The Global Phoenix - Issue 3 August 2017 | Page 33

OVERVIEW AND
CURRENT EVENTS
The 15-nation region of the Middle
East at the intersection of Europe, Asia,
and Africa has always been pivotal in
international trade and commerce, lying
at the crossroads of major land and sea
trade routes and home to some of the
world’s oldest civilizations and major
cities. Producing a third of the world’s
oil and gas and possessing the resulting
wealth derived from it, the region’s
influence stretches far beyond its oil
fields. The accumulation of wealth since
the discovery of oil in the early 20th
century now touches virtually every global
business sector, and the current era of
lower global oil prices is now giving rise
to increasing globalisation and economic
diversification in the region.
While the Middle East presents
tremendous business opportunity,
corporate mobility can be challenging
for companies operating in the region.
The legal and societal environment can
be challenging to those not familiar
with local laws and customs. Contrary to
stereotypes, the Middle East is home to
just 40 percent of the world’s Muslims;
however, all but one nation has Islam as
the predominant religion, and 93 percent
of the region’s population are adherents.
Local laws, customs, and business
practices are clearly influenced by Islam,
and outsiders often find practices to be
more traditional and conservative than in
the west.
As a result, corporate mobility and
immigration laws in the Middle East
may be markedly different than those
encountered in the rest of the world.
With that said, there is currently a
significant, albeit slow, trend towards
greater openness to corporate mobility.
Most private sector jobs in the region
are currently performed by foreign
nationals, and a sizeable majority of
many countries’ resident populations
consist of expats. While the trend is
toward modernisation and liberalisation
of immigration laws, the Middle East
still presents unique challenges for
international companies and their
foreign national employees.
Current Crisis Involving Qatar
Any overview of the current business
climate and corporate mobility in the
region would be incomplete without
mention of the ongoing diplomatic and
trade boycott by 16 nations against the
nation of Qatar which began in early
June 2017. At the time of writing, the list
of nations who have severed diplomatic
ties with Qatar and/or imposed a
combination of trade, immigration,
and land, sea and air transportation
and shipping restrictions has grown
to include: Saudi Arabia, United Arab
Emirates, Bahrain, Egypt, Yemen, Libya,
Maldives, Mauritius, Chad, Senegal,
Niger, Gabon, Jordan, Comoros,
Djibouti, and Mauritania. Many of the
nations have withdrawn their diplomatic
missions from Qatar, with Qatar doing
the same in response. Some have further
canceled visas and residence permits
for and denied Qatar citizens entry to
their countries and have banned their
citizens from traveling to Qatar. To date,
Qatar has chosen not to reciprocate and
permits entry to foreign nationals of the
boycotting countries. In addition, many
of the boycotting nations have erected
trade barriers, closed airports to flights
of state-owned Qatar Airways and other
flights arriving from Qatar, and banned
vessels under the Qatari flag from their
seaports.
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