5.

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

6. 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,3 rd 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 countrys diversification strategy

7. 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.

8. 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 3 rd Biggest exhibition of its kind Telephones (land line and cell), radio broadcast stations, television, internet Internet country code: ae

9. 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.

10. PESTLE Analysis ~ Political ~ Economic ~ Social ~ Technological ~ Legal ~ Environment

11. Dressing 12. Food Culture 13. 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. Alcohol Alcohol is generally only served in hotel restaurants and bars. Exceptions are some clubs (e.g. golf clubs) and associations.

14. Doing Business in the UAE 15. Working Practice Saturday Wednesday (Traditional Working Week) Meetings should be scheduled advanced with extra time allocation Attitude to time is comparatively relaxed

16. 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

17. Working Relation Prefer to do Business in Person Prefer to do Business with those who they know Family & Friends come before anything else

18. 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.

19. Social Custom Gifts Sign of Generosity Dining Sign of respect starts eating last Host pays for it Left Hand Do not use or offer item with your left hand Shoes Follow the lead of your host

20. Business Etiquette Dos Address Emirati counterpart with appropriate titles Dress Conservatively Accept Invitation to a meal or social events Politeness and courtesy Dont Expect a one-onone meeting to only include yourself and the other person. Assume that the person who asks the most questions in meetings holds the most Responsibility. DONT ask about a persons wife or daughters. Dont speak Loud and with laughter

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

22. Hofstede Model Power 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 ones member groups, i.e. family, company, social group

23. Cultural Difference 24. SWOT Analysis Strengths Weakness Opportunities Threats 25. 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.

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

Doing business with uae

History The United Arab Emirates were bound by truce (Trucial States) to Great Britain until WWII. The seven Emirates formed a federation in 1971 and have since worked closely together to build a stable economy and political climate.

4. PESTLE Analysis Political Each Emirate has its own governmental institution. The ruling family of each Emirate is a member of the Supreme Council, which is responsible for policymaking and electing the president and vice president for five-year terms. Economic Wealth is based on oil and gas exports (Abu Dhabi) The government increased spending for infrastructure and job creation, and there is a greater opportunity for private sector investment. Lately there has been a surge in real estate and shares prices and consumer inflation is elevated. Social Islam plays a large role in business Women are seen as equals and are protected by rights and privileges laid down by Islam Technological Telephones (land line and cell), radio broadcast stations, television, internet Legal Court proceedings in the UAE are time-consuming. There are no juries; only a single judge or a three-judge panel (depending on the case) hears cases. All evidence submitted to the court must be in Arabic. Environmental Arid/tropical, sandy desert, and coastal areas.

5. 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.

6. Political structure, infrastructure, economy, currency, and hot sectors The UAE is a Federation comprised of seven separate emirates. Each emirate retains a high amount of political and economic independence within the federal system. Each emirate has control over its own natural resources and regulates its commercial activity. The central government makes laws dealing only with defense, foreign policy, communications, and immigration. Between the seven emirates they serve as members of the Supreme Council of the Union (SCU) and elect a President from among themselves. The UAEs currency is the dirham. The principal growth sectors are energy production and manufacturing.

7. Political structure, infrastructure, economy, currency, hot sectors continued Recently, the Emirate of Dubai has started to look for other sources of revenue. High-class tourism and international finance are the new sectors starting to be developed. Also, the Dubai International Financial Centre was announced, which offers 100% foreign ownership, no tax, freehold land and office space and a tailor-made financial regulatory system with laws taken from best practice in other leading financial centers like New York, London, and Singapore. Many of the worlds leading companies have now set up in Dubai. Dubai is known for its 2 palm islands, the World islands, Dubai Marina, Jumeirah Lake Towers, and other developments that offer villas, high rise apartments, and office space.

8. Economy United Arab Emirates is now the second-richest country in the Muslim world . This is because the UAE claims the world's third largest proven oil deposits. The GDP per capita fell by 42% in the 1980s, but successful diversification helped to provide a positive growth of 48% in the 1990s. Immigrants make up a large percentage of the UAEs workforce. The UAE

government wants to preserve its traditional forms of art and culture. However, change is also apparent.

9. Business The United States Department of State has noted widespread instances of blue collar labor abuse throughout the United Arab Emirates businesses. It is a common practice for managers and employers in the UAE to hold employees' passports for the duration of their employment contract. The UAE government has been criticized by many human rights agencies. One of them, the Human Rights Watch, has criticized the government for not acting when discrimination against Asian workers in the emirate is present.

10. Entering the Market A local sponsor or service agent Trade license Register with the local Chamber of Commerce and Industry, the Economic Development Department, and with the Minister of Finance Annual renewal of the trade license Company can function only within the emirate where the license was granted Separate license must be obtained to open a branch in other emirates Free Trade Zones 100% foreign ownership is allowed with no recruitment or sponsorship problems Corporate tax and customs duty exemption on imported raw materials and equipment No levy on exports and imports The Free Zone Authority gives a questionnaire to assess the company's requirements and whether it can be met. Once the company submits the questionnaire, it will be given a license application, a list of invoices required for planning, consumer request for electricity and Form B for environmental concerns (if applicable). UAE Links flickr.com/photos/babasteve/21303838/270904/ Bateaux Dubai.com / Adventures.worldnomads.com / Wikipedia.org/wiki/United_Arab_Emirates CIA.gov/the-worldfactbook/UAE Emirates.org / Lonely Planet.com/united-arab-emirates World Atlas.com /UAE Realtyna.com/dubai_real_estate/the-palm-jumeirah Martha Samuel.wordpress.com/2008/12/24/dubai-palm-trilogy/