UAE Leads MENA M&A Surge with $20.3B in Deals in Q1 2025

Strong Growth Across the MENA Region

Across the broader Middle East and North Africa region, M&A activity climbed sharply in Q1 2025, with a total of 225 deals recorded. This represents a 31% increase compared to the same period in 2024. The total disclosed value of these deals reached $46 billion, representing a 66% increase from the $27.6 billion reported during the same period last year.

The rise in activity is being fueled by both regional consolidation efforts and foreign investor interest, particularly in sectors aligned with regional economic transformation strategies such as technology, logistics, financial services, infrastructure, and renewable energy.

Cross-Border Deals Drive Growth

One of the defining trends of the first quarter was the growing prevalence of cross-border M&A. These deals represented over 52% of total transaction volume and more than 81% of overall deal value. This reflects a clear shift in strategy among regional corporates, who are now looking beyond their home markets to acquire new capabilities, technologies, and access to international growth opportunities.

This trend highlights the increasing maturity of regional businesses, sovereign wealth funds, and private equity firms, which are now deploying capital globally with greater sophistication.

UAE’s Strategic Edge

The UAE’s leadership in M&A activity is supported by several key advantages:

• Investor-Friendly Reforms: Recent regulatory changes have introduced 100% foreign ownership in many sectors, long-term residence visas, and improved transparency in business regulations and legal processes.
• Robust Financial Ecosystem: Dubai and Abu Dhabi continue to develop as regional financial hubs with access to deep capital pools, experienced advisors, and a regulatory framework that supports cross-border transactions.
• Sectoral Diversification: The UAE’s drive toward economic diversification is translating into real investment activity, particularly in non-oil sectors such as fintech, education, healthcare, media, and green technology.
• Institutional Capital Leadership: The country’s sovereign wealth funds and state-backed investors are playing a central role in many of the region’s largest transactions, aligned with national strategies to build future-ready economies.

What to Expect in the Coming Quarters

Looking ahead, analysts and industry leaders expect M&A activity across the MENA region, especially in the UAE, to remain strong throughout the rest of 2025. Contributing factors include favorable macroeconomic indicators, strong liquidity, investor confidence, and a steady pipeline of companies preparing for IPOs and strategic exits.

There is also growing momentum in sectors such as artificial intelligence, defense technology, advanced manufacturing, and renewable energy, which are likely to see increased deal flow.

In addition, privatization initiatives, rising family business succession planning, and regional consolidation trends are expected to contribute to a strong second and third quarter in terms of both deal volume and value.