MENA M&A Deals Surge 149% to $115.5 Billion in First Half of 2025: LSEG

Saudi Arabia contributed 41% of MENA investment banking fees, followed by the United Arab Emirates at 35% and Qatar at 7%.

Things are moving fast in the Middle East and North Africa (MENA). Mergers and acquisitions reached $115.5 billion in the first half of 2025, a 149% increase from the previous year.

The London Stock Exchange Group (LSEG) reports that this is the highest first-half total since 1980, highlighting the region’s resilience in the face of global economic challenges. Deal volumes have increased by 16% annually, reaching their highest level in three years. MENA M&A has risen by 7% showing strong investor appetite.

Morgan Stanley defined momentum as a structural increase driven by regional strategic policy changes and regulatory improvements.

Deals in MENA reached $48 billion, 18% more than last year. Borealis AG’s $30.85 billion acquisition of Borouge PLC in the United Arab Emirates (UAE), still pending, is the biggest deal so far this year.

The UAE was the largest target country, with $39.8 billion in M&A inflows, followed by Saudi Arabia.

The General Authority for Competition approved a record 202 economic concentration requests in January, indicating the Kingdom’s efforts to improve its competitive business environment and a symptom of the ongoing momentum in M&A in Saudi Arabia.

Economic concentration approvals are needed to ensure that M&A do not create monopolies or interfere with market competition.

The most recent LSEG report states that the ADNOC-OMV merger involving Borouge and Borealis was a significant factor in the materials sector-dominated MENA M&A. It contributed 67% of the total deal value at $32.1 billion in the first half of the year.

In the first half of 2025, the value of stock and equity-related issuance in the MENA region was $7.6 billion, a 57% decrease from the previous year. 59% came from IPO, and the remaining 41% came from follow-on issuances.

These IPOs brought $4.5 billion, a 25% increase compared to the prior year.

Low-cost airline Flynas raised $1.1 billion on Saudi Arabia’s Tadawul exchange, the biggest IPO this year.

There was growth in the Kingdom’s IPO as the Capital Market Authority has implemented new frameworks, such as rules for special purpose acquisition companies, to increase funding and encourage private sector companies.

There was an increase in overall MENA bonds. The total issues in the first half were $86.8 billion, a 17% increase from the previous year and the largest amount since 1980.

The number of bond offerings increased by 17% annually, breaking all previous first-half records. Saudi Arabia was the most active issue, with 52% of total bond proceeds, followed by the UAE with 25% and Qatar with 8%.

In April, Fitch Ratings reported that sukuk accounted for 60.4% of $465.8 billion in Saudi Arabia’s debt capital market at the end of March, a 16% annual increase.

The Kingdom’s debt market will surpass $500 billion in outstanding value by the end of 2025, driven by solid economic fundamentals, diversified funding approaches, and ongoing progress under Vision 2030.

HSBC was the top MENA bond bookrunner, with $48.9 billion in proceeds or 10% market share.

LSEG estimated that the MENA area earned around 773.7 million in investment banking fees. It was the third-highest first-half total since 2000, but it was down 2% from the same period in 2024.

In the first half of the year, debt capital markets underwriting fees rose by 20% annually to $278.9 million.

On the other hand, stock market underwriting fees reduced 18% annually to a two-year low of $169.9 million.

M&A transactions earned advisory fees of 52% more than they did last year. Saudi Arabia contributed 41% of MENA investment banking fees, followed by the United Arab Emirates at 35% and Qatar at 7%.