An investigation into the impact of continuing Middle East conflict on business development of SMEs throughout Middle East

By

ACKNOWLEDGEMENT

I would like to thank to my supervisor supporting me throughout my project and giving his valuable suggestions. Finally thanks to all my friends and family for their utmost support and inspiration.

DECLARATION

I, (Your name), would like to declare that all contents included in this dissertation stand for my individual work without any aid, & this dissertation has not been submitted for any examination at academic as well as professional level previously. It is also representing my very own views & not essentially which are associated with university.

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ABSTRACT

The world economy is currently going through a serious financial upheaval that sparked off in the United States and has spread to Middle East and the rest of the world. The crisis has already led to the collapse of influential banks and firms as well as to recession in several countries, some consider such consequences as just the tip of the iceberg and that the worst is yet to come. Small and medium sized enterprises, or SMEs, are widely recognised as being the major contributors to economic growth, job creation and economic activity in most developed nation countries In the globalization integration era, the business environment is becoming fierce than before; organizations of all types and sizes are facing continually changing situation externally and internally. Companies have to take appropriate actions to deal with these challenges. Geopolitical risk has increased substantially in the Middle East due to rising food prices. The area is especially sensitive to the global economy, for its energy resources (concentrates more than 60% of total reserves of oil and nearly 50% gas) and the increase in volatility is impacting significantly on oil prices. The social upheavals have caused the fall of autocratic regimes in Tunisia and Egypt. Gulf countries, like other oil exporters, will face a decline in oil revenues, for it is certain that oil prices will drop to levels lower than it was before the crisis. But the majority of these countries will be able to balance their budgets with the price of oil in the range of 60 to 70 dollars a barrel. Small and medium enterprises in the Middle East are strongly toward recovery from the effects of the global financial crisis, which shows the abundance of economic activities across the entire region, and in such a climate, the positive active, as we see a significant increase in the volume of spending on enterprise applications software, which enjoys a wide range of strategic importance, especially in the UAE and Saudi Arabia.

TABLE OF CONTENTS

ACKNOWLEDGEMENTII

DECLARATIONIII

ABSTRACTIV

CHAPTER 1: INTRODUCTION1

Background of the research1

SMEs and the Economy2

The main advantages offered by SMEs3

The Middle East Scenario4

The Principal Risks That Threaten the Professional Sector5

Effects of Global Recession5

Aims of the Study10

Research Questions10

CHAPTER 2: LITERATURE REVIEW12

The Importance of SMEs in a Global Economy16

The Impossible Peace in the Middle East19

The Future of the Oil Industry20

Bad Times for Debt21

Syria Economic Conditions21

Egypt22

Internationalization Process25

Internationalization26

CHAPTER 3: METHODOLOGY29

The Research Process29

Literature Search31

Inclusion and ...