The purpose of this thesis is to illustrate important considerations, as well as outlining the decisions that need to be made when considering starting to do business in the United Arab Emirates (U.A.E). Furthermore it offers an overview of the prevalent political, legal, social and economical environments that are an important basis for making the decision to expand to that region. After describing country-specific variables of the U.A.E., the business environment including business culture, industry sectors, legal and fiscal conditions, and various possible business forms will be analysed. The insights gained will be used to suggest business opportunities and to develop concrete steps on how to start business relations and set up a business in the U.A.E.
Table of Contents
1 Introduction
1.1 Subject matter and objectives
1.2 Methodology and structure
2 The United Arab Emirates
2.1 Geography
2.2 History
2.3 The seven emirates
2.3.1 Abu Dhabi
2.3.2 Dubai
2.3.3 Sharjah
2.3.4 Ajman
2.3.5 Umm Al Quwain
2.3.6 Fujairah
2.3.7 Ras Al Khaimah
2.4 Government
2.4.1 Political system
2.4.2 Legal system
2.4.3 Foreign policy
2.4.4 Fiscal and monetary policy
2.5 Infrastructure
2.6 Demographics
2.7 Culture
2.8 Labour market and education
2.9 Economic facts
3 Business Environment
3.1 Business culture
3.2 Investment climate
3.3 Major industry sectors
3.3.1 Agriculture, fishery and livestock
3.3.2 Banking and finance
3.3.3 Construction and real estate
3.3.4 Energy
3.3.5 International trade
3.3.6 Manufacturing industry
3.3.7 Tourism
3.4 Legal aspects
3.4.1 Labour law
3.4.2 Social security law
3.4.3 Civil court law
3.4.4 Property law
3.4.5 Protection of industrial and intellectual property
3.4.6 Federal commercial law
3.4.7 Commercial agencies law
3.5 Customs and taxes
3.6 Business forms
3.6.1 Direct export
3.6.2 Commercial agent
3.6.3 Representative office
3.6.4 Branch office
3.6.5 Limited liability company
3.6.6 Joint stock company
3.6.7 Joint venture
3.6.8 Professional firm and professional company
3.6.9 Offshore companies
3.6.10 Licences
3.7 Free trade zones
3.7.1 Free trade zones at a glance
3.7.2 Free zone business forms
3.7.3 Free zones in Dubai
3.7.4 Free zones in other Emirates
4 Getting started
4.1 Business opportunities
4.1.1 Construction industry
4.1.2 Environmental technology
4.1.3 Health sector
4.1.4 Timber industry
4.2 Market information
4.3 Establishing business relations
4.3.1 Trade fairs and conventions
4.3.2 Business councils and associations
4.3.3 Chambers
4.3.4 Consultancies
4.3.5 Networking
4.3.6 Tenders
4.4 Business partner selection
4.5 Business location
4.6 Registration process
5 Conclusion and Outlook
Objectives and Thematic Focus
The primary objective of this thesis is to provide a comprehensive guide for foreign companies intending to expand into the United Arab Emirates. It seeks to inform decision-making by analyzing the political, legal, social, and economic environment, and by detailing concrete steps for establishing business relations and formalizing an operational presence in the region.
- Analysis of the UAE's political, legal, and economic landscape.
- Evaluation of key industry sectors and the broader investment climate.
- Examination of various business forms and the role of free trade zones.
- Guidance on market entry strategies, including networking, trade fairs, and partner selection.
- Practical overview of the business environment, including cultural etiquette and regulatory requirements.
Excerpt from the Book
3.1 Business culture
Business behaviour in the U.A.E. is mainly derived from their culture. Western business people need to be aware of the different style of meetings, negotiations, relationships, communication, et cetera. The following chapter gives information on how to properly conduct business in the Gulf States. However, it should be noted that styles might vary between the states, between Saudi Arabia and Oman, and even between Dubai and Abu Dhabi. There are always exceptions, and stereotyping in cross cultural matters can be dangerous.
It is important to understand the concept and importance of personal relationships when deciding to do business within the Arabian community. In Arabian culture, individuals strongly consider a culturally accepted hierarchy in order to determine what kind of people they prefer to do business with. First they consider members of their own family that they know they can rely on and have very strong ties to. Their second choice is friends who are usually fellow Muslims with a similar culture and behaviour and with whom they can expect mutual trust. Only after those two sources have been exhausted will they consider doing business with a foreigner. Foreign business people have to be very patient and invest a lot of personal time and perseverance to establish and maintain good personal relationships with Arabic business people. Only after a good personal relationship is established will an Arab be ready to start doing business with that person.
Summary of Chapters
1 Introduction: This chapter highlights the growing economic importance of the Middle East, specifically the UAE, and defines the objective of providing a strategic business guide for potential foreign investors.
2 The United Arab Emirates: This section provides a detailed profile of the nation, covering its geography, history, political and legal systems, infrastructure, demographics, culture, labor market, and fundamental economic data.
3 Business Environment: This chapter examines the practicalities of operating in the UAE, including business culture, investment climate, major industry sectors, legal aspects, tax and customs regulations, and available business forms and free trade zones.
4 Getting started: This part offers practical guidance on market entry, covering business opportunities in key sectors, information gathering, establishing relations through trade fairs, partner selection, and the formal registration process.
5 Conclusion and Outlook: The final chapter summarizes the findings and discusses the future potential and challenges for the UAE economy in the context of increasing global competition and internal growth requirements.
Keywords
United Arab Emirates, UAE, Doing Business, Middle East, Market Entry, Investment Climate, Free Trade Zones, Business Culture, Economic Diversification, Foreign Direct Investment, Legal Framework, Construction Sector, Trade Fairs, Business Partners, Infrastructure.
Frequently Asked Questions
What is the primary focus of this work?
The work serves as a comprehensive business guide for foreign companies intending to enter the United Arab Emirates market by explaining the local political, legal, and economic environment.
What are the core themes addressed in this thesis?
The central themes include an overview of the UAE's development, its business environment, legal framework, industry-specific opportunities, and practical advice on establishing and maintaining successful business operations.
What is the primary research goal?
The objective is to provide a knowledge base that enables foreign companies to make informed investment decisions and to develop concrete operational plans for entering the UAE market.
What scientific methods were employed?
The work is based on up-to-date research gathered from books, magazines, websites, and personal interviews, supplemented by the author’s professional experience in the Dubai business development sector.
What topics are covered in the main body of the work?
The main body details the nation's political and legal landscape, its diversified industry sectors, investment incentives, tax conditions, various legal business forms, and strategies for successful networking and partner selection.
Which keywords characterize the work?
Key terms include United Arab Emirates, market entry, business environment, free trade zones, and economic diversification.
How is the legal landscape for foreign investors described?
The work emphasizes the existence of specialized free trade zones that allow for 100 percent foreign ownership, while noting the requirements of national sponsorship for mainland business operations and the importance of adhering to local legal and cultural norms.
What role does personal relationships play in UAE business culture?
The text highlights that personal relationships are foundational to business in the UAE, requiring foreign investors to be patient and invest significant time to establish trust before meaningful business transactions occur.
How is the economic transformation of the UAE explained?
The thesis describes the government's strategic focus on diversifying the economy away from a sole reliance on oil, emphasizing growth in sectors such as construction, tourism, and manufacturing to secure long-term stability.
- Quote paper
- Dipl.Betriebswirt; MBA Sascha Noack (Author), 2007, Doing business in Dubai and the United Arab Emirates, Munich, GRIN Verlag, https://www.grin.com/document/78336
