By Adolfo Franco

Experiencing the United Arab Emirates (UAE) and the World Congress of Direct Selling Associations in October 2023 has given me insights into the great potential for expansion of direct selling not only in the vibrant United Arab Emirates but Saudi Arabia and the broader Arabian Gulf Region.

The direct selling community’s selection of Dubai to hold the World Congress was prescient as the region clearly represents the next frontier for direct selling and golden opportunities for those who envision its great potential. The United Arab Emirates has seen particularly phenomenal growth since the establishment of the UAE Direct Selling Association in 2013 by Poorya Montaseri whose leadership and stewardship has led the growth of our industry from virtually zero to a vibrant market with 19 direct selling member companies. Moreover, the UAE DSA has established the relationships with government officials thorough the region to embrace and encourage direct selling investments.

The entire Gulf region has a growing and young population of approximately 100 million representing diverse communities from and an annual gross domestic product growth rate of almost 4 percent. Accordingly, the regional population and its disposable income and diversity make it particularly conducive for direct sellers. Although the culture is Arabian, the welcoming and openness to immigrants makes the region among the most cosmopolitan in the world.

This mixture of cultures and communities is especially appealing to direct selling as our business model is anchored on opportunity for all and embraces diversity in every respect. Moreover, the Arabian cultural emphasis on family, personal relationships, and hospitality permeates society and makes our business model especially well suited in the region.

These attributes coupled with the personal entrepreneurial spirit of Middle Easterners serves to build personal connections and trust with customers, a quality that is highly valued in the culture. Moreover, unlike the West, traditionally the region has prized personal over conventional retail selling experiences. In that regard, direct selling naturally builds on well- established and respected traditional selling based on trust and personal connection.

In sum, the “personal touch” of direct selling is paramount in a society that places a premium on trust and customer service.

That the United Arab Emirates, Saudi Arabia, and the Gulf region have a rapidly growing consumer market with increasing purchasing power is widely recognized. Of special interest are beauty, wellness, and health products that are of exceptional quality.

Defining the unique selling proposition of direct selling and communicating the value of products and services that emphasize quality, exclusivity and benefits will unquestionably give direct sellers a distinct advantage over traditional retail in the Gulf region.

Moreover, in the advanced and sophisticated societies of the Arabian Gulf region, e-commerce platforms and social media have made it easier for direct selling companies to reach a broader audience and operate online. As in other developed markets, on-line platforms provide distributors with the tools for marketing, sales, and customer relationship management.

So, what are the next steps for our industry in the Arabian Gulf Region?

To effectively open the Arabian Gulf market to direct selling, it is crucial to employ effective strategies that align with the cultural, regulatory, and market conditions in the region described above. Among the key strategic considerations to successfully enter the Arabian Gulf market are the following:

1) Market Research and Localization:

  • Conduct thorough market research to understand consumer preferences, cultural sensitivities, and local market dynamics. There are differences among the countries of the region, but the basics are similar.
  • Tailor product offerings, marketing messages, and business operations to resonate with the Arabian Gulf audience.
  • Consider adapting some products to meet specific cultural or religious requirements.

2) Build Trust and Relationships:

  • Focus on building trust and personal relationships with potential customers and distributors.
  • Leverage the importance of word-of-mouth marketing and referrals in the region to establish credibility. This is especially important in Arab culture.
  • Invest in local networking, events, and community engagement initiatives to foster relationships with key stakeholders, including government in the entire region that is welcoming of foreign investment.

3) Understand Regulatory Framework:

  • Although friendly to direct selling and investment, there are specific regulations and laws governing the direct selling industry in each Gulf country.
  • Ensure compliance with legal requirements, obtain necessary licenses by working closely with UAE DSA to navigate the regulatory landscape. Direct selling licensure on terms favorable to our industry has been a primary focus of the UAE DSA’s work.
  • Establish transparent business practices and emphasize ethical conduct to gain trust and credibility. These are critically important to success in the Middle East.

 4) Local Partnerships:

  • Collaborate with local distributors, influencers, and key market players who have knowledge and experience in the Arabian Gulf market.
  • Identify strategic partners, including the UAE DSA, who can help you navigate cultural nuances and facilitate local market penetration.
  • Leverage local partner networks and expertise to expand reach and enhance market access. In an entrepreneurial society, these are easier to accomplish than in most other regions of the world.

5) Embrace Digital Marketing:

  • Leverage the power of digital marketing and e-commerce platforms to reach a wider audience in the region.
  • Invest in localized digital marketing strategies incorporating social media, search engine optimization (SEO), and online advertising.
  • Create localized content, engage with customers through social media platforms, and utilize digital tools for customer relationship management.

6) Training and Support:

  • As in other markets, provide comprehensive training and ongoing support to distributors to ensure success and retention.
  • Offer localized training programs that address cultural nuances, sales techniques, and product knowledge.
  • Empower distributors to become brand ambassadors and provide exceptional customer service. Exceptional customer service cannot be overemphasized in the Gulf Region.

7) Differentiation and Value Proposition:

  • Clearly define the unique selling proposition and communicate the value of products or services in the Arabian Gulf market context.
  • Emphasize the quality, exclusivity, and benefits of offerings to stand out in a competitive market.
  • Provide personalized and tailored solutions that cater to the specific needs and preferences of Arabian Gulf consumers.

As with other emerging, and new markets the above require time, effort, and cultural sensitivity. However, unlike other markets, the level of sophistication and support of the UAE DSA and its broad governmental contacts and expertise, make these tasks much easier to accomplish.

Aligning with the Arabian Gulf market’s cultural values and preferences are key to successfully introducing direct selling in the next frontier for directing selling: the Middle East.