International businesses attempting to enter GCC markets can overcome local challenges through M&A activities.

In a recent 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 likely to make takeovers during periods of high economic policy uncertainty, which contradicts the conduct of Western firms. For instance, large Arab banking institutions secured acquisitions throughout the financial crises. Also, the study demonstrates that state-owned enterprises are less likely than non-SOEs in order to make acquisitions during times of high economic policy uncertainty. The results suggest that SOEs are more prudent regarding takeovers in comparison to their non-SOE counterparts. The SOE's risk-averse approach, according to this paper, emanates from the imperative to protect national interest and mitigate potential financial uncertainty. Furthermore, takeovers during periods of high economic policy uncertainty are related to an increase in investors' wealth for acquirers, and this wealth impact 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 capturing undervalued target companies.

GCC governments actively encourage mergers and acquisitions through incentives such as for instance taxation breaks and regulatory approval as a method to consolidate industries and build up local companies to become have the capacity to compete on a global scale, as would Amin Nasser likely inform you. The necessity for financial diversification and market expansion drives a lot of the M&A deals in the GCC. GCC countries are working earnestly to entice FDI by developing a favourable ecosystem and bettering the ease of doing business for foreign investors. This strategy is not only directed to attract international investors since they will add to economic growth but, more crucially, to facilitate M&A transactions, which in turn will play a substantial part in allowing GCC-based companies to gain access to international markets and transfer technology and expertise.

Strategic mergers and acquisitions are seen as a way to tackle hurdles worldwide companies face in Arab Gulf countries and emerging markets. Companies wanting to enter and expand their presence within the GCC countries face different problems, such as cultural differences, unfamiliar regulatory frameworks, and market competition. Nevertheless, once they buy regional companies or merge with local enterprises, they gain instant usage of regional knowledge and learn from their local partner's sucess. One of the most prominent examples of successful acquisitions in GCC markets is when a giant international e-commerce corporation acquired a regionally leading e-commerce platform, which the giant e-commerce corporation recognised being a strong competitor. Nonetheless, the purchase not merely eliminated local competition but additionally offered valuable local insights, a customer base, as well as an already established convenient infrastructure. Also, another notable example may be the acquisition of an Arab super application, specifically a ridesharing company, by an international ride-hailing services provider. The multinational corporation obtained a well-established brand name with a big user base and considerable familiarity with the area transport market and consumer choices through the purchase.