The MENA region experienced a significant increase in merger and acquisition (M&A) activity in 2024, with a total of 701 deals valued at $92.3 billion. This marks a 3% rise in deal count compared to 679 deals in 2023, while the total deal value has increased by 7% from the previous year. The Gulf Cooperation Council (GCC) countries were particularly active, accounting for 580 deals worth $90 billion.

This growth in M&A activity is attributed to substantial reforms in capital markets, strategic policy changes, and enhanced efforts to attract foreign investments. Notably, cross-border deals played a crucial role, constituting 52% of the total deal volume and 74% of the overall deal value in the region.

Brad Watson, the EY MENA Strategy and Transactions Leader, highlighted the positive developments in the M&A landscape, noting the year-on-year increase in both activity and deal value. He explained that companies are actively pursuing opportunities to expand and diversify, with cross-border transactions being the primary drivers of M&A activity. The top five subsectors involved in these transactions include insurance, asset management, real estate and hospitality, power and utilities, and technology, reflecting a strong interest in innovative solutions within the MENA region.

Anil Menon, EY MENA Head of M&A and Equity Capital Markets Leader, stated that technology remained the most appealing sector for investors in 2024, accounting for 23% of total inbound and domestic deal volume. He emphasized that the region is experiencing a “productivity renaissance” driven by technology and artificial intelligence, which is expected to influence capital allocation and M&A strategies.

Sovereign wealth funds (SWFs), including the Abu Dhabi Investment Authority (ADIA) and Mubadala from the UAE, along with the Public Investment Fund (PIF) of Saudi Arabia, were key players in the region’s deal activity. Outbound deals constituted the largest share of M&A transaction value in 2024, making up 61% of the total, with 199 transactions totaling $56.6 billion. The MENA region continues to attract significant interest from foreign direct investors.