Capturing Fair Share: Tips for Small Businesses on Accessing the Gulf

Since the publication of Dubai & Co.: Global Strategies for Doing Business in the Gulf States, a number of US companies have contacted me with a similar and compelling question. While the book provides a strategic guide for international firms seeking to integrate the region into their global strategies, is the Gulf opportunity available only to large multinationals? How, if at all, can smaller businesses enter the region?

For small firms, business development is typically a key challenge. When development plans include Gulf aspirations, the challenge takes on unique — and exciting — dynamics.

As a starting point, here are a handful of tips – specifically for small businesses – worth considering as they craft their GCC strategies. These are in addition to the overall frameworks and suggestions discussed in Dubai & Co.

Tip 1: Define and communicate the niche in which you are “best of breed”

Like buyers everywhere, Gulf consumers and businesses seek world-class products and services from international companies: that’s why they admire global brands. Smaller firms that define their space truthfully claim “best of breed” status – even if currently small – can find a niche in the Gulf market.

The cosmetics industry, for example, is one in which a niche product can be made compelling. Imagine a skin care product designed to withstand dry heat and tailored specifically for the complexions of the Gulf. Such a product – if communicated effectively – could succeed even in a highly competitive product category.

Tip 2: Tap into expatriate communities

One way for small international firms to learn more about the market and create awareness of their offerings is through the targeted engagement of expatriate communities. Small Australian companies, for example, can reach out to the vibrant and growing community of Australian expats in the region as a base for building contacts.

Formalized expatriate business associations and chambers of commerce have taken root in the Gulf and can be a useful resource. Some have even developed pro-active trade promotion strategies which give a heightened profile to smaller businesses. One striking example is International Business Wales’ trade promotion activities that have actively marketed Welsh businesses in the Gulf.

Tip 3: Pick up “excess” work from larger players

As the Gulf economies have boomed, global players have seen demand for their services expand tremendously. In private, leading companies – especially top-notch professional services firms – lament over the struggle to create capacity to meet client demand.

Less-known players can benefit from this phenomenon by picking up some of the “excess” workload. Market research companies, for example, can partner with consulting firms and advertising agencies to execute detailed research and analysis. In collaborating with larger firms, smaller ones develop track records that can help with client development of their own.

Tip 4: Manage your Web presence to promote and deliver

The Web is, of course, a great equalizer in which small firms can have a disproportionate presence. While overall broadband penetration in the Gulf is lower than some other markets, broadband adoption amongst the most attractive customer segments is very high.

In the book, I discuss an online women’s community called Hawaa World. One way in which women have used the site is to help each other shop for international products – such forums are ideal places to create “buzz” about your offering.

(For more on Hawaa World, see Chapter 2 – “Think Again: Addressing Misconceptions about the GCC” – of Dubai & Co.)

Tip 5: Explore free zones for building presence

The free zones developing around the Gulf, including several in the UAE and a growing number in Qatar, Bahrain, and Kuwait, are a magnet for small businesses. Dubai’s Media City is a prime example: while it has actively courted global leaders like CNN, it is also home to a great number of small, entrepreneurial ventures.

Companies typically start serving Gulf customers from a distance to develop traction in the market before opening in free zones. As a firm’s Gulf business grows, however, a free zone presence makes sense and can be a tremendous enabler.

Small businesses have long been the backbone of robust economies. As commerce becomes increasingly global, smaller firms no longer need confine themselves to their domestic markets. International expansion is a real option, and the Gulf is a bright spot of opportunity – for businesses large and small.