JEDDAH — It sounds ungrammatical, but MICE is coming. The pied piper in this case, however is not a capering itinerant clad in gaudy doublet and hose, but is the booming economy and a sober commitment to a business infrastructure parallel to, but not based on, oil.
MICE — Meetings, Incentives Conferences and Exhibitions — is the support industry that has boomed in the last two decades to facilitate introductions and meetings between countries and companies that want to do business. For nearly two decades Dubai thrived on it. However, MICE is leaving a ship that, if not sinking, is seriously overcrowded with exhibitions and events attracted by what Elie Rizk, CEO of MICE Arabia sees as the developing opportunities in Saudi Arabia.
Rizk believed that in the near future, businessmen would come to Saudi Arabia to do business direct rather than through the interlocutors of Dubai. He identified several reasons for his optimism which he has backed up by bringing his MICE Arabia group to Jeddah. Not least was the commitment of the Saudi government to make the Kingdom an attractive investment destination.
“The Saudi government has committed itself to building economic cities, developing an economy parallel to but not based on oil and to tourism,” he said. “Added to that is the fact that foreign investors can now own a company 100 percent, the fact that Dubai has become very expensive and that the SCT is committed to develop non-religious tourism to the Kingdom.” It all adds up to a very attractive package.
Rizk was encouraged by what he felt was the first step of the journey: “The discussion on easing access and tourism in Saudi has begun — I believe it will only be a matter of time. However all this will require commitment and a combined and synchronized effort by government departments.”
Saudi Arabia is the largest and most important market in the Middle East largely as a result of the oil price boom. “There is great interest from international companies who have been attracted to do business by the boom,” said Rizk.
The booming economy and the fact that business goes where the money is are the two factors for attracting business and therefore make a positive basis for attracting MICE which is by any other name is economic tourism.
Saudi Arabia thought Rizk had learned from the Dubai experience. “I believe that the Kingdom will function more successfully than Dubai — because while Dubai was speeding to position itself in the world, they lost their identity. They forgot who they were in the process. None of us wants this to happen to Saudis.”
Rizk thought Dubai was becoming expensive and overcrowded with events — some ten a day on average. Eighteen years ago the emirate went all out to attract business and succeeded by building a vibrant infrastructure. It worked, but was not enough to monopolize business. He thought that traditions of a business destination were a positive attraction for visiting businessmen. “Dubai does not have that attraction any more,” he said.
The whole basis of the MICE industry is the need for businessmen to get to meet and know each other. Before doing business in a new market or country, investors need to know how to approach a culture, have opportunities to do so and to visit the place to meet people and likely institutions with whom to connect. “Saudi Arabia has a rich culture and traditions. Carefully paced and solid development that preserves the culture I feel is the way forward.”
The MICE platform enables potential investors to meet the people, interact with them and establish common ground to work on. “It is the commercial version of the ‘handshake’ or familiarization trip. In Saudi Arabia especially face-to-face contact is of paramount importance as the industrial or business decision is usually the last one to be taken after many meetings and introductions,” Rizk explained.
The foundations of the platform for the MICE industry are in place. The Jeddah Economic Forum, which in eight years has put the Kingdom firmly on the map as a business destination, was a case in point. It proved, thought Rizk that advertising alone to promote a country is not enough. International events were invaluable, JEF being one among several high profile activities. Last year saw international powerboat racing, the recent Hail car rally and the visit by Manchester United football team — all these he thought were invaluable for raising the Kingdom’s profile.
