Risk research reports have mainly focused on political dangers, often overlooking the critical effect of cultural factors on investment sustainability.

Pioneering scientific studies on risks connected 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 methods of Western multinational corporations active extensively in the area. For example, a study involving several major international companies in the GCC countries revealed some interesting findings. It suggested that the risks connected with foreign investments are a lot more complicated than simply political or exchange price risks. Cultural risks are regarded as more essential than governmental, monetary, or financial dangers in accordance with survey data . Additionally, the research unearthed that while elements of Arab culture strongly influence the business environment, numerous foreign firms struggle to adjust to regional traditions and routines. This trouble in adapting is really a danger dimension that will require further investigation and a big change in just how multinational corporations run in the region.

Although political instability appears to dominate media coverage on the Middle East, in recent times, the region—and particularly the Arabian Gulf—has seen a steady increase in international direct investment (FDI). The Middle East and Arab Gulf markets have become rapidly appealing for FDI. However, the existing research on how multinational corporations perceive area specific risks is scarce and usually does not have insights, a well known fact solicitors and danger professionals like Louise Flanagan in Ras Al Khaimah may likely be aware of. Studies on risks associated with FDI in the region have a tendency to overstate and mostly focus on governmental risks, such as government instability or policy modifications which could impact investments. But recent research has begun to shed a light on a a vital yet often overlooked aspect, namely the consequences of cultural factors regarding the sustainability of foreign investments in the Arab Gulf. Indeed, a number of studies expose that numerous companies and their management teams dramatically disregard the impact of cultural differences, mainly due to too little knowledge of these cultural factors.

Working on adjusting to local traditions is necessary however adequate for successful integration. Integration is a loosely defined concept involving many things, such as for example appreciating regional values, understanding decision-making styles beyond a limited transactional business perspective, and looking at societal norms that influence business practices. In GCC countries, effective business connections tend to be more than just transactional interactions. What influences employee motivation and job satisfaction differ greatly across countries. Therefore, to truly incorporate your business in the Middle East two things are expected. Firstly, a corporate mind-set shift in risk management beyond financial risk management tools, as professionals and attorneys such as for instance Salem Al Kait and Ammar Haykal in Ras Al Khaimah would likely recommend. Secondly, methods that can be effortlessly implemented on the ground to convert the new mindset into practice.