Gulf region dominates global mergers and acquisitions with record-breaking deals

The Gulf region cemented its status as a global leader in mergers and acquisitions (M&A) in 2024, with sovereign wealth funds from Saudi Arabia and the UAE driving a wave of mega-deals across the energy, technology, and manufacturing sectors.

According to Bain & Company, M&A activity in the Middle East surged 88% year over year, reaching $36 billion in the first 10 months of 2024—far outpacing the 7% growth seen in global markets.

“The Middle East’s exceptional M&A growth underscores its transformation into a global investment powerhouse,” said Grégory Garnier, Middle East Head of Bain’s Private Equity and Sovereign Wealth Fund practices.

Key sectors fueling growth

The energy and natural resources sector led the boom with a 140% increase, while technology investments rose 90%. Advanced manufacturing services saw an extraordinary 300% growth, reflecting a broader push toward innovation and sustainability.

Notably, Saudi Aramco’s $8.9 billion acquisition of Rabigh Refining & Petrochemical Co. exemplified the shift toward larger, strategic transactions, marking a maturing market that prioritizes high-value deals over sheer volume.

Diverging investment strategies: Saudi Arabia vs. UAE

While both Saudi Arabia and the UAE have been dominant players, their investment strategies differ significantly:

• Saudi Arabia has focused on domestic investments, aligning with Vision 2030’s diversification agenda.
• UAE sovereign funds, including Mubadala and ADIA, have aggressively pursued international expansion, particularly in Europe, where investment volumes doubled in 2024.

“Saudi funds prioritize domestic growth, while UAE acquirers strategically expand overseas,” said Elif Koc, partner at Bain & Company.

Regulatory advantages and AI in deal-making

The Middle East’s streamlined regulatory environment has given it a competitive edge, particularly as other global markets experience longer deal approval timelines due to tighter regulations.

Additionally, Gulf-based dealmakers are leveraging AI-driven tools for faster due diligence, deal sourcing, and risk assessments, enhancing their ability to execute complex transactions efficiently.

Outlook for 2025: A global M&A powerhouse in the making

The sustainability of this M&A boom in 2025 will depend on stable oil revenues and geopolitical conditions, but the shift toward high-value, strategic investments suggests that the Middle East’s rise as a global deal-making hub is just getting started.

“Sovereign wealth funds have built sector-specific expertise and faster due diligence cycles, positioning the region for sustained M&A leadership,” added Koc.

As global financial hubs face regulatory hurdles and rising interest rates, the Gulf’s emergence as a dominant force in international M&A appears set to continue well into 2025.