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Middle East Sees 52% Surge in M&A Activity, Reaching $29 Billion in 2024
Saudi Arabia and UAE Lead Growth, with Energy and Natural Resources Dominating Deal Value
In 2024, mergers and acquisitions (M&A) activity in the Middle East experienced a significant increase, with total deal value rising by 52% to $29 billion, as reported by Bain & Company.
This growth was primarily driven by sovereign wealth funds and government-related entities, with Saudi Arabia and the United Arab Emirates (UAE) accounting for the majority of the region's deal value.
The energy and natural resources sectors were particularly active, representing nearly 80% of the total M&A value.
A notable transaction was Saudi Aramco's acquisition of an additional 22.5% stake in Rabigh Refining and Petrochemical Company (Petro Rabigh) from Sumitomo Chemical for $702 million, making Aramco the majority shareholder with a 60% stake.
This move aligns with Aramco's strategy to expand its downstream operations.
Additionally, advanced manufacturing and technology sectors emerged as growing areas of investment, with technology-related M&A deals doubling in value.
Middle Eastern investors also expanded their reach into European markets, with deal values for targets rising by 120% in 2024. In contrast, investment activity in the Asia-Pacific region saw a decline, with strategic deal values dropping by 78% over the same period.
The surge in M&A activity in the Middle East was driven by sovereign wealth funds, economic diversification efforts, and investor-friendly reforms, with Saudi Arabia and the UAE leading in energy, technology, and industrial acquisitions.
This growth was primarily driven by sovereign wealth funds and government-related entities, with Saudi Arabia and the United Arab Emirates (UAE) accounting for the majority of the region's deal value.
The energy and natural resources sectors were particularly active, representing nearly 80% of the total M&A value.
A notable transaction was Saudi Aramco's acquisition of an additional 22.5% stake in Rabigh Refining and Petrochemical Company (Petro Rabigh) from Sumitomo Chemical for $702 million, making Aramco the majority shareholder with a 60% stake.
This move aligns with Aramco's strategy to expand its downstream operations.
Additionally, advanced manufacturing and technology sectors emerged as growing areas of investment, with technology-related M&A deals doubling in value.
Middle Eastern investors also expanded their reach into European markets, with deal values for targets rising by 120% in 2024. In contrast, investment activity in the Asia-Pacific region saw a decline, with strategic deal values dropping by 78% over the same period.
The surge in M&A activity in the Middle East was driven by sovereign wealth funds, economic diversification efforts, and investor-friendly reforms, with Saudi Arabia and the UAE leading in energy, technology, and industrial acquisitions.
