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UAEUAEUnited Arab Emirates

Prepared By :Vikas Surani (56) Arpan Patel (37)Abhinay Singh (50)Dharmesh Duva (19)

Section – A, MBA – Trimester 1 AESPGIBM, Ahmedabad University

Table of Content

Geographic Location PESTLE Analysis Dressing and Food culture Doing business in UAE Business Etiquettes Hofstede Model SWOT Analysis

PESTLE Analysis~ Political ~ Economic ~ Social ~ Technological ~ Legal ~

Environment Political

UAE Federal Government

Each Emirate has its own governmental institution.

The ruling family of each Emirate is a member of the

Supreme Council, which is responsible for policy-making

and electing the president and vice president for five-year

terms.

President: HH Sheikh Khalifa bin Zayed Al

Nahyan, Ruler of Abu Dhabi

PESTLE Analysis~ Political ~ Economic ~ Social ~ Technological ~ Legal ~

Environment

Economic

Currency: Emirate dirham (Dh or AED)

Exchange Rate: Dh3.67 per US dollar

Oil exports: 2.2 million barrels of crude oil/day,3rd largest exporter

GDP per capita: Dh162,000 (2007)

Increase in spending for infrastructure and job creation.

Fiscal year: 1 January to 31 December.

Free zone : strongest pillars of the country’s diversification

strategy

PESTLE Analysis~ Political ~ Economic ~ Social ~ Technological ~ Legal ~

Environment

Social

Emiratis are a tolerant, forward-looking people with a strong sense of

tradition.

Language: Arabic

Religion: Islam; practice of all religious beliefs is allowed.

Male : Female = 2.2 : 1.

Illiteracy rate: 7%

Women are seen as equals and are protected by rights and

privileges laid down by Islam.

PESTLE Analysis~ Political ~ Economic ~ Social ~ Technological ~ Legal ~

Environment Technological

Zero Carbon City : Renewable energy, sustainable environment

Assistance & Advice of MIT(Massachusetts Institute of Technology)

Gulf Information Technology Exhibition – one of the 3rd Biggest

exhibition of its kind

Telephones (land line and cell), radio broadcast stations, television,

internet

Internet country code: ae

PESTLE Analysis~ Political ~ Economic ~ Social ~ Technological ~ Legal ~

Environment Legal

Court proceedings in the UAE are time-consuming.

Secular courts to adjudicate criminal, civil & commercial matters

Islamic courts to review family and religious disputes.

Each of the seven emirates has its own government with respective

municipalities and departments.

PESTLE Analysis~ Political ~ Economic ~ Social ~ Technological ~ Legal ~

Environment

Dressing

Food Culture

Food Culture – No No Pork

Muslims are prohibited from eating pork so it is not included in Arab menus. There are substitutes for the same.

AlcoholAlcohol is generally only served in hotel restaurants and bars. Exceptions are some clubs (e.g. golf clubs) and associations.

Doing Business in the UAE

Working Practice

Saturday – Wednesday (Traditional Working Week)

Meetings should be scheduled advanced with extra

time allocation

Attitude to time is comparatively relaxed

Structure & Hierarchy of Companies Strong vertical Hierarchy

Age Money & Family – Determining factors of

Personal Status

Status is important & must be recognized

Titles : Shaikh – Chief, Ustadh – Professor

Working Relation

Prefer to do Business in Person

Prefer to do Business with those who they know

Family & Friends come before anything else

Business Practice

Customary greeting is “As-salam alikum” with reply

“Wa alaikum as-salam”

Initial business meeting – Way to become

acquainted with your counterparts

Business Cards are common but not essential. If

intended ensure English and Arabic printed

information.

Social Custom Gifts

Sign of Generosity

Dining Sign of respect – starts eating lastHost pays for it

Left HandDo not use or offer item with your left hand

ShoesFollow the lead of your host

Business Etiquette

Do’s Address Emirati counterpart

with appropriate titles

Dress Conservatively

Accept Invitation to a meal or

social events

Politeness and courtesy

Don’t

• Expect a one-on-one meeting to

only include yourself and the other

person.

• Assume that the person who asks

the most questions in meetings

holds the most Responsibility.

• DON’T ask about a person’s wife or

daughters.

• Don’t speak Loud and with

laughter

Tips for effective communication Be clear and concise Speak more slowly Reinforce your message Make presentations effective Double-check understanding Be open-minded

Hofstede ModelPower Distance: 80

Stratification by wealth and social standing Relative lack of upward mobility

Uncertainty Avoidance: 68 Strict rules and regulations Resistance to change and risk

Masculinity: 52 Acknowledgement of gender differences Religious vs. cultural distinctions

Individualism: 38 Group and team-oriented culture Importance of loyalty to one’s member groups, i.e. family,

company, social group

Cultural Difference0 20 40 60 80 100

Power Distance

Individualism

Masculinity

UncertaintyAvoidance

Long-TermOrientation

UAEHONG KONGUSAFINLANDFRANCE

SWOT Analysis

Strengths Weakness Opportunities Threats

SWOT Analysis

Strengths

Free Trade Zones, relative ease of business start up

Weaknesses

One needs a network of people in order to expand opportunities

Trust must be gained before any business transaction occurs

Opportunities

Large export market

Trade missions

Threats

Sandstorms and dust storms occur frequently.

References

www.uaeinteract.com www.omanet.om www.uktradeinvest.gov.uk www.pocketbook.co.uk www.ntu.ac.uk www.rln-eastmidlands.com

THANK YOU