Why Arab Entrepreneurs are Missing Out on Latin America’s Potential
In 2022, Iván Ortiz Catalán arrived in Dubai with little more than a vision and a fierce determination to succeed. With limited capital, no network, and just a bit of english, he had to start from the ground up. It was a classic entrepreneurial story: stepping out of his comfort zone to seek new challenges in an unfamiliar market. But the journey was easy. The cultural, social, and economic barriers were significant, and the learning curve was steep. His only advantage? 18 years of entrepreneurial experience in his home country, Mexico, where he had built a successful company before taking the leap to the Middle East.
Five years later, Iván has experienced firsthand what it means to be an entrepreneur in the heart of the Gulf. And today, he holds a firm belief: Emirati and Qatari entrepreneurs have an incredible opportunity ahead of them, if they choose to expand into Latin America. With the right strategy and mindset, their success and growth in this region could be almost guaranteed. The market potential is undeniable, yet for reasons that remain unclear to him, many Arab entrepreneurs have yet to seize this opportunity.
In his opinion, the untapped potential of Latin America could provide a strategic advantage to any Arab business looking to diversify and expand globally. The question remains: Why aren’t the Arab entrepreneurs considering Latin America as their next frontier?
Latin America: An Untapped Diamond for Arab Entrepreneurs
While many Arab entrepreneurs focus their attention on saturated markets like Asia, Europe, and the United States, few have discovered the vast, untapped potential of Latin America. Countries like Mexico, Colombia, and Brazil offer a “blue ocean” of opportunities that remain largely unexplored by regional businesses.
With over 650 million consumers, Latin America presents a market ripe for investment. For an Emirati or Qatari entrepreneur, breaking into this market is not only feasible—it’s surprisingly accessible. No matter the industry, the chances for success and growth are within reach. Yet, despite the clear advantages, many Arab entrepreneurs continue to overlook this golden opportunity.
My Experience as a Latin Entrepreneur in the Gulf
Entrepreneurship in the Gulf taught me an invaluable lesson that will stay with me forever: the power of currency matters.
When I arrived in Dubai, I had a capital of 2 million Mexican pesos (about 100,000 USD). In Mexico, that amount would be more than enough to start a business: incorporate a company, rent commercial space, renovate, purchase equipment, and still have enough left to keep things running for at least a year.
But in Dubai, that same amount of capital lasted barely six months, and I had only just managed to register the company. I was thrust into the raw reality of entrepreneurship—starting from scratch, with every cent spent under a magnifying glass. As entrepreneurs, we understand that every penny saved today is oxygen for the business tomorrow.
This is why I’m convinced that entering Latin American markets with Dirhams converted into Pesos offers a huge competitive advantage.
Building a business worth 100,000 USD in Mexico is incredibly challenging for a entrepreneur almost impossible in under five years. The numbers are eye-opening: in Mexico, 8 out of 10 startups fail before reaching their third anniversary. This stark reality leads me to the next crucial point.
Cultural Barriers to Doing Business
While financial challenges are often cited as the primary reason for failure, the real issue for most entrepreneurs in Mexico lies deeper, it’s cultural. The truth is, not everyone is cut out to be an entrepreneur, no matter how much effort they put in.
In my experience, only those who live and breathe the entrepreneurial spirit, fully understanding and accepting the personal sacrifices required are the ones who transcend. And even then, very few are willing to pay that price.
In a society where resources are scarce, the natural instinct for an entrepreneur who earns their first profits make a mistake to cover basic needs whit that money. This is where the distinction lies. An Emirati or Qatari entrepreneur, however, would not face the same urgent need. They could afford to let their business grow, consolidate, and mature before reaping the rewards.
Beyond that, Gulf entrepreneurs benefit from a supportive environment: a network of parents, friends, and relatives with their own business experience who can guide, mentor, and reinforce their vision. This is a crucial advantage one that creates a strong foundation and fosters growth. And that brings me to the next key advantage that Gulf entrepreneurs could leverage when expanding into Latin America.
Structured Entrepreneurs: How Cultural Differences Shape Business Practices
When I launched my first business in Mexico, I did so with no license, no permits, and zero capital. My approach was far from traditional: I paid what I could, managed taxes however I could, and when I couldn’t keep up with them, I delayed payments or looked for ways to avoid them. It wasn’t a matter of choice; it was simply a reflection of the reality I faced—limited resources and a lack of support. At the time, this felt normal. Starting a business in Mexico, for me, was about survival rather than strict adherence to the system.
The reality of entrepreneurship in Mexico is that many businesses begin in this grey area, with a focus on making do with what you have, navigating obstacles as they come. My first business steps were only possible due to the support of my parents, but in real terms, my initial capital was essentially non-existent. The mindset I had was rooted in flexibility—adapting to circumstances and finding ways to make it work, even if that meant bending the rules.
However, when I arrived in Dubai, I was confronted by a completely different business environment. My first major barrier was accepting the financial demands required before I could even start working. In Dubai, I was required to pay upfront for a license before I could even begin generating income. To me, this didn’t make sense. I had always thought that the money from the business should cover the initial costs. I believed I should generate revenue first and then reinvest it into the necessary legal and regulatory fees. But in Dubai, the situation was the exact opposite.
I quickly learned that in the Gulf, initial capital is consumed by the very structure of your business: licenses, permits, insurance, and regulatory compliance costs. These must be in place before you can even open your doors. The notion that you could avoid these initial expenses or postpone them was foreign to me, and it was a difficult pill to swallow. For the first time, I was forced to confront the reality of business structure as not just a formality, but a necessity.
This was a hard truth, one that challenged my previous mindset and forced me to adapt. But over time, I came to understand that being structured is not just a technical requirement—it’s the foundation of how successful businesses are built. In Dubai, I learned that proper structure is a non-negotiable element of entrepreneurship. You can’t cut corners or avoid it. Instead, you have to embrace it, because it is this very structure that sustains and grows a company in the long term.
As I reflect on these experiences, I realize that this cultural difference isn’t just a professional shift—it also deeply influences personal habits and expectations. When I compare my journey to that of an Emirati or Qatari entrepreneur, the difference is striking. Entrepreneurs in the Gulf grow up in an environment where paying upfront for things like business licenses and regulatory costs is simply the norm. They don’t see it as an obstacle, but as an essential step in the process of building a legitimate and lasting business. For them, the idea of bypassing or delaying these costs is unheard of. They understand from an early age that a well-structured business foundation is key to long-term success.
This cultural mindset is what gives Gulf entrepreneurs a distinct advantage when entering new markets, including Latin America. While Latin American entrepreneurs often start with more flexible, improvised structures due to resource constraints, Gulf entrepreneurs are accustomed to operating within a highly regulated, structured environment. For them, paying for the necessary licenses and permits is just another step toward building a resilient and well-established business.
This difference in approach—where structure is seen as a stepping stone rather than a hurdle—can give Gulf entrepreneurs a distinct edge when expanding into markets like Latin America. By focusing on structure and professionalism from day one, they can build businesses that are solid and sustainable, avoiding the pitfalls that many Latin American entrepreneurs face as they navigate regulatory landscapes with limited resources.
The Gulf Advantage: A Unique Opportunity for Latin America
The Gulf countries are in the midst of a historic transformation—attracting investment, fostering innovation, and advancing at an unprecedented pace. Bringing this dynamic vision into Latin America could result in groundbreaking projects with immense success.
Gulf entrepreneurs would bring valuable assets to the region, including:
- A Global Perspective: Gulf entrepreneurs are accustomed to thinking on a global scale, something that would be highly beneficial in Latin America’s growing markets.
- Access to Capital: With a wealth of financial resources at their disposal, Gulf entrepreneurs can inject much-needed capital into Latin American businesses, accelerating growth and innovation.
- Proximity to Asia: Strategically located, the Gulf offers direct access to Asia’s booming trade network, creating opportunities for cross-continental partnerships and stronger global trade links.
These factors combine to give Gulf entrepreneurs a clear competitive edge when entering Latin America. With the right vision and investment, they could drive exceptional success across the region.
Iván’s Entrepreneurial Background
Iván Ortiz Catalán hails from Toluca, the capital of the State of Mexico, which is one of the country’s 32 states. Comparable to an emirate in the UAE, Toluca represents a key region in Mexico, boasting a young, dynamic population and diverse sectors, all of which create a fertile ground for innovation and business growth. If we were to draw parallels, the State of Mexico could be considered the country’s most significant “emirate,” given its economic importance and rapid development.
For over a decade, Iván played an active role in the National Chamber of Commerce, Services, and Tourism of Toluca Valley (CANACO), where he held leadership positions as Counselor, Treasurer, and Vice President. His time there provided him with a deep understanding of the entrepreneurial ecosystem in his region and reinforced his belief that Mexico offers abundant opportunities for those willing to invest.
Iván is confident that both Fernando Reyes, the current President of CANACO, and Laura González, the Secretary of Economic Development for the State of Mexico, would warmly welcome Arab entrepreneurs—whether they’re small business founders or leaders of multinational corporations.
Conclusion
Emirati and Qatari entrepreneurs are sitting on an untapped treasure—Latin America. While I don’t personally know any local entrepreneurs in the Middle East today, if I did, I would advise them to look toward this region as the next frontier for business.
At the end of the day, entrepreneurship is not just about creating wealth—it’s about building a legacy. That’s the goal all entrepreneurs, regardless of their nationality, should strive for: to leave a lasting mark and contribute to a better future for the next generation.
Having spent five years navigating the entrepreneurial landscape in the Middle East—particularly in the UAE and Qatar, where I’ve lived and experienced it firsthand—I can confidently say that this journey has transformed me. I’ve broken limits I didn’t even know existed, my resilience has surpassed every expectation, my ability to manage pressure has reached new heights, and my perspective on business has shifted dramatically.
Today, I can honestly say that money is no longer my primary motivator. I’ve come to understand that there are things far more valuable than wealth: the lessons learned, the resilience built, the impact made, and the legacy we leave behind.
The Middle East has shaped me into a better person, and though I’m still working hard to solidify my companies and establish my place in the market, I am certain of one thing: one day, I will have a seat among the region’s most influential entrepreneurs.
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