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United Arab Emirates


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United Arab Emirates

  1. 1. United Arab Emirates Intercultural Management Author: Andreas Troxler
  2. 2. United Arab Emirates Key data <ul><li>The United Arab Emirates is a federation of the seven States Abu Dhabi, Dubai, Sharja, Ras al-Khaima, Fujaira, Umm al-Kaiwain und Ajman. </li></ul><ul><li>Capital: Abu Dhabi </li></ul><ul><li>Territory: 83‘600 km2 </li></ul><ul><li>The data about country‘s territory vary between 77‘700 and 90‘500 km2, because the border to Saudi-Arabia is partly not defined exactly.Two-Thirds of the area is desert territory. </li></ul><ul><li>Population: 4,3 million habitants </li></ul><ul><li>The populous Emirat is Abu Dhabi with 1,6 Mio. habitants, followed by Dubai (1,2 Mio.). Merely 20% of the population are local arabs. Most of the foreigners are unskilled workers from Pakistan, India, the Philippines as well as from Arabian neighboring states. They do have a work permit but have little political rights. More than 85% of the total population live in cities. </li></ul>[Andreas Troxler] | [UAE] |
  3. 3. United Arab Emirates Religion / Language <ul><li>More than 90% of the population, among the whole local population, confess to islam. Over 75% are Sunnites, the shiitic minority consists of Iranian and Indians. Practice of all religious beliefs is allowed. . The foreigners have different statements of belief, the majority is Catholic. </li></ul><ul><li>Arabic is the general official language which is used only from a small part of the foreigners. Therefore, the main language, especially to communicate in business, is English. </li></ul>[Andreas Troxler] | [UAE] |
  4. 4. United Arab Emirates Geopolitical potential <ul><li>Political potential </li></ul><ul><li>Since the constitution of 1996 the UAE are a federal confederation of seven autonomic emirates.The seven constituent states are runed by the sheiks and their families in absolut monarchy. They have a government but no parliament. </li></ul><ul><li>Economical potential </li></ul><ul><li>The UAE have one of the highest per capita income of the world without any foreign depts. Furthermore they have high currency reserves and are one of the richest states of the world. The principal source of income is the crude oil- and natural gas production. The emirates Abu Dhabi followed by Dubai and Sharja deliver the most of the commodities. The other emirates get subventioned. They now bring forward other industry branches like aluminium-, zement- and chemical industry to reduce the addiction of oil and natural gas business. The last years, Dubai developed to a international finance- and tourismcenter. </li></ul>[Andreas Troxler] | [UAE] |
  5. 5. United Arab Emirates Trade <ul><li>The UAE focuses on free trade because they are convinced that it is the only way of efficient business and increases competitiveness and the productivity. </li></ul><ul><li>They signed bilateral preferential agreements with Syria, Jordan, Lebanon, Morocco and Iraq which allows them to export their goods to countries around the world and gives them access to certain specified goods. The FTA (Free Trade Agreement) between the UAE and the EU covers market access for industrial and agricultural products, trade in services, intellectual property, rules of origin, government procurement, investment and legal and institutional arrangements. It is expected to double the trading volume between the two regions in the next years. </li></ul>[Andreas Troxler] | [UAE] |
  6. 6. United Arab Emirates Business rules <ul><li>The UAE is a well-educated society which is familiar with the methods of doing business worldwide. However, there are some points that people who are doing business with Arabians should keep in mind: </li></ul><ul><li>-> More than anywhere else, business in UAE is conducted on the basis of personal relationships and mutual trust. </li></ul><ul><li>-> People should always arrive on time for a meeting but punctuality is not considered a virtue and people may be kept waiting before or during the meeting. </li></ul><ul><li>-> People should be patient. It is common to take time to chat and drink coffee, tea or a soft drink. </li></ul><ul><li>-> Verbal agreements are binding, an Arab businessman‘s word is his bond. </li></ul><ul><li>-> Business is frequently conducted over lunch or dinner </li></ul><ul><li>-> As already mentioned some slights before, English is widely used in business transactions </li></ul>[Andreas Troxler] | [UAE] |
  7. 7. United Arab Emirates Society / Education <ul><li>In less than 100 years, the inhabitants of the UAE have been transformed from a traditional, largely rural people with little or no access to education and health services to a modern, urbanised, sophisticated society. </li></ul><ul><li>Today, the UAE offers a comprehensive education to all male and female students from kindergarten to university. The percentage of girls enrolled in primary education has recently reached 83 per cent and females form 62 per cent of the total number of students in higher education, with a steady growth in the number of women with high degrees. As a result, 66 per cent of employees in the public sector, including education, medicine, diplomacy and armed forces, are women, of which 30 per cent are in decision-making positions. </li></ul>[Andreas Troxler] | [UAE] |
  8. 8. United Arab Emirates Power Distance Index and Uncertainty Avoidance <ul><li>Definitions: </li></ul><ul><li>Power Distance Index is the extent to which the less powerful members of organizations and institutions (like the family) accept and expect that power is distributed unequally. This represents inequality (more versus less), but defined from below, not from above. </li></ul><ul><li>Uncertainty Avoidance Index deals with a society's tolerance for uncertainty and ambiguity. It ultimately refers to man's search for Truth. It indicates to what extent a culture programs its members to feel either uncomfortable or comfortable in unstructured situations. </li></ul><ul><li>Large power distance and uncertainty avoidance are the predominant characteristics for this region. This indicates that it is expected and accepted that leaders separate themselves from the group and issue complete and specific directives. </li></ul><ul><ul><li>Muslim faith plays a significant role in the people‘s lives. </li></ul></ul><ul><ul><li>Society is more likely to follow a caste system that does not allow significant upward mobility of its citizens. </li></ul></ul><ul><ul><li>Highly rule-oriented with laws, rules, regulations, and controls in order to reduce the amount of uncertainty </li></ul></ul><ul><ul><li>Inequalities of power and wealth have been allowed to grow within the society </li></ul></ul>[Andreas Troxler] | [UAE] |
  9. 9. United Arab Emirates Power Distance Index and Uncertainty Avoidance [Andreas Troxler] | [UAE] | When these two dimensions are combined, it creates a situation where leaders have virtually ultimate power and authority, and the rules, laws and regulations developed by those in power reinforce their own leadership and control. The high Uncertainty Avoidance Index (UAI) ranking of 68, indicates the society ’s low level of tolerance for uncertainty. In an effort to minimize or reduce this level of uncertainty, strict rules, laws, policies, and regulations are adopted and implemented. The ultimate goal of these populations is to control everything in order to eliminate or avoid the unexpected. As a result of this high Uncertainty Avoidance characteristic, the society does not readily accept change and is very risk adverse.
  10. 10. United Arab Emirates Individualism <ul><li>Definition: </li></ul><ul><li>Individualism on the one side versus its opposite, collectivism, that is the degree to which individuals are integrated into groups. </li></ul><ul><ul><li>The lowest Index of the UAE (ranking at 38, compared to a world average ranking of 64) </li></ul></ul><ul><ul><li>Translates into a Collectivist society as compared to Individualist culture </li></ul></ul><ul><ul><li>Manifested in a close long-term commitment to the member group, that being a family, extended family, or extended relationships. </li></ul></ul>[Andreas Troxler] | [UAE] |
  11. 11. United Arab Emirates Masculinity <ul><li>Definition: </li></ul><ul><li>Masculinity versus its opposite, femininity, refers to the distribution of roles between the genders which is another fundamental issue for any society to which a range of solutions are found. </li></ul><ul><ul><li>Slightly higher than the 50.2 average for all the countries (52) </li></ul></ul><ul><ul><li>Indicates that while women in the Arab World are limited in their rights, it may be due more to Muslim religion rather than a cultural paradigm. </li></ul></ul>[Andreas Troxler] | [UAE] |
  12. 12. United Arab Emirates Overview Indices [Andreas Troxler] | [UAE] | United Arab Emirates Power distance Index: 80 Individualism: 38 Masculinity: 52 Uncertainty Avoidance Index: 68
  13. 13. United Arab Emirates References <ul><li>Astor, E., Aubel, H., Brugger, E.-M., Strzysch-Siebeck, M., Venhoff, M. (2006). Das grosse ADAC Länderlexikon, Alle Länder der Erde kennen - erleben - verstehen. München: ADAC Verlag </li></ul><ul><li>-Fischer, C. (2007). Der Fischer Weltalmanach 2007, Frankfurt am Main: Foischer Taschenbuch Verlag. </li></ul><ul><li>-Nuscheler, F. (2004). Entwicklungspolitik. Bonn: Verlag J.H.W. Dietz. </li></ul><ul><li>-Ploetz, C. (2002). Die Daten-Enzyklopedie der Weltgeschichte. Freiburg im Breisgau: Verlag Herder. </li></ul><ul><li>, visited on February, 2nd, 2009 </li></ul><ul><li>, visited on February, 2nd, 2009 </li></ul><ul><li>, visited on March, 7th, 2009 </li></ul><ul><li>, visited on March, 7th, 2009 </li></ul><ul><li>, visited on March, 7th, 2009 </li></ul>[Andreas Troxler] | [UAE] |