< Previous50 May 2025law-middleeast.com FINAL WORD The nation’s deal market experienced a strong fi rst quarter, but questions abound whether it can maintain this momentum amid global uncertainties UAE DEAL FLOW DRIVEN BY INBOUND AND OUTBOUND M&A The fi rst quarter of 2025 was a promising start to the year for deal fl ows in the UAE, with a positive transaction landscape in both value and volume across varying sectors. There has been an upswing in both inbound and outbound mergers and acquisitions (M&A), with dealmakers particularly interested in targets in the technology, fi nancial services, and energy sectors. This upward trajectory followed a period of contraction in broader global M&A through 2023 and 2024, aff ected by high interest rates and infl ation, which saw overall deal volume decline. The positive trend in deal fl ow has been coupled with buoyant capital markets and sustained interest in initial public off erings (IPOs) in the UAE and across the Middle East, with a pipeline of both private and state-backed candidates off ering opportunities to investors to gain further exposure to the UAE market. It follows long-term strategic eff orts by the UAE federal and local governments and regulatory authorities to develop domestic stock markets and implement overarching frameworks to provide certainty to investors. As we move into the second quarter, with ongoing geopolitical headwinds, the question is whether this momentum will be sustained in the year ahead? With continued volatility in the global markets and threats of recession, the UAE is uniquely placed to As we move into the second quarter, with ongoing geopolitical headwinds, the question is whether this momentum will be sustained in the year ahead? navigate uncertainty. While the continuation of current economic conditions could see a negative impact on the global price of oil, the UAE’s long-term emphasis on diversifi cation has ensured that key sectors contributing to its economy and ongoing deal fl ows can resist such eff ects. Investments in sovereign- backed infrastructure and sustainable energy projects are, for example, likely to remain largely unimpacted. Further increases in outbound M&A could be seen as sovereign wealth funds or other capital-rich investors look to maximise acquisition opportunities in undervalued targets. Beyond this, the UAE is positioned as a global hub for technology and artifi cial intelligence (AI), investing signifi cantly in incubator projects and infrastructure to attract start-ups and entrepreneurs in the AI and technology space that are leading innovation in areas such as fi ntech. This will provide opportunities in 2025 to a wide range of investors, in particular those tapping into the rise of the UAE’s private credit market, which is increasingly becoming a viable funding route for local small and medium enterprises (SMEs). Overall, the strong M&A activity in the fi rst quarter provides a positive outlook, and the UAE's ability to maintain this momentum amid global uncertainties remains a key focus for the rest of 2025. By Abdulwahid Alulama Partner and Middle East head at White & Case LME_May2025_50_Final word_13599880.indd 50LME_May2025_50_Final word_13599880.indd 5002/05/2025 09:3502/05/2025 09:35TODAY'S STUDENTS, TOMORROW'S LEADERS. Scan to learn moreUntitled-9 1Untitled-9 103/03/2025 11:1403/03/2025 11:14Next >