Middle East M&A surges as global dealmaking slowly recovers

The Middle East has emerged as one of the world’s strongest mergers and acquisitions (M&A) performers in 2025, defying a volatile global environment and posting growth levels far outpacing most major regions, a report showed on Monday.

According to Boston Consulting Group’s 2025 M&A Report, deal volume in the first nine months of the year rose 13 per cent, while aggregate deal value surged 58 per cent year‑on‑year — a dramatic contrast to the global market’s slower 10 per cent recovery. 

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The region’s momentum stands out at a time when dealmaking across Europe and Asia‑Pacific remains subdued. While North America leads in absolute value, the Middle East is one of the few regions showing both strong deal volume and a steep rise in transaction value, underscoring its growing role as a global M&A engine. 

Sovereign wealth funds lead the charge

At the heart of the Middle East’s M&A acceleration are its influential sovereign wealth funds — particularly in the UAE and Saudi Arabia. Their deep liquidity has enabled regional acquirers to remain active even as global dealmakers face tariff shifts, geopolitical risks, and tightening regulatory scrutiny.

Among the headline deals of 2025 is Adnoc’s $13.4 billion acquisition of Nova Chemicals, cementing Abu Dhabi’s ambition to expand its international chemicals footprint. Saudi Arabia’s Savvy Games Group continued the kingdom’s bold push into entertainment and digital industries with a $3.5 billion acquisition of Niantic’s games business, one of the largest technology and gaming transactions globally this year.

These moves align with national diversification agendas — such as Saudi Vision 2030 and the UAE’s industrial and technology strategies — which are accelerating investment beyond hydrocarbons.

Energy and industrials form the M&A core

Unsurprisingly for the region, energy remains a dominant pillar of dealmaking. But the nature of energy investments is shifting. While traditional hydrocarbons still attract major capital, utilities, power, and renewables are gaining prominence. ACWA Power’s $693 million purchase of Al Ezzel O&M Company reflects rising consolidation in generation and grid‑operation platforms tied to the broader energy transition. 

Industrials have also taken centrestage, driven largely by diversification strategies. ADQ’s $925 million acquisition of logistics firm Aramex highlights the region’s ambition to build integrated supply‑chain capabilities and position itself as a global logistics hub bridging East and West.

A rising technology powerhouse

The most notable shift in 2025 is the region’s increasing appetite for technology, media, and telecommunications (TMT) assets. Beyond Savvy Games Group’s megadeal, cross‑border digital acquisitions such as Emirates Telecommunications Group’s $855 million purchase of Serbia Broadband point to a strategic push to expand digital platforms and connectivity footprints. This puts the Middle East in step with global trends: BCG data shows that technology remains one of the most resilient sectors worldwide, with deal value rising 10 per cent in the first three quarters of 2025. 

Global M&A: Recovery, but uneven

Internationally, the M&A landscape is recovering but remains uneven. The first nine months of 2025 saw global deal value rise 10 per cent, driven by megadeals in the US — including the $71.5 billion Union Pacific–Norfolk Southern merger and Alphabet’s $32 billion acquisition of Wiz. However, large‑scale transactions remain below historical averages, and Europe and Asia‑Pacific posted declines in overall deal activity. 

Private equity, meanwhile, continues to sit on nearly $2 trillion in dry powder, but fundraising momentum has slowed since 2021. Across regions, geopolitical tensions, interest‑rate volatility, and regulatory shifts continue to shape deal certainty and timelines. 

A region positioned for 2026

Amid this global uncertainty, the Middle East stands out for its liquidity, state‑driven economic transformation, and rising cross‑border ambition. With sovereign wealth funds accelerating outbound activity, domestic champions consolidating key sectors, and cross‑border digital and industrial investments expanding, the region’s M&A ecosystem appears to be entering a new phase of maturity.

“Resilient capital flows and strategic repositioning are driving the Middle East’s 2025 M&A performance. With deal values surging even as global activity remains muted, the region stands out as a relative outperformer. Energy and industrials dominate, but rising activity in TMT and renewables signals a gradual shift in portfolio composition. For global investors, the region remains a market of scale and liquidity; for local champions, it is a launching pad for global expansion,” said Samuele Bellani, BCG’s Managing Director and Partner in Dubai.

As global dealmakers wait for clearer macro signals, the Middle East’s combination of capital availability, strategic clarity, and diversification urgency may continue to make it one of the world’s most active and resilient M&A markets heading into 2026.

Somshankar Bandyopadhyay

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somshankar@khaleejtimes.com

Somshankar Bandyopadhyay is a News Editor with close to three decades of experience. Currently, he manages the business section, ensuring that the top economic and business news of the day reaches its readers.