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The Arab market is not divorced from the rest of the world. Consumers there have the same demands as people everywhere, and the region’s markets are growing, globally interlinked, and intensely competitive.
More than half the population is under 25 years of age, making it one of the world’s most youthful markets.
All across the region, a whole new economy is rising, mixing local values with surging consumption and building ever richer ties to the global economy.
The religion is central to society and business, governing most facets of the marketplace. Its influence isn’t fading; the same Arab consumers who yearn for progress, modernity, and inclusion don’t wish to abandon their religious and cultural traditions. Thus, Arabs like and respect Western brands—but only as long as those brands don’t conflict with their values.
Not all consumers in the Arab world are Muslims, but Islam molds the region’s economy, touching every consumer and company through its five pillars.
Cultural, religious, private or public company( public on the local stockmarket),
timing, work ethics,male dominated executives, international employees.
Islamic law rules the business climate either halal-allowed or haram-forbidden.
Banking is based on Islamic law, officially no interset is given or taken with islamic banks.
International banks do charge interest rates on loans and give on deposits.
Private companies are led by the Chairman usually the father of the family
followed by the eldest son as CEO etc.
Board may or may not include family members or friends.
Executives in public companies are appointed by the local ruler ( sheikh, sultan.
emir etc)
From my point of view, Western corporate business is more developed, more smart, especially developed technologically.
Business in Islamic country has a great potential, an excess of work forces. And in future, business in Islamic countries will be more stronger, higher, better than in western countries, because the West in general finished his development resources. On the other hand Islamic countries only on start of their way.
When we do international business, we have to do research to know the target market and target people as much as possile and make strategies accordingly.
First, we have to know and respect the difference of culture and customs between Western countries and Islamic countries.
Second, We have to consider the religion difference. In this way, Islamic countries have more taboos, so when operate a business in Islamic countries, it'd better to know the taboos and avoid to offend people.
Third, we have to know the different work style in western countries and Islamic countries. . e.g. Islamic people are more conservative and implict, they would like to know the business partner better before invloving in the business. It'd better to meet more and talk more with the business partner to set up the relationship.While western country are more open minded and straighforward, they more prefer the cost and efficiency.
