Business Landscape in the Gulf
Maggie N. Nassif , PhD, MBA
Administrative Director
National Middle East
Language Resource Center
Orientalism
Terrorism
Dubai Marina
GCC Countries
GCC Countries:
The Cooperation Council for the Arab States of
the Gulf (CCASG)
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Established in 1981
Political, and economic
GCC Flag
How do we measure success in the Gulf?
Do the commonly used tools apply?
• returns on investments
• self sustainability
• full employment
What is there beyond the real estate
phenomenon?
•Potential
•Challenges
SWOT analysis
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Different urban growth models:
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New York
Las Vegas, Nevada
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Does one size fit all? Two generations
Saudi Arabia’s Population: 26,939,583
•Arab 90%,
•Afro-Asian 10%
•Non-nationals 20%
•Growth rate: 1.5%
Saudi Arabia :
USA:
GDP: $760 Billion
GDP Growth: 6%
Per Capita GDP: $25,700
$15.6 Trillion
2.2%
$49.800
Investments: 21%GDP
12.9%GDP
Debt: $127.4 Billion
$14.7 Trillion
(US economy passed the trillion dollar mark in 1969)
Saudi Exports:
Petroleum and petroleum products
17% of the world's proven petroleum reserves
80% of budget revenues
90% of exports
Partners:
Japan 13.9%, China 13.6%, US 13.4%, South Korea
10.2%, India 7.8%, Singapore 4.8%
Saudi Arabia:
Imports:
machinery, foodstuffs, chemicals, vehicles, textiles
Partners: China 12.8%, US 11.9%, Germany 7.1%, South
Korea 6%, Japan 5.6%, India 4.9%, Italy 4.1%
Saudi Arabia Transnational Issues:
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Labor and trafficking issues
2009 anti-trafficking law
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Unemployment 10%
80% labor force are non-nationals
Borg Al Arab Hotel : UAE
UAE’s Population: 5,473,972
•Emirati citizens 19%,
•Arab and Iranian expatriates 23%,
•South Asian 50%,
•Other 8%
•Growth rate: 3%
UAE:
USA:
GDP: 271 Billion
GDP Growth: 4%
Per Capita GDP: $49,000
$15.6 Trillion
2.2%
$49.800
Investments: 28.5%GDP
Debt Billion $158.9 Billion
12.9%GDP
$14.7 Trillion
UAE :
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Transnational issue:
Trafficking
Kuwait City
Kuwait’s Population: 2,695,316
•Kuwaiti 45%,
•Arab Expatriates 35%,
•South Asian 9%,
•Iranian 4%,
•Other 7%
•Growth rate: 1.8%
Kuwait:
USA:
GDP: $165.9Billion
GDP Growth: 6.3%
Per Capita GDP: $43,000
$15.6 Trillion
2.2%
$49.800
Investments: 15.3%GDP
Debt Billion: $28.2 Billion
12.9%GDP
$14.7 Trillion
Kuwait:
Transnational issue:
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Trafficking and employment issues
Maritime boundaries with Iran
Bahrain Financial Center
Bahrain’s Population: 1,281,332
•Bahraini 46%,
•Non nationals 54%
•15% unemployment
Growth Rate: 2.6%
Bahrain
USA:
GDP: $32.4 Billion
GDP Growth: 2%
Per Capita GDP: $28,000
$15.6 Trillion
2.2%
$49.800
Investments: 19%%GDP
Debt Billion:$25.2
12.9%GDP
$14.7 Trillion
Oman
Oman’s Population: 3,154,134
•Ethnic groups: Arab, South Asian, African
•Non-nationals 20%
•Growth rate: 2%
Oman:
USA:
GDP: $90.6 Billion
GDP Growth: 5%
Per Capita GDP:$28,000
$15.6 Trillion
2.2%
$49.800
Investments: 25,5%GDP
Debt: $9.7 Billion
12.9%GDP
$14.7 Trillion
Qatar Islamic Art Museum
Qatar’s Population: 2,042,444
Arab 40%,
South Asian 36%
Iranian 10%,
Other 14%
Growth rate: 4.93% : Highest in the world
Qatar:
USA:
GDP: 189 Billion
GDP Growth: 6.3%
Per Capita GDP:$102,800
Highest in the world
$15.6 Trillion
2.2%
$49.800
Investments: 28%GDP
Debt: $137 Billion
12.9%GDP
$14.7 Trillion
Qatar:
Imports
Machinery, transport equipment, food, chemicals,
consumer goods
Partners: US 12.7%, UAE 12.3%, Saudi Arabia 9.3%, UK
6.2%, China 5.4%, Germany 5.2%, Japan 4.6%, France
4.6%, Italy 4.5%
Qatar:
Exports:
Natural gas -3rd largest reserve in the world,
petroleum products, fertilizers, steel
Partners:
Japan 25.7%, South Korea 17.7%, India 9.6%,
Singapore 6.3%, UK 6.2%
Construction in Dubai
China:
USA:
GDP: $12.38 Trillion
GDP Growth: 7.8%
Per Capita GDP:$9,100
$15.6 Trillion
2.2%
$49.800
Investments: 47.8% GDP
Debt: $770.8 Billion
12.9%GDP
$14.7 Trillion
Competitive Advantage:
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Saudi Arabia: Largest oil reserve in the world
Qatar: 2nd Largest natural gas reserve
Highest per capita GDP
Dubai: Highest investment in infra structure
Abu Dhabi: The largest sovereign wealth
in the world
Investments and infra-structure building:
• Education/vocational training
• Healthcare
• Urban Planning/construction
• Tourism
• Service industries: Financial/IT
• Media
• Logistics( Shipping/ airlines)
UAE 3rd re-export center: 1 Singapore, 2 Hong Kong.
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Foreign Investments:
GCC companies invest globally eg: Investcorp
In West
In Middle East
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Attracting most of the headquarters of foreign
companies in the region through tax free laws.
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Innovation:
Dubai Executive Office
• Education and culture:
Qatar Foundation international
• Gender Equality:
Women entrepreneurship
• Environment:
Masdar City
The Palm Project
The hotel
Crucial Issues:
• Demographics
Up to 80% of population non national- guest workers
• Unemployment :
Saudi Arabia 10%
Bahrain and Oman 15%
• Water
• Restrictions on some diversification