EY MENA M&A report: 390 M&A deals valued at US$46.7b completed in H1 2026

• Following a cautious start to the year, market momentum built in Q2 2026 with deal value reaching US$25b, up from US$12.2b in Q2 2025
• Domestic deal value exceeded US$16b between March and June 2026, driven by large strategic transactions across key sectors
• May and June 2026 accounted for 61% of Q2 2026 deal volume and 79% of deal value, signaling improving market confidence

According to the latest EY MENA M&A Insights report, the MENA region recorded 390 M&A deals worth US$46.7b in H1 2026. While activity moderated compared to H1 2025 (434 deals worth US$58.8b) amid geopolitical developments, accelerating deal momentum in Q2 2026 reflected market resilience, supported by sustained domestic and outbound activity and continued sovereign investment.

This acceleration was particularly evident towards the end of Q2 2026, with May and June 2026 accounting for 61% of Q2 2026 deal volume and 79% of deal value. Large transactions valued above US$500m contributed nearly three-quarters of total deal value between March and June 2026, reflecting renewed confidence in strategic, high-value investments.

Brad Watson, MENA EY-Parthenon Leader, says:
“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.”

Domestic and outbound investment continue to drive activity

Domestic and outbound transactions remained the primary drivers of M&A activity during H1 2026. Domestic deal value accelerated significantly between March and June 2026, reaching US$16b – more than four times the value recorded during the same period last year – driven by several large transactions across real estate, power and utilities and technology. Government-related entities continued to play a leading role in domestic dealmaking, reinforcing ongoing investment in infrastructure and national transformation programs.

Outbound investment also remained resilient, with 119 deals worth US$25.5b completed during the first half of the year. Regional investors continued to pursue strategic opportunities across technology, transportation, financial services and energy-related sectors, while the UAE and Saudi Arabia remained the region's most active outbound investors. Landmark transactions included Dubai Aerospace Enterprise's acquisition of Macquarie AirFinance for US$7b, and Saudi Electronic Gaming Holding Company's acquisition of Shanghai Moonton Technology for US$6b.

Anil Menon, MENA EY-Parthenon Head of M&A and Equity Capital Markets Leader, says:
"The first half of 2026 reflects a disciplined investment environment, with investors continuing to prioritize transactions that support long-term strategic objectives. While geopolitical developments have influenced the pace of inbound activity, domestic and outbound investment has remained resilient, supported by strong corporate balance sheets, sovereign capital and continued investment across priority sectors. As market conditions continue to stabilize, we expect strategic, high-quality assets to remain at the center of M&A activity across the region."

Technology and sovereign capital continue to shape M&A activity

While inbound investment moderated amid geopolitical uncertainty, technology remained a priority for investors, accounting for the largest share of inbound deal value during March to June 2026. Investor interest remained focused on AI-driven solutions, enterprise digitalization, software platforms and technology-enabled business services, underscoring the sector's strategic importance across the region. The UAE continued to lead as MENA's preferred destination for inbound investment, supported by its diversified economy and business-friendly regulatory environment.

Sovereign wealth funds (SWFs) and government-related entities remained central to regional dealmaking throughout the first half of the year, continuing to deploy capital across strategic sectors in line with long-term economic diversification agendas.

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