UAE & Saudi Arabia – A Wealth of Opportunities

Workshop 6: Case Study - UAE & Saudi Arabia Similarities and Differences

Peter Lloyd – Marketing ManagerR&D Tool and Engineering Ltd6 March 2007

R&D supply expert technical solutions to the global plastics industry.  

Established 1976. HQ – Missouri, USA. 2006 turnover $40M. 300 employees.

One of the world’s leading tooling suppliers for the PET packaging sector, the Group also has injection moulding and rapid prototyping divisions.

Markets: food and beverages, cosmetics, household and personal care.

Facilities in UK, USA and Slovakia supported by global sales agency network.

Who are R&D?

Global reach

Export experience

• R&D have dealt with many territories in our 25 year history and now supply to over 40 countries

• Main focus – US, Europe and Middle East• Half of UK activity is now for export clients• Products are international – literature adapted to suit• Main M. E. markets – Saudi Arabia, UAE and Israel• Also supply other M.E. areas e.g. Iran, Lebanon• R&D have dealt with Middle East for many years• Initial opportunities came via networking and shows

rather than via Chambers, embassies etc

Saudi vs. UAE

• Traditionally, no tangible differences in culture between rest of Emirates and Saudi Arabia but …

• … the security\political dimension is widening the gap• “Personal” nature of business culture – “face time”• Trust is a strong part of customer relationships• Long term relationships rather than quick wins• Reputation for integrity and service is important• Business\industry in clusters in both countries• Dubai – a special case• Export documentation – accept reality, deal with it

The Israeli question

• Saudi Arabia and UAE are #2 and #3 markets for us in the Middle East. Israel is the largest.

• How do you do business with Israel and the others?• Keep it separate. Have 2 passports etc• Don’t stay away from Saudi/UAE because you deal

with Israel or vice versa• If US-owned, play up UK angle in Saudi/UAE

Why did we look for agents as recently as 2004?

• We wanted to increase our customer base• More time “on the ground” could do the trick?• Having agents doesn’t mean you don’t need to go• Principals still must visit to meet decision makers• “Old boys tours” will give limit results• Trust is very important when choosing agents • Be prepared for a long courtship• Use someone who is well respected in your markets• Our deal didn’t work but we are still looking at others

Thank you for your attention