Page 15 - Aamir Rehman - Dubai & Co Global Strategies for Doing Business in the Gulf States-McGraw-Hill (2007)

INTRODUCTION

Introducing Dubai & Co.

The economies of the Arabian Gulf states are among the most
dynamic in the world today. Wealth is being generated at historic
rates, driven largely—but not entirely—by a boom in oil prices.
Gross domestic product (GDP) growth in the Gulf countries often
approaches or exceeds the double digits, thanks in large part to
these countries’ rapidly evolving demographics; youth make up
roughly half the population in these states and often lead consumer
demand. Education levels, connectivity to the broader world, and
business expertise are higher than ever before. Gulf governments
are changing the regulatory environments of their states, with a
closed-economy approach quickly yielding to World Trade
Organization (WTO) standards and demands for open trade.
Competition is increasing in every industry in the Gulf, where
multinational corporations are finding themselves deadlocked in a
tug-of-war with increasingly savvy local firms. And in contrast
with some other emerging markets, the Gulf states have a superb
infrastructure and sound banking systems. According to
Transparency International, the global civil society organization
that monitors corruption, most Gulf countries have about the same
level of corruption as Taiwan and South Korea. Even Saudi Arabia,
considered the least transparent, is ranked as less corrupt than both
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China and India. To be sure, the states of the Gulf Cooperation
Council (GCC)—the United Arab Emirates (UAE), Saudi Arabia,

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