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1 DOING BUSINESS IN THE UAE By Suad Alhalwachi

Doing business in the uae

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Page 1: Doing business in the uae

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DOING BUSINESS IN THE UAEBy Suad Alhalwachi

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Some background about me!

Director of own company Operating in Dubai for 9 years Chartered accountant Educated in Bahrain, Iraq, Switzerland,

England, and New Zealand Bahrain national and New Zealand

citizen Married with 3 adult children Muslim

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Page 3: Doing business in the uae

Overview of this session

UAE demographics Doing business in the UAE Who does business in the UAE? What to expect What to wear for meetings Business greetings and gifts Dealing with refreshments Conducting meetings Effective Communication

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UAE Demographics

UAE has a young and ethnically diverse population, with a median age of 28 years

Emiratis represent approximately 19% of 4 million residents

Other Arabs and Iranians represent another 23% Asians, especially south Indians, are the largest

individual ethnic group, and comprise some 50% Western and East Asian expatriates account for

8%. Expats account for over 90% of the UAE

workforce4

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Doing business in the UAE

Companies establishing a local office must use a resident sponsor

A sponsor may be a UAE citizen or an institution

There are 13 free trade zones in the UAE (inc. Knowledge Village)

There is no federal tax legislation in the UAE. Decrees governing tax apply in each of the Emirates

Import procedures in the UAE follow standard international practice but restrictions apply to some items; for example, pork and alcohol

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Doing business in the UAE, continued…

The UAE weekend is Friday and Saturday Many businesses (but not government

offices) are open on Saturday Some offices work a split shift from 8 am

to 1 pm and then 4pm to 7pm. Others work a straight shift of 8am to 5pm and others 9am to 6 pm

Business activity slows during the month of Ramadan (office hours become 8am to 3pm)

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Who does business in the UAE?

You will usually encounter UAE nationals in Government organisations, banks, and also in some private businesses

Given the large number of expatriates working in the UAE, it is not uncommon for business to be conducted with non-Arab managers

Trading links between Asia and the UAE are strong and long standing therefore South Asians (especially Indians and Pakistanis) may occupy senior and middle management positions in UAE companies

Woman do business in the UAE

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What to expect

UAE business people are culturally-aware owing to their travel and work with expats BUT foreigners are expected to respect Arab values when doing business

English is spoken mostly in business Businesspeople (usually men) are very time

conscious and appreciate getting to business quickly

Complex business procedures are common, so transactions tend to take longer than expected

In some areas people are more relaxed about the time

However, punctuality is always expected of foreigners

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What to wear for meetings

Men Standard business suit and tie Evening functions dressing can vary; usually a semi formal

look is fine For casual occasions, trousers and a shirt is acceptable.

Women Should wear loose fitting trousers and a shirt or a long dress Avoid short skirts and revealing clothes Head does not need to be covered In general, dress conservatively

Remember it is offensive to sit with the soles of the feet or shoes facing other members of the group

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Business greetings

Arab males usually greet each other with an embrace and a kiss and sometimes walk hand-in-hand

Westerners are greeted with a handshake MEN: Allow Muslim women to offer a

handshake first, as some women prefer not to do this

Your host may say: salam alaikom (peace be upon you)

You should reply: alaikom al salam Avoid friendly physical contact, such as

slapping on the back, which may be construed as an insult

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Business gifts

The exchange of gifts is common in business circles but such gifts are usually small corporate items such as pens, books, business items etc

In a social settings, a small gift of chocolates, sweets, or a western souvenir is appreciated

Care should be taken not to express admiration for something owned by your host, or you may be embarrassed by having the object offered to you on the spot as a gift

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Dealing with refreshments Hosts are gracious and like to spend time on

small talk over coffee, tea, or soft drinks before business discussions commence

If you are offered refreshments you must accept them

It is customary to drink more than one cup of tea or coffee, but not more than you are offered

Sounds of sipping or eating are considered as compliments to the host

Remember when eating with your hands, drinking tea or coffee, or passing things by hand, never use your left hand, which is considered unclean

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Conducting meetings

Face-to-face meetings are very important The host is not expected to initiate the

business discussion In opening there is small talk, often about

the health and well being of the other person and their family

Hosts will express disagreements with politeness

People may talk about various things at once in the meeting

Visitors might come all at once during the meeting

The host may take telephone calls during the meeting

The host should never terminate a conversation

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Effective Communication Arabs prefer speaking and place less

emphasis on writing Begin with a verbal outline of your message Avoid a series of closed questions that force

your host into a Yes/No response - like in Asia, ‘yes’ can mean ‘perhaps’

Be an active listener and always have a friendly approach

Suggest alternatives if your proposal does not resonate

Be patient with people’s responses Be prepared to leave the room with no firm

commitments When relationships are formed, principals may

want to move quickly, sometimes on no more than a handshake

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Doing business as an Arab women

In my experience: In Saudi I had to drag my brother with me! Finance is limited (women considered high risk) Normally the contracts given to my company

has less financial value to those offered to men owners

Main Reasons for leaving my previous job – not reaching glass ceiling

Any questions? Thank you

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