Doing Business
In Middle East

The countries of the Middle East have long taken advantage of their natural oil resources to enrich themselves and thus experience exponential growth. However, since the collapse in oil prices, the region has put in place new strategies to stimulate other economic sectors and prepare for the post-oil era. Although the region faces multiple environmental challenges such as extreme temperatures and unstable soil due to its composition, the countries of the zone are showing great resilience and abounding in opportunities in the construction sector.

Recognizing the potential role that investment can play in supporting the Sustainable Development Goals, from economic diversification to the creation of quality jobs, governments in the MENA region have embarked on substantial reforms over the past decade to promote and facilitate FDI. These governments have amended investment laws, facilitated market access, simplified regulations governing business activity, strengthened the mandate of investment promotion agencies (IPAs) and taken steps to guide investment. towards regions whose development is lagging behind. While some economies have attracted significant FDI inflows, MENA economies have been generally less successful than other emerging and developing economies in mobilizing investment for sustainable development. The political instability, conflicts and social and economic shocks that have characterized the last decade are all factors that have adversely affected the conditions for investment. Some structural challenges common to different economies, such as barriers to competition, skills shortages, inadequate infrastructure, governance issues, and weak regional integration, have also prevented these economies from reaping the benefits of the FDI.

MENA economies may also attract new multinational companies that plan to diversify - if not shorten - their supply channels. Harnessing the benefits of the investment will be critical to fostering recovery from the pandemic.

The Middle East offers many opportunities for companies that know how to seize them. The most dynamic exports are found in the sectors of pharmaceutical preparations, aeronautics, agro-food, but also in equipment for the oil industry, cosmetics and luxury goods. Numerous infrastructure projects intended to promote the diversification of the economy are also planned. Several countries in the Middle East are launching numerous projects to renovate, expand or build airports, smart cities and support the development of health infrastructure.

Companies wishing to penetrate these markets must make sure to find a partner who can assist them in all of its efforts. This choice is essential, because it is through the network of partners that the company will find outlets. You have to be vigilant and target influential figures who are historically active in the target market. Different forms of partnerships are possible. This can be a distribution agreement or an agency contract. A joint venture with an establishment as a subsidiary for the development of a production unit can also be considered, as can the opening of a representative office oriented towards the development of a larger presence in the future. It is also necessary to consider the complexity of the regulations and to have legal assistance to interact with local authorities.

Do you want to get started? are you looking for a solid partner who knows these markets very well? Don't hesitate to contact us.