The Dubai Boom
Advanced Exporters
Gibbs Stewart believes Australians have an inherent advantage in the market because we’re “less controversial” than exporters from the United States. “There are opportunities, where there might have been an American supplier doing business, to also offer a valid business proposition,” she suggests.
Established exporters are already doing a good job consolidating Australia’s high standing. “There’s a growing constituency, ex-pats and Australian businesses over there that bode well for us because we’re interested in the market and people see us being interested in the market,” she says. “It sets a good reputation for others.”
And while Dubai is a great starting place for exports to the Middle East, it is essentially a small, competitive market compared with its appeal as a gateway to other markets that might pay more attention to Australian exports.
“Dubai gives you great grounding for the UAE and other Middle Eastern countries because it is quite liberal. It gives you an understanding of how business operates in the Middle East,” says Waite. He recommends looking into Abu Dhabi—”because they’re the ones with the real money”—and then Qatar: “They’re probably about five years behind Dubai; they’re about to really take off.”
Barriers
Apart from the competition, some cultural differences may hinder trade, particularly for female exporters. Gibbs Stewart says it’s about understanding and accepting the culture and then working around it.
“When a woman goes there, more than likely she’ll be doing business with a man. Sometimes there are cultural things that might not allow good communication or the development of a relationship that you might develop in other cultures,” she notes. “You have to understand that they won’t go out to dinner with you, because it’s not the appropriate thing to do. Sometimes they won’t shake your hand. In any culture there are the more conservative and the more liberal, and those who are more conservative have a different interaction with women.”
The Future
The Australian Government recognises the value of trade with the Gulf Cooperation Council, which includes Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates, and the two parties began free trade negotiations last year.
Since the UAE is quite an open market already, a free trade agreement will most likely affect the rules for foreign direct investment, allowing foreign-owned entities to trade outside the current free trade zones. Earlier this year, UAE Minister of Economy Sultan Bin Saeed Al Mansouri indicated the law would follow that course when he announced that the Companies Law will be altered slightly where foreign investment is required: “We will allow 100 percent foreign ownership wherever it helps the economy.”
Trade Links
Austrade Middle East & North Africa site: www.austrade.com/ME-Home/default.aspx
Australian Arab Chamber of Commerce & Industry (AACCI): www.austarab.com.au
Australian Business Council Dubai: www.abc-dxb.com
Department of Foreign Affairs: www.dfat.gov.au/geo/uae
Middle East & Gulf Australian Alumni (MEGAA) Network: www.megaanetwork.com
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