The 2024 merger and acquisition (M&A) market is ending the year much as it began—with anticipation for a break in the buyer-seller logjam, according to a report by Bain & Company.

The year has been marked by careful adaption as dealmakers accommodate the new realities of higher interest rates and intense regulatory scrutiny.

Overall deal value would reach $3.50 trillion by the end of 2024, up 15% year over year and consistent with mid-2010s levels. Global M&A deal volume is up 7% year over year, reversing a two-year decline.

The Middle East has played a key contribution in this global growth, with the region's strategic inbound and domestic M&A activity surging by 88% year-on-year (YoY) to reach $36 billion in the first 10 months (10M) of 2024. Sovereign wealth funds and government-related entities in Saudi Arabia and the UAE have led this robust performance, which aligns with broader global trends.

Middle East Head of Bain's Private Equity and Sovereign Wealth Fund practices, Grégory Garnier, said: “The Middle East’s exceptional M&A growth underscores the region’s transformation into a global investment powerhouse. Sovereign wealth funds and leading regional players are not only driving domestic opportunities but also capitalizing on international markets with strategic precision. The surge in high-value deals within energy, technology, and advanced manufacturing reflects a broader shift toward innovation and sustainability, positioning the Middle East as a key driver of global economic activity."

While globally, private equity deal value rose by 29% and venture capital increased by 30% YoY, the Middle East saw extraordinary sector-specific growth. Energy & Natural Resources, Technology, and Advanced Manufacturing Services reported YoY increases of approximately 140%, 90%, and 300%, respectively.

Navigating regulatory scrutiny and prolonged close periods

As challenges and litigation extended deal close timelines in 2024, nearly half (47%) of dealmakers said regulatory concerns impacted the types of deals their companies considered.

This dynamic was mirrored in the Middle East, where global investors increasingly prioritized the region due to its comparatively favorable regulatory environment.

Investments in European targets by Middle Eastern acquirers have grown by over 100% YTD compared to 2023, highlighting their strategic realignment toward regions offering better value and stability.

The largest deals globally and regionally showcased a clear focus on synergies. Scale deals accounted for 59% of total deal value in 2024 globally—the highest proportion since 2015—and were also dominant in the Middle East, reflecting the region’s emphasis on consolidating leadership in energy and advanced manufacturing.

Adapting strategies to new realities of higher interest rates

In response to persistently high interest rates, strategic acquirers globally have been more selective in their deals, requiring more concrete value creation.

Middle Eastern dealmakers exemplified this adaptability, leveraging both revenue and cost synergies in high-value transactions.

The region's strategic focus and disciplined approach continue to attract global capital.

Dealmakers increasingly rely on generative AI to save time and costs

Early adopters of generative AI reported significant efficiencies in 2024. Globally, one in five M&A practitioners has used the technology for sourcing, screening, and diligence.

The Middle East has been quick to adopt these tools as well, with dealmakers leveraging AI to streamline processes in a fast-growing and competitive market.

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