Middle East M&A Soars 260% to $53 Billion on Energy & Tech

Middle Eastern dealmaking has returned at pace across energy, technology and industrials, according to a new analysis by Boston Consulting Group, which found that mergers and acquisitions values surged 260% year-on-year to $53 billion in the first nine months of 2025.

The report notes that activity rebounded strongly after falling earlier in the year to its lowest level since the Covid-19 shock. The recovery has been driven by a relatively small group of experienced acquirers and improving sentiment across sectors, as reflected in BCG’s M&A Sentiment Index, which points to increasingly positive expectations throughout the region. Confidence is strongest in technology and energy.

Energy continued to anchor regional dealmaking, with state-backed entities advancing domestic consolidation while pursuing targeted international acquisitions. The analysis highlights a $13.4 billion transaction that strengthened the UAE’s international expansion in chemicals, alongside a $693 million deal in power generation and utilities that underscored consolidation across the energy value chain. Monthly data shows Middle East M&A activity over the past three years has consistently exceeded historical averages, rebounding decisively after the pandemic-driven slowdown.

Alongside energy, industrial and digital transactions gathered momentum. A $925 million acquisition reflected accelerating consolidation in critical supply-chain infrastructure, while a $3.5 billion transaction—described by BCG as one of the largest global digital entertainment deals—signalled ambitions to build scale in gaming and digital entertainment. A further $855 million deal expanded the region’s telecommunications footprint into European markets.

The analysis adds that sovereign wealth funds play a central role in shaping this shift, acting as major sources of deal flow, andas long-term architects of economic diversification strategies that combine energy, digital ambition and industrial infrastructure.