Understanding local customs crucial

Businesses wanting
to penetrate Middle
East markets needed
to understand the
significant disparities,
as some countries such
as Saudi Arabia, Kuwait,
Oman, Bahrain and UAE
had higher incomes,
while others such as
Egypt grappled with
economic stagnation, said
president of the Minara
Chamber of Commerce
and international
adviser on the World
Islamic Economic Forum
Foundation, Ebrahim
Patel.
“The biggest challenge
for a South African
company entering the
market is to understand
local customs and ways
of doing business. Too
often companies go to the
ME with the expectation
of coming back with
large orders or expecting
“blank cheques” from
wealthy Arabs. It requires
nurturing and strong
relationships before
business can be done,”
Patel said.
Gulf Cooperation
Council countries had
some common regulations,
he said, but the regulatory
framework was extensive
and often changed.
“The UAE is seen to be
more conducive to business
as it has streamlined the
regulatory environment.
Often laws are not
properly codified or are
difficult to understand.
Documentation, proper
certification and labelling
are extremely important,”
he said.
“All food items must
carry a Halaal certificate
from a reputable and
recognised body (and)
ingredients must be
labelled clearly in Arabic.”