MENA M&A Hits $46.7B in H1 2026, Q2 Shows Strong Recovery

The Middle East and North Africa (MENA) mergers and acquisitions arena demonstrated robust resilience in the first half of 2026, tallying 390 transactions valued at approximately $46.7 billion. Despite initial headwinds from global geopolitical shifts, the latter part of the period, particularly the second quarter, witnessed a significant upswing in deal-making momentum. This acceleration was largely fueled by substantial domestic and outbound investments, underscoring the region's strategic economic diversification efforts.

Analysis from EY's MENA M&A Insights report reveals that the surge in activity was concentrated in May and June, which collectively accounted for over 60% of the quarter's deal volume and nearly 80% of its total value. This concentration highlights a renewed investor confidence in high-value, strategic acquisitions, with transactions exceeding $500 million contributing a dominant share to the overall deal value during this accelerated phase.

Domestic consolidation and strategic international expansion were the primary engines driving MENA's M&A performance. Domestic deal values saw a remarkable fourfold increase year-over-year in Q2, reaching an estimated $16 billion. This growth was propelled by significant activity in sectors such as real estate, power and utilities, and technology. Government-related entities played a pivotal role, channeling capital into infrastructure development and national strategic initiatives.

Outbound investment also maintained its strength, with 119 deals worth $25.5 billion finalized in H1 2026. Regional players actively sought opportunities in technology, transportation, financial services, and energy. Notable outbound transactions included Dubai Aerospace Enterprise's acquisition of Macquarie AirFinance for $7.0 billion and Saudi Electronic Gaming Holding Company's purchase of Shanghai Moonton Technology for $6 billion. These moves signal a clear strategy for regional leaders to expand their global footprint and technological capabilities.

The United Arab Emirates continued to solidify its position as the region's premier destination for inbound capital, benefiting from its diversified economic base and supportive regulatory framework. While inbound deal value saw some moderation due to global uncertainties, technology remained a key focus, particularly in areas like AI-driven solutions and enterprise digitalization. Sovereign wealth funds and government-backed entities, including ADIA, PIF, and Mubadala, were instrumental in shaping the M&A landscape, deploying capital aligned with long-term economic diversification agendas.

Brad Watson, MENA EY-Parthenon Leader, commented on the period's performance, stating, "The first half of 2026 has shown the strength and resilience of MENA’s M&A market, with strategic investors continuing to pursue long-term growth opportunities despite a more measured global investment environment. Strong domestic capital deployment, active sovereign investors and the region’s continued focus on economic diversification have helped sustain deal activity, while improving momentum towards the end of the second quarter reflects growing confidence in the region’s long-term investment outlook." This sentiment is echoed by Anil Menon, MENA EY-Parthenon Head of M&A and Equity Capital Markets Leader, who emphasized the disciplined investment approach prioritizing strategic objectives.