272 M&A Deals in the Region in the First Half

The latest PwC Middle East Deals Report for the first half of 2026 revealed that merger and acquisition (M&A) activity slowed during this period, with approximately 272 deals recorded, a decline of nearly 8% compared to the same period last year. The report noted that the United Arab Emirates and the Kingdom of Saudi Arabia maintained their positions among the region’s top deal markets.

Despite the downturn in key figures, indicators showed that the market remains resilient, with investors focusing on directing capital toward strategic sectors, technology-driven companies, and long-term value creation opportunities.

While geopolitical uncertainty and increased investor selectivity have generally constrained M&A activity, regional investors and sovereign wealth fund-linked entities continued to deploy capital with confidence, particularly in the energy, infrastructure, and technology sectors. Meanwhile, the technology, media, and telecommunications (TMT) sector led the region in deal activity, reflecting growing confidence in digital transformation and technology-enabled business models.

Greater Selectivity Without Compromising Ambitions

The Middle East recorded approximately 272 deals in the first half of 2026, including 103 deals in the UAE and 74 in Saudi Arabia, accounting for nearly 65% of the total deal volume in the region.

Deal values varied, with 151 deals valued at less than $100 million, 12 deals valued between $101 million and $500 million, and only one deal exceeding $500 million. While corporate buyers completed 167 acquisition deals, private equity activity declined to approximately 105 deals. Additionally, the number of deals in the financial services sector dropped from 75 in the first half of 2025 to 53 in the first half of this year.

Strategic Sectors Attract Long-Term Investments

The largest deals were concentrated in the utilities, energy, logistics, and operational infrastructure sectors. The standout transaction was Dubai Electricity and Water Authority’s (DEWA) acquisition of an additional 24% stake in Emirates Central Cooling Systems Corporation (Emirates Water and Electricity Company’s cooling arm) for $1.41 billion, making it the only deal to surpass the $500 million threshold.

The number of deals in the energy, utilities, and resources sectors rose from 15 last year to 22 this year. Other notable transactions included ACWA Power’s acquisition of a 32% stake in Al Shoaiba Water and Electricity Company for $224.8 million, and ADNOC Drilling’s acquisition of an 80% stake in MB Petroleum Services in Oman for $204 million.