With a strong economy buoyed by high oil prices, the Middle East is well positioned to rely on M&A to further advance the region’s long-term push to expand beyond hydrocarbons as well as globalize its companies. Most of the deal activity is fueled by sovereign wealth funds and local corporations, with the potential for foreign investors to start deploying capital in the region.

Indeed, these are good times for the local economy, with expected regional GDP growth of 6.5% (it’s 7.6% in Saudi Arabia), the highest it’s been in more than a decade. The Middle East’s sovereign wealth funds are growing, too, and with a new government mandate, they have become a treasure chest for much of the M&A activity. For example, Saudi Arabia’s state-owned Public Investment Fund (PIF) invested $1.3 billion in four Egyptian companies in August 2022, including Abu Qir Fertilizers and Alexandria Container and Cargo Handling.