The UAE is a favorite destination for investors in the region

A report by Ernst & Young on mergers and acquisitions deals in the Middle East and North Africa revealed that the region recorded increases in deal activity during the first nine months of 2024, with 522 deals with a total value of $71 billion, a 9% increase in the number of deals. And 7% in value compared to the same period of the previous year.

According to the report, the UAE and Saudi Arabia came at the top of the list of destinations preferred by investors, due to their business-friendly policies, with 239 deals recorded with a total declared value of $24.5 billion.

The two countries were also among the most important countries participating in merger and acquisition activity in the Middle East and North Africa region in terms of the volume and value of deals, as they accounted for 52% of the volume of deals in the region, and 81% of their value.

In turn, sovereign wealth funds – such as the Abu Dhabi Investment Authority and Mubadala Company, in addition to the Public Investment Fund from Saudi Arabia – continued to lead merger and acquisition activity in the region, to support the economic strategies in both countries.

Cross-border mergers and acquisitions during the first nine months of 2024 played an important role in the volume and value of deals, as they contributed 52% of the deal volume and 73% of their total value.

The value of local M&A deals also increased on an annual basis by 44% to reach $19.3 billion, driven primarily by deals executed by government-linked entities in the oil, gas, metals, mining and chemicals sectors. Local M&A activity accounted for 48% of the total number of deals. Due to the increase in foreign direct investment flows in the private sector, the UAE alone accounted for 60% of the total number of incoming merger and acquisition deals, and 67% of their value.

Brad Watson, Head of Transactions and Strategy for the Middle East and North Africa at Ernst & Young, said: “The UAE remained a preferred investment destination during the first nine months of 2024, due to its business-friendly regulations and effective legislative framework.”