The merger and acquisition (M&A) deal volumes across the Middle East in the first half of 2025, soared to 271 when compared to 228 during the same period last year, defying a 9% global decline, according to PwC Middle East.

 

It was mainly dominated by UAE, Saudi Arabia and Egypt, with the trio driving 89% of all deals, said PwC in its report, ‘Middle East M&A defies global slowdown powered by sovereign capital, reforms, and high-growth sectors.'

 

In the 2025 TransAct Middle East mid-year update report, pWc had highlighted a surge in regional M&A despite global headwinds. 

 

This surge comes despite a 9% decline in global M&A, underscoring the region’s ability to adapt swiftly and sustain momentum through sovereign capital, ambitious reforms, and diversification into high-growth sectors, it stated.

 

While global deal-making has been slowed by economic headwinds and tariff-linked challenges, the Middle East is charting its own course. 

 

Sovereign wealth funds, domestic investors and corporates are driving disciplined, mid-market transactions that are easier to finance, faster to execute, and directly aligned with national priorities around localisation, digital sovereignty, and economic diversification.

 

Romil Radia, Deals Markets Leader at PwC Middle East, said: "The Middle East has continued to show resilience and ambition in the first half of 2025 with deal activity growth in contrast to the global decline in M&A volumes."

 

"The shift towards mid-market, high-impact deals shows a sharp focus on strategic assets that are easier to fund and align with national goals like localisation, economic diversification and building digital and green infrastructure," he added.

 

According to the report, technology, energy transition and healthcare continue to anchor regional M&A. 

Landmark transactions such as G42’s $2.2 billion acquisition of a 40% stake in Khazna Data Centers and Saudi Arabia’s $100bn Project Transcendence AI commitment underscored the region’s ambition to lead in digital infrastructure and advanced technologies.

 

The report also highlights how sovereign-led investments in green hydrogen, sustainable transport, and renewable energy are accelerating decarbonisation and long-term growth. 

 

At the same time, consolidation in specialised healthcare is advancing localisation and expanding access to world-class care across the region, it stated.

 

According to PwC, Middle East’s M&A market should continue to have some momentum where domestic and intra-regional transactions will continue to lead, while mid-sized deals provide the most practical path to growth in transformative sectors such as green energy, healthcare and digital infrastructure. 

 

Despite some market pressures, the region is well positioned to unlock new value, reshape industries, and strengthen its global influence in high-growth markets, it added.-TradeArabia News Service