M&A activity across the MENA region jumped in 2025, with value climbing 15% to USD 106.1 bn across 884 transactions, according to a report from EY. While domestic consolidation remained healthy, the real engine was cross-border activity, which accounted for 61% of value. The UAE and Saudi Arabia continue to dominate the landscape, capturing 59% of all regional investment and 66% of total investor activity.

Why it matters: We are seeing a shift from defensive domestic merging toward aggressive, strategic international expansion. Domestic transactions accounted for 46% of total volume at USD 41.6 bn. Outbound capital is no longer just parked in safe havens — 64% of outbound value was driven by government-related entities and sovereign wealth funds like Adia, Mubadala, and PIF, which are now using M&A to buy into global supply chains.

The sector play: Technology and diversified industrial products led the way, making up 38% of total volume. Meanwhile, the banking sector is aggressively eyeing the India-MENA corridor, evidenced by Emirates NBD’s USD 4.4 bn play for RBL Bank.

What’s next: Expect the surgical use of M&A to continue as companies look to acquire AI and tech capabilities to offset global trade uncertainties. The UAE remains the primary entry point for foreign capital, accounting for a massive 92% of total inbound value into the region.

MARKETS THIS MORNING-

Asia-Pacific markets are mixed in early trading this morning, with most of them reopening after taking yesterday off in observance of the Lunar New Year. Over on Wall Street, futures suggest that markets are in for another volatile trading day, despite hopes that the tech selloff will soon be over.

ADX

10,624

0.0% (YTD: +6.3%)

DFM

6,684

-0.3% (YTD: +10.5%)

Nasdaq Dubai UAE20

5,525

-0.2% (YTD: +13.0%)

USD : AED CBUAE

Buy 3.67

Sell 3.67

EIBOR

3.4% o/n

3.7% 1 yr

TASI

11,098

-0.8% (YTD: +5.8%)

EGX30

51,834

+0.7% (YTD: +23.9%)

S&P 500

6,843

+0.1% (YTD: 0.0%)

FTSE 100

10,556

+0.8% (YTD: +6.3%)

Euro Stoxx 50

6,022

+0.7% (YTD: +4.0%)

Brent crude

USD 67.39

-1.8%

Natural gas (Nymex)

USD 3.05

-6.1%

Gold

USD 4,899

-2.9%

BTC

USD 67,652

-1.8% (YTD: -22.8%)

Chimera JP Morgan UAE Bond UCITS ETF

AED 3.76

+0.3% (YTD: +0.3%)

S&P MENA Bond & Sukuk

153.40

+0.1% (YTD: +1.0%)

VIX (Volatility Index)

20.45

-3.4% (YTD: +48.0%)

THE CLOSING BELL-

The DFM fell 0.3% yesterday on turnover of AED 764.9 mn. The index is up 10.5% YTD.

In the green: Sukoon Ins. (+14.6%), United Foods Company (+2.4%), and Watania International Holding (+2.1%).

In the red: Al Firdous Holdings (-4.7%), Dubai Islamic Ins. and Reins. Co. (-4.0%), and Islamic Arab Ins. Company (-3.6%).

Over on the ADX, the index held flat on turnover of AED 989.1 mn. Meanwhile, Nasdaq Dubai was down 0.2%.

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