Business

The UAE’s mergers and acquisitions (M&A) market continues to demonstrate strong resilience despite ongoing geopolitical challenges across the Middle East, according to the latest Middle East M&A Market Analysis Q1 2026 report released by Ansarada.

The report revealed that the Middle East recorded 196 announced M&A deals worth a combined US$23.3 billion during the first quarter of 2026. While this represented a decline from the 207 deals valued at US$31.3 billion recorded during the same period in 2025, investor confidence across the region remains largely intact.

In the UAE, 33 deals worth US$2.2 billion were announced during Q1 2026, compared to 52 deals in the corresponding quarter of 2025. According to Ansarada, the decrease reflects a strategic recalibration of capital deployment rather than a decline in investor interest.

Justin Smith, Managing Director of Ansarada, said regional tensions may be influencing transaction timelines but have not diminished the appetite for dealmaking.

“The conflict may be reshaping deal timelines, but it’s not reshaping the region’s thirst for ongoing M&A activity. We remain confident in the long-term health of deal activity in the UAE, which we view as an enduring and critical hub for M&A in the region and beyond,” Smith said.

He added that significant capital remains available for deployment, while ongoing transactions are progressing with enhanced due diligence processes. According to Smith, the fundamental drivers supporting UAE deal activity remain strong despite market volatility.

Across the Gulf region, deal activity remained relatively stable. Saudi Arabia recorded 24 announced deals, slightly up from 23 during the same period last year. Oman reported seven deals worth US$535 million, while Qatar recorded four transactions and Kuwait completed three deals valued at US$24 million.

The report noted that M&A activity across the GCC continues to be supported by sovereign wealth fund investments, economic diversification programmes, and long-term infrastructure development strategies, rather than short-term market sentiment.

Ansarada highlighted that sovereign-backed investment initiatives continue to play a vital role in maintaining market stability, while regional economic reform agendas are helping sustain both domestic and cross-border investment activity.

From a sector perspective, technology emerged as the most active segment by deal volume, recording 68 transactions worth US$7.3 billion, driven by strong investment in artificial intelligence (AI), fintech, and enterprise technology.

The transportation sector led by deal value, generating US$8.2 billion across nine transactions, reflecting continued investment in strategic infrastructure projects.

Meanwhile, the energy and natural resources sector contributed US$2.2 billion through 18 deals, while healthcare generated US$1.9 billion across 19 transactions as governments continue investing in medical and life sciences capabilities.

The industrials sector also remained active, producing US$1.6 billion across 23 deals, supported by regional efforts to strengthen domestic manufacturing and industrial capacity.

Smith further noted that technology is becoming increasingly important in facilitating deal execution during periods of uncertainty. He explained that investors and acquirers are increasingly relying on advanced digital platforms to improve transparency, streamline due diligence, and manage transaction risks more effectively.

According to Ansarada, virtual data room technology is helping organisations maintain transaction momentum and improve execution certainty amid a rapidly evolving market environment.

Despite ongoing geopolitical challenges, the report concludes that the UAE remains one of the region’s most attractive M&A destinations, supported by strong economic fundamentals, strategic investment initiatives, and long-term growth prospects.

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