Page 18 - Aamir Rehman - Dubai & Co Global Strategies for Doing Business in the Gulf States-McGraw-Hill (2007)

4 Dubai & Co.

● In 2005, the Saudi stock market’s total market
capitalization was greater than that of China or India. 7
● SABIC, a major industrial conglomerate in Saudi Arabia,
reached a market capitalization of $135 billion—a shade
under that of Google and Honda, and greater than Coca-
Cola. 8
● Emaar, Dubai’s leading real estate developer, had a higher
market valuation than any other real estate company
worldwide. 9
● Over 28 million passengers fly through Dubai
International Airport each year. That’s more than 23
passengers per resident—twice the figure for London and
four times the figure for New York. 10
● A sign of the region’s importance is that the 2003 World
Bank and International Monetary Fund (IMF) meetings
were held in Dubai, the first time the event occurred in an
Arab country. 11
● Dubai has 4 times more retail shopping space per person
than the United States. 12
● In a 2006 survey of consumer confidence, the UAE ranked
ahead of the UK, France, Germany, and Italy. 13

In today’s world, no company with global aspirations can
afford to ignore the GCC and the opportunities it presents.

HISTORICALLY OVERLOOKED

Most multinationals have overlooked the GCC in their global
strategies. This oversight is in some ways understandable. For one
thing, the founding of the Gulf Cooperation Council—the economic
and political body linking the economies of the six constituent Arab
countries—did not occur until the early 1980s. The very term
“GCC” is therefore quite new to the language of business.
More important, the countries of the GCC did not enjoy their
spectacular prosperity until the oil booms of the 1970s. At the time,
global executives had almost no experience in the region. Even
today, most senior executives have had little or no exposure to the
GCC in their careers—their global dealings and postings having
been more likely to occur in the United States, Europe, and Japan.