Prime Highlights
- Technology led Middle East M&A by volume with 68 deals worth $7.3 billion, driven by AI and fintech investment.
- Sovereign wealth funds continue to act as a major stabilising force for regional dealmaking activity.
Key Facts
- Ansarada is an AI-powered virtual data room platform trained on more than 60,000 transactions globally.
- The UAE recorded a 37% decline in deal volume in Q1 2026, with 33 deals compared to 52 in the same quarter last year.
Background
Compared to the previous year, when there were 207 transactions totaling $31.3 billion, the Middle East saw 196 mergers and acquisitions transactions totaling $23.3 billion during the first quarter of 2026. This information was culled from the recent release of Ansarada’s Middle East M&A Market Analysis report.
The UAE continued to be one of the main hotbeds for deals, with 33 transactions totaling $2.2 billion in value for the quarter. This is lower than the 52 deals in the first quarter of 2025. However, Ansarada said this reflects a shift in how investors are deploying capital rather than a loss of confidence in the market.
Geopolitical pressures are changing deal timescales, but not the region’s desire for M&A activity, according to Justin Smith, Managing Director of Ansarada. He noted that significant capital remains available and is waiting for the right conditions, while deals already underway continue to progress with greater diligence.
Across the wider Gulf, deal activity stayed relatively stable. Saudi Arabia recorded 24 deals, up slightly from 23 in the previous year. Seven deals for $535 million were recorded in Oman, four deals were made in Qatar, and there were three deals for $24 million in Kuwait.
Sovereign wealth funds continued to provide stability to regional deals, and the reforms in the economy sustained the investment trend.
Technology led the pack with 68 deals worth $7.3 billion, driven by investments in artificial intelligence, fintech and enterprise technology. With nine agreements totaling $8.2 billion, transportation led by value. Energy, healthcare, and industrials also recorded strong activity during the quarter.
Ansarada said prolonged tensions may slow dealmaking in the short term but are unlikely to affect the region’s long-term growth trajectory.
