INTERNATIONAL MARKET ENTRY PROJECT

Executive Summary

Before entry into a foreign market, it is prudent to carry out an analysis of the new market so as to identify any challenges that the new market may pose to the organization. This investigation will include any factors that will serve to give a general indication of the performance metrics and how well the firm will perform in the new market. A systematic and proactive approach has been preferred in selecting the (international) markets. Since there is a limitation on the amount of resources available, the firm has chosen to focus on only a few foreign markets in order to maximize profitability on the resources that it has. Proper selection of target markets will prevent wastage of time and resources and allows the firm to concentrate on a few profitable markets.

For a decent choice in the markets to engage in, the usually will carry out a preliminary screening of the various regions and countries to identify what target markets will be profitable for it. After that, a precise analysis will be done to identify which of the preselected markets will be the most profitable. The market entry mode that the firm will select will be dependent on this analysis. The style may range from a minimum initial investment of capital with infrequent or frequent exporting to a huge investment of capital and human resources so as to capture and maintain a specific segment of the market depending on the information garnered from the indicators assessed (Kuada, 2008). Internationalization of markets for the firm is a matter of necessity for the company to remain competitive. The choice of the market in which to set up operations, as well as the mode of entry into a selected market is a sum of key performance indicators, and these determine will determine in which new market the firm will set up operations.

Introduction

For almost a century, SUBURBAN UNIVERSITY (S.U.) has pioneered innovative learning experiences and delivered holistic education in areas of crucial importance to tackle some of the most challenging issues both in the United States and in the world. Suburban University is a research-driven institution of higher learning with a strong track record. They have ambitious plans for the future with one of their foremost priorities being the attainment of sustainable international growth. Their aim is to become a globally recognized center for excellence and research. Suburban University has consistently been ranked as one of the best universities in North America and indeed in the world. The 2016 US News Global University Report placed the university as the 14^th best university in North America and 21^st in the world. In 2014, we were named as the Times Higher University of the Year for the second straight year. Among our achievements is being one of America’s leading teaching and research universities.

To maintain this competitive advantage, the University has to maintain the high standards of quality and research while at the same time look for new markets to enter. Given the reputation Suburban University has developed as being a center for excellence and scientific research, the University is sure to find a ready market for its services. The internationalization of its market strategy will rely on setting up operations in one area before moving on to another when the resources allow it. The expansion strategy will focus on identifying target markets in four out of five regions of (Sub-Saharan) Africa, Central Asia Eastern Europe, South Asia, and the Middle East and North Africa. The choice of the market will be determined by the suitability of the said market based on the analysis of key indicators.

Assessment Strategy

The assessment strategy entailed looking at some general as well as some detailed performance indicators of the target markets. The primary concerns in the analysis were the current market potential, the future market growth, the business and political environment of the target markets as well as any entry barriers to the markets. Special consideration was also given to the competitiveness of the target market.

The countries identified as potential target markets for expansion were the following:

#	COUNTRY	REGION
1.	Saudi Arabia	Middle East And North Africa
2.	Qatar	Middle East And North Africa
3.	United Arab Emirates	Middle East And North Africa
4.	Kenya	Africa
5.	South Africa	Africa
6.	Nigeria	Africa
7.	Poland	Eastern Europe
8.	Hungary	Eastern Europe
9.	Czech Republic	Eastern Europe
10.	Sri Lanka	South Asia
11.	Bangladesh	South Asia
12.	India	South Asia

Why these Twelve?

The twelve countries were identified by economic performance in the last few years, how attractive the countries are in drawing in Foreign Direct Investment, and also as a function of how stable they are in their respective region. A general emphasis was placed in choosing countries that allow 100% foreign equity and have as few market entry restrictions as possible. Also, since an international institution of Suburban University’s stature is bound to attract cross-border movement in an attempt to access the education, the selection policy looked at how the countries were strategically located in their respective regions. A general summary of why the following countries were preferred is outlined as follows.

India

 India is experiencing phenomenal economic growth with a GDP growth rate of 8% expected for 2015. The institution of reforms means that the country is a stable place to invest, and, the resilient Rupee means less forex risk for the University. The lower price of oil means the cost of business will be low as well. India, with an average age of 25, is also one of the youngest countries in the world translating into more and more young people requiring higher education. Regarding infrastructure, India has a well-developed infrastructure that allows its sizeable population over freely within the country. Internet and communication advances also make it a good prospective market for higher education.

Bangladesh

 After India and Pakistan, Bangladesh is the strongest economy in South Asia, with stable political climate and an annual GDP that averaged over 6% in the last three years. Further, Bangladesh is strategically positioned to serve the rest of South Asia and has a large population that is continually searching for higher education. Bangladesh also supports 100% foreign equity and is strategically located as the bridge to high growth market regions of South and East Asia, for example, India, Pakistan, Malaysia, Singapore. Income tax exemptions for expatriates for up to three years and multiple entry visas will make it very attractive for highly skilled staff to relocate. Infrastructure has been a severe setback in Bangladeshi investments, but with the initialization of the Bangladeshi Infrastructure Investment Plan substantial improvements have been seen. With up to 15% set aside for infrastructure in the most recent budget, 9% being in communication and the internet, the situation is set to change.

Sri Lanka

 Having experienced stable political climate since 2009, the country has a stable government with a booming financial market and demand for higher education, making it well suited for a Suburban University market. Also, the country has a well-developed infrastructure network that will ensure the provision of services is easy. Sri Lanka is on the fast track to becoming a middle-income economy (The World Bank, 2015), and advances in infrastructure and telecommunication connective make it exceptionally well connected to the rest of South Asia and the world. Upgrades to its international airports, with another, soon to be constructed. Rail has been improved, and a sea port has been built to increase the handled volumes.

Poland

Poland has a stable economy, having the distinction of being the only European country to escape the depression. After 25 years of a stable political atmosphere, Poland has grown to become among the top three emerging markets worldwide. Poland has a well-developed infrastructure and good connectivity to the rest of Europe. More than that, it has very few barriers of entry (The World Bank, 2015), and has sound financial policies as evidenced in her quick market-oriented recovery. Foreign investors in Poland also enjoy direct support in form of grants from the Polish Government.

Hungary

Hungary has a huge population, stable and investment friendly economy policy. The location of the country is strategic to penetrate the rest of the European region. Hungary is centrally located, with a good connection to the rest of Europe and an ever increasing demand for higher learning. The reliance on industry implies a constant demand for research and development, therefore, a university will prove very important. Investments will benefit from the Hungary having consistent GDP growth (quarterly at 0.64% from 1995 through 2010). Hungary also has a dynamic automotive industry which requires research and technology inputs.

Czech Republic

With the highest foreign direct investment in Europe, a strategic position as a launch pad for entry into any country in Europe, and the presence of an extremely skilled workforce, Czech is an investor’s dream. The presence of a variety of industries and manufacturing plants, with very few universities in the country having a strong foundation in research is sure to provide a ready market for Suburban University services.

United Arab Emirates

The UAE is a highly industrialized federation with the 5th largest GDP per capita. Also, the UAE has some of the best infrastructures in the world, with a large number of expatriate community (75% of labor workforce) who will like a world-class institution nearby for when they want to further their education.

Qatar

Qatar in turn boasts a high economic growth of around 10% annually, is increasingly investing in infrastructure projects, and as well as being considered the most competitive economy in the Middle East and a growing community of expatriates. All these factors collectively make it a great potential marketplace for Suburban University. Qatar offers incentives in some industries or areas including the introduction of nominal rates for fuel and electricity, no import duty on equipment, machinery, and spare parts for industrial projects. Qatar also has tax exemptions for pre-determined periods after setting up a business and no export duty

Saudi Arabia

The largest free market economy in the Middle East and North Africa region with 25% of the Arab GDP, Saudi Arabia makes a fine investment choice. Coupled with the well-developed infrastructure, ready access to the internet for most of its citizens, and a large community of expatriates, Saudi Arabia makes for a great investment option for an institution of higher learning. Also, the push for modernization and industrialization presents a ready market or research-based higher education institution. Saudi Arabia is also one of the few nations in the world that allow 100% foreign ownership of corporations. The costs of energy are exceedingly low as well.

Kenya

Kenya is Africa’s fastest growing economy with an average growth rate of 5.4% in 2014. Moreover, about 60% of the population is under 25 years of age, with an ever increasing need for higher education in technology and research oriented fields. The country also features a fully liberalized economy and acts as gateway to the larger eastern and central African region. In addition, a recent spurt in the development of infrastructure and cheap internet connectivity make it a reasonable market consideration for the Suburban University.

South Africa

South Africa is Africa’s largest economy account for 30% of Africa’s total GDP. Moreover, it has a large manufacturing and industrial capacity that provides a ready market for research and technical training. Regarding infrastructure, it offers a wide and well-developed transport and communication network with considerably lower costs of doing business than most other emerging markets. Also, South Africa offers a gateway into the Southern Africa nations of Namibia, Lesotho, and Mozambique.

Nigeria

Nigeria features a stable economic environment with poor access to energy sources. The country has a large and growing middle class that will provide a ready market upon entry. Also, the country offers a strong, large and competitive domestic market with an unmet demand for higher education options. Nigeria also serves as the entry point to the larger West African region, providing easy access to the countries of Ghana, Ivory Coast, Chad, Guinea, and Cameroun. While it does not have a well-developed infrastructure as the two other African nations, but the opportunities far outweigh the risks, especially the fact that it is a gateway to the West Africa.

Indicators to Investment Climate

The suitability of a state as an investment destination can be estimated by looking at some key performance indicators. The value of these indicators lies in the how accurately they can serve as a measure of the performance of the market. The market indicators are a combination of general as well as more specific indicators of the market potential compiled by credible economic and financial sources including the World Bank, and independent financial market consultants like the Economic Times. The indicators that have been applied to this analysis include the Gross National Input (GNI), the Gross Domestic Product (GDP), the labor force and other principal economic performance indicators. The factors looked at that are indicative of the suitability for market entry include the ease of doing business, the time to export in days and the time to resolve insolvency. Those that present as barriers to entry include time and procedures to start a business. The new business density on the other hand serves to indicate how competitive the target market is.

The relevant indicators for market potential for the countries selected in each region are in the respective region index.

Infrastructure

Infrastructure is a principal measure of a country’s place on the global arena and is the second pillar assessed by the World Economic Forum, after institutions, in the determination of the competitiveness of a nation. Infrastructure is a key indicator of market performance. Good infrastructure will ensure businesses are able to gain new customers as well as retain old ones. The other upside to good infrastructure is it serves as a means of delivering the product to market seamlessly (Kessides, 1993). In the example of Suburban University, good infrastructure in the form of fast and reliable internet connectivity will translate into the ability for student to engage in research, communicate with their lecturers, and take classes online. A good physical infrastructure network (roads and rail) translates to a wider market base. These two factors will contribute to the university reaching a wider subscriber base to its market.

The relevant Infrastructure indicators for the countries selected in each region are in the respective region index.

Market Potential Index (MPI)

Market potential denotes the amount of money that is expected from a product in a given market. Market potential can be understood to be the estimated total in sales revenue for all suppliers in a given market. The Market Potential Index is, therefore, a way to help companies compare the expected performance of the said markets on several key dimensions (Michigan State University, 2015). For the purposes of this study, the market potential index conducted by the Michigan State University-International Business Center has been used. The MPI gives a US based focus on the performance of some of the best performing emerging markets. The MPI uses eight primary dimensions in indexing market potential. The MPI has been subject to a weighting scheme that has placed variable weights to the different indicators. The weighting has been used to calculate the market performance for a number of emerging markets. While the MPI focuses on only 87 countries that are considered emerging markets, data on other countries is available as well, only not comprehensive. The criteria for inclusion into the index is that a country be among the top 100 countries by GDP size, have a population of a million or more and have existing reliable data for a majority of the indicators used. Since MPI has been developed since 1996, a period coming to two decades, the validity of the method is assured.

The relevant ratings for MPI for the countries selected in each region are in the respective region index.

Market (Country) Selection

The identification of the country to first establish operations in has been a challenging one, subject to the rise in demand for higher education across most of the regions. The conclusions of the market analysis as to the suitability of the various countries as a market for Suburban University’s higher education offering was that the best country to invest in is the United Arab Emirates (U.A.E). The reasons identified are that of all the regions, the Middle East and North Africa presented the best investment option. From the region, UAE proved to be the best owing to an increase in population and a high demand for higher education (Stevens and Stevens, 2006). The population is expected to reach 9.9 million people by 2016, with an expatriate penetration that exceeds 88%. Current tertiary education enrollment figures are expected to rise by over 40% in the next three years. The private education sector, which was valued at US$1.9 billion in 2014, expects to grow even further with one of the biggest drivers being the number of international students from Asia and the Gulf region.

The countries that were not selected have a unique set of factors that work against them. African countries have exceptionally high entry barriers (Pehrsson, 2009). As an example, South Africa has experienced unprecedented growth, with enrollment figures more than doubling since independence. Immigration and employment equity laws, which were meant to serve as a way of empowering Africans have been characterized as too rigid to such a point they are “unfriendly for expatriates.” On the other hand, Kenya, despite the signing of a MoU that would potentially draw in candidates from Burundi, Rwanda, Tanzania, Uganda, and the Democratic Republic of Congo is an unlikely choice as corruption places too huge a barrier to entry (Hawkins and Klau, 2000). Eastern European countries, most notably Poland and Hungary are faced with declining populations and hence declining demand for higher education. In Poland, the population of potential tertiary education candidates graduating high school has halved since 2002 (Ranguelov et al., 2012). The Czech Republic where the demand for higher education is on the rise faces the problem of a public that is not receptive to private education options, particularly from foreign investments. A growing perception that private universities are contributing to the decline of public universities and leading to inflation in costs presents a challenge.

South Asia scene features a growing demand for higher education, but some country specific challenges present barriers to entry. India, which is expected to be the most populous nation in the world, has a large gap in the provision of higher education. Legislation preventing the setting up of foreign university campuses prevents entry into the market. Bangladesh had a similar policy overturned only recently, and at present it limits any such entry to partnerships with local universities. Saudi Arabia in the Gulf faces the unique problem of the number of graduates surpassing the quantity of jobs that can be created in the next few years. The only other contender would be Qatar, which due to having a smaller population and hence less demand for higher education had to cede to UAE.

Market Entry Mode

The essential act of entrepreneurship is new entry, where new entry denotes the introduction of new products or services into a new or established market (Lumpkin and Dess, 1996). Suburban University is a relatively late entrant into the UAE higher education market, with AU-Dubai, Canadian University of Dubai, American University of Sharjah, and New York University- Abu Dhabi already in the market. Being a late entrant will offer Suburban University with the opportunity to utilize strategies developed and tested by the early entrants. In learning from the mistakes of the early entrants, SU can attract more customers than its competitors. The entry mode for Suburban University will entail applying strategy to identify a market niche and perfecting the existing information so as to get a larger share of the market. In the entry into the UAE market, Suburban University will adopt the Investment mode. SU prefers a foreign direct investment without alliances as this will enable creation of modern facilities and assure quality in their product offering.

The lower research and development, as well as marketing fees, will go towards the initial set up costs. Suburban University can apply the savings to polish the product design, and capture a larger market share. Suburban University has opted to place itself as an institution offering technical and research oriented courses to their clients. An additional emphasis on finance and accounting courses will also be placed since these two courses account for a good number of outbound international students. The specific industries in which the university chooses to focus are in software development, oil and gas, finance and banking, engineering, and construction. This is not to say that the university will only offer courses in these fields. Care will be taken to ensure that the course offering is as wide as can be supported. These industries are have been identified as being the ones in most demand in UAE regarding job demands and have the biggest potential job growth prospects in the years to come based on labor figures. Also, the product offering in these fields, particularly at postgraduate level has still not taken off. In choosing to focus on this niche, Suburban University assures itself of a small but profitable segment to the market (Hawkins and Klau, 2000).

Suburban University has identified the facilities previously owned by Bostonian University, a mid-level college that was set up in Abu Dhabi and is now exiting the market as a potential target for acquisition. The firm has developed ultra-modern facilities with ample space and room for expansion. Suburban University can acquire the property at 30% below market rates making it a premium buy. It should be noted however that this is not an acquisition since Bostonian is completely exiting the market. Bostonian’s assets, particularly the developed real estate and lease contracts are what are of primary concern. Sticking to a direct investment will assure Suburban University of a small cultural distance between the university and its future client base especially in light of the differences between the cultures of United Arab Emirates and America. Also, direct investment, it is hoped, will translate into high market sales potential and lower political risk. Applying the knowledge of the market from the early entrants, successful integration of Suburban University into the market will be all but secured.

PEST Analysis

UAE consists of seven emirates these being Abu Dhabi, Dubai, Fujairah, Sharjah, Umm al-Qaiwain, Ajman and Ras al-Khaimah. Each emirate has its federal government with the members of the ruling family in each emirate being members of the Supreme Council. The president of the council is the emir of Abu Dhabi His Highness Sheikh Khalifa bin Zayed Al Nahyan. The state currency is the Dirham, and the exchange rate is about 3.67 Dirhams to the US Dollar. UAE is the third largest exporter of oil, producing around 2.2 million barrels of crude in a day. The strongest pillars of the country’s diversification strategy lie in it being a free zone. Socially, most Emiratis are tolerant, forward-looking with a strong sense of tradition. The United Arab Emirates practices Islam, and freedom of worship is provided for. Women are seen as equals, unlike in most other Islamic states and are treated as such, and the country has an illiteracy rate of 7%. Technologically, most of the infrastructure in UAE is highly modernized with high internet penetration rates and connectivity and good mobile subscription numbers.

The UAE also features some differences from traditional European work practices. For one, typical work weeks are from Saturday to Wednesday, with Thursday and Friday being weekends. Also, attitude towards time is considerably more relaxed. Hence, meetings should be scheduled advanced with extra time allocation. There is a strong vertical hierarchy with age, money and family being key to personal status. Principal growth sectors are energy production and manufacturing. Another factor to consider is that in the UAE, a license to operate in one Emirate limits a company’s operations to that individual emirate. Owing to the high amount of political and economic independence among the seven states, such nuances are common place and it is advisable to research them adequately. In line with this, most companies find it beneficial to engage with a local sponsor or service agent (Spraggon and Bodolica, 2014).uburban University will adopt similar measures to enter the market successfully. For successful entry into the UAE market, it follows that careful consideration of all of the above factors has to be incorporated into the market entry strategy.

Comparative analysis of market entry strategy of other firms

Principal entrants into the higher education market in the UAE have all adopted a direct investment strategy. The approach is more favored because it ensures quality in the product offering, a factor that has proven important in the past. The America University Sharjah is an example of an institution that adopted the model and had since successfully retained its market share even in the face of big-name competitors like George Mason and Michigan State University. NYU-Abu Dhabi has adopted a similar stance, and it has proven successful in turn. Other universities have not been as successful. Ras Al Khaimah-based George Mason University is one such example. George Mason was funded by a local government entity, and after a budget dispute with the entity could not continue operations. Other reasons cited for the exit include low enrollment numbers and a lack of faculty willing to work in the country.

Another failure in the region has been Michigan State University (MSU), which has scrapped off all its Undergraduate offering and in turn only offers Graduate programs from its Abu Dhabi Campus. The reasons for MSU failure are given as low enrollment numbers, especially in light of the higher costs of tuition compared to local universities. It is not American universities only that are being challenged by the situation in UAE as the Indian University of Pune also failed to establish itself in the market. There is a stark contrast between the way public universities fare in the country as compared to private universities. The reasons for these failures include among other reasons low enrollment rates, a lack of faculty and staff for the centers, high tuition, and limited or out of demand program offerings. To successfully gain footing in the market, a firm has to address adequately these concerns.

To mitigate any risk factors present in the market, a careful study of the causes of these risks has to be undertaken (Kotler and Armstrong, 2006). An advantage derived from being a late entrant into the market is that Suburban University can benefit from the lessons of early entrants. One factor that becomes clear is what models are effective in the market. These explain why some institutions of higher learning are successful while others fail. One of the discernible lessons lies in the unreliability of government or local entity funding in light of the global financial downturn. Another readily apparent conclusion lies in the value of English proficiency classes as well as a dual language course offering in the programs. NYU Abu Dhabi has adopted a similar stance, and this, along with offering a large number of in-demand courses has bolstered their enrollment rates. Suburban University could adapt these observations to suit her needs. Through offering a multitude of in-demand courses, lower tuition fees, and English proficiency lessons, SU will adequately cover most of these concerns (Schuman, 2009). Also, the inclusion of both English and Arabic courses in most of its offerings presents a distinct advantage.

Standardization or adaptation?

Globalization has resulted in the homogenizing of the world markets. With globalization, differences between countries are becoming increasingly smaller (Solberg, 2000). Nevertheless, these differences still exist, and nowhere is this more apparent than in the Middle East. For an American company trying to gain entry into the market, it calls for careful considerations so as to make sure the marketing strategy works best for them. In line with this, any marketing strategy that a firm adopts should reflect the realities of the market to suit it. An examination of the higher education market in UAE reveals the value of such considerations. In looking at the differences between the institutions that failed as compared to those that were able to thrive in the market, a definite pattern becomes discernible. Those that adapted their products to the target market thrived. Also apparent, is the fact that for a university to maintain the image of a world-class institution, quality assurance must take center stage. Evidently, a marketing approach that is effective has to mix these two in a proportionate manner.

Where standardization will advance the creation of a single consistent product, adaptability will call for tailoring the said product so that it better suits the market. Through addressing specific market considerations, adaptability achieves a product that meets the market demands as well as cultural preferences in UAE. On the other hand, standardization ensures that the product maintains the high standards of quality ascribed to the home institution. George Mason University primarily had its course offering in English, maintained the same level of entry requirements as its home campus and had a limited number of degree offerings. Through a failure to adapt the course offerings to the target market, the university failed to establish itself in the market. It follows that for a successful market penetration strategy, the individual demands of the target market have to be considered (Kotler and Armstrong, 2006). All the same product adaptation, at least in this instance, must go hand in hand with standardization. In this regard, all factors related to product quality should be standardized. Similarly, those factors that will directly influence its uptake within the market should be adapted to suit the market.

Market Implementation Plan

Market implementation is the final stage of developing a marketing strategy. The stage involves implementing all the marketing plan, putting in mind all the considerations identified throughout the course of the market development process. As a first step, an implementation strategy would finalize marketing plan and implementing all the strategic considerations of the plan. In this instance, this would involve applying all the considerations identified in the course of the market development. Suburban University should apply a plan that takes into account the unique market expectations for a higher education institution in the UAE. The primary considerations include affordable tuition, English proficiency classes as well as having some course offerings in Arabic. Another consideration would be how to recruit students whose qualifications are not on par with those at the home campus without negatively impacting quality. A principal point for consideration might be the institution of bridging courses to adjust the student grades up to the course requirements.

In addition to this, a way of attracting staff and faculty from the home campus to the campus should be implemented. A common complaint involves the claim that it takes longer to get promotions and tenure while away from the home campus. The university policy should address this for qualified faculty to opt to teach at the new campus. This would improve on quality assurance and improve the enrollment rates. Further, the budget schedule should be implemented that would assure the financial viability of the campus. Foregoing high-profit margins at present will translate into more sustainable growth and future financial viability. To this end, tuition fees can be adjusted so as to attract more enrollments. Once the campus gains traction, and it has distinguished itself through the quality of its service offering, the policy can be reviewed to reflect a more viable financial position. In this way, the ability of Suburban University to command a large share of the UAE higher education market is assured.

Aside from aligning the budget to the university’s annual goals, it is important to factor in how well the product is adapted to the market. A key part of a market implementation strategy relies on developing a system for tracking and monitoring the plan. Where changes are necessary, or the product offering does not adequately cover market environment, adaptation should be done. It is also critical that a performance management and reward system be developed that would ensure the marketing strategy is constantly reviewed to identify how well it suits the stated purpose (Kotler and Armstrong, 2006). In this way, any shortcomings will be quickly identified and addressed. To further assure the effectiveness of the review process, set dates should be fixed for monthly, quarterly and annual reviews of the process. A final consideration involves adopting the strategy at an institutional level as this would ensure that it has the necessary support to succeed.

To conclude, the choice of a marketing strategy and the subsequent application of the same towards the successfully entering a market is instrumental in the success or failure of a product in the market. Through careful consideration of the market factors, a study of principal market operators, past and present as well as applying the appropriate market mix

APPENDICE 1: MIDDLE EAST AND NORTH AFRICA

#	INDICATOR	QATAR	UNITED ARAB EMIRATES	SAUDI ARABIA
ECONOMIC & SOCIAL INDICATORS
1.	Labor Force (Millions)	1.6	6.3	11.2
2.	GNI Per Capita World Bank Atlas Method ($)	86790	38360	13240
3.	GDP (Average Annual %)	12.7	1.3	6.1
4.	Inflation	3.1	1.1	3.5
5.	Exchange Rate ( To the USD)	3.6	3.7	3.8
6.	Imports  ( % of GDP)	25.8	77.7	30.6
7.	Exports ( % of GDP)	71.7	98.4	51.8
BUSINESS ENVIRONMENT INDICATORS
8.	Ease of Doing Business	50	22	49
9.	Number of Procedures to Start Business
10.	New Business Density (New Registrations per 1000)	1.7	1.4	–
11.	Time to Export  (Days)	15	7	13
12.	Time to Resolve Insolvency	2.8	3.2	2.8
PRIVATE SECTOR INVESTMENT INDICATORS
13.	Investment in Infrastructure	–	–	–
14	Private Foreign Direct Investment	-0.4	2.6	1.2
15.	Gross Fixed Capital Formation (% of GDP)	–	22.0	23.2
16.	Gross Fixed Private Capital Formation (% of GDP)	–	14.8	–
FINANCIAL INDICATORS
17.	Government Debt (% of GDP)	–	–	–
18.	Total Financial System Deposit (% of GDP)	60.6	57.9	30.7
19.	Bank Capital to Asset Ratio (% of GDP)	–	15.2	13.6
20.	Bank Non-Performing Loans (To Total Gross Loans)	1.9	7.3	1.3
21.	Domestic Credit to Private Sector (% of GDP)	39.3	59.1	40.3
22.	Real Interest Rates (%)	4.6	–	–
23.	Interest Spread Rate (% Points)	3.7	–	–

INFRASTRUCTURE

#	INDICATOR	QATAR	UNITED ARAB EMIRATES
INFRASTRUCTURE
1.	Air Transport (Thousands Registered Carrier Departures Worldwide)	140	359	217
2.	Port Container Traffic  (thousand TEU)	424	19336	1806
3.	Electric Power Consumption  (kWh per capita)	1575	9389	8161
4.	Power Outages in Firms in a Typical Month (Number)	–	–	–
5.	Mobile-Cellular Telephone Subscriptions (Per 100 People)	152.6	171.6	149.1
6.	Individuals Using the Internet (%)	88.0	60.5	62.8

MARKET POTENTIAL INDEX

	INDICATOR	QATAR	UNITED ARAB EMIRATES	SAUDI ARABIA
1.	Market Size	1	2	5
2	Market Intensity	59	66	20
3.	Market Growth Rate	79	91	89
4.	Market Consumption Capacity	30	36	36
5.	Commercial Infrastructure	73	88	84
6.	Economic Freedom	45	42	29
7.	Country Risk Assessment	79	74	74
8.	Market Receptivity	30	42	16
	OVERALL	30	38	27

APPENDICE 2: EASTERN EUROPE          

#	INDICATOR	POLAND	HUNGARY	CZECH REPUBLIC
ECONOMIC & SOCIAL INDICATORS
1.	Labor Force	18.5	4.4	5.3
2.	GNI (Per Capita)	13240	13260	18970
3.	GDP	3.6	-0.7	0.6
4.	Inflation	1.0	1.7	1.4
5.	Exchange Rate ( To the USD)	3.2	223.7	19.6
6.	Imports ( % of GDP)	44.2	81.2	71.4
7.	Exports ( % of GDP)	46.1	88.8	77.2
BUSINESS ENVIRONMENT INDICATORS
8.	Ease of Doing Business	32	54	44
9.	Number of Procedures to Start Business
10.	New Business Density (New Registrations per 1000)	0.5	4.8	3.0
11.	Time to Export  (Days)	15	17	17
12.	Time to Resolve Insolvency (Years)
PRIVATE SECTOR INVESTMENT INDICATORS
13.	Investment in Infrastructure	–	–	–
14	Private Foreign Direct Investment	-0.9	-3.2	2.4
15.	Gross Fixed Capital Formation (% of GDP)	18.8	19.9	24.9
16.	Gross Fixed Private Capital Formation (% of GDP)	–	–	–
FINANCIAL INDICATORS
17.	Government Debt	–	84.7	40.8
18.	Total Financial System Deposit	51.6	43.1	66.9
19.	Bank Capital to Asset Ratio	9.0	9.1	7.5
20.	Bank Non-Performing Loans (To Total Gross Loans)	5.0	16.7	5.2
21.	Domestic Credit to Private Sector (% of GDP)	53.9	50.8	55.4
22.	Real Interest Rates	–	3.2	3.2
23.	Interest Spread Rate (% Points)	–	3.8	4.1

INFRASTRUCTURE

#	INDICATOR
	INFRASTRUCTURE INDICATORS
1.	Air Transport (Thousands Registered Carrier Departures Worldwide)	7.6	9.2	4.4
2.	Port Container Traffic  (thousand TEU)	1806	–	–
3.	Electric Power Consumption  (kWh per capita)	3832	3895	6289
4.	Power Outages in Firms in a Typical Month (Number)	0.2	0.3	04
5.	Mobile-Cellular Telephone Subscriptions (Per 100 People)	149.1	116.4	127.7
6.	Individuals Using the Internet (%)	62.8	72.6	74.1

MARKET POTENTIAL INDICATOR

#	INDICATOR	POLAND	HUNGARY	CZECH REPUBLIC
1.	Market Size	4	1	2
2	Market Intensity	58	60	47
3.	Market Growth Rate	57	37	41
4.	Market Consumption Capacity	47	44	48
5.	Commercial Infrastructure	69	66	74
6.	Economic Freedom	64	62	69
7.	Country Risk Assessment	74	51	67
8.	Market Receptivity	14	26	22
	OVERALL	30	24	27

APPENDICE 3: SOUTH ASIA

#	INDICATOR	INDIA	BANGLADESH	SRI LANKA
ECONOMIC & SOCIAL INDICATORS
1.	Labor Force	481.2	277.6	84
2.	GNI (Per Capita)	1570	1010	3170
3.	GDP	7.3	6.0	6.5
4.	Inflation	10.9	7.5	6.9
5.	Exchange Rate ( To the USD)	60.5	79.9	129.1
6.	Imports ( % of GDP)	28.1	26.8	32.0
7.	Exports( % of GDP)	25.2	19.5	22.5
BUSINESS ENVIRONMENT INDICATORS
8.	Ease of Doing Business	142	173	99
9.	Number of Procedures to Start Business
10.	New Business Density (New Registrations per 1000)	0.1	0.1	0.5
11.	Time to Export  (Days)	17	28	16
12.	Time to Resolve Insolvency	4.3	4.0	1.7
PRIVATE SECTOR INVESTMENT INDICATORS
13.	Investment in Infrastructure	275483	7518	3103
14	Private Foreign Direct Investment	1.5	1.0	1.4
15.	Gross Fixed Capital Formation (% of GDP)	29.7	28.4	29.2
16.	Gross Fixed Private Capital Formation  (% of GDP)	21.9	21.7	22.4
FINANCIAL INDICATORS
17.	Government Debt	50.3	–	79.2
18.	Total Financial System Deposit	65.6	50.2	35.3
19.	Bank Capital to Asset Ratio	6.9	6.0	8.2
20.	Bank Non-Performing Loans (To Total Gross Loans)	4.0	8.6	5.6
21.	Domestic Credit to Private Sector (% of GDP)	51.9	41.8	29.2
22.	Real Interest Rates	3.8	5.4	5.5
23.	Interest Spread Rate (% Points)	–	1.8	2.4

INFRASTRUCTURE

#	INDICATORS	INDIA	BANGLADESH	SRI LANKA
INFRASTRUCTURE
1.	Air Transport (Thousands Registered Carrier Departures Worldwide)	681	28	33
2.	Port Container Traffic  (thousand TEU)	10653	1571	4306
3.	Electric Power Consumption  (kWh per capita)	684	259	490
4.	Power Outages in Firms in a Typical Month (Number)	13.8	64.5	4.1
5.	Mobile-Cellular Telephone Subscriptions (Per 100 People)	70.8	74.4	95.5
6.	Individuals Using the Internet (%)	15.1	6.5	21.9

MARKET POTENTIAL INDEX

#	INDICATOR	INDIA	BANGLADESH	SRI LANKA
1.	Market Size	2	37	4
2	Market Intensity	47	36	58
3.	Market Growth Rate	41	76	87
4.	Market Consumption Capacity	48	56	40
5.	Commercial Infrastructure	74	14	14
6.	Economic Freedom	69	46	39
7.	Country Risk Assessment	67	64	33
8.	Market Receptivity	22	8	8
	OVERALL	27	46	21

APPENDICE 4: SUB SAHARAN AFRICA

#	INDICATOR	KENYA	NIGERIA	SOUTH AFRICA
ECONOMIC & SOCIAL INDICATORS
1.	Labor Force	17.2	54.2	19.5
2.	GNI (Per Capita)	1160	2710	7410
3.	GDP	5.0	6.1	2.3
4.	Inflation	5.7	8.5	3.3
5.	Exchange Rate ( To the USD)	86.1	155.3	9.7
6.	Imports ( % of GDP)	33.2	13.0	33.2
7.	Exports ( % of GDP)	17.9	18.0	31.0
BUSINESS ENVIRONMENT INDICATORS
8.	Ease of Doing Business	136	170	43
9.	Number of Procedures to Start Business
10.	New Business Density (New Registrations per 1000)	–	0.9	6.5
11.	Time to Export (Days)	26	23	16
12.	Time to Resolve Insolvency	4.5	2.0	1.6
PRIVATE SECTOR INVESTMENT INDICATORS
13.	Investment in Infrastructure	6909	25974	25387
14	Private Foreign Direct Investment	0.9	1.1	2.2
15.	Gross Fixed Capital Formation (% of GDP)	20.4	14.5	20.0
16.	Gross Fixed Private Capital Formation (% of GDP)	–	–	13.1
FINANCIAL INDICATORS
17.	Government Debt	–	10.4	–
18.	Total Financial System Deposit	37.2	19.2	59.6
19.	Bank Capital to Asset Ratio	11.8	10.3	7.7
20.	Bank Non-Performing Loans (To Total Gross Loans)	5.0	3.2	3.6
21.	Domestic Credit to Private Sector (% of GDP)	31.6	12.6	149.5
22.	Real Interest Rates	10.9	10.2	2.4
23.	Interest Spread Rate (% Points)	8.7	8.8	3.3

INFRASTRUCTURE

#	INDICATORS	KENYA	NIGERIA	SOUTH AFRICA
INFRASTRUCTURE
1.	Air Transport (Thousands Registered Carrier Departures Worldwide)	79	52	186
2.	Port Container Traffic  (thousand TEU)	853	1011	4595
3.	Electric Power Consumption  (kWh per capita)	155	149	4604
4.	Power Outages in Firms in a Typical Month (Number)	6.3	36.4	–
5.	Mobile-Cellular Telephone Subscriptions (Per 100 People)	71.8	73.3	145.6
6.	Individuals Using the Internet (%)	39.0	38.0	48.9

MARKET POTENTIAL INDEX

#	INDICATOR	KENYA	NIGERIA	SOUTH AFRICA
1.	Market Size		6	5
2	Market Intensity		15	46
3.	Market Growth Rate		55	61
4.	Market Consumption Capacity		25	1
5.	Commercial Infrastructure		4	59
6.	Economic Freedom		34	55
7.	Country Risk Assessment		27	58
8.	Market Receptivity		11	9
	OVERALL		8	18

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