Middle East M&A Activity Reaches $23.3 Billion in Q1 2026

Ansarada, an AI virtual data room firm, reported 196 mergers and acquisitions worth $23.3 billion across the Middle East during the first quarter of 2026.

The total compares with 207 deals valued at $31.3 billion during the same period in 2025, reflecting a decline in both deal volume and value amid longer transaction timelines and increased due diligence requirements.

The UAE recorded 33 deals worth $2.2 billion during the quarter, down from 52 transactions in the first quarter of 2025, representing a 37% decline in deal volume. The report described the slowdown as a recalibration of capital deployment rather than a sign of weakening investor confidence.

Across the Gulf, deal activity remained relatively stable. Saudi Arabia recorded 24 announced transactions, up slightly from 23 a year earlier. Oman reported seven deals worth $535 million, while Qatar recorded four transactions and Kuwait registered three deals worth $24 million.

According to the report, regional dealmaking continues to be supported by sovereign-backed investment strategies, economic diversification programmes and long-term infrastructure priorities. Sovereign wealth funds were identified as a key stabilising force underpinning activity across the region.

Technology was the most active sector by deal volume, accounting for 68 transactions worth $7.3 billion, driven by continued investment in artificial intelligence, fintech and enterprise technology.

Transportation led all sectors by value, generating $8.2 billion across nine transactions, reflecting ongoing investment in infrastructure and logistics assets.

Energy and natural resources recorded $2.2 billion across 18 deals, while healthcare generated $1.9 billion through 19 transactions. Industrials accounted for 23 deals worth $1.6 billion as countries continued efforts to expand domestic manufacturing capacity.

The report noted that while geopolitical tensions may continue to affect transaction timelines in the short term, the region's long-term mergers and acquisitions outlook remains supported by economic reform programmes, diversification agendas and continued outbound investment by Middle Eastern buyers.