Page 76 - Aamir Rehman - Dubai & Co Global Strategies for Doing Business in the Gulf States-McGraw-Hill (2007)

60 Dubai & Co.

Expatriate populations across the region consist of Arabic-
speaking and non–Arabic speaking nationalities. Arabs from
Egypt, Lebanon, Yemen, and elsewhere come to work in the GCC
for its higher standard of living and its opportunities. Asian com-
munities from the Indian Subcontinent, the Philippines, and else-
where also comprise a large component of the expatriate popula-
tion throughout the region. Managerial and professional
expatriates from Europe, Australia, and the United States are
increasingly common—especially in cosmopolitan and attractive
Dubai. One interesting and fast-growing expatriate sector is made
up of EU and US nationals of Middle Eastern descent choosing to
work in the GCC due to the scale of opportunities there and their
cultural and linguistic affinity with the region. 23
One result of the GCC’s diversity is that English is used as the
primary language in most private-sector institutions. Even govern-
ment documents such as driver’s licenses and visas—as well as
street signs—are typically in both Arabic and English. While Arabic
is the official language, English is the lingua franca in many of the
more cosmopolitan areas and especially in the UAE, where expatri-
ates are the majority. In fact, UAE police officers are required to
learn English, and one sometimes finds Arabs who speak formal
English more fluently than formal Arabic!
While expatriate populations are large, they may not always
be the most attractive customer segments. As already noted, locals
control the bulk of the resources and the private wealth. Many
expatriates are workers with low skills with minimal disposable
income. It is also crucial to note that much expatriate wealth is
deposited outside the GCC (often in the “home country”) in the
form of remittances or investments. The prosperity visible in the
GCC, therefore, is largely a reflection of local wealth. Expatriates
may comprise a third of the GCC population, but their purchasing
power is less than a third of the regional total.
Nonetheless, multinationals that enter the GCC market cannot
afford to underestimate the importance of expatriates to the local
economies. For one thing, expatriates from a firm’s home country
are a natural affinity group to target as the firm explores the GCC.
In addition to comprising a large consumer base with attractive,
professional subsegments, expatriates are an immensely important
pool of talent. Hiring expatriates already in the market is an