Entering the GCC market. Entry barriers and choice of location
Author
Summary, in English
The Gulf Corporate Council(GCC) is built up by the following six countries; Bahrain,
Kuwait, Oman, Qatar, the United Arab Emirates(UAE) and Saudi Arabia. These all offer
different incentives and prerequisites for doing business.<br>
<br>
The thesis is divided into three parts
in order to get a funneling approach to the work. In the first part of the thesis, different factors
that influences on where to locate are identified. The next part includes an evaluation of the
different factors in the GCC and is rounded up with the exclusion of three countries. The final
part looks into factors that are related to the region, which leads us to the optimal location to
establish within.<br>
<br>
The following factors were identified as important to investigate when entering the GCCregion:<l>
· Cost
· Logistics
· Market
· Human resources
· Risk
· Tax
· Ease of doing business</l><br>
<br>
These factors were evaluated in a weighted checklist, where factors found to be more
important was given the weight 2 in relation to the weight 1 for the factors of less importance.
The outcome of this phase was that Bahrain, Saudi Arabia and Dubai was the countries to
further investigate, since these came out on top in the weighted checklist.
The final part that investigated factors more related to the region, and the out come of this was
that the United Arab Emirates is the most suitable location to establish within.<br>
<br>
It stands clear that the long term effort to create a business friendly environment in UAE and
Bahrain has given them an advantage in the region when it comes to attracting newcomers.
Their efforts has led to that industrial clusters have formed which has strengthened their
position. Both of these countries offers 0% corporate tax which of course helps them to attract
foreigners. UAE might be the most attractive option, but it is at the same time the most
expensive.<br>
<br>
Saudi Arabia is the largest market in the region and should not be forgotten, but Saudi Arabia
is less attractive in many other aspects, such as higher tax, difficult regulations and more
complex bureaucracy. Hence it is an attractive option, but there are many obstacles to
overcome if Saudi Arabia is chosen for establishment.
Kuwait, Oman, Qatar, the United Arab Emirates(UAE) and Saudi Arabia. These all offer
different incentives and prerequisites for doing business.<br>
<br>
The thesis is divided into three parts
in order to get a funneling approach to the work. In the first part of the thesis, different factors
that influences on where to locate are identified. The next part includes an evaluation of the
different factors in the GCC and is rounded up with the exclusion of three countries. The final
part looks into factors that are related to the region, which leads us to the optimal location to
establish within.<br>
<br>
The following factors were identified as important to investigate when entering the GCCregion:<l>
· Cost
· Logistics
· Market
· Human resources
· Risk
· Tax
· Ease of doing business</l><br>
<br>
These factors were evaluated in a weighted checklist, where factors found to be more
important was given the weight 2 in relation to the weight 1 for the factors of less importance.
The outcome of this phase was that Bahrain, Saudi Arabia and Dubai was the countries to
further investigate, since these came out on top in the weighted checklist.
The final part that investigated factors more related to the region, and the out come of this was
that the United Arab Emirates is the most suitable location to establish within.<br>
<br>
It stands clear that the long term effort to create a business friendly environment in UAE and
Bahrain has given them an advantage in the region when it comes to attracting newcomers.
Their efforts has led to that industrial clusters have formed which has strengthened their
position. Both of these countries offers 0% corporate tax which of course helps them to attract
foreigners. UAE might be the most attractive option, but it is at the same time the most
expensive.<br>
<br>
Saudi Arabia is the largest market in the region and should not be forgotten, but Saudi Arabia
is less attractive in many other aspects, such as higher tax, difficult regulations and more
complex bureaucracy. Hence it is an attractive option, but there are many obstacles to
overcome if Saudi Arabia is chosen for establishment.
Department/s
Publishing year
2009
Language
English
Document type
Student publication for college degree higher education diploma
Topic
- Technology and Engineering
Supervisor
- Everth Larsson