The value of M&A transactions in the Middle East hit USD 29 bn in 2024, up 52% from the previous year, 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&As with a value of over USD 1 bn, such as those by corporate buyers and private equity add-on acquisitions. It does not count acquisitions by financial sponsors or SPACs, or venture capital transactions. 

Saudi Arabia and the UAE topped the M&A league table, with 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 acquisition of Petro Rabigh for USD 8.9 bn. Meanwhile, outbound investments rose 9% to USD 33 bn, as regional players looked beyond domestic markets.

Investor-friendly regulations in the UAE have led to a more than twofold increase in cross-regional strategic investments in UAE assets, the report reads.

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

All eyes on JVs: Local companies are also increasingly focused on joint ventures, especially in sectors like renewables. Saudi Arabia’s sovereign wealth fund (better known as the PIF) launched three JVs in solar and wind projects last year, the report said.

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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