• Middle East deal values surged 260% to $53 billion in the first nine months of 2025, showcasing remarkable regional resilience despite experiencing volatility earlier in the year.
• The broader Africa, Middle East, and Central Asia region recorded a 6% increase in aggregate deal value, though activity remains below the 10-year average, according to BCG’s 22nd Annual Global M&A Report.
• Cross-border acquisitions by Middle Eastern investors continue to demonstrate exceptional strength, maintaining elevated activity levels since 2021 with strategic focus on digital transformation, industrial infrastructure, and energy transition investments.

Samuele Bellani Managing Director and Partner

Dubai, UAE,22December2025 – Middle Eastern mergers and acquisitions (M&A) have demonstrated remarkable resilience and strategic focus, with deal values surging 260% to $53 billion in the first nine months of 2025 compared to the same period last year. This exceptional growth comes despite experiencing its lowest levels since the COVID shock earlier in the year, according to BCG’s annual Global M&A Report 2025 released today. The region’s performance is driven by a select group of experienced dealmakers making disciplined, strategic investments amid continued global market volatility.

Monthly data reveals that Middle East M&A activity over the past three years has consistently exceeded historical averages, recovering strongly from the pandemic dip. BCG’s M&A Sentiment Index, a forward-looking indicator of deal activity, shows increasingly positive sentiment across all sectors, with confidence reaching its highest levels in technology and energy. While Africa, the Middle East, and Central Asia recorded a 6% increase in aggregate deal value, the region continues working to surpass its 10-year average.

“The Middle East’s M&A landscape in 2025 reflects a sophisticated approach to capital deployment, where strategic diversification meets digital ambition,” said Samuele Bellani, Managing Director & Partner at BCG. “We’re witnessing experienced dealmakers making highly disciplined investments that simultaneously strengthen traditional energy capabilities while building new pillars of economic growth in technology and industrial services.”

M&AEnergy Sector Consolidation Drives Regional M&A Leadership

Energy transactions remained the cornerstone of Middle Eastern M&A activity throughout 2025, as state-backed entities pursued aggressive domestic consolidation while simultaneously expanding their international footprint through strategic acquisitions. A landmark $13.4 billion acquisition reinforces the UAE’s ambitious international expansion strategy in the chemicals sector, while a $693 million purchase in power generation and utilities exemplified the ongoing consolidation within the sector. These strategic moves underscore sector resilience while supporting the region’s gradual but determined pivot toward renewable energy sources, positioning national champions for the global energy transition.

The industrial sector emerged as a central pillar of the Middle East’s economic diversification strategy, with governments and sovereign wealth funds systematically building capabilities beyond traditional hydrocarbon dependencies. A $925 million acquisition highlights the accelerating consolidation of critical supply chain infrastructure across the region. This transaction reflects a broader, long-term initiative to establish the Middle East as a premier hub for industrial and logistics services, fundamentally reducing dependency on energy revenues while enhancing the region’s global competitiveness across multiple sectors.

Digital Transformation Fuels Technology Sector Emergence

Technology, media, and telecommunications gained unprecedented momentum in 2025, establishing itself as an emerging pillar of regional deal activity and signaling a fundamental shift in investment priorities. A transformative $3.5 billion acquisition, representing one of the largest digital entertainment transactions globally, demonstrates the region’s serious ambitions to become a global leader in gaming and digital entertainment. A $855 million acquisition strategically expanded the Middle East’s telecommunications influence into European markets. These high-profile transactions clearly demonstrate that Middle Eastern acquirers are strategically deploying substantial capital to capture growth opportunities across digital platforms, connectivity infrastructure, and entertainment services, aligning perfectly with broader national digital transformation agendas.

“What we’re seeing is a fundamental transformation in how Middle Eastern investors approach M&A,” said Samuele Bellani, Managing Director & Partner at BCG. “The region’s sovereign wealth funds are not just engines of deal flow—they’re architects of a new economic paradigm that balances traditional energy strengths with cutting-edge technological capabilities and world-class industrial infrastructure.”

As 2025 enters its final months, the Middle East has distinguished itself as one of the world’s most active and strategically focused M&A markets. Sovereign wealth funds continue providing an exceptionally deep pool of liquidity capable of sustaining robust deal flow regardless of global economic cycles or market volatility. Government-led strategies persistently drive consolidation across industrial and technology sectors, creating unprecedented resilience against the region’s historical reliance on hydrocarbon revenues. The combination of steady foreign interest across TMT, financial services, and healthcare sectors demonstrates the region’s unique dual advantage of supporting sustainable growth while accelerating economic diversification initiatives.

The sustained momentum in Middle Eastern M&A activity reflects a mature understanding of global market dynamics, where strategic patience combines with decisive action to create lasting competitive advantages across multiple sectors and geographies.

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