Strategic View: A PwC H1 2025 report reveals the GCC’s M&A market is defying the global slowdown, with deal volume up 19%. This growth is not from mega-deals, but from a surge in “mid-market, high-impact” club deals. Sovereign wealth funds are using club structures to fund national champions in digital infrastructure, AI, and green energy.
Full story: While the rest of the world frets about a deal slowdown, the Middle East is accelerating. A new H1 2025 report from PwC shows M&A deals in the region grew by an impressive 19% year-over-year. This bucks the global trend of a 9% decline. The engine of this growth is the “mid-market club deal.”
This is a story of strategic, sovereign-led capital. The era of just acquiring trophy assets is over. Now, sovereign wealth funds (SWFs) in the UAE and Saudi Arabia are using their capital with precision. They are forming “club deals,” often with other regional SWFs or specialized international partners, to execute on national transformation goals.
The focus is on “high-impact” sectors. Deals like G42’s acquisition in Khazna Data Centers and Saudi Arabia’s push into AI and green hydrogen are templates. These are not just financial investments; they are strategic infrastructure projects. By using a club structure, SWFs can bring in operational expertise, share the diligence, and align their national interests.
This trend shows a new maturity in the GCC market. Capital is being deployed to build, not just to buy. The “sovereign club deal” is the chosen vehicle to fund the localization of technology, build digital and green infrastructure, and create the national champions of tomorrow. It’s a powerful, state-directed industrial policy executed via private market structures.
Summary: The GCC is the world’s M&A bright spot, with deals up 19% in H1 2025. This matters because the growth is driven by a new model: the “sovereign club deal,” a state-led vehicle to fund mid-market national champions in high-priority sectors like AI, data centers, and green tech.
Source: PwC Middle East
