Morgan Stanley projects increase in M&A activity in MENA region for 2025

Morgan Stanley has forecasted an increase in mergers and acquisitions (M&A) within the Middle East and North Africa (MENA) region. The financial services firm believes that economic recovery, rising oil prices, and favorable market conditions will contribute to this trend.

The MENA region has seen a resurgence in M&A activity in recent years, driven by a combination of domestic economic reforms and increased foreign investment. According to Morgan Stanley, the region is now poised for a “structural upswing” in M&A deals. The firm’s analysts predict that this trend will continue in the coming months as companies look to expand their market presence and diversify their portfolios.

One of the key factors driving the increase in M&A activity in the MENA region is the recovery of global oil prices. As a result of the recent uptick in oil prices, many oil-rich countries in the region have experienced a boost in revenue, leading to increased investment in various sectors. This influx of capital has created opportunities for both domestic and international investors to participate in M&A deals.

In addition to the recovery of oil prices, economic reforms implemented by several countries in the region have also contributed to the rise in M&A activity. These reforms aim to improve the business environment, attract foreign investment, and stimulate economic growth. As a result, businesses in the MENA region are becoming more competitive and seeking strategic partnerships through mergers and acquisitions.

Furthermore, favorable market conditions in the MENA region, such as low interest rates and ample liquidity, have made it an attractive destination for M&A deals. These conditions have provided companies with the financial flexibility to pursue strategic acquisitions and capital investments.

Overall, Morgan Stanley’s forecast of a “structural upswing” in M&A activity in the MENA region is supported by various factors, including economic recovery, rising oil prices, and favorable market conditions. As businesses in the region continue to grow and diversify, M&A deals are expected to play a key role in shaping the future of the MENA economy.