The next sector, followed by financial services is retail and consumer goods, where traditional retailers and online platforms continue to seek efficiencies to build scale. Investors based out of GCC continue to lead the M&A activity in the region with domestic deals making up the majority of the transactions within the GCC region.
During the last three years, Kuwait has been second to the UAE in terms of the numbers of M&A transactions. According to a report published by Kuwait Financial Centre, around 127 deals were closed involving Kuwaiti entities between 2014 and 2018, representing 23% of all M&A in the GCC during that period. Furthermore, Kuwait accounted for around 34% of all regional M&A transactions in the fourth quarter of the last year, with the move towards consolidation in the financial sector expected to continue this year.
Recent developments supposedly will drive other investors in the region to consider M&A as a way of remaining competitive. Furthermore, consolidation may help larger and more prominent players sustain and potentially expand market share and therefore incentivize additional M&A.
Profit resulting from the disposal of assets including the sale of an asset in whole or part, conveyance of its title to third parties and other acts including disposal of shares of a company whose assets are mainly immovable properties in the State in Kuwait.
Capital gains / losses would be computed based on the sale price less purchase costs. Capital losses may be offset against other trading profits of the investor entity.
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M&A in the GCC region is primarily driven by consolidation, especially in the banking and financial services sector, which witnesses several national and cross-border mergers.
The next sector, followed by financial services is retail and consumer goods, where traditional retailers and online platforms continue to seek efficiencies to build scale. Investors based out of GCC continue to lead the M&A activity in the region with domestic deals making up the majority of the transactions within the GCC region.
During the last three years, Kuwait has been second to the UAE in terms of the numbers of M&A transactions. According to a report published by Kuwait Financial Centre, around 127 deals were closed involving Kuwaiti entities between 2014 and 2018, representing 23% of all M&A in the GCC during that period. Furthermore, Kuwait accounted for around 34% of all regional M&A transactions in the fourth quarter of the last year, with the move towards consolidation in the financial sector expected to continue this year.
Recent developments supposedly will drive other investors in the region to consider M&A as a way of remaining competitive. Furthermore, consolidation may help larger and more prominent players sustain and potentially expand market share and therefore incentivize additional M&A.