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 There are ample
opportunities for doing business in the UAE. At the present time
the economy is booming - GDP having risen by 20.4 per cent in 2000.
Although a significant proportion of that increase was due to higher
oil prices. Government encouraged industrial diversification is
also contributing to continuing economic prosperity.
International manufacturers and
exporters may conduct business with Dubai by concluding transactions
directly with importers and traders who are already established
in the market.
Arrangement may be suitable for low
volume trade. However, for an on-going business relationship, overseas
companies may want to consider a more permanent form of representation.
A signatory of the General Agreement
on Tariffs and Trade, the UAE supports a liberal economy and is
committed to free trade. The UAE currency is secure and freely convertible.
There are no restrictions on profit transfer or capital repatriation.
Import duties are low and in the case of foodstuffs, medicine, agricultural
products, and items imported for use in the free zones are non-existent.
Labor costs are competitive and corporate
tax and personal taxes are nil. In addition every effort is being
made to reduce the paperwork involved in establishing a business
in the UAE. These factors combined with a strategic, accessible
location, an excellent reliable infrastructure and an extremely
pleasant and safe working environment bode well for future investment.
The UAE is a highly cosmopolitan well-educated
society, familiar with the methods and means of doing business worldwide;
however there are a few points which people new to the Arabian business
environment should keep in mind.
- Here, business is conducted
on the basis of personal relationships and mutual trust. It is
vitally important to build on these.
- Although it is changing rapidly
and large firms are structured as in the rest of the world, companies
are often a family affair, with the ultimate decision-maker being
the head of the family. Even if this is not the case, it is essential
to clearly identify the decision-maker. However, your initial
meetings will probably be at a lower level. These are also very
important as a means of building mutual trust.
- Your business card must be in English and Arabic and all brochures and presentation material are full-color and well produced.
- Good manners and courtesy are prized attributes.
- Nevertheless, although you should always arrive on time for a meeting, punctuality is not considered a virtue and you may be kept waiting before or during your meeting.
- Do not be put off if your meeting is interrupted by other guests or telephone conversations.
- The upfront, hard-hitting approach is generally not welcome. Be aware that what may seem like evasiveness on the part of your host is usually an unwillingness to say no to your face.
- Once a deal, is made, orally or otherwise, an Arab businessman's word is his bond and you are also expected to perform accordingly, even if the agreement is a verbal one. This can be disconcerting if you come from a business environment where verbal agreements are not binding.
- Hospitality is a way of life in the Arab world and business is frequently conducted over lunch or dinner - more than likely in a hotel or restaurant. It is also considered polite to return the invitation
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