doing business in the 'gulf'

Sir Tokyo Sexwale · June 22, 2011

Question to anyone who may have had exposure to this kind of thing:

My Co is pitching for a client in the middle east (based in Qatar). To progress further, we need to submit our final documentation along with a payment of around $50k. I've been led to understand - by external & independent sources - that this is a form of bond, not a fee.

Once this is done, we then present to the client & should we win, we have to make a deposit of a given % of the expected contract value - which again is a bond (of sorts).

Questions -

have you come across this sort of thing before? It's a major company, not some shady outfit. We've been advised that it's to do with the legal system, Sharia law etc over there or whatever.

what happens to the cash? Is it an ESCROW kind of thing, i.e. where is the ownership of the funds - does the client deposit it into its bank acct for example?

Upon completion, how are the funds returned?

Anyone?

boohog · June 22, 2011

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