By Michael Gorman

The Arab market is exceptionally prolific. The accessibility of natural resources such as petroleum fields and natural gas attracts many investors from all around the world. As a result, the Arab economy grows exponentially along with the local population.

Specifically, in the past 20 years, Arab society, profoundly traditional and conservative, has made room for entrepreneurs and created a more welcoming environment for Western investors. So, it makes sense why you may want to enter such a promising market.

However, before you start building a business in the Middle East, here are five things you need to consider.

1. Choosing Your Location Carefully

The Arab market is a general term to describe the economy of Arab-speaking countries. Nevertheless, each state has its own financial system based on local resources and opportunities.

That’s why you might want to conduct an in-depth study of the countries that interest you. Unfortunately, only the major countries have precise market data, while the small ones that are under-developed don’t offer the luxury of specific statistics. So, you might want to talk to business experts who work with those countries.

If you wish to build a company in the Arab world, there are a couple more elements to consider when choosing the location:

• Political risk. The country’s safety and political stability are the key elements. Civil wars and terrorist attacks can damage a corporation and put the employees in danger. So, when you pick a state, focus on this aspect.
• Infrastructure. Airports, trains, cars, highways, and roads are important for international business. That’s why the most relevant Arab countries have a developed infrastructure that attracts foreigners.
• Quality of life. Another crucial element is how people live. You probably want to invest in a state that offers its citizens and residents peace, job opportunities, socio-economic freedom, and safety. Sadly, not all Middle Eastern states can provide ideal conditions. So, be careful when you’re picking a candidate for your organization.
• Electricity and Telecommunications. An international business has collaborators all over the world. So, try to consider phone costs and quality, Wi-Fi speed, and electricity fees when choosing the right country.
• Immigration and residency. A multinational business has employees who might relocate in the said country as residents. So, study the residency laws and make sure that your foreign staff can legally immigrate.
• Taxation. Some countries have special laws that help foreign companies invest. Other states add more taxes to foreign organizations because they support local businesses. In this case, you may need to find a local partner that can aid you with taxes.

1. Creating A Pertinent Business Plan

After choosing the right country for your company, you may want to start researching how local entrepreneurship works, what business models are the most effective, and so on.

Start thinking about the type of organization you wish to build. Suppose you want to develop a travel agency, assignment writing service, as SuperiorPapers or eCommerce company. Then, you need to create a business plan that works with the dynamics of said country.

The key is originality. Especially for small corporations, if you want to penetrate the Arab market, you need to come up with an inimitable idea that has a lot of potential. Otherwise, you won’t have success because larger companies have priority and monopoly inside their niche.

Therefore, when putting a business plan together, focus on:

• Looking for opportunities inside of a niche.
• Establishing your brand with a business-oriented message based on high-quality work and internationally valuable principles.
• Targeting a specific type of customer.
• Determining feasibility to understand your budget and potential profit better.
• Studying your competition and see what you can add to the market.
• Developing a marketing strategy.
• Estimate costs.

1. Building A Wise Business Team

As mentioned previously, you may want to create local partners that want to invest in your company. Also, having someone who can help you with local laws, culture, and deals is vital.

The Arab market has layers and tiers, so if you want your organization to thrive, consider associating with someone.

For example, if you have a telemarketing agency, gather essay writers for a company like EssayWritingLand, or a freelance business, having a local team is fundamental to expand.

Moreover, Middle Eastern people rely on trust and connections, so without an intermediate who can recommend your business, you may have trouble fitting in the economy.

Once you have a team, you might want to focus on continuous investments and expansion. The best way to start in the market is to work your way up.

So, the first step is closing small deals with multiple local companies. Here are some of the benefits of small-scale investments:

• As a new entrepreneur in the Arab market, you can understand how things move around without making huge mistakes.
• You can see which companies look for long-term partnerships and are the most serious.
• You can focus and build a plan for more significant deals.
• You make connections.
• You can start to define the businesses that have the most potential for investments.

You might think that it makes no sense to develop a business in the Middle East only to make small deals. However, just like in every market, you can’t pursue the most significant opportunity right away, even if you’re established. 

Many entrepreneurs aim for the Saudi Arabia market since it can generate a lot of profit. Nonetheless, they forget that this Arab kingdom is difficult to penetrate because of the difficulty in getting business visas and closing deals.

Additionally, the selective Saudi Ministry of Foreign Affairs favors official and well-established companies. So, even more, reasons to aim for slow and steady growth.

1. Being Aware of the Culture and Habits

Whether you have Arab roots or not, the culture in the Middle East is different. Also, socio-cultural habits differ greatly from country to country. So, if you want to have success in the market, you need to get to know the culture better.

One of the first things is language. If you don’t know Arab at all, try to learn the basic expressions for “Hello” and “Thank you.” Also, engage in conversation with a friendly, respectful, and calm attitude. 

Along with words, body language is key. Facial expressions and gestures have meaning. For example, strong eye contact can mean that both parties are committed to the project. On the other hand, having a serious and quiet behavior may be seen as rude.

You should respect religious celebrations, like Ramadan, and daily rituals, such as the habit of praying five times a day.

In some countries, Friday and Saturday are sacred, while in other parts, it’s Saturday and Sunday.

1. Studying Negotiation Rituals

Part of the culture is negotiation practices. In the Western world, transparency is crucial while deals are closed after specifying every detail in the contract.

In the Arab world, entrepreneurs speak with metaphors and general terms to keep their reputation. So, a business meeting might seem like a tea break with friends. Nevertheless, even if your conference gives you the impression that the deal is sealed, don’t get your hopes up.

Furthermore, it can take a lot of time before the other party reaches out to communicate the decision. Therefore, you should try to adapt to new situations.

Lastly, make sure that you communicate face to face or via phone as Arabs don’t appreciate written words as much as a full conversation.

Conclusion

If you want to work in the Arab market, try to consider these tips:

1. Choose your location carefully.
2. Create a pertinent business plan.
3. Build a wise business team.
4. Be aware of the culture and habits.
5. Study negotiation rituals.

Bio

Michael Gorman is one of the assignment writers who works for dissertation writing services. He specializes in marketing and management assignments and is the best writer at best essay writing service and thesis writing service. When he’s not working, Michael spends his free time reading and working out.