Companies that are looking to grow and expand in the region and targeting Arabs have to speak to their audience’s language. Getty Images
Companies that are looking to grow and expand in the region and targeting Arabs have to speak to their audience’s language. Getty Images
Companies that are looking to grow and expand in the region and targeting Arabs have to speak to their audience’s language. Getty Images
Companies that are looking to grow and expand in the region and targeting Arabs have to speak to their audience’s language. Getty Images

Why more Middle East businesses need to communicate in Arabic


  • English
  • Arabic

Arabic is one of the 15 languages spoken by half of the world's population, according to the World Economic Forum. It's the official language of over 20 countries, and has around 300 million native speakers. It also ranks in the top five on the Power Language Index.

As we celebrate Arabic Language Day on Friday, it is more important now than ever for businesses that want to appeal to the Arab target audience to communicate in Arabic with their customers. A growing body of research provides credence to the fact that language is closely linked with consumer behaviours.

Online shoppers prefer businesses that speak their language. According to a 2018 study by Rbbi, the Middle East's first data-driven agency, 88 per cent of online shoppers prefer to buy products using their native language.

Search engines are a key source of information about businesses. With Google dominating 97 per cent of market share in Arab countries, and with Arabic being the fourth-most used language online, it is imperative that businesses optimise their websites in Arabic for potential customers looking for information about or related to it.

Moreover, countries in the Middle East and North African region such as the UAE are regional hubs for media, trade, medical tourism, entrepreneurship and innovation. In addition, the people of the region also have a large purchasing power, which appeals to global brands and businesses. A study by discount site Picodi.com revealed that the UAE and Saudi Arabia are the world's cosmetic capitals, with women from these countries topping global spending charts for cosmetic and beauty products.

On the technology front, e-commerce penetration rates continue to grow in the region, with the Covid-19 crisis fueling its growth. The Mena e-commerce market is worth $8.3 billion according to a report by Google and Bain & Company published last year. Egypt and the GCC region have been growing at an annual rate of 30 per cent, surpassing the global average, according to the report, and with Arabic as the main language users communicate in. The State of Social Media 2019 report by Crowd Analyzer, a Dubai-based data intelligence provider and social media monitoring platform, derived data from over 180 million users across the Mena region, and found that 90 per cent of social media posts by users were in Arabic, and only 10 per cent in English.

Companies that are looking to grow and expand in the region and targeting Arabs have to speak to their audience’s language. It is not a matter of just translating content to Arabic, but they need to onboard Arabic-speaking staff who understand their customers’ culture and can deliver the message in an effective way without losing vital information in translation.

A good way to start is by having an Arabic version of a website, and optimising it for search engines. A social media presence in Arabic is vital, with accounts managed by an Arabic speaker as that’s one of the first places potential customers would approach. Last but not least, it’s important for businesses to ensure that their customer and sales representatives are Arabic speakers.

By ensuring that a business speaks their customers’ language, they can gain a competitive edge, have a better understanding of their customers’ needs, and can serve them better. As e-commerce, mobile, and social media penetration continues to grow, and the world is interwoven, there’s no time like the present to ensure that your business embraces Arabic.

Manar Al Hinai is an award-winning Emirati journalist and entrepreneur, who manages her marketing and communications company in Abu Dhabi.

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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