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 75.5 Iran 68.5 Iraq27 Saudi Arabia 24 Syria 19 Yemen 18 Libya 6 Jordan 6 UAE 4.5 Lebanon 3.9 Kuwait 3.2 Oman 2.6 Qatar 1 Bahrain 0.8
Overview on the Middle East Market Population
Overview on the Middle East Market GDP Growth Rate 2007 Country % Kuwait9 UAE 8.9 Qatar 8 Bahrain 7 Egypt 6.8 Jordan 6.6 Iran 5.7 Oman 4.5 Saudi Arabia4.2 Syria 3.6
Overview on the Middle East Market GDP Growth Rate
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 UAE Saudi Arabia Jordan Iran Kuwait Bahrain Syria Total (Including other ME countries
Hong Kong’s Trade With the Middle East Total Export (up to March) Value (US$ million) Growth (%) Value (US$ million) Growth (%) Value (US$ million) Growth (%) Total Export 4, , , Domesti c Exports Re- exports 4, , , Imports4, , , Total Trade 8, , ,
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 3 rd 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