Middle East and North Africa M&A Activity Sees Modest Growth in 2024
Ernst & Young reported a 1 percent increase in merger and acquisition activity in the Middle East and North Africa region during the first half of 2024, totaling $49.2 billion across 321 deals.
Saudi Arabia and UAE Drive M&A Growth
Saudi Arabia and the UAE played a significant role in the region’s M&A landscape, with 152 deals valued at $9.8 billion. The two countries were active as both bidders and targets, contributing to the overall growth.
Key Players in the Region
Saudi Arabia’s sovereign wealth fund, along with Abu Dhabi Investment Authority and Mubadala from the UAE, played a crucial role in driving deal activity and supporting economic strategies in their respective countries.
Cross-Border M&A on the Rise
Companies in the MENA region are increasingly looking to build synergies and expand their market presence through cross-border M&A. The UAE, with its business-friendly regulations, emerged as a top destination for investors.
High-Value Transactions in the GCC
The Gulf Cooperation Council countries saw some of the region’s largest M&A transactions, with a notable deal in February 2024 involving the acquisition of Truist Insurance Holdings for $12.4 billion.
Investment Trends and Sector Focus
Insurance and real estate sectors were the most attractive for investors, accounting for 47 percent of the total deal value. Saudi Arabia led as both a target and bidder country, with other countries like the UAE, Morocco, Bahrain, and Egypt also featuring prominently.
Domestic and Outbound Activity
Domestic deals within the MENA region increased by 13 percent, totaling $4.6 billion. Outbound activity contributed significantly to the total deal value, with 96 deals amounting to $36.3 billion. Inbound deals, on the other hand, totaled $6.4 billion.
Resilience in the Market
Despite challenges like the higher cost of capital, regional M&A markets remained robust due to stable oil prices and ongoing infrastructure spending by local governments, according to Anil Menon, EY MENA Head of M&A and Equity Capital Markets Leader.