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International Marketing

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Executive Summary

Homes, businesses, and governmental engagements have all been altered by digital

technology. Technological advances have lowered prices, expanded variety, and improved

information for customers, but they have also introduced new potential hazards. Developers

and trendsetters of new technology may prosper, but others may fail to adapt to the

digitalization. As a result of digital technology, countries are being forced to make significant

changes, from the drafting of regulations to the provision of services. Small and medium-

sized firms (SMEs) are the backbone of Arab markets, contributing for over 90% of all

organizations and creating a significant number of new jobs (Bardhan & Wood, 2015).

Authorities all throughout the Arab world understand the importance of SMEs in achieving

greater and more shared prosperity. To fulfil the demands of youthful population, many have

correctly placed SME development at the centre of growth and business initiatives.

Authorities have started policy initiatives and programmes to help small businesses grow.

However, progress has been uneven thus far, and more detailed policy intervention is

necessary.
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Contents

Introduction..............................................................................................................................4

Company Profile.......................................................................................................................4

Cross-Country Analysis...........................................................................................................5

Market Potential Analysis.......................................................................................................7

Strategic Considerations of Doing Business in Middle East................................................9

Recommendation....................................................................................................................10

References...............................................................................................................................12
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Introduction

To increase wages and generate employment for an expanding population, the Arab

World need greater and more inclusive development, as well as more diverse markets. The

region has a high unemployment rate and a big projected pool of newcomers to the labor

market. Due to a variety of causes, growth has been unequal since the international economic

meltdown, resulting in stagnating salaries and inadequate employment prospects in many

Arab nations. State-led adaptation strategies have failed to achieve the wide ranging and

long-term growth needed to increase job creation and make economy more inclusive. As a

result, a more powerful, private-sector-driven economic engine is required to deliver greater

results for everybody.

To achieve greater and more comprehensive corporate progress, the development of a

robust SME sector is critical. In comparison to other areas, SMEs in most Arab nations

produce very little in regard of production and employment. However, a thriving SME sector,

particularly start-ups and young businesses, may be a key source of jobs and invention,

increasing performance, development, and diversity (Bardhan & Wood, 2015). A wide range

of structural and institutional issues must be addressed in order for this to happen, including

lowering economic informality, highlighting the need for a comprehensive strategy.

Company Profile

Neuron Mobility was established in 2016 in Singapore. Following expansion into

other regions of Asia, the firm swiftly reoriented to center on Australia and New Zealand,

where it is currently the largest e-scooter rental agency and innovator of micro movement

technologies. Australia, New Zealand, the United Kingdom, South Korea, and Canada are

among the industry's current operations.

The unique orange e-scooters are developed and built in-house for rental and safety

purposes. They operate better and survive much longer than off-the-shelf models since they

are built to a commercial standard. Neuron Mobility's design of e-scooters has allowed them

to be a leading company in regarding safety and long-term functioning, and as a consequence,

they've established a lot of world-first and groundbreaking capabilities. The aim of Neuron

Mobility is to work with cities to link people and places in a secure, efficient, and enjoyable

way. The company's aim is to use new methods of movement and interacting to help the

world achieve a more affluent and prosperous future.

Neuron Mobility, a Singapore-based firm, has raised $23.3 million in funding to

expand its e-scooter business into foreign markets, just a month after the country's tough

legislative reforms. Neuron Mobility, which started in Singapore, runs an e-scooter rental

platform with the same name. Neuron has spread to cities in Malaysia, Thailand, Australia,

and New Zealand in latest years and months. In any region where they are accessible,

Neuron's e-scooters are inexpensive. For example, in Brisbane, Australia, anybody may rent a

Neuron bike for one Australian Dollar (68 US cents) and then pay 38 Australian cents each

minute of riding.

Cross-Country Analysis

The Middle East appears to be more difficult than any other area for multinational

firms to establish a presence. Through the Gulf Cooperation Council, a political and

economic coalition of six Middle Eastern nations is formed. The 7,207,575 square kilometer

(2,782,860 sq mi) region is recognized for having one of the world's largest oil and natural

gas resource divisions (Bizri, 2018). Owing to delayed development civil strife, higher

taxation policy, human smuggling for cheap labor, and respecting religious practices to honor

their sentiments, the right approach becomes increasingly vital before penetrating Arab

Countries.
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The worldwide flow of products, resources, cash, data, innovation, and personnel has

made it more necessary for Middle Eastern countries to lower restrictions to their

organizations and economies. This tendency has also resulted in the revision of outdated laws

and the enactment of new regulations to meet new concerns. Since the initial seeds of

internationalization were established with the flood of European trade and exchange in the

nineteenth century, Islamist Middle Eastern states have changed their Islamist legislation to

variable levels.

Individuals in the Middle East are frequently buying based on their ideals and ethics,

resulting in fast development in Islamic Finance and the gradual but steady rise of more

ecologically sustainable processes in sectors such as food, building, and transportation.

Taxation and the cost of operations are always factors in site decisions, and the

situation in the Middle East is more difficult than it sounds at first. Most Gulf nations have a

tax-free regime, which makes them appear appealing at first glance. Entrepreneurs, on the

other hand, must carefully consider the overall cost of operations, which includes rent,

different license fees, import taxes, and telecommunication (Sorenson, 2018).

Telecommunication costs can surpass workspace rent in some nations with subsidized

telecom providers.

There's really no distinction between career and personal life in most Arab nations.

Personal connections, familial ties, trustworthiness, and integrity are important to doing

business in the Middle East. When significant ties to individuals in the "appropriate location"

are implicated, it's not unusual for the regulations to be somewhat twisted. While the Arab

World is known for its conservative and religious culture, many parts of their corporate

conduct may appear to be quite free and unstructured. One striking example is that it is very

typical for Middle Eastern males to grasp the hand of a male visitor when taking him
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someplace. Furthermore, scheduling sessions ahead is not advisable because personal

problems often arise and receive priority over business matters. Furthermore, when it comes

to names, Middle Easterners are known for their informality. In the Middle East, for example,

John Doe is often referred as "Mr. John."

Most Foreigners will consider business encounters in the Middle East to be hectic.

This turmoil, however, does not imply that Middle Eastern people are unconcerned with the

situation. Foreigners are supposed to be prompt, while Arabs are not very timely. It isn't the

end of the world if you're late for an appointment; a courteous apology will generally suffice.

Conferences in the Middle East usually do not adhere to a tight itinerary, and disruptions of

different kinds are common. Middle Easterners prefer dialogue and discussions versus having

one side control the conversation. Westerners may perceive negotiations as lengthy out since

Arabs have a reputation for taking long to make choices. High-pressure techniques should be

avoided by foreigners since they almost always backfire.

Market Potential Analysis

Most Middle Eastern nations' economic patterns have dramatically developed over

time. Previously, these nations have developed their riches on the grounds of oil, but as they

move away from a hydrocarbon-based economy, innovation is becoming a major emphasis in

economic growth. International ownership rules in the Middle East have generally been strict;

nevertheless, authorities in the area have begun to relax these regulations, rendering their

economies more open to international investors. For example, the United Arab Emirates has

revealed plans to eliminate the 48 percent overseas investment restrictions in some

businesses, allowing overseas investors to acquire 100 percent of firms (Jeswald W, 2013).

Saudi Arabia is following suit, with prohibitions in a multitude of sectors being abolished and

the Vision 2030 program deliberately broadening up the markets to international investment.
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There is indeed more to be done to encourage foreign investment, but as this

progresses, new businesses like technology and finance, in particular, are benefiting, with

administrations around the region seeing this as a key area for their future economies. Indeed,

as part of Vision 2030, the Financial Sector Development Program intends to allow fintech

businesses to provide financial services in Saudi Arabia (Eldin, 1988).

The Middle East area may become the most significant developing market for global

possibilities in the next years. The reality is that the Middle East is becoming more desirable

as an investment location as oil prices drop and the shift away from fossil fuels continues.

Contrary to common assumption, the oil sector is not the main source of income in the

region. Similarly, misunderstandings about Islamic and Middle Eastern law, as well as

unpredictable political conditions, scare away foreign investment. As other established

nations, such as the EU, face increasing volatility in the forthcoming years as a result of high

inflation in some regions of the EU and the possible withdrawal of the United Kingdom and

other nations, emerging markets will become increasingly significant (Sorenson, 2018. This

is true in terms of income sources diversification from conventional markets as well as higher

projected yields in emerging economies.

Government wealth disparity, as well as reliance on foreign labor, contribute to an

economic atmosphere that suppresses progress. The Gulf Cooperation Council (GCC) is a

political and financial alliance comprised of six Middle East nations: Saudi Arabia, Kuwait,

the United Arab Emirates, Qatar, Bahrain, and Oman. Since the late 1960s, the GCC has been

taking real measures toward development. the establishment of industrial cities in Saudi

Arabia such as Yanbu and Jubail, and the ports in Dubai, were conducted with the primary

intention of broadening economic growth by investing oil resources in physical investments

(Joshua & Kathleen A, 2013).

Strategic Considerations of Doing Business in Middle East

Several factors must be eliminated if a firm wishes to develop in Arab countries.

Islam is the world's second biggest religion, with 1.8 billion adherents, or 24 percent of the

world's population. Gender discrimination persists in the Middle East. For concerns of

equality in diverse psychological states, a clear strategy must be put in place. One example is

that when employing personnel, it may be counterproductive to advise them to relocate to a

region where equality rights do not exist. There are 18 nations where females require their

husband's work authorization, including Bahrain, Iran, Qatar, and Syria (Joshua & Kathleen

A, 2013). It would be unwise to open an office in an area where working men and women are

not respected, even if they are not from the original country.

Second, recruit a local who can coordinate in their own dialect. Corporate and family

ties are inseparable, and Gulf Arabs choose to do dealings with individuals they recognize.

They are also extremely proud of their culture, which serves as a powerful, unifying bond

throughout the Arab world. The Gulf countries have a mix of stereotypical religious people,

and shareholder attitudes might have a negative impact on the company.

Government legal issues, licenses, and laws can be hard to cope with at times due to

the intricate procedures that must be followed during the entire operation. Managers must

have enough coaching on how to tackle legal issues, as well as knowledge of the many rules

and regulations that are in place in these countries. The Commercial Agencies Law of the

United Arab Emirates (Federal Law No. 18 of 1981, as modified by Federal Law No. 14 of

1988) controls and oversees the hiring of corporate agents, sales associates, and suppliers in

the United Arab Emirates (Sorenson, 2018). Sharia law is present in several Arab nations and

is defined as a system that regulates the route of a Muslim's life from everyday routine to

money dealing, personal living, and religious responsibilities.

Before entering into negotiations, it is critical to establish a solid connection built on

mutual trust. Face-to-face interaction is always the ideal method to start, since in certain

nations (Saudi Arabia), they don't really concentrate on businesses by cellphone with

foreigners, preferring physical visits to form stronger bonds. Saudi Arabia is the Golden

Goose, yet it is a difficult location to market your products and conduct business in general.

Commercial permits can be tough to get, as they are granted at the whim of the Saudi

Ministry of Foreign Affairs and local embassies and consulates. Treating all Arabs equally

may be the worst thing a foreign entrepreneur can do at times; therefore, it is essential to hire

an intermediate who can take you from neighborhood chambers to commercial offices. If

you're just starting out in the Gulf area, for example, it's a good idea to put together a few

modest, fast deals to determine whether firms are sincere about doing business with you.

Recommendation

Overall, based on our findings and research into various tactics, we can conclude that

establishing a firm in the Middle East would be a little complex and tough. Each division's

economic, administrative, and social environments are not the same. When developing the

operational plan, there is a requirement for a local coordinator that can help you through the

process. Trust, local language, clothing code, business savvy, hospitality, religious (5 times a

day prayer), greeting, and honesty are some qualities to look for while working with Arabs.

Investing as a foreigner in Middle Eastern countries is more difficult than investing in

Europe and East Asia, but it is not unachievable. All Middle Eastern nations have a

digitalization strategy, which is a political and monetary engagement to building knowledge-

based economies through the development, implementation, and/or use of digital

technologies and business models. Many strategies have the proper elements, combining

audacity and long-term vision while focusing on quick-win, short-term projects. However,
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not everyone understands what a digital economy would entail for their residents and

enterprises. 

Doing business in the Middle East may be a difficult experience for Foreigners. It is

critical to take the time to learn and comprehend why activities are conducted the way they

are. There are numerous variances in terms of the entire process's pace, as well as individual

sessions and what type of conduct is allowed.

References

Bardhan, S., & Wood, R. L. (2015). The role of culture and technology in civil society

promotion in the Middle East: A case study approach. Digest of Middle East

Studies, 24(1), 111-138. https://doi.org/10.1111/dome.12061

Bizri, O. (2018). Science, technology, innovation, and development in the Arab countries.

Academic Press.

Eldin, A. S. (1988). Legislative stability and the investment climate: A comment on the

unified agreement for the investment of Arab capital in the Arab countries. ICSID

Review, 3(1), 147-158. https://doi.org/10.1093/icsidreview/3.1.147

Jeswald W, S. (2013). Part I international investment and the law, 3 three legal frameworks

for international investment: National, contractual, and international. The Three

Laws of International

Investment. https://doi.org/10.1093/law/9780199654567.003.0003

Joshua, C., & Kathleen A, C. (2013). 1 the contemporary Middle East. Minority Rights in

the Middle East. https://doi.org/10.1093/acprof:oso/9780199679492.003.0001

Khalfaoui, H., & Derbali, A. (2021). The determinants of foreign direct investment: What

about the potential of the Arab Maghreb countries? Journal of Investment

Compliance, ahead-of-print(ahead-of-print). https://doi.org/10.1108/joic-04-2021-

0010

Sorenson, D. S. (2018). The political economy of the Middle East. An Introduction to the

Modern Middle East, 84-105. https://doi.org/10.4324/9780429494161-5