Navigating sustainability considerations in M&A

Sustainability in deals

As part of the region's efforts to diversify economies away from oil and gas revenues, we are seeing massive investments underway in renewable energy, green hydrogen, and other sustainable projects.

In the Middle East, integrating sustainability throughout the deal lifecycle has become critical, serving as a key value driver in transactions and enhancing an investment’s resilience. Neglecting sustainability can lead to serious issues, such as failed negotiations, reduced transaction prices, or depreciation in investment value due to non-compliance with national or international standards and net zero targets. Dealmakers, portfolio companies, and corporates in the region are realising the strategic opportunities sustainability presents as they face growing stakeholder pressure to prioritise it during mergers and acquisition (M&A) activities.

Key initiatives in the region driving sustainability include the development of industrial-scale hydrogen facilities, solar power parks, carbon capture and storage ecosystems, power storage systems, electrified transport, and sustainable infrastructure programmes. These efforts illustrate the region's commitment to sustainability and the strategic importance of incorporating it into business practices.

To enable this transformation, organisations require advisory support in deals for formulating investment strategies, developing partnership models, capturing investment opportunities, and conducting feasibility studies, among other needs. 

Our human-led and tech-powered team enables clients in the region to move forward with a differentiated and integrated perspective on both specific and industry-wide sustainability challenges. We focus on impactful changes — ranging from operational innovation to future-proofing their businesses.


64%

64% of respondents have adopted a formal ESG strategy in the last 12 months and many are embedding ESG priorities across their organisations

32%

32% of PE respondents say that ESG was a primary driver of value creation in more than half of their organisation’s recent deals

53%

53% of private equity respondents choose not to pursue a deal because of ESG factors


How can we help you?

Our value propositions for sustainable dealmaking:

Sustainability-focused deals advisory

Driving client growth in environmental, social and governance areas through actionable investment strategies, comprehensive due diligence, and seamless M&A execution to realise value and mitigate risk.

Giga-energy transition

Assisting governments and the private sector in positioning the region as the leading global energy provider.

Decarbonisation pathways

Supporting clients across sectors in achieving their net zero objectives.

Sustainable economic development

Supporting investment attraction programmes across sectors to develop local supply chains.

Sustainable cities and infrastructure

Enhancing energy efficiency and livability in the built environment.

Energy Transition: Strategic investment and deal opportunities

Realising the potential of your mergers, acquisitions and divestitures and capital markets transactions

Connect with us

Together, we can transform the Middle East and unlock inclusive growth through sustainability.

Contacts

Romil Radia

Deals Markets Leader, PwC Middle East

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Nicolas Boukhalil

Partner, Middle East Energy, Utilities and Resources, PwC Middle East

+971 52 745 1682

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Joseph Bou Eid

Partner, PwC Middle East

+966 (56) 185 4924

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Sari Kalakesh

Partner and Capital Projects Services Leader, Riyadh, PwC Middle East

+966 56 993 8419

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Achraf El Zaim

Capital Project Services and Forensic Services Partner, Dubai, PwC Middle East

+971 (0) 4 304 3132

Email

Abed Bazzi

Forensics Services Partner, PwC Middle East

+971 56 385 5946

Email

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