M&A deals in MENA up 7% as Saudi Arabia, UAE lead the way: EY.

Saudi Arabia and the UAE helped drive merger and acquisition activities in 2024 up 7 percent across the Middle East and North Africa to reach $92.3 billion, according to an analysis.

In its latest report, professional services network firm EY revealed that the MENA region witnessed 701 deals over the period, a 3 percent rise from the 679 deals seen in 2023.

EY added that the UAE and Saudi Arabia together reported 318 deals in 2024 valued at $29.6 billion. These two nations were also among the top MENA bidders indicating their active participation in the merger and acquisition landscape.

According to the analysis, this expansion was driven mainly by reforms in capital markets across the region, as well as strategic policy changes and strengthened efforts to attract international investments.

Earlier this month, banking firm Morgan Stanley also echoed similar views and said that the MENA region will witness a significant “structural upswing” in transaction volume and value size in 2025 propelled by policy shifts and regulatory reforms. EY said that the Gulf Cooperation Council region accounted for the majority of deals within the MENA region at 580, accounting for 52 percent of the volume and 74 percent of the value.

The report added that the UAE reported the largest M&A deal in 2024, with the acquisition of Truist Insurance by Clayton Dubilier & Rice, Stone Point Capital and Mubadala Investment for $12.4 billion.

The second-biggest deal was made by Saudi Aramco, with the energy giant acquiring a 22.5 percent stake in Rabigh Refining and Petrochemical Co. from Tokyo-based Sumitomo Chemical for $8.9 billion.

The third-largest deal was the acquisition of a 60 percent stake in the Chinese shopping mall company Zhuhai Wanda Commercial Management Group by PAG, Mubadala and Abu Dhabi Investment Authority for $8.3 billion. EY revealed that outbound deals contributed to the largest share of M&A transaction value in 2024, accounting for 61 percent of the total consolidated deal value, with 199 transactions amounting to $‌56.6‌ billion.

Source: ARABNEWS