The UAE - peculiar aspects of running business in the Arab countries

Like in any other country, the United Arab Emirates has its own traditions and customs of running business and corporate relations. Breaking of these traditions may have a negative impact on the final result of negotiations with potential investors. It is worth noting that in the UAE religious traditions and Muslim canons play important role. Islam penetrates all spheres of life of the Arabs, whereas business is not an exception.

Therefore, foreign entrepreneurs and businessmen should know some peculiar aspects of running business in the UAE. The aforesaid aspects are as follows.

Business in the UAE – peculiar aspects

First, business negotiations, if you are used to strict and formal arrangements with interactive presentations and similar promotional shows, are a bit different here. You will have a warm, friendly conversation in a relaxed atmosphere over a cup of strong Arabic coffee. The mentality of local entrepreneurs is that they are reluctant to appreciate your merits, whether you have an effective presentation, slides and booklets. What is important here is your oratory skills. If you competently and confidently without saying many words and epithets deliver your idea, there is every chance that the contract will be concluded.

Keep in mind that oratory skills are highly regarded and revered in the Arab world. For local businesses it is a sign of sophistication and erudition of an opponent. Arab businessmen try to speak eloquently and highly appreciate such skill in their partners. Expressive communication will help you conduct effective negotiations in the UAE, whereas on the other hand brevity and restraint may lead to negative result.

Note:

In the United Arab Emirates negotiations procedure shall be approached thoroughly and without any haste. Some negotiations can last for weeks, but that does not mean that final mutually beneficial result will not be achieved. Foreign businessmen are not recommended to speed up negotiations and show signs of impatience, moreover one should not refuse to drink served coffee.

Any business meeting, whether negotiations or transfer of documents, should be arranged in advance. Commitment and punctuality are appreciated in foreign businessmen here.

Local businessmen have good sense of humor that helps to resolve any issued and overcome life difficulties. That is why positive mood and humor are appreciated in the course of negotiations. The main thing is not to offend religious and national dignity of local residents.

Any personal contact or business negotiations are approached here with cordiality and courtesy. Do not be surprised if after negotiations you will be invited to share dinner with the hosts. Cousin traditions are one of the fundamental parts of traditional hospitality of the Arab people.

In contrast to the European mentality, Arab businessmen are less closed and much more open to dialogue. Here people love to visit or host and hold long cordial conversations. Greed and stinginess are considered the main vice for local businessmen. The doors of an Arab family are always open, including for foreign guests and partners. Loyalty to foreign businesses here is manifested at all levels, both in relationship with the state and in communication with local entrepreneurs.

Appearance

Western and European standards of business dress code are welcome. The main conditions are relevance to climatic conditions and norms of Islamic morality. For foreigners who practice Islam free dress code that protects from the heat is allowed. In contrast to representatives of other religious confessions it is not recommended to wear traditional Arab clothing - it is deemed manifestation of disrespect.

Business women may wear loose dresses and light business suits. Sleeves should cover forearm, and length of dresses and skirts shall stretch below knees. Furthermore, deep cuts and revealing dresses contrary to Sharia norms are not allowed.

In general, it can be noted that in addition to features and special characteristics, the Emirates market meets all international standards in building civilized relationship. All norms, customs and traditions of the Arab people are based on the postulates of honesty, loyalty and hospitality. Religious and cultural values play a leading role in life and business.

Understanding of mental peculiarities of the Arab business helps to build effective and most importantly profitable international business decisions. Moreover, the United Arab Emirates have been increasingly regarded as an ideal platform for expansion of commercial and economic activities in the markets of the Middle East.

The UAE - gateway to numerous markets of the Gulf

International experience shows that within recent decades the markets of the Gulf have shown relative stability and active development in various production and industrial sectors. At the same time, the United Arab Emirates remain the most optimal base for entering such markets.

The basis of economic feasibility and appropriateness of such business structures is friendly tax legislation of the Emirates, customs benefits and growth dynamics of specialized economic zones triggering some advantages for foreign investors.

Experts identify the following features among the main factors ensuring efficiency:

• Unified system of energy resources and transport infrastructure;
• Uniform requirements and standards in certain sectors of the economy;
• Favorable investment environment and developed international logistics;
• Advantageous geographical location and international transport hubs.

All these factors in total make it possible to promote and effectively develop the existing business in the UAE and the adjacent neighboring markets. The Emirates may be the optimal starting point for export activities in the Middle East as well as Africa and Asia.

Besides, the Emirates constitute an integral part of common customs area of the Gulf. This suggests that all goods imported into the territory of the United Arab Emirates without any customs duties may be sold in the neighboring countries of the Arab world, such as, inter alia, Qatar, Kuwait, Bahrain, Oman and Saudi Arabia.

The United Arab Emirates have justly gained the title of the  largest business center of region and fully comply with it. Every year thousands of international companies running their commercial and economic activities in all parts of the Arab world are incorporated here.

Please email or call if you have any questions with respect to company incorporation process and starting business in the UAE. We will be happy to answer your questions.