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

Strategic mergers and acquisitions are seen as a way to overcome hurdles worldwide companies encounter in Arab Gulf countries and emerging markets. Businesses planning to enter and grow their reach into the GCC countries face different challenges, such as cultural differences, unfamiliar regulatory frameworks, and market competition. Nevertheless, when they acquire local businesses or merge with regional enterprises, they gain immediate access to local knowledge and learn from their local partners. 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 as a strong contender. However, the acquisition not merely removed regional competition but in addition provided valuable regional insights, a client base, as well as an already established convenient infrastructure. Moreover, another notable example is the acquisition of an Arab super software, particularly a ridesharing company, by the worldwide ride-hailing services provider. The international firm gained a well-established brand having a large user base and extensive knowledge of the local transport market and consumer choices through the acquisition.

In a recent study that examines the connection between economic policy uncertainty and mergers and acquisitions in GCC markets, the researchers discovered that Arab Gulf firms are more likely to make acquisitions during periods of high economic policy uncertainty, which contradicts the conduct of Western companies. For instance, large Arab financial institutions secured takeovers through the financial crises. Moreover, the study suggests that state-owned enterprises are more unlikely than non-SOEs to help make acquisitions during periods of high economic policy uncertainty. The the findings suggest that SOEs tend to be more prudent regarding takeovers in comparison to their non-SOE counterparts. The SOE's risk-averse approach, based on this paper, emanates from the imperative to protect national interest and minimising potential financial uncertainty. Furthermore, acquisitions during periods of high economic policy uncertainty are connected with an increase in shareholders' wealth for acquirers, and this wealth effect is more noticable for SOEs. Indeed, this wealth effect highlights the potential for SOEs like the ones led by Naser Bustami and Nadhmi Al-Nasr to exploit possibilities in such times by capturing undervalued target businesses.

GCC governments actively encourage mergers and acquisitions through incentives such as for example taxation breaks and regulatory approval as a means to solidify industries and build up regional companies to become effective at competing at an a global level, as would Amin Nasser likely tell you. The necessity for economic diversification and market expansion drives a lot of the M&A transactions into the GCC. GCC countries are working earnestly to attract FDI by developing a favourable environment and bettering the ease of doing business for foreign investors. This plan is not only directed to attract international investors simply because they will add to economic growth but, more crucially, to facilitate M&A deals, which in turn will play a significant role in permitting GCC-based businesses to gain access to international markets and transfer technology and expertise.