M&A transactions’ value in the Middle East rose 52% y-o-y in 2024 to USD 29 bn, driven by an uptick in activity from sovereign wealth funds and state-backed firms, according to Bain’s global M&A report (pdf). The report focuses on strategic M&A transactions over USD 1 bn in value, including those by corporate buyers  and private equity add-on acquisitions - while excluding financial sponsors, SPACs, and venture capital transactions.

Saudi Arabia and the UAE topped the M&A league table, with their energy transactions accounting for nearly 80% of the region’s total transaction value, according to a press release. The largest M&A transaction of the year was Aramco's USD 8.9 bn acquisition of Petro Rabigh. Meanwhile, outbound investments rose 9% to USD 33 bn as regional players looked beyond domestic markets.

All eyes on JVs: Local companies are also increasingly focused on joint ventures, especially in sectors like renewables. The Saudi PIF launched three JVs in solar and wind projects last year, the report said.

Looking more towards Europe: Middle Eastern investors significantly increased their investments in Europe last year, with strategic transaction value for European targets rising 120% y-o-y in 2024, while investments in the Asia-Pacific region saw a sharp decline of 78%.

What they said: “With continued support from government entities and strong cross-regional investments, particularly in Europe, the Middle East is well-positioned to continue driving high-value strategic acquisitions, especially in energy transition and technology sectors,” said Gregory Garnier, Partner at Bain & Company and head of the Private Equity and Sovereign Wealth Fund practice in the Middle East.

We have more on the state of play for M&A globally last year and looking ahead into 2025 in this morning’s Planet Finance, below.

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