1. Do your homework: learn something about your target country; no, you don’t have to learn Arabic, but do learn some greetings; and understand that the Middle East is not only what you see on CNN or the evening news (usually scenes of violence or of money in Dubai). Note that relationship building is especially important.
2. Be culturally sensitive: both the business week and business hours are different in the region, with SUN – THUR and later hours the norm; Friday is mosque day (communal prayer). Remember, the region has a long, rich history and people want to be treated as equals with the West. Also, be ready to drink a lot of tea. Don’t expect much, if any, alcohol.
3. Learn even a little about political issues: Arab/Israel (eventually your local business partners may inquire of your opinion); government sanctions (U.S. businesses face certain restrictions such as in Iran); and illicit payments (referring to bribery, which U.S. companies are prohibited by law from engaging in — and it’s not necessary to do business, says the Ambassador).
4. Patience needed: don’t present the image of being in a hurry, a rather common stereotype of Americans. Can’t expect to fill your order book right after leaving the airport; doing business begins with relationships.
5. Use the U.S. govt.: the Dept. of Commerce, embassies and consulates all have information and resources available to U.S. companies looking to do business overseas.
6. Think about security: while the Middle East is not the 24/7 violence portrayed on the news, recognize that like anywhere it is important to be aware of your surroundings; you can’t do business if you’re uncomfortable. Review State Dept. travel warnings; contact the consulate if you are planning an extended stay.
7. Find a local partner: “most important” step when targeting a market; may be an agent, representative, or a distributor; a local partner can also facilitate with any cultural sensitivities that may arise.
8. Consider intellectual property issues: as with any market you enter, ensure that you’re intellectual property rights are protected. Don’t assume protection if you’ve only registered in the U.S.
9. Beware of the “V” word: don’t make promises regarding immigration visas to the U.S.; issue may eventually arise with local business partners; U.S. concerned with security and immigration, but serious commercial implications if business lost to more “open” European markets, for instance.
10. Understand M.E. buyers’ criteria: quality is king, and there’s a willingness to pay, but it’s not everything (can’t charge too much premium); also looking for service and personal relationships. Preference to do business or at least interact with more senior ranking company representatives.
11. Be prepared to compete: true of any market, but there are some distinct advantages/disadvantages for U.S. exporters. The former include existence of free trade agreements in select regional economies. The latter is largely in light of European competitors (proximity and longevity).
12. Be realistic, be bold, and be patient (see #4), as you strive for success.

Along with his “12 Rules,” Ambassador Donnelly also mentioned the importance of foreign currency exchange rates. He advised that business counterparts in the Middle East are sophisticated with forex, and the fluctuations in the dollar can impact business since for example, euro-denominated goods or services may be priced more or less favorably. On that note, TradeFlow21 is continuously tracking economic and capital market developments, and we look forward to helping your company engage in business in the Middle East.

1)      demands the cessation of hostilities between Israel and its neighbors, including the creation of a sovereign Palestinian state as the only viable means of resolving the Palestinian question

2)      requires a U.S. policy that summarily rejects those in all quarters who use division and discord as a means of maintaining their “competitive advantage” in the region

3)      dictates that economic development, through investment and trade, be embraced as the preferred path to establishing a more stable, secure world for all

In his long-awaited speech on American-Muslim relations today in Cairo, President Obama responded, arguing that

1)      “America will not turn our backs on the legitimate Palestinian aspiration for dignity, opportunity and a state of their own”

2)      “as long as our relationship is defined by our differences, we will empower those who sow hatred rather than peace…conflict rather than cooperation…this cycle of suspicion and discord must end”

3)      “on economic development, we will create a new corps of business volunteers to partner with counterparts in Muslim-majority countries…I will host a summit on entrepreneurship this year to identify how we can deepen ties between business leaders, foundations and social entrepreneurs in the United States and Muslim communities around the world”

Thank you, Mr. President.  The partners of TradeFlow21 will join you in the cause to build a prosperous, secure Middle East through commerce and trade.  Let us now begin our work.

Next January, President-Elect Barack Obama will be severely tested on many fronts:  a two-theater war; dislocation of global markets; and a mounting environmental crisis that threatens to alter the face of the earth and the security of nations. He will be pressed for answers, not just explanations.

For many, the Middle East is the nexus of terror, provoking wars of intervention, and oil, which has created untold wealth for the region and pollution as a by-product of a fuel-addicted world. It is also a land of over 300 million people, where industry, entrepreneurship, and direct foreign investment have fed a development boom of unprecedented scale. Though Gulf states in particular have felt the effects of the current financial crisis, resulting in plummeting home prices in Dubai and the court-ordered closure of the Kuwait stock exchange, the Middle East’s influence in world markets is uncontested.

We urge the President-Elect to seize the moment and let trade flow freely into this intersection of the world, supplanting terror and war by transforming oil-dependent economies into highly diverse, fully integrated drivers of global growth and opportunity.

Let trade also rebalance a troubled region that for the past 60 years has employed a Cold War model with Israel as the sole arbiter of U.S. and Western interests.

Let trade transcend language, culture, and faith as democracies and theocracies find concord through commerce, with prosperity and security the dividends.