2026 TransAct Middle East 

The Middle East’s EUR sector continued to advance its twin priorities of expanding renewable and low‑carbon assets while reinforcing the competitiveness of hydrocarbons and associated downstream systems. This balanced approach, embedded within national net‑zero and industrial decarbonisation frameworks, once again shaped dealmaking across the region. Sector activity was selective but stronger year on year, with 34 transactions, up about 17% from 29 the previous year, as investors prioritised scale platforms that hard‑wire efficiency and resilience into national energy systems.

PwC research shows that between now and 2035, physical climate risks such as extreme heat, water stress, drought, and flooding can reduce The Middle East’s GDP growth by 13.9 percentage points. Understandably, governments and national champions have deepened their focus on transition-enabling infrastructure, including cooling networks, operations and maintenance platforms, industrial energy efficiency, water and waste management, and gas-to-clean pathways – reflecting a growing recognition of climate risk as an economic variable. Boardroom sentiment increasingly reflects this reality, reinforcing the strategic shift toward infrastructure and systems that protect long-term growth, resilience, and economic performance.

The market is becoming increasingly attractive to global PE mega and infrastructure funds, looking to capitalise on the underlying energy transition trends. Ongoing ERS assets’ monetisation policy implemented by national oil companies (NOCs) across the region presents further opportunities for capital deployment in well-established operational platforms, also allowing for further co-investment themes within the ERS space. Ongoing pressure on the traditional ERS sub-sectors such as oil field services (OFS) and engineering, procurement and construction (EPC) also presents an opening for alternative asset managers and attracts interest in direct equity and debt-like instrument investments.

Looking ahead, EUR dealmaking in the Middle East is expected to remain oriented towards system‑level infrastructure and utility platforms, with renewables growth increasingly complemented by investments that raise efficiency, reduce loss and strengthen grid and industrial resilience, whilst traditional ERS sub-sector deals are expected on an opportunistic basis as well as to drive capital release and redeployment. 

TMT remained a key driver of M&A in the Middle East in 2025, as digital transformation accelerated across the region. Deal activity focused on data centres, telecommunications, digital infrastructure, and media platforms, reflecting ambitions to scale sovereign digital capacity and build AI-enabled economic ecosystems.

CEO sentiment in the region is also reinforcing this shift. Findings from PwC’s 29th Global CEO Survey show business leaders actively reassessing technology dependencies to strengthen resilience and control. Around 32% of Middle East CEOs plan to reduce reliance on technology providers based in countries they consider less trustworthy, well above the global average of 21%, signalling a strategic pivot toward trusted suppliers, local and regional alternatives, and greater data sovereignty.

This is reflected in several landmark transactions during the year. One of the most prominent transactions was G42’s acquisition of e&’s 40% stake in Khazna Data Centre Holdings for US$2.2billion¹⁹, consolidating the region’s largest data‑centre platform and providing the compute and storage infrastructure required to support national AI programmes.

IMA remained a core pillar of Middle Eastern M&A activity in 2025. The 136 transactions recorded across the sector point to an ongoing regional shift towards manufacturing depth, localisation and strengthened supply‑chain resilience. A combination of large-scale industrial programmes, rising demand for efficiency focused infrastructure and continued investment in low carbon industrial systems shaped deal flow throughout the year.

This strategic shift was seen in several notable transactions. The acquisition of 100% of PAL Cooling Holding LLC for US$1.054 billion by Arctic Bid Co SPV Ltd23, a joint venture between Tabreed and DIF Infra, has strengthened the region’s access to large-scale district cooling infrastructure. The transaction supports national objectives to improve energy efficiency, enhance industrial service reliability and underpin the growth of both urban and manufacturing ecosystems.

Despite global pressure on capital costs, the Middle East’s healthcare and life sciences sector sustained steady momentum in 2025, recording 41 transactions, up around 32% from 2024. Continued investment in medical infrastructure, expanding clinical capacity, and rapid adoption of digital health solutions supported a resilient and stable dealmaking environment.

These priorities also align with the strategic concerns raised by regional leaders. According to our latest survey of chief executives in the region, CEOs in the Middle East are leading globally in adopting AI across their businesses. That mindset is showing up at the point of care and across the healthcare supply chain, with business leaders prioritising technology-enabled productivity gains and clinically relevant data capabilities to sustain access, quality and cost control.

These strategic priorities were visible in 2025’s transaction mix. Spain-based IVI RMA Global, a KKR-backed global IVF platform, acquired ART Fertility Clinics for approximately US$450m, strengthening its presence in the Middle East’s fast-growing fertility and specialised care segment. The transaction is an indication of increasing cross-border interest in scalable healthcare platforms with strong brand equity and clinical specialisation. 

Deal appetite remained strongest for assets offering operational scalability, defensive cash flows, and alignment with national healthcare reform agendas. As regulatory frameworks evolve and privatisation programmes progress, investor focus is expected to centre on opportunities that strengthen system resilience, expand access to high-quality care, and advance the region’s ambition to build a modern, digitally enabled healthcare ecosystem. 

Despite uneven global demand in 2025, the Middle East’s Consumer Markets sector remained resilient, supported by strong domestic fundamentals, rising tourism, and continued investment in retail, leisure, and consumer platforms. The sector recorded 121 transactions, up around 17% from 2024, as businesses adapted to changing consumer behaviour and rising confidence across key markets.

This optimism is reinforced by broader transformation agendas that prioritise retail modernisation, tourism development and digital first customer engagement. At the same time, while global CEOs remain cautious due to inflation and demand uncertainty, Middle East leaders report a more proactive stance towards innovation and supply chain adaptation. 

Tourism-driven demand remained a key tailwind, with rising visitor numbers supporting spending across retail, hospitality, and dining. This created a stable environment for multi-category consumer platforms, enabling organic growth and selective M&A focused on scalable brands and experiential concepts. At the same time, digital commerce continued to deepen, with consumer businesses investing in omnichannel capabilities, data-driven personalisation, and enhanced customer experience to keep pace with evolving consumer expectations.

As global monetary conditions stabilised through 2025, refinancing and return dynamics remained uneven across major markets. Long‑term rates continued to fluctuate, creating pockets of pressure for institutions exposed to higher funding costs. Despite this backdrop, the Financial Services (FS) sector in the Middle East recorded a strong year of activity, with 172 transactions, making it the region’s most active sector. Banking, payments, asset and wealth management, and real‑asset–linked financial platforms anchored deal flow as regional investors pursued scale, operational efficiency and strategic diversification.

Findings of PwC’s 29th Global CEO survey have also revealed that business leaders in the Middle East’s FS sector are embedding AI across operations at a far higher intensity than global peers and report strong confidence in their organisation’s AI readiness. This indicates a broader shift within the sector towards technology-enabled business models and reinforces the growing importance of scale, data density and platform breadth, capabilities that increasingly define competitive advantage as institutions reposition for a more digital financial landscape.