UAE And Saudi Arabia Dominate MENA M&A Landscape With Deals Worth $50Bn In H1 2024
The MENA region saw a slight rise in merger and acquisition (M&A) activity in the first half of 2024, with 321 deals totalling US$49.2 billion, according to the EY MENA M&A Insights H1 2024 report. This represents a 1% increase in deal volume and a 12% rise in deal value compared to H1 2023.
Cross-border mergers and acquisitions played a crucial role, contributing to 52% of the total volume and 87% of the value. This marked a year-on-year growth of 15% in value. Domestic M&A activity accounted for the remaining 48% of the deals.
The United Arab Emirates (UAE) and the Kingdom of Saudi Arabia (KSA) were top choices for investors, with 152 deals worth US$9.8 billion. These countries also led in terms of deal volume and value, highlighting their active participation in the region's M&A landscape.
Sovereign wealth funds (SWFs) like Abu Dhabi Investment Authority (ADIA), Mubadala from the UAE, and KSA's Public Investment Fund (PIF) continued to drive deal activity. Their efforts align with their countries' economic strategies.
Brad Watson, EY MENA Strategy and Transactions Leader, noted: "Dealmaking got off to a promising start in 2024 despite oil price fluctuations. We saw a surge in cross-border M&A value as companies made investments to further build synergies, expand market presence, and gain strategic advantages on a global scale."
The largest transaction occurred in February 2024 when Clayton Dubilier & Rice, Stone Point Capital, and Mubadala Investment acquired Truist Insurance Holdings for US$12.4 billion. In March, PAG, Mubadala, and ADIA invested US$8.3 billion for a 60% stake in Zhuhai Wanda Commercial Management Group. June saw Abu Dhabi Future Energy Company (Masdar) acquire a 67% stake in TERNA ENERGY for US$2.9 billion.
Insurance and real estate sectors were particularly attractive to investors during this period, accounting for 47% of total deal value. KSA led both target and bidder country lists, with UAE, Morocco, Bahrain, and Egypt also featuring prominently.
The first half of 2024 recorded 155 domestic deals valued at US$6.4 billion—a 13% increase in M&A activity. GCC players were involved in 85% of these deals, reflecting high intra-regional activity. The UAE and KSA alone accounted for 94 deals or 61% of overall domestic M&A volume.
The real estate sector emerged as the main contributor to deal value with transactions worth US$1.3 billion across 15 deals. The consumer products and technology sectors followed closely with 47 deals representing 30% of total volume.
North America and Europe Lead Inbound Deals
In the first six months of 2024, there were 70 inbound deals totalling US$6.4 billion. Europe led with an impressive deal volume share of 80%, while North America contributed significantly to deal value at 98%. The professional firms and services sector reported the highest volume with 17 inbound deals worth US$2 billion.
The technology sector followed closely behind with investments amounting to US$1.7 billion across 16 deals. Partnerships between US companies and UAE stakeholders contributed significantly to these figures.
Outbound activity was robust during H1 2024 with 96 deals amounting to US$36.3 billion—a notable increase of 19% compared to H1 2023. Insurance and real estate sectors dominated this space, accounting for over half of the total outbound deal value.
Anil Menon, EY MENA Head of M&A and Equity Capital Markets Leader said: "M&A has been bolstered by significant tailwinds such as low cost of capital... It is heartening to see regional M&A activity remain robust despite higher costs."
The United States remained a preferred target destination for MENA outbound investors with significant investments totalling US$16.6 billion across various sectors.
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