Announced M&A transactions in the MENA region increased 149% y-o-y in 1H 2025 to USD 115.5 bn, their highest level on record since 1980, Zawya reports, citing LSEG data. The number — including intended, pending, and completed agreements — also grew 16% y-o-y to a three-year peak.

By the numbers: Inbound M&A, where MENA companies were the targets, amounted to USD 48 bn, representing an 18% y-o-y increase. Meanwhile, outbound M&A from the region set an all-time 1H record at USD 64.5 bn, an 8% y-o-y increase.

Emirati firms were the most targeted, with inbound agreements to the UAE totaling USD 39.8 bn, followed by Saudi Arabia at USD 3.5 bn, Kuwait at USD 1.7 bn, Egypt at USD 1.3 bn, and Bahrain at USD 700 mn.

The materials sector came in the lead with 67% of the total agreements value, largely due to the pending USD 30.9 bn merger between UAE-based Borouge and Austria's Borealis. Meanwhile, the financial sector saw the highest number of transactions, which were valued at a total of USD 3.3 bn.

Behind the leap: Growth in the M&A activity is attributed to strong investor confidence, strategic diversification efforts, and robust sovereign capital, Zubair Mir, senior partner at Norton Rose Fulbright, told Zawya. The region’s ongoing regulatory reforms and initiatives to attract foreign direct investment are also fostering a favorable environment for both inbound and outbound transactions, Mir added.

Sectors to watch: M&A activity is expected to pick up in the second half of the year, particularly in the energy, clean energy, digital infrastructure, healthcare innovation, and technology sectors, Mir expects.

The leading advisors: Rothschild & Co topped the financial advisor league table for announced M&As in the first half of the year, advising on agreements worth a combined USD 76.1 bn and capturing a 65.9% market share. Goldman Sachs followed in second place with USD 75.6 bn, and Citi came third with USD 48.4 bn. Morgan Stanley, which held the top spot in 1H 2024, dropped to seventh place.

ALSO FROM PLANET FINANCE-

  • US inflation is projected to hit 3% a year from now, the same level it was before President Donald Trump began taking trade protectionist measures, CNBC reports, citing a New York Federal Reserve survey.

MARKETS THIS MORNING-

Asian markets are still trading mixed this morning, with Japan’s Nikkei down 0.5% while the Shanghai Composite is up 0.3%. Meanwhile, Wall Street futures are slightly inching down following S&P’s first gains in three sessions.

TASI

11,278

-0.1% (YTD: -6.3%)

MSCI Tadawul 30

1,445

-0.3% (YTD: -4.2%)

NomuC

27,448

+0.4% (YTD: -12.8%)

USD : SAR (SAMA)

USD 3.75 Sell

USD 3.75 Buy

Interest rates

5.0% repo

4.5% reverse repo

EGX30

33,152

+0.4% (YTD: +11.5%)

ADX

10,049

+0.4% (YTD: +6.7%)

DFM

5,834

+0.7% (YTD: +13.1%)

S&P 500

6,263

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FTSE 100

8,867

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Euro Stoxx 50

5,446

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Brent crude

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Natural gas (Nymex)

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Gold

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BTC

USD 111,080

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Sukuk/bond market index

910.94

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S&P MENA Bond & Sukuk

145.61

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VIX (Volatility Index)

15.94

-5.2% (YTD: -8.1%)

THE CLOSING BELL: TADAWUL-

The TASI fell 0.1% yesterday on turnover of SAR 5.5 bn. The index is down 6.3% YTD.

In the green: Masar (+8.6%), Alakaria (+7.7%) and Retal (+6.6%).

In the red: Alinma Retail Reit (-3.5%), 2P (-3.2%) and Saudi Cable (-3.2%).

THE CLOSING BELL: NOMU-

The NomuC rose 0.4% yesterday on turnover of SAR 26.3 mn. The index is down 12.8% YTD.

In the green: WSM (+29.9%), Mayar (+16.4%) and Fesh Fash (+14.0%).

In the red: Leaf (-6.5%), Knowledge Tower (-6.5%) and iOud (-5.7%).

CORPORATE ACTIONS-

Middle East Health Care Company (Saudi German Health) will distribute SAR 46.02 mn in dividends for FY 2024 at SAR 0.50 apiece starting 23 July, according to a disclosure to Tadawul (pdf).

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