Saudi & UAE trip & thinking memo_Dr_Star_Huang.pdf

0. The Purpose and Value of This Journey

As a founder with over two decades of experience in global trade and strategic market expansion,my past overseas journeys have often centered on business engagement: intensive client visits,supply chain research, pricing and technical negotiations, and channel evaluation and contracting.Traveling alone offers efficiency and focus—but it also risks falling into a transactionalmindset.

This trip with the Peking University Guanghua School of Management represented a shift from soloexecution to collective elevation—a journey of “traveling together to learn.” By setting asidepreset agendas and embracing a learner’s and observer’s mindset, I sought to re-understand thisland where civilizations converge.

The value of this journey lies not in how many clients were met, but in how many perspectives werereconstructed. Through five dimensions—political, historical, religious, social, and economic—Isystematically reexamined the foundational logic of the Middle East, transforming fragmentedexperiences into a structured understanding. The outcome: steadier partnership rhythm, higher quality partner selection, more inclusive negotiation frameworks, and long-term resilience amiduncertainty.

For a founder, integrating business collaboration with cultural dialogue and intellectual exchangecreates a higher level of competitiveness. Beyond winning cooperation through product value andcost efficiency, we build trust through understanding and respect, and strengthen long-termrelationships through shared vision. This, above all, was the most valuable insight of my journey.

1.1 Geography and Regional Layout
A Strategic Hub across Two Oceans, Three Continents, Five Seas,and Seventeen NationsSituated at the intersection of Asia, Europe, and Africa—and adjacent to the Indian and Atlanticmaritime routes while connecting the Mediterranean, Red Sea, Black Sea, Caspian Sea, and theGulf—the Middle East’s geography underpins its role as an energy corridor and a global tradenexus, shaping a persistent dynamic of great-power interplay and regional balancing.

1.2 Religion and Historical Continuity
Islamic Civilization’s Social Order and Business EthicsIn the Middle East, religion is not confined to private life; it organizes public order andbusiness routines. Prayer times, halal standards, Ramadan rhythms, and weekly rest patternsdirectly affect business schedules. The interplay between tribal and urban traditions forged aculture that prioritizes reputation, relationship, and commitment—remarkably aligned with ChineseVersion A1.0 | October 2025 | Dr. Star Huang | PowerFirst Technology Co., Ltd.principles of integrity in commerce.

1.3 Policy and National Visions
Saudi Vision 2030 and the UAE’s ‘Next 50 Years’Saudi Arabia drives diversification from resource dependence toward a comprehensive layout acrossmanufacturing, culture & tourism, sports, and high-tech. The UAE leverages free zones and globalplatforms in finance, logistics, and technology to attract capital and talent. Different routes,same destination: globally competitive modern economies.

1.4 Cultural Paradox
A Unity of Tradition and Modernity, Conservatism and Fashion, Openness andReserve, Religion and SecularismFrom attire to skylines, from religious ethics to technological entrepreneurship, from ancientfaith to future innovation, tension and balance are everywhere. In restaurants and hotels, peoplefrom a dozen countries share the same space—creating intense cross-cultural exchanges.Understanding this tension is the first step to cross-cultural negotiation.

2.1 Economic Differences and Sectoral Opportunities (Saudi vs. UAE)
Saudi Arabia: Under Vision 2030, infrastructure, manufacturing, and new consumption rise in tandem.Sports and culture & tourism drive both branding and industrial upgrading; localization in jobsand supply chains is accelerating.UAE: Dubai and Abu Dhabi form an integrated landscape of trade, finance, and innovation. Freezones reduce entry barriers; regional HQ effects are prominent; policies favor digital economy andclean energy.

2.2 Free Zones and Tax Regimes
Streamlined Registration, Transparent Rules, and Cost AdvantagesFree zones often allow 100% foreign ownership, corporate tax incentives, duty exemptions, andconvenient visas. Efficient registration and clear compliance standards enable SMEs to start lightand iterate fast.

2.3 Labor and Compliance:Localization Ratios, Workforce Mix, and Red Lines
Saudi Arabia emphasizes Saudization, requiring long-term planning in workforce composition andtraining. The UAE workforce is more international, yet strictly governed by contracts, visas, andinsurance compliance.

2.4 Field Observation: Entry Paths and Challenges for Chinese Firms
Strengths include supply-chain integration and cost efficiency; challenges lie in brand perception,cross-cultural communication, and partner selection. A ‘light-first, heavy-later’ strategy isrecommended to validate market fit and team capability.

Large enterprises lean on capital and supply-chain integration—JV/wholly-owned plants, long-termgovernment projects, and mega infrastructure. SMEs should enter with light assets, standardization,channel partnerships, and value-added services.

(1) Joint Development with Local Manufacturers: leverage local channels, supply chains, andnetworks; adopt profit-sharing; suitable for sectors requiring local certification and after-salessupport.
(2) Light Localization: representative offices or small ops centers in hubs like Dubai to validatemarkets, manage channels, and serve key accounts.
(3) Agency & Free-Zone Platforms: for highly standardized products, prioritize distributors andleverage free zones for logistics and cross-border settlement.

I summarize the logic as a trinity: appreciation (respect for culture and vision), warmth(sincerity and empathy in collaboration/communication), and shared interests (mechanisms for longterm alignment). When our macro understanding exceeds client expectations, we achieve resonanceand increase certainty

In practice, talk long-term value creation with owners; focus on KPI enablement with managers.This method has been repeatedly validated in cross-border collaborations.

During my visit to Saudi Arabia’s innovation hubs (such as THE GARAGE), I was inspired to elevateour company’s commercial real estate investments and leasing business toward developingInnovation Co-Creation Spaces.

The essence of this transformation is to turn “commercial property leasing” into an “entrepreneurial resource-sharing platform”, and to upgrade “rental income” into “ecosystemvalue.”

By breaking away from the traditional notion of physical space leasing, we are realizing asystematic upgrade fromSpace (Leasing) → Platform (Resource Sharing) → Ecosystem Resource Share (Collaborative Co-Creation).

This model creates a distinct competitive advantage beyond traditional leasing, repositioningcommercial real estate from “space provision” to “innovation empowerment”, and achieving dualgrowth in both economic returns and ecosystem value.

The region’s diversity is an excellent ‘global classroom’ for the next generation. Rather thana single-track overseas study plan, I recommend short-term university programs, industry forumattendance, and cross-cultural bootcamps—understanding the world by ‘walking with people’: howrespect and faith, order and freedom, tradition and progress coexist within one society.

For entrepreneurs, immersive cross-cultural experience enhances empathy and systems thinking—keyto staying composed and constructive in complex negotiations and multi-party games—while alsoenriching family conversations with more open values.

(1) Cognitive Elevation: From ‘Points’ to ‘Ecosystems’
Weave politics, religion, society, and economy into a coherent map to decide steadily amiduncertainty.

(2) Strategic Path: Light Mode, High Adaptation
Enter with the minimum viable unit; validate product, channel, and team fast; evolve toward alight–heavy hybrid localization system.

(3) Cooperation Logic: Enable the Other’s Value First
Discuss long-term value with owners and KPI paths with managers; align long-term relationsthrough win–win mechanisms.

(4) Organizational Capability: Cross-Cultural Mindset + Digital Operations
Culture grants understanding; data grants penetration. Use data to drive product and supplychain iteration; use cultural strength to build brand and trust.

(5) Based on insights shared by Ms. Wan Feng’an, former Vice President of J&T Express
Middle East, who summarized the “Three-Heart Principles” that define which companies arebest suited to enter Saudi Arabia—Confidence, Determination, and Patience—I further expanded this into the S.P.A.R.K. Model, a framework that defines the essentialtraits and mindset of global expansion talents.

S – Self-belief
Having firm confidence—believing in the mission, the team, and thefuture.

P – Perseverance
Demonstrating endurance and patience amid uncertainty.

A – Ambition
Thinking boldly, breaking boundaries, and striving for excellence.

R – Resilience
Facing challenges with positivity and enthusiasm, fueling creativity and action.

K – Kindness
Building win-win relationships through empathy, trust, andcollaboration.

✨ The S.P.A.R.K. Model—the fire of belief, the fuel of perseverance, the compass ofambition, the warmth of passion, and the strength of kindness—empowers global talents to ignite themselves, inspire their teams, and fulfill their mission, becoming the true driving force behind international expansion andsustainable success.