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

GCC governments actively promote mergers and acquisitions through incentives such as for instance tax breaks and regulatory approval as a method to solidify industries and build up regional companies to be have the capacity to contending on a global level, as would Amin Nasser likely tell you. The necessity for financial diversification and market expansion drives much of the M&A deals in the GCC. GCC countries are working seriously to bring in FDI by creating a favourable ecosystem and bettering the ease of doing business for foreign investors. This plan is not merely directed to attract foreign investors since they will contribute to economic growth but, more crucially, to enable M&A transactions, which in turn will play a substantial role in allowing GCC-based businesses to gain access to international markets and transfer technology and expertise.

Strategic mergers and acquisitions have emerged as a way to overcome hurdles international companies face in Arab Gulf countries and emerging markets. Businesses attempting to enter and expand their reach in the GCC countries face different challenges, such as for example cultural differences, unknown regulatory frameworks, and market competition. Nevertheless, if they acquire regional businesses or merge with local enterprises, they gain immediate usage of local knowledge and study their local partner's sucess. One of the most prominent cases of successful acquisitions in GCC markets is when a heavyweight international e-commerce corporation bought a regionally leading e-commerce platform, which the giant e-commerce company recognised as being a strong competitor. But, the acquisition not merely eliminated regional competition but also offered valuable regional insights, a customer base, plus an already established convenient infrastructure. Also, another notable example may be the purchase of an Arab super software, namely a ridesharing company, by the international ride-hailing services provider. The international firm obtained a well-established manufacturer with a big user base and extensive understanding of the area transportation market and client choices through the acquisition.

In a recent study that examines the relationship between economic policy uncertainty and mergers and acquisitions in GCC markets, the authors discovered that Arab Gulf firms are more inclined to make acquisitions during periods of high economic policy uncertainty, which contradicts the behaviour of Western companies. As an example, large Arab banking institutions secured takeovers through the financial crises. Also, the analysis shows that state-owned enterprises are not as likely than non-SOEs in order to make acquisitions during periods of high economic policy uncertainty. The the findings suggest that SOEs are more prudent regarding acquisitions when compared to their non-SOE counterparts. The SOE's risk-averse approach, based on this paper, stems from the imperative to protect national interest and minimising potential financial instability. Moreover, acquisitions during times of high economic policy uncertainty are connected with a rise in shareholders' wealth for acquirers, and this wealth effect is more pronounced for SOEs. Indeed, this wealth impact highlights the potential for SOEs just like the people led by Naser Bustami and Nadhmi Al-Nasr to exploit possibilities in such times by capturing undervalued target companies.