Page 23 - Aamir Rehman - Dubai & Co Global Strategies for Doing Business in the Gulf States-McGraw-Hill (2007)

Introducing Dubai & Co. 9

growth and diversification and the demands of international trade
agreements. All six GCC countries are now members of the WTO.
Dubai has famously created deregulated free zones across a range
of strategic industries, including financial services, media, the
Internet, health care, education, and even the flower market. Qatar,
Kuwait, and Bahrain have established investment parks in which
100 percent foreign ownership is permitted. Each country is on its
own timeline for implementation of the required changes, but all
have committed to opening up their economies to the broader
world. This means, of course, unprecedented access to attractive
GCC markets.
Tapping into the GCC opportunity, however, requires strategies
based on genuine understanding of the region. Chapter 4 will provide
some essential background information on the history and economies
of each country within the region. Although they have much in com-
mon, each country within the GCC has taken its own historical path,
has its own unique features, and faces its own distinct challenges.
The UAE—which includes the bedrock Abu Dhabi, high-pro-
file Dubai, and five other emirates—has become a beacon of change
and a trendsetter for the region through its economic reforms and
strategic development of core industries. The UAE is, in several
ways, the region’s most admired economy, both internally and
globally. In a nutshell, the UAE is a trendsetter.
Saudi Arabia, by far the region’s largest economy by both GDP
and population, is the GCC’s core market. Saudi Arabia is a complex
society in which the monarchy, religious institutions, and business
interests continually balance and shift power and influence. The
Kingdom is the birthplace of Islam and caretaker of Islam’s holiest
sites, and at the same time it is a staunch US ally since World War II.
It is also home to a quarter of the world’s known oil reserves and
has experienced two oil booms that have transformed the economy
and created substantial wealth. Social issues and tensions, however,
are palpable—unemployment is high, social freedoms are deeply
sought, and the government has been engaged in stamping out
extremist groups that have threatened the Kingdom’s stability for
years now. Yet, considering its size and influence, Saudi Arabia
cannot be overlooked. Any business that seeks a genuine GCC
footprint must develop a sound strategy for the Saudi market—
especially if the business has a consumer or retail element.