Sovereign wealth funds (SWFs) are pushing global M&A activity to new highs, with volumes already surpassing the USD 3.5 tn mark this year, up 34% y-o-y, according to data compiled by Bloomberg. This puts us on track for the best M&A year since 2021, the business news information service said.

(** Tap or click the headline above to read this story with all of the links to our background and outside sources.)

More than USD 1.3 tn in transactions were logged in 3Q, driven by a series of high-value mega plays. Much of that momentum came from our part of the world, where MENA-involved M&As brought in USD 157.3 bn in 9M across 963 transactions, up 166% y-o-y, driven by the UAE (USD 45 bn) and Saudi Arabia (USD 5.6 bn), according to LSEG data.

ICYMI- Some of the biggest plays YTD were SWF-backed: The Public Investment Fund (PIF) led a USD 55bn leveraged buyout of video-game maker Electronic Arts last month, marking the largest global transaction so far this year. Mubadala’s AI arm, MGX, followed with a USD 40 bn partnership with BlackRock to acquire Texas-based Aligned Data Centers. Rounding out the list, Abu Dhabi’s ADIA and Singapore’s GIC most recently took minority stakes in Blackstone and TPG’s USD 18.3 bn acquisition of medical-device maker Hologic.

SWFs also ❤️ AI: Abu Dhabi’s ADIA backed Thoma Bravo’s USD 12 bn takeover of HR software firmDayforce in August, while Mubadala’s MGX invested in OpenAI, xAI, and plans to join the Stargate venture. Meanwhile, Singapore’s GIC and Qatar’s QIA invested in rival AI firm Anthropic.

Cutting out the middle-men: Gulf SWFs are increasingly taking matters into their own hands, expanding in-house investment teams to execute transactions directly rather than relying on Wall Street intermediaries, Bloomberg wrote. The shift gives them greater control, lower fees, and access to co-investment rights alongside major private equity players.

The award for the most active sector for M&A in the region goes to: materials, which remained the top-performing sector in MENA M&A in terms of value, contributing USD 32.6 bn, or 57% of total regional transaction value. Momentum came largely from heavyweight corporates rather than sovereign funds, including ADNOC and OMV’s planned merger of Borouge and Borealis into a USD 60 bn chemicals giant, which also includes a USD 13.4 bn acquisition of NOVA Chemicals still pending completion. It was followed by energy and financials at USD 4.6 bn each.

Outlook is rosy for next year: Bankers expect the M&A rally to carry into 2026 as sovereign funds and corporates continue to deploy record dry powder, with both already scouting new targets. Goldman Sachs sees dealmaking momentum accelerating into year-end, with next year potentially setting a new global record.

TASI

11,612

+0.2% (YTD: -3.5%)

MSCI Tadawul 30

1,513

+0.2% (YTD: +0.3%)

NomuC

25,049

+0.1% (YTD: -20.4%)

USD : SAR (SAMA)

USD 3.75 Sell

USD 3.75 Buy

Interest rates

4.75% repo

4.25% reverse repo

EGX30

37,687

+0.3% (YTD: +26.7%)

ADX

10,202

+0.1% (YTD: +8.3%)

DFM

6,066

+0.8% (YTD: +17.6%)

S&P 500

6,792

+0.8% (YTD: +15.5%)

FTSE 100

9,646

+0.7% (YTD: +18.0%)

Euro Stoxx 50

5,674

+0.1%(YTD: +15.9%)

Brent crude

USD 65.94

-0.1%

Natural gas (Nymex)

USD 3.30

-1.2%

Gold

USD 4,137

-0.2%

BTC

USD 111,854

+0.9% (YTD: +19.6%)

Sukuk/bond market index

917.76

+0.3% (YTD: +1.7%)

S&P MENA Bond & Sukuk

152.49

0.0% (YTD: +9.0%)

VIX (Volatility Index)

16.37

-5.4% (YTD: -5.7%)

THE CLOSING BELL: TADAWUL-

The TASI rose 0.2% on Thursday on turnover of SAR 4.9 bn. The index is down 3.5% YTD.

In the green: Teco (+8.2%), Alkhaleej TRNG (+5.7%) and Ayyan (+5.3%).

In the red: Jamjoom Pharma (-4.3%), Chubb (-3.1%) and Saico (-2.4%).

THE CLOSING BELL: NOMU-

The NomuC rose 0.1% on Thursday on turnover of SAR 30.4 mn. The index is down 20.4% YTD.

In the green: HKC (+9.9%), Alqemam (+7.1%) and Naas Petrol (+6.6%).

In the red: Wajd Life (-7.9%), NBM (-7.6%) and Balsm Medical (-6.4%).

CORPORATE ACTIONS-

Naseej International Trading Company’s board proposed a SAR 163.5 mn capital increase through a rights issuance, it said in a Tadawul disclosure on Thursday. The capital hike will fund the company’s growth strategy and settle financial obligations. Naseej has not yet appointed a financial advisor for the offering, which is still pending shareholder and regulatory approvals.

Theeb Rent a Car Company received Capital Market Authority approval to boost its capital by 53.4% to SAR 659.7 mn via a bonus share issuance, according to a Tadawul statement. The SAR 229.7 mn capital increase will be funded from the company’s statutory reserve (SAR 68 mn) and retained earnings (SAR 161.7 mn), with shareholders receiving one bonus share for every two existing shares.

Tags: