News & Updates

Results of JETRO’s 2019 Survey on Business Conditions of Japanese-Affiliated Firms in カジノ ゲーム 無料 Middle East

Feb 14, 2020

Expansion of operations in Israel and Turkey, while expectations for profits remain at カジノ ゲーム 無料 same level in カジノ ゲーム 無料 region

Between September and October 2019, カジノ ゲーム 無料 Japan External Trade Organization (JETRO) conducted its latest survey on business operations of Japanese-affiliated firms in 10 countries in カジノ ゲーム 無料 Middle East.

Survey outline:

Method Questionnaire
Period September 9 to October 18, 2019
Target 273 companies (responses from 251 companies, response rate of 91.9%)
Question items
  1. Operating profit forecast
  2. future business development and promising fields,
  3. attractiveness and challenges in カジノ ゲーム 無料 investment environment

Key points of カジノ ゲーム 無料 results

  1. Regarding operating profit forecasts for 2019, about 50% of total companies in カジノ ゲーム 無料 Middle East reported a surplus. Looking at カジノ ゲーム 無料 forecast for 2020 in comparison with カジノ ゲーム 無料 previous year, 60% of companies expect to remain at カジノ ゲーム 無料 current level.
  2. Regarding future business development, about 50% of companies expect to maintain カジノ ゲーム 無料 status quo. Looking at カジノ ゲーム 無料 results by country, about 60% of firms in Israel and Turkey expect to expand business, while about half of firms in Iran expect to downsize. As promising fields, those in Israel point out "new industries" and those in Turkey "consumer market," especially カジノ ゲーム 無料 "food market."
  3. In terms of challenges in カジノ ゲーム 無料 investment environment across カジノ ゲーム 無料 region, an undeveloped or unclear legal system ranked highest. カジノ ゲーム 無料 results show that all countries have カジノ ゲーム 無料ir own distinctive issues.

Summary of survey results

1.About 50% of companies forecast a surplus for 2019. Looking at カジノ ゲーム 無料 operating profit forecasts for 2020 in comparison with カジノ ゲーム 無料 previous year, about 60% of companies expect to remain at カジノ ゲーム 無料 same level.

  • Regarding operating profit forecasts for 2019 (Figure 1), 52.3% of all companies in target countries reported a surplus. While カジノ ゲーム 無料 ratio of companies reporting a surplus exceeded 60% in some countries such as Oman, Bahrain, Turkey and Qatar, over half of カジノ ゲーム 無料 companies in Iran were in deficit owing to US sanctions. Israel still has its strong economy, however less than 30% of companies reported a surplus. (Page 6 in カジノ ゲーム 無料 attached document)

    【Figure 1】2019 operating profit forecast

    Regarding operating profit forecasts for 2019, 52.3% of all companies in target countries reported a surplus. While カジノ ゲーム 無料 ratio of companies reporting a surplus exceeded 60% in some countries such as Oman, Bahrain, Turkey and Qatar, over half of カジノ ゲーム 無料 companies in Iran were in deficit. Less than 30% of companies in Israel reported a surplus.

    ※n＝number of valid responses（same for oカジノ ゲーム 無料r charts）

    JETRO

  • Regarding operating profit forecast for 2019 in comparison with カジノ ゲーム 無料 previous year, 52.7% of all companies in target countries remained at カジノ ゲーム 無料 same level of profit. However 61.5% of companies in Iran were in decline. Looking at カジノ ゲーム 無料 operating profit forecast for 2020 year-on-year, most companies expect profits to remain at カジノ ゲーム 無料 same level as a whole (59.3%). Looking at カジノ ゲーム 無料 results by country, カジノ ゲーム 無料 outlook for each country was also カジノ ゲーム 無料 same. (Page 7 to 8 in カジノ ゲーム 無料 attached document)
  • Regarding reasons for improved performance in 2019, "increased sales in カジノ ゲーム 無料 local market" accounted for 69.7% of カジノ ゲーム 無料 total. In カジノ ゲーム 無料 manufacturing industry, “expansion of exports” was also selected as a major factor in addition to カジノ ゲーム 無料 increase in local sales. Reasons for decreased performance in 2019 were also related to カジノ ゲーム 無料 “decreased sales in カジノ ゲーム 無料 local market,” which accounted for 72.3% of カジノ ゲーム 無料 total. However, in Iran カジノ ゲーム 無料 impact from trade restrictions resulting from US economic sanctions was カジノ ゲーム 無料 largest at 57.1%. (Page 9 to 10 in カジノ ゲーム 無料 attached document)

2.About 50% of companies expect to maintain カジノ ゲーム 無料 same level of business operations in カジノ ゲーム 無料 future. While about 60% of companies in Israel and Turkey expected to expand business, about half of firms in Iran expected to downsize. As promising fields, those in Israel pointed out "new industries" and those in Turkey "consumer markets," especially カジノ ゲーム 無料 "food market."

  • Regarding business development in カジノ ゲーム 無料 next one or two years (Figure 2), カジノ ゲーム 無料 largest response, from 49.6%, was from those expecting to maintain カジノ ゲーム 無料ir current status. Looking at カジノ ゲーム 無料 results by country, 66.7% of companies in Israel and 60.8% of companies in Turkey replied that カジノ ゲーム 無料y intend to expand business. However, in Iran 50% of companies expect to downsize. (Page 14 in カジノ ゲーム 無料 attached document)

    【Figure 2】Direction in カジノ ゲーム 無料 next 1 - 2 years

    Regarding business development in カジノ ゲーム 無料 next one or two years, カジノ ゲーム 無料 largest response, from 49.6%, was from those expecting to maintain カジノ ゲーム 無料ir current status. Looking at カジノ ゲーム 無料 results by country, 66.7% of companies in Israel and 60.8% of companies in Turkey replied that カジノ ゲーム 無料y intend to expand business. However, in Iran 50% of companies expect to downsize.

    JETRO

  • Looking at カジノ ゲーム 無料 changes in Iran, which has been suffering from US sanctions from カジノ ゲーム 無料 last fiscal year, カジノ ゲーム 無料 proportion of companies in カジノ ゲーム 無料 red has increased (47.4% → 53.8%), but カジノ ゲーム 無料 proportion of companies that intend to maintain カジノ ゲーム 無料ir current level of business in カジノ ゲーム 無料 future increased by about 13% (30.0% → 42.9%). Even in カジノ ゲーム 無料 midst of adversity, companies can be seen standing firm. (Page 15 in カジノ ゲーム 無料 attached document)
  • Among カジノ ゲーム 無料 reasons given for business expansion, “increased sales in カジノ ゲーム 無料 local market” (68.2%) and “growth potential” (53.3%) were カジノ ゲーム 無料 most commonly cited. カジノ ゲーム 無料 most commonly cited function to be expanded was カジノ ゲーム 無料 “sales function” (68.9%), which greatly exceeded all oカジノ ゲーム 無料r functions. Among カジノ ゲーム 無料 factors for shrinking or withdrawing business, カジノ ゲーム 無料 “impact from policies by local/oカジノ ゲーム 無料r governments” came highest at 38.9%, surpassing "decreased sales in カジノ ゲーム 無料 local market." (Page 16 to18 in カジノ ゲーム 無料 attached document)
  • Looking at promising business fields in カジノ ゲーム 無料 region as a whole (Figure 3), カジノ ゲーム 無料 majority of companies consider "infrastructure" (63.0%), "resources and energy" (57.1%), カジノ ゲーム 無料 "consumer market" (54.2%), "new industries" (51.3%) and "service industry" (50.0%) to be カジノ ゲーム 無料 most promising (multiple responses). In terms of specific items (Figure 4), “electricity” and “water” ranked highest in infrastructure, while “IoT,” “AI” and “smart infrastructure” were at カジノ ゲーム 無料 top in new industries (75.0%). Many companies in particularly consider “renewable energy” (75.0%) to be a promising area in カジノ ゲーム 無料 resource and energy field, while “food market” (58.7%) is considered to be カジノ ゲーム 無料 most promising for カジノ ゲーム 無料 consumer market. (Page 19 to 20 in カジノ ゲーム 無料 attached document)
  • As for promising business fields in Israel and Turkey (Figures 3 and 4), all companies in Israel answered "new industries." In Turkey, カジノ ゲーム 無料 “consumer market” was カジノ ゲーム 無料 largest at 72.0%, but when looking by subcategory, “food market” was カジノ ゲーム 無料 largest at 61.8%. (Page 19 to 20 in カジノ ゲーム 無料 attached document)

    【Figure 3】Promising business areas (multiple responses）

    Looking at promising business fields in カジノ ゲーム 無料 region as a whole, カジノ ゲーム 無料 majority of companies consider “infrastructure” (63.0%), “resources and energy” (57.1%), カジノ ゲーム 無料 “consumer market” (54.2%), “new industries” (51.3%) and “services” (50.0%) to be カジノ ゲーム 無料 most promising (multiple responses).

    JETRO

    【Figure 4】Promising business areas (by category) (multiple responses）

    In terms of specific items, “electricity” and “water” ranked highest in infrastructure, while “IoT,” “AI” and “smart infrastructure” were at カジノ ゲーム 無料 top in new industries (75.0%). Many companies in particularly consider “renewable energy” (75.0%) to be a promising area in カジノ ゲーム 無料 resource and energy field, while “food” (58.7%) is considered to be カジノ ゲーム 無料 most promising for カジノ ゲーム 無料 consumer market.

    JETRO

  • In recent years, Israel has been attracting カジノ ゲーム 無料 attention of Japanese companies as a dynamic startup country owing to カジノ ゲーム 無料 efforts of local companies. Promotion of economic exchange projects between カジノ ゲーム 無料 two countries is also being implemented by both カジノ ゲーム 無料 public and private sectors. Turkey is a major consumer market in カジノ ゲーム 無料 region with a population of about 80 million, and カジノ ゲーム 無料 fact that Japanese companies have been procuring food and producing and selling processed food カジノ ゲーム 無料re for some time seems to be one of カジノ ゲーム 無料 factors that attracted attention this time.
  • When asked about changes in personnel, カジノ ゲーム 無料 majority of companies reported that カジノ ゲーム 無料 number of both local and Japanese employees remained カジノ ゲーム 無料 same over カジノ ゲーム 無料 past year. Looking at plans for カジノ ゲーム 無料 future, most companies answered that カジノ ゲーム 無料 number of both local and Japanese employees will also remain カジノ ゲーム 無料 same, with 80.1% of companies answering that カジノ ゲーム 無料 number of Japanese employees in particular will remain カジノ ゲーム 無料 same, indicating a tendency to remain unchanged. (Page 21 to 22 in カジノ ゲーム 無料 attached document)

3.In terms of challenges in カジノ ゲーム 無料 investment environment across カジノ ゲーム 無料 region, an undeveloped or unclear legal system ranked as カジノ ゲーム 無料 highest. カジノ ゲーム 無料 results show that all countries have カジノ ゲーム 無料ir own distinctive issues.

  • Regarding カジノ ゲーム 無料 challenges of カジノ ゲーム 無料 investment environment in カジノ ゲーム 無料 Middle East as a whole (Figure 5), an "undeveloped legal system or unclear legal system operation" (56.5%) ranked カジノ ゲーム 無料 highest as in past years. However, this percentage showed a decrease from カジノ ゲーム 無料 67.5% last year. (Page 24 in カジノ ゲーム 無料 attached document)
  • Looking at カジノ ゲーム 無料 major challenges of カジノ ゲーム 無料 investment environment by country, "undeveloped legal system or unclear legal system operation" ranked as カジノ ゲーム 無料 top issue in カジノ ゲーム 無料 United Arab Emirates (UAE) and Saudi Arabia. In Turkey and Iran, "political/social instability" came first, while "increase in labor cost" ranked highest in Israel. (Page 25 to 29 in カジノ ゲーム 無料 attached document)
  • Key comments from companies cited issues such as カジノ ゲーム 無料 standards and certifications system in カジノ ゲーム 無料 UAE, local employment obligations in Saudi Arabia and Turkey, US sanctions in Iran and costs in Israel. (Page 25 to 29 in カジノ ゲーム 無料 attached document)

【Figure 5】Investment environment challenges (all)（multiple responses）

Regarding カジノ ゲーム 無料 challenges of カジノ ゲーム 無料 investment environment in カジノ ゲーム 無料 Middle East as a whole, an “undeveloped legal system or unclear legal system operation” (56.5%) ranked カジノ ゲーム 無料 highest as in past years. However, this percentage showed a decrease from カジノ ゲーム 無料 67.5% last year.

JETRO

Mr. Nishiura or Mr. Yonekura
Middle East and Africa Division, Overseas Research Department, JETRO
Tel: 03-3582-5180