The Middle East recorded $23.3 billion in merger and acquisition (M&A) deals across 196 transactions in Q1 2026, down from $31.3 billion across 207 deals a year earlier, according to Ansarada’s Middle East M&A Market Analysis Q1 2026 report.
The UAE accounted for 33 deals valued at $2.2 billion during the quarter, down from 52 deals in Q1 2025 — a 37% decline in deal volume.
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.
— Justin Smith, Managing Director, Ansarada
Ansarada, which bases its analysis on 60,000+ transactions and AI-powered virtual data rooms, said the drop reflects a recalibration of capital deployment strategies rather than a weakening of investor confidence.
Justin Smith added: “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.”
Gulf deal activity held steady
Saudi Arabia recorded 24 announced deals, up slightly from 23 in Q1 2025. Oman saw seven deals valued at $535 million. Qatar recorded four transactions, and Kuwait logged three deals worth $24 million.
The report noted Gulf deal flow remains underpinned by sovereign-backed investment strategies, national transformation agendas, and long-term infrastructure priorities — not short-term market sentiment.
Sector breakdown
Technology emerged as the leading sector by volume across the Middle East, with 68 deals worth $7.3 billion, driven by AI, fintech, and enterprise technology investment.
Transportation led by value, with $8.2 billion across nine transactions, reflecting continued infrastructure investment. Energy and natural resources contributed $2.2 billion across 18 deals. Healthcare recorded $1.9 billion across 19 transactions as governments expand medical and life sciences capabilities. Industrials generated $1.6 billion across 23 deals, supported by national ambitions to strengthen domestic manufacturing.
The report also highlighted sovereign wealth funds as a major stabilising force, and noted continued Middle Eastern acquirer interest in international partnerships and outbound acquisitions.
Frequently asked questions
What is the UAE M&A deal volume for Q1 2026?
The UAE recorded 33 deals worth $2.2 billion in Q1 2026, down from 52 deals in Q1 2025.
Why did UAE M&A deals decline in Q1 2026?
The decline reflects a recalibration of capital deployment strategies rather than a weakening of investor confidence, according to Ansarada.
What is the total value of M&A deals in the Middle East for Q1 2026?
The Middle East recorded $23.3 billion in merger and acquisition deals across 196 transactions in Q1 2026.
