Middle Eastern mergers and acquisitions (M&A) demonstrated remarkable resilience and strategic focus in 2025, with deal values surging 260 per cent to $53bn in the first nine months of the year compared to the same period in 2024.
According to the 22nd Annual Global M&A Report 2025 released by Boston Consulting Group (BCG), the performance has been driven by a select group of experienced dealmakers making disciplined, strategic investments amid continued global market volatility.
While the broader Africa, Middle East, and Central Asia region recorded a 6 per cent increase in aggregate deal value, overall activity remains below the 10-year average.
However, BCG’s M&A Sentiment Index, a forward-looking indicator, shows increasingly positive sentiment across all sectors, with confidence reaching its highest levels in technology and energy.
“The Middle East’s M&A landscape in 2025 reflects a sophisticated approach to capital deployment, where strategic diversification meets digital ambition,” said Samuele Bellani, MD and partner at BCG. “We’re witnessing experienced dealmakers making highly disciplined investments that simultaneously strengthen traditional energy capabilities while building new pillars of economic growth in technology and industrial services”.
Energy and industrial consolidation
Energy transactions remained the cornerstone of regional activity as state-backed entities pursued aggressive domestic consolidation and international expansion.
Key deals included a landmark $13.4bn acquisition reinforcing the UAE’s international expansion in the chemicals sector, and a $693m purchase in power generation and utilities, exemplifying sector consolidation.
The industrial sector also emerged as a central pillar of economic diversification. A $925m acquisition highlighted the accelerating consolidation of critical supply chain infrastructure, reflecting a long-term initiative to establish the Middle East as a premier global logistics hub.
Digital and tech transformation
The technology, media, and telecommunications (TMT) sector gained unprecedented momentum, signalling a fundamental shift in investment priorities. Major transactions included a transformative $3.5bn digital entertainment acquisition, positioning the region as a global leader in gaming, and a $855m acquisition that expanded Middle Eastern telecommunications influence into European markets.
Bellani noted that sovereign wealth funds in the region are acting as “architects of a new economic paradigm” by balancing traditional energy strengths with cutting-edge technological capabilities.
Outlook for 2026
As 2025 concludes, the Middle East has distinguished itself as one of the world’s most strategically focused M&A markets. Sovereign wealth funds continue to provide a deep pool of liquidity capable of sustaining deal flow regardless of global economic cycles.
The region maintains a unique dual advantage: supporting sustainable growth through foreign interest in healthcare and financial services, while simultaneously accelerating government-led consolidation across industrial and technology sectors to reduce historical reliance on hydrocarbon revenues.
