Page 112 - Aamir Rehman - Dubai & Co Global Strategies for Doing Business in the Gulf States-McGraw-Hill (2007)

96 Dubai & Co.

Restrictive conditions of property ownership for expatriates—
while improving greatly through the creation of free zones—are
still another cause of alienation. The inability to own a business or
a home (except in a free zone or in certain residential developments)
acts to curtail one’s sense of belonging and thus limits foreigners’
feelings of allegiance to the countries in which they are living.

Still an Insider’s Game

In all markets, connections matter. This is especially true in the
GCC, where business communities are small and tight-knit and
business success in great part relies on understanding the next
moves the government will make and how they will create com-
mercial opportunities. For multinational companies, this poses a
challenge—but not unlike the challenges posed by China, India,
and other foreign markets.
Savvy multinational firms build long-term relationships with
local business leaders, actively cultivate those leaders’ personal net-
works, and hire locals for key positions. These efforts require an
investment of time, but can pay off handsomely. Commentators
have noted, for example, that Swiss bankers’ orientation toward long-
term relationships with clients has often made them more successful
67
than their American competitors in the GCC. As GCC economies
privatize, decision-making rights will become more widely distrib-
uted. While on the one hand this implies more “typical” and open
market dynamics, it also speaks to the importance of a wide network
of business relationships that can provide access to a broader set
of opportunities. And in the GCC—more than elsewhere—the
“insiders” need outside help to run their businesses and take them
to the next level.

Race Matters
Racism in the GCC countries is a real issue, especially for nonwhite
expatriates. While locals are often seen by outsiders as being beyond
reproach, the locals themselves typically value white Europeans
and Americans more highly than expatriate Arabs, Asians, and
Africans. Nor is it uncommon, for example, for expatriate security
guards to turn a blind eye to misbehaving local children whereas
they would take action if the children were those of expatriates.