Entrepreneurs from across the North West have been urged to consider sparking trade connections with the Middle East, a thriving region for business that boasts two striking parallels with this part of England - resilience and football.
The Middle East's Gulf Cooperation Council is an area containing 54m people where 海角视频 exports are already in excess of £31bn. And it's fast becoming a region of the world that British entrepreneurs cannot ignore, particularly Qatar and the United Arab Emirates (UAE).
On Tuesday, leaders from around the North West attended a virtual panel session entitled ‘Doing Business in the Middle East’ - attended by some of the region’s top trade experts to explore the opportunities available as the world adapts to a new way of working.
Put on by BusinessLive in partnership with the Department for International Trade (DIT), delegates learnt about the different routes to market, crucial cultural differences, opportunities in sectors including oil and gas, education and food and drink, and the impact of the pandemic.
Missed the event? You can watch it back .
Hosted by BusinessLive editor Alistair Houghton, it was the second in a series of events following last week’s Doing Business in Africa event, in which delegates were given advice and tips on how to spark trade with the continent that in 2050 will be home to one in four global consumers.
‘Huge opportunities throughout many sectors’
With the Middle East containing so much of the world’s natural gas reserves, it is often rightly associated with the oil and gas sectors.
Nick Cochrane-Dyet MBE, chairman of the British Business Group in Abu Dhabi and founding member of the UAE-海角视频 Business Council, was first to speak at Tuesday’s panel.
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He said: “Hydrocarbon is a bit of a dirty word - everybody's turning to clean energy and all the rest of it.
“But there's still an awful lot of hydrocarbons to be developed in this part of the world, and the world is not going to stop using oil and gas for the few decades.
“So those sectors are and will be there - they spend billions and billions just keeping up the amount of production because obviously using some of what they produce, they need to find more to replace what they've sold, and so just keeping the oil and gas sector going is always an opportunity for 海角视频 companies.
“In Abu Dhabi, there are 400 or 500 billion dirhams [around £80bn] worth of opportunities over the next five years. It's huge, huge numbers.
“And for the Emiratis, they're aware that there are opportunities in the 海角视频 - so it's bilateral. We do want trade to go in both ways. One way traffic is not always very healthy for business.”
But delegates to Tuesday’s event were also told that it’s not all just oil and gas in the Middle East.
Sandra Thornber is international trade advisor at the DIT, and she said: “Even in terms of staying with the energy side of business, there are huge solar farms In the UAE, there are nuclear power stations in the UAE.
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“There's the food and drink sector, there's the healthcare sector, infrastructure - these countries throughout the Gulf are continuing to develop.
“And because the populations are fairly small compared to other countries, there's a lot of expertise that needs to be brought in, so there are huge opportunities throughout many sectors.”
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Mr Cochrane-Dyet said one of the key opportunities available in the UAE is education - a sector he said is there for British firms to exploit.
“The Emiratis understand the importance of education. Interestingly enough, about two-thirds of Dubai's education sector, private education is actually under the 海角视频 English curriculum.
“So we've got several hundred thousand youngsters learning in Dubai using the English curriculum - so a great area of interest and again, that always has been and always will be important.”
Alongside further exploitable gaps for 海角视频 entrepreneurs in markets from fintech to food and drink production, he said perhaps the most crucial word of all was ‘innovation’.
“Areas that interest the Emiratis are innovation - it doesn't matter whether it's innovation in healthcare, innovation in whatever sector - oil and gas, renewables, anything that's got innovation, they're interested in it.
“One of the greatest demands is for upgrading and skills upgrading of the local indigenous population.
“There’s huge necessity there - very few of them want to do really ambitious infrastructure plans, and they know that today, they can do these things with fewer people using robotics, AI and the rest of it. But they do need to continuously upgrade skills, and 海角视频 education is highly respected.
“The retraining and rescaling of the local indigenous population is an area that the 海角视频 can really take to its full advantage.”
So where do I start?
The panel was asked how North West businesses should even go about initiating trade with this part of the world.
Ms Thornber said it was vital to make initial contact with your local DIT trade team - which will help conduct research and work collaboratively to devise and implement export strategies, before identifying potential business partners.
She said: “In the Gulf in particular, it’s important to do your research into the culture.
Emiratis, Qataris are educated in the 海角视频, they come and study here at our universities. So there is a real fantastic relationship there.
“And they do remember the Brits when they go back home.
“But we do have different cultures, and it's about getting to know your Emirati partner, or your Emirati customer, and be prepared to set aside time for that social interaction.
“You may be sitting and drinking numerous cups of coffee for two hours before you even start to talk about business, so factor that time into your day and don't try and cram too much into your day.”
Crucial cultural differences
Ms Thornber said one of the biggest criticisms made about British entrepreneurs in the Middle East is that “we’re always in a hurry and very time driven”.
She explained: “In the 海角视频, we expect a meeting to start at a certain time, and to end at a certain time, and very little time is spent on just chit chat.
“We are very much in a hurry to do everything, and I think that it just doesn't work in Gulf markets. It's just a completely different cultural attitude.
“I think people want to get to know you as a person, they want to know about your family, they want to know about your interests, your hobbies, they will want to talk football - that's what you should expect.”
Mr Cochrane-Dyet said he saw the 海角视频 and UAE as being “both pretty culturally aligned” in terms of tolerances - but that there were certain important aspects to be aware of.
He said: “The human behaviours are pretty similar, but of course, it is right, and it is good to spend some time to understand cultural differences, and small things.”
He said that included knowing about particular days of national importance - or that the weekend in Dubai is Friday and Saturday, with the former being the all-important holy day, similar to Sunday in the 海角视频.
“People here respect people in the 海角视频, and likewise,” he added.
When it comes to actually doing the business and building relationships, Mr Cochrane-Dyet suggested the three P’s - patience, persistence and profitability.
“The first one is patience - things can take a while to get done here.
“I'm sure my Emirati friends tell me it's exactly the same trying to get cheque books or bank accounts set up in the 海角视频.
“So some of these bureaucratic things, they just take the time and you need patience to go about doing them.
“The second P is persistence - there are actually very few Emiratis available to do business with. A lot of them, a majority of them, are connected to the government so they are careful and considerate about what they can and can't do, being a member of the government or working in the government.
“So you may need to chase them up a little bit, you need to keep being persistent, keep on going on. But again, I hear that they have the same things in the 海角视频 about people always busy - so persistence probably worked both ways.”
“The last P I would suggest is profitability. There is nothing like motivating an Emirati, and I'm sure it's the same in the 海角视频 - showing them the profitability of your business.
“If you focus on those P's, I think it’s going to help you get into the business more successfully.”
The final panelist at the virtual event was Qatar-based Emad Turkman MBE, Group CEO of distribution firm Rumaillah Group.
Mr Turkman, who is also chairman of the Qatar British Business Forum, said: “Qataris are like all Gulf Arabs - they don't like what I call ‘suitcase or briefcase salesman or diplomacy’.
“They like to see you, they like to get to know you, they like to see you in the supermarket, they like to see you in their businesses, in their houses, at their weddings.
“Once they get to know you that's it, you're their friends. As long as you are honest and you don't do the dirty trick on them, they will be your friends forever.”
So how to best go about picking your trade partner?
Mr Turkman said it was important to take advice from the British Embassy, DIT and other familiar organisations, as well as being aware of the country’s rules and regulations.
He said: “I always say that going into business with other people is like a marriage. You have to choose your partner very well - this is coming from somebody who's been divorced twice.”
He added: “So choosing the right partner is the best thing to do, and how you do that is by talking to people in business groups, talking to the embassy and talking to old timers who will give you the advice.”
Ms Thornber added: “[You need to do] your research, and make sure that that partner is the best fit for you.
“Because as well as them having the right connections and being able to open doors for you, you've also got to like that person, you've got to get on with that person, and just make sure that it's the right fit for your business.
“Working with the British business groups and working with the local chambers of commerce and our teams based throughout the Gulf, we can certainly help you to identify that right person for you, and make sure it's the right route to market for you.”
Football: an intrinsic link
While there are undoubted cultural differences, the Middle East and the North West most definitely have football in common.
Qatar is set to host the World Cup in 2022, UAE deputy prime minister Sheikh Mansour is the owner of Manchester City, and the Cityzens, along with their city rivals United and Liverpool, all have massive followings in the region.
There was broad agreement between the panel that these football connections inevitably allow for stronger business links.
Mr Cochrane-Dyet said: “They've invested in Manchester City Football Club, and it's a wonderful place, I've been to the Etihad Stadium, it’s beautiful.
“But they weren't thinking about just investing in a football stadium. They were thinking about investing in Manchester, period.
“It wasn't just football - Manchester is innovative, it's [forward] thinking, it's progressive, and it's going to help a country with a small population and big aspirations.”
Mr Turkman touched on the World Cup - set to take place in Qatar in November 2022, and the opportunities for businesses.
“Although the World Cup revolves around football, actually it has enormous opportunities for construction companies, for fintech companies, for security companies, for crowd control, IT companies - you name it. The hospitality sector too - 1.5m people are expected to come to Qatar. They need places to stay, somewhere to eat and sleep.
“So all that literally is like a Pandora's box in a way - once you open it, there's no limit.
“So for anybody who wants to come into Qatar, there are many opportunities and even with the pandemic, the target is there: the World Cup is going to happen in November 2022.
“The whole country is gearing up for that , which is opening a lot of opportunities, a lot of doors that will be open for that.
“Admittedly, some of the project contracts were awarded a long time ago, but there are still opportunities if people want to come.”
Qatar - a land of opportunity
Mr Turkman said there are “many reasons” as to why Qatar is “excellent for business”.
He described the country’s ambitious ‘National Vision’ for 2030, which includes plans for economic, social and environmental development, adding that this would provide “enormous opportunities for 海角视频 companies”.
He said: “It's a small country with an overall population of 2.7m, but only 300,000 of them are Qataris.
“It's got the highest GDP in the world and the third largest gas reserves in the world, and
by 2023, Qatar's gas exports will be 13m barrels a day.
“[For perspective], Saudi Arabia's production today is about 12m barrels a day, so you can imagine the enormous wealth these energy exports are going to bring into the country. That itself will open amazing opportunities to everybody in the world to come over and invest in this country.”
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Extolling the virtues of Qatar, he praised the country’s good education system, “easy working environment”, pro-British attitude, and safety.
He said: “I never lock my front door. I remember [when I lived] in Manchester I used to double lock it and put the cameras on. Manchester is safe, but this is the way it happens in that part of the world.
“Here, I drive a Range Rover, I leave the key inside, I don't lock the door. I'm not exaggerating. I really do that. Where one else in the world could you do that?”
While previous Governments “didn’t take Qatar seriously”, Mr Turkman said there has now been a significant change.
“I'm really glad in the last few years, we have seen amazing interest in the country to the extent that British Embassy in Doha's commercial section now has about 18 people working there, whereas previously there had been only one person - that just shows the interest of the government into this country.”
On how to survive living in Qatar, he said: “You have to have a sense of humour, and huge patience, other than that, this will be your own country for yourself.”
Covid’s effect on the Middle East
It’s not an exaggeration to say that the coronavirus has devastated economies across Europe - not least the 海角视频’s.
But according to panellists, while the pandemic took its toll on Middle Eastern countries, its impact does not seem to have been as severe as it was for its western counterparts.
While certain industries have no doubt suffered, the region has been able to quickly stabilise - and show its resilience - a word often associated with communities and businesses around the North West.
For Qatar in particular, Mr Turkman said the effect had been “very mild”.
He explained: “It’s simply because Qatar is a peninsula - and the only land border is with Saudi Arabia, but that's been blocked for three years now.
“So it was very easy for the authorities to control who's coming into the country. The health sector in Qatar is very, very progressive and very modern. They have amazing facilities.”
He said at present, there are around 200 new cases reported a day.
“I think for the last two months now, more people are recovering from the virus than are actually being infected.
“So I think the tide is turning Qatar, really the authorities are winning the battle against the virus.”
He said the pandemic has had an effect on business, but it had been mitigated by the Government stepping in to offer financial help.
He added: “Of course, with important countries being closed, we don't get visitors from overseas. In my organisation, we have partnerships with 64 international companies, so usually each month, we would have about four, five, even 10 business visitors - but all that stopped.
“Of course the modern technology, with teams and zoom and Skype and this sort of thing did help.”
But “old fashioned guy” Mr Turkman said he expects things to return back to normal sooner rather than later.
“I strongly believe in face to face meetings and getting to know people and having endless cups of tea and coffee. We're very optimistic, I think within the first quarter of next year we believe everything will be back to normal.”
Mr Cochrane-Dyet said the region had been hit by the “double whammy” of the disease itself, and oil prices dropping around the world.
He said: “It hit the UAE quite severely, but it's a resilient country - this country's been through far worse, believe it or not.
“Times have been pretty tough in the past. Before the federation was formed [over 50 years ago], people didn't have access to water and electricity.
“Today, [despite Covid], we still have water and electricity flowing quite freely, we've got hospitals coping with it in a very sophisticated manner.
“So yes, it was certainly impacted, but they were on the case very quickly - locking down quite seriously in March, and have been keeping their finger on the pulse ever since.
“Dubai's economy obviously got impacted quite seriously, but it is jumping back.
“It has had so many knocks over the decades - they fall over, they get up, they dust off their dish dash and they say, okay, that's it, let's start again.
“And that resilience is showing as strong as ever, right now.
“The airline industry - Emirates and Etihad, both got impacted severely, but it'll come back, it'll take time.
“They're doing it properly, they want to build back better.”
A forward-thinking collaboration
Mr Cochrane-Dyet said the collaboration between the 海角视频 and UAE government is now stronger than ever, despite the pandemic.
He said: “They talk regularly, it's just through webcams, but it hasn't stopped any of that.
“In fact, I would say that the relationship between the two countries has grown stronger as a result, and people are working together.
“I would say that the strength of the relationship between the two countries is stronger now than it's been for a long, long time - and not by accident, by people doing a lot of hard work from both sides.”
Some entrepreneurs may wonder if language may be an issue, with Arabic being the official language of the UAE and Qatar.
The general opinion of the panel was that while it’s beneficial to learn short phrases such as ‘As-salamu alaykum’ - a greeting meaning ‘peace be with you’ - learning Arabic is not essential for most.
Mr Cochrane-Dyet said: “I would encourage a little bit of time spent being culturally sensitive, and learning a language is being culturally sensitive to me.
“You won't need it for your work, but you'll need a little for the relationship building - just to be able to say a few niceties. It's respectful, I think.”
Mr Turkman urged potential entrepreneurs to study the history of the country too - and in the case of Qatar, learn a little about each of the prominent families.
He said: “Having a local knowledge, having a little history of the country, amazingly opens a lot of doors when you go to talk to some senior companies because they love to talk about their country.
“They think of all of us coming from the west - that we're a little bit ignorant about what happened in this country.
“I really feel if you are serious about doing business in this country, have a look and get yourself familiar with the history. It will help you choose the right partner because you will know which family name is more important and which tribe is more influential than the other tribe.
“This may seem trivial, but believe me it is very important.”
The third and final event in the series - Doing Business in the USA - will take place virtually at 1.30pm on December 3.
It will again be run by BusinessLive, this time in conjunction with the British American Business Council and DIT.
Speakers will include:
Karen Holden, International Trade Advisor
Roger Frampton from Export Action USA to cover routes to market and current market conditions,
Jonathan Strassberg, truecourselaw to comment on the legal implications
Emanuel Adam, British American Business, to talk about 海角视频-US trade agreements and the political climate.
To register, click .