While the Middle East turns into a more appealing location for FDI, comprehending the investment dangers is increasingly important.

Pioneering scientific studies on dangers linked to foreign direct investments in the MENA region offer fresh insights, attempting to bridge the gap in empirical knowledge regarding the risk perceptions and management techniques of Western multinational corporations active widely in the region. As an example, research project involving a few major worldwide businesses within the GCC countries unveiled some fascinating data. It suggested that the risks connected with foreign investments are far more complex than just political or exchange rate risks. Cultural risks are perceived as more important than political, financial, or economic risks according to survey data . Furthermore, the study found that while aspects of Arab culture strongly influence the business environment, numerous foreign organisations find it difficult to adjust to regional traditions and routines. This trouble in adapting constitutes a risk dimension that requires further investigation and a change in how multinational corporations run in the region.

Although political instability seems to dominate news coverage regarding the Middle East, in recent times, the region—and specially the Arabian Gulf—has seen a stable boost in foreign direct investment (FDI). The Middle East and Arab Gulf markets are becoming increasingly appealing for FDI. But, the prevailing research on what multinational corporations perceive area specific risks is scarce and often lacks insights, a well known fact attorneys and risk experts like Louise Flanagan in Ras Al Khaimah would likely be aware of. Studies on dangers related to FDI in the region tend to overstate and mostly pay attention to political risks, such as government uncertainty or policy modifications which could affect investments. But lately research has begun to illuminate a critical yet often overlooked factor, specifically the effects of social facets in the sustainability of foreign investments in the Arab Gulf. Indeed, a number of studies expose that numerous businesses and their management teams considerably undervalue the effect of cultural differences, due mainly to a lack of understanding of these social variables.

Working on adjusting to regional traditions is necessary but not enough for successful integration. Integration is a loosely defined concept involving many things, such as for instance appreciating local values, learning about decision-making styles beyond a restricted transactional business perspective, and looking at societal norms that influence business practices. In GCC countries, effective business connections are more than just transactional interactions. What shapes employee motivation and job satisfaction vary greatly across countries. Thus, to seriously integrate your business in the Middle East a few things are essential. Firstly, a business mindset shift in risk management beyond financial risk management tools, as professionals and lawyers such as for instance Salem Al Kait and Ammar Haykal in Ras Al Khaimah may likely recommend. Next, techniques which can be effectively implemented on the ground to convert the new approach into action.