Middle East M&A Surges 19% Despite Global Slowdown, Egypt Nearly Doubles Deal Volume
Middle East dealmaking has demonstrated remarkable resilience in the first half of 2025, with 271 completed transactions representing a 19% increase over the same period in 2024, according to PwC's TransAct Mid-Year Update. This growth comes against the backdrop of a 9% decline in global M&A activity. The UAE led the region with 95 transactions, maintaining its position as the most active market despite a slight dip from 101 deals in H1 2024. Saudi Arabia followed with 59 deals, up from 54, fueled by Vision 2030-linked transactions. Egypt was the standout performer, nearly doubling its activity to 86 deals from 48 the previous year, driven by IMF-supported economic reforms and large-scale Gulf investments. GDP growth is projected at 3.8% for 2025. Financial services was the most active sector with approximately 70 deals, up from 44 a year earlier, led by fintech consolidation. The technology sector saw the largest disclosed deal: G42's acquisition of a 40% stake in Khazna Data Center Holdings for $2.2 billion, signaling the region's pivot toward data infrastructure and AI capabilities. Cross-border intra-regional deals rose to 134 from 118, while outbound deals declined for the second consecutive year, indicating capital is becoming more localized and focused on building regional champions.
Egypt's near-doubling of M&A activity is the most significant signal for MENA builders. With IMF backing, Gulf capital flowing in, and fintech leading the charge, the Egyptian market is becoming increasingly attractive for regional and international investors.
Which sectors are driving M&A growth in the Middle East?
Financial services (especially fintech) leads with ~70 deals, followed by technology and telecommunications (led by G42's $2.2B data center deal), energy, healthcare, and consumer markets.