Location advice

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Old Jul 20th 2006, 8:06 am
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Default Location advice

Hello,

I am a business student currently working on a Masters thesis and could need some help.

My case is about setting up a sales office in the Middle East, -where and how. It is a medium sized Norwegian company in the petroleum industry. Their clients are drilling contractors, and they are planning to set up one sales office to serve the whole region. We have shortlisted Dubai, Doha and Abu Dhabi as potential locations.

I am interested in learning some basics that I can work on for my thesis. How does the three cities differ in terms of business environment, sponsor requirements, expat living conditions, cost of rent (houses/offices) etc.
Which city would you recommend, and why? Is it best to be located in a free zone like Jebel Ali, or is that more for industry and production facilities?

Any feedback would be highly appreciated.
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Old Jul 20th 2006, 9:56 am
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Default Re: Location advice

Interesting question but unfortunately I'm not sure about the answer!

You could look at the possibility of a free zone such as the one in Ras Al Khaimah to save money over Jebel Ali FZ- especially if you don't need to face-to-face with the client and the product. If you do, you'd be better off in abu Dhabi as that is where the oil is. Otherwise you could think about Kish island in Iran.

it would have been much more interesting if you were exploring the possibilities of a blow up doll shop in the Vatican or a pig farm in Saudi.
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Old Jul 20th 2006, 3:52 pm
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Default Re: Location advice

Not sure of the answer but I can tell you that Dubai is now one of the most expensive places to do business in the region now, and that most new companies look elsewhere due to the high start-up costs.

http://archive.gulfnews.com/articles.../10052287.html

Just recently Dubai lost out to Bahrain to be the location of a reasonably large multi-national production facility (Kraft), with cost one of the major factors.

http://archive.gulfnews.com/articles.../10053369.html

And of course - the UAE may soon lose some of its attractiveness, if it implements this IMF recommendation.

http://archive.gulfnews.com/articles.../10053089.html
 
Old Jul 20th 2006, 6:39 pm
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Default Re: Location advice

Originally Posted by Olav
Hello,

I am a business student currently working on a Masters thesis and could need some help.

My case is about setting up a sales office in the Middle East, -where and how. It is a medium sized Norwegian company in the petroleum industry. Their clients are drilling contractors, and they are planning to set up one sales office to serve the whole region. We have shortlisted Dubai, Doha and Abu Dhabi as potential locations.

I am interested in learning some basics that I can work on for my thesis. How does the three cities differ in terms of business environment, sponsor requirements, expat living conditions, cost of rent (houses/offices) etc.
Which city would you recommend, and why? Is it best to be located in a free zone like Jebel Ali, or is that more for industry and production facilities?

Any feedback would be highly appreciated.

I'm not sure on how you evaluated countries in the region, but would have thought Bahrain would be on the shortlist. Regular and cheap flights to UAE/GCC, short drive to Saudi. Abu Dhabi/Dubai - would have thought one or the other would suffice.

Rent is low, can drink/eat bacon sandwiches, traffic is not as bad, overall pretty good expat lifesyle.

Unfortunately it doesn't yet have the deal-breaker....an indoor ski slope.

Couldn't comment on Doha, never been there yet.
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