Yesterday as I was flipping through an arabic newspaper in the University coffee shop I noticed an article that has chilled my very heart...
This article was basically probing local traders opinions about the upcoming free trade agreements in the UAE. These agreements seek to break the current system of exclusive dealerships, and allow for a more free-flowing and competitive market place that would be open to foreign investment. Nearly every single trader in the article was talking about the benefits of these agreements, and how it wouldnt have a very negative impact on the current system if you were conducting your business properly... Save one man: Fardan Al Fardan.
I have always respected his opinions, and with this comment he summed up my fears:"who will protect the national (citizen)?"... While the rest of the traders were going on and on about how the increased productivity would benefit them, none of them stopped to think about whats protecting their investments... No one.
Most of the exclusive dealerships here are held by local families, so who is going to protect them? We are already grossly outnumbered by our foreign compatriots in our own country, and losing the one leverage locals have here in the UAE, the big businesses (which are mostly bsed on foundations of exclusive dealerships), would be a staggering blow.
My point is that even in America, "the land of the free", there are limitations to what foreign investors can own. Case in point: In the early 90's Prince Waleed Bin Talal, an investor in many companies in the US, was not allowed to maintain a 15% stake in Citibank, even though his investment was saving Citibank, a banking giant, from bankruptcy!
Where are those limitations here? Why arent they in place?
All I know is that when the American billionares decimate the businesses here, my reaction would be to close my eyes in sadness... And wonder why the ministers hadnt read my blog.
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A thought process
5 comments:
I've been thinking about that lately.. My friends and I are thinking about opening up a new business, and it just seems that no matter how big we make it and how much money we put into it, it won't be big enough..
The country is going crazy with all of these foreign investments, which is good in a way, for the GDP and standart of living, but it just seems that the country is losing it's nationality and purity..
I am worreid to death about what the situation of new businesses and how the National Entrepreneurs would succeed in such an aggressive business environment..
God Help Us!!
Isn't the point that the free trade agreements would allow other national families to start their own businesses and stop the monopoly of one 'favoured' family controlling one product line, encouraging better competition and therefore better services and pricing for consumers?
Is the 51% ownership rule going away? I severly doubt the govt here would do anything to harm UAE Nationals, but introducing a bit of competitiona and fairness into the market can only be a good thing.
Damn straight rory,,,
Redstar, allowing national families to start their own companies is all well and good, but my fears lie in the foreign aspect that will be introduced. We are a minority, but a powerful one since we control the nations heavy-hitters, but what if that all went away?
What if foreigners owned the country? What would happen to us?
My point is that we should be placing specific measures in place to protect locals ...
(In addition,they should be making themselves perfectly clear in terms of what they are doing in this respect)
I think not enough credit is being given to successful UAE businessmen if one thinks that all local businesses will collapse the moment foreign investment comes in.
I think some of the local businessmen are as good as any around the world.
While foreign investment may be huge in amounts when it comes, local knowledge and understanding will remain with the local people.
Steps could be put in place to aim at joint ventures so both sides benefit. This would be more realistic than hoping to remain a country closed to globalisation.
I think Arabs of this region have been and will Insha Allah continue to be good traders - UAE was trading across continents long before intercontinental planes were even invented.
So brace up and say to yourself: "We will take up the challenges. We will rise to meet them."
I hope all goes well, and happens with wisdom and for the best of all those who live here, locals as well as expats.
Here Here!
I am against Free Trade and capitalism .. but doesn't mean i like the system in place .. but no american capitalist oil fiends here
please its enough .. they get paid more for the same job as is!
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