Gulf M&A nearly triples to $300B as banks rush to hire

Gulf M&A value rose nearly 200% in the first half of 2026 to about $300 billion, driven by sovereign fund bets on AI, according to Bloomberg.business.financialpost
JPMorgan Chase has deployed over $20 billion in the region since the Iran war began in February, calling postwar rebuild costs "substantial."thenationalnews
Goldman Sachs hit $1 trillion in M&A advisory at a record pace as global deal volume reached $2.6 trillion in H1 2026.reuters+1

The value of deals involving Gulf entities rose almost 200% in the first half of 2026 to approximately $300 billion, as sovereign wealth funds poured capital into artificial intelligence companies, prompting Wall Street banks to rapidly expand their Middle East teams, according to Bloomberg.business.financialpost+1

JPMorgan Chase and Standard Chartered are among the firms hiring for roles in the region, even as the broader geopolitical environment remains uncertain following the outbreak of a regional war involving Iran in February.news.bgov+2

AI Megadeals Drive the Boom

Gulf-based entities have been at the center of some of the year's largest transactions. Abu Dhabi's MGX raised close to $50 billion from regional and global investors to accelerate spending on AI infrastructure, ranking it among the biggest AI investment vehicles ever assembled. The fund, which holds stakes in OpenAI and xAI, is targeting more than $100 billion in total assets.globalswf+2

Anthropic raised $65 billion in a funding round that tripled its valuation to nearly $1 trillion, with Gulf backers playing a prominent role. Saudi Arabia's Humain invested $3 billion in xAI earlier this year. The scale of these bets has transformed the Gulf into one of the world's most active dealmaking corridors.agbi+1

Banks Pivot From Caution to Expansion

At the start of the regional war in February, Wall Street banks had braced for a slowdown in Gulf activity. Instead, demand surged. JPMorgan has raised and deployed more than $20 billion into the Gulf region since the conflict began, with executives estimating that hundreds of billions more will be needed for postwar reconstruction and diversification.thenationalnews+2

The broader M&A market has also been robust. Global transaction values rose roughly 30% year on year to $2.6 trillion in the first half of 2026, according to Bloomberg data. Goldman Sachs The Goldman Sachs Group, Inc. reached $1 trillion in M&A advisory faster than any bank in history, a milestone driven in part by megadeals.businesstimes+2

Hiring Accelerates Across the Region

Banks are now competing for talent to meet the demand. Compensation for M&A bankers is projected to rise as much as 20% in 2026, according to Johnson Associates. The Gulf hiring push reflects a longer-term bet that the region's sovereign funds will remain central players in global dealmaking, particularly as AI capital expenditure continues to accelerate.finance.yahoo

Sources (42)