Middle East mergers and acquisitions rebounded strongly in 2025, with deal values jumping 260 percent to reach $53 billion in the first nine months of the year. The surge comes after activity briefly dipped earlier in the year and reinforces the region’s position as one of the most resilient global dealmaking markets.
According to Boston Consulting Group’s 22nd Annual Global M&A Report, the recovery has been driven less by volume and more by disciplined capital deployment. A smaller group of experienced investors is leading activity, focusing on strategic fit and long-term value rather than scale alone.
Confidence returns across the region
Across Africa, the Middle East and Central Asia, aggregate deal value rose 6 percent year on year, even as transaction volumes remained below the 10-year average. Despite this, sentiment has shifted decisively. BCG’s M&A Sentiment Index shows rising confidence across all sectors, with energy and technology recording the strongest improvements.
The renewed momentum reflects a more sophisticated approach to mergers and acquisitions. Investors are increasingly aligning transactions with national diversification agendas and digital transformation goals rather than pursuing opportunistic deals.
Energy remains the foundation of dealmaking
Energy continued to anchor M&A activity across the Middle East in 2025. State-backed entities led domestic consolidation while also expanding internationally through selective acquisitions.
Major transactions included a $13.4 billion chemicals deal highlighting the UAE’s outward expansion strategy, alongside a $693 million power generation and utilities transaction that underlined ongoing sector consolidation. Together, these deals strengthened balance sheets while supporting a gradual shift toward cleaner and more efficient energy systems.
Rather than stepping away from hydrocarbons, national champions are using M&A to reposition themselves for the global energy transition.
Industry emerges as a key diversification pillar
Beyond energy, industrial assets moved firmly into focus. Governments and sovereign investors pursued acquisitions aimed at strengthening supply chains, logistics and manufacturing capacity.
A $925 million industrial acquisition reflected a broader strategy to reduce dependence on oil and gas revenues and build long-term competitiveness across transport, trade and industrial services. These investments are designed to create structural resilience rather than generate short-term financial gains.
Technology dealmaking accelerates sharply
Technology, media and telecommunications emerged as the fastest-growing segment for M&A in 2025. A $3.5 billion digital entertainment transaction, one of the largest globally this year, signalled ambitions to build scale in gaming and content platforms.
In parallel, an $855 million telecoms acquisition extended Middle Eastern influence into European markets, highlighting the region’s growing appetite for cross-border digital infrastructure and connectivity assets.
These deals reflect a fundamental shift in capital allocation, with investors targeting platforms that support national digital transformation and long-term economic diversification.
A more strategic M&A model takes shape
Sovereign wealth funds continue to play a central role, not only as sources of capital but as architects of a new economic model. Their investment strategies increasingly balance traditional energy strengths with technology, industrial capability and innovation-led growth.
As 2025 draws to a close, the Middle East stands out for its depth of capital, policy clarity and long-term vision. Foreign investor interest remains strong, particularly in technology, financial services and healthcare, reinforcing the region’s position as both a growth and diversification hub.
The sharp rise in deal values this year points to a market that has matured. Patient capital, disciplined execution and strategic clarity are shaping a new phase of Middle Eastern M&A, one focused on securing lasting advantages across sectors and geographies.