In: Economics
The young population of the Gulf region will have an impact on the future regional business environment. Young people should fuel demand for food, accommodation, schooling, IT and communication products. On the other hand, the demand to find jobs will rise as the number of entrants to the local workforce is rising. The legal frameworks of several Gulf jurisdictions are not as well established as those of Western economies, so avoiding litigation is critical for business success. Take careful due diligence on potential partners to avoid litigation and use all available means of non-legal dispute settlement, such as mediation and arbitration.
The business laws of Yemen are well established, covering the security of intellectual property and competition policy, and treating both Yemeni and foreign assets equally. Arbitration is also permissible, and the parties can agree to arbitrate outside Yemen if one party is non-Yemeni. Yemeni courts, however, need further progress to fully support the modern commercial laws of Yemen. Commercial law in Bahrain is generally well developed and respected. The courts are an important, although time-consuming, form of dispute resolution. Bahrain has an arbitration system built with two commercial arbitration centres, one of which is the GCC States Centre for Arbitration.
Foreign businesses are often charged indirectly by higher energy and health care charges and through a variety of other fees. For example, according to BDO Hospitality consultants, a management consultancy based in Dubai, governments are increasingly using commercial licenses, residency visas, and indirect taxation work permits. However, Abu Dhabi has recently raised 80 per cent service rates for expatriates, although only to recover costs. The pattern is likely to continue and spread to local citizens before tax bases are extended.