Other BriefingsMiddle East M&A Activity Grows in H1 2025 Despite Global Slowdown
M&A activity in the Middle East surged in H1 2025 with 271 deals (+19 percent), defying the global slowdown thanks to sovereign capital, policy reforms, and focus on tech, healthcare, and energy transition. The region’s outlook remains strong, led by intra-regional transactions and regulatory progress.
As per the PwC report, the resilience of Middle Eastern dealmaking is due to the availability of sovereign capital and policy reforms designed to attract investment. There is also a deliberate incline toward high-growth industries like technology and healthcare.
Regional performance
The UAE remained the largest market by activity, recording 95 transactions in H1 2025. Although slightly lower than the 101 deals completed in H1 2024, the UAE still accounted for more than one-third of the region’s total activity. Saudi Arabia followed with 59 deals, up from 54, due to the deals linked to its Vision 2030 economic diversification plan.
Egypt was the standout performer, almost doubling its activity with 86 deals in H1 2025, compared to 48 in the same period last year. Its M&A deals growth was mostly aided by the International Monetary Fund (IMF) programs and large-scale Gulf investments alongside expectations of 3.8 percent Gross Domestic Product (GDP) growth for 2025.
The report found that cross-border deals have gained ground mostly in intra-regional transactions, rising to 134 from 118 in H1 2024. By contrast, outbound deals declined for the second year in a row, falling to 96 compared with 141 in H1 2023. The capital flow has become more localized and focused on scaling of regional champions, as world goes through its own uncertainty.
Market drivers and regulatory reforms
Several factors supported M&A growth in the region despite global uncertainty. Sovereign wealth funds remained the most active dealmakers. Their targets were projects that support localization and transition to clean energy. Corporates and domestic investors concentrated on mid-sized acquisitions that were easier to finance and quicker to execute than megadeals.
Legal and procedural reforms across Gulf economies also improved investor confidence. The UAE implemented a new merger control regime. Oman announced the creation of a dedicated investment court under Royal Decree in March 2025, scheduled to begin operations in October. This court will oversee commercial and investment disputes for faster dispute resolutions. The reforms in H1 2025 are designed to reduce uncertainty and shorten deal timelines that can in turn help achieve long-term national strategies.
Sectoral highlights
Financial services
The financial services sector remained the most active in H1 2025, recording about 70 deals compared with 44 a year earlier. It was influenced by consolidation in banking and insurance, as well as fintech transactions in 2025.
Fintech was the leading driver, with acquisitions and funding rounds focused on payments and digital lending, as per the PwC report. Egypt’s fintech firm Qardy completed a SPAC merger, raising US$23 million from Catalyst Partners Middle East to expand its lending footprint. Regional insurance also underwent consolidation, as seen in Saudi-based Walaa Cooperative’s acquisition of an 88 percent stake in UAE’s Aspire Underwriting. On the other side, banking deals were more targeted and smaller, for example, Emirates NBD’s acquisition of Emirates Islamic Bank through a US$19 million internal restructuring transaction.
Sovereign funds and private equity are embedding financial infrastructure in Middle East into wider industries, like consumer technology, by using M&A.
Technology, media, and telecommunications (TMT)
TMT transactions were dominated by the UAE and Saudi Arabia. They together accounted for more than 70 percent of disclosed activity. Investors prioritized funneling capital into emerging sectoral trends like development of data infrastructure and artificial intelligence (AI) capabilities.
As per the report, the largest disclosed technology deal was G42’s acquisition of a 40 percent stake in Khazna Data Center Holdings for US$2.2 billion. Saudi Arabia’s US$100 billion AI fund and growing investments in chip imports are a part of this trend from consumer technology toward data-driven infrastructure.
In Egypt, investors were focused on fintech and digital education platforms, for instance Cairo-based MoneyFellows raised US$13 million from regional investors. The Middle East economies are pushing to build domestic cloud and AI capacity, as was evident in the deals signed with the US President during his Middle East visit in 2025.
Energy, utilities, and resources (EUR)
The energy and resources sector managed two priorities in the H1 2025. The report found that the companies in this sector maintained traditional gas and pipeline assets to support current demand. At the same time, they also advanced energy transition projects. M&A activity was focused on investments in gas distribution and midstream infrastructure, alongside early-stage renewables.
In the UAE, Lunate Capital invested in ADNOC Gas Pipeline Assets. In Saudi Arabia, Aramco expanded into low-carbon fuels through its stake in Blue Hydrogen Industrial Gases. The Middle East economies are diversifying their energy portfolios and reducing long-term dependence on hydrocarbons. It is also visible from the growth of non-oil trading sector and its share in GDP.
Healthcare
Healthcare dealmaking remained resilient in H1 2025. The report highlights that Saudi Arabia dominated the healthcare M&As with large Initial Public Offerings (IPOs). Its IPOs were led by Almoosa Health (raising about US$450 million) and Specialized Medical Company (raising about US$500 million).
The UAE also saw consolidation in healthcare. Burjeel acquired an 80 percent stake in Advanced Care Oncology Centre for about US$25 million and purchased Medeor 24×7 Hospital’s building for US$46 million to reduce lease costs.
Consumer markets
Consumer M&A in the Middle East displayed a split pattern. Food and agriculture deals remained steady as food security weighed heavy on region’s priorities. As per the PwC report, Hassana Investment Company bought a 40 percent stake in Berain Water, and SALIC’s acquired Olam Agri for US$1.78 billion.
Discretionary sectors, especially luxury and beauty, also attracted investment. Doha Oasis bought Ever Fashion Luxury Group in March 2025 and acquired more than 26 brand stores. Huda Kattan purchased the remaining shares in Huda Beauty in June to expand her regional operations.
Food and beverages services added another layer of activity. Americana Restaurants acquired 46 Pizza Hut outlets in Oman from Khimji Ramdas in January 2025.
Industrial manufacturing and automotive
Industrial M&A was shaped by managing supply chain against risks and efforts to localize production. In Saudi Arabia, mining company, Ma’aden, acquired a 20.62 percent stake in Aluminum Bahrain for US$964 million.
Saudi Arabia also issued 83 new industrial licenses and launched 58 factories in June 2025, worth US$253 million, as part of Vision 2030’s industrial diversification program. Thus, Saudi Arabia’s M&A environment is witnessing both a state led push and deal-driven growth in the manufacturing sector.
| Deal | Country | Deal Value |
| G42 acquired 40% stake in Khazna Data Center Holdings | UAE | 2,200.0 |
| Saudi Arabian Mining Co. (Ma’aden) acquired 20.62% stake in Aluminium Bahrain | Bahrain | 963.7 |
| Elm Co. gained 100% control of Thiqah Business Services | Saudi Arabia | 907.0 |
| Al Ezz Group Holding acquired Ezz Steel | Egypt | 881.4 |
| Smart Accommodation Co. gained 100% stake in Al Nakhla Management Co. | Saudi Arabia | 666.2 |
| Source: PwC | ||
Interestingly, the report found that 96 percent of the deals disclosed in H1 2025 were valued under US$100 million, and no megadeals were completed for the second consecutive year. The businesses are under increasing pressure to reinvent their business model and acquire in focused, smaller sectors that can respond to uncertainty with agility.
Outlook
Middle Eastern M&A activity in H1 2025 remained vibrant despite global headwinds. M&A growth was driven by intra-regional transactions in technology and renewable energy, and continued deal making activity in financial services and healthcare.
The outlook, however, depends on transparent deal processes and progress on national reform programs. If these elements hold, the Middle East could be a leading global hub for M&A, even as other markets face muted activity.
Read more: How to Launch a Startup in Saudi Arabia: Navigating the Legal and Regulatory Landscape
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