Problem is not just with the number of teams. What is the point in having teams such as Oman and UAE which are entirely made up of foreigners? Already India and Pakistan are taking part in the world cup. There is no need to have additional teams, which are entirely made up of nationals from these countries. If countries such as Oman can't include citizens in their squad, then they should not participate in ICC tournaments.
Why does it matter if the teams from UAE, Oman are filled with players from other countries, if they can build a good team and are competitive they will be playing. If you are applying this standard then you need to say that Andrew Strauss, Andy Flower, Grand Flower, Kevin Pietersen should have played only for South Africa and Imran Tahir and Sikandar Raza should play for Pakistan and Andrew Symonds should only play for England.
The reason they are not including their local talents is because they are not interested in playing Cricket nor good enough to play for the national team and if they can assemble a good team, they should participate in any tournament.
Mate, I think you are missing something and not trying to understand main point which is talk able here if any team having three or four players it's not issue but if you are not able to have any player from native country than what is point of having team from this country and as you give example of many players these all done good jobs in domestic set up and then have citizenship which is a good way for playing into this country but here teams like Oman, UAE, Kuwait and Bahrain having no native player and mostly players are coming from subcontinent and playing for them which is not acceptable and it's also against the rules of Olympics Committee.
If these Gulf region teams want to stay in then surely they need to have grass root links with their native players and bring them in main stream which is a good way for having quality game and better results otherwise teams like Nepal and Kenya will struggle and have no enough sources for competing with them on field.