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UAE M&A activity resilient despite regional uncertainty, Ansarada report finds
Q1 2026 deal volumes softened, but long-term investor confidence, sovereign-backed investment and cross-border activity continue to underpin the UAE and wider Middle East M&A market
- PUBLISHED: Thu 6 Aug 2026, 12:23 PM
Ansarada, the AI virtual data room, has released its latest Middle East M&A Market Analysis Q1 2026 report, finding that the UAE's mergers and acquisitions (M&A) market continues to demonstrate resilience, retaining long-term investor confidence despite ongoing geopolitical uncertainty across the region.
According to the report, the Middle East recorded sustained M&A activity in Q1 2026, with 196 announced deals valued at a combined US$23.3 billion, compared to 207 deals worth $31.3 billion during the same period in 2025.
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The Middle East has long operated against a backdrop of uncertainty. From regional tensions and shifts in oil markets to a global pandemic that grounded flights worldwide, the region has faced repeated tests. Yet each period of disruption is often met with the same assumption: that capital will pull back, dealmaking will pause, and investors will look elsewhere for stability.
Justin Smith, Managing Director at Ansarada, said: "Our 2026 Middle East Q1 M&A Market Analysis shows that the first quarter of the year tells a different story. We are seeing a deals market that is holding steady, which speaks directly to the enduring confidence in the region despite regional unrest. The Ansarada Deal platform has spent more than two decades observing how transactions behave under pressure. What we're seeing is increasing caution and extended deal timelines, rather than a retreat altogether."
According to Ansarada, the most important thing to understand about the current environment is that sentiment has not shifted. Rather, timelines are being extended, with more due diligence, greater preparation and additional rounds of negotiation before deals reach completion.
The businesses it works with continue to point to significant dry powder waiting on the sidelines for the right opportunity. That capital will move when conviction returns. In the meantime, transactions already underway continue to progress, often at a more measured pace and with greater scrutiny, but progress nonetheless.
Gulf deal flow is not driven by short-term sentiment. It is anchored by sovereign-backed investment strategies, national transformation agendas and a long pipeline of infrastructure priorities that continue to move forward regardless of external conditions.
Sovereign wealth funds are central to this. They act as an anchor for the region, deploying capital at scale and supporting activity in sectors that matter most to long-term national development. This also gives international investors the confidence to continue investing, knowing that the region's largest institutional investors remain committed.
The GCC has been here before. The way it held its nerve through Covid-19 is a reminder that economic resilience in the region is well established.
The UAE recorded 33 deals worth $2.2 billion in Q1 2026, down from 52 deals during the same period last year. A 37 per cent decline in deal volume may appear significant in isolation, but it reflects a recalibration of how and when capital is deployed rather than a weakening of the UAE's position as the region's leading cross-border investment hub.
At a sector level, activity remained concentrated in industries aligned with the region's long-term development priorities. Transportation led by value, recording $8.2 billion across nine transactions. Healthcare, energy and natural resources, and industrials also recorded steady deal flow, reflecting continued investment in healthcare capacity, energy infrastructure and domestic manufacturing.
While the outlook remains subject to market conditions, Ansarada expects deal activity to remain resilient through the remainder of the year. Middle Eastern acquirers continue to pursue partnerships and outbound acquisitions, particularly across Africa, while global investors remain attracted to the region's long-term growth prospects.
Although prolonged regional tensions may continue to extend transaction timelines, history suggests that periods of uncertainty are often followed by renewed deal activity once conditions stabilise. The deals do not disappear; rather, they remain in the pipeline for longer.
Dealmakers in the Middle East understand this better than most. They are not waiting for certainty but are preparing for the next opportunity. And based on the evidence from the first quarter, there is still plenty of activity to come.