Investor focus shifts to bigger plays as MENA private equity activity slows in early 2025

Private equity activity in the Middle East and North Africa region saw a marked slowdown during the first half of 2025, as investors moved away from high-volume dealmaking and instead concentrated capital in fewer, high-value transactions.

According to Magnitt’s latest report, only 29 private equity deals were recorded between January and June, with a combined value of $2.9 billion, representing a 38 percent decline in the number of deals and an 11 percent drop in value compared to the same period in 2024.

The region has now logged three consecutive half-years of cooling PE activity, underscoring a broader shift in investor appetite.

Saudi Arabia remained the most active market, with 13 transactions, up 8 percent year-on-year, making up nearly half of all deals across MENA. The UAE came in second with 12 deals, though this reflected a 25 percent decrease from the previous year. In contrast, Egypt and Jordan each saw just one PE transaction during the period, falling sharply by 89 percent and 50 percent, respectively.

The pullback reflects a strategic recalibration rather than investor retreat, according to Magnitt. General partners are taking a more cautious approach, channeling capital into higher-conviction investments in platforms with robust fundamentals.