Middle East M&A Hits $23.3B as Tech Leads Deal Volume

The Middle East recorded 196 announced M&A deals worth $23.3 billion during the first quarter of 2026, according to the Middle East M&A Market Analysis report by Ansarada. While deal count dipped from 207 transactions valued at $31.3 billion in Q1 2025, the region demonstrates continued resilience despite geopolitical uncertainty.

Egypt accounted for eight deals worth $22 million, down from 11 deals a year earlier. Despite the decline, Ansarada noted Egypt continues to demonstrate resilience supported by a maturing investment environment, ongoing economic reforms, and tax incentives. Justin Smith, Managing Director at Ansarada, said market volatility continues to influence transaction timing but significant capital remains available.

By sector, technology recorded the highest deal volume with 68 transactions worth $7.3 billion, driven by investments in artificial intelligence, financial technology, and enterprise software. Transportation led in deal value at $8.2 billion across nine transactions. Energy contributed $2.2 billion across 18 deals, healthcare accounted for $1.9 billion through 19 transactions, and industrial deals totaled $1.6 billion.

The report highlighted continued outbound acquisitions by Middle Eastern investors, reflecting confidence in the region's capital strength. Sovereign investment strategies and national transformation programs continue to drive deal flow, even as companies adapt to prolonged uncertainty.

Tech leading deal volume signals where the growth narrative is heading. When AI and fintech drive 35% of all regional M&A transactions, the diversification story isn't just talk — it's showing up in cap tables.