Middle East is a potential market for UK investment

Dubai: Despite the political tension in the Middle East, the region remains one of the fastest growing markets, with massive investment opportunities, said business experts at the Britain in the Region’s 2015 conference on Monday.

“Risk is there and the Middle East is a vibrant and fast-growing region that holds considerable potential for British companies looking for expansion,” said Trevor McFarlane, founder and Chief Executive, emerging markets intelligence and research.

“When we talk about the Middle East we talk about 365 million people. Yes there is a political risk in this very large market, but it is not a homogeneous market. It is a heterogeneous market.”

He said the market has a Gross Domestic Product (GDP) value of $2.8 trillion (Dh10.3 trillion) and 4 per cent of annual economic growth which should be diversified. “When you look what it is happening from Morocco to Oman there is a lot of different business opportunities and different levels of risk,” McFarlane said.

When UK investors intend to invest in the Middle East they automatically think of the political risk in Iraq, Syria, Yemen and Libya, he said, “The actual fact is that investors need to discriminate between markets. The UAE is one of the most politically stable and advanced economy in the Middle East.”

McFarlane advised investors to do their homework and have a different strategy for each market where they look to invest in the Middle East.

“Setting up a business depends on the company, industry, product and which market investors going to venture,” he said.

If a company is running a security solution business, it can invest in Iraq as a very potential market for this business, according to McFarlane.

McFarlane said that 95 per cent of the UK companies that want to expand their investment in the Middle East, want to set up their companies in Dubai.

“They want to base their operation in Dubai because of the level of infrastructure, lifestyle, regulation, access to opportunities and the connections,” McFarlane said.

Through the UAE they have different destination choice to their investments as they can oversee Middle East and Africa, he said.

“Also a good number of investors put their base in the UAE and want to access Saudi Arabia as it is the biggest value market in the Gulf region,” McFarlane said.