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DOING BUSINESS IN THE UAEBy Suad Alhalwachi
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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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
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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