Gateway to the Outside: The Keys to Conquering New Markets

In a highly globalized world, foreign trade represents a fundamental tool for any economy. Thanks to it, companies transcend the limitation of targeting only a domestic market, accessing a much larger potential market, as well as new suppliers and customers. Knowing the strategic opportunities to invest and develop businesses in new markets is key to achieving this.

From Egypt to Chile, passing through India and China, each country offers unique cultural, regulatory, and financial characteristics that the Spanish business ecosystem must master to turn them into significant business opportunities.

To devise the right strategy for each country, as well as to mitigate the risks they face, expert recommendations are necessary to provide the entry keys and boost the presence of Spanish companies in the dynamic global market. This is what the Puerta al Exterior (Gateway to the Outside) sessions have facilitated, an initiative that CaixaBank has carried out in different cities in Spain, bringing professionals from its international offices closer to all interested companies. We spoke with them, and this is what they told us.

The Countries to Pass Through

In the field of international expansion, some countries are key because they serve as gateways to broader and more diversified markets. This is the case of Egypt, whose geostrategic position makes it the threshold to markets in the Gulf and East Africa. Or Turkey, a bridge between Europe and Asia. Also Mexico, with access to both the Pacific Ocean and the Atlantic and Caribbean, in addition to sharing more than 3,000 kilometers of land border with the United States, key to accessing Canada and the rest of the region.

In China, a constant presence and mastery of the language are needed to adapt to the diversity of interlocutors and the business culture.

Lili Ni Sun

According to Jordi Bausà, Spanish Desk Manager of CaixaBank's representative office in Mexico, this country is "an emerging market with great development capacity," as demonstrated by the Mexico 2030 Plan for investment in the country of 128 million inhabitants, consolidating its macroeconomic stability.

Chile also positions itself as an attractive destination due to its orientation towards free market and its network of trade agreements with more than 60 countries, which reduce import and export costs. Álvaro Castro, Representative Officer at the financial entity's representative office in Chile, also highlights the legal security for foreign investors and the 35 agreements signed with various countries, facilitating the expansion of companies in the country.

We recommend attending trade fairs and events to generate strategic connections, because Dubai presents many opportunities, but also a lot of competition.

Olga Jiménez

On the other side of the world, the major emerging economies of the Asian continent are betting on digitalization and renewable energies. India, currently the fifth largest economy in the world, offers "a range of possibilities for Spanish investment," according to Rahul Prakash, director of CaixaBank's representative office in New Delhi. The country offers competitive production costs and tax benefits for foreign investment. In China, a key center for global trade, business opportunities continue to grow for Spanish exports, according to Lili Ni Sun, Relationship Manager at CaixaBank's representative office in Beijing.

Trust and Patience, Essential Qualities

Each country presents unique business characteristics, and knowing and understanding them is fundamental for Spanish companies to adapt their commercial strategy to local characteristics and thus operate successfully in international markets.

In Egypt, it is important to have reliable local agents committed to the success of Spanish companies.

Luis Aspe

Trust is essential for countries like Egypt and Mexico, where the absence of language barriers allows for a fluid commercial and personal relationship with Spain, playing a determining role in business development. Likewise, the maturation periods of projects in both countries can be prolonged, "so we must have some patience, knowing that most opportunities subsequently conclude successfully," says Bausà.

Patience is also key in India and the United Arab Emirates, as they have a complex regulatory structure and a hierarchical business culture that varies by states and emirates, which can slow down processes. According to Prakash, bureaucratic procedures in India "make patience essential." He also highlights the relevance of personal relationships in negotiation.

In Turkey, the language can be a challenge. I advise working with Turkish-speaking interlocutors and attending local fairs to get to know the business ecosystem.

Buket Havucoglu

Strengthening ties is also fundamental in Turkey, where the importance of business connections is evident. Buket Havucoglu, Chief Representative Officer of CaixaBank's representative office in Istanbul, indicates that "having a local partner can be decisive in generating trust in the market" and consolidating operations.

On the other hand, in the countries of the Gulf Cooperation Council (GCC), Pakistan, and China, there is a need for a constant presence and mastery of the language to adapt to the diversity of interlocutors and the business culture and thus generate long-term business, says Lili Ni Sun.

The Importance of a Good Partner

We have already seen that accessing new markets involves understanding their particularities and designing appropriate strategies for each country. What are the key challenges and recommendations to consider to facilitate the entry of Spanish companies into these dynamic environments?

In Turkey, the language can be a challenge. Therefore, Buket Havucoglu advises working with Turkish-speaking interlocutors and "attending local fairs to get to know the business ecosystem." Additionally, given the dynamic nature of the market, agility and adaptability are essential, and she recommends staying abreast of trends and regulatory changes.

This adaptation is also key in India, where physical presence, "persistence, flexibility, and networking are fundamental to overcoming barriers and strengthening lasting business relationships," says Rahul Prakash. Also in the Mexican market, physical presence is key to building personal relationships and trust. Bausà advises relocating teams to Mexico or establishing the company locally.

The importance of establishing links with financial entities like CaixaBank to manage close bilateral relationships stands out in China and Egypt, where its director, Luis Aspe, highlights the importance of having reliable local agents committed to the success of Spanish companies.

In Chile, Dubai, and the countries of the Gulf Cooperation Council (GCC), social relationships are indispensable. Olga Jiménez Rodríguez, Chief Representative Officer of the Dubai representative office, recommends attending trade fairs to thoroughly investigate the regional market and participating in events organized by entities like the Spanish Business Council or the Chamber of Commerce to generate strategic connections, as these countries "present many opportunities, but also a lot of competition."

For Morocco, negotiation and trust are essential. Pablo Pérez Agustín, Relationship Manager Corresponding Banking at the financial entity's office in Casablanca, highlights seriousness and perseverance as keys to taking advantage of opportunities in this market, where Spanish products are appreciated for their quality and proximity.

International expansion requires preparation, adaptation, and long-term vision. Each market represents a particular universe of norms, cultures, and dynamics that requires Spanish companies to anticipate, build solid relationships with local allies, and maintain an open mindset to conquer new horizons.