United Arab Emirates

A different world

Background

Background

• A Muslim countryo In the Gulf characterized by moderation, growth and

economic development

• The Trucial States of the Persian Gulf Coasto Granted the UK control of their defence and foreign affairs in

the 19th century treaties                                      

•  Birth of UAEo In 1971, Abu Dhabi, Dubai, Ajman, Fujairah, Sharjah and

Umm al Qaiwain merged to form UAEo Joined by Ras al Khaimah in 1972

Background

• Capital - Abu Dhabio Largest and richest of the federal units. o Biggest producer of oil and the major contributor to the

federal budget.

• GDPo Per capita GDP is on par with those of leading West

European nations: $42,000 (2009)

• Vitality in the regiono Its generosity with oil revenues and its moderate foreign

policy stance have allowed the UAE to play a vital role in the affairs of the region

Background

• Political conditionso Each emirate still retains substantial autonomy

o The rulers hold power on the basis of their dynastic position and their legitimacy in a system of tribal consensus. 

 o In December 2006, the U.A.E. held its first-ever limited

elections to select half the members of the Federal National Council. 

o Ballots were cast by electors selected by the ruler of each emirate.

Background

• Governmento Judicial: Islamic and secular courts.o Administrative subdivisions: Seven largely self-governing

emirates. o Political parties: None.  o Type: Federation with specified powers reserved for the

U.A.E. Federal government and other powers reserved to member emirates.  

• Financial status o For decades, oil and global finance drove the economyo In 2008-09, falling oil prices, collapsing real estate prices,

and the international banking crisis hit the UAE especially hard                                           

Background

• Defenseo Armed Forces consist of 50,000 troops

o Headquartered in Abu Dhabi 

o Primarily responsible for the defense of the seven emirates.

o Equipped with some of the most modern weapon systems including one of the world’s most sophisticated missile defense systems. 

o Special Operations Command (SOC) is a small but effective force centered on the counter-terrorism mission

History

 

History

• The U.A.E. was formed from the group of tribally organized groups.

 • For centuries, the sheikhdoms were embroiled in dynastic

disputes.   

• A 1974 agreement between Abu Dhabi and Saudi Arabia almost settled their border dispute.

 • The border with Oman also remains officially unsettled,

although the two governments agreed to delineate the border in May 1999.

   

History

• Abu Dhabi’s ruler, Sheikh Zayed  was elected by the Supreme Council as President , Sheikh Rashid bin Said al Maktoum, became Prime Minister.

 • The U.A.E. sent forces to help liberate Kuwait during the 1990-

91 Gulf War. 

• U.A.E. troops have also participated in peacekeeping missions to Lebanon, Somalia, Bosnia, Albania, Kosovo, and Afghanistan.

 • In 2004, the U.A.E.'s first and only president until that time,

Sheikh Zayed  died.

History

• His eldest son, Khalifa bin Zayed , succeeded him as Ruler of Abu Dhabi.

 • January 2006, Sheikh Maktoum , U.A.E. Vice President and

Prime Minister, passed away and replaced by his brother, Sheikh Mohammed .

  

Geography

Geography

• Locationo Middle East, bordering the Gulf of Oman and the Persian

Gulf, between Oman and Saudi Arabia (24 00 N, 54 00 E)o Terrain: Largely desert with some agricultural areas.

• Climateo Desert; Cooler in eastern mountains.o Hot, humid, low annual rainfall. 

• Natural resourceso Petroleum, natural gas

Geography

• Major Citieso Capital - Abu Dhabi; Dubai

• Landscape:o Area: 82,880 sq. km. (30,000 sq. mi.)

• Natural hazardso Frequent sand and dust storms

• Environmental issueso Lack of natural freshwater resources compensated by

desalination plants; desertification; beach pollution from oil spills

Culture

• Freedom of Religion

• 76% Population - Muslim• 9% - Christian• 15% - Others 

• Government – very careful about preserving UAE Culture &Tradition

• Gradually growing Cosmopolitan atmosphere

Culture

• A variety of Asian-influenced schools

• Cultural centers

• Themed restaurants

• Etiquette: an important aspect of UAE Culture and Tradition. • The visitors expected to show manners and etiquette.• Local residents maintain a strict guideline on manners,

behavior and dress code

Education

• Four-tier Education system covering 14 years of education.

• Education at primary and secondary level is universal and compulsory up to ninth grade

• Kindergarten o Age level 4 to 5 Years

• Primaryo Length of programme - 6 Yearso Age level 6 to 12 Years

• Preparatoryo Length of programme  - 3 Yearso Age level 12 to 15 Years

Education

• Secondaryo Length of programme - 3 Yearso Age level  5 to 18 Years

o Certificate/diploma awarded: Secondary School Leaving Certificate

• Technical Secondary School o Length of programme - 6 Yearso Age level 12 to 18 Years

o Certificate/diploma awarded: Technical Secondary Diploma 

Education

• IT Education – Goalo computer for every ten children in kindergarten,o every five pupils in primary schools,o every two students in preparatory schools o and one computer per student in universities.

• Higher Educationo Al Ain-based United Arab Emirates University (UAEU) o Opened in 1977-78o Country’s flagship national institution

• Higher Colleges of Technologyo More technically oriented education in 12 well-equipped

colleges

Education

• Zayed University o Established in 1998o Innovativeo Smart Square, located in Dubai Internet City -Cooperative

venture between ZU and IBM, inaugurated in 2003

• Private Institutions o American Universities of Sharjah and Dubaio Sharjah Universityo Ajman University of Science and Technologyo Abu Dhabi Universityo Al Hosn University

What’s HOT ?

Dubai and Abu Dhabi tourism

Sports and leisure activities

• Sportso Polo Powerboat Raceso Rock Climbing Rugbyo Sailing Shootingo Snow Skiing Tennis o Camel Racing Canoeingo Car Rallying Cricketo Football Golfo Horse Riding Ice-Skating

Sports and leisure activities

• Activities o Bird-Watching  Camel Ridingo Caving Desert and Mountain

Safariso Dhow Trips Diving and Snorkelingo Dune Buggies Exploring The Wadiso Fossil Hunting Flying  o Go-Karting  Horse Racingo Island- Hoping Mini Golf

o Sand Skiing Skydiving

o Water Parks

Communication norms

India and UAE both have frequent business negotiations and communications.

Various methods based on : - Time orientation : Monochronic and Polychronic - Space Orientation - Non verbal orientation - Power Distance : High PD and Low PD - Uncertainty Avoidance - Masculinity and Femininity - Cross cultural negotiations

Communication norms

VALUES OF INDEXES AS PER HOFSTEDE'S DIMENSIONS

INDIA UAE WORLD AVERAGE

PDI 77 80 56.50

UAI 40 68 65

LTO 61 48

MAS 56 52 51

IDV 38 64PDI: POWER DISTANCE INDEX

UAI:UNCERTAINTY AVOIDANCE INDEX

MAS: MASCULINITY INDEX

IDV: INDEX FOR INDIVIDUALISM

LTO: LONG TERM ORIENTATION INDEX

Communication norms

• Higher PDI indicates high level of power and wealth within society.

• Leaders have ultimate power and authority, and the rules, laws and regulations developed by those in power, reinforce their own leadership and control.

• High UAI indicates society’s low level of tolerance for uncertainty.

• High LTO indicates culture that is perseverent and parsimonious.

• IDV of 38 in UAE indicates collectivist society as compared to individualistic cullture, loyalty is paramount here.

Relevance for India

• Economic, social and cultural link with UAEo dates back centuries ago

• Economic linko UAE second largest global market for Indian products o India: Important export destination for UAE manufactured

products o Non-oil trade value at $48 K in 08-09o Exports: Natural/Cultured pearls, Cereals, Gems and

Jewellery, Manmade yarno Imports: Mineral fuels, Mineral oils, Precious/Semi-precious

stones, Metal ores and metal scrap

Relevance for India

• Social & Cultural link o Indian community - Largest expatriate community

numbering about 1.5 million  o  o Tourists from both sides are visiting for leisure and pleasure

o More and more UAE nationals availing healthcare and tourism facilities in India

o NRIs remitting $25 billion a year to India – estimated $4 billion sent by NRIs from UAE

Relevance for India

• Cultural agreement  signed in January, 1975

• CEP signed for the period 1994-1996

• Both countries agreed in principle to enter into an Educational Exchange Program (EEP)

• India and UAE also signed an MoU on Manpower Sourcing in December 2006

• Important bilateral treaty and agreements - Cultural Cooperation Agreement, Double Taxation Avoidance Agreement, Extradition Treaty

Bilateral trade relations

In Recent Years--- TRIGGERSDiscovery of oil in middle east

Rapid increase in wealth

Creation of the UAE Federation in 1971

Construction boom

Influx of expatriates including Indians

Gulf War & Stance of Palestineans

1.75 million Indians(18.4%) were welcomed in lower as well as White Collar Jobs( least interference in power structure)

Bilateral trade relations

IMPORT – PARTNERS (2009):

1. CHINA 15.03%

2. INDIA 14.27%

3. US 8.44%

4. GERMANY 5.81%

5. JAPAN 4.52%

EXPORT – PARTNERS (2009):

1. JAPAN 17.27%

2. SOUTH KOREA 10.49%

3. INDIA 9.96%

4. IRAN 6.82%

5. THAILAND 5.11%

High level visits from both sides

UAE to India

UAE’s President- January 1975 1992.

Vice President, PM of the UAE and Ruler of Dubai - March 2007.

Foreign Minister - June 2007 Foreign Minister - June 2009 Vice President---Mach 2010.

India to UAE

President --November 1976 Prime Minister --May 1981 President ---October 2003 Foreign Minister--May 2008 President-- November,2010

Moments

Bilateral cooperation

JOINT COMMISSION--- To find & promote bilateral co-operation

9th Session, India-UAE Joint Commission Meeting (JCM) led by External Affairs Minister ---New Delhi , June 5-6, 2007.

Both sides discussed issues towards promoting bilateral cooperation in the following fields:

Trade & Investment;

Combating Crime, Terrorism and Illicit Activities;

Education, Culture, Youth & Sports;

Health, Science and Technology, Agriculture & Environment;

Manpower;

Energy, Hydro-carbons, Petrochemicals and Fertilizers.

India’s export items to UAE

Precious Metals, Stones, Gems & Jewellery, Minerals, Food Items (Cereals, Sugar, Fruits & Vegetables,

Tea, Meat, and Seafood), Textiles (Garments, Apparel, Synthetic fibre, Cotton,

Yarn) Engineering & Machinery Products and Chemicals.

India’s imports from UAE

Petroleum and Petroleum Products Precious metals Stones, gems and jewellery Minerals Food items Metal ores and metal scrap

UAE companies in India

DP world (Port) Emaar Group (Commonwealth Games Village) Al Nakheel (high end real estate company) ETA Star Group ( Property developers) SS Lootah Group (Indian real estate) Emirates Techno Casting FZE RAK Investment Authority ( sovereign wealth fund) Damas Jewellery and Abu Dhabi Commercial Bank

Indian companies in UAE

L&T Punj Lloyd Hinduja Group Pioneer Cement Oberoi Group of Hotels

Investments

UAE investment in India - US$ 6 billion of which FDI is US$ 1.5 billion and remaining as portfolio investment.

10th biggest investor in India in terms of FDI.

UAE’s investment in India were concentrated mainly in five sectors:

Energy(19.1%); Services(9.3%); Programming(7.8%); Construction (6.8%); and Tourism and Hotels(5.6%).

Suggestions to an I'national mgr

• The UAE is a thriving business centre with immense opportunities for foreign investment .

• The key to business success is first understanding Emirati culture and business etiquette.

Working practices

• Traditionally working week starts on Saturday and ends on Wednesday.

• Attitudes to time in the UAE are much more relaxed than in many Western cultures

• People and relationships are more important than schedules and punctuality.

Suggestions to an I'national mgr

Working Relationships • Relationships and mutual trust are paramount for any

successful business.• Emirati people prefer to do business with those they know.• Family and friends come before anything else.

Business Practices• The customary greeting is “As-salam alaikum,” (peace be

upon you) to which the reply is “Wa alaikum as-salam,”• You should greet each of your Emirati counterparts

individually.• They are generally long in duration and discussions are

conducted at a leisurely pace over tea and coffee.• If business cards are used, information should be printed in

both English and Arabic.

Suggestions to an I'national mgr

Business etiquette (Do's and Don'ts)

• DO address your Emirati counterparts with the appropriate titles.

• DO dress conservatively.• DO accept an invitation to a meal or social event.• DON’T schedule business meetings during prayer times or any

of the major Islamic holidays such as Ramadan or Eid.• DON’T expect a one-on-one meeting to only include yourself

and the other person.• DON’T ask about a person’s wife or daughters. • Use the right hand for all public functions — including shaking

hands, eating, drinking and passing objects to another person.

Bibliography

• https://www.cia.gov/library/publications/the-world-factbook/geos/ae.html

• http://www.authorstream.com/• http://www.state.gov/r/pa/ei/bgn/5444.htm• http://www.uaeembassy-newdelhi.com/uae-

indiarelations_index.asp• http://www.indiastrategic.in/topstories19.htm• http://www.iitrade.ac.in/kmarticle.asp?id=359• http://www.uaeinteract.com/education/default.asp• http://www.uaeinteract.com/recreation/• http://www.communicaid.com/cross-cultural-training/culture-for-

business-and-management/doing-business-in/UAE-business-and-social-culture.php

Thanks