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The UAE and Saudi Arabia are leading the M&A charge in the MENA region this year, securing 239 transactions valued at USD 24.5 bn in the first nine months of 2024, according to EY’s 9M 2024 Mena M&A Insights update. Together, they accounted for 52% of all activity and 81% of total value.
Big moves: Mubadala claimed the largest acquisition of the year, teaming up with private equity firms to purchase US-based Truist Ins. Holdings for USD 12.4 bn in February. It also joined the Abu Dhabi Investment Authority (ADIA) in an USD 8.3 bn investment in Dalian Wanda’s mall unit, the third-largest transaction during the period.
M&A activity in the Middle East picked up in 9M to a total value of USD 71 bn across 522 transactions, up 9% in volume and 7% in value y-o-y. Cross-border transactions made up 52% of the volume and 73% of the value, while domestic activity surged 44% in value to USD 19.3 bn, driven by government-backed spending in oil, gas, and mining.
UAE-KSA transactions drove domestic activity, with a total of 139 transactions between the two nations making up 56% of the overall volume.
Outbound M&As dominated activity in 9M, accounting for 58% of total value with 147 transactions worth USD 41.1 bn. The US and China together represented 70% of Mena’s outbound transactions. The US remained the top destination for Mena investors, capturing USD 18.3 bn across 32 transactions.
Inbound activity grew 47% in value, reaching a total of USD 10.4 bn across 127 transactions, the US and UK accounting for 42% of the total inbound M&As. The US alone contributed 33% of the volume.
The UAE stood out as “a favored investment destination during the first nine months of 2024,” capturing 60% of the total inbound transactions and 67% of the value. The robust performance came on the back of the UAE’s “business-friendly regulations and efficient legislative framework,” EY Mena strategy and transactions leader Brad Watson said.
UAE+ US partnerships accounted for 80% of the US’ investments in the region, propelled by the growing interest in AI and digitalization.
Tech investments gained momentum, with 78 transactions making up 31% of the total volume. Meanwhile, the oil and gas and metals and mining sectors dominated in value, with 19 transactions totaling USD 10.9 bn. The oil and gas sector alone accounted for 46% of the total value.
Sovereign wealth funds drove the activity in the region, namely UAE’s Abu Dhabi Investment Authority (Adia) and Mubadala and Saudi’s Public Investment Fund (PIF) in a bid to “support their countries’ economic strategies.”
Looking ahead, M&A activity is expected to surpass 700 transactions by the end of the year, nearing the “historic five-year high of 750 [transactions], a remarkable achievement in the context of uncertain geopolitics and higher cost of capital,” Anil Menon, EY Mena head of M&A and equity capital markets leader said.
