By Global Consultants Review Team ,
The UAE has strengthened its position as the leading mergers and acquisitions (M&A) market in the Gulf during the first half of 2026, even as overall transaction volumes across the region declined. The latest figures from Grant Thornton’s GCC & UAE M&A Market Review – H1 2026 show a market that is becoming more selective, with investors concentrating capital on larger and strategically important transactions.
Across the Gulf Cooperation Council (GCC), 192 M&A transactions were completed during the first six months of 2026, compared with 234 during the same period in 2025. That represents a decline of nearly 18%.
However, the reduction in deal numbers did not translate into lower deal value. Disclosed transaction value reached $65.1 billion, representing a 12% increase from the previous year.
The UAE accounted for 68% of all GCC transactions and more than 80% of total disclosed deal value, making it the region's dominant dealmaking hub.
This performance highlights an important change in the Gulf M&A landscape and the investors are increasingly prioritising quality over quantity.
The first quarter of 2026 experienced a particularly sharp slowdown, with transaction volumes falling by around 30%. June, however, provided a notable improvement, recording 42 transactions compared with 38 in June 2025.
The changing pattern suggests that investors are not abandoning the Gulf market. Instead, they are becoming more careful about where they deploy capital.
Grant Thornton's analysis points to a growing focus on businesses with strong market positions, predictable cash flows and scalable operations. Majority acquisitions represented 64% of total deal volume, while minority investments accounted for approximately 21%.
This preference for controlling stakes indicates that buyers increasingly want greater influence over strategy, operations and future growth.
“H1 2026 demonstrated that valuation resilience in the UAE is increasingly being underpinned by fundamentals rather than sentiment. While investors have become more cautious in their capital allocation decisions, confidence in businesses with strong market positions, visible cash flow generation and scalable growth platforms remains robust.” - Neha Julka, Partner at Grant Thornton.
For companies seeking investment or acquisition opportunities, the message is increasingly clear: strong fundamentals matter more than market sentiment alone.
Large strategic transactions played an important role in lifting GCC deal value during the first half of the year.
One of the biggest transactions involved Dubai Aerospace Enterprise (DAE) and its approximately $9 billion acquisition of Macquarie AirFinance. Announced in February and completed in July, the transaction became DAE's largest acquisition to date and expanded its aircraft-leasing platform.
Sovereign investors also continued to influence the region's M&A landscape. The Qatar Investment Authority participated in a transaction involving asset manager Janus Henderson valued at approximately $7.4 billion, adding to the large-ticket transactions that supported overall GCC deal value.
These transactions demonstrate the scale of capital available in the Gulf and the increasing willingness of regional investors to pursue assets that can strengthen their international positions.
The UAE has also benefited from the activity of repeat acquirers. Companies including AD Ports Group, International Holding Company and L’IMAD have used acquisitions to expand platforms, diversify earnings and enter new markets.
The UAE's M&A activity is not concentrated in a single sector. Instead, investors are targeting industries connected to long-term economic growth and regional transformation.
Technology continues to attract attention as businesses accelerate digital transformation and seek scalable platforms. Healthcare remains another important area, supported by population growth, increasing demand for private healthcare and the development of regional healthcare networks.
Infrastructure and logistics are also gaining importance as Gulf economies expand their trade networks and strengthen connections between global markets.
Food and beverage and consumer businesses have also remained relevant, particularly because of growing attention to food security and supply-chain resilience.
This sector diversity gives the UAE an advantage in attracting both regional and international investors. Rather than depending on one industry, the country's M&A market is supported by several growth themes.
The second half of 2026 is expected to remain active but selective. Investors have capital available, but businesses will need to demonstrate clear value-creation opportunities to attract it.
Grant Thornton expects the UAE's continued non-oil economic growth, liquidity conditions and relatively low inflation to support dealmaking. The country's non-oil foreign trade reached a record $528 billion in H1 2026, up 13% year on year, while banking-sector assets reached approximately AED 1.5 trillion.
“The UAE deal environment has remained positive but also selective and measured. Naturally, the region has witnessed geopolitical volatility this year. However, as we know, there is no shortage of capital in the region. This capital is being deployed in strategic assets.” - Salmaan Khawaja, Partner and Head of Deals at Grant Thornton.
He added that quality assets are expected to continue attracting interest, while valuation discipline, deal-risk mitigation and a clear value-creation case will determine which transactions ultimately reach completion.
The first half of 2026 therefore points to a maturing UAE M&A market. Deal volumes may be lower than last year, but the capital being deployed is increasingly focused on strategic opportunities.
For investors, corporate leaders and M&A consultants, the UAE's position as the Gulf's leading dealmaking centre creates opportunities across technology, healthcare, infrastructure, logistics and consumer markets. As the year progresses, the market is likely to reward companies that can demonstrate sustainable earnings, strong fundamentals and a clear path to growth.
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