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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
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