In the first half of 2024, the UAE and Saudi Arabia emerged as the top choices for investors, with 152 merger and acquisition deals totaling a disclosed value of $9.8 billion. This marked a slight uptick in M&A activity across the Mena region. The UAE's largest transaction involved the acquisition of Truist Insurance Holdings by Clayton Dubilier & Rice, Stone Point Capital, and Mubadala Investment for $12.4 billion. Both nations, being the largest Arab economies, were also prominent in the Mena region in terms of deal volume and value, according to the EY Mena M&A Insights H1 2024 report.
The Mena region saw a total of 321 M&A deals worth $49.2 billion, representing a 1.0 percent increase in deal volume and a 12 percent rise in deal value compared to H1 2023. Sovereign wealth funds like Abu Dhabi Investment Authority (Adia), Mubadala from the UAE, and the Public Investment Fund (PIF) from Saudi Arabia continued to spearhead regional deal activity to support their national economic strategies.
Brad Watson, EY Mena Strategy and Transactions Leader, noted that dealmaking began strongly in 2024 despite fluctuating oil prices, with a notable increase in cross-border M&A value. The UAE, with its business-friendly regulations and efficient legislative framework, was particularly favored. Watson also highlighted the strengthening of regional ties with Asian and European countries, alongside existing connections with the US, to access larger markets.
Cross-border M&As significantly impacted the region, accounting for 52 percent of the overall volume and 87 percent of the value, showing a 15 percent year-on-year growth in value. Domestic M&A activity comprised 48 percent of the total deals. The US remained the top target for Mena outbound investors with 19 deals totaling $16.6 billion, facilitated by active partnerships promoted by the US-UAE Business Council.
Ten of the highest-valued M&As in the Mena region during the first half of 2024 were in the GCC. Notable transactions included the acquisition of Truist Insurance Holdings for $12.4 billion by Clayton Dubilier & Rice, Stone Point Capital, and Mubadala Investment in February 2024, and the $8.3 billion investment by PAG, Mubadala, and Adia in Zhuhai Wanda Commercial Management Group in March 2024.
Insurance and real estate sectors attracted the most investment, accounting for 47 percent of the total deal value. Saudi Arabia led in both target and bidder country lists, with the UAE, Morocco, Bahrain, and Egypt also featuring prominently. Domestic deals in the first half of 2024 totaled 155 with a disclosed value of $6.4 billion, a 13 percent increase in activity. GCC entities were involved in 85 percent of these deals, with 94 deals occurring within or between the UAE and Saudi Arabia, representing 61 percent of the domestic M&A volume.
The real estate sector, including hospitality and leisure, dominated deal value with 15 deals worth $1.3 billion, driven by rising tourism and middle-class income. The consumer products and technology sectors saw 47 deals, making up 30 percent of the total domestic volume. Anil Menon, EY Mena head of M&A and Equity Capital Markets Leader, emphasized the resilience of regional M&A markets, supported by stable oil prices and ongoing infrastructure spending by local governments.
