Book review: ‘The Arab World Unbound’

Citizens and residents of the Arab world are all aware of the West’s fixation with all that is negative in the region and its gross stereotyping. If one goes by the reports in the press of the developed world, violence, intolerance, strife are the only issues worth talking about from this part of the world. There is hardly any writing of repute which seeks to show the other side of the coin — a vibrant society which seeks to integrate with the world at large while remaining true to its roots.

This is where a new work, “The Arab World Unbound”, seeks to break new ground. Written by Vijay Mahajan, who holds the John P. Harbin Centennial Chair in Business at the McCombs School of Business, University of Texas, Austin, the book gives a fresh perspective to the Arab world’s economic-growth stories and the boundless opportunities it offers to multinationals. Mahajan, whose earlier work, “Africa Rising”, dealt in depth with the power of the African consumer, turns his attention to one of the most happening places on Earth, but focuses on what is rarely talked about — the economic potential of the Arab world.

As the mature economies of the West continue to seek a way out of the mire of economic recession, multinational companies based in these countries are constantly looking for avenues to maximise their incomes from external markets. Thus we find the keen interest generated by the potential in “emerging markets” and “frontier markets”. As a result, the original darling group, Bric (Brazil, Russia, India and China) was expanded to “Brics” (with South Africa) and now there is talk of a further expansion to “Bricks” (with Korea). Finding markets to sell their products has become imperative of late as India’s promising story of the past decade has virtually come to a grinding halt and China, too, has been slowing down as its factories feel the heat of the global slowdown.

In this context, Mahajan’s work assumes importance as, in his own words, “The Arab World Unbound” is a “primer for companies seeking to learn more about the Arab world and how they can capitalise on the market opportunities there”. As the jacket of the book proclaims, “The 350 million consumers in the Arab countries collectively wield one of the ten largest economies in the world — a marketplace that offers myriad opportunities for savvy investors, entrepreneurs and business people.”

According to estimates, the combined gross domestic product (GDP) of the Arab League as a bloc amounted to roughly $1.99 trillion (Dh7.3 trillion), which made it the ninth largest economic bloc in the world. “If the 22 Arab League countries were a single economy, their collective GDP would amount to $5,563 per person — more than both China and India,” Mahajan writes. Surely such a huge market is worth exploring and this is what the writer seeks to do through his work.

The one major difference between Mahajan’s work and other similar ones is that he has undertaken extensive empirical research to gather material for the book. He terms the research a rihla, a journey of discovery, which took him to all but four of the 22 countries that make up the Arab League, between 2008 and 2010. This first-hand experience comes forth throughout the book as Mahajan describes his meetings with both top corporates in Dubai and small street traders in Khartoum. Interspersed are model success stories in the region, ranging from locally developed businesses to how multinationals have tweaked their marketing strategies to suit regional needs. As he would probably do as he was concluding a lecture, he provides a set of questions at the end of every chapter for companies interested in the region on issues of maximising their potential income from the region.

In this vein, Mahajan seeks to delve into the mind of the Arab consumer and unravel his/her likes and dislikes for the benefit of the multinational seeking to build a base here. Thus one of the interesting features is an entire chapter dedicated to the five pillars of Islam and how they shape the mind of the Arab consumer. Also, there is a detailed analysis of the power of the Arab youth — how this segment craves for the latest gadgets and fashions while remaining grounded in their culture.

Women, too, find prominent mention as a major consumer segment. Mahajan describes how several companies have modified their marketing strategies within the region to target the right clientele. Thus, ads for the same product would be different in Lebanon and Saudi Arabia.

A major part of the region’s population being expatriates, they find a mention in the book as well. Thus in the chapter of diversity in the Arab world, there is a section which deals with the South Asian influence on the Arab consumer market and on the extensive blue-collar populace from that part of the world which has made the region its home. This has significant impact on the products marketed in the region.

Overall, Mahajan does a good job in seeking to dispel the stereotypical myths surrounding the people of the region. Both for companies seeking new markets as well as those who seek to know the realities of the Arab world, this book will go a long way.