On the Scene Report / KOTRA -- Middle East & Africa Top Korean companies are well known in the Emirates and in several areas such as automobiles, mobile telephony, consumer electronics and construction the products of Korean companies have been well received in the local market. Korean car manufacturers Hyundai and Kia have been doing exceedingly well in recent years. The local agent for Hyundai and Kia vehicles, Juma Al Majid Est., has reported that overall sales figures have more than doubled, and for some models even tripled during the past 2 years. The new 2007 models have already hit the market and are being well received. Korean automakers enjoy an ever increasing share of the Emirati market. The most important reasons for the growing popularity of Korean vehicles in the Emirates are highly competitive pricing, proven quality, and low maintenance costs. LG and Samsung mobile telephones have reported increasing sales in the country. Both companies have introduced a range of models that are second to none in terms of aesthetics and features. Korean products including refrigerators, washing machines, microwave ovens, air conditioners, vacuum cleaners, LCD and plasma screen TVs have gained wide respect and are ahead of the pack in household and entertainment electronics. Competition has intensified in this sector particularly from Japanese, European, and more recently, Chinese companies. But the two most prominent Korean companies in this sector -- LG and Samsung -- have been able to carve out a significant share of the market through innovative technology, competitive pricing and aggressive marketing strategies. Korea has been successful in gaining a slice of the surging demand for construction activities in the UAE by winning highly prestigious building construction and power project contracts. For example, Samsung Engineer won one of the most prestigious and high profile building projects in the UAE, the Burj Dubai. Upon completion this building is expected to be the world's highest tower at more than 700 meters. In addition to its prowess in the construction industry, the company is also a leading player in the field of power projects. The expertise and innovative technology of Korean companies in the construction field remain highly regarded in the UAE. Other areas in which Korean companies have gained a noticeable presence include textiles, garment accessories, valves, personal computing hardware, electrical fittings, electrical equipment and supplies, and heavy construction machinery. Korean IT products in the UAE Korean companies have had mixed success in tapping the local IT market. The main areas in which Korean firms have done well include IT hardware like PC monitors, laptops, CD/DVD discs and drives, computer mice, keyboards, and memory cards. The aforementioned IT hardware products produced by Samsung and LG command a major portion of the Emirati market. With their competitive pricing, proven features and functionality, high product quality and aggressive marketing these companies stand out among the leading international players in the field. To their credit, Samsung and LG have entered into tieups with leading local distributors who possess up-to-date knowledge of local market conditions. Aside from the hardware products mentioned above, success for Korean companies has been quite limited. For a growing number of PC hardware components including USB drives, floppy discs, CDs, hard drives, monitors, mice, keyboards, motherboards, external portable hard drives, external ports, speakers, and cases China and Taiwan are taking a larger chunk of the market due to extremely competitive pricing. It has become nearly impossible for Korean manufacturers of many of these products to compete with Chinese companies who sell their goods at prices 75% lower than their Korean competitors. In the area of software solutions, Korean companies have little or no presence in the UAE. Instead, software solutions for all manner of business and personal use are the product of American and European companies. While both large and small IT companies from overseas such as Microsoft, IBM, Apple, Verizon, SAP, Norton, McAfee, HP, Dell, Acer, and Oracle have dominated the Emirati software market to date, Korean companies are conspicuous in their absence. KOTRA's activities in the UAE The Dubai office of the Korea Trade and Investment Promotion Agency (KOTRA) was established in 1976. Reflecting the importance of its role as regional hub, Dubai was designated as the KOTRA headquarters for the Middle Eastern and African region in 2002 in order to manage the 16 Korea Trade Centers located in the region. KOTRA's Dubai office has played a vital role in fostering bilateral trade and consequently good relations between Korea and Middle Eastern and African countries in general and the UAE and Korea in particular. Over the years, KOTRA Dubai has been responsible for carrying out a number of trade and investment promotion activities. The activities of the KOTRA office Dubai have notably included a number of things. Serving as a primary source of information for Korean businesspeople and companies wishing to do business in the UAE, KOTRA provides information about requirements for setting up a business in the country, business opportunities, important contact points, economic conditions, laws and regulations. The same services are provided to Emirati businesspeople, companies and government organizations that wish to know more about or establish a business in Korea. Meetings for Korean delegations are organized with local and regional businessmen and with relevant local government officials. Since the establishment of the Dubai office several hundreds of millions of dollars worth of business deals have resulted from KOTRA-facilitated meetings. The organization has helped hundreds of Emirati businesspeople travel to Korea annually for business purposes. Another example of the support KOTRA offers is the provision of recommendation letters to facilitate visa formalities. It also regularly organizes outbound delegations from the UAE to Korea to attend important trade exhibitions and fairs in Korea. Visits to Korea by Emirati delegations have resulted in significant amounts of business with UAE companies for Korean exhibitors. KOTRA also hosts Cyber Meetings where business representatives from both sides can communicate through a live video link. One more service is providing marketing support to those Korean companies lacking any marketing and sales infrastructure in the country through KOTRA Dubai's Jisawa program. This program helps relatively small companies gain a foothold in the dynamic local market. Experienced KOTRA sales consultants with sound knowledge of the local market assist Korean companies to find importers and partners for their products and services. KOTRA also carries out market research for those Korean companies that request the service. Typically, KOTRA Dubai carries out hundreds of market research assignments per year. Market research helps Korean companies get a better grasp of market size, current trends, competition, pricing, distribution structure, local production, imports, export and re-export statistics, import barriers, and local laws and regulations. The market research department also provides assistance to Korean companies searching for suitable buyers, suppliers and potential partners for investment. In May 2006, KOTRA's Middle East and Africa Headquarters opened a new chapter in KOTRA activities with the launching of KOPCO, the Korea Plant and Construction Support Center. Its primary objective is to help Korean companies tap the lucrative plant and machinery market in the Middle Eastern and African regions. The center aims to help Korean plant and machinery manufacturers and suppliers participate in and secure large contracts.