UAE, KSA Lead MENA M&A Deals with $10 Billion in H1 2024

Merger and acquisition (M&A) activity surged in the MENA region during the first half (H1) of 2024, with the UAE and Saudi Arabia becoming top destinations for investors, according to a new report by EY. The two Gulf nations recorded a combined 152 deals worth $9.8 billion.^[1]  

Sovereign wealth funds like Abu Dhabi Investment Authority (ADIA), Mubadala, and Saudi Arabia's Public Investment Fund (PIF) played significant roles in driving regional deal activity.

The UAE attracted investors due to its business-friendly regulations and efficient legislative framework, stated Brad Watson, EY MENA Strategy and Transactions Leader. Additionally, MENA countries strengthened regional ties with Asian and European countries while maintaining existing relationships with the US, expanding access to larger markets.

Cross-border M&As contributed 52% of the overall volume and 87% of the value in the first six months of this year, with a 15% increase year on year (YoY). Domestic M&A activity accounted for 48% of the total deals.

The US remained the preferred target for MENA outbound investors, with 19 deals worth $16.6 billion.

The GCC region hosted ten of MENA's highest-valued M&As in H1 2024. Notable transactions included:

• In February, Clayton Dubilier & Rice, Stone Point Capital, and Mubadala Investment acquired Truist Insurance Holdings for $12.4 billion.

• In March, PAG, Mubadala, and ADIA invested $8.3 billion in a 60% stake in Zhuhai Wanda Commercial Management Group, a Chinese shopping mall company.

• In June, Abu Dhabi Future Energy Company (Masdar) agreed to acquire a 67% stake in Greek company Terna Energy for $2.9 billion.

Insurance and real estate were the most attractive sectors, accounting for 47% of the total deal value. Saudi Arabia led both as a target and bidder country, with the UAE, Morocco, Bahrain, and Egypt also featured prominently.

During the January-June period of 2024, 155 domestic deals worth $6.4 billion were completed, up 13% YoY. GCC players were involved in 85% of the deals. Specifically, 94 deals within and between the UAE and Saudi Arabia accounted for 61% of the domestic M&A deal volume.

Overall, the MENA region experienced a slight increase in M&A activity, with 321 deals worth $49.2 billion. Deal volume grew 1% YoY, while deal value rose 12% YoY.

The latest data from MAGNiTT, a venture capital data platform for emerging markets, revealed that Saudi Arabia maintained its position as the top recipient of venture capital funding in the Middle East and North Africa (MENA) region, securing $412 million in H1 2024.