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

GCC governments actively promote mergers and acquisitions through incentives such as for example tax breaks and regulatory approval as a method to consolidate companies and develop local businesses to become capable of competing at an a worldwide scale, as would Amin Nasser likely inform you. The need for economic diversification and market expansion drives a lot of the M&A deals into the GCC. GCC countries are working earnestly to draw in FDI by making a favourable environment and increasing the ease of doing business for foreign investors. This plan is not merely directed to attract international investors since they will contribute to economic growth but, more crucially, to enable M&A deals, which in turn will play a substantial part in allowing GCC-based businesses to get access to international markets and transfer technology and expertise.

In a recent study that examines the relationship between economic policy uncertainty and mergers and acquisitions in GCC markets, the writers discovered that Arab Gulf firms are more inclined to make takeovers during times of high economic policy uncertainty, which contradicts the conduct of Western businesses. As an example, big Arab financial institutions secured acquisitions during the financial crises. Furthermore, the study demonstrates that state-owned enterprises are not as likely than non-SOEs to help make takeovers during times of high economic policy uncertainty. The the findings suggest that SOEs tend to be more cautious regarding takeovers when comparing to their non-SOE counterparts. The SOE's risk-averse approach, in accordance with this paper, stems from the imperative to protect national interest and minimising prospective financial uncertainty. Furthermore, acquisitions during periods of high economic policy uncertainty are related to an increase in shareholders' wealth for acquirers, and this wealth effect is more pronounced for SOEs. Indeed, this wealth effect highlights the potential for SOEs like the people led by Naser Bustami and Nadhmi Al-Nasr to exploit possibilities in similar times by buying undervalued target businesses.

Strategic mergers and acquisitions have emerged as a way to tackle hurdles international businesses face in Arab Gulf countries and emerging markets. Companies planning to enter and grow their reach within the GCC countries face various challenges, such as cultural differences, unknown regulatory frameworks, and market competition. But, if they buy local businesses or merge with local enterprises, they gain instant use of local knowledge and learn from their local partners. One of the more prominent cases of effective acquisitions in GCC markets is when a heavyweight international e-commerce corporation acquired a regionally leading e-commerce platform, which the giant e-commerce firm recognised being a strong competitor. Nevertheless, the acquisition not merely removed local competition but additionally offered valuable regional insights, a client base, as well as an already established convenient infrastructure. Additionally, another notable instance may be the acquisition of a Arab super software, specifically a ridesharing company, by the worldwide ride-hailing services provider. The multinational corporation gained a well-established brand with a big user base and substantial understanding of the local transport market and client choices through the purchase.