Gulf Q3 M&A falls to $5B, lowest since 2022

M&A involving Gulf companies fell to about $5 billion in the third quarter, the lowest level since 2022 and well below $69 billion a year earlier. In the fourth quarter, the regional slowdown became even more pronounced, with deal value down more than 90% from a year earlier so far. The report said the Middle East saw strong M&A momentum in 2025, highlighted by a $55 billion acquisition of Electronic Arts. Sentiment has since turned more cautious as the Iran war disrupted investment plans and shifts in the U.S. political landscape raised the possibility of stricter reviews for large deals. Even so, Gulf M&A activity remains above its five-year average, suggesting the market is cooling after an unusually active 2025 rather than making a broad retreat from global markets. Wall Street financial institutions are also continuing to expand local staffing to capture related opportunities. James Jarvis, a partner at Dubai-based financial advisory firm Lumina Capital Advisers, said that in the initial phase of the conflict, corporate boards paused activity and assessed the potential business impact, delaying M&A and asset sale plans.