时间：2022-01-20 09:57:47
Think of the Arab world and the images that immediately come to mind are those of political turmoil, armed conflicts, religious oppression, Somali pirates, oil-rich sheikhs and women in veils. The general impression is that of a region whose people have not learnt to live in peace, either among themselves or with the rest of the world. Naturally, not many corporations want to invest in the region, as the risks far outweigh the returns.
Vijay Mahajan, who teaches business at McCombs School of Business, University of Texas, and had earlier authored Africa Rising, undertook his own rihla (journey) across 18 of the 22 nations that make up the Arab League to understand the region. And what he saw – and describes in his latest offering, The Arab World Unbound – dispels loads of misconceptions about the region, and points to the huge business opportunity the 350 million consumers there offer.
The book is peppered with interesting anecdotes, while Mahajan’s assertions are largely backed by numbers. He debunks the generally-held perceptions that western brands are unwelcome in the Arab world. “Regardless of the political and cultural differences between Arab countries and the rest of the world, people drank Red Bull in Dahiyeh (the Hezbollah-controlled neighbourhood in south Beirut), drove Range Rovers in Kuwait and ordered Domino’s Pizza in Saudi Arabia…. it is a marketplace filled with consumers who shared the same basic wants and needs as anyone else, anywhere else.”
Mahajan presents many more convincing arguments for investing in the region. The Arab League – if considered a single nation – has a gross domestic product of $1.99 trillion, which is the ninth-largest in the world, higher than India’s $1.63 trillion (in 2010). Disaggregate the data and what emerges is even more interesting. Only five of the 22 Arab League nations have a per capita GDP lower than India’s and nine have per capita GDP even higher than China’s. A typical Arab household’s spend surpasses that of one in China by two thirds, and is three times that of an average family in India.
Demographics? Fifty-three per cent of the region’s population is 25 or younger. Scenic beauty? It attracted 79 million tourists – more than any single country. Social media is on the rise and cell phone density is higher than that in the United States, China and India. “… Today’s Arab economy is no different from what the BRIC markets were then (in the 1990s): relatively modest, complex and easily ignored,” says Mahajan.
The book also throws some light on what companies need to do to survive in the region, such as respecting Islam and understanding the local culture. Mahajan feels the Yalla (can do) spirit of the region should ensure greater pace of growth in the future. However, while the book addresses the merits of doing business in the region, it does not entirely allay corporate fears.