For the last few months, I’ve been focused on editing a 10-story package for Forbes Asia exploring trade ties between Gulf and Asian companies written by the magazine’s contributors all over the Asian continent. We’ve covered a lot of ground, from Taiwan to Saudi, from Singapore to Oman. Please see below for a full listing of our coverage.
Karl Shmavonian, Forbes Staff
It’s debatable whether the historical metaphor is the Silk Route or Spice Route, but neither still matters literally, so we’ll say that Arabia-Asia is a commercial and financial link that is ever more important in the world economy.
In this special section, to correspond with the first Forbes Global CEO Conference in the Middle East (being held in Dubai), we take a look at parts of this expanding trade. We do so in the FORBES ASIA way, through profiles of several significant business personalities and the firms they founded.
The package was nimbly edited by Angela Shah, a writer and editor based in Dubai. Her work has also appeared in The New York Times, Time, and Newsweek/Daily Beast. For more about Angela, see www.angelashah.com.
Personalities play a big part in our coverage. Few people have as much boots-on-the-ground experience in both regions as does David Eldon, former chairman of HSBC Asia-Pacific. Since retiring from the bank in 2005, he has served as chairman of the Dubai International Financial Centre Authority. In our interview with him he discusses a variety of issues and affirms that “trade links are trending east and south, away from the West.”
Another dealmaker in the region is Pakistani Omar Lodhi, of Dubai’s Abraaj Capital. He opened the firm’s Singapore office two years ago and is leading Abraaj’s push into Asia, particularly the ASEAN countries, whose population and GDP offer plenty of opportunity: “These regional Asian economies are akin to Europe.”
Growth in the region isn’t just about finance–even the most ambitious high-rollers take a break for dumplings and spring rolls after a long day of puts and calls. Lin Chao Wen, founder of Gulf Royal Chinese Restaurant chain, started out as a failed serial entrepreneur in Taiwan in the 1970s before he eventually ended up in Saudi Arabia, bringing Chinese food to the masses. In the process he immersed himself in Arab culture, eventually converting to Islam and building himself a lavish home in Taiwan that resembles an Arabian palace.
Just as Lin could never have known as a young man in Taiwan that he would end up in Saudi Arabia, P.N.C. Menon, founder of Sobha Developers, could never have predicted while growing up in a small Kerala village in India that he would end up being a big player in Gulf-region real estate. Says the man who appeared on the FORBES Billionaires List in 2006: “It came from nothing. I went [to the Gulf] with $7. I must have been making a little bit of money here and there to make myself comfortable.”
Another Indian who has spent a significant part of his life in the Mideast is Shaukat Ali Mir, chief operating officer for international electromechanical projects at Mumbai’s Voltas, a Tata Group company. Voltas has been providing infrastructure (plumbing, firefighting, drainage and electrical systems) for the Mideast since 1976, and Mir came to the region in 1982. Voltas’ most prestigious, and perhaps most challenging, project was providing the electromechanical guts for Dubai’s Burj Khalifa building, the world’s tallest. Mir is globalization on two legs: “I grew up in India. I am living in the Middle East. My children live in Canada, and I plan to retire in Europe.”
Just as Voltas provides infrastructure for the rapidly expanding Gulf, Korea’s Doosan Heavy Industries & Construction is supplying power and desalination for the parched region. Doosan, which expects sales to hit $10 billion this year, is increasingly going head to head with industry leaders GE, Alstom and Siemens in building power plants in overseas markets.
No survey of Asia and the Mideast would be complete without drilling into oil production. China’s biggest oilfield pipe maker, Hilong Holding, is one of the few Chinese companies with manufacturing plants in the Middle East, its fastest-growing regional market. Hilong’s business in Saudi Arabia, its main target, is a classic example of synergy: You provide oil, I’ll provide the means to get it out of the ground–everybody makes money.
But enough about electrical systems, plumbing, turbines and dirty oil fields, what about technology and all those sleek toys that everybody wants? Vincent Lai and Andy Soh, who share a “curiosity in playing with cool stuff,” are the founders of Tocco Studios, a maker of touchscreens and software. In 2009, when Lai and Soh were students at Singapore Management University, a group of Omanis visiting the university’s business incubator wanted to learn more about the budding entrepreneurs’ screens. The Omanis were captivated, and soon Lai and Soh were doing business in the Gulf, as well as having a Singapore office.
With all the money being made these days, we would be remiss if we didn’t offer a profile of a company offering folks a way to show off their wealth. Jeweler Joy Alukkas, like our other Indians profiled, made his entry in the Mideast decades ago. He opened his first store in Abu Dhabi in 1987, offering his wares to expat Indians. Eventually he moved back to India, bringing back with him an intangible commodity: marketing and business practices accrued in the Gulf. His Joyalukkas stores had $1.33 billion in sales last year.
For slightly less upscale shopping, consumers can go to the Dragonmart mall, a mass-market oasis on the outskirts of Dubai.
Finally, we profile five companies that are learning how to navigate the cultural and business currents that join China and the Mideast. One of our snapshots is of China’s Shenguan Holdings, a maker of sausage casings that recently announced it would be offering halal meat to the Muslim world.
The Arabia-Asia economy is not on a glide path. It has famously been interrupted through the centuries but also in recent times, as global busts in commodities or real estate, or other home-market vagaries, got in the way of would-be Marco Polos. But the lure of the great crossroads and the increasing wealth they connect makes it likely that the tales here are just an inkling of many more to come.