RIYADH: Saudi Arabia recorded 24 mergers and acquisitions deals worth $689 million in the first quarter of 2026, a 4 percent annual increase in deal volume, according to Ansarada’s latest Middle East M&A Market Analysis report.
The figures point to continued resilience in the Kingdom’s dealmaking market despite regional geopolitical uncertainty, with Ansarada saying long-term investor confidence remains intact.
The M&A activity comes as Saudi Arabia seeks to expand private-sector participation and attract investment under Vision 2030.
Supported by the Public Investment Fund and ongoing economic reforms, the Kingdom has remained a focal point for regional and international investors even as geopolitical tensions and higher financing costs have tempered dealmaking activity across some markets.
Across the Middle East, 196 announced deals were recorded in the first quarter of 2026 with a combined value of $23.3 billion, compared with 207 pacts worth $31.3 billion in the same period last year.
“The conflict may be reshaping deal timelines, but it’s not reshaping the region’s thirst for ongoing M&A activity. We remain confident in the long-term health of deal activity in Saudi Arabia, which we view as an enduring and critical hub for M&A in the region and beyond,” said Justin Smith, managing director at Ansarada.
Smith said volatility had prompted more rigorous diligence but had not weakened the underlying drivers of dealmaking in the Kingdom.
The outlook for Saudi Arabia’s M&A market remains cautiously constructive, with advisers pointing to a slower but more disciplined deal environment rather than a broad retreat from activity.
While regional uncertainty is expected to pressure business conditions in the short term, professional services firm Deloitte said Saudi Arabia is likely to be better positioned than some other GCC markets to withstand the impact.
Deloitte’s April 2026 Middle East Economic Monitor said the Public Investment Fund’s 2026–2030 strategy signals a shift from rapid expansion toward a greater focus on long-term value creation, spending discipline and resilience to external economic shocks.
“While volatility continues, there’s a lot of dry powder out there waiting for the right time, while deals already in motion continue to progress with more rigorous diligence. The fundamental strategic drivers for M&A in Saudi Arabia remain strong, and dealmakers have to become more accustomed to operating in a new normal of volatility,” Smith said.
Deal activity across the wider Gulf also remained relatively stable during the quarter. Oman recorded seven deals worth $535 million, Qatar recorded four transactions, and Kuwait recorded three agreements valued at $24 million.
Ansarada said Gulf deal flow continues to be supported by sovereign-backed investment strategies, national transformation agendas and long-term infrastructure priorities, rather than short-term market sentiment.
The report also said sovereign wealth funds remain a major stabilizing force for regional dealmaking, while economic reform and diversification programs continue to support cross-border investment.
Technology was the leading sector by volume across the Middle East, with 68 deals worth $7.3 billion, driven by investment in artificial intelligence, fintech and enterprise technology.
Transportation led by value, with $8.2 billion across nine transactions, reflecting continued investment in strategic infrastructure.
Energy and natural resources accounted for $2.2 billion across 18 deals, while healthcare recorded $1.9 billion across 19 transactions as governments continued to expand medical and life sciences capabilities. Industrials generated $1.6 billion across 23 deals, supported by national efforts to strengthen domestic manufacturing and industrial capacity.
Smith said technology is becoming increasingly important as buyers and investors seek faster access to information and greater transparency in uncertain market conditions.
“Periods of uncertainty place enormous pressure on execution certainty. Companies and investors require real-time visibility into risk, compliance and diligence readiness. Virtual data room platforms such as Ansarada are helping dealmakers manage complexity, maintain momentum and execute transactions with greater confidence and efficiency,” the analysis noted.
Ansarada is a Software-as-a-Service platform and AI virtual data room provider that says it has been involved in more than 60,000 transactions across 170 countries.
