The benefits of doing business in the Middle East

There are enough positive signs, however small, that the Middle East will be a good place to do business post the pandemic, according to Annabel Harper

I had just finished a long project with a government entity in the Gulf.  For nearly a year, I had been coaching a large group of directors as part of a leadership development programme.  They had been delightful to work with and it had been so rewarding to see how well all of them had developed as leaders and how they were integrating their learning at work. 

As I gathered up my files ready to say my farewells and leave their office one last time, I was stopped by two of the office staff who had been involved in all the complex scheduling arrangements for the coaching sessions.  They started to ask me some questions about how things had gone, what was it really like coaching their colleagues, where was I going next, what was I doing for my summer holidays – all rather random questions which, to be honest, I thought were a bit left-field and strange.  Moments later I discovered why.  Ushering me into a large room to continue the conversation, or at least that is what I thought, I was greeted with the sound of loud applause from everyone I had been coaching.  It had all been a ruse to arrange the presentation to me of a large, beautifully iced and decorated cake as a thank you.  The bakery had been late with the delivery and they were frantically trying to delay my departure so that I did not miss their farewell. 

For me, this experience typifies the spirit of working in the culture of the Middle East. Relationships are central to doing business.  Coming from outside the region, I learned early on that if you want to do business, you absolutely have to get the relationship firmly grounded before you start.  Get that part right and people will go out of their way to help and support you.  Of course all business is about relationships.  But there is a special element of relationships in the Middle East which includes a good understanding about the importance of family, culture and food.  For instance, refreshments at business meetings are part of the agenda. They involve not only the options of tea or coffee but also sweets, dates, or chocolates.  It is not just about being welcomed to the meeting, it is also about being invited in as a friend, not a foe.

I am often asked what draws me to working in the Middle East.  The history and culture of this complex region creates a vibrant energy and the pace of change has been dramatic.  It means that doing business needs an agile and nimble mindset, and being prepared to adapt and adjust in the moment.  According to the World Economic Forum, we are currently in the Fourth Industrial Revolution and to some observers, we are about to head into the Fifth. Change is disruptive and unsettling.  Throw in a pandemic and the uncertainty, anxiety and loss of predictability has created further disruption of incredible scale. All this in a region where rapid change has already been happening. Inevitably there are clashes between traditionalism and modernism. From a business perspective, this is also creating opportunities, not least for women.

Globally, gender parity continues to be a hot topic and nations in the Middle East are part of this conversation, just as much as elsewhere.  The opportunities enabling women to contribute to the workforce vary considerably from state to state. Government initiatives for women can make a big difference.  Some are being launched quite quickly, for instance in the Kingdom of Saudi Arabia. 

The United Arab Emirates has been ahead of the curve on this for a long time, implementing women’s empowerment programmes, board quotas, and recently equal pay. Women outnumber men by a ratio of 2:1 in tertiary education and yet across the region, the MENA Paradox persists.  Coined by the World Bank in 2013, this term describes the access women have to health services and education which matches regional averages, but the imbalance that exists for women wanting access to economic and political empowerment.  In 2018, the Institute of Labour Economics found that this paradox, or MENA Puzzle, continued to be prevalent.  Cultural beliefs about the role of women and men can take a long time to change but there are two key drivers which are beginning to make a difference.

One of these drivers is the ambition of women themselves.  Highly educated by the time they start working, these women want to succeed and progress their careers to a senior level. They see no reason why professions that may have been previously closed to them should not now be available, for example aviation and engineering.   There are still wide gender gaps in labour participation though.  Closing these gaps would have a dramatic impact on GDP.                                                                          

The other driver is the growth in population.  In 2017, the United Nations were predicting that the region’s population was likely to increase by more than 25% by 2030.  Significantly, a high number of that population will be at prime working-age, i.e. 25-54.  This creates a potential source of talent which can already be tapped into now.

There is no question that the impact of Covid-19 on society, the way we do business and the way we live in our world will be long-lasting.  It is also an opportunity to make connections with emergent sectors, particularly in the Middle East.  An example of this is the sudden growth in e-commerce as a result of lockdown which has seen a rise in digital technology infrastructure, not just in locally owned companies but also through investments by global corporations.

According to the Milken Institute (2019, Bahrain and UAE were already leading the field as enablers of fintech development.  As well as digital jobs opening up, there has been an expansion of employment openings in pharmaceuticals, utilities and FMCG, particularly in the UAE (Zawya 2020). 

In spite of the new opportunities in the jobs market, the current economic climate is a long way from recovery and it is likely that new openings will be snatched up quickly. Furthermore, employers are in the strongest position and will have access to a talent pool of skilled candidates. It will be a buyer’s market for a long while.  Coupled with this, there are also governmental directives to recruit more nationals rather than ex-patriates into the majority of available vacancies in the public and private sectors.  This applies particularly in the UAE, Oman and Saudi Arabia.

Regardless of these considerations, the business people I have met and worked with in the Middle East have always been curious about how business is done in other parts of the world.  They comfortably share what works in the region, how it might be blended with new ideas and are willing to co-create a way forward that is fit for purpose, tailored specifically for the region in order to build its future prosperity. There are enough positive signs, however small, that the Middle East will be a good place to do business post the pandemic.

Annabel Harper is an Executive Leadership Coach and Facilitator with a deep interest in the development of women in leadership in the Middle East. Annabel has international experience in a variety of multi-cultural global organisations. Client sectors include FMCG, financial and professional services, pharma, broadcasting, government entities and business schools. Annabel also has an MA in Middle Eastern Studies from King’s College, London. Previously, Annabel was a journalist at ITN, Channel Four News and the BBC in the UK. For more information visit www.changeconnections.com

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