Recent research highlights the significant part that cultural differences play within the success or of foreign investments in the Arab Gulf.

Although governmental uncertainty appears to dominate news coverage on the Middle East, in recent times, the region—and specially the Arabian Gulf—has seen a stable increase in international direct investment (FDI). The Middle East and Arab Gulf markets are becoming rapidly attractive for FDI. But, the present research on how multinational corporations perceive area specific dangers is scarce and frequently lacks insights, a well known fact attorneys and risk experts like Louise Flanagan in Ras Al Khaimah may likely be familiar with. Studies on dangers related to FDI in the region tend to overstate and predominantly focus on political dangers, such as government instability or policy modifications which could affect investments. But recent research has begun to shed a light on a a critical yet often overlooked aspect, specifically the consequences of cultural factors in the sustainability of foreign investments in the Arab Gulf. Indeed, a number of studies reveal that many companies and their administration teams considerably overlook the effect of cultural differences, due primarily to deficiencies in understanding of these social variables.

Working on adjusting to regional traditions is essential yet not enough for successful integration. Integration is a loosely defined concept involving many things, such as for example appreciating local values, understanding decision-making styles beyond a restricted transactional business perspective, and looking at societal norms that influence business practices. In GCC countries, effective business affairs tend to be more than just transactional interactions. What affects employee motivation and job satisfaction vary greatly across cultures. Therefore, to genuinely incorporate your business in the Middle East a couple of things are essential. Firstly, a corporate mind-set change in risk management beyond economic risk management tools, as professionals and solicitors such as Salem Al Kait and Ammar Haykal in Ras Al Khaimah would likely suggest. Next, methods that may be effortlessly implemented on the ground to translate the new mindset into action.

Recent studies on dangers linked to foreign direct investments in the MENA region offer fresh insights, trying to bridge the gap in empirical knowledge regarding the danger perceptions and management strategies of Western multinational corporations active extensively in the region. As an example, a study involving several major worldwide businesses within the GCC countries revealed some fascinating data. It argued that the risks associated with foreign investments are much more complicated than simply political or exchange rate risks. Cultural risks are regarded as more essential than political, financial, or economic dangers in accordance with survey data . Furthermore, the study discovered that while elements of Arab culture strongly influence the business environment, numerous foreign firms struggle to adapt to local customs and routines. This difficulty in adapting constitutes a risk dimension that requires further investigation and a change in how multinational corporations run in the region.