Mergers and acquisitions in 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 way to solidify industries and build local businesses to become capable of contending at an a global scale, as would Amin Nasser likely tell you. The necessity for financial diversification and market expansion drives much of the M&A activities in the GCC. GCC countries are working seriously to bring in FDI by creating a favourable environment and bettering the ease of doing business for international investors. This plan is not only directed to attract foreign 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.

In a recently available study that investigates the connection between economic policy uncertainty and mergers and acquisitions in GCC markets, the researchers found that Arab Gulf firms are more likely to make takeovers during times of high economic policy uncertainty, which contradicts the conduct of Western businesses. For example, large Arab financial institutions secured acquisitions during the financial crises. Also, the analysis shows that state-owned enterprises are less likely than non-SOEs to produce takeovers during times of high economic policy uncertainty. The the findings suggest that SOEs are far more cautious regarding takeovers in comparison to their non-SOE counterparts. The SOE's risk-averse approach, in accordance with this paper, emanates from the imperative to preserve national interest and mitigate potential financial instability. Moreover, acquisitions during times of high economic policy uncertainty are connected with an increase in shareholders' wealth for acquirers, and this wealth impact is more noticable for SOEs. Certainly, this wealth impact highlights the potential for SOEs like the ones led by Naser Bustami and Nadhmi Al-Nasr to exploit opportunities in such times by capturing undervalued target companies.

Strategic mergers and acquisitions are seen as a way to tackle hurdles worldwide businesses face in Arab Gulf countries and emerging markets. Businesses wanting to enter and grow their presence into the GCC countries face different problems, such as for instance cultural distinctions, unknown regulatory frameworks, and market competition. However, when they acquire regional companies or merge with local enterprises, they gain instant usage of local knowledge and learn from their local partners. One of the most prominent cases of effective acquisitions in GCC markets is when a giant international e-commerce corporation bought a regionally leading e-commerce platform, that the giant e-commerce company recognised being a strong contender. However, the purchase not merely eliminated local competition but in addition provided valuable local insights, a customer base, plus an already founded convenient infrastructure. Moreover, another notable example could be the purchase of an Arab super app, namely a ridesharing business, by an international ride-hailing services provider. The international company gained a well-established manufacturer having a large user base and considerable familiarity with the area transportation market and customer choices through the purchase.