Strategic Reforms Leading to the Growth of M&A Activities
The GCC region led the way with 580 deals valued at $90 billion. It’s worth mentioning that cross-border deals played a vital role, contributing to 52% of the total volume and 74% of the deal value.
Experts reveal that businesses in the region are actively looking for growth opportunities. Particularly, they are exploring sectors like insurance, asset management, real estate, power, utilities, and technology sectors. Successful organizations are also seeking M&A advisory services from experienced consultants to enhance regional collaborations in the Asian and European markets.
Major Players and Key Deals
M&A activities in the MENA region were primarily dominated by major players like Sovereign wealth funds (SWFs). This included the Abu Dhabi Investment Authority (ADIA), Mubadala Investment, and Saudi Arabia’s Public Investment Fund (PIF). The strategic investments of these firms continue to reshape the economic landscape of the region. Leading companies are looking for comprehensive due diligence services from reputed experts before entering these transactions.
The $12.4 billion acquisition of Truist Insurance by Clayton Dubilier & Rice, Stone Point Capital, and Mubadala Investment marked the largest deal of 2024. Some of the other notable transactions included:
- Saudi Aramco’s $8.9 billion acquisition of a 5% stake in Rabigh Refining and Petrochemical Company.
- The $8.3 billion purchase of a 60% stake in Zhuhai Wanda Commercial Management Group by PAG, Mubadala, and ADIA.
Interestingly, outbound M&A deals accounted for 61% of the total deal value. Across 199 transactions, the value of outbound deals reached $56.6 billion. On the other hand, inbound deals recorded an 18% surge in volume and 42% in value, reaching $11.4 billion. Naturally, these players have been seeking comprehensive due diligence services from top consultants to ensure successful deals.
Leading Investment Destinations - UAE and KSA
IN 2024, the UAE emerged as the top investment hub. It recorded as many as 96 inbound deals, with a total valuation of $7.6 billion. The country accounts for 67% of the total inbound deal value. This growth was led by the technology sector, particularly domains like AI, digital transformation, and cybersecurity. One of the significant deals in this space was the $1.5 billion acquisition of Abu Dhabi’s Group 42 by Microsoft.
Saudi Arabia followed the suit, contributing significantly to the regional M&A transactions. Together, the UAE and KSA recorded 318 deals valued at $29.6 billion. In 2024, these two nations have been ranked among the MENA bidders. This reinforces their positions as dominant players in the M&A space.
Outside MENA, the US was the largest acquirer. The country completed 48 transactions worth $4.6 billion. Meanwhile, MENA investors favored the U.S., with 41 deals totalling $19.9 billion.
Domestic M&A on the Rise
In terms of disclosed deal value, oil and gas remained the top sector. It accounted for 37% of the total domestic deal value, recording $9.0 billion. Saudi Aramco’s $8.9 billion stake acquisition in Rabigh Refining and Petrochemical Company was the key driver of this growth.
The Future of M&A in MENA
Experts have observed that technology continues to be the most attractive sector for investors. It constitutes 23% of total inbound and domestic M&A deals. The MENA region is undergoing a transformation in productivity, thanks to the rise of AI and digital transformation. This is significantly shaping capital allocation for deals.
Looking ahead, 2025 promises strong momentum for M&A activities in the MENA region. With professional M&A advisory services from reputed consultants like the IMC Group, businesses are looking to strike major deals. Fresh opportunities await both domestic and international investors in the MENA region in 2025.
