MENA’s M&A Deal Value Grows 66% to $46 Billion in Q1 2025 Because of Deals Between Countries
In the first three months of 2025, the Middle East and North Africa (MENA) region had 66% more money spent on mergers and acquisitions (M&A) than the same time last year. The total value reached $46 billion, up from $27.6 billion. This increase is mainly because of deals between companies from different countries, says the latest EY MENA M&A Insights 2024 report.
M&A Deals
In the first three months of 2025, there were 225 mergers and acquisitions (M&A) deals in the region. This is 31% more than the 172 deals in the same period last year.
Most of these deals involved companies from different countries. Cross-border deals made up 52% of all deals (117 deals) and 81% of the total money spent ($37.3 billion).
This is the highest number and value of cross-border deals in any first quarter in the past five years. It shows that companies want to grow and invest outside their home countries.
Brad Watson, the MENA EY-Parthenon Leader, said that local M&A deals also increased. Domestic deals made up 48% of all deals in the first quarter of 2025. This matches the IMF’s forecast that the MENA economy will grow by 3.6% this year and is helped by strong global M&A activity.
Top Targets
The UAE was the top country for deals in the MENA region in the first quarter, with 63 deals worth $20.3 billion.
Kuwait came next in deal value, with $2.3 billion, mainly from two big deals in industrial products and power sectors.
MENA investors spent the most money on deals in Canada ($6.4 billion), while the United States had the highest number of deals.
Sovereign Wealth Funds like Abu Dhabi Investment Authority (ADIA), Saudi Arabia’s Public Investment Fund (PIF), and Mubadala, along with other government groups, were important in driving M&A deals. These efforts support their national goals of economic growth and diversification.
Domestic Activity
M&A deals inside the MENA region grew by 20% in number during the first quarter, and the total value jumped to $8.7 billion from $1.7 billion last year.
The technology sector led local M&A activity, making up 37% of the deal value and 27% of the number of deals.
The biggest local deal was Group 42 buying a 40% share in Khazna Data Centres for $2.2 billion. Khazna is a well-known company in digital infrastructure.
Most local deals happened between the UAE, Kuwait, and Saudi Arabia. These deals made up 83% of the total value and 56% of the total number. They focused mainly on technology, industry, and real estate.
Published: 29th May 2025
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