Report: The UAE is the best destination for deals in the Middle East with a total of 63 deals worth $ 20.3 billion
Dubai, May 28/ WAM/ The UAE maintained its position as the best destination for deals in the Middle East and North Africa region during the first quarter of this year 2025, with a total of 63 deals worth $ 20.3 billion.
The UAE is still the preferred destination for foreign direct investment in the region 2025, as it acquired 53% of the total number of deals received and 99% of its total value, as Austria was the first investing country, with 94% of the total value of the deals, driven mainly with a large deal in the chemical sector.
This came in the report issued by Ernst and Young (EY) on “integration and acquisition deals in the Middle East and North Africa region”, which indicated that the region recorded an increase in the activity of deals during the first quarter of 2025, with 225 deals compared to 172 deals in the same period last year, which represents an increase of 31% in the number of deals on an annual basis. The total value of the deals announced in the first quarter of this year increased by 66% to reach 46 billion US dollars, compared to $ 27.6 billion in the first quarter of the year 2024.
The report pointed out that the cross -border integration and seizure operations during the first quarter of 2025 played an important role in the size and value of the deals, as 117 deals were recorded, representing 52% of the total number of deals, with a value of 37.3 billion US dollars, which represents 81% of the total value of the declared deals. The first quarter of 2025 has witnessed the highest activity of cross -border deals in terms of size and value compared to the same period in the past five years, as companies have increasingly sought to grow and diversify outside their local markets.
“In 2025 we witnessed a fixed flow of merger and acquisition deals, and the Middle East and North Africa region will continue to record a strong flow of deals during the remaining period of 2025, as these strong flows of deals come against the background of organizational reforms, the shift in policies, and positive expectations for the total economy, including This is to reduce interest rates and improve investor confidence. “
He added that this growth is reflected in the steady increase in the activity of local integration and acquisition deals, which contributed 48% of the total number of deals in the first quarter of 2025, and this growth is in line with the deals of integration and local acquisition with the expectations of the International Monetary Fund with the growth of the gross domestic product of the Middle East and North Africa region by 3.6% this year, also supported by strong momentum of activities Integration and acquisition around the world. Companies are working to restore their strategies to meet the needs of diversification and digital transformation and better integrate emerging technologies.
He stressed that the UAE maintained its position as the best destination that at the level of the Middle East and North Africa region, targeting deals in the first quarter of 2025, with 63 deals with a total value of $ 20.3 billion, while Kuwait ranked second in terms of deals revenues, with $ 2.3 billion, driven by two main deals in the sectors of various industrial products, energy and facilities.
During the first three months of 2025, Canada attracted the highest value of external deals from investors from the Middle East and North Africa, with 6.4 billion US dollars, while the United States remained the targeted destination in terms of the number of deals.
According to the report witnessed the activity of local integration and acquisition deals in the first quarter of 2025 in the Middle East and North Africa region by 20% in the number of deals, while the value of deals increased significantly to reach 8.7 billion US dollars compared to $ 1.69 billion in the first quarter of 2024.
The technology sector topped the activity of local integration and acquisitions in the Middle East and North Africa region during the first quarter of 2025, contributing 37% of the total value of local deals and 27% of their total number.
The inter -deals that included the UAE, Kuwait and Saudi Arabia accounted for 83% of the total value of local deals and 56% of their total number, highlighting the strong activity of integration and intercourse, especially in the technology, industries and real estate sectors.
The Middle East and North Africa continues to maintain its position as one of the most attractive destinations for foreign direct investment during the first few months of 2025, with the number of deals received by 21%, and an increase in value to 17.6 billion US dollars, compared to $ 2.5 billion in the first quarter of 2024.
The report pointed to the increase in the number of deals issued during the first three months of 2025, by 63% compared to the first quarter of 2024, to record 19.7 billion US dollars, a contribution of 43% of the total value of deals, while the UAE and Saudi Arabia topped the list of deals issued from the Middle East and North Africa, where they acquired 77% of the total number of these deals and 94% of their total value.
“Markets of deals in the Middle East and North Africa region have maintained their flexibility as the upcoming deals record in the Middle East and North Africa region for the rest of 2025 is a promising and strong record, as we expect to witness an increasing activity in the consumption and technology sectors Energy. Artificial intelligence will lead to fundamental transformations in the basic value, as we see a great specialization in technology.
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