In the 20 years since the British Business Group (BBG), Dubai and  Northern Emirates, opened up to encourage the development of British business in the UAE, it has witnessed a phenomenal growth that would be the envy of any similar business group operating in the Gulf.

“Since its inception, the BBG has undergone huge growth and now has around 900 members representing nearly 600 companies. The membership represents the full spectrum of market sectors with around 13 per cent in sectors related to the construction industry,” says Nick Dutt, chairman and CEO of the BBG, in an exclusive interview with Gulf Construction.
Now with the Gulf’s expanding economy, together with the construction boom, the outlook for more UK companies entering the region is even more promising.
According to Dutt, the UK Trade and Investment (UKTI), the UK government’s international business development organisation, estimates that UK exports to the Middle East region were worth more than £10 billion (approximately $19.9 billion) in 2006 with exports to Bahrain and Qatar up by 45 and nearly 35 per cent respectively.
In addition, the UK now exports more products and services to Saudi Arabia than the whole of Latin America. The UAE is the UK’s largest export market in the region and the ninth largest worldwide, according to UK Government figures for 2005. UK exports to the UAE totalled £5.57 billion in 2005, an increase of more than 100 per cent on the previous year.
Exports to Dubai alone accounted for 85 per cent of the overall figure, recording a rise of 135 per cent compared with 2004. It should be noted, however, that these figures do not include invisible exports such as revenues from the service, finance and tourism sectors, which are also very significant.
This increasingly strong commercial relationship between the UK and the UAE led to the announcement by the British Government last year that the UAE has been identified as one of its 10 key ‘emerging markets’ where the UK is keen to deepen trade and investment relations.
 While there is no official link between the BBG and the British Embassy, they do work very closely with each other, helping smooth the way for British firms coming into the UAE and pitching camp here.
At the end of the day, the main remit of the BBG is to develop British-UAE links. But how exactly does it go about promoting the UAE as a destination for UK construction firms and other businesses?
“The BBG exists under the auspices of the Dubai Chamber of Commerce and Industry to encourage development of British business in Dubai and improve links between the UK and the UAE,” says Dutt.
“Our activities include arranging regular networking and other events for our members, sharing best business practice, communicating with key decision-makers and the testing of British products and services about to be introduced into the market. We hold regular Special Interest Group meetings for specific industry sectors, including construction, which provide a forum for members with a common interest.
“We also advise British companies thinking of setting up in the region on the various requirements and help them to get more information about the opportunities within their markets.
“The way we attract members is not specific to the industry they are in. Mainly, we get ourselves known through the Chamber of Commerce in the UK and through various trade missions that come out as well as through advertising. What we try to do is encourage people looking to come out to the region to join as overseas members initially, so they gain access to the network, can talk to people in the industry, and can understand what it’s about. Then once they come in, they become full members.  Hopefully, by businesses coming to us first before entering the market, we can explain the benefits and opportunities as well as the potential pitfalls. For example, you cannot operate in this region remotely. You have to be here and be seen to be here, to give confidence that you are committed to the market,” he points out.
The BBG has come a long way in the last 20 years and is now widely recognised as one of the largest and most active business groups in the Gulf.
“However,” says Dutt, “there is a strong feeling that we can further enhance the group’s effectiveness and profile by becoming even more dynamic, business-like and forward-thinking.”
For this reason the BBG has introduced a raft of new activities and reforms this year.
 “We are delivering a wider variety of top-quality events and high-profile speakers and have also improved the way we communicate with the public and its members,” says Dutt. “Our research into the changing demographics of Dubai also showed that the growth in BBG membership over the past few years had not kept pace with the sharp rise in the number of new Britons registered, with the UAE now home to more than 120,000 British citizens. As a result, the BBG has simplified and widened its membership categories to encompass the entire spectrum of the British business community in Dubai and the Northern Emirates, including non-profit organisations and individuals who, although they are working Brits, are not working for a British company. By implementing these changes I would like to see a dramatic growth in membership to around 1,000 to 1,500 in the next 18 months,” he adds.
 No one will dispute the fact that a large number of top-quality British companies have now firmly entrenched themselves in the construction sector here and are also committed for the long haul.
According to Dutt, “British companies have historically been involved in a broad range of industry sectors in the Emirates, including, of course, the construction industry. British business sees itself as having played a major role in helping to develop the country and its infrastructure to where it is today, a truly dynamic and inspiring place.
 “The enormous amount of projects either in progress or in the pipeline to extend and enhance the country’s infrastructure continue to present a huge number of opportunities for British companies and professionals in the construction sector as well as in other areas such as aviation, facilities management, hospitality services and so on,” he points out.
As the country continues to diversify, “you will see an increasing number of participants from other sectors coming in, such as education, hi-tech industries and financial services. This is reflected by the increasing diversification of BBG membership over recent years. A number of years ago, most of the membership was made up of senior managers of large multinationals. While they still play an active part, now the majority are from SMEs, (small and medium enterprises),” says Dutt.
 “However,” he adds, “the growth of these new sectors will, in turn, continue to drive the construction industry because as they expand they will require more facilities.  When you think what they are building in Dubai, the Dubai World Central and Dubailand for example, the construction industry here has a good short to medium term future.
But are companies in the UK fully aware of the construction boom and the opportunities that exist because of it in Dubai, Abu Dhabi and the other emirates?
 “Dubai has marketed itself very well and construction companies in the UK are becoming increasingly aware of the UAE and of Dubai in particular,” says Dutt. “I think people realise it is a place for opportunity due to the amount of publicity in the British media in recent years.”
Has the BBG undertaken any initiative to spread awareness in the UK of the other major construction developments now under way in Abu Dhabi, Ajman, Ras Al Khaimah, Sharjah and Fujairah?
 “Our activities don’t specifically focus on any particular industry sector. We raise awareness generally regarding opportunities here, in conjunction with the commercial section of the British Embassy, among visiting trade missions and through the various Chambers of Commerce in the UK,” says Dutt.
But are most UK construction/architectural and other allied firms hubbing out of Dubai and what is it about Dubai that makes UK firms to set base here?
“Yes, absolutely,” says Dutt. “Previously companies in the UAE focused their activities within the country. However, now Dubai is establishing a reputation as a regional business hub. This brings opportunities for international companies to set up a regional base here and market their goods or services across the region. Dubai is seen as a good, safe business base offering a great lifestyle to company owners and employees, although it is getting more expensive.”
The BBG also organises trade events with the help of other embassies to present business opportunities in the Gulf to its members.
“We are currently working with the British Embassy in Dubai on an initiative they developed called ‘Britain in the Region’.
“We hold events that enable trade commissioners from other embassies and business forums from around the Gulf and Middle East to come to Dubai and outline the opportunities in those markets to our members that are based here. With regard to new companies coming into Dubai, we do offer support through providing opportunities for networking and general advice/introductions,” he says.
Dutt was previously posted in Bahrain. “When I first came out to this region from the UK 20 years ago,” he recalls, “Bahrain was the centre, certainly for the finance industry. The handing over of Hong Kong was looming on the horizon, banks were looking for alternative locations and Bahrain had set itself up perfectly in the Middle East. But then they started putting in too many rules, regulations and other ‘hurdles’ and at the same time Dubai made it very simple and encouraged people to come. The emirate overtook Bahrain and that has continued.
 “Now, however, I think that Bahrain has realised its mistakes of the past and through projects such as the Bahrain World Trade Centre and Bahrain Financial Harbour is trying to set in motion the sort of progress seen in Dubai. Bahrain has the advantage, as do other parts of the Gulf, of being able to observe the way that Dubai has developed and can now try to emulate that without making the mistakes that Dubai has made. Because of its success and the way it has been driven, some things in Dubai have been done in a rush, and we are seeing some of the effects of that now.
Perhaps the one main sore point with firms operating out of Dubai is the rising cost of rentals. This, he feels, could be counter-productive and could prove to be a dampener.
“Dubai’s success,” points out Dutt, “is becoming a self-fulfilling prophecy in a way — as it becomes more successful, more people and businesses want to come here. Businesses are going to look at the cost base and if it gets too high, they will decide to base themselves in other emirates or other countries and I think that’s the danger. That is probably the key because big companies can afford to come and bring senior managers here, but it’s the middle management that will be squeezed.”
 “There are still a huge number of opportunities for British companies and professionals in sectors such as construction, aviation, facilities management, hospitality services and so on,” says Dutt. “However, as the UAE continues to diversify you will see an increasing number of participants from other sectors coming in, such as education, hi-tech industries and financial services.
 “I expect that the next five years will see significant growth in the number of UK-based educational institutions setting up in the UAE. The British have historically excelled in the provision of education, which is still regarded very highly around the world and we aim to maintain this tradition. The British University in Dubai, for example, is unique in the region and a place of high achievement. The British are also heavily involved in the various areas of the financial services sector. British companies and professionals will also continue to play a major role in the development of the tourism and hospitality industry.”
But it’s not just the British that are here to capitalise on the construction boom. There are other players, but indicators are that UK firms, because of the historical links with the Gulf, have a definite competitive edge over the others.
 “These existing links,” he adds, “continue to give us a lead into local markets with British companies still enjoying a high level of trust. However, we certainly can’t afford to become too complacent and rely on this when it comes to building and maintaining our business relationships with the Emirates today and in the future.
“It is important that the British business community continues to work on developing this relationship. We still need to meet world-class price and quality standards because we are up against tough competition from, for example China, India, the US and other European countries.
“Now, more than ever, there are visits and representations made by senior figures from countries all over the world, aggressively promoting their business interests in the UAE. We must match this aggression and bring British businesses to the fore in the Emirates by highlighting the success stories and strength of our relationship but, above all, they must continue to excel on their own merits.”
This is where an organisation such as the BBG comes in, with its remit to encourage the development of British business in the UAE and build links with the local business community. The recent visits of British Prime Minister Tony Blair and Prince Charles, the Prince of Wales, to the UAE showed just how much the UK values its business and cultural ties with the Emirates.
• The BBG is the official body for provision of British Standards in Dubai and the Northern Emirates and works closely with Benma Limited, an official distributor of British Standards in the UAE. The implementation of international standards for quality, safety and reliability by the UAE’s booming construction industry will play a vital part in the country’s future economic growth.
As English is widely used as the language of business, British Standards are frequently stipulated. The British Standards Institution (BSI) was the first national standards body in the world and its reputation for integrity and independence means that standards developed by BSI have worldwide recognition.
There are currently over 20,000 British Standards covering all industry sectors including building and construction, fire safety, occupational health and safety, manufacturing and healthcare. Companies interested in finding out how to obtain British Standards should contact the BBG office or visit the website at www.britbiz-uae.com.