FINAL WORD beyond , which will bring cloud service providers ’ actions into focus . They will need to evidence the steps they take for compliance , for example , testing and resilience plans which are shared with regulators .
Cloud Service Providers and Hyperscalers will be held accountable in a way they have not
Samuele Bellani , Managing Director and
Partner , BCG
been before , and noncompliance will force remediation efforts across FSI industries .
Another element driving change is the ongoing disruption brought on by the Broadcom acquisition of
VMware . In 2025 we will see if customers will accept their fate or adopt alternatives . Many organisations are still discovering what does and does not work in terms of the other options out there and next year we will see if the alternatives can meet enterprise needs fully , or if organisational anger will subside and they stick with what they know . p
Middle East investors prepare to use AI in M & A deals
Middle Eastern mergers and acquisitions , M & A continue to forge ahead with resilient investment and a strong focus on economic diversification . According to BCG ’ s 2024 M & A Report , Middle East deal volume rose 7 % in the first nine months of 2024 , even as global deal volume declined by 13 %. Middle Eastern investors are expanding into crucial sectors like advanced technology , logistics , energy , reflecting the region ’ s commitment to a diverse , future-ready economy .
Despite a cautious global outlook , technology , energy , financial services companies are pushing forward with strategic deals that promise to reshape industries . Sectors such as healthcare , technology , and energy are expected to drive M & A activity in the months ahead .
AI assisted M & A
Advances in AI-enabled tools are now integral to M & A , streamlining the entire deal lifecycle , from target identification to due diligence and integration . AI-based solutions improve productivity and accuracy , rapidly analysing structured and unstructured data to support quicker decision-making in an increasingly complex landscape .
Virtual data rooms equipped with AI-driven contract redaction and information extraction capabilities enhance documentation workflows , a critical factor during complex M & A negotiations . These digital advancements are essential as Middle Eastern firms position themselves to navigate today ’ s evolving M & A landscape effectively . With AI-powered tools transforming the M & A process , the most prepared firms will shape the future of M & A by combining digital efficiencies with bold , forward-thinking acquisitions .
Noteworthy sector investments include :
Technology and telecommunications
Technology assets are increasingly central to Middle Eastern M & A . Prominent transactions include a $ 2.6 billion acquisition in satellite communications and a $ 250 million investment in telecommunications in Africa .
Additionally , a $ 350 million investment in energy-focused AI demonstrates the region ’ s commitment to digital and AI-driven transformation .
Energy and renewables
The region ’ s traditional strength in energy is evolving to include renewables , with a significant $ 2.7 billion renewable energy transaction reflecting this shift .
Middle Eastern oil companies , including national oil players , remain actively engaged in monetising and optimising downstream assets , further diversifying their energy portfolios .
Industrial and logistics
The logistics sector is seeing continued growth , with a recent $ 1 billion acquisition by a UAE-based energy player , enhancing supply chain infrastructure . The industrial sector also saw a $ 3.2 billion bid in engineering , indicating sustained interest in expanding industrial capacities .
The Middle East ’ s M & A activity is shaped by a strategic focus on outbound investment , economic diversification , and resilience amid global shifts .
With backing from sovereign wealth funds and strong capital reserves , investors in the region are targeting acquisitions in sectors like AI , telecommunications , and logistics , supporting a move beyond oil and gas dependencies .
As geopolitical complexities and regulatory scrutiny intensify , Middle Eastern firms will carefully select M & A opportunities that align with their growth objectives , balancing expansion with a measured approach to risk .
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