United Arab Emirates

A different world
Background
Background
• A Muslim country
o In the Gulf characterized by moderation, growth and
economic development

• The Trucial States of the Persian Gulf Coast

o Granted the UK control of their defence and foreign affairs in
the 19th century treaties    
                                  
•  Birth of UAE
o In 1971, Abu Dhabi, Dubai, Ajman, Fujairah, Sharjah and
Umm al Qaiwain merged to form UAE
o Joined by Ras al Khaimah in 1972
Background
• Capital - Abu Dhabi
o Largest and richest of the federal units. 
o Biggest producer of oil and the major contributor to the
federal budget.

• GDP
o Per capita GDP is on par with those of leading West
European nations: $42,000 (2009)

• Vitality in the region

o Its generosity with oil revenues and its moderate foreign
policy stance have allowed the UAE to play a vital role in the
affairs of the region
Background
• Political conditions
o Each emirate still retains substantial autonomy

o The rulers hold power on the basis of their dynastic position

and their legitimacy in a system of tribal consensus. 
 
o In December 2006, the U.A.E. held its first-ever limited
elections to select half the members of the Federal National
Council. 

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

emirate.
Background
• Government
o Judicial: Islamic and secular courts.
o Administrative subdivisions: Seven largely self-governing
emirates.
o Political parties: None.  
o Type: Federation with specified powers reserved for the
U.A.E. Federal government and other powers reserved to
member emirates.  
• Financial status 
o For decades, oil and global finance drove the economy
o In 2008-09, falling oil prices, collapsing real estate prices,
and the international banking crisis hit the UAE especially
hard                                           
Background
• Defense
o Armed Forces consist of 50,000 troops

o Headquartered in Abu Dhabi 

o Primarily responsible for the defense of the seven emirates.

o Equipped with some of the most modern weapon systems

including one of the world’s most sophisticated missile
defense systems. 

o Special Operations Command (SOC) is a small but effective

force centered on the counter-terrorism mission
History

 
History
• The U.A.E. was formed from the group of tribally organized
groups.
 
• For centuries, the sheikhdoms were embroiled in dynastic
disputes. 
 
• A 1974 agreement between Abu Dhabi and Saudi Arabia
almost settled their border dispute.
 
• The border with Oman also remains officially unsettled,
although the two governments agreed to delineate the border
in May 1999.
 
 
 
History
• Abu Dhabi’s ruler, Sheikh Zayed  was elected by the Supreme
Council as President , Sheikh Rashid bin Said al Maktoum,
became Prime Minister.
 
• The U.A.E. sent forces to help liberate Kuwait during the 1990-
91 Gulf War.
 
• U.A.E. troops have also participated in peacekeeping missions
to Lebanon, Somalia, Bosnia, Albania, Kosovo, and
Afghanistan.
 
• In 2004, the U.A.E.'s first and only president until that time,
Sheikh Zayed  died.
History

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

Abu Dhabi.
 
• January 2006, Sheikh Maktoum , U.A.E. Vice President and
Prime Minister, passed away and replaced by his brother,
Sheikh Mohammed .

 
 
Geography
Geography
• Location
o Middle East, bordering the Gulf of Oman and the Persian
Gulf, between Oman and Saudi Arabia (24 00 N, 54 00 E)
o Terrain: Largely desert with some agricultural areas.

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

• Natural resources
o Petroleum, natural gas
Geography
• Major Cities
o Capital - Abu Dhabi; Dubai

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

• Natural hazards
o Frequent sand and dust storms

• Environmental issues
o Lack of natural freshwater resources compensated by
desalination plants; desertification; beach pollution from oil
spills
Culture
• Freedom of Religion

• 76% Population - Muslim

• 9% - Christian
• 15% - Others 

• Government – very careful about preserving UAE Culture

&Tradition

• Gradually growing Cosmopolitan atmosphere

Culture
• A variety of Asian-influenced schools

• Cultural centers

• Themed restaurants

• Etiquette: an important aspect of UAE Culture and Tradition. 

• The visitors expected to show manners and etiquette.
• Local residents maintain a strict guideline on manners,
behavior and dress code
Education
• Four-tier Education system covering 14 years of education.

• Education at primary and secondary level is universal and

compulsory up to ninth grade

• Kindergarten
o Age level 4 to 5 Years

• Primary
o Length of programme - 6 Years
o Age level 6 to 12 Years

• Preparatory
o Length of programme  - 3 Years
o Age level 12 to 15 Years
Education
• Secondary
o Length of programme - 3 Years
o Age level  5 to 18 Years

o Certificate/diploma awarded: Secondary School Leaving

Certificate

• Technical Secondary School

o Length of programme - 6 Years
o Age level 12 to 18 Years

o Certificate/diploma awarded: Technical Secondary Diploma

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

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

• Higher Colleges of Technology

o More technically oriented education in 12 well-equipped
colleges
Education
• Zayed University
o Established in 1998
o Innovative
o Smart Square, located in Dubai Internet City -Cooperative
venture between ZU and IBM, inaugurated in 2003

• Private Institutions
o American Universities of Sharjah and Dubai
o Sharjah University
o Ajman University of Science and Technology
o Abu Dhabi University
o Al Hosn University
What’s HOT ?
Dubai and Abu Dhabi tourism
Sports and leisure activities
• Sports
o Polo Powerboat Races
o Rock Climbing Rugby
o Sailing Shooting
o Snow Skiing Tennis
o Camel Racing Canoeing
o Car Rallying Cricket
o Football Golf
o Horse Riding Ice-Skating
Sports and leisure activities
• Activities 
o Bird-Watching  Camel Riding
o Caving Desert and Mountain
Safaris
o Dhow Trips Diving and Snorkeling
o Dune Buggies Exploring The Wadis
o Fossil Hunting Flying 
o Go-Karting  Horse Racing
o Island- Hoping Mini Golf

o Sand Skiing Skydiving

o Water Parks
Communication norms
 India and UAE both have frequent business
negotiations and communications.

 Various methods based on :

- Time orientation : Monochronic and Polychronic
- Space Orientation
- Non verbal orientation
- Power Distance : High PD and Low PD
- Uncertainty Avoidance
- Masculinity and Femininity
- Cross cultural negotiations
Communication norms
VALUES OF INDEXES AS PER INDIA UAE WORLD
HOFSTEDE'S DIMENSIONS AVERAGE

PDI 77 80 56.50
UAI 40 68 65
LTO 61 48
MAS 56 52 51
IDV 38 64
PDI: POWER DISTANCE INDEX
UAI:UNCERTAINTY AVOIDANCE INDEX

MAS: MASCULINITY INDEX

IDV: INDEX FOR INDIVIDUALISM

LTO: LONG TERM ORIENTATION INDEX

Communication norms
• Higher PDI indicates high level of power and wealth
within society.
• Leaders have ultimate power and authority, and the
rules, laws and regulations developed by those in
power, reinforce their own leadership and control.
• High UAI indicates society’s low level of tolerance for
uncertainty.
• High LTO indicates culture that is perseverent and
parsimonious.
• IDV of 38 in UAE indicates collectivist society as
compared to individualistic cullture, loyalty is
paramount here.
Relevance for India
• Economic, social and cultural link with UAE
o dates back centuries ago

• Economic link
o UAE second largest global market for Indian products
o India: Important export destination for UAE manufactured
products
o Non-oil trade value at $48 K in 08-09
o Exports: Natural/Cultured pearls, Cereals, Gems and
Jewellery, Manmade yarn
o Imports: Mineral fuels, Mineral oils, Precious/Semi-precious
stones, Metal ores and metal scrap
Relevance for India
• Social & Cultural link 
o Indian community - Largest expatriate community
numbering about 1.5 million  
o  
o Tourists from both sides are visiting for leisure and pleasure

o More and more UAE nationals availing healthcare and

tourism facilities in India

o NRIs remitting $25 billion a year to India – estimated $4

billion sent by NRIs from UAE
Relevance for India
• Cultural agreement  signed in January, 1975

• CEP signed for the period 1994-1996

• Both countries agreed in principle to enter into an Educational

Exchange Program (EEP)

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

December 2006

• Important bilateral treaty and agreements - Cultural

Cooperation Agreement, Double Taxation Avoidance
Agreement, Extradition Treaty
Bilateral trade relations
In Recent Years--- TRIGGERS
Discovery of oil in middle east

Rapid increase in wealth

Creation of the UAE Federation in 1971

Construction boom

Influx of expatriates including Indians

Gulf War & Stance of Palestineans

1.75 million Indians(18.4%) were welcomed in lower as well as White Collar Jobs
( least interference in power structure)
Bilateral trade relations
IMPORT – PARTNERS (2009): EXPORT – PARTNERS (2009):

1. CHINA 15.03% 1. JAPAN 17.27%

2. INDIA 14.27% 2. SOUTH KOREA 10.49%
3. US 8.44% 3. INDIA 9.96%
4. GERMANY 5.81% 4. IRAN 6.82%
5. JAPAN 4.52% 5. THAILAND 5.11%
High level visits from both sides
 UAE to India  India to UAE

 UAE’s President- January  President --November 1976

1975 1992.  Prime Minister --May 1981
 Vice President, PM of the
UAE and Ruler of Dubai -  President ---October 2003
March 2007.  Foreign Minister--May 2008
 Foreign Minister - June 2007  President-- November,2010
 Foreign Minister - June 2009
 Vice President---Mach 2010.
Moments
Bilateral cooperation
 JOINT COMMISSION--- To find & promote bilateral co-operation

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

 Both sides discussed issues towards promoting bilateral cooperation in the

following fields:
 Trade & Investment;

 Combating Crime, Terrorism and Illicit Activities;

 Education, Culture, Youth & Sports;

 Health, Science and Technology, Agriculture & Environment;

 Manpower;

 Energy, Hydro-carbons, Petrochemicals and Fertilizers.

India’s export items to UAE
 Precious Metals,
 Stones, Gems & Jewellery,
 Minerals,
 Food Items (Cereals, Sugar, Fruits & Vegetables,
Tea, Meat, and Seafood),
 Textiles (Garments, Apparel, Synthetic fibre, Cotton,
Yarn)
 Engineering & Machinery Products and Chemicals.
India’s imports from UAE
 Petroleum and Petroleum Products
 Precious metals
 Stones, gems and jewellery
 Minerals
 Food items
 Metal ores and metal scrap
UAE companies in India
 DP world (Port)
 Emaar Group (Commonwealth Games Village)
 Al Nakheel (high end real estate company)
 ETA Star Group ( Property developers)
 SS Lootah Group (Indian real estate)
 Emirates Techno Casting FZE
 RAK Investment Authority ( sovereign wealth fund)
 Damas Jewellery and
 Abu Dhabi Commercial Bank
Indian companies in UAE
 L&T
 Punj Lloyd
 Hinduja Group
 Pioneer Cement
 Oberoi Group of Hotels
Investments
 UAE investment in India - US$ 6 billion of which FDI is
US$ 1.5 billion and remaining as portfolio investment.

 10th biggest investor in India in terms of FDI.

 UAE’s investment in India were concentrated mainly in

five sectors:

 Energy(19.1%);
 Services(9.3%);
 Programming(7.8%);
 Construction (6.8%); and
 Tourism and Hotels(5.6%).
Suggestions to an I'national mgr
• The UAE is a thriving business centre with immense opportunities
for foreign investment .
• The key to business success is first understanding Emirati culture
and business etiquette.

Working practices

• Traditionally working week starts on Saturday and ends on

Wednesday.
• Attitudes to time in the UAE are much more relaxed than in many
Western cultures
• People and relationships are more important than schedules and
punctuality.
Suggestions to an I'national mgr
 Working Relationships
• Relationships and mutual trust are paramount for any
successful business.
• Emirati people prefer to do business with those they know.
• Family and friends come before anything else.

 Business Practices
• The customary greeting is “As-salam alaikum,” (peace be
upon you) to which the reply is “Wa alaikum as-salam,”
• You should greet each of your Emirati counterparts
individually.
• They are generally long in duration and discussions are
conducted at a leisurely pace over tea and coffee.
• If business cards are used, information should be printed in
both English and Arabic.
Suggestions to an I'national mgr
 Business etiquette (Do's and Don'ts)

• DO address your Emirati counterparts with the appropriate

titles.
• DO dress conservatively.
• DO accept an invitation to a meal or social event.
• DON’T schedule business meetings during prayer times or any
of the major Islamic holidays such as Ramadan or Eid.
• DON’T expect a one-on-one meeting to only include yourself
and the other person.
• DON’T ask about a person’s wife or daughters.
• Use the right hand for all public functions — including shaking
hands, eating, drinking and passing objects to another person.
Bibliography
• https://www.cia.gov/library/publications/the-world-factbook/geos
/ae.html
• http://www.authorstream.com/
• http://www.state.gov/r/pa/ei/bgn/5444.htm
• http://www.uaeembassy-newdelhi.com/uae-
indiarelations_index.asp
• http://www.indiastrategic.in/topstories19.htm
• http://www.iitrade.ac.in/kmarticle.asp?id=359
• http://www.uaeinteract.com/education/default.asp
• http://www.uaeinteract.com/recreation/
• http://www.communicaid.com/cross-cultural-training/culture-for-
business-and-management/doing-business-in/UAE-business-
and-social-culture.php
Thanks