M&A Report 2026 – UAE 
Redefining Deal-Making in a Maturing Capital Market 

Global M&A has transitioned from a period of cautious recalibration to one defined by deliberate, strategy-led capital deployment. The volatility and valuation resets of recent cycles have given way to a more structured deal environment, where transactions are increasingly anchored in long-term transformation priorities rather than short-term opportunism. 

MS Kapital’s M&A Report 2026 provides a comprehensive analysis of this transition, with particular focus on the Middle East’s emergence as one of the most resilient and strategically active M&A markets globally. From sovereign-backed platform acquisitions to cross-border expansion and sector-led consolidation, 2025 marked a defining period for capital deployment across the Middle East. 

2025 Global M&A Review and 2026 Outlook 

In 2025, global M&A activity rebounded meaningfully, with total announced deal value reaching approximately USD 4.81 trillion. The recovery was led by larger strategic transactions and megadeals, while mid-market activity showed gradual reactivation. Strategic acquirers drove overall activity, and private equity participation strengthened as financing conditions improved and valuation gaps narrowed. 

The Middle East emerged as one of the most resilient markets globally, with deal volumes rising approximately 19% in the first half of 2025, even as global volumes declined by around 9%. Strategic deal value in the region increased 37% year-on-year, and within EMEA, Middle East deal value more than doubled to approximately USD 104 billion. Sovereign capital deployment, diversification agendas, and cross-border expansion continue to position the region at the center of global capital flows in 2026. 

The report provides structured insights across the following areas: 

• Global M&A performance in 2025, including deal value and volume dynamics, megadeal activity (70+ transactions above USD 10bn), strategic versus private equity participation, valuation normalization, and the evolution of financing structures. 
• A Middle East deep dive covering sovereign- and strategic-led transactions, outbound expansion into Europe, North America, and Asia, sector concentration across Technology, Energy & Infrastructure, Financial Services, Healthcare, and Industrials, as well as privatization and PPP-driven pipelines. 
• Sector-specific intelligence across technology and AI infrastructure, energy transition platforms, financial services consolidation, healthcare integration, and industrial transformation, with emphasis on capability acquisition and long-term positioning. 
• A curated review of notable 2025 transactions illustrating digital capability building, energy transition scale-up, financial services platform creation, healthcare consolidation, and international expansion by Middle Eastern acquirers. 
• Valuation and financing trends, including stabilization and selective multiple expansion, reopening of leveraged finance markets, growth of private credit and structured capital, elevated global private equity dry powder (above USD 2 trillion), and emerging exit momentum into 2026. 
• A forward-looking 2026 outlook addressing financing normalization, expanding cross-border flows, continued Middle East outbound deployment, sector leadership trends, and key risks such as geopolitical uncertainty, regulatory scrutiny, and capital market volatility. 

As M&A evolves from cyclical recovery toward structural transformation, capital allocation is increasingly aligned with digital enablement, sustainability objectives, portfolio optimization, and strategic clarity. 

For boards and executive teams, 2026 will require disciplined capital deployment, early positioning on high-quality assets, flexible financing strategies, and strengthened cross-border execution capabilities. 

MS Kapital’s M&A Report 2026 provides a comprehensive, data-driven foundation to support informed decision-making in the UAE environment. 

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