Come 19-23 October, more than 130,000 visitors are expected to visit the Dubai International Convention and Exhibition Centre for GITEX Technology Week, the region's leading ICT show. According to market research company IDC, the total investment in IT spending by countries in the Gulf Cooperation Council (GCC) could reach US$9.1 billion this year, an increase of 15.3 per cent over 2007. GCC countries comprise Bahrain, Qatar, Kuwait, Oman, Saudi Arabia and the United Arab Emirates.
To help Singapore's infocomm Local Enterprises (iLEs) tap on these opportunities, the Infocomm Development Authority of Singapore (IDA) set up its first point of presence in the Middle East in 2007. The IDA Middle East Office (MEO) promotes infocomm solutions developed by iLEs to targeted sectors such as e-Government, education, healthcare, logistics and telecommunications.
According to Centre Director Mr Shaik Umar, MEO enjoys strong working relationships with government agencies, IT associations and local partners in the Gulf region. It provides market information to iLEs keen to venture into the Middle East market, and facilitates business matching for iLEs. It also identifies overseas projects, tradeshows or seminars to create opportunities for iLEs to meet with partners and potential customers in the Middle East. For example, at previous GITEX events, iLEs have successfully signed deals with Middle East clients at the Infocomm Singapore Pavilion organised by IDA, said Mr Umar.
To develop a successful and sustainable presence in the Middle East, there are some characteristics of the market that iLEs have to be aware of, Mr Umar continued. One of these is the relatively long business cycle compared to what they may be used to in Singapore.
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| The total investment in IT spending by GCC countries could reach US$9.1 billion this year. |
"Depending on the nature of the partnership, the sales cycle could take anytime between three to 24 months, sometimes even longer. Hence iLEs should not confine themselves with expectations based on their experiences in Singapore or other regions," he said.
It is also crucial that iLEs scope the requirements of the project carefully before pitching for it, especially with regard to the time and cost required to complete the project. This will help to manage clients' expectations while giving iLEs a better overview and control over their resource allocation, he added. "iLEs have to always check for completeness and the quality of the proposal before submission, even if it is a Request For Information document."
Demonstrating confidence and gaining trust are also key to doing business in the region. "Generally, iLEs should build up their portfolios in Singapore before they venture into the Middle East market so that they have successful case studies to showcase when they are pitching for projects. But the key factor is to be sincere and deliver what you promised," said Mr Umar.
Face-to-face meeting is also very important and most of the time, the only way to get things done. These could translate to higher business costs from out-of-pocket expenses, for example, hotel and airfares, and iLEs should set aside a budget in preparation for such expenditure, he advised. Other channels of communication, such as phone calls, emails and faxes, are best used for appointment making and status updating.
"Be culturally sensitive and adapt to local practices. Have lots of patience and build trust with clients," said Mr Umar. "However, customer loyalty is strong in the Middle East, especially after trust is established."
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Cultural tips
Mr Shaik Umar of IDA's Middle East Office provides a few cultural pointers for those venturing into the Middle East:
- Use first names along with personal or professional titles in
business, for example, Your Excellency, Sheikh or Dr, followed by
the first name.
- Avoid handshakes with the opposite gender (unless the handshakes are initiated by them) and follow the host's lead.
- Never point your fingers at your associates as this gesture is considered offensive.
- It is courtesy not to eat, drink or smoke during fasting hours in the month of Ramadan, especially during business discussions.
- Always seek permission to take photographs of others especially when there are women in the group. This is regardless of business visits or study trips.
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The IDA's Middle East Office
Key roles:
- Strengthens relations with key government agencies and trade bodies across the region.
- Facilitates trade collaboration and information exchanges between governments and businesses.
- Promotes Singapore's infocomm industry and companies.
Contact details: info@ida.gov.sg
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Infocomm Singapore @ GITEX
The Infocomm Development Authority of Singapore (IDA) will be leading a delegation of 11 Singapore infocomm companies to GITEX Technology Week 2008 in Dubai, United Arab Emirates.
Exhibiting under the Infocomm Singapore brand, the delegation comprises Clearhub, CrimsonLogic, e-Cop, Genovate, Infologic, MicroUsability, SecureAge Technology, SQL View, ST Electronic (Training & Simulation Systems), Teliwave and Transfer To. Alongside GITEX, IDA will also be hosting an Infocomm Singapore Networking Night on 20 October for invited guests from Singapore and Middle East to network and exchange pointers.
The Infocomm Singapore pavilion at GITEX is at Hall 2, Stand E2-30. Click here for more information on the Infocomm Singapore companies who will be participating in the show.