Saudi M&A volume rises 4% in 1Q, defying regional slump

Saudi M&A activity held up in 1Q 2026 despite a broader regional slowdown, recording 24 transactions (up 4% y-o-y) worth USD 689 mn, according to an Ansarada Middle East report (pdf). Across MENA, however, total M&A value fell to USD 23.3 bn from USD 31.3 bn a year earlier, and volumes were down to 196 agreements from 207.

Infrastructure + tech led the market: Transportation generated the highest agreement value across the region at USD 8.2 bn from just nine transactions, pointing to continued appetite for large-scale infrastructure assets. Technology remained the busiest sector by volume, recording 68 transactions worth USD 7.3 bn, driven by continued interest in AI, fintech, and enterprise software.

The defensive sectors are still showing up: Energy and natural resources attracted USD 2.2 bn across 18 transactions, while healthcare drew USD 1.9 bn from 19 transactions and industrials generated USD 1.6 bn across 23 transactions. Communications, media, and entertainment accounted for USD 740 mn from seven transactions.

What’s keeping transactions flowing? Economic diversification programs, technology investment, cross-border expansion, and sustained capital deployment are helping sustain M&A activity across the region. Sovereign wealth funds are also providing a steady anchor, supporting dealmaking through long-term investment strategies, national transformation plans, and infrastructure priorities even as geopolitical uncertainty weighs on short-term sentiment.

Timelines stretch, conviction doesn’t: “The conflict may be reshaping [transaction] timelines, but it’s not reshaping the region’s thirst for ongoing M&A activity,” Ansarada Managing Director Justin Smith told Arab News. In Saudi Arabia, the conflict is making investors more cautious and thorough rather than deterring them altogether, Smith said. While enhanced due diligence is extending dealmaking timelines, appetite for transactions remains intact.

REMEMBER- MENA M&A activity slumped 74% y-o-y to USD 18.8 bn in 1Q, according to LSEG, as the US and Israel’s war on Iran weighed on market sentiment. Inbound M&A saw the sharpest decline, plunging 90% to a 10-year low of USD 4.6 bn, while outbound M&A fell 55% to USD 11.5 bn, its lowest level in two years.

Looking ahead, transportation and technology are expected to remain the most active sectors for dealmaking through the rest of 2026, while healthcare and industrials continue to draw strategic investors. Despite ongoing geopolitical uncertainty, the region’s M&A momentum remains intact.