Middle Eastern Dealmaking Endures Despite Regional Instability

Middle Eastern M&A held up relatively well through the U.S./Iran conflict, with transactions delayed rather than abandoned. Ongoing relations between the U.S. and Iran will continue to influence activity, including among sovereign investors.

In brief

Deal activity slowed in Q2 2026 against a backdrop of ongoing conflict in the region, although the impact was selective; retail, FMCG, hospitality and tourism were most affected, while defense tech and strategic buyer activity stayed robust.

In the UAE investment levels remained comparatively strong against recent historical benchmarks.

Sovereign investors continue to provide structural support, using long-term mandates and capital deployment to sustain regional growth and investment.