Uae & Cultural Differences

Topics: United Arab Emirates, Abu Dhabi, Dubai Pages: 18 (5697 words) Published: November 22, 2010
I. - List of Abbreviations

GDPGross Domestic Product
PDIPower Distance Index
UAEUnited Arab Emirates
UAIUncertainty Avoidance Index
UKUnited Kingdom

Table Of Contents

I. - List of Abreviations

II. - Introduction2

III. - The United Arab Emirates2

III.1 - History2

III.2 - Economy4

IV. - Important values for a successful business in the UAE5

V. - Culture7

V.1 - Cultural differences at the national level7

V.2 - Cultural differences at the organizational level10

VI. - Kühne + Nagel12

VII. - List of References14

II. - Introduction

In the current business environment, in times of globalization, financial crisis and terror, there is a growing consciousness about difficulties that can occur when different cultures collide. These difficulties especially need to be regarded when wanting to expand a business internationally or wanting to enter a foreign market. In this paper the United Arab Emirates is analyzed with focus on critical information for operating a business there. This paper will take into account the history, the cultural aspects as well as differences, the business development and opportunities based on an example of the German logistics company Kühne & Nagel, which is doing business in the UAE since the 70`s.

III. - The United Arab Emirates

III.1 - History

The Palm islands, The World, the Burj al Arab and the Burj Dubai and other superlatives come to our mind when thinking about the United Arab Emirates, but they only represent the timeframe since the 1990’s. The UAE was founded in 1971. To really understand the UAE and its culture it is important to take a look at the history and the developments before the foundation and the oil. About 1500 years ago the people in the Arabic region were living in tribes, their lives were dictated by the harsh natural conditions and pearl fishing was the prevalent dedication[1]. The community was very important within the tribes and a deep social family structure was established.[2] At that time the Islamic Belief was introduced to the gulf region and is therefore deeply rooted in the history and its culture.[3] As trade and piracy rose in the 18th and 19th century the area became known as the Pirate Coast until the British navy launched several attacks on the pirate strongholds to secure the trade.[4] This lead to the signing of 3 truce treaties in total, including the final treaty in 1892, which made them become the “Trucial States” and preventing them from entering into relationships with any other country but the United Kingdom (UK) as well as disposing territory to anyone besides the UK, in return for coastal protection and support in case attack of land[5]. The first discovery of oil in 1958[6] in Abu Dhabi, which led to many more, was very fortunate as the region, which relied heavily on pearl fishing, saw the pearl market collapse between the First and Second World War.[7] The discovery of oil and the hence evolving wealth had a strong influence on the further development of the area. When the British first announced their intention of withdrawing from the Arabian Gulf by the end of 1971, Sheikh Zayed bin Sultan Al Nahyan of Abu Dhabi immediately wanted to establish closer relationships between the Arabic states.[8] He and Sheikh Rashid of Dubai, became the initiators towards an union of Arabic Emirates, including the Trucial States, Bahrain and Qatar.[9] Since no agreement could be reached between the nine and Qatar and Bahrain became independent, the rulers of Abu Dhabi and Dubai, Sheikh Zayed and Sheikh Rashid, decided to form a union between their emirates and later on present its constitution to the other 5 emirates with the offer to join.[10] One day after the Britsh-Trucial Sheikdoms Treaty expired, the United Arab Emirates were founded on December 2nd, 1971. Four emirates joined immediately and Ra’s al-Kaihmah followed on Febuary 10th, 1972.[11] Since its...
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