With the dust from Kuwait's burnt oil-wells barely settled, the race is on for UK companies to beat their rivals back into the Gulf, with rich pickings on offer from reconstructing Kuwait's war-ravaged economy and the return of local dictators to their old playgrounds. And just to show that the pursuit of profit knows no boundaries of race, religion or nation, British companies are again climbing into bed with the “bloodthirsty mullahs" in Iran, as they too seek to rebuild a country laid waste by Iraqi bombs and missiles— also supplied, of course, by US and British companies.
Last May, just three months after the Gulf War finished. US business announced the resumption of its offensive when Al-Ahlia-Gulf Line, bottler of Coca-Cola for the United Arab Emirates (UAE) and Oman, commissioned the first modern, high speed multi-packaging machine in the Middle East. According to company general manager Jim Hill, this followed “extensive tests over the past 12 months in the local Dubai market". So even as US bombs fell in neighbouring Kuwait and in Iraq, the sharp suits from Coke were planning their own offensive on the pockets and teeth of Middle Eastern youth.
British companies could not take this sort of thing lying down. The massive participation by Britain in the Gulf War—where it supplied the second largest Allied contingent—was undertaken not for protecting Kuwaiti sovereignty, nor out of particular concern for its oil. British troops were in the Gulf to stop the domino-like internal collapse of Saudi Arabia and the other four states of the Gulf Cooperation Council—Qatar, Bahrain, the UAE and Oman—which could easily have followed an Iraqi victory and a triumphalist Saddam calling on the people of the region to rise up against their corrupt and despotic rulers.
And why this touching concern? Because British trade with the Gulf states is currently worth well over £4 billion a year, according to figures compiled by the Department of Trade and Industry. Last year, as the Gulf crisis was unwinding. British, companies did some £2 billion worth of business with Saudi Arabia alone. So now the British government is anxious that its support for the local dictators during the war results in adequate rewards for the British companies it is there to represent.
The first post-war move came from the Birmingham Chamber of Industry and Commerce, which organised a tour with the DTI of 32 British companies to Saudi Arabia, which returned in triumph with over £3.25 million in confirmed orders. “This was the most successful mission in 25 years of overseas promotion work,” Birmingham Chamber of Commerce leader Mike Turner proudly announced. A vast amount of restocking was taking place in the parts of the kingdom most affected by the war, a process being exaggerated as Saudi businessmen pump supplies into Kuwait, said Mr Turner. Interestingly, he also reported that members of the Kuwaiti elite, unimpressed by the money making opportunities in their shell-shocked native land, were to be seen wandering neighbouring states transacting all sorts of business there. Mr Turner’s advice to recession-struck companies in the UK was to visit the region in person—"the rewards are there for companies taking the trouble”.
The government was not slow in taking up his suggestion. Whatever accusations have been laid against the DTI for “inaction" during the domestic recession, the same cannot be said for the way it sprang forward as the champion of British business interests in the Middle East, loudly announcing a Britain in the Gulf 92 exhibition to be held in Dubai at the end of April.
Any interested readers—and particularly those about to lose their homes through mortgage or rent arrears—should apply by the end of this month at the latest to take advantage of the very generous level of support being offered by the DTI. “Eligible British companies will recieve a 50 percent subsidy on the cost of a standard, 15 square metre stand”, proclaims the DTI's promotional literature. "This will include company name, carpet, flower arrangements, furniture (1 table. 3 chairs) and stand cleaning"—the latter presumably undertaken at competitive rates by some of the tens of thousands of Palestinians or other "foreign” workers expelled by the Kuwaiti leadership since its return from a heroic exile. In addition, the DTI offers a "subvention” (not a subsidy, you understand) to cover one third of the not inconsiderable costs of up to two representatives per company.
"In the aftermath of the Gulf War, Anglo-Gulf relations have never been better", enthuses Britain in the Gulf 92 News. "The DTI attaches the highest importance to sustaining and enhancing the level of British trade with the six countries of the Gulf Cooperation Council”. And it is not only the DTI which is involved in pushing British business in the region. “The campaign began in December and includes reports and special programmes through the BBC Arabic Service and the Central Office of Information". So much for BBC's lofty claims to "independence”—“Nation Shall Sell Unto Nation" should perhaps be its motto in the Middle East.
The Gulf War victory by the US and its allies has ensured that Dubai remains a safe place for UK business: "The pro-business policies of the government arc reflected in the liberal regulatory environments which include no taxation on profits or incomes, nor foreign exchange controls”, says the DTI. The good citizens of Dubai earned the undying respect of the DTI by ignoring the crisis enveloping the region last year and buying 13 percent more from the UK, bringing total exports to the UAE as a whole to £R600 million in 1990.
International Conferences and Exhibitions Ltd, which is jointly arranging the Gulf 92 exhibition with the DTI, was the only exhibition organiser in Dubai to carry out its programme of events during the Gulf crisis. And the response of a grateful Dubai business class to having their skins saved by British tanks, was to endow British firms at the Opportunity in the Gulf exhibition—held in Dubai three months after the ending of hostilities—with a further £20 million worth of orders, with the same amount again anticipated for the near future.
Gulf elites
And business opportunities in the region now extend much further that the basic construction, power and transport contracts of yore, argues the DTI. The Gulf elite clearly feels secure enough to enjoy the better things in life again:
The high level of government expenditure is fuelling a boom in private sector investment, reflected in a spate of new high rise office developments, five star hotels, apartment blocks, sports clubs, shopping malls and luxury villas, all of which require a full range of luxury fittings.
It also generates the need for a whole lot more services essential to the well-being of redundant oil workers, refugees and displaced peoples throughout the region—things like "printing, advertising and financial expertise”.The children of the rich are also back to unrestrained consumption, it would seem, with consumer spending being "stimulated to record levels on items such as clothing, domestic appliances, cars, food and drink, jewellery, sports equipment and overseas travel”.
A list of companies so far enlisted for the DTI's Gulf 92 extravaganza tells its own story. Starlite Chandeliers, for example, is exhibiting a range of crystal chandeliers and light fittings, while Gainsborough Silver Collections will be displaying "a selection of pieces from its comprehensive range of silver plated tableware”. The list goes on to include limousine converters and Moores of London's "corporate jewellery in solid silver and gold plate", and so on.
Finally, what of the Iranian connection?
The carefully planned visitor promotion campaign for the Britain in the Gulf 92 exhibition will cover the six Gulf Cooperation Council states and also extend to Iran, a country with which Dubai has close trading ties.
Could this be the same country the British government sanctimoniously severed diplomatic ties with after its leader issued a death threat against Salman Rushdie which has still not been withdrawn? Yes indeed, and here is the reason:
In addition to the massive rebuilding programme planned for Kuwait, reconstruction schemes in neighbouring Iran, only 40 minutes flight from Dubai, are also arousing unprecedented interest on the part of UK exporters.
So if the government starts to backpedal on its stance against Iranian state terrorism—by banning demonstrations by Rushdie supporters, for example, which it actually did in November—you will know the reason why.
Andrew Thomas
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