Merger and acquisition activities in the Middle East and North Africa (MENA) saw a 7% increase in 2024, reaching a total deal value of $92.3 billion, largely fueled by the contributions of Saudi Arabia and the UAE. According to a report by professional services network EY, the region recorded 701 deals, which is a 3% rise from the 679 deals reported in 2023.

The analysis highlighted that Saudi Arabia and the UAE together accounted for 318 deals valued at $29.6 billion. These two nations emerged as significant bidders in the M&A landscape, indicating their active participation and investment in this sector. EY noted that the growth in M&A activities was primarily driven by reforms in capital markets across MENA, along with strategic policy changes aimed at attracting international investments.

In a related statement, Brad Watson, the strategy and transactions leader at EY MENA, mentioned that 2024 experienced positive developments in the M&A space, reflecting a year-on-year increase in both activity and overall deal value. Companies were actively seeking opportunities to grow and diversify, with cross-border deals becoming a major driver of volume and value.

The Gulf Cooperation Council (GCC) region was particularly prominent, accounting for the majority of M&A transactions within MENA, totaling 580 deals, which represents 52% of the volume and 74% of the total value. Notably, the UAE recorded the largest M&A deal in 2024—the acquisition of Truist Insurance by Clayton Dubilier & Rice, Stone Point Capital, and Mubadala Investment for $12.4 billion.

Saudi Aramco made headlines with its significant acquisition of a 22.5% stake in Rabigh Refining and Petrochemical Co. from Tokyo-based Sumitomo Chemical for $8.9 billion, marking the second-largest deal of the year. The third-largest transaction involved a consortium that included PAG, Mubadala, and the Abu Dhabi Investment Authority acquiring a 60% stake in the Chinese shopping mall company Zhuhai Wanda Commercial Management Group for $8.3 billion.

Outbound deals constituted the largest share of M&A transaction value in 2024, making up 61% of the total consolidated deal value with 199 transactions amounting to $56.6 billion. The technology and consumer products sectors emerged as the leading contributors to overall deal volume, each demonstrating a 10% year-on-year increase.

The report also identified the United States as the largest foreign acquirer in terms of volume and value, with 48 transactions totaling $4.6 billion. Watson emphasized that the top five subsectors in the M&A landscape included insurance, asset management, real estate, hospitality, power and utilities, and technology, showcasing the MENA region’s innovative potential.

Domestic M&A activities accounted for 48% of the total deal volume in 2024, with 339 deals valued at $24.4 billion. The technology sector was particularly attractive to investors, representing 23% of total inbound and domestic deal volume, as the region continues to experience a productivity renaissance driven by technology and AI.