MENA M&A Surges: 649 Deals Worth $69.1 Billion

The Middle East and North Africa (MENA) region recorded a strong surge in mergers and acquisitions (M&A) activity in the first nine months of 2025, reaching 649 deals valued at US$69.1 billion, according to the latest EY MENA M&A Insights 9M 2025 report. The GCC accounted for 500 of these transactions, representing US$65.9 billion of total deal value.

Cross-border deals remained the main engine of growth, accounting for 54% of total deal volume and 76% of total value. The period marked the highest level of cross-border activity in the past five years, reflecting increasing appetite for international expansion and portfolio diversification.

UAE consolidates its position as the region’s top investment hub

The UAE remained the preferred destination for both inbound and outbound investors:

• 171 inbound deals worth US$29.0 billion

• The region’s largest M&A deal: OMV and Borealis acquiring 64% of Borouge for US$16.5 billion

• Followed by ADNOC’s acquisition of 46.94% of NOVA Chemicals for US$6.3 billion

Saudi Aramco’s US$3.5 billion acquisition of Primax S.A. added further momentum, underscoring the region’s strength in the energy and petrochemical sectors.

Outbound Activity Shows Strong Momentum

Outbound M&A transactions accounted for the largest share of total deal value, with 189 deals worth US$28.5 billion. Canada attracted the highest value, while the UK remained the preferred destination by volume.

Sovereign Wealth Funds (SWFs) continued to play a central role, executing 22 deals, mainly in technology, consumer products, and professional services.

Technology (US$12.2 billion) and chemicals (US$23.9 billion) were the top contributors to overall deal value. Domestic M&A also gained traction, with 300 deals worth US$16.8 billion, fueled by mid-sized transactions in tech, healthcare, and financial services. The robust deal momentum in 2025 signals strong investor confidence in the region’s economic trajectory. The UAE and KSA’s proactive diversification strategies continue to attract high-growth sectors and strengthen the region’s global competitiveness.

Tech Led M&A Primary Engine in the Region

Beyond headline megadeals, the latest EY report reveals a deeper trend that directly affects the e-commerce and digital economy landscape: technology-led M&A has become one of the primary engines of regional transformation.

This positions technology as the second-largest M&A sector in MENA, outpacing traditional industries and showing investors’ growing confidence in:

• e-commerce enablement technologies

• digital logistics

• AI-driven retail and CX platforms

• fintech and paytech ecosystems

• cloud, cybersecurity, and data infrastructure

These categories directly mirror the core pillars shaping the future of digital commerce across the GCC. More than half of total deal activity came from cross-border transactions, indicating that global investors view the region as a scalable digital economy hub. UAE and KSA-based technology firms were particularly active in acquiring strategic capabilities abroad, suggesting a shift toward global digital expansion strategies.

UAE emerges as the digital economy magnet

With 171 inbound deals worth US$29 billion, the UAE continues to attract:

• digital infrastructure players

• global e-commerce platforms

• cloud and data center operators

• logistics tech companies

• AI-powered enterprise solution providers

These investments reinforce the UAE’s ambition to become the region’s digital capital. The M&A momentum in technology, logistics, and consumer product sectors signals:

• Growing demand for regional fulfilment solutions

• Accelerated adoption of AI, automation, and digital retail tools

• Expansion of cross-border e-commerce corridors

• Increasing appetite for scaling GCC-based tech startups

This ecosystem shift aligns directly with the Dubai 2033 vision, which places e-commerce growth, digital trade facilitation, and AI-enabled market development at the core of the regional agenda. The 2025 M&A landscape confirms that the MENA digital economy is transitioning from accelerated growth to structural consolidation. Technology-driven acquisitions are setting the foundation for a more competitive, integrated, and innovation-led e-commerce ecosystem—placing the GCC firmly among the world’s most dynamic digital markets.