Salam International: An Arabian thoroughbred (page 2 of 2)

"With big companies coming to our market, nobody suffers more than us," says Issa.

"Over the last two years, Qatar has been over publicized as a destination. The competition in the UAE already exists. Qatar and the UAE are our strongest markets. The other economies in the region are basically dying and so everybody is attacking vibrant markets like Dubai and Qatar."

However, with a population of barely 850,000, Qatar is a small market. And when competition from overseas enters such a market, it hurts. Issa admits that the excessive competition has hit his companies as well.

"Being a large company in such a small market, we have suffered for a few years, though I must add that now we are making a comeback. We were able to maintain, but not take advantage of the growth of the market because more companies keep coming and they want to get a foot in the door. They are buying their market share but, unfortunately, they have spoiled it for themselves and for us," says Issa, referring to the sharp drop in prices brought about by the new competition.

But Issa is optimistic about the future. He says that competition is becoming more sensible as firms realize the damage they caused to the market. He says that with the economy booming, the local market is also increasing in size, though not enough to accommodate all the competition.

"The cake is getting bigger," he says, "probably three or four times bigger, but it is good enough only to feed the local players. With outsiders coming in, our cake is getting spoiled."

While fighting to protect his home turf against competition, Issa is also taking the battle to enemy territory. He has now launched an aggressive expansion program that will make his company's retail chain a truly regional player.

"We have plans to franchise our department stores in many more countries and become a truly regional player," says Issa. "There is great opportunity for us to increase our presence regionally in the four sectors where we operate."

The strategy is timely since many countries in the region are joining the World Trade Organization, which is forcing them to adapt their business laws and open their markets to competition from overseas. Issa says that his company is well poised to enter into key markets as they open up. However, he complains, about the speed of reform.

"They are taking about reform, talking about the need for reform. The reforms are social and economic, and political on top of that. We can see the awareness, and the awareness came from the needs. The whole world is changing, and we have to change. So it's imminent, whether it's in two years, three years, five years."

But one major issue over which neither Salam or any other business in the region has any control is the political climate, which has sharply deteriorated in the last few years. Issa admits that this is the biggest hurdle for him. "The only problem we are facing right now is the political ambiance," says Issa.

"This is our biggest challenge. We don't have much to do as a business community. We are just hoping that we have wise politicians, politicians with vision."

Meanwhile, Issa is going ahead with his plans of making Salam a regional player that can not only take on the competition but also survive and thrive despite any political instability in the region. The company that he took over nearly three decades ago is looking stronger today than ever before. For Qatar and Salam International, the future has never been brighter.