MENA Merger and Acquisition Activity Rises 7% in 2024, Driven by Saudi Arabia and UAE

Merger and acquisition (M&A) activity across the Middle East and North Africa (MENA) region surged 7 percent in 2024, reaching a total transaction value of $92.3 billion, according to an EY report. The report highlights that Saudi Arabia and the UAE played a pivotal role in driving this growth.

Increase in Deals and Regional Leadership

The number of M&A deals in MENA increased by 3 percent year-on-year, rising from 679 in 2023 to 701 in 2024. The UAE and Saudi Arabia together accounted for 318 transactions worth $29.6 billion, making them key players in the region’s expanding deal-making landscape.

According to EY, this increase was fueled by capital market reforms, strategic policy shifts, and strengthened efforts to attract international investment. Earlier this month, banking firm Morgan Stanley echoed similar sentiments, predicting a continued upswing in M&A activity in 2025, driven by regulatory changes and economic policies.

Major Transactions in 2024

The Gulf Cooperation Council (GCC) region remained at the heart of MENA’s M&A boom, accounting for 580 deals, representing 52 percent of total volume and 74 percent of total deal value.

Among the largest M&A transactions in 2024:

• UAE: The biggest deal was the $12.4 billion acquisition of Truist Insurance by a consortium including Clayton Dubilier & Rice, Stone Point Capital, and Mubadala Investment.
• Saudi Arabia: Saudi Aramco acquired a 22.5 percent stake in Rabigh Refining and Petrochemical Co. from Sumitomo Chemical (Japan) for $8.9 billion.
• China: A 60 percent stake in Zhuhai Wanda Commercial Management Group was acquired by PAG, Mubadala, and the Abu Dhabi Investment Authority for $8.3 billion.

Outbound M&A Dominates Regional Transactions

According to EY’s analysis, outbound transactions—where MENA firms acquire foreign companies—formed the largest portion of deal value in 2024, contributing 61 percent of total M&A activity. This translated into 199 outbound transactions worth a combined $56.6 billion.

Meanwhile, domestic M&As accounted for 48 percent of total deal volume, with 339 transactions valued at $24.4 billion.

Sectors Driving Growth

The technology and consumer products sectors led MENA’s M&A landscape, with each seeing a 10 percent year-on-year increase in deal volume. Notably, technology remained the most attractive sector for investors, making up 23 percent of all inbound and domestic transactions.

“The MENA region is experiencing a productivity renaissance fueled by technology and AI, which is driving capital allocation and M&A,” said Anil Menon, head of M&A and equity capital markets at EY MENA.

The oil and gas sector saw the highest domestic M&A deal values, largely due to Saudi Aramco’s $8.9 billion acquisition of a stake in Rabigh Refining and Petrochemical Co.

International and Regional Expansion

The United States emerged as the largest foreign acquirer in MENA, with 48 deals totaling $4.6 billion. Additionally, EY’s report noted an increased focus on strengthening trade and investment ties between MENA, Asia, and Europe, opening doors to larger and expanding markets.

“The top five subsectors in MENA’s M&A activity were insurance, asset management, real estate and hospitality, power and utilities, and technology—demonstrating investor interest in the region’s innovation potential,” added Brad Watson, strategy and transactions leader at EY MENA.

With ongoing economic diversification efforts and a push for foreign direct investment, experts anticipate that MENA’s M&A growth trajectory will remain strong in 2025 and beyond.