Published: 31/05/2011 by Marwan Al-Ahmadi - مروان الأحمدي
The Middle Eastern countries are well known for their strict enforcement of laws. Foreign companies often believe that the ME laws are more strict and harsh on them when any wrongdoing is detected by the authorities. Most foreign businesses are concerned about the enforcement of Foreign Corrupt Practices Act (FCPA) that gives an indication of the government authority’s reliance on traditional law enforcement methods. Any violations of FCPA are dealt severely and the allegations and arrests can be a big blow to any business operating in the Middle East Region.
Most foreign business entities are wary about this law and think it as a risk factor in doing business in a tension-free environment. Any suspected activity of wrongdoing can be enough to bring the key business persons under the scanner of the law and the business can be subjected to regular scrutiny by the enforcement officials. d3ayat.com is well aware of this common sentiment among the foreign business entities operating in the Middle East region. The directory establishes that this could have an adverse impact on the emerging trend of business entities rushing to the region. While the law is meant to impose restriction on corrupt business practices, the misleading information of using it as a reigning tool for foreign businesses can restrict many businesses to spread their wings in this region. This in anyway cannot be assumed as a healthy way for the business growth of the region.
While examining the key risk areas for doing business in the Middle East region from a foreign business’ point of view, d3ayat.com finds this FCPA act somehow discouraging for the foreign businesses to gain trust on the Middle East countries’ law enforcement agencies. Corruption has become a global problem and needs to be dealt strictly but any discriminatory act on the basis of country of origin should not be promoted.