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Doing Business in the UAE: Cultural and Legal Dos and Don’ts

• September 20, 2023

Doing Business in the UAE

The United Arab Emirates (UAE), nestled at the crossroads of Europe, Asia, and Africa, has emerged as a global hub for commerce and innovation. Renowned for its stunning skyscrapers, thriving economy, and business-friendly policies, the UAE beckons entrepreneurs and investors from around the world to embark on a journey of opportunity and prosperity. Whether you’re a seasoned multinational corporation seeking a strategic foothold in the Middle East or an aspiring entrepreneur with a groundbreaking idea, the UAE offers a fertile ground for business growth and expansion. In this comprehensive guide, we’ll delve into the intricacies of doing business in the UAE, shedding light on the various facets of the country’s vibrant and dynamic commercial landscape. From understanding the legal requirements to exploring key industry sectors and navigating cultural nuances, this article will serve as your compass for success in one of the most promising business destinations on the planet.

How to Manage Cultural Differences When Doing Business in the UAE

Managing cultural differences when doing business in the UAE is essential for building strong relationships and ensuring successful business interactions. The UAE is a diverse nation with a rich tapestry of cultures, and understanding and respecting these cultural nuances can greatly enhance your business endeavors in the region. Here are some strategies to effectively manage cultural differences:

• Learn About the Local Culture: Begin by researching and gaining a deep understanding of the culture, customs, and traditions in the UAE. Familiarize yourself with the local language, social norms, and etiquette. This demonstrates your respect for the host culture and can help establish a positive first impression.
• Respect Islamic Traditions: The UAE is a predominantly Muslim country, and Islam plays a central role in daily life. Be mindful of Islamic practices, such as prayer times and Ramadan fasting. Avoid scheduling meetings or events during these times, and be respectful of local dress codes, which often require modest attire.
• Build Relationships: Relationship-building is crucial in UAE business culture. Invest time in getting to know your Emirati or UAE-based partners and clients on a personal level. Engage in polite small talk and express genuine interest in their lives and interests.
• Hierarchy and Respect: The UAE places a strong emphasis on hierarchy and respect for authority. Show deference to senior executives and government officials. Use titles and honorifics, such as “Sheikh” or “His Excellency,” where appropriate.
• Patience and Indirect Communication: Emiratis often value indirect communication and may avoid saying “no” directly to avoid causing offense. Be patient and attuned to non-verbal cues. It’s important to read between the lines to understand their true sentiments.
• Gift-Giving: Gifts are a common way to show appreciation and build relationships. When presenting gifts, ensure they are of high quality and not overly extravagant. Gifts are typically given with the right hand or both hands and received with the right hand as well.
• Business Attire: Dress professionally and conservatively, especially for meetings and business events. Men should wear suits and ties, while women should opt for modest and stylish attire that covers the arms and legs.
• Business Hours: The workweek in the UAE typically runs from Sunday to Thursday, with Friday being a day of rest. Keep this schedule in mind when planning meetings and business activities.
• Negotiation Style: Negotiations in the UAE can be slow and deliberate. Be prepared for multiple rounds of negotiations and avoid aggressive or confrontational tactics. Emiratis value harmony and mutual respect in business dealings.
• Cultural Training: Consider providing cultural training to your employees who will be working in the UAE. This can help them navigate the nuances of the local culture and build stronger relationships.

By embracing cultural awareness and sensitivity, you can bridge cultural gaps and foster positive and productive business relationships in the UAE. Building trust and showing respect for local customs are key steps toward success in this dynamic and culturally rich market.

Tips for Managing Legal Differences When Doing Business in the UAE

Managing legal differences when doing business in the United Arab Emirates (UAE) is crucial for a successful and compliant business operation. The UAE has a unique legal system influenced by both civil law and Islamic law (Sharia). Here are some tips to help you navigate legal differences effectively:

• Consult with Legal Experts: Engage local legal experts who specialize in UAE business law. These professionals can provide you with up-to-date information and guidance on the legal aspects of your business, including licensing, contracts, and regulatory compliance.
• Choose the Right Business Structure: Decide on the most appropriate legal structure for your business, whether it’s a mainland company, a free zone entity, or an offshore company. Each has its own legal requirements and implications, so choose the one that aligns with your business goals.
• Understand Ownership Restrictions: Be aware of the UAE’s foreign ownership regulations, which vary depending on the type of business and the location (mainland or free zone). Some free zones allow 100% foreign ownership, while others require local sponsorship or a UAE national as a majority shareholder.
• Draft Clear Contracts: Contracts are essential in the UAE’s business environment. Ensure that all agreements, including partnerships, leases, and employment contracts, are well-drafted, clear, and compliant with UAE law. It’s often advisable to have contracts in both English and Arabic.
• Comply with Labor Laws: Familiarize yourself with UAE labor laws, which govern employment relationships. This includes regulations related to employment contracts, working hours, wages, and the hiring of foreign employees. Ensure that your employment practices are in line with these laws.
• Intellectual Property Protection: Protect your intellectual property by registering trademarks, copyrights, and patents in the UAE. Intellectual property rights are taken seriously in the country, and proper registration can safeguard your business interests.
• Taxation and Financial Reporting: Stay informed about UAE tax laws, including value-added tax (VAT). Comply with tax regulations and maintain accurate financial records. Consulting with tax experts can help you navigate this complex area.
• Import and Export Regulations: If your business involves international trade, understand the UAE’s import and export regulations. Comply with customs requirements and obtain the necessary permits and licenses for your products.
• Respect Cultural and Religious Sensitivities: Be aware of cultural and religious sensitivities when conducting business. Avoid practices or content that could be considered offensive or disrespectful in the UAE.
• Arbitration and Dispute Resolution: Include dispute resolution clauses in contracts specifying that any disputes will be resolved through arbitration in the UAE. UAE courts may enforce foreign arbitration awards under international conventions.
• Stay Updated on Regulatory Changes: UAE laws and regulations can change, so it’s essential to stay updated with any legal developments that may affect your business.
• Seek Government Approvals: Depending on your industry, you may need approvals from various government agencies. Work closely with government entities to ensure you have the necessary permits and clearances.
• Network and Build Relationships: Building relationships with local partners, government officials, and industry associations can help you navigate legal differences more smoothly. Local connections can provide valuable insights and support.

Remember that legal compliance is essential for long-term success in the UAE. By investing time and resources in understanding and adhering to the country’s legal framework, you can build a solid foundation for your business and mitigate legal risks.

Establish your Company in the United Arab Emirates

If you are looking to establish your company in the United Arab Emirates and require legal guidance and support, it is advisable to get in touch with a reputable firm like M.A. Middle East Legal Consultancy . They specialize in providing comprehensive legal services to businesses and individuals seeking to navigate the complex legal landscape of the UAE. Whether you need assistance with business registration, contract drafting, intellectual property protection, or compliance with local regulations, M.A. Middle East Legal Consultancy can offer you expert advice and help you streamline the process of establishing and running your company in the UAE.

To contact M.A. Middle East Legal Consultancy , you can reach out to them through their official website, email, or phone. Their team of experienced legal professionals will be able to assess your specific needs and provide tailored legal solutions to facilitate a smooth and legally compliant business setup in the UAE.

Please note that when initiating any business endeavor in a foreign country, it’s essential to conduct thorough due diligence and seek legal counsel to ensure compliance with all local laws and regulations.

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Doing Business in Dubai: Advantages, Challenges & Strategies

With a 3.2% increase in the first half of 2023 compared to the previous year, Dubai's business landscape has recently shown remarkable growth . Dubai is well-known for its progressive business environment and this is just one example of how dynamic and promising it is to do business there.

Understanding the local market dynamics is crucial for anyone considering entering this vibrant economic arena. Dubai's unique business culture, regulatory framework and economic policies require in-depth knowledge to successfully navigate and leverage available opportunities. 

This article aims to guide you through various crucial aspects of doing business in Dubai, so that your business can get a leg-up when you expand into this crucial Middle Eastern city.

Understanding the Dubai Market

Being a key component of the UAE, Dubai occupies a prominent position in the international business scene. The city's open economic policies and advantageous location have made it an important trading post connecting Asia, Africa, Europe and the Middle East. 

This dynamic economy, keen on diversifying and transitioning into a knowledge economy, offers vast opportunities for international businesses like yours. With Dubai as a pivotal player, the UAE has been the top U.S. export market in the Middle East and Africa region since 2009, demonstrating its global business relevance.

Federal and Emirate-Level Regulations

There is a distinct regulatory framework in place for business in Dubai and it includes rules set by both the federal government and the emirates. With the help of their large oil reserves and sovereign wealth funds, the national and emirate-level governments put a lot of money into diversifying their economies. 

With an eye towards becoming an even more important regional and international centre for digital technology, tourism, logistics and trade, Dubai's regulatory environment reflects this ambition. Nevertheless, enterprises face structural and regulatory obstacles that necessitate meticulous planning and anticipation. Due diligence is absolutely crucial when it comes to Dubai’s specific regulatory environment to effectively avoid pitfalls and leverage the market's potential.

2021 Regulatory Changes

The United Arab Emirates' massive legal reform programme included major regulatory changes in 2021 and Dubai was no exception. There were substantial shifts in the regulatory landscape for businesses with the passage of Federal Decree-Law No. 32 of 2021 on Commercial Services (CCL 2021) . This new law supersedes the old CCL 2015 and combines recent changes while making conservative adjustments.

The CCL 2021 brought new provisions that changed how businesses and transactions were structured. These changes have updated corporate governance frameworks and made it possible for foreign investors to own 100% of local businesses within certain federal restrictions. Investment confidence in Dubai and the UAE as a whole has been steadily rising thanks to the progressive legal climate.

Which Are the High-Demand Sectors in Dubai?

Dubai's business landscape in 2023 is characterized by a variety of high-demand sectors, each contributing to the emirate's dynamic economic growth. These sectors include:

• Healthcare and Medical Services
• Finance and Fintech
• Technology and IT Services
• Tourism and Hospitality
• E-commerce and Online Marketplaces
• Education and Training Services
• Event Management
• Real Estate and Construction
• Consultancy Services
• Media and Entertainment
• Logistics and Transportation
• Oil, Gas & Energy

Some of Dubai's most important economic drivers are the rapidly expanding fields of online retail, education, event planning, real estate, consulting, media, logistics and energy. From gaming to finance, the tech and IT services sector has revolutionised numerous industries with ground-breaking innovations in VR/AR, blockchain and AI. 

As a result of digitisation and widespread internet access, online shopping and mobile commerce are also experiencing explosive growth in the e-commerce industry. The field of education is also quickly moving online, with EdTech and online learning both rising to the forefront.

Why Should You Expand Your Tech Business to Dubai?

Dubai’s tech industry is a burgeoning field, marked by innovation and growth. The city offers unique opportunities, making it an attractive destination for tech companies looking to expand. 

In this section, we explore various aspects that make Dubai a favourable environment for tech businesses, including financial benefits, tax structures and opportunities for foreign investment.

1. No restrictions on profit transfer or capital repatriation

Dubai is known for its financial freedoms, particularly the absence of restrictions on profit transfer and capital repatriation. This policy allows businesses to move their profits and capital back to their home country without limitations, a stark contrast to many global tech hubs where such transfers can be encumbered by regulations and taxes. This freedom not only enhances liquidity for businesses but also provides greater flexibility in managing global operations.

2. Low corporate tax

Dubai's corporate tax structure is remarkably beneficial for tech businesses. The city's low corporate tax rates significantly reduce the financial burden on companies, allowing them to reinvest more of their profits into growth and development. This competitive tax environment is a major draw for tech companies when compared to higher-tax jurisdictions, providing a substantial financial advantage.

3. Zero income tax

The implication of zero income tax in Dubai is a substantial draw for both businesses and employees. This policy means that individuals keep more of their earnings, making Dubai an attractive location for top talent. Compared to other countries where income tax can significantly reduce take-home pay, Dubai's tax structure is advantageous for attracting and retaining skilled professionals.

4. Low import duties

Dubai's low import duties facilitate a more cost-effective supply chain and pricing strategy for tech businesses. This aspect of the city's trade policy reduces the cost of importing necessary technology and equipment, allowing companies to maintain competitive pricing and margins. This is particularly beneficial when compared to markets with higher import duties, where such costs can inflate prices and narrow profit margins.

5. Competitive Labour Costs

Labour costs in Dubai are competitive when compared to other global tech centres. This cost efficiency allows tech businesses to operate with a skilled workforce without the high salary demands present in some other tech hubs. This competitive advantage helps companies maintain healthy financials while attracting skilled professionals.

6. 100% Foreign Ownership in Many Sectors

Dubai’s laws on foreign ownership present significant opportunities for international investors. In many sectors, including technology, you can have 100% ownership of your business within a Free Zone. This level of control is often restricted in other countries, making Dubai particularly attractive for foreign investors and entrepreneurs looking to have complete autonomy over their operations.

Everything You Need to Know About Dubai Free Trade Zones (FTZs)

Following the exploration of why Dubai is an appealing destination for tech businesses like yours, let’s shift our focus now to the Free Trade Zones (FTZs) - a cornerstone of Dubai's economic landscape.

The Dubai Free Trade Zones, with their unique benefits and conducive business environment, offer a compelling proposition for businesses seeking growth and expansion in a globally connected and economically vibrant region. Let’s take a closer look:

What is a FTZ?

A Free Trade Zone (FTZ) is a designated area within a country where businesses are subject to different economic regulations than the rest of the country. In Dubai, FTZs have been pivotal in driving the nation’s economic success since their inception in the 1980s. These zones are designed to boost entrepreneurship and provide exciting opportunities for your business. 

As of 2021, over 60,000 businesses were registered in UAE's free zones, highlighting their popularity and success​.

Benefits of FTZs

Tax exemptions and reduced corporate taxes.

Businesses operating in Dubai’s FTZs enjoy significant tax benefits. These zones offer 0% tax on income, allowing your business to retain a larger share of its profits. This is in stark contrast to the global norm where corporate entities are subject to varying levels of taxation. The tax exemptions in FTZs provide a competitive edge, particularly for businesses in sectors where margins are crucial.

Repatriation of capital and profits

FTZs in Dubai facilitate the easy repatriation of capital and profits for businesses. This financial freedom is not commonly found in many other global markets, where restrictions and taxes on profit transfer and capital repatriation can be stringent. The ability to freely move profits back to a home country without limitations provides businesses with greater flexibility in managing their finances and investment strategies.

No personal income taxes and simplified documentation

For employees working in Dubai's FTZs, the benefit of zero personal income tax is a significant draw. This allows individuals to enjoy the full benefit of their earnings, making Dubai an attractive destination for talent. Additionally, the FTZs offer streamlined administrative processes, simplifying the documentation and operational requirements for businesses. This ease of doing business is an attractive feature for companies looking to set up quickly and efficiently in Dubai.

How to Set Up a Business in a Dubai FTZ (Step-by-Step)

Setting up a business in a Dubai Free Trade Zone (FTZ) is a streamlined process, designed to encourage investment and business growth. These zones offer unique benefits and cater to specific business needs, making them an attractive choice for businesses like yours.

Here, we outline the steps to open your FTZ company.

Step 1: Research and Choose the Right Free Trade Zone

The first step involves researching and choosing the appropriate FTZ. Dubai boasts a variety of FTZs, each with its own sector specializations. It is crucial to select an FTZ that aligns with your business needs and sector. Consider the unique advantages of each FTZ, such as logistics facilities, technological infrastructure and proximity to key markets.

Dubai offers a diverse range of Free Trade Zones (FTZs), each catering to specific business sectors. Here's a short list of notable FTZs in Dubai:

Dubai South: Supports businesses in emerging technologies such as AI.

Dubai World Trade Centre (DWTC): Specializes in innovation and finance.

Dubai Design District (D3): A creative hub for art, design and fashion companies.

Dubai Science Park: Dedicated to science and scientific research companies.

Dubai Silicon Oasis Authority: Caters to high-tech and innovative businesses.

Dubai International Financial Centre (DIFC): A leading global financial hub.

Dubai Internet City: Home for companies in emerging technologies.

Meydan Free Zone: Ideal for investors and supports commercial, consulting and administrative companies.

Dubai Studio City: Focuses on TV, radio and film production.

Dubai Media City (DMC): Supports all forms of media and communications.

Dubai Airport Free Zone (DAFZ): Supports businesses related to Dubai Airport.

Dubai Expo City: Host of Dubai Expo 2020, with various attractions and facilities.

Dubai Knowledge Park: A hub for creative businesses and individuals.

Jebel Ali Free Zone (JFZA): A major business hub with links to over 150 ports.

Step 2: Develop a Business Plan

A robust business plan tailored for Dubai’s market is essential. Your plan should address the specific requirements and regulations of the chosen FTZ. Key components include market analysis, financial projections and strategies for leveraging the FTZ's benefits.

Step 3: Company Registration and Legal Formalities

Next, you need to register your company and complete the legal formalities. This process involves submitting various documents, such as business plans and owner identification. Each FTZ has unique legal procedures and it's crucial to understand and follow these to ensure smooth registration.

Step 4: Obtain Necessary Licenses

Different types of licenses are available in FTZs, depending on your business activities. Applying for the correct license is vital and may involve sector-specific requirements. Understanding the licensing process in your chosen FTZ is key to compliance and operational success.

Step 5: Opening a Corporate Bank Account

Opening a corporate bank account in Dubai requires navigating specific documentation and compliance requirements. This process can vary based on the bank and FTZ, so it's important to prepare and understand what is needed for a successful account setup.

Step 6: Visa Processing and Employee Hiring

Obtaining visas for business owners and employees is a crucial step. This includes understanding visa types, application procedures and compliance with local immigration laws. Additionally, guidelines for hiring staff, both local and international, must be considered to ensure adherence to employment regulations.

Step 7: Complying with FTZ Rules and Regulations

Ongoing compliance with FTZ rules and regulations is vital for smooth operations. Regularly updating knowledge of these rules and ensuring your business adheres to them is essential for long-term success in the FTZ.

Step 8: Market Entry and Business Launch

Finally, strategies for market entry and business launch are crucial. This includes understanding the local market, establishing business networks and implementing effective marketing strategies. A successful launch in a Dubai FTZ requires careful planning and a strong understanding of the local business landscape.

When to Consider a Non-FTZ Business Setup

Having explored the advantages and processes of setting up a business in Dubai's Free Trade Zones (FTZs), it's essential to understand scenarios where a non-FTZ business setup might be more advantageous for your business. 

This section offers insights into when and why a non-FTZ setup could be the preferred choice.

1. Market Accessibility and Customer Proximity

Non-FTZ companies in Dubai benefit from direct integration with the domestic market. This setup allows businesses to trade directly with local customers, crucial for sectors that require immediate market feedback or whose operations are significantly impacted by customer proximity. A non-FTZ setup is ideal for businesses aiming for a strong presence in the local market and direct interaction with their customer base.

The geographical location of a business in a non-FTZ area can significantly influence its operations and logistics. Proximity to customers and suppliers in non-FTZ areas can streamline supply chains and reduce transportation costs. This can be particularly beneficial for businesses that require frequent and quick distribution of products or services to the local market.

2. Regulatory and Ownership Considerations

The regulatory framework in non-FTZ areas of Dubai differs from that in FTZs. Businesses in non-FTZ areas must navigate a different set of rules and compliance requirements. While FTZs offer simplified processes and incentives, non-FTZ setups require adherence to local business laws and regulations, which can be more intricate but vital for specific business activities.

In non-FTZ areas, foreign ownership is often restricted and businesses may need to form partnerships with local Emiratis. This contrasts with the 100% foreign ownership allowed in FTZs. The need for a local partner in a non-FTZ setup impacts profit-sharing, decision-making and operational control, which are crucial factors for foreign investors to consider when setting up their business in Dubai.

3. Sector-Specific Advantages

Certain sectors stand to gain more from a non-FTZ setup, especially those that require a close relationship with the local economy. Industries such as retail, construction and various service sectors may find more advantages in being directly integrated with the domestic market. For these industries, a non-FTZ setup can facilitate better market penetration and customer engagement.

The regulatory landscape outside FTZs can significantly influence business operations. Sector-specific regulations and licensing requirements in non-FTZ areas can vary greatly from those in FTZs. Businesses in these sectors must carefully consider how these regulations impact their operations, compliance and overall business strategy.

Utilising Employer of Record (EOR) Services to Hire in Dubai

Transitioning from the considerations of FTZ and non-FTZ setups, the focus now shifts to the strategic use of Employer of Record (EOR) services for your business expansion plans to Dubai . 

In a nutshell, EORs are third-party organizations that handle employment responsibilities on behalf of a company, particularly useful in complex employment environments like Dubai. They focus on hiring within the UAE (and whichever market you want to expand to) and global payroll compliance , so that your business can continue to focus on doing what it knows best.

Let’s take a quick look at the biggest benefits of partnering with an EOR for your Dubai business expansion:

Benefits of Using EORs

1. compliance with local employment laws and regulations.

EORs ensure businesses fully comply with Dubai's intricate employment laws and regulations. They manage all legal aspects of employment, from contracts to benefits and termination processes, significantly.

2. Streamlined Hiring and Payroll Management

EORs expedite the hiring process, eliminating the need for a local entity. They handle all payroll administration, including tax and social security, enhancing operational efficiency and leading to cost savings.

3. Flexibility and Scalability for Business Operations

EOR services offer businesses the flexibility to scale operations without changing legal structures. They enable companies to explore new markets with minimal risk and investment, allowing you to concentrate on core business functions while the EOR manages employment-related tasks.

In this comprehensive guide, we have navigated through the multifaceted landscape of doing business in Dubai. From understanding the dynamic Dubai market and its high-demand sectors to exploring the strategic reasons for expanding your tech business to Dubai, we've covered essential aspects to inform and guide your business decisions.

If you're considering expanding your business into the thriving Dubai market, consider partnering with an experienced EOR like ours. For further insights, personalised advice and support in making your Dubai market entry successful, contact us today .

Adam DeSanges

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Who are Emerald’s customers?

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Doing business in the UAE

There are a number of factors that make the UAE a high growth market. Among these are its business-friendly environment, strategic location as a global trading hub, world-class infrastructure, and favourable government policies in promoting trade and investment. Having maintained resilience during the Covid-19 pandemic, the country is well positioned to capture a return to pre-pandemic growth levels across sectors, thereby opening up new opportunities for companies doing business

Trade and economic overview

Despite being one of the Middle East’s most diversified economies, the United Arab Emirates (UAE) suffered from the effects of the Covid-19 crisis, both in terms of low oil prices and reduced global demand, and the impact of global lockdown measures on vital non-oil economic sectors such as tourism. According to Central Bank estimates for 2020, total GDP contracted by 5.8%, with non-hydrocarbon GDP declining by 5.7%.

Nevertheless, the latest data suggests that the economy is on the path to revival. In early April 2021, the International Monetary Fund (IMF) revised the Gulf state’s overall economic growth forecast for the year to 3.1%, from 1.3% in October 2020, citing as reasons for the adjustment the recent improvements in the oil sector, Expo 2020 – which kicks off in October – and the UAE’s positive and proactive handling of the coronavirus as one of the “league of early inoculators worldwide”.

“We have started to see a stabilisation and an uptick in trade flows over the last few months,” says Yusuf Ali Khan, Trade Head for Middle East, North Africa and Pakistan, Treasury and Trade Solutions at Citi. “According to the Dubai Chamber of Commerce and Industry, the UAE’s non-oil trade is expected to post almost 13% growth in 2021. We’re likely to see a pick-up in the hospitality, tourism and leisure industry, especially as we head into Expo 2020, which was delayed from last year due to the pandemic. This event will act as a catalyst in terms of promoting trade and investment opportunities for companies across sectors.”

A number of pandemic support measures have been introduced by the UAE government, both at the Federal and Emirate level. In early 2020, it was announced that financial stimulus worth some US$70bn would be rolled out by the government to reduce the cost of doing business in the country, supporting small businesses, and accelerating the implementation of major government infrastructure projects.

At the same time, the UAE Central Bank introduced the ‘Targeted Economic Support Scheme’ – since extended until June this year – which provides temporary relief from the payments of principal and/or interest on outstanding loans for all affected private sector corporates, SMEs and individuals. The scheme aims to relieve existing capital buffers to facilitate the lending capacity of banks operating in the country.

More recently, and an important contributing factor to its future growth, the UAE has been widely praised for its response to the virus, which initially saw the implementation of strict lockdown measures, before a gradual reopening and the roll out of one of the world’s fastest vaccination programmes.

“All of these influences – the government policies and stimulus packages, the expectations around Expo 2020, the rising oil prices and the vaccine success – combined with the opening up of global trade and travel, are acting as enablers to create stability, re-establish demand and drive growth,” says Khan.

Geopolitical relations

The historic peace agreement signed between the UAE and Israel in August last year is also expected to unlock trade and investment opportunities.

“This is another key enabler, which is going to be a game-changer for both countries, as opportunities that have been missed for so many decades can now finally be captured,” says Khan. “International banks that have a significant presence in both countries, such as Citi, have a key role to play, but this does not preclude local banks from both countries who have sought licenses to start operations.”

As reported by credit insurance provider Atradius in recent economic research, according to various sources, including officials from both countries, the agreement could drive annual bilateral trade between the two nations in the medium term to anywhere between US$4bn and US$6.5bn, equivalent to about 1% to 1.5% of each nation’s GDP.

“UAE companies can satisfy Israeli demand for aluminium, ceramics and other construction materials, while Israeli companies can help the UAE advance in the high-tech field,” the report notes.

There are also synergies in terms of market access, says Khan. “As an historical trading hub, the UAE can be Israel’s gateway to trade corridors from the East, and even Africa.”

A conducive business environment

Already considered a centre of business opportunity, there are ongoing efforts within the UAE to improve its ease of doing business ranking. According to the World Bank’s Doing Business 2020 report, the country is now in 16th place – the strongest performer overall in the region.

The UAE government is taking measures to develop legislation, procedures, as well as cost and time of doing business to further boost operating conditions for the private sector, and has rolled out a number of reforms to attract foreign investment and companies.

As of 2019, the country allows 100% foreign ownership of companies in 13 sectors, including manufacturing, agriculture and renewable energy.

More recently, in March this year, the government announced a new “remote work visa” initiative to enable people from all over the world who are employed at companies based in other countries to live and work in the UAE for a period of one year.

The same month, the UAE launched a new industrial strategy called ‘Operation 300bn’ to boost growth in the industrial sector. The government has said that the strategy will seek to improve and promote local products on a global level and build “an attractive business environment for local and international investors to boost productivity”.

As part of the new strategy, the Ministry of Industry and Advanced Technology is expected to introduce programmes and initiatives to support 13,500 industrial SMEs.

“The government has created an enabling, business-friendly environment that has at its core seamlessness in terms of companies being able to move into the UAE and establish operations either onshore or offshore in Dubai International Finance Corporation (DIFC) or Abu Dhabi Global Markets (ADGM) with strong dispute resolution mechanisms,” says Khan.

Nevertheless, he advises that companies wanting to set up in the UAE should have a “clear game plan” in terms of whether they will operate as a free zone, onshore or offshore business, and should access the resources available to them to understand the correlated regulations. Companies should also take note of increased efforts by the UAE government towards, for example, greater UAE national inclusion in the workforce.

Establishing relevant partnerships is key, says Khan. “Companies would do well to partner with a bank that can act as a ‘one-stop shop’ in terms of providing both liquidity management and trade finance support. At the same time, complementary to that, companies will need an independent consultant to equip them with advice on important matters such as taxation,” he adds.

Digitisation efforts

Over the years, the UAE government has taken a number of steps towards establishing a strong digital economy, which contributes 4.3% to the nation’s GDP. The country is widely considered one of the most advanced in the world in the field of technology and the adoption of modern technologies.

Progress made in terms of digital transformation has not only helped companies to adapt to new realities in the current environment, but has also given rise to new innovation.

This has been particularly advantageous given Covid-19 lockdown measures and the need for digital solutions to carry out trade transactions and keep goods moving, such as Citi’s CitiDirect BE electronic banking platform, where documents can be completed, processed and tracked digitally.

The bank has recently introduced a solution for clients in the UAE to automate cross-currency payments into key trade corridors, integrating FX into the payment process and providing end-to-end visibility and full automation.

“We’ve achieved just over 80% automation in our trade business in the UAE, from about 54% a year ago,” says Khan. “I’m proud to say that it is by far the market with our highest level of automation in trade. It is very significant given the large volumes. That is the power that digitisation has, and a lot of that has been spurred on by Covid-19.”

Citi’s “Doing business in….” series, exclusive to GTR, takes a look at the practicalities of doing business in, and engaging in cross-border trade with, high-growth, complex markets. This second instalment focuses on the UAE, and showcases the views of Yusuf Ali Khan, Trade Head for Middle East, North Africa and Pakistan, Treasury and Trade Solutions at Citi.

Tags: Citi , Fatr , UAE , Yusuf Ali Khan

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This privacy statement does not cover the activities of third parties, and you should consult those third-party sites’ privacy policies for information on how your data is used by them.

Any questions regarding this Policy and our privacy practices should be sent by e-mail to [email protected] or by writing to Data Protection Officer at, Exporta Publishing & Events Ltd, 4 Hillgate Place, London, SW12 9ER, United Kingdom. Alternatively, you can telephone our London headquarters at +44 (0) 20 8673 9666.

Who are we?

Established in 2002 and with offices in London and Singapore, Exporta Publishing & Events Ltd is the world’s leading trade and trade finance media company, offering information, news, events and services for companies and individuals involved in global trade.

Our principal business activities are:

• Business-to-Business financial publishing. We provide a range of products and services focused on international commodities, export, supply chain and trade finance markets including magazines, newsletters, electronic information and data
• Organisers of seminars, conferences, training courses and exhibitions for the finance industry

Exporta Publishing & Events Ltd is a company registered in the United Kingdom with company number 4407327 | VAT Registration: 799 1585 59

Data Protection Policy

This Data Protection Policy explains when and why we collect personal information about people who visit our website, how we use it, the conditions under which we may disclose it to others and how we keep it secure.

Why do we collect information from you?

Our primary goal in collecting personal data from you is to give you an enjoyable customised experience whilst allowing us to provide services and features that will meet your needs. We collect certain personal data from you, which you give to us when using our Site and/or registering or subscribing for our products and services. However, we also give you the option to access our Sites’ home pages without subscribing or registering or disclosing your personal data.

We also collect certain personal data from other group companies to whom you have given information through their websites (including, by way of example, Exporta Publishing & Events Ltd and subsidiaries, in accordance with the purposes listed below). Should we discover that any such personal data has been delivered to any of the Sites, we will remove that information as soon as possible.

Why this policy exists

This Data Protection Policy ensures Exporta Publishing & Events Ltd:

• Complies with data protection law and follow good practice
• Protects the rights of staff, customers and partners
• Is open about how it stores and processes individuals’ data
• pretexts itself from the risk of a data breach

We may change this Policy from time to time so please check this page occasionally to ensure that you’re happy with any changes. By using our website, you’re agreeing to be bound by this Policy.

Data protection law

The Data Protection Act 1998 described how organisations – including Exporta Publishing & Events Ltd – must collect, handle and store personal information. These rules apply regardless of whether data is stored electronically, on paper or on other materials. To comply with the law, personal information collected must be stored safely, not disclosed unlawfully and used fairly.

The Data Protection Act is underpinned by eight important principles. These say that personal data must:

• Be processed fairly and lawfully
• Be obtained only for specific, lawful purposes
• Be adequate, relevant and not excessive
• Be accurate and kept up to date
• Not be held for any longer than necessary
• Processed in accordance with the rights of data subjects
• Be protected in appropriate ways
• Not be transferred outside the European Economic Area (EEA), unless that country of territory also ensures an adequate level of protection

How do we collect information from you?

We obtain information about you when you use our website, for example, when you contact us about products and services, when you register for an event, register to receive eNewsletters, subscribe or register for a trial to our GTR magazine/website.

  Types of Personal Data Held and its Use

1.      customer services and administration.

On some Sites, Exporta Publishing & Events Ltd collects personal data such as your name, job title, department, company, e-mail, phone, work and/or home address, in order to register you for access to certain content, subscriptions and events. In addition, we may also store information including IP address and page analytics, including information regarding what pages are accessed, by whom and when.

This information is used to administer and deliver to you the products and/or services you have requested, to operate our Sites efficiently and improve our service to you, and to retain records of our business transactions and communications. By using the Sites and submitting personal information through the registration process you are agreeing that we may collect, hold, process and use your information (including personal information) for the purpose of providing you with the Site services and developing our business, which shall include (without limitation) the purposes described in the below paragraphs.

2.      Monitoring use of our Sites

Where, as part of our Site services, we enable you to post information or materials on our Site, we may access and monitor any information which you upload or input, including in any password-protected sections. Subject to any necessary consents, we also monitor and/or record the different Sites you visit and actions taken on those Sites, e.g. content viewed or searched for. If you are a registered user (e.g. a subscriber or taking a trial), when you log on, this places a cookie on your machine. This enables your access to content and services that

are not publicly available. Once you are logged on, the actions you take – for example, viewing an article – will be recorded (subject to any necessary consents). We may use technology or a service provider to do this for us. This information may be used for one or more of the following purposes:

• to fulfil our obligations to you;
• to improve the efficiency, quality and design of our Sites and services;
• to see which articles, features and services are most read and used
• to track compliance with our terms and conditions of use, e.g. to ensure that you are acting within the scope of your user licence;
• for marketing purposes (subject to your rights to opt-in and opt-out of receiving certain marketing communications) – see paragraph 3 below;
• for advertising purposes, although the information used for these purposes does not identify you personally. Please see paragraph 5 below for more details;
• to protect or comply with our legal rights and obligations; and
• to enable our journalists to contact and interact with you online in connection with any content you may post to our Sites.

Please see paragraph 5 below for more information on cookies and similar technologies and a link to a page where you can turn them on or off.

3.      Marketing

Some of your personal data collected under paragraphs 1 and 2 above may be used by us to contact you by e-mail, telephone and/or post for sending information or promotional material on our products and/or services and/or those of our other group companies. We give you the opportunity to opt-out of receiving marketing communications. Further detail can be found on the applicable Site and in the footer of each marketing communication sent by us, our group companies or service providers. See also “Consents and opt-outs” section below. We will not share your information with third parties for marketing purposes.

4.      Profiling

We may analyse your personal information to create a profile of your interests and preferences so that we can contact you with information relevant to you.

5.      Cookies and similar technologies

All our Sites use cookies and similar technical tools to collect information about your access to the Site and the services we provide.

What is a cookie?

When you enter some sites, your computer will be issued with a cookie. Cookies are text files that identify your computer to servers. Cookies in themselves do not identify the individual user, just the computer used.

Many sites do this whenever a user visits their site in order to track traffic flows, recording those areas of the site that have been visited by the computer in question, and for how long.

Users have the opportunity to set their computers to accept all cookies, to notify them when a cookie is issued, or not to receive cookies at any time. Selecting not to receive means that certain personalised services Exporta Publishing & Events Ltd offers cannot then be provided to that user.

Why do we use cookies?

• Log In – Where we provide log in mechanisms for site users a cookie is created at login and for the duration of the session. Each cookie contains a unique reference number only (no personal information) which is used to confirm you are authorised.
• Analytics – To allow us to keep track of traffic to our website we use cookies. The cookies simply tell us if you have previously visited our website so we can get more accurate figures for New vs Returning visitors.

Find and control your cookies

All of the major browser providers offer advice on setting up and using the privacy and security functions for their products. If you require technical advice or support for a specific browser/version please contact the provider or visit their website for further details: www.microsoft.com / www.mozilla.com / www.apple.com / www.opera.com / www.aol.com / www.netscape.com / www.flock.com / www.google.com.

We may use cookies to:

• remember that you have used the Site before; this means we can identify the number of unique visitors we receive to different parts of the Site. This allows us to make sure we have enough capacity for the number of users that we get and make sure that the Site runs fast enough
• remember your login session so you can move from one page to another within the Site;
• store your preferences or your user name and password so that you do not need to input these details every time you visit the Site;
• customise elements of the layout and/or content of the pages of Site for you;
• record activity on our Sites so that we understand how you use our Sites enabling us to better tailor our content, services and marketing to your needs;
• collect statistical information about how you use the Site so that we can improve the Site; and
• gather information about the pages on the Site that you visit, and other information about other websites that you visit, so as to place you in a “market segment”. This information is only collected by reference to the IP address that you are using, but does include information about the county and city you are in, together with the name of your internet service provider.

Most web browsers automatically accept cookies but, if you prefer, you can change your browser to prevent that, or to notify you each time a cookie is set. You can also learn more about cookies in general by visiting www.allaboutcookies.org which includes additional useful information on cookies and how to block cookies using different types of browser. Please note however, that by blocking, deleting or turning off cookies used on the Site you may not be able to take full advantage of the Site.

6.      E-mail tracking

E-mail tracking is a method for monitoring the e-mail delivery to those subscribers who have opted-in to receive marketing e-mails from GTR, including GTR Africa, GTR Asia, GTR Americas, GTR Europe, GTR Mena, GTR eNews, Third party e-mails and GTR Ventures.

Why do we track e-mails? So that we can better understand our users’ needs, we track responses, subscription behaviour and engagement to our e-mails – for example, to see which links are the most popular in newsletters. They enable us to understand the consumers journey through metrics including open rate, click-through rate, bounces and unsubscribes. Any other purposes for which Exporta Publishing & Events Ltd wishes to use your personal data will be notified to you and your personal data will not be used for any such purpose without obtaining your prior consent. How do you track GTR eNewsletters?

To do this, we use pixel GIFs, also known as “pixel tags” – these are small image files that are placed within the body of our e-mail messages. When that image is downloaded from our web servers, the e-mail is recorded as being opened. By using some form of digitally time-stamped record to reveal the exact time and date that an e-mail was received or opened, as well the IP address of the recipient.

7.      Consents and opt-outs

You can give your consent to opt-out of all or any particular uses of your data as indicated above by:

• Indicating at the point on the relevant Site where personal data is collected
• Informing us by e-mail, post or phone
• Updating your preferences on the applicable Site or eNewsletter (unsubscribe and preference options are available in the footer of each eNewsletter)

To turn cookies and similar technologies on and off, see the information in paragraph 5 above. Any questions regarding consents and opt-outs should be sent by e-mail to [email protected] or by writing to Data Protection Officer at, Exporta Publishing & Events Ltd, 4 Hillgate Place, London, SW12 9ER, United Kingdom. Alternatively, you can telephone our London headquarters at +44 (0) 20 8673 9666.

8.      Disclosures

Information collected at one Site may be shared between Exporta Publishing & Events Ltd and other group companies for the purposes listed above.

We may transfer, sell or assign any of the information described in this policy to third parties as a result of a sale, merger, consolidation, change of control, transfer of assets or reorganisation of our business.

9.      Public forums, message boards and blogs

Some of our Sites may have a message board, blogs or other facilities for user generated content available and users can participate in these facilities. Any information that is disclosed in these areas becomes public information and you should always be careful when deciding to disclose your personal information.

10.  Data outside the EEA

Services on the Internet are accessible globally so collection and transmission of personal data is not always limited to one country. Exporta Publishing & Events Ltd may transfer your personal data, for the above-listed purposes to other third parties, which may be located outside the European Economic Area and/or with a different level of personal data protection. However, when conducting transfers, we take all necessary steps to ensure that your data is treated reasonably, securely and in accordance with this Privacy Statement.

Who has access to your information?

Confidentiality and security of your personal data.

We are committed to keeping the data you provide us secure and will take reasonable precautions to protect your personal data from loss, misuse or alteration.

However, the transmission of information via the internet is not completely secure. Although we will do our best to protect your personal data, we cannot guarantee the security of your data transmitted to our Site; any transmission is at your own risk. Once we have received your information, we will use strict procedures and security features described above to try to prevent unauthorised access.

We have implemented information security policies, rules and technical measures to protect the personal data that we have under our control from:

• unauthorised access
• improper use or disclosure
• unauthorised modification
• unlawful destruction or accidental loss

All our employees, contractors and data processors (i.e. those who process your personal data on our behalf, for the purposes listed above), who have access to, and are associated with the processing of your personal data, are obliged to keep the information confidential and not use it for any other purpose than to carry out the services they are performing for us.

Responsibilities

Everyone who works for or with Exporta Publishing & Events Ltd has some responsibility for ensuring data is collected, stored and handled appropriately. Each team handling personal data must ensure that it is handled and processed in line with this policy and data protection principles. However, the following people have key areas of responsibility. The board of directors is ultimately responsible for ensuring that Exporta Publishing & Events Ltd meets its legal obligations.

Name of Data Controller

The Data Controller is Exporta Publishing & Events Ltd. Exporta Publishing & Events Ltd is subject to the UK Data Protection Act 1998 and is registered in the UK with the Information Commissioner`s Office.

How to access, update and erase your personal information

If you wish to know whether we are keeping personal data about you, or if you have an enquiry about our privacy policy or your personal data held by us, in relation to any of the Sites, you can contact the Data Protection Officer via:

• By writing to this address: Data Protection Officer, Exporta Publishing & Events Ltd, 4 Hillgate Place, London, SW12 9ER, UK
• Telephone: +44 (0) 20 8673 9666
• E-mail: [email protected]

Upon request, we will provide you with a readable copy of the personal data which we keep about you. We may require proof of your identity and may charge a small fee (not exceeding the statutory maximum fee that can be charged) to cover administration and postage.

Exporta Publishing & Events Ltd allows you to challenge the data that we hold about you and, where appropriate in accordance with applicable laws, you may have your personal information:

• rectified or amended

Disclosing data for other reasons

In certain circumstances, the Data Protection Act allows personal data to be disclosed to law enforcement agencies without the consent of the data subject. Under these circumstances, Exporta Publishing & Events Ltd, will disclose requested data. However, the Data Controller will ensure the request is legitimate, seeking assistance from the board and from the company’s legal advisors where necessary.

Changes to this Privacy Statement

We will occasionally update this Privacy Statement to reflect new legislation or industry practice, group company changes and customer feedback. We encourage you to review this Privacy Statement periodically to be informed of how we are protecting your personal data.

Providing information

Exporta Publishing & Events Ltd aims to ensure that individuals are aware that their data is being processed, and that they understand.

• How the data is being used
• How to exercise their rights

To this end, the company has a privacy statement, setting out how data relating to individuals is used by the company. This is available on request and available on the company’s website.

Review of this policy

We keep this Policy under regular review. This Privacy Statement was last updated in April 2018.

• +97145531391
• [email protected]

How to start a Business in Dubai

It is no secret in the business community that Dubai has been highly ranked among the most attractive spots for starting a company for quite some time now, and for good reasons. From convenient logistics, a strong economy, and favorable government policies for businesses and entrepreneurs to massive opportunities for brand recognition, networking, cultural exchange, and high-quality lifestyle, the city offers all of it and beyond. Whatever company type you intend to run and whichever activity you plan to focus on, Dubai has them covered. If you want your business to flourish, your investments to pay off at great ROI rates, and your brand to be globally recognized, look no further.

As complex and tricky as the undertaking of setting up a business in Dubai may seem from the get-go, it can be broken down into a list of simple and feasible steps. Of course, there will be a variety of different details and considerations to take into account, but the overall business setup scenario and the essential prerequisites for it do not vary as much as one would think. To get you going, we have compiled a general start-up guide that will aid you in preparing for the steps you’ll need to take on this journey and a list of reasons for you to do it.

Why Choose Dubai?

The UAE and Dubai in particular are extremely business and investor friendly. Dubai is globally known as one the world’s leading business and economic hubs, home to thousands of international companies and an immense workforce, a substantial part of which consists of foreigners and expats. The UAE Government has implemented a number of policies that support foreign businesses and facilitate the process of starting and running a company in the country. It has a great number of economic free zones with a wide range of setup packages on offer to suit the needs of every conceivable business type. In addition, the abovementioned governmental policies allow for a number of benefits you and your company will be eligible for, including:

• Blooming economy: The UAE’s economy has been on the rise for several decades, offering incredible opportunities for life and business. Among the Arab states, it is second only to Saudi Arabia, and its location is very beneficial in terms of logistics.
• Tax benefits: Apart from the 5% VAT, the UAE tax policy provides 0% personal and corporate incomes tax. Most of the free zones also boast 100% repatriation of capital and profits, as well as 100% import and export tax exemption.
• Activity scope: You can choose any industry sector and specific activity to engage in. Many UAE free zones offer unique advantages for particular business types and industries, and Dubai is famous for its networking capabilities.
• Life quality: Dubai is not only a major economic but also a cultural hub. Its diverse multinational population provides countless opportunities for cultural exchange and life experiences in combination with massive residential development and all possible quality-of-life amenities.
• Business support: Each emirate has its own particular business support policies in place, but the common theme is the utmost facilitation of the process of setting up a business, which often takes just a single day. The advantages include digital paperwork, startup accelerators, visa eligibility, various setup types, and many others.

Preliminary Preparations for Business Setup: Tips & Recommendations

Naturally, the easiest way to avoid most of the potential complications related to company formation is to have a business plan prepared in advance. This is why we would advise taking your time to research the information available online regarding your future endeavor. There are plenty of information sources for you to look into, from official websites of UAE and Dubai government agencies and free zones to business consulting firms and social media. Here is what we would recommend:

• When it comes to official websites of free zones and authorities, pay close attention to the laws, rules, and regulations relevant to opening a business in the UAE and Dubai in particular.
• It is vital to consider your financial capabilities and the corresponding options with regard to your future business setup, location, and other factors. Study the latest online data on taxes, license costs, office rent, and additional fees you will face.
• We highly recommend you to try networking with other entrepreneurs to figure out the not-so-obvious potential bottlenecks and ways to overcome them. Many people have gone through the same process and might be willing to share their experiences, both positive and negative.

In short, gather as much information as you can, especially from reliable government sources. All the collected data will come in handy once you dive into the process of opening your company, and the time you spend on preparations will prove very worthwhile in the long run.

Opening a Business in Dubai: Company Formation Process & Requirements

Here is the list of pivotal steps for you to follow and information to consider in order to successfully start a business in Dubai.

1. Choose a business activity: Determine the type of business activity you want to pursue in Dubai. Research the market demand, competition, and feasibility of your particular business activity with regard to the potential location and business setup.

2. Choose a legal structure: Decide on the fitting company formation type for your business – for example, a sole proprietorship, partnership, limited liability company (LLC), a free zone company (FZC or FZE), or a branch of a foreign company. Each legal structure comes with its own requisite conditions and advantages.

3. Choose a company name: Pick a set of unique and appropriate trade names for your business, as having just one may result in it matching an already existing company. Make sure that they go along with the naming directives established by the Department of Economic Development (DED) and will be approved.

4. Obtain the appropriate licenses and permits: Depending on your chosen business activity, you will need to obtain specific licenses and permits from the respective Dubai authorities. This could include a freelance permit, a professional license, a commercial license, an industrial license, or a general trading license.

5. Choose a location: Find a suitable business location in Dubai. There is a wide range of available options, including a commercial space, an office, a virtual desk, or a warehouse, depending on the needs of your business setup. Many free zones offer different packages that include both premises and licenses suitable for particular company types and activities.

6. Register your business: Register your business with the relevant authorities, such as the DED for mainland businesses or the respective freezone authority for freezone companies. Provide all the proper papers and pay the mandatory registration fees.

7. Obtain visas and work permits: If you plan to hire employees, you will need to apply for their visas and work permits. The specific requirements may differ depending on the employee's nationality and skill level, as well as the particular emirate or freezone, but the most common are Emirates ID, medical checkup papers, and health insurance.

8. Open a corporate bank account: Once your business is registered, open a corporate bank account in Dubai. Provide the required papers, such as your trade license, MOA, and identification documents.

9. Comply with tax obligations: Familiarize yourself with the tax regulations in Dubai and ensure that you and your company meet the required tax obligations. It is important to know that the process and relevant conditions may vary based on the business type and the location (mainland or freezone) you pick. For example, on June 1, 2023, the UAE introduced a corporate tax of 9% for certain company types and entrepreneurs.

On June 1, 2023, the UAE introduced a corporate tax of 9%. Starting from this date, all UAE companies are required to register with the Federal Tax Service (FTA) and file annual returns on the FTA portal, whether they fall under this tax or not. WHO MUST PAY CORPORATE TAX: - Mainland companies doing business in the UAE with profits exceeding AED 375,000 - Companies registered in free zones but operating in the UAE mainland with a profit exceeding AED 375,000 - Freelancers operating in the UAE mainland with a profit exceeding AED 375,000

Do's and Don'ts of Business Etiquette in Dubai

Dubai is a multicultural city with a diverse population. It is important to be aware of the local customs and traditions when doing business in the emirate.

• Dress smartly and modestly.
• Be polite and respectful.
• Make small talk before getting down to business.
• Be punctual for meetings.
• Network in person.
• Be patient and flexible.
• Use your right hand during a handshake.
• Bring a gift for your host, such as dates or a box of chocolates.
• Boast your achievements.
• Expect meetings and negotiations to go as planned.
• Complain about the heat.
• Make eye contact with women who are not your relatives.
• Discuss religion or politics in business settings.
• Be rude or disrespectful to local people.

By following these do's and don'ts, you can manifest your respect for the local culture and your serious intentions to do business in Dubai. Explore the city and learn about the local traditions – this way you will avoid making any faux pas and make a good impression on your business associates.

Overall, the key recommendation is to take your time in preparation for each step of the setup process instead of rushing to get to business right away. Every bit of information you gather may prove rewarding, and every minute you spend doing it may be essential to your success.

In order to ensure a smooth and successful establishment of your business, we advise seeking professional guidance from business consultants specializing in business formation and follow-up in Dubai. Our specialists are ready to provide you with all the necessary information and aid to effectively navigate you through this process.

Is Dubai a good place to start a business?

Yes. Dubai offers numerous advantages for entrepreneurs in terms of both opening and running a business, including convenient logistics, favorable government policies, tax exemptions, and brand recognition opportunities.

How much does it cost to set up a business in the UAE?

The minimal company formation cost amounts to $1,500, excluding visas. You can also choose a freelance setup with the corresponding permit. If you’re planning to start a larger company, you will need to consider other costs such as visas and work permits for your staff.

Is it easy to start a business in the UAE?

Yes. A company can be set up within a few days, and you can even do it online outside the UAE. It may require preliminary preparation, but the setup process itself is not that complex if you follow the necessary steps. The country provides a number of tools to help you out, such as digital paperwork and a vast array of freezones with ready-made company setup packages to choose from.

Can a foreigner start a business in the UAE?

Absolutely. Foreigners are more than welcome in the UAE, as the country has a multi-national population and a number of implemented policies beneficial for foreign actors, from 100% repatriation of capital and profits to visa eligibility for business owners and employees. There are plenty of setup options available in freezones and the UAE mainland, and our team will gladly help you find the one most suited to your needs.

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UAE Business Culture

Published June 24, 2022

By Marvin Hough

Introduction

The UAE has a diverse and multi-cultural society, and 80% of the UAE population are expatriates. As a result, the UAE is regarded as relatively liberal within the region and provides schools, cultural centres and restaurants catering for international cultures. While the population is incredibly diverse, it is important that you understand the UAE business culture.

The UAE is a Muslim country. You should respect and be aware of local traditions and sensitivities and always behave and dress modestly, particularly when visiting religious sites. However, although the national culture revolves around the religion of Islam, other religions are also respected, and churches and temples can be found alongside mosques.

The Islamic dress code is not compulsory. Most UAE Emirati males wear a kandura, an ankle length white shirt and most Emirati women wear an abaya, a black flowing-over garment covering most of the body.

Corporate Social Responsibility

Corporate social responsibility (CSR) is becoming an increasingly big part of business culture in the United Arab Emirates. In February 2018, the government introduced a CSR law, which forced companies to report all CSR activities and offered incentives for CSR initiatives. Similarly, financial privileges and exemptions are awarded to companies that demonstrate outstanding social responsibility. In fact, CSR is now mandatory for most UAE companies.

Many companies adopt different strategies to fulfill their CSR requirements. Some invest in development projects, while others adopt environmentally friendly policies relating to production. Some even encourage volunteering in local communities with paid time off. Although still in its infancy, CSR is set to make its mark on business in the UAE in the coming years.

Corruption in the UAE

The UAE penal code criminalizes bribery, embezzlement, and abuse of function. Because of this, these types of corporate crimes do not happen that often. In fact, Transparency International rated the UAE as the least corrupt country in the Middle East and North Africa in 2018.

However, money laundering can be an issue. In the same report, Transparency International noted that millions of dollars of real estate can be bought in Dubai in exchange for cash, and few questions are ever asked.

Additionally, it is more common to see labor and visa fraud. This can take the form of contract substitutions and improper visa details. To avoid this, you should familiarize yourself with local employment contract laws and visa processes. Should you find any irregularities, you can go to your local UAE embassy or the Ministry of Human Resources and Emiratisation (MHRE).

Hierarchy and Decision-Making

The United Arab Emirates is a very hierarchical society, which is why the local business culture is very stratified. Most companies have a very solid vertical hierarchy. Older, more experienced employees get the top positions in most companies. Moreover, they are the key decision- makers.

On the other end of the spectrum, lower-level employees do not generally have much input in the decision-making process. They tend to remain subordinate and follow whatever dictates come from above. As a result, you will need to win the top players over to do business with them.

Age, money, and family connections all play a role in where someone is positioned within a company. The more of these someone has, the higher up they are. There is also a strong preference for males over females, especially at higher levels.

Arabic is the most spoken language, followed by English, French, Russian, Hindi and more. Almost all official documents, forms, laws, and decrees are in Arabic. Therefore, it helps to have a working knowledge of the language.

English is widely spoken throughout the country. Although it is common for written correspondence to be in English, Arabic is often preferred within some public sector organisations. It is preferable to have one side of your business card printed in Arabic.

Networking in the UAE

Social networks are a big part of the business culture in the United Arab Emirates. Because of this, you could find plenty of business opportunities through people you meet socially. You never know who may be able to connect you with a decision-maker at a big company.

The UAE also hosts plenty of different networking events. If you are new to the country, start attending some of these to grow your business network. Similarly, you could try groups such as the Dubai Chamber of Commerce, the British Business Group, or the Dubai Business Women Council. Expo 2020 in Dubai underscores the UAE’s role as a financial and technology hub and meeting center for the region.

Relationships

People in the UAE prefer to do business in person. Relationships and mutual trust are paramount for any successful business interaction and can only be fully developed through face-to-face meetings. It is important to spend time with Emirati business counterparts and ensure future meetings take place to continue cultivating the relationship. It is also important to have connections with people in the UAE who can facilitate introductions before attempting to do business in the country. Emiratis prefer to do business with those they know, so appropriate introductions are important to establish a successful business relationship.

Religion in the UAE

Over the past few decades, the UAE has established itself as a leading international business hub. Most foreign multinationals settling in the region will either choose Dubai or the capital, Abu Dhabi, for their regional headquarters. A western-based management approach is prevalent across the UAE, which has embraced foreign management techniques in the quest to achieve global status.

This westernisation of business and management practices, however widespread, exists in parallel to the fundamental teachings of Islam. The UAE operates on sharia law, the moral code of Islam, with an estimated 80% of the population belonging to the Muslim faith. This consolidation of western business practices with deeply rooted cultural and religious traditions make up the UAE’s business landscape. The religion of Islam rests on five central pillars of practice. The pillars guide people in their everyday lives – including their business acumen – by helping them develop a righteous existence. As such, in the UAE, culture and religion are very much intertwined.

Fatih Mehmet Gul, chief executive of csrmiddleeast.org, the first website dedicated to corporate responsibility news and opportunities in the region, agrees that the moral teachings of Islam extend well beyond the individual’s private life to encompass business activities.

Gul says: “In personal life or business life, Islam always instructs Muslims to behave responsibly. Customer relationships, employee rights, environmental concerns and responsibility to the community have all been well defined by Islamic rules.” He adds that there is almost “a full match between Islamic rules and corporate responsibility principles”.

Three out of the five pillars of Islam – praying, fasting and the practice of zakat (charitable giving) – focus on strengthening the sense of community, improving collective welfare, and encourage generosity and solidarity.

As the teachings of Islam influence everyday life, including business practices, they de facto impact corporate responsibility practices.

Social Provisions

Business culture in the UAE is largely familial and as such, companies tend to look after their employees. As a result, most businesses provide a range of social provisions.

The law mandates contributions to a pension fund with a percentage of the funds coming from the employee’s salary, the employer, and the government. Similarly, social security is part of the benefits package. Employers and employees share in the funding for these benefits. However, expats do not have to contribute to social security. Companies also must provide health insurance for all employees. Often, these benefits are extended to the employees’ families, too.

Women in Business

With changing times women are getting more involved in business in the UAE. This is also because there are many women who are highly educated and are choosing to follow careers rather than an early married life. According to 2018 statistics, 71% of Emirati graduates were women and many expat women are moving there due to better career opportunities. The government is also supporting women with part-time and flexi-work solutions.

There are a few rules that are strictly followed, like women cannot be employed for any hazardous jobs and cannot be employed between 10 pm to 7 am (with exceptions to technical and health care jobs).

Even after all this, only 5% of leadership roles in the UAE’s private sector are held by women. The government, however, appears more inclusive. Women make up 66% of the public sector workforce. Moreover, 30% of those are in decision-making roles and a further 27% are in the UAE cabinet.

Interested in learning more about working in a multicultural environment? Reach out to us!

About the author.

This guide has been produced by Marvin Hough, a Canadian business executive and university professor with extensive experience in international markets. During his career, he has facilitated Canadian exports and investments to global markets while working for 30 years with Canada’s official export agency, Export Development Canada (EDC). His career included overseas assignments in India, China, and Mexico where he faced and observed business culture issues on a day-to-day basis.

Since completing his EDC career, Mr. Hough has continued to be actively involved in international business through teaching at the University of Ottawa’s Telfer School of Management where he has led MBA consulting trips to markets such as China, Brazil, South Africa, and Vietnam.

Mr. Hough also runs his own firm, Marvin Hough International Research and Analysis Limited (MIRA) ( www.miraservices.ca ) which supports Canadian and international companies, educational institutions, and governments in entering and operating in diverse international markets.

Throughout his career, Mr. Hough has felt that Western firms should place more attention on understanding and adapting to business culture as they conduct business in global markets. He is pleased to collaborate with Global Business Culture to support greater understanding on the business culture file by producing these guides.

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Doing Business in the UAE Market: Challenges, Opportunities, and Entry Strategy

Doing Business in the UAE Market

If you’re looking to do business in the United Arab Emirates, you need to be aware of the many opportunities and challenges that come with doing business in this region. The UAE is a rapidly growing market with a lot of potential for businesses of all sizes. However, there are also a few things you need to keep in mind when doing business in the UAE. In this blog post, we’ll take a look at a few things you need to know about doing business in the UAE.

DFreight is a team of experienced professionals in the UAE ready to help companies enter and expand in this market. We encourage you to take advantage of the opportunities in the region.

Table of Contents

Market Overview

One of the most popular business destinations worldwide is the UAE. There are many prospects for enterprises to start up and expand in the nation. There are many variables that contribute to the UAE market overview being so favorable.

First off, the political climate in the nation is relatively stable, which is good for business.

Second, the nation’s economy is robust and varied. Businesses have a lot of options to take advantage of this.

Last but not least, the nation has top-notch infrastructure, which makes it very convenient for enterprises to run.

These elements combine to make the UAE a prime location for business expansion and growth.

The UAE wants to grow as a center for regional trade, logistics, travel, and technology. World-class trade events are held regularly in the UAE, and attending one or exhibiting there can be a wonderful opportunity to learn more about the country and the wider region. Top trade events include:

• ADIPEC (Energy)
• Arab Health (Healthcare)
• IDEX International Defense Exhibition (Defense)
• Dubai Airshow (Aerospace and Defense)
• Gulf Traffic Exhibition (traffic and transport)

While the UAE presents short-term difficulties, it offers an attractive long-term market. However, given its forward-looking mindset, ambitious ambition, and strong balance sheet made possible by its considerable sovereign wealth, the UAE cannot be disregarded among all the prospective markets in the Middle East and Africa.

Market Challenges

The United Arab Emirates is a growing market with great potential for businesses. However, there are certain challenges that businesses should be aware of when doing business in the UAE. Challenges include:

• Language barrier
• Cultural differences
• Lack of transparency in the business environment
• Problematic commercial agent agreement termination rules
• Lengthy and complicated dispute resolution processes
• Onerous national workforce development requirements
• Competitive market
• Payment delays
• Scams , Frauds, and Unsolicited Offers

– Competitive Market

One of the challenges of doing business in the UAE market is the existence of a competitive market in the UAE. The UAE has a very competitive market. when you are doing business in the UAE, it can be difficult to stand out from the crowd. The UAE is an excellent environment for business despite these challenges. The UAE is a desirable market for businesses due to its expanding economy and advantageous location.

– Payment Delays

Another challenge of doing business in the UAE market is payment delays for foreign companies. Due to excessive red tape in the government of the UAE, payments to foreign companies have been known to be delayed. Having to wait months or even years to get paid for goods or services given can sometimes be an annoying experience for businesses.

– Scams, Frauds, and Unsolicited Offers

The UAE is a market that is frequently targeted by scammers, fraudsters, and businesses that send unsolicited offers. This is due to the UAE’s riches and a big population of people and corporations who are able to make sizable investments.

The investment scam is the scam that occurs most frequently in the UAE. This occurs when people or businesses promise to invest money on behalf of other people or businesses but either don’t keep their word or don’t put the money to good use. People may end up out of money and without the investment they anticipated as a result.

The phishing scam is another typical kind of scam. Here, people are contacted by individuals or businesses by phone or email in an effort to coerce them into disclosing personal or financial information. They can pretend to be a respectable business or person. They can commit fraud or identity theft once they obtain this information.

Market Opportunities

The United Arab Emirates (UAE) is a dynamic and rapidly growing market in the Middle East region. For international businesses doing business in the nation, the UAE provides a friendly business environment and market prospects. With industries including oil and gas , construction, tourism, financial services, and others, the UAE has a varied economy. With its enormous seaport and airport facilities, the nation also serves as a significant transportation hub.

Due to the enormous number of expats living in the UAE, there is always a ready market for goods and services. A middle class with disposable income is also expanding throughout the nation. The UAE government supports foreign investment and has put policies and regulations in place to make it easier for businesses to operate there. A variety of free trade zones are also available in the UAE, offering tax breaks and other benefits to enterprises. Companies in a variety of industries can find chances in the UAE market. In industries including construction, tourism, hospitality, healthcare, and education, there is an increasing need for products and services.

Because of the good business climate and market potential in the UAE, global businesses find it to be an appealing market. A ready market for goods and services, a helpful administration, and a multitude of free trade zones are all provided by the country.

Market Entry Strategy

In order to do business in the UAE market, it is crucial to create a market entry plan that takes into consideration the market’s distinctive features. The United Arab Emirates is a federation of seven emirates, each with its own leader, set of rules, and legislative body. Although each emirate has a great deal of autonomy, the federal government establishes general rules. The UAE has a free trade agreement with several nations, is a member of the World Trade Organization , and has an open market economy. You can start doing business in the UAE market in a number of ways. These market entry topics’ key points are listed below:

– Trade Events

The UAE is a center for regional trade and offers conferences and exhibitions of the finest quality where businesses may network with potential clients from South Asia, Africa, the Middle East, and the UAE. In order to aid international businesses looking to enter and expand in the UAE and regional markets, the Commercial Service offices in the UAE support a wide variety of trade exhibits and promotion activities.

– Distributors and Agents

One way to join the UAE market is through working with a distributor or agent. Choosing the best local distributor or agent can be a crucial first step to success.

– Free Trade Zones

Free Trade Zones in the UAE permit complete foreign ownership, speedy registration, and sophisticated logistical support. They frequently have sector-based organizational structures.

– Competitive Positioning

The UAE is a market where businesses may expect to face strong multinational competition because it is a regional trade hub supporting major international economic activity. To compete with international firms that can have lower price points, successful enterprises frequently rely on technological and qualitative advantages, customer service, and after-sales service.

If you’re looking to do business in the UAE market but aren’t sure how to get started, DFreight can help! We’re a digital freight forwarder in the UAE that offers a streamlined and cost-effective way to ship your products. We’ll take care of all the paperwork and logistics, so you can focus on growing your business. Contact us today to learn more.

What are the key considerations for doing business in the UAE market?

The key considerations for doing business in the UAE market include understanding the local culture and customs, being aware of the business etiquette, and having a good understanding of the UAE regulatory environment. 

What are the common business practices in the UAE?

The common business practices in the UAE include giving and receiving business cards, exchanging gifts, and engaging in small talk before getting down to business.

What is the UAE regulatory environment like?

The UAE regulatory environment is business-friendly and conducive to foreign investment. There are a number of free zones in the UAE, such as the Jebel Ali Free Zone (Jafza) , which offer 100% foreign ownership and a tax-free environment for businesses.

What is the best way to establish a presence in the UAE market?

The best way to establish a presence in the UAE market is to set up a branch or representative office of your company in one of the UAE free zones. This will give you a foothold in the UAE market and help you to tap into the growing economy. 

What are the main challenges of doing business in the UAE market?

The main challenges of doing business in the UAE market include: -The high cost of doing business in the UAE -The tough competition in the UAE market -The lack of transparency in the UAE business environment 

What are the best practices for doing business in the UAE market?

The best practices for doing business in the UAE market include: -Building strong relationships with local partners and stakeholders -Being patient and flexible in your approach -Understanding the local culture and customs

What are the restrictions for shipping cargo from UAE to Egypt?

Shipping cargo from UAE to Egypt is subject to the same regulations as shipping cargo between any two countries. This includes restrictions on the type of cargo that can be shipped, the size and weight of the cargo, and any other applicable laws and regulations.

How much does it cost to ship from Dubai to Ghana?

Shipping from Dubai to Ghana costs can vary depending on the size, weight, and contents of the package.

What are the benefits of using ocean freight services to transport goods to Italy from UAE?

The benefits of using ocean freight to Italy from UAE include cost savings, reliability, speed, and convenience. Using ocean freight services can help save on costs as well as time. Additionally, the services are reliable and efficient, allowing companies to transport goods to their destination quickly and securely.

Air transportation is a convenient and fast way to move cargo and is suitable for small and large companies as well as individuals. You Might Also Like

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The United Arab Emirates, a Middle East Country is known as a global hub for innovations where countries around the world come to invest. Hundreds of people every year move to UAE for Jobs and Career building. The UAE has cities which are called seven small emirates, Dubai, Sharjah, Ras al-Khaimah, Umm al-Quwain, Ajman, Abu Dhabi, and Fujairah. On 2nd of December 1971, these cities were united as a federal state.

The regions of UAE consist of terrain, dessert, oasis, coast, and mountains representing the traditional lifestyle. The resourcefulness that was necessary to survive was fulfilled by the age-old tribal structures. The person who as an individual in this tribe shows selfless hospitality was considered it as a part of pride and honor. Moreover, having a single religion Islam kept society together through its teachings and messages.

The economy of UAE is known as the 23rd largest export economy and 54th most complex economy of the world as per the economic complexity index. In addition, 2017 was the United Arab Emirates imported $175B becoming the 25th largest importer of the world.

Dubai is known as a hub because it has 12 commercial trading ports excluding the oil ports. One of the oldest seaports is Zayed port and that is the general port for 40 years. Among these several seaports, the two ports according to the World shipping council are the world’s top 50 containers ports. Including there are numerous connecting flights that are landed in UAE on a daily basis. These ports have proved as a driving factor for diversification and economic growth.

This is the reason UAE is focusing on improving its transportation sector quickly by taking care of ships, ports, constructing a dry dockyard. On the other hand, it is also important that marine life should be protected for this also certain measure has been taken.  The last few decades have been tremendous years as it has achieved a lot of challenges of this contemporary innovative world of 21st Century. In the Arab world, UAE is the best environment for innovation according to the 2018 Global innovation index.

UAE is constantly focusing on seven main concerns that is really important for any country to consider including education, technology, health, space, water, clean energy, and transportation. UAE has the most appealing fascinating beaches, desserts and gigantic malls with luxurious hotels. There are also many details related to tall building images and information in the  essay writing service .

UAE is the most multi-ethnic society. Majorly immigrants are Asians, from India, Bangladesh, Iran, Pakistan, Sri Lanka, and the Philippines. Dubai is a beautiful City with growing developments and improving economic conditions. Despite this diversity it still maintains its peace and stability, reporting the minor events of ethnic tensions among the expatriates.

There are some amazing facts about Dubai which you will be amazed to know, the city has the highest number of skyscrapers, it has no rivers, there is a city in Abu Dhabi that carbon-free, named, Masdar. The city has no address system; Burj Khalifa is the tallest building in the World, it has the largest man-made island in the world known as Palm Island. Moreover, it has the largest indoor amusement park.

The United Arabs Emirates Essay

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Introduction

Economy of the united arab emirates, works cited.

The United Arab Emirates is a federal country located in the southwest of Asia. It consists of Abu Dhabi, Ajman, Dubai and Fujairah among others. Its capital is Abu Dhabi. The United Arab Emirates is immediately bordered by Oman and Saudi Arabia and shares boarders with countries like Iraq, Iran, and Qatar among others.

This paper seeks to discuss the United Arab Emirates. The paper will look into the political and economic stability of the country in comparison to that of the Middle East to investigate whether or not, the country is a regional power.

The country is reported to have a liberalized economy with positive attributes such as “high per capita income and a sizable annual trade surplus” (Central 1). The country, like others in the Middle East has over time been highly dependent on its oil and hydro carbons to facilitate its economy.

This specialized economic establishment has, however, been changing following the diversification of the country’s economy. The oil industry has however been significant to the country’s economy since oil was discovered in the country. Oil production is for example realized to have transformed the country from its previous state to the current stability with desirable living standards.

The government of the United Arab Emirates has been on the fore front for steering economic developments in the country with massive investments to facilitate growth. Investments such as in expanding the economy for the creation of more job opportunities, infrastructural developments and promotion of investment activities has been a key interest of the country’s government. The move to attract investors into the country has been significant with the government granting provisions for full ownership of business enterprises to foreign investors in some parts of the country (Central 1).

Cases of reduced level of taxation over investment have also been reported in the country for the purpose of attracting investors. The economic stability of the country was for instance proved during the global crisis that was realized in the year 2009 as the country was in its capacity to provide internal financial support to its affected emirates.

Abu Dhabi was for instance aided Dubai through loans. The country has succeeded in its economic diversification that has greatly reduced its level of dependence on oil and gas to about a quarter of the country’s economy. This, with an assumption that the country’s productivity in oil and gas has not reduced, is an indicator that the country has been realizing economic growth in other sectors apart from oil and gas (Central 1).

The United Arab Emirates is one of the regionally identified economic centers in Asia. The developments of economy in a variety of sectors apart from the oil and gas industry has played a role in not just developing the country’s economy but also establishing it among other economies in the region. The country’s economic diversification was characterized by industrialization and improved transportation system that included developed air transport (Encyclopedia 1).

According to the BBC, the United Arab Emirates has since its inception developed to become “one of the middle east’s most important economic centers” (BBC 1). Dubai is for instance reported to have been outstanding in the Middle East in the year 2000 as an economic centre.

Attracting both expertise and investors into the country and the region, Dubai established the United Arab Emirates as an economic power in the region (BBC 1). Dubai is characteristically identified to be an outstanding element in the Middle East.

The levels of developments that have been realized in the city are actually comparable and surprisingly better those developments that have at the same time been achieved in some of the Middle East countries.

One of the factors that make Dubai a regional power is the capacity that it has shown with respect to development activities. Though it had limited resources in terms of oil reserves, Dubai established and overtook states in the Middle East in economic developments. It has therefore exhibited its capacity to become an economic power in the region.

The collective pride over Dubai ultimately lies with its parent federation which in consideration with its other emirs exerts itself as a center of economic power in the region (Denicola 62). The political system in Dubai and the United Arab Emirates, though not actually a democratic one, has been the key to the country’s developments that puts it to lead the region’s economic pride. It is this leadership that has made the country to its current success through attracting investments and human labor that has led to the development (Denicola 105).

The United Arab Emirates is a federation of oil rich regions. Though identified as an isolated region before it discovered its oil reserves, the country has used its resources to diversify and develop its economy to become an outstanding economic center in the region. Its developing trend might establish it as the region’s top economic centre in future.

BBC. United Arab Emirates country profile . BBC, 2010. Web.

Central. Middle East: united Arabs emirates . Fact Book, 2011. Web.

Denicola, Christopher. Dubai’s political and economic development: An oasis in the desert . Library Williams, 2005. Web.

Encyclopedia. United Arabs Emirates/ Economy . UAE, n.d. Web.

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Essay on Dubai

Students are often asked to write an essay on Dubai in their schools and colleges. And if you’re also looking for the same, we have created 100-word, 250-word, and 500-word essays on the topic.

Let’s take a look…

100 Words Essay on Dubai

Introduction to dubai.

Dubai is a city in the United Arab Emirates, known for luxury shopping, modern architecture, and a vibrant nightlife. It’s a global city and a business hub.

Architecture

Dubai has many famous buildings. The most famous is the Burj Khalifa, the tallest building in the world. Other landmarks include the Burj Al Arab and the Palm Islands.

Dubai’s economy is mainly driven by tourism, real estate, and financial services. It’s a rich city with a high standard of living.

Dubai has a diverse and multicultural society. It’s a melting pot of different cultures, with people from all over the world living and working there.

250 Words Essay on Dubai

The emergence of dubai.

Dubai, a city once known for its pearl industry, has emerged as a global city and a significant business hub. Its transformation from a sleepy fishing village to a cosmopolitan metropolis is a testament to its visionary leadership and economic diversification strategies.

Architectural Marvels

Dubai’s skyline, dotted with architectural marvels, reflects its ambitious spirit. The Burj Khalifa, the world’s tallest building, and the Burj Al Arab, a hotel shaped like a sail, are symbols of the city’s rapid development and its quest for uniqueness.

Thriving Economy

Dubai’s economy, initially built on the oil industry, is now predominantly service-driven. The city has successfully diversified into tourism, aviation, real estate, and financial services. Its strategic location and world-class infrastructure make it an attractive destination for international businesses.

Cultural Melting Pot

Dubai’s population is a blend of over 200 nationalities, contributing to its vibrant and multicultural society. This cultural diversity is reflected in the city’s food, fashion, music, and festivals.

Sustainability Initiatives

Despite its rapid urbanization, Dubai is committed to sustainable development. It has launched several initiatives to promote green building, renewable energy, and water conservation, aiming to become one of the world’s most sustainable cities.

500 Words Essay on Dubai

Introduction.

Dubai, a city that sprang from the desert sands, is a testament to human ambition and ingenuity. Known for its architectural marvels, vibrant nightlife, and luxury shopping, it’s a city that has positioned itself as a global hub for tourism, trade, and innovation.

Geography and Climate

Located on the southeast coast of the Persian Gulf, Dubai is one of the seven emirates that form the United Arab Emirates. It is flanked by Abu Dhabi in the south, Sharjah in the northeast, and the Sultanate of Oman in the southeast. The city experiences an arid, desert climate, with extremely hot summers and mild winters.

Historical Perspective

Economic overview.

Dubai’s economy, initially built on the oil industry, has diversified over the years to become less dependent on oil and more focused on tourism, aviation, real estate, and financial services. The city’s free trade policies and strategic location have attracted multinational corporations, making it a thriving business hub.

Dubai is renowned for its futuristic architecture. The cityscape is dominated by skyscrapers, including the Burj Khalifa, the tallest building in the world. Other architectural wonders include the Palm Jumeirah, a man-made archipelago, and the Burj Al Arab, touted as the world’s most luxurious hotel.

Culture and Lifestyle

Dubai’s tourism industry is a vital part of its economy. The city offers a unique blend of modern attractions and rich cultural heritage. Tourists flock to Dubai for its luxury shopping, ultramodern architecture, and vibrant nightlife. The city also hosts numerous international events and conferences, including the Dubai Shopping Festival and the Dubai International Film Festival.

Dubai represents a fascinating case study in rapid urban development, economic diversification, and cultural integration. Its transformation from a small trading port to a global city is nothing short of remarkable. As it continues to innovate and push the boundaries of what is possible, Dubai remains a city that captures the world’s imagination.

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Business Excellence & Employee Engagement in the UAE

Employee engagement has been found to be positively linked to business and organisation success. Employee engagement is a concept used to describe the connection between employees and organisations (Singh et al, 2016). Employee engagement is the force through which employees feel zealous and excited towards their jobs and their organisations. The relationship between employee and employers is considered as transactional, employees get paid for the work they do for the organisations (Roukolainen et al, 2018). Employee engagement takes the transactional relationship to the next level by formulating and implementing strategies to make employees feel passionate about their organisations and have emotional aspect in the transactional relationship. Shuck et al (2017) describes employee engagement as a force through which employees are drawn emotionally towards the organisations for which they work in order to work towards getting positive work outcomes. Employee engagement makes employees go beyond their basic duties and also show creative, innovative and motivating behaviour which becomes the foundation of an efficient working environment. Employee engagement strategies makes the employees less stressed out and depressed even in the stressing times which make them a valuable asset for the company (Anthony-McMann et al, 2017).

Business Excellence is referred to as approaches and strategies which result in excellence in all the business functions and activities as well as performances which determine the overall organisational efficiency and effectiveness (Dubey, 2016). Business excellence is a concept which guides the organisations towards achieving high quality performance in all the areas which affect the final performance of the organisation.

This research aims to study the effect of business excellence on employee engagement in government and semi-government organizations in the UAE. The research aims to conduct empirical research through a survey research to determine whether business excellence strategies and approaches impact on the employee engagement.

Importance of the Research

Employee engagement is significantly important for the public sector because of the inherent demotivating behaviour and workplaces as well as unwillingness of employees to engage in extra activities leading towards improved performance (Singh et al, 2016). The employees in public sector are known for their poor performance, lack of motivation, inability to connect emotionally with the organisation and invest long term in the organisation and its success (Chandani et al, 2016). This makes the concept of employee engagement imperative for public sector since government organisations and departments can improve employee performance and productivity through implementing measures leading to improvement in employee engagement.

Public organisations in UAE are working towards achieving business excellence through adoption of relevant approaches (Lasrado, 2017). Since the employee motivation and performance is highly desirable by public organisations, the study will provide key insights into the effect of business excellence adoption on employee engagement in government and semi-government organisations in UAE. The research will theoretically and practically contribute towards the area and will provide government and semi-government organisations in UAE the information about the link between business excellence and employee engagement. The organisations can benefit from the research for improving their employee engagement and thus overall organisational performance.

Problem Statement

Although UAE Government and semi-government sector provides better compensation and benefits to the employees, the employee turnover rates have been reported to be higher in the public sector in UAE (Jabeen et al, 2018). The employees in the public sector in the country are found to be lacking the motivation to continue with their jobs in the long term which affect their engagement levels (Jabeen et al, 2020). According to Jabeen and Isakovic (2018), public sector in UAE is characterised by specific culture which leads to dissatisfaction amongst employees and leads to higher turnover rates. The government sector in the country is found to be actively implementing business excellence programs which have proven to increase employee engagement from the previous researches and thus reducing employee turnover. The effect of business excellence programs are thus needed to be evaluated on the employee engagement in the public sector in the UAE.

Research aims and objectives

The aim of the research is:

“ To study the effect of business excellence on employee engagement in the government and semi-government sector in the UAE.”

The research objectives of the present research are:

• To study the business excellence practices of government and semi-government sector in UAE’
• To explore the links between business excellence and employee engagement in the government and semi-government sector in the UAE;
• To identify if employee engagement can be increased by implementing business excellence programs in the government and semi-government sector in the UAE.

Purpose of the Research

The government and semi-government sector in the UAE are found to be implementing business excellence programs actively. This research studies the impact of business excellence on employee engagement to determine whether business excellence can increase employee engagement and make them more loyal to the organisations thus decreasing the employee turnover.

Research Questions

The research questions the present research aims to answer are:

• What are the major business excellence practices adopted by the government and semi-government sector in the UAE;
• Does the business excellence positively affect the employee engagement in the government and semi-government sector in the UAE;
• What impact (positive or negative) does business excellence have on the employee engagement in the government and semi-government sector in the UAE.

Research Hypotheses

The research aim to test the following hypotheses:

• Employee engagement has a statistically significant influence on the adoption of business excellence practices.
• Demographics (age, education, job role) have a statistically significant influence on employee engagement.

Literature Review

This section provides the review of the previous literature on the area of business excellence and employee engagement with the aim of forming a theoretical underpinning for the present research. The literature review discusses the concept of business excellence and business excellence models and approach before exploring business excellence practices in government and semi-government sector in general, effect of business excellence on employee engagement and business excellence practices in the UAE.

The concept of Business Excellence

The growing competition in the globalised world has led to significant increase in the popularity of business excellence all over the world (Sampaio, et al, 2012). Business excellence, also referred to as organisational excellence and total quality management (TQM), is a set of well-coordinated and well-aligned activities in the organisations aimed at improving the financial and non-financial performance and outcomes of the organisation (Mallur et al, 2012). Business excellence and quality management has been used interchangeably by previous researchers and the definitions of both were found to convey the aspects of achieving total improvement in all areas of the business to achieve higher level of stakeholders’ expectations (Dubey, 2016).

The concept of business excellence has existed since more than 25 years and has been growing to gain attention across the world because of increased competition and globalisation (Carvalho et al, 2018). Business excellence and quality management are found to be linked since excellence is rooted in the management of quality at all levels of the organisation thus leading to achieve total quality. Business excellence helps and guides organisations to be proactive in today’s fast changing environment through adopting innovative and technology based approached with the aim of becoming superior from the competitors and provide higher satisfaction to customers and other stakeholders (Israr, 2018).

Business excellence programs are straightforward approaches and techniques planned and implemented organisation-wide to ensure efficiency and effectiveness at every level ensuring that all functions, departments, processes and procedures are well-aligned to achieve excellence (Samawi et al, 2018). According to Toma and Naruo (2017), the business excellence concept is an umbrella term for all the activities implemented with the aim of improving products, services, production, processes and procedures so that the higher level of customer satisfaction is achieved and the organisations in turn become more profitable. The business excellence and quality management practices fulfill the explicit and implicit expectations of all the stakeholders and thus increasing total value of the business (Dawabsheh et al, 2019). Various business excellence and TQM models have been proposed in the researches guiding the organisations to implement excellence strategies (Thurer et al, 2018). More than 100 excellence models have been documented during the past years providing strong theoretical foundations to organisations interested in adopting business excellence (Samawi et al, 2018).

Business Excellence Models and Approaches

Various business excellence models and approaches have been proposed over the past years which determine the key factors in implementing the business excellence models. Some key business excellent models and tools are EFQM (European Foundation for Quality Management), Japan Quality Model, Australian Business Excellence Framework, Lean Management, Quality Management Systems, Lean Management, Total Quality Management and Malcolm Baldridge. The models, tools and approaches identify the factors which need to be addressed to achieve excellence by organisations and help them achieve higher performance. The key factors identified by the model to achieve business excellence can be summed into, leadership, process management, customer focus, valuing employees, innovation and creativity, corporate social responsibility, ethics and transparency, achieving financial success, knowledge management and delivering value to all the stakeholders (Toma and Marinescu, 2018).

Although each model takes different approach towards achieving excellence, the aims of the models remain considerably similar. The business excellence models guide the organisations to achieve better financial and non-financial performance, help in creating a visionary leadership, identify ways for innovation and creativity, improve customer service, increase productivity and improve employee engagement (Toma and Marinescu, 2018).

Business Excellence practices in the Semi-government and Government sector

The semi-government and government sector have been noted to implement business excellence approaches all over the world (Pimentel and Major, 2016). The semi-government and government sectors have been known for their inefficient traditional practices affecting their performance and the dissatisfaction of the stakeholders. The business excellence and quality management approaches have provided a potential solution to the public sector on improving their performance as well as reducing the costs (Altamony, 2017). The business excellence and quality management particularly gained attention from researchers and practitioners over its potential to completely transform the public organisations through continuous improvement, knowledge sharing, cost reduction, process re-engineering and thus increasing reliability and creditability of the public services (Rodgers et al, 2019).

The difference between private sector and public sector adoption of excellence approaches the absence of profit factors in the government sector as well as the lack of personal interest which cause the government organisations resist the adoption and implementation of excellence programs (Saraiva, 2019). The sense of urgency and the leadership commitment provide the necessary impetus to the public organisations to adopt the excellence approaches and once adopted, the outcomes provide the basis for the continuation of the excellence programs in the long run (Paraschi et al, 2019). The driving forces thus found for the public sector to implement the excellence approaches are different as compared to the private sector making the excellence adoption a distinctive practice in the government sector.

The government and semi-government organisations find themselves under pressure from increasing expectations of the public and customers to improve their processes and services. The need to respond to fast changing internal (like employee competencies, technological capabilities) and external environment (market pressure, increased competition) cause the government and semi-government organisations to adopt business excellence practices to become agile and high performing organisations (Metaxas et al, 2019). Public organisations all over the world are found to be implementing business excellence practices and achieve performance improvement through synergistic relationships, process re-engineering, waste reduction, self-evaluation, knowledge sharing, change management, efficient management of resources and other similar approaches which result in achieving total excellence in all the areas (Adamek, 2018). The approaches and strategies are not generally applicable to organisations and there is a need to customise the approaches on the basis of the size, context and environment of the organisation. Since the inherent structures and cultures of public organisations are found to be hierarchical and bureaucratic in nature, the implementation of excellence programs in government organisations require major transformations in terms of structure and culture since aspects like open communication, employee involvement, delegation, team work, increased collaboration and better alignment between departments and functions are found to be important pre-requisites of excellence approaches (Samawi et al, 2018).

Impact of Business Excellence on Employee Engagement

As discussed above, the business excellence models and approaches take a holistic view of the organisational performance and aims to address all the factors which impact the organisational success. Since employees are considered to be a key asset for the organisation, implementing business excellence programs involve valuing employees such that to improve their productivity and delivering values to all the stakeholders (Toma and Marinescu, 2018). Business excellence programs have found to improve engagement and reduce turnover rates by creating organisation-wide improvements.

Employee engagement refers to higher degree of passion in employees which make them connect to their organisations better and encourage them use discretionary efforts to perform their duties (Mone et al, 2018). Eldor and Vigoda-Gadot (2017) argue that the topic of employee engagement has received increased attention from researchers and practitioners because of its impact of organisational performance and productivity. Since employees are considered an important asset and high turnover rates are associated with increased direct and indirect costs, it has been found imperative for organisations to engage their employees to reduce turnover as well as make them a valuable asset for the organisation.

Osborne and Hammoud (2017) argue that business excellence and employee engagement have a two way relationship, business excellence improves employee engagement whereas better engaged employees are found to be dedicated to higher quality standards. When organisations implement business excellence programs, there is an organisation-wide sense of achieving excellence and relevant tools and approaches are being implemented including training and development, streamlining the processes, delivering value, top management support and commitment all towards achieving higher financial and non-financial performance. The quality culture makes the employees enthusiastic leading to a positive change in their behaviour. This leads to higher employee engagement (Lasrado and Pereira, 2018). Engaged employees on the other hand go beyond their routine duties to excel in their performance and help organisations achieve excellence through better involvement, productivity and innovation (Domun and Talwar, 2016). A highly engaged workforce do not need constant supervision and is automatically putting efforts in the quest of quality and thus meeting organisational aims of achieving business excellence.

According to Graban (2016), business excellence practices like lean management increase the quality, customer satisfaction as well as employee engagement. Employees are found to connect on a deeper level with the organisations which implement lean practices since employees consider these practices to improve the overall performance. The factors needed to address to achieve business excellence like leader commitment, customer focus, creativity, ethics and transparency and knowledge management cause employees to get involved in the quest of quality because of the overall improvement in the culture. The business excellence models, approaches and tools are found to focus on creating an engaging workforce to achieve the excellence at all levels (Toma and Marinescu, 2018).

Business Excellence practices in the UAE

The UAE has been very advanced in business excellence practices. The country introduced the business excellence awards for the public and private sector more than two decades ago which confirm that the attention given to quality and excellence is not something new in the country (Lasrado and Uzbeck, 2016). The government has been very supportive in the implementation of quality and business excellence programs and encourages private as well as public sector organisations to adopt excellence and provide best products and services to customers. The excellence programs are implemented in both private and public sector organisations in UAE because of a number of drivers. The fast changing environment, tough competition, stricter laws and increased globalisation have caused the organisations in UAE to implement business excellence programs and approaches to ensure that they are able to improve their performance and productivity.

Various excellence awards are being implemented in UAE at federal level and local level. The awards provide the quality frameworks to be implemented by private and public organisations in UAE and guide them in the adoption of excellence models. The government ensures that the organisations are engaged in excellent customer service and products highest quality products to maintain the overall quality standards high as per the government’s vision.

A government excellence model is implemented by the public organisations in UAE which us evaluated through Mohammed bin Rashid Government Excellence Award (Salah and Salah, 2019). The public organisations are provided with quality framework consisting of three main pillars, vision achievement, innovation and enablers to guide the public organisations in the implementation of excellence. According to AlNuaimi (2019), government organisations in UAE are driven by government policies to ensure the high standards of government initiatives and services with the aim of achieving customer happiness and satisfaction. The federal government organisations implement customer happiness initiative which seeks to achieve highest levels of customer satisfaction through implementing quality management and business excellence practices. Participating in excellence award programs enable the organisations to deploy the award criteria which are based on a comprehensive model to guide the organisations to meet excellence standards. The excellence programs encourage the organisations to implement practices which achieve higher levels of customer satisfaction and thus improving the quality of products and services. The private and public organisations in UAE are guided by the award giving bodies as well as other consultants on the implementation of excellence programs which is the reason of high number of success stories in UAE with regards to business excellence implementation.

Conceptual Framework

The employee engagement results from various components (Eldor and Vigoda-Gadot, 2017). Since business excellence is a holistic approach aiming for total quality, all the components of employee engagement get affected by the implementation of business excellence programs. The employee engagement components can be grouped into four main categories which get influenced from the business excellence as discussed below:

• Job: A job being challenging and favourable workplace conditions affect the employee engagement positively (Dash and Mohanty, 2019). The business excellence programs ensure that the job tasks become challenging and the workplace conditions are improved to increase motivation, reduce safety risks and create a productive environment.
• Team: Team behaviour affects the employee engagement since it is the immediate group with which the employee works (Gopinath and Saleem, 2019). Business excellence aims to create effective and high performing teams with positive attitudes which influence employee engagement.
• Supervisor: Business excellence creates engaging environment and supervisor behaviour gets directed towards the quest of quality and the employees get facilitated (Meral et al, 2018).
• Organisation: The recognition offered to employees for their work, organisation vision, performance and corporate social responsibility are driven by the business excellence programs which in turn improves employee engagement (Jaeger, 2018).

It is also proposed that demographic factors like age, education and job role affects the employee engagement.

The conceptual framework for the research is developed as follows:

Research Methodology

The research methodology presents the philosophies, approaches, strategies and methods used to gather data and its analysis for a research (Kumar, 2019). Formulating a research methodology is a process through which a research is planned in order to achieve the research objectives. Since a research is done through data, the research methodology essentially explores the options of data collection and analysis and how the process will be conducted to get answers to the research questions.

The first step is identifying the research philosophy. Research philosophy refers to theories and approaches adopted to conduct the research as per the appropriateness (Dougherty et al, 2019). The key philosophies include positivism, interpretivism, realism and pragmatism (Saunders et al, 2015). This research adopts the positivism philosophy which refers to establishing a particular body of knowledge after a thorough analysis and exploration of the relationships between different facts which are already existed in the field (Dudovskiy, 2016). Thus no new knowledge is developed in this approach and the relationship between the existing factors is studied under the positivist philosophy. Since the present research aims to study the effect of business excellence on employee engagement, this approach is considered appropriate.

The next step is identifying the research approach which can be either inductive or deductive. The research approach describes how the research will relate to the theory. If an existing theory is being tested, it is referred to as deductive approach whereas if the data is used to formulate a theory, it is called an inductive approach (Saunders et al, 2015). Since the literature review conducted for the present research has identified a strong effect of business excellence on employee engagement and this effect is being tested on government and semi-government organisations in UAE, the research approach suitable for the present research is deductive approach.

The research method is needed to be selected for the research to identify the data collection and data analysis methods. The research method can either be quantitative or qualitative or a combination of both. Quantitative method is considered suitable for the present research which involves numerical data and its analysis through statistical methods (de Oliveira and Rabechini, 2019). The present research aims to collect data which is numerical in nature and the statistical analysis is done thus making it a scientific method for exploring the effects of business excellence on the employee engagement in government and semi-government organisations in UAE.

The research strategy selected for the present research is survey which is conducted through a data collection instrument i.e. Questionnaire. A Questionnaire is designed consisting of close ended questions to explore the opinions and perceptions of the respondents which are then analysed through the statistical means to determine the relationship between business excellence and employee engagement in government and semi-government organisations in UAE. The questions are multiple choice or Likert scale questions providing a scale to the respondents to provide their answers.

Purposive sample is done for the present research since own judgment is relied upon for choosing the sample of the survey (Etikan et al, 2016). Since the research aims to study the effects of business excellence on employee engagement on semi government and government organisations in UAE, one government and one semi government organisation is selected in UAE and 10 personnel are selected in each organisation in the senior management roles, team leaders, and line managers. This makes the total number of respondents to be 20. The Questionnaire is emailed to the respondents with prior consent and respondents are requested to reply back the filled surveys by return email.

The data collected through the survey is processed and analysed through SPSS which is a statistical analysis tool. The relationship between different variables is analysed and determined through the statistical analysis and the research hypotheses are tested. The data collected through the survey is analysed and discussed to get the answers of the research questions formulated for this research.

The present research considers the ethical aspects of the research by ensuring the consent of the respondents and informing them about the purpose of the research as well as ensuring them about the non-disclosure of their identities and their responses. Moreover, the respondents are informed that the survey results are only used for the academic purposes.

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Survey Questionnaire

Dear Respondent,

I would like to take this opportunity to thank you for your participation in this research.

This Questionnaire attempts to ask the respondents about the impact of business excellence on employee engagement. The research is done for academic purposes, and the findings will not be disclosed to any third party.

If you wish to withdraw from the research, you can quit the survey at any time.

Section 1. Demographics (Please tick one for each question)

Section 2. Assessment of the Organisation’s Business Excellence Factors

This section is dedicated to the factors that determine a company’s business excellence. It uses the Baldrige model, which consists of seven different elements: leadership, strategic planning, customer and market focus, knowledge management, workforce focus, process management, and business results. For each factor, a set of statements is provided on a 5-point Likert scale. Please read each sentence and select one option for each.

• SD = Strongly Disagree
• D = Disagree
• N = Neutral
• SA = Strongly Agree

Section 3. Assessment of Business Excellence Factors influencing Employee Engagement

In this section, the factors influencing employee engagement in the workplace are evaluated.

Job-Related Factors

Team Related Factors

Supervisor Related Factors

Organisation related factors.

Impact of Employee Engagement factors on Organisational Performance

In this section, the impact of factors of employee engagement on organisational performance is evaluated. For each element, a set of statements is provided on a 5 point Likert scale. Please read each sentence and select one option for each.

Section 5 – Feedback

Do you think that the business excellence programs implemented in your organisation (if there are any) positively affect employee engagement?

Please provide feedback about how employee engagement is affected by business excellence programs. ________________________________________________________________________________________________________________________________________________________________________________________________

Thank you for your time

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BusinessEssay. (2022, December 16). Business Excellence & Employee Engagement in the UAE. https://business-essay.com/business-excellence-and-amp-employee-engagement-in-the-uae/

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Bibliography

BusinessEssay . "Business Excellence & Employee Engagement in the UAE." December 16, 2022. https://business-essay.com/business-excellence-and-amp-employee-engagement-in-the-uae/.

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