Egypt’s M&A market grew significantly in 2024, driven by economic reforms, privatisation and strong foreign investment. With key deals in fintech, hospitality, and energy, Egypt is poised for continued growth in 2025.
Egypt experienced a strong rebound after a series of macroeconomic challenges in 2023, with a significant increase from 97 deals to 120 in 2024, marking a 23.7% year-on-year growth - the highest in the Middle East. Although this level is lower than the peak levels seen in 2022, the current surge can be partly attributed to Egypt’s ongoing economic reforms and efforts to attract foreign direct investment, particularly in infrastructure, fintech, and consumer markets.
“Egypt’s M&A market showed resilience and growth in 2024, driven by bold economic reforms, enhanced financial discipline and the government’s commitment to supporting national development efforts. We see renewed investor confidence in Egypt’s long-term economic trajectory as the government strengthens the investment climate through regulatory enhancements and tax incentives. With growing private sector participation and strategic foreign investments, we anticipate continued momentum in dealmaking throughout 2025.”
The country also recorded 77 corporate transactions in 20241, highlighting a strong private sector involvement in Egypt’s M&A market, signaling business confidence, economic diversification and growth opportunities.
The largest M&A deals in 2024, included2:
The US$800 million acquisition of Legacy Hotels by Arab Co for Hotels and Tourist Investments, reinforces Egypt’s growing tourism and hospitality sector.
MNT Halan, a fintech and digital lending firm, saw investments worth US$157.5mn from a private investor group, indicating continued growth in Egypt’s fintech sector.
Egypt-based private equity firm B Investments Holding’s acquisition of a 90% stake in Orascom Financial Holding for US$49.33mn, marks a significant milestone in the financial sector.3
“Egypt's M&A resurgence is a testament to bold economic reforms and investor-friendly policies. We have had a 23.7% year-on-year surge - the highest in the region. The country’s dynamic business landscape is also being driven by a favourable regulatory environment and a strong push for foreign direct investment in infrastructure, fintech, and consumer markets. Major wins in the region reflect this confidence"
Privatisation accelerated
As Egypt navigates macroeconomic stability amid regional tensions and declining Suez Canal trade, its privatisation efforts are gradually reducing government control and boosting private sector participation. In December 2024, the IMF approved a $1.2 billion disbursement under Egypt’s $8 billion programme, on the condition of accelerating privatisation. As part of this push, the Central Bank of Egypt began the sale of a 30% stake in state-owned United Bank through an initial public offering (IPO) on the local exchange, as part of its plans to attract foreign investment through the sale of public assets.
Tax incentives
Egypt is intensifying efforts to attract private equity (PE) and venture capital (VC) by introducing tax incentives and economic reforms aimed at accelerating investment. The government rolled out tax incentives for investors in high-growth sectors in the second half of last year, particularly in technology, renewable energy, and manufacturing.
Furthermore, the April 2024 amendments to Egypt’s Anti-Trust Law No. 3 of 2005 has reshaped Egypt’s M&A landscape by transitioning from a post-merger notification system to a pre-merger control regime. This change has introduced greater clarity and predictability for investors, streamlined approvals, set clear thresholds for notification and ensured compliance with global best practices. These reforms are expected to create a more investor-friendly environment and sustain Egypt’s upward trajectory in M&A deal volumes.
Foreign investment and regional Sovereign Wealth Fund (SWF) interest: Egypt’s plan to transfer state-owned enterprises to its US$12 billion sovereign wealth fund, aims to maximise asset returns, encourage private sector partnerships, and attract foreign investment. We also see SWFs of the Gulf Cooperation Council (GCC), such as Saudi Arabia’s Public Investment Fund, Qatar Investment Authority, the UAE’s Abu Dhabi Developmental Holding Company (ADQ) increasing investments in Egypt’s industrial zones, tourism and oil and gas sectors - signaling confidence in the market.
In February 2024, under the US$35bn land deal4 the ADQ-led consortium secured the rights to develop 130 million square meters along Egypt’s north coast at Ras El Hekma, while US$11bn of Emirati deposits held in Egypt’s central bank would be released, enabling investments in key projects across the country to support economic growth and development. Meanwhile in September 2024, PIF announced a $5b investment into Egypt to boost bilateral relations5, while in November 2024, Qatar Energy acquired 23% of Chevron6 in an offshore exploration block located in Egyptian waters, demonstrating Qatar's commitment to Egypt's oil and gas sector.
Looking ahead
Egypt’s recovery in deal volume in 2024 underscores renewed investor confidence, supported by economic reforms, privatisation and tax incentives. With the UAE’s Emirates NBD initiating the plans to acquire a 45% stake of Banque du Caire for US$1 billion, it also highlights the growing momentum in Egypt’s financial sector. With private-sector-led M&A transactions rising, key investment opportunities lie in finance, infrastructure, tourism and digital transformation. As Egypt continues to enhance its investment climate, 2025 is set to be another pivotal year for dealmaking and economic expansion.
Resources:
1- Transact-2025-MiddleEast
2- Deal values displayed constitute disclosed deals within the Middle East
3- B Investments Acquires 90% Stake in Orascom Financial Holding
4- Abu Dhabi's ADQ to invest $35bn in Egypt
5- Egyptian cabinet says Saudi Crown Prince told PIF to pump $5 bln into Egypt as 'first stage'
6- QatarEnergy to Acquire 23 Percent Stake in Block Offshore Egypt
