Selling to a Gulf Buyer: What US and European Owners Should Know

Buyers from the Gulf are among the most active cross-border acquirers. EY counted 256 outbound deals by Middle East and North Africa acquirers in 2025, worth US$39.2 billion, with the United States the most popular destination by number of deals, and another 119 outbound deals worth US$25.5 billion in the first half of 2026, led by buyers from the UAE and Saudi Arabia. Global SWF estimates that Gulf sovereign funds alone invested US$119 billion in 2025.

Much of that goes into large assets. But the same groups, and the companies they own, also buy mid-market businesses in the US and Europe, usually because the target brings a capability, a market position or a platform they want to grow.

Who the buyers are

Government-linked groups and their operating companies. Ports, utilities, metals and industrial groups buy businesses that extend their own. In May 2026 AD Ports Group agreed to buy the core business of MBS Logistics in Germany for about EUR 70 million. In 2024 Emirates Global Aluminium agreed to acquire 80% of Spectro Alloys, a US aluminium recycler.

Gulf-based investment firms. Firms such as Investcorp, based in Bahrain, buy majority stakes in US and European companies; in June 2026 it acquired a majority of Smart Managed Solutions, a UK facilities management business.

Corporates buying minority stakes. Some buyers want a foothold rather than control. Saudi Re completed the purchase of 22.5% of AdA Risk Holding, a UK insurance business at Lloyd's, in July 2026.

Family-owned groups. They control much of the region's distribution and retail, which makes them natural partners for brands and products that could sell in the Gulf, through an investment or a regional partnership.

What they look for

A strategic reason. Expect the question "what does this do for us?" before "what is it worth?". A business that fills a gap in the buyer's own group, or that it can take to the Gulf, will be valued on that basis.

Control, and continuity. Argaam Intelligence describes sovereign funds, state-linked entities and large diversified groups as favouring majority or full ownership, long holding periods and simpler, cash-heavy structures. Control does not mean the founders leave: in the Spectro Alloys deal the owner-managers kept 20%, and in Investcorp's UK deal the co-founders kept a meaningful minority stake.

A long view. Government-linked groups and strategic buyers tend to hold for the long term, which changes the conversation about the plan after closing.

How deals are structured and paid

Gulf acquirers have historically funded deals from their own balance sheets, although more now use debt. For a seller, that usually means fewer financing conditions. Earn-outs are less common in Gulf deal practice, so expect a simpler price: often cash at closing, sometimes with the founders rolling part of their stake.

Approvals to plan for

United States. Investments by foreign buyers can be reviewed by CFIUS. A declaration gets a 30-day assessment; a full notice gets a 45-day review, which can be followed by a 45-day investigation. A filing is mandatory in two cases: when a buyer in which a single foreign government holds 49% or more acquires 25% or more of the votes in a US business dealing in critical technology, critical infrastructure or sensitive personal data, and when certain critical technology deals would need a US export licence. It must be made at least 30 days before completion. Gulf buyers are regular filers: UAE investors made 18 of the notices in 2025, the third most after China and Japan. A fast-track "Known Investor" programme has been piloted since May 2025.

United Kingdom. Under the National Security and Investment Act, deals in 17 sensitive sectors must be notified. The government decides within 30 working days whether to call a deal in for a full assessment. In 2025-26 it received 1,324 notifications and issued 9 final orders, so most deals clear.

European Union. Screening is national for now. In France, filing is mandatory for covered deals and the deal cannot close before clearance; the first phase takes 30 business days. In Germany, the ministry has two months to clear a deal or open an in-depth review. A revised EU regulation, applying from 17 January 2028, will make screening mandatory in every member state.

Ask a government-linked buyer early about its ownership, because that decides which filings apply, and build the approvals into the timetable and the sale agreement.

Running the process

• Show the fit. Explain what the business would do for the buyer's group and region, with figures in US dollars as well as your own currency.
• Expect senior, in-person meetings. Decisions sit high in the organisation, and relationships matter.
• Keep competition. A Gulf buyer is one bidder among several. Running a structured process with Gulf and non-Gulf buyers protects the price.
• Prepare for compliance checks. Know-your-customer checks run both ways, and regulators will ask about the buyer's ownership.
• Allow time. Ramadan and the summer months slow decisions, and regulatory reviews add weeks.

How we help

We run sell-side processes and buyer outreach for owners who want Gulf buyers at the table: identifying the groups and investors that fit, preparing the materials and managing the process alongside your legal advisers. See how we work with international clients.

General information only. Not legal, tax or investment advice.