Business culture in the UAE

The most important thing to remember is that business etiquette in the UAE is all about respect. In addition, the country's attitude towards business is changing. For example, corporate social responsibility is an increasingly important issue. In addition, the government is taking measures to promote women in the workplace and combat corporate crime in the UAE.

Business culture in the UAE

It is important to remember that the UAE — Islamic country. For this reason, the business culture there is more conservative than in Europe or the United States. In addition, the weekend falls on Friday and Saturday, not Saturday and Sunday.

Despite this, you will find that the business world of the UAE is a mixture of two cultures. Moreover, most Emiratis are lenient towards foreign business partners because they understand that they have different habits and traditions.

Personal relationships — the key to doing business in the Emirates. For this reason, local business culture requires that you pay attention to small talk and networking, even in work meetings. Likewise, loyalty is highly valued.

Working hours and conditions

The working day in the UAE lasts eight hours, from 9 am to 5 pm. In addition, the work week runs from Sunday to Thursday. Conversely, during the holy month of Ramadan, most people work only six hours a day. Although timekeeping is not a priority, locals respect punctuality. Therefore, it is important to arrive on time to work and meetings.

The UAE also has a good work-life balance. For example, most employees receive 30 days of annual leave in addition to public holidays. They can also receive up to 90 days of sick leave. Women also have 45 days of paid leave due to pregnancy and childbirth.

Traditionally, the UAE does not offer flexible working conditions. But in 2019, the government introduced two new resolutions that could encourage flexible working. Part-time work permits are designed to help employers fill gaps in the workforce, especially during odd hours. Likewise, the remote work solution was created to help Emiratis achieve greater work-life balance.

Business etiquette in the UAE

Communication

Having the right communication skills is the key to good business etiquette in the UAE. Due to the conservative culture, communication here is more formal. For example, when meeting people for the first time, you should address them as "Mr." or "Miss". And while men may shake hands lightly, when meeting women you should always wait for them to extend their hand. Additionally, you should always greet the older person first.

At business meetings, compliments — This is fine. Because relationship building is such an important part of culture, it is common to flatter hosts and their organization. Every business meeting begins with small talk. For example, a good way to talk about families, country and local food. However, you should avoid divisive topics such as politics and religion.

Dress code

Most locals wear traditional clothing in business settings. These are the dishdasha for men (a long white shirt) and the abaya for women (a long traditional Arab dress). Foreigners should wear modest and non-revealing formal attire. Men are advised to choose suits and shoes. Meanwhile, women need to pay close attention to their outfit. Be sure to always cover your shoulders, chest, arms from shoulders to elbows, and knees. Long skirts and dresses — a good option. You can also wear a light jacket and shirt over loose, flowy pants. In any case, it is better to avoid wearing bright jewelry and strong perfume.

Gifts

At the first meeting with a potential client, it would be nice to give a symbolic gift. Likewise, it is always appropriate to give it as a gift at the conclusion of a transaction. Gifts are also appropriate in honor of major religious holidays such as Ramadan. If you can buy it abroad, so much the better. Locals appreciate souvenirs from representatives of different cultures.

Snacks such as quality dates or chocolate are a good choice for a first meeting. For a long-term relationship, you can choose higher quality or more expensive gifts. Carefully selected coffee table books also make good gifts. At the highest level, you can even choose pens or cufflinks from high-end brands.

It is better to avoid exchanging gifts between different genders. However, if you need to give a gift to a woman, it is best to have a woman on your team give it to you. At least you can say it came from a relative. The same applies to a woman who has to give a gift to a male business partner.

There are certain items that you should also avoid giving as gifts, as they may offend Muslim colleagues. For example, do not give alcohol, pigskin products, personal items, or anything related to pork or dogs.

Business cards

The UAE has a rather relaxed attitude towards business cards. This is a result of the international status of business in the country. They are usually exchanged at the beginning of the meeting. When handing out a business card, always do so with your right hand, as it is impolite to use your left.

All company employees must have a business card. It should include your company name, name, job title, phone number, email address, and website. In addition, the card must be in both Arabic (the official local language of the UAE) and English (the local business language).

Organizational structure and hierarchy in the UAE

United Arab Emirates — a very hierarchical society, so the local business culture is very stratified. Most companies have a very strong vertical hierarchy. In most companies, senior positions are occupied by more experienced and senior employees. Moreover, they are the key decision makers.

At the other end of the spectrum, lower-level employees typically do not have much involvement in the decision-making process. They tend to remain subordinate and follow all orders from above. As a result, you will need to attract the best players to do business with.

Age, money, and family connections play a role in where a person ranks in a company. The more there are, the higher it is. There is also a strong preference for men over women, especially at higher levels.

Meetings and negotiations

Meetings are key to business culture in the United Arab Emirates. However, they can take different forms. You may have to attend formal meetings where the most senior people present, discuss and negotiate. Alternatively, you can attend more casual lunches or coffees. In some cases, you may even be asked to go to someone's house for dinner.

Since personal relationships are important to business, it is important to create connections with business partners. In any meeting, you can spend at least 30 minutes making small talk before getting down to business. Rushing and being pushy is considered impolite, so expect the meeting to take some time. However, answering phone calls or messages is acceptable. Just don't delay it.

Bargaining — An important part of the culture in the UAE, business can be expected to involve a lot of negotiation. However, you won't achieve anything if you can't create a sense of trust.

The Emiratis do not negotiate directly, so you will have to learn to work around this. Ask open-ended but gentle questions to understand their way of thinking. Or offer a range of ideas to see what partners like best. There will be a lot of discussion around this question, so you should avoid giving a definitive “yes” answer right away. or "no". Think of it like a poker game: you want to try to find your opponent's clues to win the game. Even if the negotiations go wrong and the deal falls through, the locals will remain friendly. So keep that in mind when you respond.

Networking in the UAE

Social networks are an important part of business culture in the United Arab Emirates. Thanks to this, you can find many business opportunities through the people you meet on social media. You never know who can connect you with a decision maker at a large company.

The UAE also hosts many different networking events. If you are new to the country, start visiting some of them to expand your business network.

Women in business in the UAE

Women are increasingly participating in business in the UAE. This is because many Emirati women are becoming more educated and are choosing to work rather than marry early.

In fact, in 2018, 71% of Emirati university graduates were women. Additionally, many expat women move to the UAE to work or start a business there. The UAE government supports working women by offering them part-time and flexible work hours, as well as paid maternity leave.

The government also promotes equality in the workplace. The Pay Equity Act was passed in 2018 to begin closing the gender pay gap. Articles 27-24 of the UAE labor law are also intended to protect women. According to these rules, women cannot work from 22:00 to 7:00 (with the exception of technical and medical services). Likewise, women cannot be employed in hazardous work and are entitled to maternity benefits.

However, only 5% of leadership positions in the UAE private sector are held by women. However, the government appears to be more inclusive. Women make up 66% of the public sector workforce. Moreover, 30% of them hold senior positions, and another 27% are in the UAE cabinet.

Attitudes are certainly more tolerant of women in business. This is especially true for Western women. However, some sexist norms and stereotypes still persist among the older generation.

10/9/23
Julia Taraday, REAB Consortium
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