Egypt’s mergers and acquisitions (M&A) activity saw a 27.3% surge in 2024, driven by strong domestic and cross-border dealmaking, according to a report by Baker McKenzie released on February 12. However, despite the increase in transaction volume, the total value of deals declined by 14.2%.
Deal value dips
The uptick in M&A transactions was fueled by a 31% rise in domestic deals and a 25% increase in cross-border transactions. Egypt averaged 15 deals per month in 2024, up from 12 per month the previous year. However, the average deal value fell to $20.5 million, down from $30.4 million in 2023.
While Egypt’s M&A market expanded, global activity contracted by 13.7%, and M&A activity in the Middle East also dropped by 9%. Despite the decline in deal volume, the average global transaction value rose to $63.1 million in FY 2024 from $49.6 million in FY 2023. In the Middle East, the average deal size increased to $70.3 million from $64.0 million.
“In the face of the global downturn in M&A activity, the Middle East presents a more nuanced picture. Egypt has experienced a strong rise in deal volume, both domestically and cross-border. However, the decline in deal value is largely due to the devaluation impact, indicating that Egypt continues to attract interest and adapt to changing market conditions,” said Mohamed Ghannam, Managing Partner at Helmy, Hamza & Partners, Baker McKenzie Cairo, in the statement.
Inbound M&A activity in Egypt totaled 89 deals worth $2 billion, with the energy and power sector leading in deal value. The UAE emerged as the top inbound acquirer of non-Egyptian deals.
On the outbound front, Egypt executed 16 deals valued at $835 million, with Saudi Arabia ranking as the primary destination. Most outbound transactions were concentrated in the financial and real estate sectors.
“While the M&A landscape in Egypt faced notable challenges throughout 2023, the increased deal volume, coupled with a surge in total value in the second half of 2024, signals resilience and opportunities within the market,” said Hani Nassef, Partner and Head of M&A at Helmy, Hamza & Partners, Baker McKenzie Cairo.
Path to growth
“Acquisitions are the fastest path to growth,” Ayman El Tanbouly, Co-founder & CEO of Exits MENA, told Business Monthly. He noted that acquiring a business offers immediate access to licenses, market share, customer databases, and infrastructure—essential assets that would take significantly longer to build organically.
In line with Egypt’s State Ownership Policy Document, the government launched its Initial Public Offering (IPO) program to encourage private sector participation, manage exit strategies, generate returns, and ensure foreign exchange liquidity. As part of this initiative, in February 2023, the government revealed plans to list 32 companies on the Egyptian Stock Exchange (EGX) or offer them to strategic investors, according to a report by the Information and Decision Support Center (IDSC).
As per a State Information Service article published on February 13, 2025, Cabinet Spokesman Mohamed El-Homsany confirmed that preparations are underway for several entities to be listed soon, with 15 more companies set for upcoming offerings.
“The exchange rate has become more stable and reassuring for investors,” said Ayman El Tanbouly. He explained that currency devaluation attracts investments by reducing production costs and enhancing competitiveness, particularly for export-driven businesses and those generating revenue in foreign currencies.
El Tanbouly also expects interest rates to gradually decline in 2025, further improving the investment climate. Additionally, government initiatives to streamline licensing and implement tax reforms—led by the Ministry of Finance and the Ministry of Investment—are seen as positive signals for the market.
As of February 16, 2025, the exchange rate stands at 50.63 Egyptian pounds per 1 US dollar.
In Egypt, headline inflation rates are currently on a downward trajectory, registering 23.2% in January, a slight decrease from 23.4% in December, according to data from CAPMAS.
