Economists predicted that the Gulf states are generally directed to diversify sources of income, especially after the sharp drop in oil prices and the search for solutions to face the economic deficits and rising public debt ratio. Experts believe that broad reforms would include most of the sectors of the state as well as the trend towards Privatization sectors moreover the acquisitions and mergers are the most important mechanisms that Gulf states will take to cope with the deficit.
The Kingdom of Saudi Arabia takes immediate steps to transfer and merge of one of the largest oil-producing companies in the Kingdom Ramco into a joint stock company and diversify its production sectors and put up 5% of its shares for sale.
As for The United Arab Emirates, it is expected to become one of the most important and hottest adoptive countries for mergers and acquisitions companies, particularly in the media and technology sectors. The data indicate that the UAE in the near future will become one of the most important leading regional activities in the area. Research suggests that the media and technology sectors would take the highest value of deals has reached takeover deal by Standard NC hard company to the highest value of $ 292 million from the e-commerce platform.
One of the economy analysis companies predicted that more than 27 active giant companies in the Gulf markets moving towards merger and acquisition. Reports and studies show the fast increasing will be in demand and investment in the energy, mining, and utility sectors. while others will see a slow down or moderate in the activity like the sectors of transportation, construction real estate, health, and medical care.
According to the scale of the global trust Capital Confidence, 37% of active companies in the Middle East and North Africa move towards mergers and acquisitions within the next 12 months. As investments will increase by sovereign wealth funds with a regional increase as foreign investors and international companies.