Transcript How to Develop the Middle East Market

How to Develop the Middle East Market
Jeff Ambjorn
Regional Director, Middle East & Africa
Dubai Office
HKTDC
Review of TDC Dubai Office
Consultant Office Since Late 70s
Upgraded to Full Regional office in
May 2000
Oversees 14 Markets Including UAE,
Saudi Arabia, Egypt, Bahrain,
Kuwait, Lebanon, Oman, Qatar,
Jordan, Syria, Iran, Yemen, Iraq and
Libya
Overview on the Middle East Market
Population
Country
Million
Egypt
Iran
Iraq
Saudi Arabia
Syria
Yemen
Libya
Jordan
UAE
Lebanon
Kuwait
Oman
Qatar
Bahrain
75.5
68.5
27
24
19
18
6
6
4.5
3.9
3.2
2.6
1
0.8
Overview on the Middle East Market
Population
Population in ME
75.4
68.6
80
70
60
50
Million
40
30
18 19
20
10
0.8
1
5.9
2.6 3.2 3.9 4.5
27.1
23.9
6
0
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Overview on the Middle East Market
GDP Growth Rate 2007
Country
%
Kuwait
UAE
Qatar
Bahrain
Egypt
Jordan
Iran
Oman
Saudi Arabia
Syria
9
8.9
8
7
6.8
6.6
5.7
4.5
4.2
3.6
Overview on the Middle East Market
GDP Growth Rate
12
10.5
10
8.2
8
7.4
7.2
6
2
2.5
1.7
-2 1985
3.2
2.98
-2
1988-2.2 1990
2.5
6.2
5.6
3.7
1
0.5
0
-4
4.9
4.2
4
5.9
1993
1995
1997
2000
2002
2005
2007 2008
Overview on the Middle East Market
Economic Trends
Free Flow of Capitals
Free Market Enterprise
Economic Diversification
Structure Reforms in Many
countries
Accumulated Oil Wealth in the Gulf
States
Overview on the Middle East Market
Liberalizations of Trend Regimes
 Participation into the WTO
8 countries existing WTO Members
3 Countries Negotiating for Membership
 Intra-regional Free Trade Agreement
e.g. GCC
 Inter-regional Free Trade Agreement
e.g. US Jordan FTA
Overview on the Middle East Market
Major Issue
High Oil Price
High Inflation Rates
Rising Business Cost
High Rents
Hong Kong’s Major Middle East Market
Total Export
2007
(US$ mil)
% Change 2006/2007
2591
+26
Saudi Arabia
408
+11.6
Jordan
215
-4.8
Iran
83
-1.9
Kuwait
58
+3.8
Bahrain
56
+32.7
Syria
25
+42.2
5049
+17.5
UAE
Total (Including
other ME countries
Hong Kong’s Trade With the Middle East
Total Export
2006
2007
2008 (up to
March)
Value
(US$
million)
Growth
(%)
20052006
Value
(US$
million)
Growth
(%)
20062007
Value
(US$
million)
Growth
(%)
20072008
Total
Export
4,297
+ 13.4
5,049
+ 17.5
1,291
+ 14.7
Domesti
c
Exports
117
+ 26.5
108
- 7.2
28
+ 4.2
Reexports
4,180
+ 13.0
4,940
+ 18.2
1,263
+ 14.9
Imports
4,132
+ 9.3
4,198
+ 1.6
1,249
+ 11.2
Total
Trade
8,429
+ 11.3
9,247
+ 9.7
2,540
+ 12.9
Priority Markets
United Arab Emirates
Saudi Arabia
Qatar
Kuwait
Jordan
Prospective Markets with High
Population
Egypt (80 Millions)
Iran (70 Millions)
United Arab Emirates
 HK’s Largest Business
Partner in the Region
 Highly Competitive Market
 The Region’s Re-export
Centre
 Advance Banking System
 Free Flow of Capital
Saudi Arabia
 Largest Oil Exporting
Country
 Availability of Capital,
convertibility of the Saudi
Riyal to hard Currencies
 Protection of Trade Marks
 Absence of Controls on
Capital Movement
 Advance Banking System
 Liberal Tax System
Qatar
 Has the 3rd Largest
Reserves of Natural Gas in
the World
 Highest GDP in the World
$ 30,000
 Multi-billion Dollar Projects
in the Coming Years
Kuwait
 The only GCC country with
Flexible Foreign Exchange
Regime
 Islamic Banking Claims
25% of Total Bank Assets
Advice
 Taking Middle East as a Heterogeneous Market
 Higher-end and Branded Products for High Income
Countries
 Small Size Orders (Except Big Markets Like UAE and
Saudi Arabia)
 Market Should be Constantly Reviewed for Products and
Changes
 Attractive Packaging of the Goods
Practical Tips
 Language with Different Background
 Contacts with ME Importer Should be Direct and Regular
 Flexible Payment Terms
 Friendly Business Atmosphere
 Develop Personal Relationships for Successful Business
Patience is the Key Word to Do Business in the
Middle East
 Meetings with Officials Will Not Be Settled Until You Are
Physically in the Country
 It Is Not Uncommon To Have A Meeting Cancelled Once You
Arrive
 You Should Arrive at Meetings on Time, Although it is Common
to Keep Foreigners Waiting
 Business Meetings Start After Prolonged Inquires About Health,
Families, Etc.
 Meetings Are Generally Not Private Until a Relationship of Trust
Has Been Developed
Recent Promotional Activities of TDC in the Middle
East
 Service Mission to Kuwait, Riyadh, Dubai and
Abu Dhabi Led by HKSAR Chief Executive
 ICT Mission To Riyadh, Bahrain and Dubai
 Health Care Exploratory Mission
 HKMA Road Show in Dubai and Amman
Help from TDC
 Trade Fairs and Study Missions
 hktdc.com to Get Latest Market Information and Trade
Contacts
 Customized Business Matching Service “PremierConnect”
 Hong Kong Fairs
 Seminars/ Advisory Services
Thank you!
See you in the Middle East