Tech M&A in the Middle East and North Africa Region: Healthy and Growing

Tech M&A in the Middle East and North Africa (MENA) region is healthy and growing. Indicative of the M&A growth trend were the 129 tech M&A deals in the region in the first three quarters of 2025, an increase of 30% from the same period in 2024. The disclosed deal value of those 2025 transactions was $34.8 billion, more than four times the $8.4 billion disclosed value in all of 2024. That year-over-year spike in deal value is actually higher because only 22% of the transactions in 2025 announced deal values.

Here are some of the factors driving that robust growth.

Israel's high tech ecosystem 

Israel's high-tech ecosystem is a globally recognized hub for innovation, often called "Silicon Wadi."  It is characterized by a high density of startups, a strong network of venture capital funds, and numerous R&D centers for multinational corporations. The ecosystem thrives due to a culture of innovation, strong government support, a close connection between academia and industry, and a skilled workforce  

Significantly, the ecosystem has fostered a pipeline of innovative technology companies, especially focused on cybersecurity, AI, and data management, which has attracted strong global interest from buyers. In fact, in the first nine months of 2025, half of all tech M&A deals in the MENA region were acquisitions of Israeli companies. Israeli-based companies were also active buyers during that period, trailing only the U.S. in the number of acquisitions in the MENA region.  Israeli M&A activity in the first three quarters of 2025 was nearly five times the level of the same period in 2024, marking the highest M&A activity in Israel's history.

In addition, the highest tech M&A deals in the region tend to be for Israeli companies. For example, in 2025 Israeli identity security company CyberArk was purchased by U.S. cybersecurity company Palo Alto Networks for $24.9 billion. And in a deal expected to close in 2026, Google announced an agreement to acquire Wiz, a cloud security company founded in Israel, for $32 billion.

UAE and Saudi Government and Sovereign Wealth Fund-backed investment

Governments and sovereign wealth funds (SWFs), especially in countries such as the United Arab Emirates (UAE) and Saudi Arabia, are investing heavily in technology, which creates opportunities for companies in areas such as AI, cloud, data centers, and fintech. It also spurs both domestic and cross-border tech M&A activity.

For example, G42 is a technology company based in Abu Dhabi that specializes in AI and cloud computing. The company is heavily supported by the Abu Dhabi government, which leverages G42 to position the country as a global AI hub. The company also gets significant investment from a number of Abu Dhabi SWFs such as the Abu Dhabi Growth Fund. In 2025, G42 paid $2.2 billion to acquire a controlling stake in Dubai-based Khazna Data Centers, an operator of large-scale data centers in the UAE. The deal was stimulated by investment from the Abu Dhabi government as part of its digital transformation strategy. The government's push for digital transformation created an environment where consolidating control over key infrastructure assets such as Khazna Data Centers became strategically important for advancing national AI capabilities and ensuring data sovereignty.

Another notable example of an MENA-based SWF deal is the recent acquisition of U.S.-based games publisher Electronic Arts (EA) for $55 billion by a consortium that includes the Public Investment Fund of Saudi Arabia (PIF, a Saudi SWF), and PE firms Silver Lake, and Affinity Partners. PIF’s objective is to expand its influence in the global entertainment industry. In addition, the deal aligns with Saudi Arabia's goal of building international cultural legitimacy and influence through investments in sports and gaming. 

Government and SWF investment in technology in the MENA region, and its stimulus for M&A activity, is expected to increase in the future, driven by national diversification strategies and the goal of becoming global tech hubs.

Fintech growth: 

Although technology sectors in the region such as AI and cybersecurity are growing and seeing a significant amount of M&A activity, another tech sector that is growing fast and is active in the M&A market is fintech. According to market research platform Statista, the MENA fintech market size is estimated to be $1.66 billion in 2025 and is projected to reach $2.63 billion by 2030, a CAGR of 9.7%. Key drivers of this growth include the rapid adoption of financial technology in the region, a large number of fintech startups, and significant investment focused on payment solutions.

Fintech growth in the region is also stimulated by government investment, primarily through state-backed venture capital funds, innovation initiatives, and public-private partnerships. These efforts are part of a broader strategy of MENA governments to diversify their economies and drive digital transformation. For example, the Qatar Investment Authority (QIA) supports the fintech ecosystem by being a key backer of the Qatar-based Rasmal Innovation Fund I, which targets seed-to-Series B stage startups across various tech sectors, including fintech.

M&A activity involving fintech companies is growing too. The financial services sector was the most active M&A sector in the MENA region in the first half of 2025, with fintech being a key driver within that sector.  Fintech deals, particularly in payments and lending, showed significant growth and investor interest. In one example, Mashreq Bank, a UAE-based banking group, sold a majority stake in its payment technology subsidiary, Neopay, for $385 million.to a consortium that includes B2B financial infrastructure technology provider Dgpays, a company based in Turkey, and Bahrain-based global alternative investment firm Arcapita.

Another impetus for M&A deals involving fintech companies in the region is strategic consolidation. Established financial institutions, such as banks, and larger fintechs are looking to acquire smaller fintechs with the right product fit or technology to enhance their offerings and adapt to digital disruption. For instance, Fawry, a major Egyptian e-payment solutions and digital finance platform, acquired Dirac Systems, an Egyptian provider of a cloud-based platform for HR and accounting solutions. The acquisition will allow Fawry to offer integrated financial and HR management solutions to small and medium-sized enterprises.

Summary

Driven by factors such as dynamic high-tech ecosystems, government initiatives, and SWFs, the tech environment in the MENA region is robust and experiencing significant growth. And that growth is stimulating a sharp increase in tech M&A activity and deal size. In particular, MENA-based companies in tech segments such as AI, cybersecurity, data management, and fintech have attracted strong global interest from buyers. 

The positive performance in 2025 indicates that the MENA M&A market is well-positioned for continued growth in the future. In addition, technology sectors in the region are expected to remain key focus areas for M&A, with deals likely to accelerate as companies seek to integrate leading-edge technologies such as AI and strengthen their market position.