Middle Eastern fortunes

While so many British firms are looking to cash in on the rapidly emerging markets of India and China, an increasing number have realised now many lucrative opportunities are available in the Middle East.

In this week's Monday Interview, Bill McPherson, Emirates Airlines' recently appointed man in Newcastle, talks about the amazing growth he has seen in Dubai since moving there in 2000.

He also told me about the many business opportunities in the Gulf region for North-East firms.

Having spent some time working in the Middle East myself, I would say the Gulf region certainly offers fantastic opportunities for businesses looking to expand overseas.

In Dubai, which has a skyline that seems to change on a daily basis, developers will never be short of work in the near future -at least while the city continues to grow at an exponential rate.

Meanwhile, an influx of ex-pat workers from around the globe, along with a population living in a tax-free environment with a generous disposable income, means there are retail and leisure opportunities aplenty.

Of course one of the obvious advantages the Gulf region has over the Chinese market for example, is the lack of a language barrier. Everyone speaks English.

Another major draw to the Gulf is the growing number of 'free zones' in the region.

For those who aren't familiar with them these are specially designated sites for businesses where there are financial incentives to invest, less red-tape than usual and a first-rate logistics infrastructure, all within an enclosed area.

These zones are exempt from foreign ownership laws that exist in certain Gulf countries that can restrict overseas businesses from setting up there.

They also seek to remove red tape that often rears its ugly head when doing business in the Middle East so you can potentially register your business there within 24 hours.

And, with such free zones in Dubai as Internet City, Logistics City and Media City, companies can often find themselves on the doorstep of similar firms in the same sector which can help bring about partnerships or joint ventures.

Of course, doing business in the Gulf is not without its challenges. In Dubai the soaring cost of living is beginning to take its toll and tempt businesses into less developed areas like Doha in Qatar or neighbouring Emirates such as Sharjah or Ras Al Khaimah.

The astronomical rate of development seen in Dubai over such a short space of time has also meant it is dogged by traffic congestion as the infrastructure struggles to support new buildings and a growing population.

But these are merely teething problems in what is fast becoming one of the most dynamic places to do business in the world.

Hopefully the launch of Emirates' first Dubai to Newcastle flight next month will help develop trading ties between us and the United Arab Emirates - one of the Gulf's fastest growing countries and the business hub of the region.

Meanwhile UK Trade and Investment is organising a trip for North-East companies to visit the Middle East later this year in search of money-spinning deals with Arab businesses.

See nebusiness next month as we speak to a number of North-East firms as they embark on a trade mission to the Gulf region.

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