The Middle East recorded sustained merger and acquisition (M&A) activity in the first quarter with 196 deals valued at $23.3 billion being announced compared to 207 deals worth $31.3 billion last year, stated Ansarada, the AI virtual data room educated on 60,000+ transactions, in its latest Middle East M&A Market Analysis Q1 2026 report.
The UAE’s mergers and acquisitions (M&A) market continues to demonstrate resilience, retaining long-term investor confidence despite ongoing geopolitical uncertainty across the region, stated the report.
UAE accounted for 33 deals valued at $2.2 billion during the quarter, down from 52 deals in Q1 2025, representing a 37% decline in deal volume.
However, the report found that this reflects a recalibration of capital deployment strategies rather than a weakening of investor confidence.
Justin Smith, Managing Director, Ansarada, said: "The conflict may be reshaping deal timelines, but it’s not reshaping the region’s thirst for ongoing M&A activity. We remain confident in the long-term health of deal activity in the UAE, which we view as an enduring and critical hub for M&A in the region and beyond."
Smith said: "While volatility continues, there’s a lot of dry powder out there waiting for the right time, while deals already in motion continue to progress with more rigorous diligence. The fundamental strategic drivers for M&A in the UAE remain strong, and dealmakers have to become more accustomed to operating in a new normal of volatility."
Across the broader Gulf, deal activity has also remained relatively stable. KSA recorded 24 announced deals, up slightly from 23 in Q1 2025.
Oman recorded seven deals valued at $535 million, while Qatar recorded four transactions and Kuwait recorded three deals worth $24 million.
Collectively, Gulf deal flow continues to be underpinned by sovereign-backed investment strategies, national transformation agendas and long-term infrastructure priorities rather than short-term market sentiment. The GCC’s track record of economic resilience, seen particularly during Covid-19, continues to provide a strong basis for investor confidence.
While prolonged tensions may slow the pace of dealmaking over the short to medium term, they are unlikely to dent the region’s broader long-term trajectory.
The report also highlighted that sovereign wealth funds continue to act as a major stabilising force for regional dealmaking, while economic reform programmes and diversification agendas are sustaining cross-border investment momentum.
It further noted that Middle Eastern acquirers continue pursuing international partnerships and outbound acquisitions, reflecting sustained confidence in the region’s capital strength, strategic positioning and long-term growth outlook.
Sector performance across the Middle East remained robust during the quarter. Technology emerged as the leading sector by volume with 68 deals worth $7.3 billion, driven by continued investment into AI, fintech and enterprise technology.
Transportation led by value with $8.2 billion across nine transactions, highlighting sustained investment into strategic infrastructure. Energy and natural resources contributed $2.2 billion across 18 deals, while healthcare recorded $1.9 billion across 19 transactions as governments continue expanding medical and life sciences capabilities. Industrials generated $1.6 billion across 23 deals, driven by national ambitions to strengthen domestic manufacturing and industrial capacity.