RIYADH: Mergers and acquisitions activity in the Middle East and North Africa region rose 1% year-on-year in the first half of 2024 to reach $49.2 billion across 321 deals, according to Ernst & Young.
The UK-based accounting firm attributed this steady growth primarily to activity in Saudi Arabia and the UAE, which completed 152 deals worth a combined $9.8 billion. Saudi Arabia and the UAE have been highlighted as key players in the regional M&A landscape, both as bidders and targets.
The EY report highlighted that Saudi Arabia's sovereign debt fund, along with the UAE's Abu Dhabi Investment Authority and Mubadala, played a leading role in transaction activity in the region, supporting each country's economic strategy.
Brad Watson, EY MENA Strategy and Transactions Leader, observed a surge in cross-border M&A value driven by companies seeking to build synergies, expand their market presence and gain global strategic advantage. He noted that the UAE, with its business-friendly regulations and efficient legislative framework, was particularly attractive to investors in the first half of the year.
Our analysis found that the 10 highest-valued M&A deals in the MENA region in early 2024 were concentrated in the Gulf Cooperation Council countries. The largest deal occurred in February 2024 when Clayton Dubilier & Rice, Stone Point Capital and Mubadala Investment acquired Truist Insurance Holdings for $12.4 billion.
In March 2024, Asian investment firms PAG, Mubadala and ADIA invested $8.3 billion to acquire a 60% stake in Chinese shopping mall operator Zhuhai Wanda Commercial Management Group.
Watson also noted that “MENA countries continue to strengthen their regional ties with Asia, Europe and the United States, improving their access to larger and growing markets.”
Insurance and real estate emerged as the most attractive sectors for investors in the first half of 2024, accounting for 47% of total transaction value.
EY added that “Saudi Arabia led the way as a target and bidding country, while the UAE, Morocco, Bahrain and Egypt also featured prominently in both categories.”
Domestic transactions in the MENA region increased by 13% year-on-year to reach USD 4.6 billion. In the first half of 2024, 94 deals took place in and around the UAE and Saudi Arabia, accounting for 61% of total domestic M&A volume.
Outbound activity was the largest contributor to total deal value, with 96 deals worth $36.3 billion, while inbound deals totaled $6.4 billion across 70 deals.
“M&A activity has benefited from significant tailwinds, such as lower costs of capital,” said Anil Menon, EY MENA M&A Leader and Equity Capital Markets Leader. “It is encouraging to see that regional M&A activity remains robust despite higher costs of capital.”
He attributed the resilience of the regional M&A market to “stable oil prices and continued infrastructure spending by local governments.”
