S&P Predicts Bank Merger Activity in UAE, Kuwait and Bahrain

Article here.

The key issue is the market for corporate control.  Many local private investors would prefer to hold the majority in a "samak saghir" (small fish) than a minority position in a "huut" (whale).  And in  the merged entity there is sadly only one chairman.  And it is hard to let go of control.

Perhaps, the sting of corporate distress coupled with regulatory encouragement can do the trick.