The Middle East is located in a strategic global position where it opens up to many dynamic trade and investment opportunities. Unlike other parts of the world, the gulf region is mainly dominated by one race, one language and one religion, the Arabs, Arabic and Islam. The region is known for the world’s largest oil and natural gas reserves (79.4% of the world’s proven oil reserves), still governments are attempting to reduce their economic dependency on oil revenues and exploring policies intended to attract foreign investment.
The middle east was no different than Brazil, India, or China two decades ago, But it has quickly become more complicated, different and even threatening as the Islam and Arab culture are often intertwined. The Islamic religion is the primary factor to society and their business, controlling every side of the market. Although Islam is the core of their culture, they prefer businesses to draw a line between religion and business. Advertising with overtly religious tones works very rarely.
The World Bank report last year made a special mention of development across the GCC in business reforms (improving the region’s average ease of doing business score by 2.9 points) and the role of UAE as an inspiration for its neighbourhood. Another factor that gives rise to a demand for foreign investments has been the steady population growth in the region. 35 % of the population is below the age of fifteen, and the creation of jobs in the private sector has consistently expanded the labour force.
The GCC comprises six member states namely, Saudi Arabia, Kuwait, Bahrain, Qatar, Oman and the United Arab Emirates. Qatar, one of the top 20 global improvers in doing business 2020. Since its inception in the early 1980s, the GCC has taken significant steps toward economic integration, the convergence of rules governing investment, trade, labour, and external tariffs, and establishment of a financial union.
Commencing business in Russia
Commencing business in Russia got simpler over the previous year as Russia progressed to 28th out of 190 nations in the World Bank’s 2020 business rankings. Information in working together in 2020 are current as of May 1, 2019. The markers are utilized to break down financial results and recognize what changes in business guidelines have worked, where, and why. This economy profile presents pointers for the Russian Federation for 2020, Russian Federation positions 28
Over the previous year, Russia made gaining admittance to power quicker, reinforced minority speculator securities by requiring more prominent corporate integrity and made paying assessments simpler, the World Bank said in a yearly report.
However, difficulties are extensive. Russia despite everything has critical administration, and debasement presently can’t seem to be destroyed. Nearly everyone in the administration appears to understand the need for basic monetary changes, however, progress toward this path has been somewhat languid up until now. As Mark McNamee states in the Harvard Business Review, the relationship between the West and Russia have been often hostile due to conflict in Ukraine, Russian meddling in US elections and the Syrian War. But Russia still managed to remain important among Western multinationals’ emerging markets portfolios.
Also, the Russian government has increased its regulations such as unplanned inspections of facilities, abruptly altered labelling requirements and threats of regulatory changes from the regional and federal government. At the same time, investors have pressured by the government to prove their loyalty to the local market by further localizing their supply chain, labour, brand, and production. This poses challenges when there are no quality local suppliers, which is often the case in certain sectors, such as healthcare. Also, their economic decision-making has become politicized and consequently, they have created positive attitudes over fighting corruption, which could lead to an improved business environment.
About RNR Group
RNR Group is a leading international trade and business management group focusing on providing personalized business solutions to private clients internationally, powered by high-end services and experience. RNR Group is actively following the latest change in global markets to remain at the front of the industry.
