Robust economy, reforms to drive GCC M&A activity in 2024

GCC M&A activity in 2024

Merger and acquisition (M&A) experts anticipate a robust deal-making environment in the GCC region for 2024, driven by strong economic fundamentals, investor-friendly regulations, and government-led reforms. Despite global economic challenges in 2023, the region's focus on economic diversification, growth in non-oil sectors, and active capital markets have propelled M&A activity. According to analysts at PwC, the GCC accounted for the majority of deals in the MENA region in 2023, with the UAE leading the pack. Major acquisitions in 2023, such as the acquisition of Univar Solutions and Scopely, underscored the region's attractiveness to investors. The impact of global megatrends like technological disruption and climate change will continue to influence investment decisions in areas such as energy transition and digital transformation. With a focus on economic diversification, decarbonization, and local value creation, 2024 is expected to be a year of growth in M&A activity. Saudi Arabia, in particular, remains resilient, with increased activity in non-oil sectors and strong IPO activity. The technology sector, including cybersecurity, cloud computing, and e-commerce, presents significant opportunities for deal-making, fueled by the region's rapid adoption of advanced technologies. Cross-border M&A deals have also seen a rise, indicating companies' strategic efforts to gain global advantages. Sovereign wealth funds continue to play a pivotal role in driving deal activity, supporting their respective countries' economic strategies.

As the GCC economy continues to thrive, mergers and acquisitions (M&A) are poised to play a pivotal role in driving growth and transformation. Analysts predict a robust deal-making environment in 2024, fueled by strong economic fundamentals, pro-investor regulations, and government-led reforms. Despite global economic challenges in 2023, the region's focus on economic diversification, growth in non-oil sectors, and active capital markets have propelled M&A activity. Major acquisitions in 2023, such as the acquisition of Univar Solutions and Scopely, underscored the region's attractiveness to investors. The impact of global megatrends like technological disruption and climate change will continue to influence investment decisions in areas such as energy transition and digital transformation. With a focus on economic diversification, decarbonization, and local value creation, 2024 is expected to be a year of growth in M&A activity. Saudi Arabia, in particular, remains resilient, with increased activity in non-oil sectors and strong IPO activity. The technology sector, including cybersecurity, cloud computing, and e-commerce, presents significant opportunities for deal-making, fueled by the region's rapid adoption of advanced technologies. Cross-border M&A deals have also seen a rise, indicating companies' strategic efforts to gain global advantages. Sovereign wealth funds continue to play a pivotal role in driving deal activity, supporting their respective countries' economic strategies.