The UAE and Saudi Arabia emerged as top investment destinations in the first half of 2024, with 152 merger and acquisition deals totaling $9.8 billion. The UAE saw the largest transaction in the region with the acquisition of Truist Insurance Holdings for $12.4 billion. Both countries were among the top Mena bidders in terms of deal volume and value, showcasing their active participation in the region’s M&A landscape. The overall Mena M&A activity saw a slight increase to 321 deals amounting to $49.2 billion, with a 1.0% increase in deal volume and a 12% rise in deal value compared to H1 2023.
Sovereign wealth funds from the UAE and Saudi Arabia, such as Adia, Mubadala, and PIF, continued to lead deal activities in the region to support their countries’ economic strategies. Cross-border M&A value surged in the first half of 2024 as companies sought to build synergies, expand market presence, and gain strategic advantages on a global scale. The UAE was particularly favored due to its business-friendly regulations and efficient legislative framework. Strong regional relationships with Asian and European countries, alongside ties with the US, allowed Mena countries to access larger and growing markets.
Cross-border M&As played a significant role in the first six months of 2024, contributing to 52% of the overall volume and 87% of the value. The US remained the preferred target destination for Mena outbound investors, with 19 deals amounting to $16.6 billion. Ten of the highest-valued M&A deals in the region were concentrated in the GCC, with transactions in sectors such as insurance, real estate, and energy. Insurance and real estate were the most attractive sectors for investors in the first half of the year, accounting for 47% of the total deal value.
The first half of 2024 saw 155 domestic deals with a combined disclosed value of $6.4 billion, marking a 13% increase in M&A activity. GCC players were involved in 85% of the deals, showcasing a high level of intra-regional M&A activity. Real estate, including hospitality and leisure, became the main contributor to deal value, driven by increasing tourism, mega projects, and a growing middle-class income. The consumer products and technology sectors also witnessed significant activity in the domestic market.
Despite higher costs of capital, regional M&A activity remained robust, supported by stable oil prices and continued infrastructure spending by local governments. Anil Menon, EY Mena head of M&A and Equity Capital Markets Leader, highlighted the resilience of the regional M&A markets in the face of challenges. Overall, the Mena region continued to attract investments and drive M&A activities, with the UAE and Saudi Arabia leading the way in the first half of 2024.
