Author: M&CO Legal Insights
Published: July 2025
As M&A activity intensifies across the Gulf Cooperation Council (GCC), cross-border transactions are becoming critical drivers of regional growth and sector consolidation. However, the path to a successful deal in this region is not uniform, it runs through a diverse and evolving regulatory landscape.
At MCO, we work with clients to navigate these complexities, structuring cross-border deals that are both compliant and strategically sound.
Understanding the Regulatory Landscape
Each GCC country maintains its own legal and regulatory frameworks, affecting:
Foreign ownership limits
Merger control regimes
Licensing and approval procedures
Labor and tax compliance
While these differences may appear to complicate dealmaking, they offer structural advantages when leveraged correctly. For example, the UAE’s free zones, Saudi Arabia’s Vision 2030 reforms, and Qatar’s investment incentives each provide tailored opportunities for foreign investors.
Common Legal Challenges in Cross-Border Deals
1. Foreign Ownership Restrictions
Ownership caps vary by sector and jurisdiction. Saudi Arabia permits full foreign ownership in many sectors, but others require local equity partners.
2. Merger Control and Competition Approvals
Each country applies different thresholds for antitrust clearance, requiring early engagement with authorities.
3. Licensing and Operational Permits
Timelines for regulatory approvals differ. Inconsistent sequencing can delay transaction closing.
4. Multi-Jurisdictional Due Diligence
Legal risks must be assessed across multiple legal systems, including corporate governance, labor laws, and tax exposure.
A Practical Approach: M&CO’s Cross-Border Framework
Our recommended strategy includes:
Early Legal Assessment: Begin jurisdiction-specific regulatory reviews at the outset.
Localized Structuring: Adapt entity forms and ownership models to each country’s laws.
Regulatory Engagement: Liaise proactively with authorities to streamline reviews.
Integrated Legal Teams: Coordinate GCC-wide due diligence through in-region counsel.
Looking Ahead: Trends Toward Harmonization
Recent GCC initiatives are paving the way for greater regulatory alignment, including:
Bilateral investment treaties
Unified competition policies under study
Cross-border digital filing systems for UBO and licensing
Investors who plan-ahead will benefit from greater certainty and speed in cross-border transactions.
How MCO Can Support
With deep regulatory experience across all six GCC countries, MCO advises clients through each phase of the M&A lifecycle, from pre-deal legal scoping to post-merger integration. Our regional presence and cross-border capabilities allow us to tailor legal solutions that work across jurisdictions.
For detailed legal guidance on your next cross-border transaction, contact our M&A team at www.mco.sa