Middle East M&A activity rises 19% in H1 ’25, shows PwC report

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Mergers and acquisitions (M&A) in the Middle East rose 19 per cent in H1 2025 to 271 deals, bucking a 9 per cent global decline, according to PwC Middle East’s recently published TransAct mid-year update.

The report, “Middle East M&A defies global slowdown powered by sovereign capital, reforms, and high-growth sectors”, said sovereign wealth funds, domestic investors and corporates are driving mid-market transactions that are easier to finance, faster to execute, and aligned with national priorities around localisation, digital sovereignty and economic diversification.

“The Middle East has continued to show resilience and ambition in the first half of 2025 with deal activity growth in contrast to the global decline in M&A volumes,” said Romil Radia, Deals Markets leader at PwC Middle East.

“The shift towards mid-market, high-impact deals shows a sharp focus on strategic assets that are easier to fund and align with national goals like localisation, economic diversification and building digital and green infrastructure,” Radia added.

Read: MENA M&A activity surges in Q1 2025 with $46bn in deals: EY

Sectors that will drive M&A activity

Technology, energy transition and healthcare remain central to the region’s deal activity. G42’s $2.2bn acquisition of a 40 per cent stake in Khazna Data Centers and Saudi Arabia’s $100bn Project Transcendence AI commitment underscored ambitions in digital infrastructure and advanced technologies.

The report also highlighted sovereign-led investments in green hydrogen, renewable energy and sustainable transport, as well as consolidation in specialised healthcare aimed at expanding access and advancing localisation.

PwC said domestic and intra-regional transactions are expected to continue leading activity, with mid-sized deals providing the most practical path to growth in transformative sectors.