TLDR:
UAE, Saudi dominate MENA M&A market
Cross-border deals drive record growth
Focus on digital, sustainable investments
DUBAI (The Thursday Times) — The Middle East and North Africa (MENA) region has witnessed a significant surge in mergers and acquisitions (M&A) activity in 2024, with UAE and Saudi Arabia leading the way. Aided by robust economic diversification strategies and a focus on sustainable and digital-first investments, the MENA region closed 522 deals valued at $71 billion in the first nine months alone. This growth, driven by cross-border transactions and strong support from sovereign wealth funds (SWFs) in both nations, underscores the strategic evolution of the region’s investment landscape.
UAE and Saudi Arabia account for more than half of MENA’s total deal volume and an impressive 81% of M&A value, making them key investment hubs. Both countries have adopted favourable policies and developed strong infrastructure, attracting both regional and global investors. SWFs like the Abu Dhabi Investment Authority (ADIA), Mubadala, and Saudi’s Public Investment Fund (PIF) play pivotal roles, with deals focused on industries aligned with their respective Vision 2030 goals. This includes substantial investments in technology, digital transformation, and sustainable projects that aim to diversify economies away from traditional sectors.
Cross-border transactions
Cross-border M&As have become a hallmark of MENA’s 2024 deal activity, comprising over half of the total volume and nearly three-quarters of the value. Investors are increasingly looking beyond regional borders, expanding into new markets and sectors. This trend reflects the broader liberalisation of MENA’s investment policies and a growing appetite for global partnerships, especially in key areas such as technology and energy.
Domestic M&A has also shown resilience, particularly within the GCC. Government-related entities (GREs) have been central to this domestic growth, spearheading initiatives in sectors like oil and gas, mining, and renewable energy. This balance of domestic and cross-border transactions has solidified MENA’s position as a global investment hub.
Sectoral diversity
The technology, oil and gas, and insurance sectors have been at the forefront of MENA’s M&A landscape. High-profile transactions, such as Mubadala’s participation in the $12.4 billion acquisition of Truist Insurance Holdings and Saudi Aramco’s $8.9 billion deal for a stake in Rabigh Refining, highlight a commitment to sectoral diversification. Technology continues to gain traction, with investments in artificial intelligence and consumer tech reflecting MENA’s drive towards digital innovation and sustainable growth.
MENA’s role in global FDI flows has grown as well, with inbound M&A deals seeing a notable rise. The United States and the United Kingdom lead in FDI sources, particularly in technology and professional services. Outbound investments are equally robust, with MENA-based entities targeting Asia and North America, particularly in insurance and real estate sectors.
