The West is ageing and losing momentum

Dubai: The chairman of Emaar Properties has a new twist on an old saying. To young entrepreneurs looking to follow in his footsteps he says: go east, young man.

"The West is ageing and losing momentum," said Mohammad Al Abbar. "You've got an ageing population, and an ageing economy. The East is where the true glamour is."

Al Abbar told delegates that Arab companies should enter fast-growing eastern markets before development and competition hits a frenzied pace.

"The key with the East is to go very, very early, when airports aren't built and when highways aren't built. The policies are about to change, and for those where the heart is strong and the mind is brilliant, you'll get the best of that world."

In a panel discussion that included prominent figures from Dubai World, BT, Saudi Basic Industries Corporation (Sabic), and Abraj Capital, the message was clear: the West was a place for stable, secure, low-margin investments, while for those with the appetite for risk, real opportunity lay in India, China and other parts of the Orient.

"If you are a publicly traded company you are watched on a quarterly basis how much are you making," Al Abbar said. "So you have to put your $100 where it works the hardest."

Mohammad Al Mady, vice-chairman and CEO of Sabic, added, "To be global, you must be a strategic player. You have to have strategic plans. This cannot be done overnight. It has to happen through a process of evolution."

Sultan bin Sulayem, chairman of Dubai World, which invests in real estate and ports all over the world, said the returns are lower in the West but the financing is easier. "We invest heavily in Manhattan and London because it's steady.

"The growth is low, but financing is easier. To expand throughout the Middle East, the opportunities may be higher, but you have to start putting up the cash yourself. It takes more work."

But expanding globally also takes more fortitude, Al Abbar said. "You are all on your own, that is what global means. There is no one to call. You have to have strength. The local competition is tough. The politics are tough."

Local partnerships have been critical for Emaar to navigate the backstreets of the foreign business landscape, the chairman said.

Above all, it was important to focus on results. "Don't let glamour take charge," he said. "We have to tighten our belt now. It's all about performance."