MENA region witnesses increased M&A activity in 2024 with 701 deals totaling US$92.3b

• The expansion was driven mainly by reforms in the capital markets, strategic policy changes and strengthened efforts to attract foreign investments
• The UAE and KSA were key players in M&A activity during 2024
• The UAE witnessed the region’s largest deal with the announced acquisition of Truist Insurance by Clayton Dubilier & Rice, Stone Point Capital and Mubadala Investment for US$12.4b

According to the latest EY MENA M&A Insights 2024 report, the MENA region recorded a 3% rise in merger and acquisition (M&A) activity with 701 deals in 2024, compared to 679 deals in 2023. The total deal value in 2024 reached US$92.3b, indicating a 7% increase from the previous year. The GCC region accounted for the majority of deals with 580, amounting to US$90b.

This expansion was largely fueled by substantial reforms in the capital markets, strategic policy changes and enhanced efforts to attract foreign investments. Cross-border deals were the major driver of M&A deals in the MENA region, accounting for 52% of the volume and 74% of the value.

Brad Watson, EY MENA Strategy and Transactions Leader, says:
“In 2024, the MENA region witnessed positive developments in the M&A space with a year-on-year (YoY) increase in activity as well as overall deal value. With companies actively seeking opportunities to grow and diversify their operations, cross-border deals were the major driver in terms of volume and value. The top five sub-sectors were insurance, asset management, real estate and hospitality, power and utilities, and technology – indicating a real interest in the innovative solutions that the MENA region can provide. In addition, there is a focus on strengthening regional relationships with Asian and European countries, enabled MENA countries to gain access to larger and growing markets.”

Sovereign wealth funds (SWFs), such as the Abu Dhabi Investment Authority (ADIA) and Mubadala from the UAE, as well as the Public Investment Fund (PIF) from KSA, continued to lead the deal activity in the region.

The UAE reported the region’s largest M&A deal of the year with the announced acquisition of Truist Insurance by Clayton Dubilier & Rice, Stone Point Capital and Mubadala Investment for US$12.4b. This was followed by Saudi Aramco’s acquisition of a 22.5% stake in Rabigh Refining and Petrochemical Company from Tokyo-based Sumitomo Chemical for US$8.9b. The third-largest deal was the acquisition of a 60% stake in the Chinese shopping mall company Zhuhai Wanda Commercial Management Group by PAG, Mubadala and ADIA for US$8.3b.

Outbound deals contributed the largest share of M&A transaction value in 2024 accounting for 61% of the total consolidated deal value, with 199 transactions amounting to US$56.6b. The MENA region continues to be one of the most attractive destinations for foreign direct investors. In 2024, there were 163 inbound deals with a combined value of US$11.4b, marking an 18% increase in volume and a 42% surge in value compared with 2023.

In terms of sectors, technology and consumer products were the leading contributors to overall deal volume, each experiencing a 10% YoY increase.

The United States emerged as the largest acquiring country outside of the region by volume and value, with 48 transactions totaling US$4.6b.

UAE and KSA among preferred investment destinations

The UAE remained the preferred destination for investors due to its enabling business environment. The country achieved the highest volume and value for inbound transactions, with 96 deals valued at US$7.6b, representing 67% of the total deal value.

The highest number of deals — 35 — were in the technology sector, driven by the country’s focus on AI, cybersecurity and digital transformation. The landmark acquisition of Abu Dhabi’s Group 42 by Microsoft for US$1.5b reflects the strengthening ties between the UAE and the United States. The US-UAE Business Council actively promotes partnerships between the two countries, creating favorable conditions for cross-border innovation.

KSA was another popular investment destination in the region. The UAE and KSA reported significant combined deal volume with 318 deals valued at US$29.6b. The two countries were also among the top MENA bidders, indicating their active participation in the M&A landscape.

In 2024, the United States was the favorite target destination for MENA investors with 41 deals that amounted to US$19.9b in total value.

Morocco made it among the region’s top five target countries as well as bidder countries by volume and value last year, while Qatar, Bahrain, Egypt and Kuwait also made appearances between the target and bidder lists.

Domestic deal activity on the rise

Domestic M&As contributed 48% of the total deal volume in 2024 with 339 deals, compared to 333 deals in 2023. The combined disclosed value of domestic M&A transactions stood at US$24.4b.

The technology and consumer products industries have been drawing increased investor interest, fueled by digital transformation and evolving consumer behaviors in the region. Both sectors together contributed 35% of the total domestic deal volume.

Oil and gas sector builds on last year’s momentum

Continuing last year’s upward trajectory, oil and gas was the top sector by disclosed deal value in 2024 with US$9.0b, accounting for 37% of the total domestic deal value. This was largely due to Saudi Aramco’s US$8.9b acquisition of Rabigh Refining and Petrochemical Company.

Anil Menon, EY MENA Head of M&A and Equity Capital Markets Leader, says:
“In 2024, technology remained the most attractive sector for investors, accounting for 23% of total inbound and domestic deal volume. We are living through a productivity renaissance fueled by technology and AI, which will manifest in capital allocation and M&A.”

“The deal book (across sectors) for the fiscal year 2025 remains extremely strong and we expect to see continued portfolio momentum and interest in MENA-based assets.”

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