Page 21 - Aamir Rehman - Dubai & Co Global Strategies for Doing Business in the Gulf States-McGraw-Hill (2007)

Introducing Dubai & Co. 7

Iraq—have experienced a great deal of conflict and turmoil, leading
them to be seen as unstable and largely unattractive markets. The
Levant, however, boasts a rich commercial heritage that is
renowned in the Middle East and beyond. Merchants from the
Levant—particularly from Lebanon—have long been admired for
their entrepreneurship and commercial savvy. These traits find
their roots in the centuries of trade experience inhabitants acquired
in their years living along the vital Arabia-Asia commercial route,
as well as in the frequent contact that those living in the string of
port cities had with commercial affairs. Fed by regular rains and
large rivers, the Levant, unlike the GCC, has a robust agricultural
sector that has been critical to its historical prosperity. Current-day
Iraq is, after all, located on the site of ancient Mesopotamia and part
of the zone known as the “Fertile Crescent,” the existence of which
enabled the transition from nomadic tribes to permanent civiliza-
tions. The economic promise of the Levant is today overshadowed
by political conflict.
The second cluster of the Middle East—North Africa—consists
of Egypt, Sudan, Libya, Algeria, Tunisia, and Morocco. These
countries share a tradition shaped by Mediterranean trade, vast
expanses of desert, a combination of agriculture and herding, and
the experience of European (predominantly French) colonialism.
Meaningful oil and gas reserves are found here, but GDP per capita
and general standards of living are modest. Egypt, the largest Arab
nation, whose population exceeds 80 million, has been a center of
cultural heritage throughout ancient, medieval, and modern times.
Egypt remains the cultural hub of the Middle East, with its thriving
film industry and literary output serving as evidence.
The GCC nations make up a third, distinct cluster of Middle
Eastern states. Their heritage is largely nomadic due to the region’s
harsh desert terrain. Prior to its accumulation of oil wealth, the
GCC’s facilitation of trade between Asia, Africa, and Europe was its
core commercial activity with relevance to the outside world.
Fishing, pearling, and other low-intensity maritime industries were
also of local importance, as was raising livestock, which developed
into a key form of wealth for the region. The past few decades, on
the other hand, have seen fabulous oil booms, busts, and nowa-
days, significant economic reforms. Today, the prosperity and
dynamism of the GCC stands out from the rest of the Middle East,