Mergers and Acquisitions in the UAE | Riding the Wave of Record Growth

The emerging picture for mergers and acquisitions in the UAE is fast shaping up to become one of the most dynamic in the Middle East. M&A deals across MENA rocketed up 23% to around USD 69.1 billion during the first nine months of 2025, with the UAE and Saudi Arabia being the highlights of the surge. A testament to this growth is the establishment of the country’s reputation as a top investment hub on the regional stage, a destination of choice for deal-makers seeking expansion, diversification, and access to international markets.

In this article, however, we will review how mergers and acquisitions in the UAE have evolved, examining the sectors that are propelling the momentum and what businesses and investors need to consider to tap into the upcoming opportunity wave.

Strong Growth Momentum

Both in the GCC and among themselves, deal wave activity has increased sharply throughout the MENA region. Cross-border M&A accounted for more than half of total deal volume and nearly three-quarters of aggregate deal value, the highest figures in five years.

For the UAE, that reflects a good mix of both inbound and outbound deal activity. There were over 170 inbound transactions worth almost USD 30 billion recorded in the course of this period. The trend underscores how the UAE has allured international investors with a stable economy and an up-to-date infrastructure, and with pro-business policies.

Why the UAE? Key Drivers for Deal Activity

Several factors have fueled the exponential increase in mergers and acquisitions in the UAE:

• Economic diversification: As part of the long-term plan to economically decrease dependence on oil, various assets have emerged for investment: technology, logistics, manufacturing, and healthcare have now opened to both foreign and domestic investment.
• Government and regulatory support: The free zones of the country, openness to foreign ownership reform, and facilitating doing business have created conducive environments for the M&A space.
• Cross-border openness: The UAE continues to attract a considerable amount of foreign investment while at the same time increasing activity in outbound deals as local companies venture abroad.
• Sectoral transformation: Some of the more significant transactions in chemicals, energy, and technology indicate a shift toward innovation and sustainability.
• Sovereign wealth funds and GREs: State-backed entities are a crucial player in the deal-making space, ensuring liquidity, confidence, and a global footprint for UAE enterprises.

Taken together, these forces represent the reality of mergers and acquisitions being more than consolidation; they are a tactical advantage for future competitiveness and global integration.

Big Deals to Highlight

A host of such landmark transactions speaks volumes about the UAE’s centrality in regional M&A.

• OMV and Borealis acquired a controlling interest in Borouge for a sum close to USD 16.5 billion, making this one of the largest deals in the history of the region, thus far.
• Another point is whether the UAE addresses a fundamental economic consideration of acquiring a significant stake in any company, be it NOVA Chemicals, valued at more than USD 6 billion.

These headline-grabbing deals highlight how UAE-based firms are using mergers and acquisitions in the UAE to strengthen their international presence and align with major national economic strategies.

Sectoral Breakdown: Where the Action Is

M&A activity in the UAE does not restrict itself only to oil and gas. The nation is experiencing extensive diversification across various sectors:

• Chemicals: This industry continues to dominate regional deal value, supported by major energy conglomerates investing in downstream production.
• Technology:  Technology-related acquisitions are increasing astronomically on the back of digital transformation across the GCC.
• Healthcare: This sector attracts M&A interest due to the UAE’s vision of advanced medical services and private investments in healthcare.
• Financial services: A key theme remains consolidation in banks, fintech companies, and investment firms.
• Consumer and retail: Population growth and lifestyle spending maintain sustained interest from regional and global investors.

This sectoral diversity thus guarantees balance between traditional and emergent sectoral trajectories for M&A in the UAE.

Inbound vs. Outbound Flows

The UAE M&A market shares a healthy mix of inbound and outbound transactions.

• Inbound deals: The UAE offers foreign investors tax-friendly policies, a strategic location, and regulatory transparency.
• Outbound deals: Local enterprises are acquiring more and more overseas – in Europe as much as in Asia – to diversify their portfolios, gain access to new technology, and target new markets.

This dual role strengthens the UAE’s standing as a regional hub and an international player in M&A.

Implications for Businesses and Investors

The rapid M&A growth in the UAE presents opportunities as well as hardships.

Opportunities

• High-growth sectors: Fast-growing sectors such as technology, energy transition, and healthcare, for sure, provide good targets for acquisition.
• Strategic positioning: They offer expanded scale, new geography, or acceleration of innovation initiatives through M&A.
• Government incentives: Conducting business is made easier by friendly policies, digital platforms, and international trade agreements.
• Liquidity and exit options: Deal mechanisms that are quite active offer a clear way to both enter and exit from an investment.

Challenges

• Valuation pressure: Inflation of pricing due to heated competition among bidders for select prime assets.
• Regulatory complexity: For cross-border deals, different laws, taxes, and ownership structures will have to be carefully navigated.
• Integration risk: Post-merger cultural and operational integration is a critical success factor.
• Macroeconomic and geopolitical shifts:  Global market volatility and regional uncertainty can modify deal timing and appetite.

Understanding these factors is essential for anyone engaging in mergers and acquisitions in the UAE market.

Best Practices for Executing M&A in the UAE

1. Align with strategic goals – Every acquisition needs to fit into long-term growth objectives and should not be seen as mere short-term expansion.
2. Conduct detailed due diligence – Comprehensive assessments of financial, regulatory, tax, and ESG matters must be carried out.
3. Plan for post-merger integration – Early planning of the integration strategy allows for the implementation of the best methods and an effective integration of the two companies.
4. Leverage UAE frameworks – The free zones, tax treaties, and investment incentives should be made use of to allow for the best deal structuring.
5. Focus on value creation – Successful M&As essentially hinge on achieving synergistic value and sustainable profitability, not just a transaction count.
6. Adopt a global mindset – The UAE acts as a gateway to far-reaching international expansion.

What’s Next for the UAE M&A Market?

The outlook for mergers and acquisitions in the UAE remains very bright for the coming years. Events to follow include:

• Sustained diversification: The push into renewable energy from AI and smart infrastructure works to continue the induction of deals.
• Tech-driven consolidation: Expect another round of acquisitions in digital platforms, fintech, and cybersecurity.
• Cross-border collaboration: More joint ventures and alliances between GCC companies and international companies.
• ESG influence: Environmental and social governance standards are gaining impetus and being factored into investment decisions.
• Valuation discipline: Despite enthusiasm, investors are expected to remain selective, focusing on strategic value over size.

Conclusion

The UAE’s rising mergers and acquisitions are a historical testimony to the success it has achieved in transforming itself into one of the global economic hubs. The strategic location, transparent regulations, and visionary leadership keep making it a magnet to receive world-class investments and unleash growth in multiple sectors.

It’s not only about the number of deals that give opportunity to companies and investors, but the manner in which they are carried out: simply, cleanly, and with long-term thinking. Be it a multinational looking for regional access or a local company on the radar for international growth, the UAE is an ideal backdrop for strategic mergers and acquisitions.

Studying the market with a magnifying glass today, needing knowledge of the entire book from valuation to integration, makes all the difference between making a great deal and a good one. The future is bright and promising for mergers and acquisitions in the UAE.