Friday, November 07, 2008 Mandaue biz leaders optimistic about prospects in Middle East
TRADE visits to countries that are likely less affected by the US financial storm will keep the Mandaue Chamber of Commerce and Industry (MCCI) Inc. busy in the next few months as part of its thrust to explore new markets.
After surveying possibilities in Eastern Europe, Russia, Malaysia and Taiwan in the past six months, MCCI is eyeing a visit and forging trade partnerships with business leaders in the Persian Gulf, particularly the Middle East, before the year ends.
MCCI president Eric Mendoza, who is also Philippine-Qatar Business Council chair, believes that these oil-rich nations are less affected by the global economic turmoil that was sparked by the US sub-prime crisis because they practice Islamic banking that prohibit them from investing in any financial institutions in the US.
Islamic banking has the same purpose as the conventional banking but operates under the principle of Islamic rules on
transactions or Sharia, which discourages the imposition of interest rates and investing in businesses that offer goods or services contradictory to its principles.
While the banking system in the Gulf Region is not expected to be affected by the US financial crisis, the Arab News had reported that Gulf nations are worried about their huge foreign investments and the impact of lower oil revenues.
During the MCCI’s visits to various countries, Mendoza noted that foreign businessmen and potential investors are primarily concerned with the political stability in the Philippines and the cost of investment in Cebu as compared with other nations, like China.
“But we assured them that our country is addressing our bureaucracy while Cebu has good intervention systems such that private groups, like us, always assist investor concerns to make them comfortable here,” he told reporters in a press conference last Wednesday.
He said Cebu’s competitive advantages include cheap cost of operation and abundant supply of workers who can speak English. These advantages sustain the business group’s confidence in Cebu’s capability to compete globally, regardless of who will be president of the United States, he added.
MCCI vice-president for internal affairs Glenn Soco said, though, that President Obama’s victory and advocacy for change has “inspired” and added more optimism among businessmen.
During their overseas visits, Mendoza observed that the foreigners do not have enough knowledge about Cebu. This challenged MCCI to present to them investment and trade opportunities in Cebu in areas like tourism, high-end furniture, gifts, houseware, fashion accessories and training services, among others.
“We told them to actually come, experience Cebu and get their answers here. They promised that they will come. When they do, we will partner with the Department of Tourism in welcoming and educating them,” Mendoza said.
Delegates from MCCI went to Eastern Europe in June, Russia in September, and to Sabah (Malaysia) and Taipei (Taiwan) last month.
In Russia, MCCI inked a memorandum of understanding with the Vladimir Region Chamber of Commerce and Industry that prompts the two groups to support each other in trade promotions and business developments. (NRC)
