M&A In The Middle East Surges 260% To $53bn As Dealmakers Drive Energy And Tech Expansion

Deal values climbed 260 per cent year-on-year to $53bn in the first nine months of 2025, despite activity earlier in the year falling to its lowest levels since the COVID shock, according to Boston Consulting Group’s annual Global M&A Report 2025.

The report highlights that the region’s performance has been driven by a relatively small group of experienced dealmakers pursuing disciplined, strategic investments.

MENA M&A activity

Monthly data shows Middle East M&A activity over the past three years has consistently exceeded historical averages, rebounding strongly after the pandemic-driven slowdown.

BCG’s M&A Sentiment Index, a forward-looking indicator of deal activity, points to increasingly positive sentiment across all sectors, with confidence strongest in technology and energy.

While Africa, the Middle East, and Central Asia recorded a 6 per cent increase in aggregate deal value, the region continues efforts to exceed its 10-year average.

Samuele Bellani, Managing Director and Partner at BCG said: “The Middle East’s M&A landscape in 2025 reflects a sophisticated approach to capital deployment, where strategic diversification meets digital ambition.

“We’re witnessing experienced dealmakers making highly disciplined investments that simultaneously strengthen traditional energy capabilities while building new pillars of economic growth in technology and industrial services.”

Energy consolidation

Energy transactions remained the backbone of Middle Eastern M&A throughout 2025, as state-backed entities advanced domestic consolidation while expanding internationally through targeted acquisitions.

A landmark $13.4bn acquisition strengthened the UAE’s international expansion strategy in the chemicals sector, while a $693 million transaction in power generation and utilities highlighted ongoing consolidation across the energy value chain.

These deals underscore the sector’s resilience and support the region’s gradual pivot towards renewable energy, positioning national champions for the global energy transition.

The industrial sector emerged as a central pillar of the Middle East’s diversification agenda, with governments and sovereign wealth funds building capabilities beyond traditional hydrocarbon dependence.

A $925m acquisition underlined accelerating consolidation in critical supply-chain infrastructure, reflecting a broader, long-term strategy to establish the region as a global hub for industrial and logistics services.

This approach aims to reduce reliance on energy revenues while strengthening competitiveness across multiple sectors.

Technology deals signal

Technology, media and telecommunications gained unprecedented momentum in 2025, establishing themselves as a fast-growing pillar of regional deal activity.

A transformative $3.5bn acquisition, described as one of the largest global digital entertainment transactions, signalled ambitions to position the Middle East as a leader in gaming and digital entertainment.

Meanwhile, a $855m acquisition expanded the region’s telecommunications footprint into European markets. Together, these transactions highlight how Middle Eastern acquirers are deploying capital to capture growth across digital platforms, connectivity infrastructure and entertainment, aligning closely with national digital transformation agendas.

“What we’re seeing is a fundamental transformation in how Middle Eastern investors approach M&A,” said Bellani. “The region’s sovereign wealth funds are not just engines of deal flow—they’re architects of a new economic paradigm that balances traditional energy strengths with cutting-edge technological capabilities and world-class industrial infrastructure.”

Outlook for 2025

In 2025, the Middle East has positioned itself as one of the world’s most active and strategically focused M&A markets.

Sovereign wealth funds continue to provide deep pools of liquidity capable of sustaining deal flow regardless of global economic cycles, while government-led strategies drive consolidation across industrial and technology sectors.

Steady foreign interest across technology, media and telecommunications, financial services and healthcare further reinforces the region’s ability to support sustainable growth while accelerating economic diversification.

According to BCG, this sustained momentum reflects a mature understanding of global market dynamics, combining strategic patience with decisive execution to build long-term competitive advantage.