The Middle East mergers and acquisitions market remained active during the first quarter of 2026. New figures show that investors continued to support major business transactions even as regional tensions and economic uncertainty remained in focus.
A total of 196 merger and acquisition deals were announced across the Middle East during the quarter. These transactions were valued at $23.3 billion. During the same period in 2025, the region recorded 207 deals worth $31.3 billion. While both the number and value of deals declined compared with last year, market activity remained strong by historical standards.
The United Arab Emirates continued to play an important role in regional dealmaking. The country recorded 33 transactions worth $2.2 billion in the first quarter. This compares with 52 deals during the same period a year earlier. The latest figure represents a 37 percent decline in deal volume.
Despite the drop, analysts say investor confidence in the UAE remains strong. Many investors are adjusting their capital deployment plans rather than stepping away from the market. Companies are taking more time to assess risks and complete detailed reviews before finalizing transactions.
Industry experts believe the UAE remains one of the most attractive destinations for mergers and acquisitions in the region. Strong financial markets, modern infrastructure, and supportive business policies continue to attract local and international investors.
Large amounts of investment capital also remain available. As a result, many investors are waiting for the right opportunities while continuing to evaluate potential deals. Transactions that are already underway continue to move forward with greater focus on due diligence and risk management.
Across the Gulf region, deal activity showed signs of stability. Saudi Arabia reported 24 announced deals during the quarter, slightly higher than the 23 transactions recorded during the same period last year. Oman recorded seven deals valued at $535 million. Qatar announced four transactions, while Kuwait recorded three deals worth $24 million.
The steady flow of transactions across the Gulf reflects the impact of long-term government strategies and national development plans. Many countries in the region continue to invest heavily in economic diversification, infrastructure development, and strategic industries. These priorities help support investor confidence even during periods of uncertainty.
Experts note that the Gulf region has demonstrated strong economic resilience in recent years. Previous global challenges showed the ability of regional economies to adapt and recover. This history continues to support positive investor sentiment and long-term planning.
Sovereign wealth funds also remain a major source of stability for mergers and acquisitions activity. These funds continue to support large investments and provide financial backing for strategic projects. Their involvement helps maintain confidence in regional markets and encourages continued dealmaking.
Cross-border investment activity remains another important trend. Companies and investors from the Middle East continue to pursue international partnerships and overseas acquisitions. This approach reflects confidence in the region’s financial strength, global position, and future growth prospects.
Technology was the most active sector during the quarter based on deal volume. The industry recorded 68 transactions with a total value of $7.3 billion. Continued investment in artificial intelligence, financial technology, and enterprise software supported strong activity across the sector.
Transportation led all sectors by total deal value. The industry generated $8.2 billion through nine transactions. Large infrastructure investments and strategic projects played a key role in this performance.
Energy and natural resources contributed $2.2 billion through 18 deals. Healthcare generated $1.9 billion across 19 transactions as governments expanded medical services and life sciences capabilities. Industrial companies also performed strongly, recording $1.6 billion across 23 deals. Many governments continue to support manufacturing growth as part of broader economic development plans.
The latest results show that Middle East mergers deals remain supported by strong investment strategies, sovereign wealth funding, economic reforms, and growing demand for technology and infrastructure assets. While short-term challenges may affect deal timing, the region continues to offer attractive opportunities for long-term investors.
