Exporting to the Middle East

Opportunities Galore

Lebanese Ziad Haddad, a partner in an architectural and engineering firm, believes there are many opportunities for Australian businesses in his country.

“Our economy is based largely on agriculture and tourism and more recently the introduction of soft industries such as IT.

“The Lebanese banking system is both advanced and extensive stretching out into neighbouring African and Arab countries offering opportunities for Australian banks to form associations.

“Many benefits can be drawn from a serious cultural exchange between the two countries considering Lebanon’s strong bonds with Europe, its diverse culture, multilingual citizens, and geographical location.”

Lebanon is, as are many of the Gulf countries, transforming itself through construction and engineering. According to Haddad, numerous Australian consulting businesses have tapped into this wealth via joint ventures, acquisitions, and so on.

Many of the participants said that their countries were eager to increase their knowledge and skills in industries such as agriculture (farm management and animal husbandry), IT and telecommunications, water and energy, mining, construction, health, tourism, finance, food, and the shipbuilding industry.

Education, in particular higher education and vocational training, is considered crucial to continuing the prosperity of the Arab league economies.

Lebanon’s ties with the West over the past century have also seen the establishment of a large number of western missionary-style schools and universities, in particular a glut of private teaching institutions.

“In the last 10 years, many of these institutions have developed links with foreign universities and similar opportunities may well be available to Australian institutions that can provide resources and modern management techniques,” says Haddad.

Acquisitions, joint ventures, shareholding, and management will be critical to the modernisation of many of these countries.

It is best summed up by Mamoun Al-Sibai, a telecom specialist from Kuwait: “Australia is in a position to establish unprecedented economic, political, and social ties with all Arab countries including Kuwait.

“I'm expecting a lot from the CAAR program and I'm optimistic that this event will be a landmark to achieving mutual benefits between all countries involved.”

FOREIGN EXCHANGE

The exchange program was organised by Australian Business International Trade Services with sponsors including Etihad Airways, the national airline of the United Arab Emirates, and local Australian supporters Oz Jet Boating, BridgeClimb, Taronga Zoo, and Unilodge. Etihad Airways commenced services from Abu Dhabi to Sydney and Brisbane in 2007, creating more opportunities to develop business synergies between Australia and the Arab world.

Participants took part in a four-week professional development program that included:

•         work experience placement with an Australian company

•         workshops and seminars on topics such as ‘doing business in Australia’ and ‘understanding the Australian business culture’

•         briefing on foreign policy and the trade and investment relationship

•         meetings with key Arab and Australian business and community leaders

•         attending cultural and social activities.

 * Ron Krueger is public relations manager for NSW Business Chamber (nswbusinesschamber.com.au)

UAE Tools, Tips and Traps

Phillip Waite offers some tips on doing business in the UAE

The United Arab Emirates (UAE) was formed on December 2 1971 as a federation of seven Emirates including Abu Dhabi (the capital), Ajman, Dubai, Fujairah, Sharjah, Umm Al Quwain and Ras Al Khaimah.

The United Arab Emirates should be the first port of call for Australians seeking to do business with the Arab world. It is a nation that is liberal and open in its business dealings. Similar to Singapore as a hub to the rest of Asia, the UAE is positioning itself as a distribution and logistics hub for the Middle East and Africa region.

The UAE is a cosmopolitan society that is familiar with the methods and means of doing business worldwide. However, there are a few points that people new to the Arabian business environment should keep in mind.

Business is conducted on the basis of personal relationships and mutual trust. It is crucial to build on these. Companies are often a family affair, with the ultimate decision-maker being, in most cases, the patriarchal head of the family. Even if this is not the case, it is essential to clearly identify the decision-maker.

However, your initial meetings are likely to be at a lower level and probably with an expatriate South Asian senior or middle manager. Business cards should be printed in English and Arabic. Brochures and presentation material should be delivered in colour and be of exceptional quality.