7/29/09 -- Interview on Gulf News: http://www.gulfnews.com/business/Economy/10335799.html

US firms 'must view Dubai as more than quick financial hit'
America has finally awakened to understand it's not the only market in the world. Now it understands what happens in Dubai has an impact on what happens in Detroit, Reid says.

By Jane Ferguson, Business Features Writer
Published: July 29, 2009, 22:33

Dubai: "Most of the time a person would have come here and gotten their money and ran," says Morris Reid, sitting in the Emirates Towers Hotel lobby.

The commercial diplomat who worked as an aide for the Clinton administration has seen a lot of the region since Barack Obama won the presidency last year. And he plans to encourage his American business counterparts to stay.

Lobbyist and business consultant Reid is managing director of BGR Group, which represents Fortune 500 companies, non-profit organisations and governments.

An ardent Democrat, he says he is bringing US business to the Gulf in reflection of the new president's diplomatic drive here.

Describing his work as "facilitating opportunities", he argues that the global recession has forced a change in the commercial relationship between the US and this part of the world.

"America has finally woken up to understand that we're not the only market in the world anymore," said Reid. "Now we understand that what happens in Dubai has an impact on what happens in Detroit."

The historic pattern of the GCC financing US business in tough times, he says, is something he is working to change.

"This part of the world cannot continue to fin-ance the world and not get anything in return," he stressed. "Everyone is feeling the pressure of the financial storm. I actually think that is good. It actually puts everyone on a level footing."

Advocating the Obama administration as having a more honest and open dialogue with this region's business and political leaders, he used the DP World disagreement in 2006 as an example of what needed to change.

"I would submit that if they had gone with people that had fundamentally their own interests in mind, the people would stand with them," said Reid. "You want people that will stand with you in good times and in bad. It was a one-way relationship."

A major part of convincing investors here of the integrity of the new relationship is also good business practice, explains Reid, as these businesses are here to set up shop.

In a region that wants to attract longer-term business relations and create jobs, they must invest in those who will establish a permanent presence.

"What we're looking at first and foremost is build the business, domicile the business here in the GCC, grow the business in the GCC and then look at opportunities in ancillary businesses in this space."

A major selling point in that is the creation of jobs and infrastructure for host nations.

"Jobs are needed here. You have a population that's very young, very educated - they need jobs. So when people talk about the 2020, the 2030 [plans], the critical thing about those are jobs. So instead of continuing to invest in businesses that are outside of this region that are not creating jobs, they need to re-think what they are doing."

This is key to the new business relationship, he explained, as he works to encourage Gulf investors to steer away from flashy brands that bring little long-term benefit to the region, and invest in businesses that will base themselves here.

"I believe that you shouldn't make bad investments," he said. "One of the things that I always tell these guys is to stop buying brands. A lot of the time in this region people bought the big brands because they wanted to be associated with them, it was an ego thing. It's great to invest in Volkswagen and it's great to invest in Ferrari and those things, but will those create jobs here," he added.

"The people from the GCC shouldn't always run to do business just because people are Americans. And that's what I mean by buying those brands and wanting to be associated with those brands."

Buying into businesses that are looking towards a physical presence here levels the playing field too, he adds, and will create a proper partnership.

"Make the investments with people that are like-minded and have as much to lose as you do," is how Reid puts it.

"Most people in this region love America. They want to do more business with America, and because of President Obama they are much more enthusiastic about it. And so what I'm trying to tell these guys is 'come on in and get your feet wet and find a partner for the long run - not a quick financial hit'."