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Saudi Arabia solidified its position as a top destination for MENA-based investors alongside the UAE, with 239 agreements valued at USD 24.5 bn in 9M 2024, according to EY’s MENA M&A Insights 9M 2024 report. Saudi Arabia and the UAE saw a combined 139 domestic agreements, representing 56% of the total domestic M&A volume in the GCC. Meanwhile, GCC players contributed to 81% of intra-regional M&A activity.
The Kingdom recorded the largest domestic transaction in the region, namely Saudi Aramco’s USD 8.9 bn acquisition of a 22.5% stake in Rabigh Refining and Petrochemical Company. The oil and gas sector contributed 46% of the total domestic M&A value across MENA.
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THE REGIONAL ANGLE-
MENA’s overall M&A activity in 9M 2024 saw a 9% increase in volume and a 9% rise in value, with 522 transactions worth USD 71 bn. Cross-border transactions accounted for 52% of the total volume and 73% of the total value.
The value of M&A activities within single countries rose to USD 19.3 bn, with sectors such as oil and gas, metals and mining, and chemicals driving most of the activity. Technology and consumer products accounted for 31% of the domestic transaction volume.
Inbound M&A activity also grew y-o-y, particularly from the US and UK, which together accounted for 42% of the total inbound transaction volume. Meanwhile, outbound activity from MENA was the largest contributor to transaction value, comprising 58% of the total with USD 41.4 bn in transactions.
EY expects MENA’s M&A activity to surpass 700 agreements by the end of 2024, approaching the five-year high of 750 transactions. This performance comes despite regional uncertainties and rising borrowing costs. Ins, oil and gas, and real estate are expected to remain the most active sectors, while the technology sector continues to benefit from rising digital transformation trends.
