The Middle East recorded one of its most dynamic periods of M&A activity in Q3 2025, marked by a surge in deal value despite a decline in overall transaction volume. Turkey, the Middle East, and Africa’s (TMEA) deal landscape, driven heavily by the Gulf’s economic resilience and strategic transformation, demonstrates the region’s growing influence in shaping EMEA’s broader M&A trajectory.

Market dynamics

Across the TMEA subregion, macroeconomic conditions showed signs of stabilization. While the region includes diversified markets, the Gulf stood out with particularly strong fundamentals. Fiscal positions remained robust even amid softer crude prices, thanks to firm oil export volumes supported by expanded capacity and downstream diversification. Non-oil activity in Saudi Arabia and the UAE continued to strengthen, propelled by heavy investment in infrastructure and energy-transition initiatives.

This economic backdrop underlined a striking pattern across EMEA in Q3 M&A activity: deal volume fell sharply, while deal value soared. A total of 248 transactions were announced across TMEA, a 20.3% year-on-year decline and the lowest quarterly deal count in years. Yet, despite fewer deals, aggregate value jumped 91% to €46.8bn, the largest volume-value divergence across all EMEA subregions.

Sectoral strength

The Middle East was central to this divergence, powered by a series of landmark transactions, particularly in technology and energy. The standout was Palo Alto Networks’ €21.3bn acquisition of CyberArk, a cybersecurity giant with deep Middle Eastern relevance and one of the most significant TMT transactions in EMEA history. This single deal contributed to a sevenfold rise in TMT value, pushing the sector’s total to €27.4bn, making TMT the dominant value generator in the region.

Energy, mining & utilities (EMU) also delivered a powerful jolt to deal value, recording €10.4bn, a 281.8% increase. One of the most notable Middle Eastern transactions driving this surge was the €9.4bn acquisition of a 49% stake in Jafurah Midstream Gas Company by a BlackRock GIP-led consortium. This landmark infrastructure deal aligns directly with Saudi Arabia’s long-term ambition to monetize midstream assets and accelerate the gas build-out under its industrial development plans.

Construction ranked third in terms of sector value, rising 131% to €2.3bn, reflecting ongoing government-led and private-operator initiatives to scale industrial capacity and deliver mega-infrastructure projects across the Gulf.

On a volume basis, TMT led with 70 deals, reflecting the region’s digital transformation momentum and the rise of software, cybersecurity, and cloud-services platforms. Business services followed with 43 deals, up 4.9% year-on-year, underscoring demand across logistics, outsourcing, and operational services. Meanwhile, financial services contracted significantly to 26 transactions, down 31.6%, reflecting regulatory tightening and volatility in credit conditions.

Domestic dealmaking

The Middle East also featured prominently in bidder activity. While Turkey accounted for the highest bidder volume in TMEA at 49, Middle Eastern strategic and sovereign players played a major role in high-value deal flow. In value terms, Saudi Arabia ranked second (€2.686bn) and the UAE ranked fifth (€859m), behind only the US and Israel in total outbound investment. This underlines the continued global ambition of Gulf investors and their role in the region’s consolidation push across energy, infrastructure, and technology.

Shaping the future

The Middle East is not simply participating in EMEA’s M&A rebound, it is actively shaping it. With strong government spending, strategic diversification, and sustained investor appetite, the region is poised to remain a powerhouse of high-value deals as 2025 progresses.

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Want to dive deeper into the numbers and sector insights? Read Deal Drivers: EMEA Q3 2025 and explore detailed analysis, heat charts, and deal pipelines for the Middle East and EMEA.