uncertainties and the technology transformation led by artificial intelligence, where M&A was deployed surgically by corporates and sovereign wealth funds. The patterns observed in the EY report reflect sustained interest in technology, professional services and industrial diversification across the region.
