Since the transatlantic declaration in 1990, American and European enjoy a strong relationship with an active cooperation in several sectors as Justice, Energy, Environment, Science or Education. They represent the largest bilateral trade and investment relationship in the world with roughly 40% of the world trade and over 60% of the world GDP1. Opposite to them, China, a 1.3 billion people country with labor resources, more educated people launched into the international competition. Those three huge countries understood that a new market emerged: the Arab market. With 25 countries and more than 325 million people, the Arab market proposes new ways to make business. When the world economic powers confront on the Arab market, the question arises about the value added of this approach. It is easy to understand that Arab market is a strategically place to invest.
Thus, the ambition of this paper is to analyze the European / American competition with China in the Arab market.
The first part will be devoted to understand the introduction of greater competition in the Arab market with a selection of sectors: banking and telecom sectors. The second part will be focused on that how the Arab market is running? How do the Arab culture, values, policy and religion influence the trade?
Sommaire de l'étude de cas
I. Powerful countries competition introduction in the Arab market
A. Europe / USA vs. China: the same goal in Arab market?
B. The black gold rush: top investment centers
C. Tertiary sector competition: services Eldorado
II. Arab markets face hypercompetitive global power
A. Investment policies limits
B. Cultural and religious interferences
C. Financial crisis impact on competition in Arab market
Extraits de l'étude de cas
[...] However in some occasion the traditional culture and value will limit the development and cooperation. Like there is one factor restricts the trade cooperation between China and Arab that China government worries about the Islam thoughts could bring negative effective to the Islam population in the North-west of China. And whatever Arab or China considered a lot of this factor, so that the investment and trade cooperation will be influenced. In the view of China decision makers, the religion has the characteristics: Religion always links to the national problem. [...]
[...] Whereas the cultural exchange and influences on the principles of trade. Today's Arab world is a various society with different races, languages and customs; however the Islam and Arabic are the main culture phenomena. Since the different history backgrounds, there are lots of differences between Middle-east counties, as well as the difference of economic models, like Iran Islam development model, Egypt nationalism development model and so on. But there is one common model, which is emphasizing the characteristic of Islam, if without the power of Islam, it is difficult to promote and implement any economic reformations. [...]
[...] China recognizes that its energy security is increasingly dependent on cooperation with the U.S., rather than competition with it. China would like to maintain good relations with the U.S. and enjoy the economic benefits derived from such cooperation. But this inclination is balanced by the feeling among many Chinese leaders that the U.S. seeks to dominate the Persian Gulf in order to exercise control over its energy resources and that it tries to contain China's aspirations in the region. The U.S. is therefore considered a major threat to China's long-term energy security. [...]
[...] Middle East markets have opened; and western companies gain a slice of the rapidly growing Arab sector. Vodafone which is English telecommunication firm has a large presence in the Middle East, owning around 55% of Vodafone Egypt, which is the largest mobile operator in the country, and the Vodafone brand is used in Bahrain and Kuwait via a partnership with Zain. The company also has recently bid for a license in Qatar. Another European company is France Telecom which owns 71% shareholder in Egypt's Mobinil and the majority shareholder is Jordan Telecom. [...]
[...] What makes the importance this region? What are the advantages of Middle East and what the companies should concern when making investment there? Primarily reasons are laid to invest for the quality goods, import standards and requirements. Also, this region is one of the fastest growing and developing economies of the world (FIGURE 1)2. Arab market allows fluid investment thanks to good infrastructures and free taxes. Licenses legalization and property rights are another positive factor. Also what is potential of this region? [...]
À propos de l'auteur
Nelly M.EtudidanteMarchés étrangersThe arab - western cultural relations