Interested in Cultural Competence for doing business in the Middle East? Gdt have put together a blog post on just that.

Cultural diversity covers respect for another person’s different religion, gender, way of life and more. When doing business in the Middle East, where English is not the primary language, understanding the cultural differences and behaving accordingly is vital – it could mean the failure or success of your business.
Unlike the Western world, where business culture demands that everything is written down in black and white, in the Middle East, there are times when verbal agreements are considered sufficient. This is because the foundation of doing business in the Middle East is honour. Your word is your honour – so don’t promise anything that you cannot supply.

The other key aspect of doing business in the region is the importance of personal and family relationships. In particular, the Middle Eastern culture emphasises respect towards senior people or elders and so, expect to find elders and other family members working in the company or participating in business negotiations.
Your social relationship is very important with your business partners. Don’t expect a business deal to be confirmed overnight. Practice patience and work on building a trusting, friendly relationship with mutual respect for each other. Don’t close a deal too soon – remember that Middle Easterners can drive a hard bargain and are good traders so negotiate as much as you can.

In the Middle East, Islam is considered the primary religion. The five pillars of Islam which cover Shahadah or belief, Salat or five time daily prayers, Hajj or pilgrimage to Mecca, Zakat or charity to the needy and poor and Sawm or fasting during the Ramadan month are commonly practiced here. Also, Friday is the designated day for long male congregational prayers. So work on arranging meetings that don’t cover these times. Since Islam prohibits eating pork and drinking liquor, don’t present any products containing these items as gifts to your business partners.

Greet your partner by saying “As-salāmu ʿalaykum” which means “peace be upon you.” In return, your partner may say “Waʿalaykumu s-salām”, which means “and upon you too.” If your business partner is a woman, don’t shake her hand first. If she offers her hand, only then should you do so. Also, try not to make any kind of eye contact with her. Whether you’re a man or woman, consider dressing conservatively in a dignified manner when meeting your prospective business partners. A male business partner normally shakes your hand – offer your right hand. Also, he may end up holding it while walking with you – don’t misunderstand such an action, which is common here. During meetings, don’t point your footwear towards your business partners – it is considered rude. Also, accept whatever drink, tea or coffee, that is offered as part of Middle Eastern hospitality. When it comes to passing documents or other things to your business partners, always use your right hand.

For more information about exporting and doing business to the Middle East please call us +97143206673 or email: info@gdtme.com

Considering all the political unrest and economic instability in the Middle East and North Africa region, you may think twice about wanting to invest in any of the MENA countries at this time. But it is worth considering the great potential these markets can offer: a rapidly growing population which is predicted to reach around 398 million in 2050, a youthful market with over half of the population less than 25 years old and a solid base for oil and gas resources.

Unlike the Middle East of decades ago, the trend these days is towards liberalisation, with more and more Middle Easterners using mobile gadgets and accessing social networking sites like YouTube and Facebook. Instead of merely focusing on oil and gas as their key source of income, MENA countries, including the oil-rich GCC nations, are working towards diversifying their interests to counter the issue of fluctuating oil and gas prices. Health, renewable energy and tourism are some of the ventures that are being emphasised.

Rather than taking a pessimistic view of doing business in the Middle East, consider tapping into the considerable opportunities that the MENA region offers. However, be mindful that the MENA region can also pose various risks. Corruption, an unpredictable tax climate and currency exchange risks are just some of them. The key is not to simply venture into any market but to spend some time and energy studying the individual markets beforehand. Do a thorough risk analysis with the help of a local export management company, such as GDT, or a professional risk management company with local links.  In this way, you will be armed with the necessary information about political unrest, economic instability and other key matters that could potentially impact your business.

Consider also, that while the Western world focuses on dignity culture, the Middle Eastern culture is based on honour culture, which in turn is founded on personal reputation.   You will need to invest considerable time and energy to build a good relationship with your Middle East business partner to gain trust.  This also requires time and understanding of the local culture and traditions, which is where GDT can help.

GDT are regional Sales and Marketing specialists, established in Dubai in 1982, and operating throughout the Gulf Cooperation Council countries as well as the greater Middle East. Today, we are successfully managing businesses for our clients in the UAE, the Kingdom of Saudi Arabia, Qatar, Oman, Kuwait, Bahrain, Jordan, Lebanon, Pakistan, and elsewhere.

As a leading provider of outsourced sales and marketing services in the Middle East, we specialize in planning, building and managing sales channels which will deliver profitable revenue streams for our clients now and for the future.  We provide brand owners with a unique and cost effective solution, which enables them to enter markets in the Middle East without the costs, risks and delays associated with opening foreign offices directly themselves.

Some businessmen assume that the Middle East is politically unstable and refrain from doing business there. Only specific countries like Yemen and Libya are politically unstable. United Arab Emirates or UAE is politically stable; numerous UK-based companies have invested their money here especially in Dubai.

Since Middle East has its own customs and cultures that differ from the West and other places, it only seems wise to know beforehand certain things before doing business there. Here are some country specific tips for performing business in the Middle East:

Honour and trust business culture

According to researchers from the Kellogg School of Management, the Western business culture relies on dignity culture, which is set apart from social interactions. Westerners tend to take a business negotiation or dealing as an issue to be resolved and adopt an open, trusting and information sharing approach.

Middle Eastern business culture relies on honour and trust culture, which is inclusive of social interactions. Middle Easterners take a business dealing more personally, considering it as competition against other businessmen. Also, they only extend their trust and share more information after building a relationship with their respective business partners, which comes about after many business meetings. For example, Emiratis may ask you similar questions many times to gauge the consistency of your replies for determining whether you’re telling the truth.

While Westerners adopt a more neutral approach, Middle Easterners may resort to emotional tactics like sympathy and frustration to gain the upper hand in the negotiation. For a business meeting venue with Middle Easterners, consider selecting a crowded souk where there are many social interactions.

Business etiquette

Everyday values and life revolve around Middle East’s main religion, Islam. So don’t arrange a meeting with a Middle Easterner on a Friday, during any of the daily five prayer times or Ramadan month. Also, Middle Easterners are particular about respect especially when it comes to elderly people. Middle Eastern men normally shake hands with other men during an introduction. They may even hold hands while walking – the tip is not to pull your hand away, showing disrespect.

Business dealings

If you’re looking for a base, Dubai, which is the Middle East’s commercial capital, is the answer. But remember if you’re a non-GCC national, your ownership of whatever company you open in UAE would be limited to 49 percent – 51 percent must be owned by a GCC national. Opening a bank account in the Middle East can be time-consuming and costly due to expenses pertaining to the bank’s anti-laundering regulations. Wire transfer, PayPal and Western Union are some great ways to bypass the bank and get money for the goods that you export from or import into Middle East.

For more information about exporting to the Middle East, or how we can help your business, please call us on +97143206673 or email us: info@gdtme.com

How to Effectively Sell Your Products Overseas.

Considering the booming m-commerce and e-commerce industries, establishing your company’s website for selling your products overseas is wise. Two highly potential markets where there are huge investment opportunities are GCC and Middle East, which has over 360 million people. By 2020, around 40 percent of e-commerce growth is expected in GCC, according to Frost & Sullivan’s Sarwant Singh. Some of the possible setbacks when it comes to trading overseas are currency fluctuations, packaging differences and transportation or logistics issues.

Ways to effectively sell your products overseas.

To overcome the issue of currency fluctuations, discuss with your foreign exchange bureau or bank and set the rate for exchanging the currency when the times comes – it’s akin to a forward contract. Also, set acceptable payment terms, timeline for delivery, packaging and manufacturing processes and quote’s validity clause – doing these things ensures that you don’t mess up your pricing and lose your nett profit.

You may have to pay import duties, export duties and local taxes when you export your products overseas. If you decide to export your products to a non-English speaking country, consider translating the language of the product instructions, labelling and packaging from English into the local language. It’s a great way to promote your products and gain the potential of more local sales.

Another key aspect to consider is product packaging colours. For example, in the Middle East, blue and green are favoured colours while red is considered evil. So choose the colours wisely to win over more customers for your business.

Another key aspect about exporting overseas is logistics. If you decide to use international shipping services like DHL and UPS for your m-commerce or e-commerce business, remember to fill in the appropriate customs declaration form. If the delivery route to your customer’s place is very difficult, you may end up paying a lot for transportation or logistics, which may mean no nett profit or even loss. So think twice before committing to any customer order.

If your company is located in the UK, consider adding the tag or label, “Made in the UK” – many people in various parts of the world think high quality is synonymous with UK. When you set the price for your product’s overseas sale, you need consider aspects like duties, extra packaging expenses and other aforementioned items.
Resources and assistance for your export activities

For resources pertaining to effectively selling your products overseas, refer to Department for International Trade (previously called UK Trade & Investment) if your company is based in the UK. Those in the US can refer to U.S. Department of Commerce. To make life a lot easier, you can get help from a company like us here at Gdt which have over 30 years of expertise in importing and exporting activities especially in the Middle East and GCC. Gdt handles the core marketing and sales functions that a company’s export department normally does.

For more information about exporting or doing business in the Middle East or how we can help please call us +97143206673 or email: info@gdtme.com

Thinking of doing business in the Middle East? Here at Gdtme have put together 10 tips for doing so. Unlike the fast-paced, heavy handed business norms of the west and Europe, doing business in the Middle East requires adapting to cultural, religious and traditional ways of doing business.

1. Time isn’t always money
In the west and Europe time is always money. In the Middle East, business is focused on status. Large business owners may feel that the privilege of working with them should be compensated by you! Be prepared to be flexible.

2. Meet face to face
Meet potential business partners in person. This should be the gold standard. Try to avoid meetings with staff on the lower rungs of the business ladder. Don’t rely on email or telephonic contact.

3. Don’t focus on turnaround times
In the Middle East scheduling is flexible. Lunchtime meetings can be changed to dinners out so be willing to adjust to scheduling changes.

4.Ideas? Be ready to change them
Be ready to change your original ideas. The Arab world is creative and readily embraces concepts and outcomes that are alien to other regions of the globe. Keep an open mind even if they’re suggesting a snow resort in the desert!

5. Do ‘business’ later

Often a formal proposal is worked out long after the initial verbal agreement. Be willing to adjust to their unique time frame. Be prepared to be patient.

6. Avoid stereotyping your potential partners

Despite our best efforts, we often hold ideas about people in the Middle East. Be aware that your potential partners are as smart as you are.

7. VIP’s don’t do details
Once a deal is made, be prepared to deal with underlings. Don’t expect the VIP to meet with you to discuss the contract.

8. Take charge of follow ups

Sometimes deals with Middle Eastern partners may be made and are then followed by non-action. This doesn’t mean they’ve reneged on the deal, just that it’s probably far less important to them than it is to you.

9. Take note of holy days!

In Islamic countries Friday is the holy day. This means that in these regions the weekend is Friday and Saturday. Eid al-Fitr (preceded by a month of fasting) and Eid al-Adha are two important religious celebrations that can last for 3 days or longer. The Ramadan fast is a time of shortened working hours so avoid doing business at this time.

10. Etiquette in the Middle East

Learning a few greetings in Arabic is a great way to make a good first impression and creates the sense that you are interested in getting to know a different culture. It also creates a sense of respect for their traditions. You may also choose to learn the traditional Islamic handshake.

If you require anymore information on this topic, we are happy to help – Contact us at: info@gdtme.com or visit our website, Gdtme. 

From Local to Global How to Take Your Business to The Next Level.

Expanding your business overseas entails certain risks, but it can also reap great rewards. With global online retail sales alone up 17% annually, the potential for growth is huge. And it’s not just about the bottom line. Exploring new markets can keep your company fresh, help you to innovate, cushion you against downturns in the market at home and improve efficiency and productivity. Here are some helpful tips for turning your company into a global brand.

Research potential markets.

If you want to sell products and services abroad, it’s important to do your homework on potential foreign territories. When deciding which countries to target, you need to know whether there’s a demand for your product, and if you’ll have any competitors. How does the country’s internal market operate? Are there trends than you can turn to your advantage? Digging deeper, it also pays to become conversant with the local culture, customs and values. As well as helping to prevent any social faux pas, this can also provide valuable insights into how to frame your products for local consumers.

Get networking.

Once you’ve settled on a potential foreign market, spend some time there visiting trade fairs and business events where you’ll have a chance to meet potential customers, distributors and agents. Be methodical about it: scan guest lists for people who might be of importance to you and make a point of introducing yourself. Don’t underestimate the value of networking. Friends on the ground can give you an insider’s point of view of new markets and help you to refine your sales strategy.

Sort out your finances.

To successfully expand your business abroad, you must also ensure that you have adequate capital for your venture. If you need to raise funds from investors or banks, then you will want to show them a sound business plan explaining how you intend to scale up your business and build a lasting customer base. When doing your sums, remember to include all the additional costs you are likely to incur due to factors such as transport, storage, manpower and government red tape.

Start small.

It can be a mistake to rush in, blanketing several counties at once with a “one size fits all” marketing strategy. The wiser option is to begin with one or two markets, then expand slowly but surely. Trade fairs are a good starting point; it can also be helpful to create a presence on social media and existing e-market platforms, and thus ease your way into the consciousness of overseas buyers.

Insure against non-payment.

One of the hazards of trading overseas is the danger of non-payment. Dealing with this issue can be unpleasant enough at the best of times, and long distances can aggravate the situation. That is why it is important to evaluate the creditworthiness of potential customers before committing yourself. You can also guard yourself against non-payment with various safeguards such as credit insurance cover and Letters of Credit.

If you need anymore information, you can contact us on: info@gdtme.com or visit the website GDTME.com we are happy to help.

The Syrian crisis rages on unabated. The Arab Spring continues to cause unrest across the Middle East, from Lebanon to Oman. And yet British firms are successfully exporting to the region, overcoming political and cultural barriers to tap into a lucrative and fast-growing market.

The Middle East is open for business

Michael Oliver is the founder of Oliver’s Valves, a 35-year old British manufacturing company that specialises in making valves for the oil industry. The Middle East is one of his biggest export markets, accounting for 20pc of the company’s £90m revenue. “Next year, contracts in the Middle East will make up a quarter of the business,” he said.

Mr Oliver has spent more than a decade building up relationships across the region. His company is the official supplier of valves to Saudi Aramco, one of the biggest oil corporations in the world and has negotiated multi-million pound contracts with the gas gathering plants in Oman.

“I got on airplanes and I tramped the boards to win the business,” he said. “Made is Britain is hugely respected in the Middle East. There’s a high regard for our workmanship. That opened a lot of doors.”

Mr Oliver now has an office in Dubai to service the firm’s clients in the region. “It’s vitally important for any exporter to have boots on the ground with their own people in the Middle East,” he said. “You must also be be in the same time zone as your customers. You cannot sell by remote control.”

Despite all the headlines warning of ongoing strife across the Middle East, Mr Oliver has experienced “no problems” doing business over there. “But Syria is a negligible market for me,” he admitted. “In Dubai, the UAE, Oman and Saudi Arabia, the climate for doing business is stable. I’m not forecasting problems for the business, even if the situation does get worse.”

A technological revolution.

Internet usage across the Middle East is up 2,639pc over the past decade compared with 393pc in Europe, according to Nielson’s latest Internet Usage and World Population Statistics. Saudi Arabia has now become the world’s largest consumer of videos on YouTube, with 40pc of the population visiting the site every day and 70pc accessing YouTube at least once a week. Mobile phone ownership across the Middle East is also 19pc higher than the world average.

“There has been massive online growth in the Middle East, which has created incredible business opportunities,” says Rasha Khouri, founder of luxury goods e-commerce company DIA-style.com.

Ms Khouri launched the online shop in September 2012. The site acts as a middleman for big luxury brands like Harrods, Net-A-Porter and US fashion giant Shopbop to sell their wares to the Arab States. The site translates all product information into Arabic and features lifestyle articles and fashion content tailored to the site’s customer base. It takes a small percentage of every transaction and operates a VIP service which costs between $100 to $300 a year (£64 to £192).

“When I first launched the website, it was in English,” said Ms Khouri. “But traffic and user engagement is much stronger, more active and loyal since switching to Arabic.” Indeed, Google announced in December 2012 that Arabic was set to be the fourth most important language on the web by 2015, after English, Chinese and Spanish. “If you’re selling online in the Middle East, it’s really important to have an Arabic website,” she said.

But it’s not always easy being a pioneer in a new market. DIA-style.com has run into some challenges along the way. “The biggest issue for us is that customers are afraid to put their credit card details online,” explained Ms Khouri. “In the Middle East today, about 75pc of purchases are still done cash on delivery.”

Ms Khouri has made some unorthodox business decisions to cater to this new market. “One customer didn’t know how to put her card details into the website,” she said, “So she took pictures of her card, front and back, and texted them to us so we could make the transaction for her. Can you imagine that happening in Europe?”

The entrepreneur’s flexible approach to doing business in the region has paid off and traffic to the website has been growing 50pc every quarter since inception with an average basket size of £375.

Barriers to growth.

The Middle East may be brimming with opportunities for canny British firms but some entrepreneurs feel that the UK Government is not doing enough to help them access this export market.

Neil Purssey is an inventor and founder of Fireco, which manufactures fire safety products. “We make wire free alarms and sensors that can be attached to doors so that they automatically open at the sound of a fire alarm,” he explained. Two years ago, Fireco was invited to tender for a series of contracts in Kurdistan – a pipeline of work which is now worth $8.5m.

But the road to exporting success has not been smooth. “Government makes it impossible for Iraqi Kurds to come to the UK,” said Mr Purssey. “While I endorse and abide by the Bribery and Corruption Act, one of the few sales aids we can legally provide are visits to our businesses in the UK.

“A 73-year-old Kurdish engineer and his wife were recently refused a visa,” he continued. “Everyone is a Daily Mail reader these days and thinks that any visitor from Iraq will refuse to leave. What’s most bizarre is that this man’s uncle was a Brigadier in the British Army in Kurdistan in 1958.”

Mr Purssey is currently lobbying government to adopt a bond scheme whereby companies can sponsor visitors from outside the UK. “If they abscond, the company will pay £1,000 a day to a maximum of £50,000,” he explained. “This would ensure that they do not overstay their visa, and could guarantee a huge contribution to the social service pot if it was to happen.”

Mr Purssey’s criticisms are echoed by Oliver’s Valves’ Mr Oliver. “The big disappointment for me is the Government’s export ban on Iran,” he said. “We have been told that we are not to do business in the country because of political reasons. This is a great pity for me. Iran is the greatest player in oil in the world and needs our valves. We could generate a lot more jobs here in the UK by exporting there.”

For information about exporting to the Middle East, or how we can help your business, please call us on +97143206673 or email us: info@gdtme.com

Expand Your Business Overseas with an Export Management Company.

In what is becoming an increasingly globalised world, the ability to sell products overseas is highly desirable goal for many businesses looking to expand their business.

Creating a presence in international retail markets is a vital growth strategy, yet many fail to understand the potential methods available for making this ‘dream’ a reality. This post aims to explain the benefits of choosing an Export Management Company as a way to venture into global markets and the processes such a company follows.

Why Export Overseas?

There are many reasons why you may wish to export your products to foreign markets, the main reason being the opportunity to access a much larger customer group. However, exporting internationally can also be beneficial for helping a business to spread risk should a local market experience recession spurring a fall in consumer confidence falls and a decrease in purchases.

Ways to Sell Your Products Abroad.

Many businesses can see the amazing opportunities venturing into international markets provides however the majority are overwhelmed with the perceived challenges and many complicated areas which must be overcome in order to make the process a success.

If you are only used to operating within your local supply chain, then you may lack the relative knowledge needed to operate in a different one. In order to export to overseas markets as efficiently as possible you will want to be prepared for all areas of exporting including understanding local customs and adjusting branding and marketing communications accordingly; as well as navigating language barriers, fees and international tariffs, among a whole host of other hurdles.

Why Choose an Export Management Company?

If you feel that opening your own operations in a foreign market is unachievable then an Export Management Company can provide an alternative which can simplify the process.

Export Managers help businesses to overcome the challenges they may face on their own by providing a logistic link in the international supply chain between producers in one country and channels to sell in another. They will be able to tap into an existing network of businesses and wholesalers which can help speed up the process of getting products on foreign shelves.
Through their knowledge of the market and the area Export Management Companies are able to help pass your products on in an efficient and cost effective way and develop the most effective way to link the supply chains of a business in the UK or other country and their potential partner(s) in the MENA region.

After discussion with your business, its process and goals, and once all requirements and barriers have been outlined and assessed, an export manager can begin the process of marrying up supplier to potential distributers in the region.

What Process Does an EMC Follow?

An Export Management Company will follow a number of processes to manage the flow of your product to the supplier. They are responsible for setting up the systems and processes needed to manage the flow of a product from your business to their local supplier/distributor.

Such tasks include of an EMC include:

• Collection of goods
• Consolidation and Interpretation of supplier documentation
• Preparation of documents and certificates for shipment
• Completion of customs export procedure
• Shipment of goods
• Delivery to partner distribution centres.

A good Export Management Company will ensure that you are informed about the progress of your products and about any potential issues and ways in which they can be resolved.

Why Export to the Middle East?

Every year there are new reforms in the MENA area which make it easier to do business in the region. The UAE and Morocco continue to lead in improving regulations business regulations, for example last year Morocco made it more straightforward to start a business as a declaration of business no longer needs to be filed.

This loosening of barriers and growth in the region has made it a popular choice for those looking to sell their products abroad. In particular, the UAE has been a popular choice due to the diverse and continually expanding economy and in the fact that English is widely spoken.

GDT: Export Management Company for the MENA Region

GDT are an Export Management Company established in 1982 and based in Dubai. Our primary area of operations are the GCC countries. However, for many brands, we handle the entire Middle East region along with some countries in the Mediterranean such as Cyprus, Greece, Turkey and Malta.

For more information about exporting to the Middle East, or how we can help your business, please call us on +97143206673 or email us: info@gdtme.com