Page 81 - Aamir Rehman - Dubai & Co Global Strategies for Doing Business in the Gulf States-McGraw-Hill (2007)

Here to Stay: GCC Market Attractiveness and Risks 65

THE GCC’S OPPORTUNITY FORMULA

The GCC has become—and, we believe, will remain—a highly
attractive place to do business. What makes the place so
appealing for business is a combination of factors that have
converged to create economic dynamism and opportunity.
Three core elements, when put together, form the “Opportunity
Formula” behind the GCC’s ongoing success story (see Figure 3.1).

Figure 3.1 The GCC’s Opportunity Formula

Sustained prosperity and growth, attractive demographic
shifts, and ongoing regulatory reform are the pillars that have
made—and continue to make—the GCC an attractive place to do
business.

Sustained Prosperity and Growth
The GCC is a prosperous place—especially by emerging-market
standards. In 2006, the region’s GDP per capita in PPP (purchasing
power parity) terms was around $20,000. This figure compares
favorably with other hot markets—roughly three times that of China
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($7,600) and more than five times that of India ($3,700). This pros-
perity gives the average consumer in a GCC country a much higher
level of disposable income than his or her counterpart in other
markets. And while the GCC has a much smaller consumer base
than China and India—about 40 million people—its combined
population is about two-thirds that of the UK. Moreover, the GCC’s
consumer base is heavily concentrated in 8 to 10 key urban centers.
It is therefore not surprising that the GCC has increasingly become
a target market for luxury goods such as perfumes, designer