Sovereign wealth funds fuel robust growth across tech, energy, and healthcare, as the region bucks a global 9% decline in dealmaking.
The Middle East has emerged as a global bright spot in mergers and acquisitions (M&A) during the first half of 2025, defying a worldwide slowdown in dealmaking. According to PwC Middle East’s 2025 TransAct Mid-Year Update report, the region recorded 271 transactions between January and June, representing a 19% year-on-year increase, even as global M&A activity dropped by 9% over the same period.
Analysts attribute this resilience to the strategic role of sovereign wealth funds, which continue to channel capital into transformative sectors including technology, energy, and healthcare. These investments are not only driving diversification across Gulf economies but also reinforcing the Middle East’s position as a hub for future-focused growth.
The strong performance comes amid a more cautious global backdrop, where rising interest rates, regulatory hurdles, and geopolitical uncertainties have dampened appetite for large-scale deals. By contrast, the Middle East is benefiting from sustained government-led reforms, liquidity strength, and an expanding appetite for cross-border partnerships.
“While global M&A markets face headwinds, the Middle East continues to demonstrate exceptional momentum, with sovereign investors playing a pivotal role in reshaping the region’s economic landscape,” PwC said in its report.
With tech adoption accelerating, energy transition strategies gaining ground, and healthcare innovation attracting strong investor interest, experts believe the region is well-positioned to maintain its upward trajectory in the months ahead.
