Mergers and acquisitions in Middle East and North Africa increase by 7% with Saudi Arabia and UAE as top performers, says EY

Merger and acquisition activities in the Middle East and North Africa (MENA) region surged by 7% in 2024, totaling $92.3 billion, triggered by significant contributions from Saudi Arabia and the UAE. A recent analysis by professional services network firm EY highlighted that the region experienced 701 deals during this period, marking a 3% increase from the previous period.

This growth in M&A deals was mainly influenced by capital market reforms across the MENA region, indicating a favorable environment for increasing transactional activities. These positive results can be widely attributed to the efforts and investments made by countries in the region to foster economic diversification and attract foreign investments.

EY’s report showcased that Saudi Arabia and the UAE played pivotal roles in driving M&A activities across different sectors. These countries adopted proactive economic policies to stimulate business growth and enhance their competitive edge in the global market. The positive impact of their strategies was evident in the increased deal flows and value, positioning them as leading destinations for mergers and acquisitions in the MENA region.

Furthermore, the EY report emphasized the significance of a stable regulatory environment in promoting M&A deals. Countries that have taken steps to improve corporate governance, streamline procedures, and enhance transparency have seen a surge in investor confidence, resulting in a higher number of mergers and acquisitions. The establishment of clear regulatory frameworks encourages both local and foreign investors to engage in various sectors, thus fostering economic growth and driving up M&A transactions.

The resilience of the MENA region’s economies, particularly in the face of global uncertainties, has further attracted investors seeking stable and lucrative opportunities. The strategic geopolitical positioning of countries like Saudi Arabia and the UAE, combined with ambitious national agendas aimed at economic diversification and the development of non-oil sectors, have offered promising prospects for investors eager to capitalize on emerging markets in the region.

EY’s analysis underscores the positive trajectory of M&A activities in the MENA region and suggests a continued upward trend in deal volumes and values. The growing investor confidence, coupled with supportive government policies and regulatory improvements, is likely to fuel further mergers and acquisitions across strategic sectors. With a favorable investment climate and a strong focus on economic reforms, Saudi Arabia and the UAE are poised to maintain their position as key drivers of M&A growth in the region.