Page 174 - Aamir Rehman - Dubai & Co Global Strategies for Doing Business in the Gulf States-McGraw-Hill (2007)

158 Dubai & Co.

KEY LESSONS

● In entering a GCC market, multinational firms can choose
from a set of strategies within a three-tier “Engagement
Spectrum.”
“Shallow-engagement” strategies such as straightforward
●
distribution agreements have been the norm but have their
limitations in terms of control and return.
● As businesses grow in strategic importance, “moderate-
engagement” strategies such as joint ventures and
partnerships are key to steering the business and capturing
value.
● Effectively migrating up to “high engagement” requires
companies to assess fundamental market attractiveness, foster
institutional will, identify value-adding partners, and find
a supportive regulatory environment.
● While acquisitions and direct market entry have
historically been impossible, regulatory reform and the rise of
free zones are making high-engagement strategies more
feasible.