International businesses planning to enter GCC markets can overcome regional challenges through M&A activities.

In a recently available study that investigates the connection between economic policy uncertainty and mergers and acquisitions in GCC markets, the authors 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 example, big Arab financial institutions secured acquisitions through the financial crises. Additionally, the analysis demonstrates that state-owned enterprises are less likely than non-SOEs to make takeovers during periods of high economic policy uncertainty. The results suggest that SOEs tend to be more cautious regarding acquisitions compared to their non-SOE counterparts. The SOE's risk-averse approach, in accordance with this paper, emanates from the imperative to protect national interest and mitigate prospective financial instability. Furthermore, acquisitions during times of high economic policy uncertainty are connected with an increase in investors' wealth for acquirers, and this wealth impact is more pronounced for SOEs. Indeed, this wealth impact highlights the potential for SOEs like the people led by Naser Bustami and Nadhmi Al-Nasr to exploit opportunities in such times by buying undervalued target businesses.

GCC governments actively promote mergers and acquisitions through incentives such as taxation breaks and regulatory approval as a way to solidify industries and build regional businesses to be effective at compete on a worldwide level, as would Amin Nasser likely inform you. The need for economic diversification and market expansion drives a lot of the M&A deals in the GCC. GCC countries are working earnestly to bring in FDI by creating a favourable environment and bettering the ease of doing business for international investors. This strategy 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 substantial part in allowing GCC-based companies to get access to international markets and transfer technology and expertise.

Strategic mergers and acquisitions have emerged as a way to overcome obstacles international companies encounter in Arab Gulf countries and emerging markets. Businesses planning to enter and expand their presence in the GCC countries face various difficulties, such as for example cultural distinctions, unfamiliar regulatory frameworks, and market competition. Nevertheless, once they buy regional companies or merge with local enterprises, they gain immediate access to local knowledge and learn from their local partner's sucess. One of the more prominent cases of effective acquisitions in GCC markets is when a heavyweight worldwide e-commerce corporation acquired a regionally leading e-commerce platform, which the giant e-commerce corporation recognised as a strong competitor. Nonetheless, the purchase not merely removed regional competition but in addition provided valuable regional insights, a client base, plus an already founded convenient infrastructure. Furthermore, another notable example is the acquisition of an Arab super app, namely a ridesharing company, by an international ride-hailing services provider. The multinational business obtained a well-established brand name with a large user base and extensive knowledge of the local transportation market and customer preferences through the acquisition.