How to Develop the Middle East Market

1. How to Develop the Middle East Market Jeff Ambjorn Regional Director, Middle East & Africa Dubai Office HKTDC

2. Review of TDC Dubai Office • Consultant Office Since Late 70s • Upgraded to Full Regional office in May 2000 • Oversees 14 Markets Including UAE, Saudi Arabia, Egypt, Bahrain, Kuwait, Lebanon, Oman, Qatar, Jordan, Syria, Iran, Yemen, Iraq and Libya

3. Overview on the Middle East Market Population • Country Million • Egypt 75.5 • Iran 68.5 • Iraq 27 • Saudi Arabia 24 • Syria 19 • Yemen 18 • Libya 6 • Jordan 6 • UAE 4.5 • Lebanon 3.9 • Kuwait 3.2 • Oman 2.6 • Qatar 1 • Bahrain 0.8

4. Overview on the Middle East Market Population

5. Overview on the Middle East Market GDP Growth Rate 2007 • Country % • Kuwait 9 • UAE 8.9 • Qatar 8 • Bahrain 7 • Egypt 6.8 • Jordan 6.6 • Iran 5.7 • Oman 4.5 • Saudi Arabia 4.2 • Syria 3.6

6. Overview on the Middle East Market GDP Growth Rate

7. Overview on the Middle East Market Economic Trends • Free Flow of Capitals • Free Market Enterprise • Economic Diversification • Structure Reforms in Many countries • Accumulated Oil Wealth in the Gulf States

8. Overview on the Middle East Market Liberalizations of Trend Regimes • Participation into the WTO • 8 countries existing WTO Members • 3 Countries Negotiating for Membership • Intra-regional Free Trade Agreement • e.g. GCC • Inter-regional Free Trade Agreement e.g. US Jordan FTA

9. Overview on the Middle East Market Major Issue • High Oil Price • High Inflation Rates • Rising Business Cost • High Rents

10. Hong Kong’s Major Middle East Market Total Export

11. Hong Kong’s Trade With the Middle East Total Export

12. Priority Markets • United Arab Emirates • Saudi Arabia • Qatar • Kuwait • Jordan

13. Prospective Markets with High Population • Egypt (80 Millions) • Iran (70 Millions)

14. United Arab Emirates • HK’s Largest Business Partner in the Region • Highly Competitive Market • The Region’s Re-export Centre • Advance Banking System • Free Flow of Capital

15. Saudi Arabia • Largest Oil Exporting Country • Availability of Capital, convertibility of the Saudi Riyal to hard Currencies • Protection of Trade Marks • Absence of Controls on Capital Movement • Advance Banking System • Liberal Tax System

16. Qatar • Has the 3rd Largest Reserves of Natural Gas in the World • Highest GDP in the World $ 30,000 • Multi-billion Dollar Projects in the Coming Years

17. Kuwait • The only GCC country with Flexible Foreign Exchange Regime • Islamic Banking Claims 25% of Total Bank Assets

18. Advice • Taking Middle East as a Heterogeneous Market • Higher-end and Branded Products for High Income Countries • Small Size Orders (Except Big Markets Like UAE and Saudi Arabia) • Market Should be Constantly Reviewed for Products and Changes • Attractive Packaging of the Goods

19. Practical Tips • Language with Different Background • Contacts with ME Importer Should be Direct and Regular • Flexible Payment Terms • Friendly Business Atmosphere • Develop Personal Relationships for Successful Business

20. Patience is the Key Word to Do Business in the Middle East • Meetings with Officials Will Not Be Settled Until You Are Physically in the Country • It Is Not Uncommon To Have A Meeting Cancelled Once You Arrive • You Should Arrive at Meetings on Time, Although it is Common to Keep Foreigners Waiting • Business Meetings Start After Prolonged Inquires About Health, Families, Etc. • Meetings Are Generally Not Private Until a Relationship of Trust Has Been Developed

21. Recent Promotional Activities of TDC in the Middle East • Service Mission to Kuwait, Riyadh, Dubai and Abu Dhabi Led by HKSAR Chief Executive • ICT Mission To Riyadh, Bahrain and Dubai • Health Care Exploratory Mission • HKMA Road Show in Dubai and Amman

22. Help from TDC • Trade Fairs and Study Missions • hktdc.com to Get Latest Market Information and Trade Contacts • Customized Business Matching Service “PremierConnect” • Hong Kong Fairs • Seminars/ Advisory Services

23. Thank you!See you in the Middle East