Business Culture in UAE

https://www.worldbusinessculture.com/country-profiles/the-uae/

This country profile has been produced to give a short overview of some of
the key concepts to bear in mind when doing business with contacts in the
UAE. It is intended to be an aid to business people who have commercial
dealings with counterparties in the country but should not be seen as an
exhaustive guide to this topic or as a substitute for more substantial research
should there be a need.
With this in mind, we have covered the areas which are key to a better
understanding of the cultural mindset underpinning business dealings in the
UAE and which are, quite often, extremely different from the approach and
thought processes associated with business in other parts of the world.

Background To Business in UAE

The United Arab Emirates consists of seven states: Abu Dhabi, Dubai, Ajman,
Fujairah, Ras al Khaimah, Sharjah and Umm al Qaiwain.
Each of these states has its own identity and individual characteristics (some
are more liberal in their attitudes to clothing etc. than others) but they also
share a great many commonalities and this country profile will concentrate on
the commonalities and, as such, can be used as a guide to all the states
which comprise the UAE.
A key issue to bear in mind when doing business in the Emirates would be
the cosmopolitan nature of the population. Over 80% of the population of the
region are non-locals. It is almost more likely, therefore, that you will be doing
business with a western expatriate then with a local Emirati.
A key question to ask before starting any project in the UAE would be: ‘Who
am I dealing with?’ Obviously dealing with an American expatriate will require
a different approach than when dealing with a local Emirati. Do some
research in advance and work out, not only who you will be dealing with
directly, but also who is the final decision-maker. You may be dealing with an
American – but are they reporting to a local, senior business man?
Another key issue to bear in mind is that beneath the veneer of
Westernisation, the Emirates remain a region heavily influenced by the all-
embracing influence of the teachings of Islam. There is little separation
between religion, life in general and business – they are all interlinked in a
way that is alien to most western business people. Show great respect to
local religious sensitivities at all times – not to do so could be a real deal-
breaker.

UAE Business Structures

The question, ‘Who am I dealing with?’ is also critical when thinking about
company structures and how they impact on the interface with any local
organisation.
Are you dealing with the subsidiary of an international organisation
headquartered outside the UAE? If so, they are likely to be heavily influenced
by the approach, processes and methodologies of the parent company – and
the key staff are likely to be expatriates.
If, however, you are dealing with a locally owned business you are likely to
find that they are family-owned and controlled. Nepotism is a still a way of life
and key positions will often be filled by trusted family members. Who can you
trust if not your own family? As with most family-owned organisations, the
company will be organised along strongly hierarchical lines with the majority
of power being held at the top by the senior, usually older, male family
members. It is important to try to get access to these key decision-makers,
even if you are initially being dealt with by more junior employees.
All major decisions will be made at the top and you will need influence at that
level. As all business is family and relationship-based it is absolutely vital to
be prepared to devote as much time and effort as necessary to relationship-
building. Every contact within an organisation is important as you may not be
aware of everybody’s connections. A seemingly lowly employee may prove to
be a favoured relative of a senior figure and therefore of greater potential help
than some other apparently more important contact.
It is also important to find out if the company you are dealing with is Sharia
law compliant. If a company is Sharia law compliant, this will mean that the
company is subject to the tenets of Islamic law and its actions will be
overseen by a Sharia council consisting of appointed Muslim clerics. This
Sharia council will monitor the activities of the organisation to ensure that no
Koranic edicts are transgressed,

UAE Management Style

Local management style will be directive and paternalistic. Managers are
expected to give clear and direct instructions to their subordinates and the
subordinate will be expected to carry out the instructions to the letter.
Lack of clear directional leadership will be seen as confusing (at best) and at
the extreme, as very poor management. As a result of this approach, it can
appear to outsiders that local managers are overly abrupt or even rude with
their staff.
It is important to think of these internal relationships in terms of a family. The
boss is the ‘father’ and the employees are the ‘children’. The father tells the
children what to do but also looks after them and cares for them. The
‘children’ do as they are told and show their father ‘respect’. It is a two-way
relationship in which all parties benefit.
One of the by-products of this paternalistic management style can be a lack of
initiative. Employees do what the boss tells them to do but no more. To do
more than you are told would be to disobey your boss. Therefore, make sure
that any instructions are delivered clearly, precisely and comprehensively. If
you don’t, things might not get done at all.

Business Meetings in UAE

Meetings can be confusing affairs as they are often subject to unforeseen
interruptions and alterations. Don’t expect the standard western approach of
meeting room, punctuality, agenda, action points etc.
Punctuality is variable in the UAE and a meeting scheduled to start at 10am
might start on time but may well start an hour or more late. It is also difficult to
predict the end time of a meeting with any degree of accuracy – which can
make it difficult to visit the UAE and arrange three meetings in the morning,
followed by three meetings in the afternoon. Two meetings a day is probably
the safest option.
It is not uncommon to arrive at your meeting to find your host in a meeting
with several other people and that these other people could be meeting your
host about completely disconnected issues. This process can make meetings
very lengthy and it can be a little frustrating if you don’t get the complete
attention you feel you deserve.
Some people recommend setting up meetings at the up-market local hotels
where you can serve coffee and refreshments – and where you are less likely
to be interrupted as frequently!
In the UAE, relationships are all-important and meetings will often start with a
lot of seemingly trivial small-talk. Do not underestimate how important this
relationship building process is to the overall success of your project. Make
time to chat – the rewards will flow in the long-run.

Teams in UAE
As with most strongly hierarchical cultures, teams tend to be thought of as a
group of individuals working to a strong leader.
The leader tells individual team members what to do and the team members
report back directly to the leader. Therefore teams tend to work vertically
rather than horizontally.
In any case, for a team to work well together, everybody needs to have
formed a strong bond. Traditionally teams would have consisted of extended
family members working together – and so the bonds were already formed. It
can be difficult to bring a group of locals together who do not know each other
and expect them to work easily as a team from the beginning. In such a
situation, people tend to display suspicion of one another and progress can
be slow.
Within any gathering of Emiratis hierarchy will always be present and even if
you wish to develop a flat system within the team it is likely that traditional
class and family issues will result in an unofficial hierarchy developing very
quickly indeed.

Communication Styles in UAE

One of the most difficult concepts for many other cultures to grasp is the need
to offer flattery in many business situations.
Arabic is a language of hyperbole, where the merits of others are praised and
overtly commented upon. Therefore, during the relationship-building process,
it is important to offer compliments to your host, his organisation and the
Muslim world in general. You, in return, will be complimented. Do not seem
distant, aloof or embarrassed if this happens – take the compliments in the
spirit they are given.
You may be asked questions which seem overly familiar at a very early stage.
Questions about marital status, children, religious convictions and personal
wealth are commonplace. If you feel uncomfortable answering such
questions, have a ready supply of stock answers at your disposal. Refrain
from saying that you are an atheist as this is incomprehensible in a society in
which the absolute existence of a monotheistic deity is a given.
People are reluctant to convey bad news to you about any business issues.
When this characteristic is combined with natural Arabic hyperbole it is
important to maintain a sense of perspective when being given very positive
feedback about any particular proposition.
Do not be surprised if people seem somewhat aggressive in meeting
situations. Speaking volubly and with a rising tone shows sincerity. This
denotes engagement and interest and is in no way a negative sign. (The
ability to converse in this manner is a much-admired characteristic in the
region.)
Finally, be aware of the importance of good, strong eye contact. A man’s
sincerity and honour can be judged by their ability to look you in the eye. This
can be somewhat uncomfortable for those from cultures with much weaker
eye contact (many Asian countries) but efforts must be made in this area.

Top Tips on UAE

Tip 1: Remember that, despite its Western feel, the UAE remains an Islamic
country and that great respect should be paid to Islamic tradition, beliefs and
sensitivities.
Tip 2: More than 80% of the population of the region are non-Emirati and you
are just as likely to be doing business with an American or an Australian as
you are with a local.
Tip 3: The Emirates consists of seven, separate states which are all slightly
different in feel and approach. If you are doing business outside the main
centres of Dubai and Abu Dhabi, make sure you do some additional research.
Tip 4: Do not be surprised if local companies are very family–oriented and
influenced. Nepotism is a way of life and is actively encouraged. You could
find several family members in the same meeting.
Tip 5: Company structures will reflect this family-orientation through a strong
sense of hierarchy. Try to find out the hierarchy of your counterpart – and look
into who the real decision-makers are.
Tip 6: As throughout the Arab world, age is worthy of respect and honourable
visitors will display respect to older people. Is it therefore a good idea to have
a few older heads in your delegation?
Tip 7: Do not assume that any expatriate you deal with who works for a local
company will be the final decision-maker. It is highly likely that the expatriate
(whatever their job title) will need to report to a local senior official for final
authority on any issue.
Tip 8: Management style is directional and employees expect managers to
lead in a fairly authoritative manner. This can mean that instructions are given
in a very direct, even abrupt way.
Tip 9: When in meetings, avoid pointing the soles of your shoes at your
counterparties as this could be seen as rude. It is also best to pass any
documents, refreshments etc. with your right hand.
Tip 10: Same gender tactility is very common – although public tactility
across the genders is very rare and frowned upon.
Tip 11: Meetings can often appear unstructured with no (or little reference to)
agenda. People may be present who are seemingly nothing to do with your
meeting.
Tip 12: Meetings will not always (in fact very rarely) start on time. Levels of
lateness can vary from a few minutes up to more than an hour.
Tip 13: Try not to arrange too many meetings on the same day as lack of
punctuality, the unstructured nature of meetings and heavy traffic can make it
difficult to pack lots of commitments into one time slot.
Tip 14: Arabic is a language of hyperbole. Therefore, it is common for
business associates to lavish extravagant praise on each other as part of the
all-important relationship building phase of doing business. Don’t feel inhibited
to join in this process.
Tip 15: People do not like to say ‘no’ or deliver negative news. It can be very
difficult to fully understand exactly how interested people are in your
propositions. Only perseverance and patience will reveal the true picture.
Tip 16: Don’t take ‘yes’ to mean ’yes’ every time. It could be being used as a
delaying tactic.
Tip 17: Emotional discourse denotes interest and engagement. Don’t mistake
loudness and emotion for hostility or anger.
Tip 18: You should endeavour to maintain strong levels of eye contact (same
sex) as strong eye contact denotes sincerity and trustworthiness.
Tip 19: Women play a more active role in business than in neighbouring
Saudi, although some older, more traditional Emiratis may maintain a
significant gender bias.
Tip 20: Dress conservatively, but very smartly. Modesty in dress code is
important for women. You will be judged partly on your appearance.

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