MENA dealmaking surged in 1Q, with M&As jumping 66% y-o-y in value to USD 46 bn across 225 transactions (up 31% y-o-y) driven by “regulatory reforms, policy shift and a favorable macroeconomic outlook,” EY MENA Leader Brad Watson said in the firm’s latest M&A Insights report. The UAE dominated the region’s M&A league table as the top target country in 1Q with 63 transactions totaling USD 20.3 bn, followed by Kuwait (USD 2.3 bn).

Cross-border activity hit a five-year high in 1Q, driving the bulk of growth. M&As with companies based in different countries accounted for 81% of the region’s total transaction value and 52% of volume across 117 plays in the first three months of the year.

The value of domestic transactions hit USD 8.7 bn, up 5x y-o-y. Transactions in the technology sector accounted for 37% of total domestic M&As value, and 27% of their volume. G42’s USD 2.2 bn acquisition of a 40% stake in Khazna Data Centers was the region’s largest domestic M&A last quarter.

The quarter saw more M&A capital outflows than inflows. Outbound M&A activity hit USD 19.7 bn, representing 43% of total transaction value in the region. Saudi Arabia and the UAE alone made up 77% of outbound activity by volume and 94% by value. The UK was the region’s top target country by dealcount in 1Q, while Canada and Peru led in outbound value, thanks to Adnoc and OMV’s joint acquisition of Canada’s Nova Chemicals for USD 6.3 bn.

Inbound M&A value clocked in at USD 17.6 bn last quarter, representing a 7x y-o-y increase.The UAE captured the bulk of inbound funds into the region, accounting for 53% of all inbound transactions and nearly all of the total value (99%) fueled by the USD 60 bn merger of Adnoc and Austrian energy giant OMV’s polyolefin businesses. Austria topped the investor chart, making up 94% of the UAE’s total inbound value.

The MENA M&A pipeline looks strong for the rest of 2025, with more action expected in consumer, tech, and energy. And with AI set to shake up how value is created, it’s expected that more investment will flow into the tech space, said Anil Menon, EY’s head of M&A and Equity Capital Markets.

EGX30

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USD (CBE)

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THE CLOSING BELL-

The EGX30 rose 0.6% at Thursday’s close on turnover of EGP 5.2 bn (9.8% above the 90-day average). International investors were the sole net buyers. The index is up 9.9% YTD.

In the green: Palm Hills Development (+4.6%), Beltone Holding (+3.7%), and Eastern Company (+2.7%).

In the red: Telecom Egypt (-2.3%), Emaar Misr (-2.3%), and Edita (-1.8%).

CORPORATE ACTIONS-

EGX-listed Egyptian Modern Education Systems appointed Osoul Arabia for Investment as an independent financial advisor for its potential acquisition of a 90% stake in Al Arafa for Investment and Consultancies, replacing Elite Financial Consulting due to the latter’s delay in preparing the fair value study and determining the swap ratio for both companies, according to a disclosure (pdf).

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