Business Landscape in the Gulf

Maggie N. Nassif , PhD, MBA

Administrative DirectorNational Middle East

Language Resource Center

Orientalism

Terrorism

Dubai Marina

GCC Countries

GCC Countries:The Cooperation Council for the Arab States of the Gulf (CCASG)

•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

• Different urban growth models:

• New York • Las Vegas, Nevada

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 $15.6 TrillionGDP Growth: 6% 2.2%Per Capita GDP: $25,700 $49.800

Investments: 21%GDP 12.9%GDPDebt: $127.4 Billion $14.7 Trillion(US economy passed the trillion dollar mark in 1969)

Saudi Exports:Petroleum and petroleum products17% of the world's proven petroleum reserves80% of budget revenues90% 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:

•Labor and trafficking issues2009 anti-trafficking law

•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 $15.6 TrillionGDP Growth: 4% 2.2%Per Capita GDP: $49,000 $49.800

Investments: 28.5%GDP 12.9%GDPDebt Billion $158.9 Billion $14.7 Trillion

UAE :

•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 $15.6 TrillionGDP Growth: 6.3% 2.2%Per Capita GDP: $43,000 $49.800

Investments: 15.3%GDP 12.9%GDPDebt Billion: $28.2 Billion $14.7 Trillion

Kuwait:

Transnational issue:

•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 $15.6 TrillionGDP Growth: 2% 2.2%Per Capita GDP: $28,000 $49.800

Investments: 19%%GDP 12.9%GDPDebt Billion:$25.2 $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 $15.6 TrillionGDP Growth: 5% 2.2%Per Capita GDP:$28,000 $49.800

Investments: 25,5%GDP 12.9%GDPDebt: $9.7 Billion $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 $15.6 TrillionGDP Growth: 6.3% 2.2%Per Capita GDP:$102,800 $49.800Highest in the world

Investments: 28%GDP 12.9%GDPDebt: $137 Billion $14.7 Trillion

Qatar:

ImportsMachinery, 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, steelPartners: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 $15.6 TrillionGDP Growth: 7.8% 2.2%Per Capita GDP:$9,100 $49.800

Investments: 47.8% GDP 12.9%GDPDebt: $770.8 Billion $14.7 Trillion

Competitive Advantage:

•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.

• Foreign Investments:GCC companies invest globally eg:

InvestcorpIn WestIn Middle East

• Attracting most of the headquarters of foreign companies in the region through tax free laws.

• 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