Page 54 - Aamir Rehman - Dubai & Co Global Strategies for Doing Business in the Gulf States-McGraw-Hill (2007)

38 Dubai & Co.

their firm’s potential customers may be more comfortable with
English. Most fundamentally, many global leaders may overlook the
region entirely—believing that the only “real” opportunities in the
GCC are those linked directly to oil and gas. In truth, the region’s
growing population, broad prosperity, and increased diversification
make it attractive across a much wider range of industries.
This chapter addresses five of the most common misconcep-
tions about the GCC. For each misconception, factual counterpoints
are presented to provide a more informed and nuanced under-
standing. Since any successful strategy relies on sound assump-
tions, this chapter is critical for ensuring that multinational
concerns avoid common misperceptions and approach GCC mar-
kets with a more accurate understanding.

FIVE “DEADLY” MISCONCEPTIONS

When many global business leaders think of the Gulf and its
economies, exotic images come to mind. They recall the film
Lawrence of Arabia, with its images of vast deserts, harsh terrain, and
tribal warfare. They think back to the first Gulf War of the early
1990s, and remember an occupied Kuwait and a threatened Saudi
Arabia, defended by a US-led international coalition. A more dis-
tant—but still painful—memory is of the oil crises of the 1970s, with
long lines at the gas pump and steep price hikes leading to stagfla-
tion. Many business leaders have been following the rapid rise
of the region in the 2000s, which brings to mind Dubai’s opulent
Burj al-Arab (the world’s first “seven-star” hotel) and similar high-
profile projects.
As curiosity about the region abounds, so do the misconcep-
tions. While there are many that could be addressed, we will focus
on five of the most critical. These five “deadly” misconceptions—if
allowed to persist in your organization—can lead to a great many
lost opportunities and misallocated resources.
The five “deadly” misconceptions are:

1. It’s all about oil—the region is only relevant to the
interests of energy-related companies.
2. Everybody’s rich—only high-end products and services
are relevant.