By: Economy middle east

Mergers and acquisitions in the Middle East have exhibited remarkable strength and strategic focus, with deal values surging 260 percent to reach $53 billion in the first three quarters of 2025 compared to the same period last year. According to the BCG Global M&A Report 2025, this robust performance is attributed to disciplined, strategic investments by a select group of dealmakers navigating ongoing global market instability.

Energy transactions remained central to the region’s M&A activity. A significant $13.4 billion acquisition signaled the UAE's ambitions for global expansion in the chemicals sector, highlighting a focus on strengthening traditional capabilities while positioning for the energy transition. Concurrently, the industrial sector saw substantial activity, exemplified by a $925 million deal, as part of a long-term strategy to build non-hydrocarbon economic pillars and establish the region as a logistics hub.

The technology, media, and telecommunications (TMT) sector also gained unprecedented momentum, reflecting a strategic shift in investment focus. A landmark $3.5 billion digital entertainment deal and an $855 million telecom expansion into Europe showcase regional ambitions to lead in digital growth areas. BCG notes that sovereign wealth funds are acting as architects of a new economic paradigm, balancing energy strengths with investments in technology and industrial infrastructure.

As 2025 concludes, the Middle East stands out as an active and strategically focused M&A market. Driven by deep liquidity from sovereign funds and government-led consolidation strategies, the region is building resilience against hydrocarbon dependency and attracting sustained foreign interest, particularly in the TMT, financial services, and healthcare sectors.