The Middle East M&A market continued to demonstrate remarkable resilience in the first half of 2026, with deal activity expanding despite geopolitical tensions, market volatility and shifting global economic conditions. While many regions experienced slower dealmaking, the Middle East was among the few markets to report an increase in transaction volume, highlighting the strength of its economic transformation agenda and investor confidence in long-term growth opportunities.
Deal volume increased from 57 transactions in H2 2025 to 67 transactions in H1 2026, while total deal value remained broadly stable at approximately USD 6.8 billion. Rather than being driven by a handful of large transactions, growth was supported by a broader range of mid-market deals across sectors and geographies, reflecting a more mature and diversified M&A landscape.
Technology, industrials and business services lead activity
Investor appetite remained strongest in sectors aligned with economic diversification and long-term value creation.
Technology, Media and Telecommunications (TMT) remained the most active sector, recording 18 completed transactions. Demand continued to focus on scalable digital platforms, technology-driven solutions and infrastructure supporting digital transformation. Meanwhile, Industrials & Chemicals recorded significant growth, with transaction numbers increasing from nine to fourteen deals. Business Services also remained active, supported by ongoing regional expansion strategies and corporate transformation initiatives.
Notable transactions during the period included:
Dealmaking momentum extends across the wider GCC
While the UAE and Saudi Arabia continued to anchor many of the region's largest transactions, the report also highlights notable activity in other Middle Eastern markets. Transactions recorded in Qatar, alongside activity in Lebanon, demonstrate sustained cross-border investor interest in strategic assets across the broader region. Together with ongoing economic diversification programmes being pursued across GCC economies, these developments reinforce the growing depth and interconnectedness of the Middle East's investment landscape.
Private equity continues to gain ground
Private equity activity strengthened further during the first half of 2026, with deal volume rising from 12 to 15 transactions, the highest level recorded since 2022. Aggregate deal value approached USD 1 billion, underscoring the growing confidence among investors pursuing scalable platforms, resilient business models and regional expansion opportunities.
Investment activity was particularly visible in technology, digital infrastructure and mobility sectors. Transactions involving Property Finder, CargoX and Advanced Digital Gaming Technology Holdings demonstrate the continued attraction of technology-led businesses for both financial and strategic investors.
Sovereign wealth funds remain a powerful force
One of the defining themes of the region's investment landscape remains the influence of sovereign wealth funds.
During H1 2026, GCC sovereign wealth funds invested approximately USD 14.8 billion across 42 Middle East transactions. Globally, GCC sovereign wealth funds deployed USD 53.9 billion across 108 deals, reinforcing their position as major providers of long-term capital. Mubadala Investment Company remained the world's most active sovereign wealth fund during the period.
Rather than pursuing short-term opportunities, sovereign investors increasingly focused on strategic sectors including real estate, technology, infrastructure and economic transformation projects.
Saudi Arabia and the UAE continue to anchor regional activity
The UAE continued to play a leading role in regional dealmaking, accounting for a significant share of high-value transactions, particularly within TMT, Business Services and Financial Services. Several of the report's most notable transactions were UAE-based, reinforcing the country's position as a regional hub for investment, innovation and cross-border deal activity.
Saudi Arabia also maintained strong momentum, with deal activity concentrated across Industrials & Chemicals, Healthcare and Leisure. The Kingdom remains a major driver of regional M&A activity, supported by economic diversification initiatives and continued investment aligned with long-term national transformation objectives. The report also identifies Saudi Arabia as the region's leading IPO market during the period.
Outlook: energy and industrial opportunities coming into focus
Looking ahead, BDO's deal pipeline analysis suggests a shift in future activity.
While TMT led completed dealmaking during H1 2026, the strongest pipeline opportunities for H2 2026 are concentrated in Energy, Mining & Utilities and Industrials & Chemicals, which together account for more than half of anticipated activity. Financial Services is also expected to remain a meaningful contributor to deal flow.
Despite ongoing geopolitical uncertainty, continued government investment programmes, diversification strategies and private-sector participation are expected to support dealmaking across the region during the remainder of the year.
How can BDO Qatar support your M&A strategy?
As Qatar continues to invest in economic diversification and private sector development, mergers, acquisitions and strategic investments can support long-term business growth and value creation.
BDO Qatar's Corporate Finance & Transaction Advisory team supports organisations throughout the transaction lifecycle, from feasibility studies, business valuations and financial due diligence to mergers and acquisitions, capital raising and transaction execution. Whether you are evaluating an acquisition, preparing your business for sale or exploring strategic investment opportunities, our specialists provide practical, commercially focused advice tailored to your business objectives.
Explore the full report
For a deeper analysis of Middle East M&A trends, sector activity, investor sentiment and regional deal flow forecasts, explore the latest edition of BDO Horizons 2026 Issue 2. The report provides valuable insights into the forces shaping the region's evolving investment landscape and emerging opportunities across key sectors.
Deal volume increased from 57 transactions in H2 2025 to 67 transactions in H1 2026, while total deal value remained broadly stable at approximately USD 6.8 billion. Rather than being driven by a handful of large transactions, growth was supported by a broader range of mid-market deals across sectors and geographies, reflecting a more mature and diversified M&A landscape.
Technology, industrials and business services lead activity
Investor appetite remained strongest in sectors aligned with economic diversification and long-term value creation.
Technology, Media and Telecommunications (TMT) remained the most active sector, recording 18 completed transactions. Demand continued to focus on scalable digital platforms, technology-driven solutions and infrastructure supporting digital transformation. Meanwhile, Industrials & Chemicals recorded significant growth, with transaction numbers increasing from nine to fourteen deals. Business Services also remained active, supported by ongoing regional expansion strategies and corporate transformation initiatives.
Notable transactions during the period included:
- ATIF Holdings' acquisition of UAE-based Metra Group in a transaction valued at approximately USD 450 million.
- Dr Soliman Abdul Kader Fakeeh Hospital Company's acquisition of Dr Mohammad bin Rashed Al-Faqih & Partners in Saudi Arabia for approximately USD 425 million.
- Dubai Taxi Company's acquisition of National Taxi in the UAE for approximately USD 395 million.
Dealmaking momentum extends across the wider GCC
While the UAE and Saudi Arabia continued to anchor many of the region's largest transactions, the report also highlights notable activity in other Middle Eastern markets. Transactions recorded in Qatar, alongside activity in Lebanon, demonstrate sustained cross-border investor interest in strategic assets across the broader region. Together with ongoing economic diversification programmes being pursued across GCC economies, these developments reinforce the growing depth and interconnectedness of the Middle East's investment landscape.
Private equity continues to gain ground
Private equity activity strengthened further during the first half of 2026, with deal volume rising from 12 to 15 transactions, the highest level recorded since 2022. Aggregate deal value approached USD 1 billion, underscoring the growing confidence among investors pursuing scalable platforms, resilient business models and regional expansion opportunities.
Investment activity was particularly visible in technology, digital infrastructure and mobility sectors. Transactions involving Property Finder, CargoX and Advanced Digital Gaming Technology Holdings demonstrate the continued attraction of technology-led businesses for both financial and strategic investors.
Sovereign wealth funds remain a powerful force
One of the defining themes of the region's investment landscape remains the influence of sovereign wealth funds.
During H1 2026, GCC sovereign wealth funds invested approximately USD 14.8 billion across 42 Middle East transactions. Globally, GCC sovereign wealth funds deployed USD 53.9 billion across 108 deals, reinforcing their position as major providers of long-term capital. Mubadala Investment Company remained the world's most active sovereign wealth fund during the period.
Rather than pursuing short-term opportunities, sovereign investors increasingly focused on strategic sectors including real estate, technology, infrastructure and economic transformation projects.
Saudi Arabia and the UAE continue to anchor regional activity
The UAE continued to play a leading role in regional dealmaking, accounting for a significant share of high-value transactions, particularly within TMT, Business Services and Financial Services. Several of the report's most notable transactions were UAE-based, reinforcing the country's position as a regional hub for investment, innovation and cross-border deal activity.
Saudi Arabia also maintained strong momentum, with deal activity concentrated across Industrials & Chemicals, Healthcare and Leisure. The Kingdom remains a major driver of regional M&A activity, supported by economic diversification initiatives and continued investment aligned with long-term national transformation objectives. The report also identifies Saudi Arabia as the region's leading IPO market during the period.
Outlook: energy and industrial opportunities coming into focus
Looking ahead, BDO's deal pipeline analysis suggests a shift in future activity.
While TMT led completed dealmaking during H1 2026, the strongest pipeline opportunities for H2 2026 are concentrated in Energy, Mining & Utilities and Industrials & Chemicals, which together account for more than half of anticipated activity. Financial Services is also expected to remain a meaningful contributor to deal flow.
Despite ongoing geopolitical uncertainty, continued government investment programmes, diversification strategies and private-sector participation are expected to support dealmaking across the region during the remainder of the year.
How can BDO Qatar support your M&A strategy?
As Qatar continues to invest in economic diversification and private sector development, mergers, acquisitions and strategic investments can support long-term business growth and value creation.
BDO Qatar's Corporate Finance & Transaction Advisory team supports organisations throughout the transaction lifecycle, from feasibility studies, business valuations and financial due diligence to mergers and acquisitions, capital raising and transaction execution. Whether you are evaluating an acquisition, preparing your business for sale or exploring strategic investment opportunities, our specialists provide practical, commercially focused advice tailored to your business objectives.
Explore the full report
For a deeper analysis of Middle East M&A trends, sector activity, investor sentiment and regional deal flow forecasts, explore the latest edition of BDO Horizons 2026 Issue 2. The report provides valuable insights into the forces shaping the region's evolving investment landscape and emerging opportunities across key sectors.