The UAE cemented its place because the Center East and North Africa’s (Mena) dominant mergers and acquisitions hub in 2025, spearheading a pointy rise in regional deal exercise that noticed Mena transactions climb to their highest stage in years.
New information from EY’s Mena M&A Insights 2025 report exhibits the area recorded 884 offers final yr — up 26 per cent from 701 in 2024 — whereas deal worth rose 15 per cent to $106.1 billion.
The UAE was on the coronary heart of this momentum. It not solely attracted the area’s largest transactions but additionally led home dealmaking, with 131 native offers — greater than every other Mena nation. It additionally accounted for almost half of all inbound funding quantity and a unprecedented 92 per cent of whole inbound worth, underscoring its magnetism for world buyers.
In response to EY, the broader Mena area’s resurgence was fueled by enabling laws, financial diversification efforts and what the agency described as “disciplined deal-making.” The Gulf Cooperation Council nations contributed 685 of the entire offers, valued at $102.1 billion, reflecting their heavy weight within the regional financial system.
“The Mena M&A market remained resilient in 2025, with deal volume as well as value rising significantly,” stated Brad Watson, EY‑Parthenon Mena Chief. “Cross-border transactions were the main driver of this upward curve, highlighting the increasing appetite of companies for international expansion and diversification.”
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Cross-border M&A continued to dominate the panorama, accounting for 54 per cent of the area’s deal depend and 61 per cent of worth. Sovereign wealth funds once more performed a central position. Entities similar to Abu Dhabi Funding Authority, Mubadala and Saudi Arabia’s Public Funding Fund have been among the many most energetic, offering substantial capital for acquisitions each inside and past the area.
The UAE additionally hosted the area’s greatest offers of the yr. The most important was Austrian power group OMV’s $16.5 billion acquisition, alongside subsidiary Borealis, of a 64 per cent stake in petrochemicals firm Borouge. It was adopted by L’IMAD Holding Firm’s $13.8 billion buy of an 84.76 per cent stake in Modon Holding. The third-largest transaction noticed Multiply Group buying 2PointZero and Ghitha Holding in a full share swap transaction, forming 2PointZero Group, a diversified funding powerhouse with Dh134 billion in belongings.
All three offers underline the UAE’s depth in industrial, funding and technology-linked sectors.
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Inbound dealmaking surged as buyers guess on the area’s evolving financial panorama. Inbound quantity rose 37 per cent to 223 offers, whereas worth greater than doubled to $25.4 billion from $11.4 billion in 2024. Austria was the standout investor, chargeable for 65 per cent of inbound worth in simply three chemical-sector transactions.
Outbound offers have been equally sturdy, climbing 29 per cent yr on yr to 256 transactions price $39.2 billion. Authorities-related entities, notably these from the UAE and Saudi Arabia, remained dominant and accounted for 64 per cent of outbound worth. Canada attracted essentially the most outbound funding by worth, at $7.1 billion, whereas america remained the highest vacation spot by deal depend.
Sectorally, expertise and diversified industrial merchandise continued to be the area’s development engines, contributing 38 per cent of total deal quantity. Actual property — together with hospitality and leisure — and asset administration accounted for greater than half the disclosed worth of home offers, signalling sturdy investor urge for food for long-term belongings.
“2025 was a remarkable show of Mena M&A market resilience,” stated Anil Menon, EY‑Parthenon Mena Head of M&A and Fairness Capital Markets. “The significant increase in M&A market activity was in spite of regional political unrest, significant global trade policy uncertainties and a once-in-a-generation tech transformation led by AI.”
Past the UAE, Saudi Arabia additionally noticed important exercise, and collectively the 2 nations captured 59 per cent of whole Mena investments. Egypt, Kuwait, Oman and Qatar all appeared among the many prime goal and bidder nations, signalling broader regional diversification.
With its secure regulatory atmosphere, increasing commerce volumes and diversified financial system, the UAE ended 2025 as Mena’s most engaging M&A vacation spot — each for international and home buyers — underscoring its rising standing as one of many world’s rising FDI powerhouses.
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