Egypt saw the biggest jump in M&A activity across the Middle East last year, with the number of transactions rising almost 23.7% y-o-y, according to a PwC blog post. A total of 120 transactions were logged in 2024, up from 97 the year before. While that’s still below the highs of 2022, the recovery is real — and it’s being driven by a mix of fresh reforms, growing investor interest, and Gulf money flowing into the country.

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Some big transactions helped shape the story. In hospitality, TMG’s subsidiary IconInvestments snapped up a 51% stake in Legacy Hospitality in an USD 800 mn transaction. Over in fintech, MNT-Halan pulled in USD 157.5 mn from private investors. In financial services, B Investments snagged a 70%stake in Orascom Financial Holding for just under USD 50 mn. The report also took note of the central bank’s IPO of United Bank last year as part of the government’s privatization program.

There have been serious efforts to make Egypt’s regulatory environment more investor-friendly. The report cites the government’s pre-merger control regime, which was rolled out last year. The move “introduced greater clarity and predictability for investors, streamlined approvals, set clear thresholds for notification and ensured compliance with global best practices,” the report read.

REFRESHER- In April 2024, cabinet approved amendments to the executive regulations of the Competition Act that set the wheels in motion on the long-awaited pre-merger control regime, signing off on bringing the regime into force the following June. Under this regime, the Egyptian Competition Authority must approve any transaction resulting in an economic concentration — including mergers, acquisitions, and full-function joint ventures — that meets certain turnover thresholds.

M&A activity was also spurred by new tax incentives introduced in 2H 2024 for high-growth sectors — including tech, renewables, and manufacturing — the report notes. In September, the government introduced a new tax incentive package aimed at easing the burden on taxpayers and building greater trust in the tax system. These measures included launching a central clearing system, simplifying tax returns, and capping late payment penalties.

Another major driver? Gulf money — and lots of it. The UAE’s ADQ led a USD 24 bntransaction to develop land in Ras El Hekma, which also unlocked USD 11 bn in Emirati deposits held by the Central Bank of Egypt. Saudi’s PIF in September followed up with a commitment to invest USD 5 bn, and Qatar Energy snapped a 23% stake in a Chevron-run gas block in North El Dabaa Block in November. All of these inflows point to rising Gulf confidence in Egypt’s long-term prospects.

And the country is poised to sustain its M&A growth momentum in 2025 as transactions led by the private sector continue to rise, the report reads. The investment climate is expected to further improve, with potential investments emerging in finance, infrastructure, tourism and digital transformation.

ETHMAR INT’L BUYS INTO ARQAAM CAPITAL-

Ethmar invests in Arqaam: Abu Dhabi’s Ethmar International Holding made an undisclosed investment in Dubai-based investment bank Arqaam Capital, according to a statement (pdf). Arqaam also has offices in Egypt, Saudi Arabia, and Lebanon.

The fresh capital injection will fuel Arqaam’s growth strategy across MENA, the statement said. The firm is also looking to grow its share of the equity and debt capital markets, corporate brokerage, and investor relations segments.

Arqaam in Egypt: The firm had advised on a number of acquisitions and was one of the top 20 firms on the EGX brokerage league table in April with a 1.4% market share. At the moment, Arqaam is one of two firms leading real estate investment firm Bonyan’s upcoming IPO, slated for sometime this year.

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