MENA sees M&As rise 23% y-o-y in 9M to USD 69.1 bn -EY

MENA logged another strong stretch of M&A activity in 9M 2025, closing 649n transactions worth USD 69.1 bn, a 23% y-o-y rise in volume and the region’s most active cross-border run in half a decade, supported by renewed investor confidence and a firmer macro backdrop, according to EY’s MENA M&A insights report. The GCC alone accounted for the bulk of M&A plays at 500 transactions valued at USD 65.9 bn.

What EY says is behind the uptick: “MENA’s improving economic outlook, expanding digital economy and strategic policy support attracted higher foreign investor interest in the first nine months of this year. The UAE maintained strong foreign direct investment (FDI) momentum, driven by its stable economy and investor-friendly policies,” Anil Menon, EY MENA head of M&A and equity capital markets leader, said.

The UAE remained the region’s M&A hub, attracting 171 inbound transactions worth USD 29 bn, more than any other one country, led by OMV and Borealis’s USD 16.5 bn acquisition of a 64% stake in Borouge, the region’s largest M&A YTD. Adnoc’s USD 6.3 bn purchase of 46.94% of Canada’s NOVA Chemicals and Saudi Aramco’s USD 3.5 bn acquisition of Peru’s Primax followed as major outbound plays.

Cross-border activity continued to drive growth, contributing 54% of the total count and 76% of total value. Outbound M&A reached 189 transactions worth USD 28.5 bn, led by the UAE and Saudi Arabia, which together accounted for 85% of total outbound value. Canada topped the list by value, while the UK was the most targeted market by volume.

Egypt and Kuwait were among the region’s top five buyers and targets, with Oman and Qatar also seeing increased dealflow. The surge in cross-border activity reflects “a growing appetite for international expansion and portfolio diversification,” EY Strategy and Transactions Leader Brad Watson said, adding that the “shift toward mid-size transactions reflects a strategic focus on high-growth, innovation-driven sectors that support long-term economic development in line with the region’s economic diversification goals.”

Inbound transactions rose 25% y-o-y in volume and 34% in value to 160 plays worth USD 23.8 bn, buoyed by Austrian investment linked to the Borouge acquisition. Chemicals and technology led sectoral activity, contributing USD 23.9 bn and USD 12.2 bn, respectively.

On the domestic front, MENA sealed 300 local M&As with a combined disclosed value of USD 16.8 bn, representing 46% of overall volume. Activity was concentrated in technology, provider care, banking, and capital markets, while mid-sized transactions dominated. Technology and consumer product industries made up 32% of the domestic transaction value and 40% of volume.

Sovereign wealth funds remained active, executing 22 transactions (17 outbound) focused on energy, logistics, and technology. UAE- and Saudi-based funds led the charge, reflecting their growing role as cross-border consolidators and long-term strategic investors.

MARKETS THIS MORNING-

Asian markets are in the red in early trading this morning extending losses triggered by concerns over elevated valuations. Japan’s Nikkei is down 4.2%, South Korea’s Kospi is down 4.0%, while the Shanghai Composite and Hang Seng are looking at more moderate losses.

THE CLOSING BELL-

The DFM fell 0.1% yesterday on turnover of AED 546.5 mn. The index is up 16.5% YTD.

In the green: Ekttitab Holding Company (+14.8%), Chimera S&P UAE Shariah ETF- Share class B - Income (+12.3%) and Al Mazaya Holding Company (+8.2%).

In the red: Dubai Ins. Co. (-8.8%), DEPA (-7.9%) and Shuaa Capital (-4.2%).

Over on the ADX, the index rose 0.3% on turnover of AED 1.2 bn. Meanwhile, Nasdaq Dubai was up 0.3%.

CORPORATE ACTIONS-

Orascom Construction completes ADGM move: Orascom Construction confirmed it has completed the transfer of its incorporation from Dubai International Financial Center to ADGM, according to a disclosure (pdf). The company had also delisted from Nasdaq Dubai and moved its shares to the Abu Dhabi Securities Exchange, where trading began on 11 September. Its secondary listing on the EGX remained unchanged.

ICYMI- This came as the company and Dutch-listed fertilizer player OCI Global — both backed by Egyptian b’naire Nassef Sawiris — plan a potential merger that would combine the two platforms into a single Abu Dhabi-based global infrastructure and investment vehicle.