M&A activity in the Middle East grows in first half of 2025

Mergers and Acquisitions (M&A) activity in the Middle East showed promising advancements in the first half of 2025. Despite the prevailing global uncertainties, several major markets experienced a slowdown in deal-making. However, research conducted by WTW, a global advisory, risk, and insurance firm, indicated a notable increase in M&A momentum in the Middle East during this period.

The study revealed that globally, there were 339 transactions exceeding $100 million in value completed in the first half of 2025, a slight uptick from the previous year’s 332 deals. Notably, North America, which is regarded as the world’s largest deal market, witnessed a decline in deal volume from 292 in H1 2021 to 160 in H1 2025. Conversely, Europe and Asia Pacific showed a robust performance, with China playing a significant role in boosting deal-making activities in the latter region.

According to the findings, transactions within the telecommunications and materials sectors that closed in H1 2025 achieved the highest return on investment for the acquirers. Mega deals, valued at over $1 billion, proved to be the most financially rewarding. However, deals that spanned across different sectors or were under the $1 billion mark struggled to generate substantial returns.

Devvrat Gaggar, Middle East M&A Consulting Director at WTW, attributed the resurgence in deal activity in Europe, Asia, and the Middle East to the prevailing geopolitical uncertainties, emphasizing that dealmakers are adapting strategies to create long-term value. Gaggar highlighted the renewed confidence and momentum in deal-making observed in these regions, contrasting North America’s lag in this aspect.

Specifically focusing on the Middle East, which included Africa in its assessment, WTW noted a 35% year-on-year increase in total transaction value. Countries like the United Arab Emirates and Saudi Arabia spearheaded this growth, with several deals centered around government-supported initiatives such as private sector expansion, foreign investment, and sector deregulation. Key sectors driving these deals included renewable energy, fintech, logistics, and advanced technologies.

Gabe Langerak, M&A Consulting leader for the Middle East & Africa at WTW, pointed out that the M&A landscape in early 2025 reflected the region’s growing confidence and strategic vision. Noteworthy transactions in the UAE, such as G42 Holding’s $2.2 billion acquisition of Khazna Data Center, played a pivotal role in the surge recorded in announced transaction values in the region.

Looking ahead, Langerak and Gaggar expressed expectations for continued deal flow in infrastructure, financial services, and technology sectors. They anticipated that regional players would prioritize scalability, resilience, and localization in response to evolving global trade dynamics and escalating geopolitical complexities. The research conducted in collaboration with the M&A Research Centre at Bayes Business School used deal data sourced from Refinitiv to derive these insights.