Expanding Your Manufacturing Business in the Gulf Region?

A Comparative
Analysis of Economic Landscape and Industrial parks of KSA, Oman, and UAE.

As businesses contemplate expansion or aspiring entrepreneur stepping into a new venture,

selecting the right location is a critical decision that can significantly impact the success of a
venture. The middle east region, particularly KSA, UAE and Qatar etc, is a rapidly growing
market and there is a bright future ahead in the Middle East in the coming decade. Each
country has It’s on unique features that can impact the success of a business.
However, in general the VUCA (Volatility, Uncertainty, Complexity, and Ambiguity) in the global
market presents several issues and is an essential lens to see and handle them with right place
to grow is important. So, this article, crafted with the precision of Macro to Micro level
approach and provides a comprehensive guide to help you make informed decisions.

Understanding the Economic Landscape

The first step in choosing an ideal location for your business expansion is to analyze the economic
indicators of potential countries. Here, we focus on four Middle Eastern countries - UAE, Saudi Arabia,
Qatar, and Oman.

Indications UAE Saudi Arabia Qatar Oman

Starting a
Economy Ranking

business (Rank, 1 4 10 3
2020)

Ease of Doing
Business (Rank, 16 62 77 68
2020)

Paying taxes
6 7 2 4
(Rank, 2020)
 Economic
Freedom (Rank, 24 98 36 95
2023)

Free Market Mostly

Mostly unfree Moderately free Mostly unfree
(2023) free
Corruption Index
27 54 40 69
(Rank, 2023)

$509
GDP $1069 Billion $235 Billion $108 Billion
Billion
(As per 2023)
GDP

GDP Per Capita $88,962 $68,453 $ 114,210 $39,336

GDP Growth
3.4%% 0.8% 2.4% 1.2%
Rate
Geographic Segmentation (As per

Population 9.5 Million 36.9 Million 2.9 Million 4.6 Million

Density (P/Km²) 114 17 234 15

2023)

Land Area (Km²) 83,600 2,149,690 11,610 309,500

Urban
94% 83% N/A N/A
Population

Med Age 34 31 34 29

The plethora of economic indicators provided for the UAE, Saudi Arabia, Qatar, and Oman offers a rich
tapestry for businesses seeking to expand or establish themselves in the Middle East. These indicators
not only paint a vivid picture of the economic health of each country but also serve as a crucial
compass in guiding entrepreneurs and companies toward the most conducive business environment.

Infrastructure and Industrial Parks

Selecting the right industrial park is a critical decision that can significantly impact the success
and operational efficiency of a business. The provided data on industrial parks in the UAE,
Oman, and Saudi Arabia, along with key indicators, serves as a valuable guide for businesses
 aiming to establish or expand their operations. Here's how these indicators can aid in the
decision-making process:

Countries UAE Oman Saudi Arabia

Mussafah Dubai Industrial Madyn Suhar Industrial Modon Modon
Industrial Park Industrial Park City Industrial Park (Freezone) (Dammam) (Jeddah)
(Abu Dhabi) City

Rent (AED/m2) 23 31.2 9.54 33.06 212 190

Corporate Tax 9% 9% 15% (After Zero tax for up 2.5% (Zakat)

5 Years) to 25 years

Electricity (KWH) 27.8 30.5 0.17 0.26 18 18

Fil/KWH

Water (G) 7.84 4 0.3 0.044 0.014 0.015

Worker’s 3,000 2,566 2,650

Monthly Salary

The indicators provided for industrial parks in the UAE, Oman, and Saudi Arabia empower businesses
to make informed decisions based on a combination of cost factors and strategic advantages. By
carefully analyzing rent, corporate tax rates, and utility costs, businesses can identify the industrial
park that best aligns with their operational needs, financial goals, and long-term growth strategies. This
meticulous evaluation sets the stage for successful and sustainable operations in the chosen location.
Strategic Recommendations for Entrepreneurs

• UAE - The Business Hub: Opt for the UAE if you seek a dynamic market, high economic freedom,
and a well-established industrial infrastructure.
• Saudi Arabia - The Economic Giant: Choose Saudi Arabia for its massive economy, even though
it poses some challenges in terms of ease of doing business.
• Qatar - The Emerging Player: Ideal for those looking at a rapidly growing market and a strong
focus on reducing corruption.
• Oman - The Up-and-Comer: A strategic choice for starting a business and benefiting from
favorable tax policies.
Conclusion
In the pursuit of global expansion, understanding the intricacies of potential markets is paramount. By
delving into economic indicators, demographic data, and industrial infrastructure, businesses can make
well-informed decisions. Whether you're a seasoned company or an aspiring entrepreneur, choosing
the right location is the key to unlocking growth.
Crafting a detailed market research and business plan based on these insights will further solidify your
venture's success. As the business world evolves, strategic decisions today pave the way for tomorrow's
triumphs. Choose wisely, and let your business flourish in the chosen soil of opportunity.
If you are interested in viewing some of sample projects where we cover 360 vertical of your business,
we invite you to explore the comprehensive market research, feasibility study, and business planning
solutions that we offer.
Feel free to connect with us at shabeeh.a@almaconsulting.group to discuss how our expertise can assist
you in making informed decisions and crafting a successful business strategy.

Reference

https://archive.doingbusiness.org/en/rankings?region=middle-east-and-north-africa
https://www.transparency.org/en/cpi/2022
https://tradingeconomics.com/country-list/corruption-index
https://www.heritage.org/index/ranking
https://www.worldometers.info/world-population/
https://en.wikipedia.org/wiki/List_of_countries_by_real_GDP_growth_rate
https://en.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP)_per_capita
https://statisticstimes.com/economy/projected-world-gdp-ranking.php