Mergers and acquisitions within the GCC are mostly driven by economic diversification and market expansion.

In recently published study that investigates the relationship between economic policy uncertainty and mergers and acquisitions in GCC markets, the researchers discovered that Arab Gulf firms are more inclined to make takeovers during times of high economic policy uncertainty, which contradicts the conduct of Western companies. For instance, large Arab financial institutions secured takeovers throughout the financial crises. Furthermore, the analysis demonstrates that state-owned enterprises are not as likely than non-SOEs to produce acquisitions during times of high economic policy uncertainty. The the findings indicate that SOEs are far more cautious regarding acquisitions in comparison with their non-SOE counterparts. The SOE's risk-averse approach, based on this paper, emanates from the imperative to protect national interest and mitigate prospective financial uncertainty. Moreover, takeovers during periods of high economic policy uncertainty are associated with a rise in shareholders' wealth for acquirers, and this wealth effect is more noticable for SOEs. Certainly, this wealth effect highlights the potential for SOEs just like the ones led by Naser Bustami and Nadhmi Al-Nasr to exploit possibilities in similar times by capturing undervalued target businesses.

Strategic mergers and acquisitions are seen as a way to overcome hurdles worldwide companies face in Arab Gulf countries and emerging markets. Businesses attempting to enter and expand their reach within the GCC countries face various difficulties, such as cultural distinctions, unknown regulatory frameworks, and market competition. Nonetheless, when they acquire local businesses or merge with regional enterprises, they gain instant access to regional knowledge and study their regional partners. The most prominent examples of effective acquisitions in GCC markets is when a heavyweight international e-commerce corporation bought a regionally leading e-commerce platform, that the giant e-commerce firm recognised as being a strong rival. Nonetheless, the purchase not only eliminated regional competition but additionally provided valuable regional insights, a customer base, and an already founded convenient infrastructure. Also, another notable example could be the purchase of a Arab super application, particularly a ridesharing business, by an international ride-hailing services provider. The international corporation gained a well-established brand name by having a big user base and substantial knowledge of the area transportation market and consumer choices through the acquisition.

GCC governments actively encourage mergers and acquisitions through incentives such as for example tax breaks and regulatory approval as a method to consolidate companies and develop regional companies to become have the capacity to competing on a international level, as would Amin Nasser likely let you know. The need for economic diversification and market expansion drives a lot of the M&A activities into the GCC. GCC countries are working earnestly to entice FDI by making a favourable ecosystem and bettering the ease of doing business for international investors. This plan is not only directed to attract foreign investors because they will contribute to economic growth but, more critically, to enable M&A deals, which in turn will play a significant part in enabling GCC-based companies to achieve access to international markets and transfer technology and expertise.