The UAE and Saudi Arabia have emerged as leading investment destinations in the MENA region.

In the first half of 2024, the UAE and Saudi Arabia emerged as top investment destinations in the MENA region, achieving 152 mergers and acquisitions (M&A) deals totaling $9.8 billion. The UAE registered the region's largest transaction when Clayton Dubilier & Rice, Stone Point Capital, and Mubadala Investment acquired Truist Insurance Holdings for $12.4 billion. According to the EY MENA M&A Insights H1 2024 report, MENA M&A activity overall saw a slight increase with 321 deals worth $49.2 billion, marking a 1% growth in deal volume and a 12% rise in deal value compared to H1 2023.

Sovereign wealth funds such as Abu Dhabi Investment Authority (Adia), Mubadala, and Saudi Arabia's Public Investment Fund (PIF) were pivotal in driving M&A activity, supporting their countries' economic strategies. Cross-border M&As were particularly significant, contributing to 52% of the total deal volume and 87% of the deal value, reflecting a 15% year-on-year increase in value. The US was the top target for MENA outbound investors, with 19 deals amounting to $16.6 billion, facilitated by the active role of the US-UAE Business Council.

The first half of 2024 also saw substantial domestic M&A activity, with 155 deals valued at $6.4 billion, a 13% increase from the previous year. The UAE and Saudi Arabia accounted for 61% of the total domestic M&A volume with 94 deals. Real estate, including hospitality and leisure, was the leading sector, driven by growing tourism, mega projects, and a rising middle class. The insurance sector also attracted significant investment, contributing to 47% of the total deal value, while the consumer products and technology sectors saw 47 domestic deals, representing 30% of the total volume.