While the Middle East turns into a more attractive destination for FDI, comprehending the investment risks is increasingly important.

Focusing on adjusting to local culture is essential not sufficient for successful integration. Integration is a loosely defined concept involving several things, such as for example appreciating regional values, understanding decision-making styles beyond a limited transactional business viewpoint, and looking at societal norms that influence company practices. In GCC countries, effective business relationships tend to be more than just transactional interactions. What impacts employee motivation and job satisfaction differ significantly across countries. Thus, to truly integrate your business in the Middle East a couple of things are essential. Firstly, a business mind-set change in risk management beyond monetary risk management tools, as consultants and lawyers such as Salem Al Kait and Ammar Haykal in Ras Al Khaimah would probably recommend. Next, methods which can be effectively implemented on the ground to translate the new approach into practice.

Recent studies on risks linked to foreign direct investments in the MENA region offer fresh insights, attempting to bridge the gap in empirical knowledge regarding the risk perceptions and management strategies of Western multinational corporations active extensively in the area. For example, a study involving several major international businesses within the GCC countries unveiled some fascinating data. It suggested that the risks related to foreign investments are even more complicated than simply political or exchange price risks. Cultural risks are perceived as more crucial than political, financial, or economic dangers in accordance with survey data . Additionally, the research unearthed that while elements of Arab culture strongly influence the business environment, many foreign companies struggle to adapt to regional traditions and routines. This trouble in adapting constitutes a risk dimension that requires further investigation and a big change in exactly how multinational corporations run in the region.

Although political instability generally seems to take over news coverage on the Middle East, in recent times, the region—and specially the Arabian Gulf—has seen a stable boost in foreign direct investment (FDI). The Middle East and Arab Gulf markets are becoming increasingly appealing for FDI. Nonetheless, the present research on how multinational corporations perceive area specific risks is scarce and usually does not have depth, a fact solicitors and danger experts like Louise Flanagan in Ras Al Khaimah would likely be aware of. Studies on dangers related to FDI in the region have a tendency to overstate and mostly focus on political dangers, such as government instability or policy modifications which could affect investments. But lately research has started to shed a light on a a crucial yet often overlooked aspect, namely the consequences of cultural facets in the sustainability of foreign investments in the Arab Gulf. Indeed, a number of studies reveal that numerous businesses and their management teams somewhat brush aside the impact of cultural differences, mainly due to too little knowledge of these social factors.