Why Scotland cannot afford to turn its back on all this Middle

The Gulf holds real warmth towards Scots and all things Scottish. So why are our firms failing to cash in, asks John Wright Brian Wilson summed it up succinctly in a recent interview with the Middle East Economic Digest. The former Minister of State at the Department of Trade and Industry, said: "We have neglected the Middle East in recent years, there is an older generation of companies that have done good business, but the new economy has not yet made the connection and maybe finds the Middle East a more daunting region to approach."

In the same article, Scottish Trade International's senior executive Abdul Hadi Fawzi said that "STI has looked at the Middle East as a growth area, Scotland has strong historical links with the Gulf in terms of education, healthcare and industry, but the whole area is important for us."

Wilson's remarks are spot on. This goes back a number of years - if one were writing a report card for Scottish business you would put a big tick in the "could do better" box.

From a banking perspective, I have now been doing business in the Middle East for over 20 years and it's fair to say that I have been consistently disappointed with the lack of energy and focus that Scotland has brought to bear on the region. I spent nine years resident in the region running two banks, one in Oman, Oman International Bank and the other in Kuwait, the Gulf Bank. During my time running the Northern Bank in Belfast I was also actively involved in working NIMEX, Northern Ireland Middle East Exporters, a trade advisory group set up by Northern Ireland Development Board. This provided an excellent focus for business people seeking to work in the Middle East and vice versa. This focus is, I am afraid, sadly lacking in Scotland.

There is tremendous warmth that exists towards Scots people and things Scottish in the Gulf. There is a latent pool of goodwill which has scarcely been tapped over the years. There are notable exceptions, especially among academics and medical faculties. There are even some Scottish Chartered Accountants! But Scotland has failed to capitalise on such ad hoc visits and to link them in to an overall long-lasting strategy.

During my time in the Gulf I rarely encountered Scottish businesspeople coming to seek my advice and I know that other Scottish colleagues running banks in the area had a similar experience. There is a powerful network of Scottish-born businesspeople in most of the countries of the region who would be pleased to be organised formally to support a Scotland drive for business in the area.

There is no doubt that our strategy has been focused only on exports. What we must try to create is a "Scotland Inc", where we can deliver a total approach involving imports and exports, bi-lateral movement of investment and a larger focus on services.

The banks were the prime movers behind the tremendous growth in the area over the last century, and indeed banks such as CitiBank, Bank of America, American Express, the Dutch Banks, French banks and the Germans have been prominent in the area.

THE Scottish banks have been notable by their absence. They have been inwardly-focused and have not aggressively sought to expand their horizons outside the UK until recently.

Yet we have seen the development of innovative direct banking led by the Bank of Scotland. These competencies are scarce and the technology that has grown up around them is world-class. There is definitely the opportunity to transfer this kind of competency to the Gulf region.

Individuals have to perceive the opportunities, get on planes, go and build the relationships. The Trade Mission programmes run by STI and other bodies are an excellent vehicle for entry. So it was extremely disappointing that when we tried under the auspices of Scottish Financial Enterprise to put together a financial services mission last autumn, there were only three takers!

Another major disappointment was the abortive attempt made by the Middle East Economic Digest, a premier business regional journal, to stage a conference in Edinburgh this month under the sponsorship of HSBC. This conference was cancelled through lack of support. It really is rather depressing.

It is important to create local structures which will work with Department of Trade and Industry to raise the profile and to facilitate contact and business with the region. The Arab British Chamber of Commerce in London is looking closely at Scotland and may well be a catalyst for a tighter focus.

It's imperative that we pull together all strands that build up to the creation of a business value proposition for the Middle East as there is much work to be done. This needs focus, branding and an understanding that it is a "total Scotland" proposition, not an Edinburgh/Glasgow, nor an import versus export proposition.

John Wright is a director of the Clydesdale Bank and Yorkshire Bank, part of the National Australia Bank

Copyright 2001
Provided by ProQuest Information and Learning Company. All rights Reserved.