Global economic uncertainty is causing some businesses to put the brakes on their overseas expansion plans. Yet it is precisely this hesitancy, combined with the unique business climate of the GCC, which makes 2010 an ideal time to establish your presence in the Gulf, argues Mohammad Irfan.

The revelation by Dubai World in November last year that it might have to default on some $60billion worth of loans sent shockwaves through the business world. Dubai, considered a cosmopolitan symbol of new Arab ambition and wealth, was transformed overnight into a castle made of sand in the eyes of the public. Some executives, wary of the possible knock-on effects of a real-estate crunch, shelved plans to expand into a region that is still, in the 21st century, something of a mystery to the western business mind.

Rightly so, no-one can be totally effusive about the situation in the Gulf, given the publicity surrounding the problems in Dubai. However, it is important to understand that Dubai is one of seven emirates that comprise the United Arab Emirates.