The Middle East and western countries are one of the rapidly growing trade places which are likely to offer ample export opportunities in the European countries like Northern Ireland. With the emergence of global events like 2020 FIFA World Cup Qatar, Expo 2020 Dubai, and exhibitions like Gulfood, Gitex, etc, there is indeed bright export prospect for European countries.
As per the Australian trade committee, the Middle East Trade prospect can be viewed with bit anxieties, including the unique culture and language used for communication in this region. These are the major reason for the drawbacks which prevent trade from blooming in this zone. Countries like UAE and Saudi Arab are better in an aspect of stability as these countries do no face crisis of currency.
In the meantime, the Syrian dispute for the last four years certainly is creating a negative impact on exports of fruits and vegetables especially in the Middle East and Turkey. Egypt, on the other hand, is not that much affected by export trade.
The major portion of the export business is done in currencies like Saudi Arabian Riyals, UAE Dirhams which are relatively firm and is fixed at the rate of (US$ 1= SR/DHS 3.674). The Oman, Qatar, Bahrain, Kuwait (dinar) are equally strong.
From the logistic viewpoint, transportation problem can hit at times of trucking, for example, while exporting to Turkey, the truck has to pass through Syria which can be considered as a risk.
Getting a clear concept of the region
Geographically, the Middle East comprises of the countries like Bahrain, Iraq, Jordan, Iran, Qatar, Saudi Arabia, Syria, Yemen, Lebanon, Oman, Palestinian Territories, etc. Tactically situated between Europe and Asia this region is the perfect hub for export incorporation of the western countries.
Economic growth in this region has been blended in the past few years, but a rapid and consistent growth of population will provide with some good chances of exports in these regions. It has been observed that a number of countries are facing civil and political disputes in the recent years. Thus, it is very crucial that any exporting entering these affected regions should do an elaborate study of the market conditions and the political scenario.
Assessing the Opportunities
The Middle East and European countries grasp many lucrative chances particularly for the Small and Medium Enterprise involving mining services, education services, and agriculture.
The mining domain in this domain is developing. Other such facts which do need to have a look are as follows:
- The Gulf and European nations are seeking to shift their economy away from the oil business.
- Sound investment in other sectors like mining and construction of infrastructure
It will create export chances of mining tools, buying of technology and services. Apart from it, agricultural export markets have also strong prospect for the Middle East. Exports of lamb’s meat and beef to these Gulf and European countries have significantly increased in the last few years. Other agricultural export product includes grains like wheat, barley, and canola.
Education is also the chief service export domain. A number of educational institutions have branches spread all over Europe and Middle East nations. This is expected to grow in future as the region stares to the ‘up-skill’ and broaden their workforce from the oil business.
Risk Management
Risk management may be a newly introduced concept of for these nations. There are large numbers of disparities to do trade in these areas and also dealing with these disparities could impact the trade. Risk management is an integral segment prior to entering these markets.
It is very important to remain conscious of ‘cross-cultural’ dissimilarities when doing business in the Middle East and the European countries as it will not hamper any ‘potential partnership’. The business law is also likely to vary from region to region. In case of the Middle East nations, major laws are based on the Islamic principles. These laws have an immense effect on export prospects. Thus, it is advised to be a bit aware of all such laws.
Thus, it can be concluded that the Middle East and European countries are the regions providing with some of the incredible opportunities for the export trade where companies must be flexible enough to manage any conflict.