JEDDAH: A great majority of businesses in the Gulf are planning turnover growth over the next two years, with growth expectations averaging 15 percent per annum, the ICAEW Global Enterprise Survey 2010 showed. The report said 84 percent expressed optimism and around two-thirds are planning growth of six per cent or more a year. More than 40 percent are planning growth of 11 percent or more, significantly higher than in globally-engaged businesses in the UK and businesses in other EU countries, the survey noted. Businesses in the Gulf are more likely than their counterparts in other regions to nominate Africa as a target for international expansion (34 percent compared with less than 10 percent of businesses in other regions). Amanda Line, regional director, ICAEW Middle East, said: “The Gulf is typically seen as a gateway both to Africa and Asia because of its geographical position. No other region surveyed plans to focus as much on Africa, as the Gulf countries. However, while businesses see opportunities, they also face hurdles.” Around a third are also interested in the emerging countries of Asia-Pacific, especially China (19 percent). India is also a target for an equal number (19 percent). “Successful expansion into other markets requires knowledge of key issues as well as cultural ‘rules' in these markets. It is critical to do your homework,” she added. The vast majority of Gulf's businesses are also among the most positive globally about the impact of increased globalization, it added. Seventy percent of the region's businesses have plans to expand into or increase their market share in other countries in the next couple of years, with adapting their products or offering higher value-added products or services being key strategies. Of those planning to boost foothold outside their home country, more than half (53 percent) plan to increase share or expand to other countries in the Gulf and Middle East, in particular, Saudi Arabia (23 percent). likely to say that their competitiveness had been adversely affected by changes in access to finance over the past year, with around half (51 percent) reporting this. Access to finance has been a particular challenge for Gulf businesses in the past year, with around a quarter of businesses stating that changes in interest rates, raw material costs and exchange rate moves have also had a negative impact on the business' competitiveness. “Success is also likely to hinge on your business' ability to access finance. You might have to raise cash in your home market. While businesses expect that to become easier, it is key to keep your house in order, be transparent and provide as much and high-quality financial information as possible, whether your capital comes from capital markets, banks or other financiers,” Line further said. Moreover, the survey said about one in four (26 percent) of respondents believe that future anticipated changes in access to finance will have a positive impact on their business over the coming year compared with businesses in most other regions. Gulf respondents were of differing views on other factors impacting on their business' competitiveness. Some have benefited from changes in energy costs, others have not, the survey noted.
