The growth of the GCC member states have been exponential especially with regard to oil and gas. In order to reduce risks, the GCC member states use M&A transactions with the will to move from an economy based on oil and gas to an economy based on industry and services.

The incoming capital results from inbound deals mainly made by foreign investors in the UAE and Saudi Arabia. The outgoing capital of the GCC results from outbound deals mainly made by investors from the states of Saudi Arabia and the UAE. Investments are made all over the world without distinction between developed countries (United Kingdom, United States of America and European Union) and emerging countries (MENA countries, India, Jordan, Malaysia and Iraq).

The key factors in the selection of the target are economy (is the market large and consumers well-off?), institutions (are they established and stable?) as well as the language, geographic distance, religion, history and culture.

This Practice Note provides an overview on the opportunities, challenges and practical guidance on how to attract GCC investors or international investors.