Page 97 - Aamir Rehman - Dubai & Co Global Strategies for Doing Business in the Gulf States-McGraw-Hill (2007)

Here to Stay: GCC Market Attractiveness and Risks 81

The average rating for the GCC states was broadly in line with
34
those for the economies of many EU members. The strength of
their reputations should be a factor further enabling the deregula-
tion (and especially the privatization) of the GCC states, as
transparency signals trust and general confidence in the public
sector’s integrity.

TRENDSETTER FOR THE BROADER
MIDDLE EAST
Beyond the Opportunity Formula of prosperity, demographics, and
regulatory reform, the GCC is a very attractive place to do business
due to its role as a trendsetter for the broader Middle East region. In
many respects, the GCC nations are the most admired of the Middle
East and North Africa (MENA) states. The commercial, profes-
sional, political, and cultural linkages between the GCC and other
Middle Eastern economies are an important factor in the GCC’s
appeal to global firms.
Although the Arab population of the GCC countries repre-
sents a small minority of the entire Arab world, its purchasing
power and economic clout make the GCC consumer base the most
sought-after Arabic-speaking customers. While the population of
Arab North Africa (including Egypt), for example, is roughly five
times that of the GCC states, its GDP per capita is less than a third
of the average for those states. The Levant region (Syria, Lebanon,
Israel and the Palestinian Territories, Jordan, and Iraq) is also
more populous than the GCC yet far less prosperous and stable.
Companies in other Arab countries, therefore, actively target GCC
consumers for their goods and services, leveraging their common
language (despite differences in dialect) and cultural values to gain
access to these buyers more effectively.
Tourism is one sector in which GCC-MENA links are
especially strong. Lebanon, with its milder climate, beaches, and
nightlife, has long been a popular destination for tourists from GCC
countries. Political developments in recent years have had a signif-
icant impact on Lebanon’s role as a getaway destination for Gulf
travelers. Many observers note that since September 11, 2001, and
the subsequent War on Terror, travel to the United States (and, to a
lesser extent, Europe) has become much more of a hassle for Arabs