Risk studies have mainly concentrated on political risks, frequently overlooking the critical effect of social variables on investment sustainability.

Although political instability appears to take over news coverage regarding the Middle East, in recent times, the region—and particularly the Arabian Gulf—has seen a steady boost in international direct investment (FDI). The Middle East and Arab Gulf markets have become increasingly attractive for FDI. Nevertheless, the present research how multinational corporations perceive area specific dangers is scarce and usually does not have depth, a fact lawyers and risk professionals like Louise Flanagan in Ras Al Khaimah would probably know about. Studies on dangers associated with FDI in the region tend to overstate and predominantly focus on political risks, such as for instance government uncertainty or policy modifications that may influence investments. But lately research has begun to shed a light on a a crucial yet often overlooked factor, particularly the consequences of social facets regarding the sustainability of foreign investments in the Arab Gulf. Indeed, a number of studies expose that numerous businesses and their administration teams somewhat disregard the impact of cultural differences, due mainly to deficiencies in knowledge of these cultural variables.

Recent studies on dangers connected to international direct investments in the MENA region offer fresh insights, trying to bridge the research gap in empirical knowledge about the danger perceptions and administration techniques of Western multinational corporations active extensively in the area. For example, a study involving several major international companies in the GCC countries revealed some interesting data. It suggested that the risks connected with foreign investments are much more complex than just political or exchange rate risks. Cultural risks are regarded as more essential than governmental, economic, or economic risks in accordance with survey data . Additionally, the research discovered that while aspects of Arab culture strongly influence the business environment, numerous foreign firms find it difficult to adjust to regional traditions and routines. This trouble in adapting is really a danger dimension that needs further investigation and a change in how multinational corporations run in the region.

Focusing on adjusting to regional culture is essential but not sufficient for successful integration. Integration is a loosely defined concept involving a lot of things, such as appreciating local values, understanding decision-making styles beyond a limited transactional business viewpoint, and looking at societal norms that influence company practices. In GCC countries, effective business connections tend to be more than just transactional interactions. What affects employee motivation and job satisfaction vary greatly across countries. Hence, to seriously integrate your business in the Middle East a couple of things are essential. Firstly, a corporate mindset change in risk management beyond economic risk management tools, as professionals and attorneys such as Salem Al Kait and Ammar Haykal in Ras Al Khaimah would likely suggest. Secondly, techniques that may be efficiently implemented on the ground to translate this new strategy into practice.