Processes that were straightforward and regular, such as simple expansion over borders, capital flow, and tax structure optimization, have changed dramatically. Jurisdictions in countries in the Middle East, however, such as the UAE, have arisen as leaders in the current business environment, and companies operating from such geographies have often benefited from the advantages offered.
About two decades ago, a wealthy individual of any country could incorporate a company in most offshore jurisdictions, open a bank account in that country immediately and easily trade internationally without worrying about taxation, KYC (Know Your Client) and AML (Anti Money Laundering) compliance, for example. Over time, however, the rules have changed dramatically. Most prominently, virtually every country in the world taxes individuals based on their residency and taxes companies based on the location in which they are controlled and managed. Moreover, a common saying in the finance world is that a few decades ago it was difficult to get your money out of the bank, while these days it can be a nightmare to get your money into the bank.
"20 years ago, when we started trading goods cross-border, our biggest issues to solve were lack of communication and accessibility. Travelling in China, for example, used to be a daunting task, as there were barely any English speakers, and no smartphone apps that could translate, so one would have to travel to China with a dictionary.", tells Mostafa Nasser Al-Rashed, who is a founding member of Oriental Trading Services (later rebranded as OTC “Orient Trading & Consultancy"). The company started as an international general trade company, but over two decades has grown to a multi-business group that includes a dominant arm that focuses entirely on facilitating operations for individuals and businesses, from their head offices in the UAE. Addressing modern challenges in international operations.
"I never intended to have a business that facilitates companies and individuals to operate internationally", Al-Rashed tells us. “However, given the amount of international trade we have dealt with in our first decade in business, friends, colleagues and partners started asking us for advice.” Business persons in this day and age face issues that started to emerge about a decade ago. "Contacts would come up to us with a difficulty, for example, of transferring money to a supplier in Southeast Asia. A client's payment order could get declined for a compliance process that can take weeks or months to clear, while is awaiting presold goods", Al Rashed continues. "Many advisors and consultants know how to advise individuals and businesses on matters that arise when operating internationally, but few implement their suggestions. We do not simply advise, we coordinate and then facilitate."
The tough global business climate has rendered the UAE a beacon of light, offering a regulation-advanced location for entrepreneurs and professionals. Al-Rashed adds: "I have been fortunate enough to take my first steps in business by connecting Europe and the UAE. The breadth of experience and understanding of business operations and culture I have accumulated in Europe are key for our international success and have given me a unique perspective of international business and an understanding of the opportunities the UAE has to offer internationally." Indeed, Al-Rashed enjoys great advantages given in knowledge and understanding of the culture and languages of Europe, he is fluent in both German and English, alongside Arabic, his native language.
"The trend of influx of business leaders and capital into the UAE keeps rising every year", summarises Al-Rashed. "While we rarely look for new clients, and are unlikely to accept new ones, we enjoy watching the UAE and its economic landscape, becoming an integral part of the world’s most dominant business locales."