McDonalds in the Gulf: The Impacts of American Brands in the Middle East by Max Freeman
Since its inception, the actions and policies of the United States government have been controversial around the world. Indeed, nearly all American foreign policy promises to satisfy some while greatly disheartening others. Nowhere is this better observed than the Middle East. Throughout areas of the region, “anti-Americanism” exists, driven by a complex history of diplomatic, militaristic and religious divides. However, this is not to say that those across the Middle East dislike all that America has to offer. Multitudes of American products are becoming increasingly popular, as globalization of US companies continues to make a large and lasting impact on the Middle East. The continued spread of American brands, goods and services is in the best interest of the United States as well as the promotion of stability and democracy in the Middle East.
Currently, the Middle East remains largely divided on its views of the United States. Countries within miles of each other maintain positions that are greatly divergent with one another. Most positively, known American allies Saudi Arabia and Israel have generally positive views of the US, with “decades of security cooperation and strong business ties” at the heart of such positions. Shared disapprobation for the Iranian government is also behind this partnership, as both nations have a vested interest in working with the United States to promote regional safety against an opposing force with significant resources. Contrast, many other Middle Eastern states have much more negative perceptions of the US. Lebanon, Jordan, Tunisia and Turkey all reported more than 50% “unfavorable” views of the United States in recent polls, with the continued war in Iraq as well as the well known American support for Israel as the main points of contention. On a global scale, international polls have shown that “the U.S. was less popular in the Middle East than in any other part of the world” indicating that en masse, public opinion for the US has room to improve. This raises the question of how best to approach a large-scale shift in public opinion for Americanism in the area.
In recent years, the growth of consumerism has spread to the Middle East, in turn boosting popularity of American goods. In the oil-rich region, American made cars are notably popular, known for their large size and “gas-guzzling” status. In the past 10 years, General Motors has risen to be the most popular US-based car retailer in the Middle East, with large-size SUVs such as the Chevy Tahoe, GMC Yukon and Cadillac Escalade rising to best seller status. The voluntary choice to buy larger, more expensive, US made cars when given the wide array of cheaper and more fuel efficient Asian and European vehicles demonstrates one of the many ways in which Middle Eastern populations have embraced certain elements of American life.
Outside of automobiles, American entertainment has also made substantial gains in regional popularity. Saudi-owned networks routinely play American shows throughout many countries in the area, with the Dubai-based Middle East Broadcasting Center (known as “MBC”) broadcasting hits like “Inside Edition” and ABC sitcom “8 Simple Rules” to millions of daily watchers throughout the region. Such practices have been hailed for the recent “blossoming” of American culture, as many who had never seen or heard an American voice have access to humorous and informative entertainment. Although many American films and television shows are censored by governmental and religious authorities in nations such as Saudi Arabia and the United Arab Emirates for violations including displays of nudity, drug and alcohol use, American talk shows and sitcoms have gained vast popularity as a means of promoting American ideals, values and interests.
Remarkably, Oprah Winfrey’s talk show “The Oprah Winfrey Show” has had, at its peak in recent years, a staggering 6 million daily viewers in the Arab world, demonstrating the mass appeal of uncontroversial, “feel-good” programming in the market. It seems likely that as more and more people gain access to cable and online streaming capabilities, the viewership of American television and film will undoubtedly continue to grow. While the popularity of American media is not indicative of the popularity of America itself, the prevalence of such programs is undoubtedly beneficial to improving the public image of the US abroad, as an uncharged, non-political or militaristic side of the American way of life is shown.
Despite the previously mentioned spread of both cars and entertainment in the Middle East, perhaps the most ubiquitous American export still remains food. The United States’ largest export is food, with global shipments from domestic ports totaling upwards of $130 billion. Especially in the Middle East, American chains offer ingredients and flavors not native to the desirous terrain. American restaurant chains and franchises have experienced recent booms in Middle Eastern nations. For example, in Saudi Arabia, American restaurants have steadily grown to a point where they now command more than half (50.2%) of the fast food market share. While originally only located on American military bases following the beginning of the Gulf War, McDonalds, KFC, Burger King and other favorites now have prime locations on expensive real estate near beaches and corporate centers. For delivery chains such as Pizza Hut and Dominoes, orders are so frequent that multiple call-centers have been established to process high volumes of orders. Indeed, in Kuwait, American food and its popularity has led to a broader societal trend towards westernization, as Kuwaiti academics have declared that “Anything American is popular here.” In fact, American food has become so popular that many of its adverse effects previously experienced in the US have spread to the region, as Kuwait now has a higher obesity rate than the United States and currently is in the top 10 most overweight countries in the world. Many in Kuwait have cited the affordability and speed linked to fast food chains as a contributing factor to this public health issue.
The popularity of American products in the Middle East appears to be irrefutable, as total annual exports from the US to the region are projected at over $115 billion. Domestically, gains to the United States from such globalization are clear, as the manpower needed to produce the goods desired throughout the Middle East has created more than 1 million jobs in the United States. A growing presence of American companies in nations that have previously lacked US brands will continue to promote Americanism abroad and work towards improving the global image of the US in a complexly divided region of the world.
With this in mind, the success of American ventures in the area are likely to continue to attract international investment into the region, as there now exists clear evidence that such projects can produce mass appeal. This will provide greater employment and consumer options for those living in these areas. Greater economic opportunity promises to reduce the number of individuals motivated to pursue radicalism violence, as a “lack of socio-economic opportunities” has been cited by international authorities as a driving factor towards extremism and terrorism. This will prove vital to the potential growth of modernizing and secularizing nations in the area. More broadly, consistent and sustainable economic growth, in the Middle East and rest of the world, continues to be a critical factor in determining a nation's long term success. As it relates to recent occurrences in the area, broader studies have found that “globalization and its use in economic development have profound importance both for the region's stability and the global economy”. Ideally, competition will transition from the chaos of the battlefield and into the capitalist space in the coming years.
This goal, a transition from mortars to markets and a broader normalization of international economic competition in place of diplomatic and militaristic conflict has recently actualized for US allies who formally lacked any kind of diplomatic or financial relations. Under the Israeli-UAE peace agreement recently signed in September, Israeli and Emirati companies can apply to operate in each other's economies. Just this month, Israeli shoe store “Scoop Shoes” opened a large location in the middle of Jamal Abdul Nasser shopping center in Dubai, with plans to open an additional 5 stores throughout the region. The company sells relatively low-priced shoes ($10-$100), that have garnered large appeal from the general populace. This appeal, of offering reasonably priced and desirable goods for the common citizenry, is incredibly similar to the above mentioned instances of the demand for American goods in the region. As time passes and market forces allow consumers in Israel, the UAE and other regional neighbors to get their favored products from former adversaries turned allies, a broader trend of eased relations and favorable outlooks on others may likely follow.
Long term goals for sustainable democratic governments in the Middle East will depend upon growth-capable national economies, of which international franchises will likely play greater and greater roles. While achieving the ultimate goal of supporting and maintaining prosperous, sustainable democracies in the region will require more than private investment into popular consumer brands, the above mentioned developments appear to be of an overall net benefit to both the United States and a multitude of Middle Eastern countries in the short and long term.
Max Freeman is a current sophomore in the college studying Economics and Systems Engineering. Max was born in California and is interested in global affairs and middle eastern conflict. After Penn, Max hopes to work in Finance or Government.