Sovereign Wealth Funds Continue to Drive M&A Activity in MENA

Amidst a challenging macroeconomic climate, government-backed funds emerged as the driving force behind dealmaking in the Middle East last year.

According to Bain & Company's latest report, sovereign wealth funds (SWFs) accounted for a staggering 86% of the total value of mergers and acquisitions (M&As), injecting approximately US $81.7 billion into the region's investment arena.

This investment surge is increasingly directed towards accelerating the energy transition, aligning with Middle Eastern countries' ambitious net-zero targets for 2050 or 2060.

Saudi Arabia and the UAE are leading the charge in investing in renewable energy and technologies that support decarbonization.

This transition not only underscores the region's commitment to combating climate change but also impacts M&A strategies and portfolio management, emphasizing the integration of environmental considerations into investment decisions.