Saudi Arabia leads MENA in M&A target and bidder activity in 2024

The Kingdom of Saudi Arabia has emerged as a top destination for investors in the Middle East and North Africa (MENA) region, driven by business-friendly policies, according to Ernst & Young’s (EY) MENA M&A report for the first nine months of 2024. KSA also led MENA’s rankings for target and bidder countries in merger and acquisition (M&A) activity.

The report highlighted that 10 of the largest M&A transactions in MENA during the period were concentrated in Gulf Cooperation Council (GCC) countries. The most prominent deal was Saudi Aramco’s acquisition of a 22.5% stake in Rabigh Refining and Petrochemical Company from Japan’s Sumitomo Chemical for $8.9 billion.

KSA and the United Arab Emirates (UAE) recorded 239 deals with a combined value of $24.5 billion, accounting for 52% of the region’s deal volume and 81% of its value. These nations were among the most active in the MENA region, benefiting from strong investor confidence and government-backed initiatives.

Domestic Activity Climbs
The first nine months of 2024 saw 248 domestic deals in MENA, with a declared value of $19.3 billion, marking a 7% increase in deal activity. Gulf-based companies drove 81% of these transactions, underlining the high level of intra-regional M&A activity. Deals within and between KSA and the UAE accounted for 56% of the domestic total, with 139 transactions.

The technology and consumer products sector led in deal volume, registering 78 deals, or 31% of the total. In terms of value, the oil and gas and metals and mining sectors dominated, with 19 deals worth $10.9 billion. The oil and gas sector alone accounted for 46% of total domestic deal value.

Overall M&A Market Growth
The MENA region recorded 522 deals worth $71 billion during the first nine months of the year, representing a 9% rise in deal volume and a 7% increase in value compared to the same period in 2023.

Anil Menon, EY’s MENA M&A and Capital Markets Leader, said, “The MENA M&A market is very active. We expect to end the year with over 700 deals, approaching the five-year record of 750. This is a remarkable achievement given the uncertain geopolitical landscape and high capital costs.”

Brad Watson, EY’s MENA Transactions and Strategy Leader, attributed the growth to strategic policy shifts, the liberalization of investment regulations, and robust investor capital inflows. “This year has seen significant improvements in MENA M&A activity, reflecting the region’s growing attractiveness to investors and businesses seeking diversification and growth opportunities,” he said.