Saudi Arabia leads “integration and acquisition” in the Middle East with 8.9 billion dollars deals

An economic report continued to continue the sovereign wealth funds, such as the Saudi Public Investment Fund, to lead the activity of integration and acquisitions in the Middle East and Africa, while Saudi Arabia has emerged as one of the main investment destinations.
According to the report, it was the second largest acquisition in the region during the year 2024 in the share of the Kingdom of Saudi Arabia, as Saudi Aramco acquired a 22.5% stake in Rabigh Refining and Petrochemical Company from the Japanese Sumitomo Company for $ 8.9 billion.

Saudi Arabia is a major investment destination

Saudi Arabia has emerged as one of the main investment destinations in the Middle East and Africa, as it acquired 318 deals with the total declared deals in 2024, at a value of $ 29.6 billion.
This strong performance reflects the attractiveness of the Saudi market for international investments, supported by economic reforms and expansion in non -oil sectors

Integration and acquisition deals

Integration and acquisition deals in the Middle East and North Africa region increased by 3% in the activity of deals during the year 2024, with 701 transactions compared to 679 transactions in the previous year.
The total value of deals in 2024 reached 92.3 billion dollars, an increase of 7% compared to the year 2023.
The Gulf Cooperation Council states dominated most of these deals, with 580 deals with a total value of $ 90 billion.
This growth was largely driven by major reforms in the capital markets, strategic changes in policies, and enhancing efforts to attract foreign investment.

Transcontinental deals

The transnational deals were the main driver of integration and acquisition deals in the Middle East and North Africa region, as they constituted 52% of the number of deals and 74% of their total value.
The report said: “In 2024, the Middle East and North Africa region witnessed positive developments in terms of merger and acquisitions, and the number of deals and their total value increased.”
He added: “The cross -border deals were the main driver of the activity of deals during the year, whether in terms of size or value, in light of the companies’ pursuit of growth opportunities and diversification of their operations.”

5 sub -sectors

He continued: “The five most important sub -sectors targeted with deals were insurance, asset management, real estate, hospitality, energy, facilities, and technology, in a direction indicating real interest in innovative solutions that the Middle East and North Africa can provide.”
The report said: “Moreover, there is a focus on strengthening regional relations with Asian and European countries, which allowed the countries of the Middle East and North Africa to reach larger and more developed markets,” the report said.
The deals issued during the year 2024 were the largest contributor to the total value of the declared integration and acquisition deals of 61%, with 199 transactions worth 56.6 billion dollars.
The Middle East and North Africa region maintained its position as one of the most attractive destinations for foreign direct investment.

163 deals

The number of deals received to the region increased in 2024, when 163 incoming transactions were recorded with a total declared value of $ 11.4 billion, which represents an increase of 18% in the number of deals and 42% in their value compared to 2023.
As for the sectors, the technology and consumer products sectors have acquired the largest share of the number of merger and acquisition deals with a 10% increase on an annual basis for the number of deals in both sectors.
The United States has emerged as the largest player from outside the region in the field of integration and acquisition deals in terms of the number and value of deals, with 48 deals with a total value of 4.6 billion US dollars.
The Kingdom of Saudi Arabia is also one of the favorite investment destinations in the region, as it acquired 318 deals of the total deals announced in 2024, at a value of $ 29.6 billion.
The two countries were also among the largest offers in the Middle East and North Africa, indicating their active participation in integration and acquisition deals.
The United States of America maintained the description of the preferred party for investors from the Middle East and North Africa, with 41 deals with a total value of $ 19.9 billion.
The Kingdom of Morocco booked a place for the five largest targeted countries and an introduction to offers in the region in terms of the size and value of deals during the past year, while Qatar, Bahrain, Egypt and Kuwait also joined the list of targeted and presented countries.

Local deals activity

The share of the merger and local acquisition deals was 48% of the total number of deals in 2024 by 339 transactions, compared to 333 transactions in 2023. The total value of these deals was 24.4 billion dollars.
The technology and consumer product sector has attracted increasing attention from investors, against the background of digital transformation and the development of consumer behavior in the region. The two sectors together contributed 35% of the total number of local deals.

The oil and gas sector

In a continuation of the emerging trend he witnessed last year, the oil and gas sector continued to export it in terms of the value of deals, with its singles with deals worth 9 billion dollars, representing 37% of the total value of local deals.
This is mainly due to the Saudi Aramco acquisition deal for a stake in Rabigh Refining and Petrochemical Company, which amounted to $ 8.9 billion.
The report said: “In 2024, the technology sector maintained its position as the most attractive sector for investors, as it acquired 23% of the total volume of incoming and local deals.”
“We live in a productive renaissance driven by technology and artificial intelligence, which will be reflected in the allocation of capital, integration and acquisitions,” added the report issued by Ernst Young.
He continued: “The record of deals (across various sectors) for the fiscal year 2025 remains very strong, with the expectation of the continuation of the investment momentum and attention to the existing assets in the Middle East and North Africa region.”