Consumer product companies in the UAE expect the most expansion internationally in the next one to two years as businesses in Middle East and Emerging Europe are planning to do the same amid some common challenges of achieving sales growth, changing economic environment and managing working capital, according to a new Citi Corporate Survey.
That companies in the consumer sector in the UAE are most likely to expand beyond the national border is not surprising, especially in products where there is no value addition and the competition is severe, said Vincent Valladares, Middle East Head at Citi Commercial Bank.
“Companies in this segment also look at markets like Saudi Arabia and North and East Africa as these markets have a large population base, ideal for consumer products,” he told Gulf News in an exclusive interview.
To sustain sales growth, UAE companies’ foray into international markets is in fact following international trends even as others from outside feel inclined to set up their units in this country.
