MENA M&A Activity Hits $71bn In 9M 2024, Led By UAE And Saudi Arabia

The increase amounted to 9 per cent in deal volumes and 7 per cent in deal value compared to the same year-ago period, according to the EY MENA M&A Insights 9M 2024 report.

The UAE and Saudi Arabia were the preferred destinations for investors due to their favourable business policies, with 239 deals reaching a combined disclosed value of $24.5 billion during the period.

The two countries were also among the top MENA bidder countries in terms of deal volume and value, representing 52 per cent and 81 per cent of the total, respectively.

UAE, Saudi lead deals

Sovereign wealth funds (SWFs), such as Abu Dhabi Investment Authority (ADIA) and Mubadala from the UAE and the Public Investment Fund (PIF) from KSA, continued to lead the deal activity in the region to support their countries’ economic strategies.

“Deal activity in the MENA region has seen a notable improvement this year, driven by strategic policy shifts, the liberalisation of investment regulations and robust capital inflows from investors,” said Brad Watson, EY MENA Strategy and Transactions Leader.

“With companies actively seeking opportunities to grow and diversify their operations, we have observed a surge in cross-border M&A volume and value.

“In particular, the UAE remained a favoured investment destination during the first nine months of 2024 due to its business-friendly regulations and efficient legislative framework,” he said.

Region sees 10 mega deals in 9M

Ten of the MENA region’s highest-valued M&A deals in the first nine months of 2024 were concentrated in the GCC, with the largest transaction being Clayton Dubilier & Rice, Stone Point Capital and Mubadala Investment announcing their acquisition of Truist Insurance Holdings for $12.4 billion.

Saudi Arabia recorded the largest disclosed domestic deal with Saudi Aramco’s acquisition of a 22.5 per cent stake in Rabigh Refining and Petrochemical Company from Tokyo-based Sumitomo Chemical for $8.9 billion.

The other big deals included PAG, Mubadala and ADIA investing $8.3 billion for a 60 per cent stake in the Chinese shopping mall company Zhuhai Wanda Commercial Management Group.

Insurance and oil & gas were the most attractive sectors for investors in the first nine months of the year, representing 34 per cent of total deal value.

The EY report said during the first nine months of 2024, cross-border M&A deals played a significant role, contributing 52 per cent of the overall volume and 73 per cent of the value.

Meanwhile, domestic M&A value increased year-on-year (y-o-y) by 44 per cent to reach $19.3 billion, primarily driven by government-related entities (GREs) transactions in the oil & gas, metals and mining and chemicals sectors, the report said.

The United States remained the preferred target destination for MENA investors with 32 deals amounting to $18.3 billion in the first 9 months of 2024.

With the US-UAE Business Council playing an active role in promoting partnerships, prominent US companies are collaborating with UAE public and private sector stakeholders on various initiatives, the report said.