UAE & Saudi Arabia Lead MENA Outbound Investment Activity

The United Arab Emirates and Saudi Arabia remained the Middle East and North Africa's most active outbound investors during the first half of 2026, according to EY's latest MENA M&A report, as cross-border investment held firm despite a more cautious geopolitical environment.

EY recorded 390 completed mergers and acquisitions worth $46.7 billion across the region during the six-month period. While activity declined from the 434 deals valued at $58.8 billion recorded in the first half of 2025, the consultancy said investor confidence strengthened toward the end of the second quarter despite headwinds from the US-Iran conflict.

Outbound investment remained resilient, with 119 deals worth $25.5 billion completed during the period. The UAE and Saudi Arabia led overseas acquisitions, targeting opportunities in technology, transportation, financial services and energy, with notable transactions including Dubai Aerospace Enterprise's $7 billion acquisition of Macquarie AirFinance and Saudi Electronic Gaming Holding Co.'s $6 billion acquisition of Shanghai Moonton Technology.

EY also found that domestic transactions remained a major growth driver, with deal value climbing to $16 billion between March and June—more than four times the level recorded during the same period last year. Large strategic investments in real estate, power and utilities, and technology underpinned the increase, while technology also attracted the largest share of inbound investment, driven by demand for AI, enterprise digitalisation, software platforms and technology-enabled business services.

The consultancy noted that May and June accounted for 61% of second-quarter deal volume and 79% of deal value, suggesting improving market confidence as conditions stabilised. It also highlighted the continued role of sovereign wealth funds and government-related investors, including ADIA, PIF and Mubadala, in backing strategic investments aligned with long-term economic diversification plans.