The Middle East M&A market continued to outperform expectations during the first half of 2026, recording higher deal volumes despite a challenging geopolitical and economic environment. Supported by strong diversification initiatives, increasing private capital participation and sovereign investment activity, the region maintained positive momentum while several global markets experienced more subdued dealmaking conditions.
Total transaction volume increased from 57 deals in H2 2025 to 67 deals in H1 2026, while aggregate deal value remained stable at approximately USD 6.8 billion. The results reflect a broader base of mid-market transactions and growing investor confidence in the region's long-term growth prospects.
Meanwhile, GCC Sovereign Wealth Funds continued to play a critical role in supporting regional investment activity. During H1 2026, they invested approximately USD 14.8 billion across 42 Middle East transactions, further reinforcing the region's position as a global investment hub.
Looking ahead, Energy, Mining & Utilities and Industrials & Chemicals are expected to become increasingly prominent, suggesting the next phase of regional investment will be supported by infrastructure, industrial growth and energy-related opportunities.
Several notable UAE transactions featured prominently in the report, including:
Although no IPOs were completed in the UAE during H1 2026, the report notes that several planned listings were postponed rather than cancelled, suggesting continued strength in the future pipeline as market conditions improve.
Total transaction volume increased from 57 deals in H2 2025 to 67 deals in H1 2026, while aggregate deal value remained stable at approximately USD 6.8 billion. The results reflect a broader base of mid-market transactions and growing investor confidence in the region's long-term growth prospects.
Private equity and sovereign investors remain highly active
Private equity activity reached its strongest level since 2022, with deal volume increasing from 12 to 15 transactions and deal value approaching USD 1 billion. Investor attention remained focused on technology, digital infrastructure and scalable growth platforms.Meanwhile, GCC Sovereign Wealth Funds continued to play a critical role in supporting regional investment activity. During H1 2026, they invested approximately USD 14.8 billion across 42 Middle East transactions, further reinforcing the region's position as a global investment hub.
Sector trends highlight new growth areas
Technology, Media and Telecommunications (TMT) remained the most active sector during the period, followed by Industrials & Chemicals and Business Services. Together, these sectors accounted for the majority of completed transactions and reflect ongoing demand for digital transformation, innovation and business expansion.Looking ahead, Energy, Mining & Utilities and Industrials & Chemicals are expected to become increasingly prominent, suggesting the next phase of regional investment will be supported by infrastructure, industrial growth and energy-related opportunities.
UAE spotlight: a regional hub for innovation, investment and dealmaking
The UAE continued to anchor regional M&A activity during H1 2026, accounting for a substantial share of the Middle East's most significant transactions, particularly within Business Services, Financial Services and TMT.Several notable UAE transactions featured prominently in the report, including:
- ATIF Holdings' acquisition of Metra Group in a deal valued at approximately USD 450 million.
- Dubai Taxi Company's acquisition of National Taxi for approximately USD 395 million.
- Blackstone's acquisition of Advanced Digital Gaming Technology Holdings, valued at approximately USD 250 million.
- Investments in Property Finder by Mubadala and BECO Capital, highlighting continued confidence in the UAE's digital economy.
Although no IPOs were completed in the UAE during H1 2026, the report notes that several planned listings were postponed rather than cancelled, suggesting continued strength in the future pipeline as market conditions improve.