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UAE and Saudi Arabia Propel MENA M&A Activity to $71 Billion in 2024

Abdul Razak Bello November 18, 2024Last Updated: November 18, 2024

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MENA’s merger and acquisition market has soared to $71 billion in 2024, while Saudi Arabia leads the regional deal-making landscape. Crown Prince Mohammed bin Salman’s Vision 2030 initiative has revolutionized Riyadh’s status, making Saudi Arabia’s capital a crucial center for international investment.

Saudi Arabia’s alliance with the United Arab Emirates now accounts for 34% of the region’s total deal value. Economic diversification initiatives, expanding cross-border transactions, and key investments in technology, energy, and infrastructure sectors have fueled this exceptional growth. Deal activities continue to reshape MENA’s economic terrain, establishing the region as a prominent global investment destination.

Record-Breaking MENA Deal Landscape

Mergers and acquisitions activity in the MENA region showed remarkable momentum during 2024’s first nine months. This period revolutionized regional deal-making. The market recorded 522 deals worth AED 260.72 billion, setting new standards in regional investment activity.

9-Month Deal Volume Reaches $71 Billion

Cross-border transactions led the way with 52% of deal volume and 73% of total value. Insurance and oil & gas sectors dominated the market and represented 34% of total deal value. Technology sectors reached record-breaking transaction volumes.

Year-over-Year Growth Analysis

The market’s growth numbers surpassed 2023’s performance:

Deal volume went up by 9%
Overall value climbed by 7%
Domestic M&A value jumped by 44%
Inbound deals expanded by 20% in volume and 47% in value

Key Market Drivers and Trends

Several distinct trends shaped the region’s deal landscape. Government-related entities (GREs) played an active role in strategic sectors through major deals in:

Oil & gas (46% of total deal value)
Metals and mining
Chemical sector developments
Technology and professional services

Technology and consumer products sectors led in volume and made up 31% of domestic M&A activity with 78 deals. This uptick reflects the region’s push toward digital transformation and evolving consumer habits. The United States managed to keep its spot as MENA investors’ preferred destination, with 32 deals worth AED 67.20 billion. These numbers highlight regional M&A activity’s strong international reach.

UAE-Saudi Arabia Investment Partnership

The mutually beneficial alliance between the United Arab Emirates and Saudi Arabia has become the life-blood of regional economic development. Both nations showcase their strength through unprecedented collaboration in mergers and acquisitions. They executed 239 deals worth AED 89.97 billion in the first three quarters of 2024.

Combined Deal Value of $24.5 Billion

This partnership proves its worth through bilateral investments from both countries that contribute heavily to the region’s deal flow. Their combined economies represent a gross domestic product of one trillion dollars. Joint exports rank fourth globally at AED 2,754.10 billion. They allocate AED 150 billion yearly to infrastructure projects, which creates numerous opportunities for cooperation between both nations.

Strategic Sector Focus

Both countries work together across several key sectors, with focus on:

Collaborative Investment Initiatives

The Saudi-Emirati Coordination Council has put in place a complete strategy through 44 joint strategic projects. Key initiatives include a joint investment fund that targets emerging industrial sectors and a AED 5 billion agricultural investment venture to boost both nations’ food security.

This partnership shows steadfast dedication to economic diversification through investments in future-focused sectors. Both countries have created business-friendly regulations and quick legislative frameworks that attract international investors. Their sovereign wealth funds, including Abu Dhabi Investment Authority (ADIA), Mubadala, and the Public Investment Fund (PIF), drive strategic investments and support their national economic strategies actively.

Sovereign Wealth Fund Impact

Sovereign wealth funds from the Gulf Cooperation Council have become key players in global investment. These funds invested AED 201.97 billion through 126 deals during 2024’s first nine months. This accounts for 40% of worldwide sovereign investor activities, matching 2023’s performance.

ADIA and PIF Investment Strategies

The ‘Oil Five’ sovereign wealth funds, which include ADIA, Mubadala, ADQ, PIF, and QIA, showed exceptional investment strength. They deployed twice the capital of Canadian funds and eight times more than their Singaporean counterparts. Their total assets reached AED 17.99 trillion in 2024. Experts predict this number will grow to AED 26.81 trillion by 2030.

Major Deal Highlights

Key transactions in 2024 include:

Mubadala joined the AED 45.53 billion purchase of Truist Insurance Holdings
ADIA and Mubadala put AED 30.48 billion into Zhuhai Wanda Commercial Management Group
PIF pledged AED 36.72 billion toward green projects through 2026

Economic Diversification Goals

These funds made a fundamental change toward sustainable investments. A milestone came in 2021 when green asset investments exceeded traditional oil and gas investments. This pattern continued through 2024, with major commitments to renewable energy projects in Australia, India, and Japan.

Gulf SWFs maintain a strategic balance between Eastern and Western markets. These funds traditionally place over 50% of their investments in the US. They have expanded eastward and invested AED 34.89 billion in Chinese businesses of all types.

Investment strategies support national economic transformation goals. The focus remains on sectors that create lasting value and prosperity. This approach combines local strategic investments with global opportunities, especially in technology, renewable energy, and infrastructure growth.

Cross-Border Investment Dynamics

Cross-border transactions are the life-blood of MENA’s investment landscape. International deals dominated both volume and value metrics in 2024. The region’s expanding global presence shows its growing influence in international markets and serves as a bridge between East and West.

US-MENA Partnership Growth

The United States remains the top destination for MENA investors, with 32 deals worth AED 67.20 billion. This resilient partnership shows impressive results:

Technology sector partnerships: 80% UAE collaboration
Professional services integration: 33% US contribution
Digital transformation initiatives: 48% deal volume
Artificial intelligence ventures: 39% value share

Asian Market Expansion

Regional relationships with Asian economies have created new opportunities for market access and growth. Trade between the Gulf Cooperation Council and Emerging Asia will reach AED 2,779.80 billion by 2030, almost double the 2021 levels. This growth comes from mutually beneficial alliances in:

Technology transfer initiatives
Infrastructure development
Energy sector collaboration
Digital economy integration

International Deal Flow Analysis

Cross-border activity flourished in the first nine months of 2024. International transactions made up 52% of deal volume and 73% of total value. The UAE emerged as the primary recipient of foreign direct investment and represented 60% of inbound M&A volume and 67% of value.

Asia and North America together contributed 46% of outbound deal volume and 77% of value. This balanced approach worked especially well in technology and professional services sectors. International partnerships accelerated innovation and knowledge transfer in these areas.

The US-UAE Business Council helped build these cross-border relationships through cooperative initiatives between major US companies and UAE stakeholders. This partnership promoted technological innovation and professional service integration, which created a strong foundation for international cooperation.

Inbound investments grew remarkably with deal volume up by 20% year-over-year and value increasing by 47%. The United States and United Kingdom contributed 42% of total inbound M&A activity. This shows strong Western interest in MENA market opportunities.

The MENA merger and acquisition market showed exceptional strength through 2024. This period brought major changes to regional economic development. The Saudi Arabia and UAE’s mutually beneficial alliance has altered the map of investment dynamics. They drove 34% of total deal value and set new measures for cross-border collaboration. The region achieved record-breaking numbers with 522 deals worth $71 billion, which established its position as a global investment hub.

Sovereign wealth funds now act as powerful catalysts that deployed over AED 201.97 billion in key sectors. These funds strengthen the region’s dedication to economic diversification. Their investment strategy targets sustainable investments, technology integration, and infrastructure development, which points toward future-oriented growth plans.

The value of cross-border deals reached 73% of all transactions and expanded MENA’s global influence. Strong partnerships with international markets and strategic sector diversification support this remarkable growth path. These developments position the MENA region well for economic expansion and new investment opportunities over the last several years.