It’s been interesting to hear the different stories generated by the rumor mill, and read them in various newspapers regarding the situation in the Middle East. How much financial trouble is Dubai in? Is Abu Dhabi bailing them out? Are Emirates and Etihad merging? Are Emaar and Aldar in talks? The speculation will go on and while there are many people who will continue the conjecture for the sake of a good story, the truth is, nobody knows how deep this global financial hole is.
The silver lining is that in the Gulf, there exists strong leadership, underpinned by true visionaries who have worked tirelessly to build profitable economies over the past few years. Arabs have closed the knowledge gap. They’ve imported business and creative experts. They’ve combed foreign shores and their own for the best of the best to put their heads together and lay down defining blueprints for sustainable business models. So while it’s inevitable that even oil-rich markets will be affected on the back of fluctuating oil prices, we mustn’t forget that the Middle Eastern markets are healthy economies in their own right, once the dust settles.
The question is what we do when we’ve hit rock bottom. While it’s important to know where rock bottom is, the smartest economists and the most intelligent financial experts will all give you a different theory. The reality is we’re rolling with the punches as the situation continues to unfold. As financial indicators are released from different corporates, world leaders are coming under immense pressure, and are moving the goal-posts accordingly and pulling out all the stops to minimize the damage.
While there might be a short term rocky period in Dubai, Bahrain, Qatar and even Saudi Arabia, what needs to be kept front of mind from a media, commercial and political perspective, is that this is a phase. History repeats itself. We’re going through a cycle. The Gulf has experienced exponential, rapid growth over the past 10 to 15 years, leaving the region well positioned to emerge strong on the back of this global market downturn.
What can we expect from commercial businesses during the ‘bounce-back’ period? Conservative spending, smaller budgets, pull-back on projects, fewer clients, less big-money deals. That doesn’t mean that we should all switch off the lights and go home. Over the next 12 months, companies need to become more focused on their messaging, banks need to instill consumer confidence, FMCGS must understand and adapt to the market needs, and aggressively remind consumers that there’s still a deal to be had.
As media consumption evolves, brands are looking for platforms that can provide a turn-key solution – TV, online, print, podcasts and mobile all become vital parts of the marketing consideration. Many media organizations are aggressively beefing up their presence on these platforms in recognition of changing consumer habits, either to cast the net wider or target highly desirable, hard to reach audiences. More economical, strategic and all-encompassing solutions have become requisite. Wastage is unforgivable.
No story has had as much relevance to the man on the street than the financial crisis of the past 12 months. Pundits have been spouting globalization rhetoric for many years but the worldwide knock-on effect of the current economic woes is palpable. With the shockwaves being felt far and wide, there’s never been a time when CNN International’s role as global news-breaker, analyst and story-teller has been more important to audiences around the world.
It’s fair to say that nobody knows what happens next. The new leadership in the US will hopefully change the shape of American foreign policy, and there is a new dynamic on the ground in the Middle East that is sure to change the future of the region’s role on the world stage. Yes, times are tough, but this is the worst time for the power players to be burying their heads in the sand. This is a time to grow what you know. The Middle East has been brokering global deals, building cities and setting a new pace for growth for the past decade – and that needs to continue.
Rani R Raadis the SVP Advertising Sales, CNN International.
