The world’s overall trading activities has been growing at about 8 percent every year, at least for the last 10 years. However, in the Middle East, the growth was only 3 percent. This can be attributed to the fact that its trade relationship with other countries in the world are centered on oil, tourism, human capital migration and natural resources. This leaves an enormous niche for new entrants from all over the world to come in and start up manufacturing, technology and industrial based trade.
Dependence on foreign goods
With very few home industries, most countries in Middle East depend on all kinds of imports and this provides a very god business opportunity. From basic commodities such as food items, clothing and construction materials, new entrants can specialize in the production of these products locally.
The Chinese takeover
According to recently produced statistics pertaining foreign trade in the Middle East region, China was seen to import almost three quarters of its total oil consumption from this region. China’s trade with Middle East has increased to 300 billion dollars in the last year. This has in turn resulted to improved living standards of the locals meaning their purchasing power too has increased and companies investing in the Middle Eastern region are likely to score big.
All is not rosy however. Some of the trade policies concerning foreign investors are very restrictive which translates to increased cost of production. For example, there is a law that goods can only be distributed locally by local agents who are given a lot of statutory protection in the expense of the foreign investors.
From what you have been seeing, trade in this region will continue growingand it’s up to you to make the choice that works best for you.