Exporting to the Middle East

Etiquette

Etiquette is important in the UAE, and by making an effort to understand local custom and culture many doors will open for you. Although you will be expected to be on time for an appointment, don’t expect the same in reverse. Be prepared to be kept waiting for an appointment, or even for a last-minute postponement that you will only be notified of on your arrival for the meeting.

Never refuse refreshments offered, as this will be taken as an insult to your host. Once you have received your refreshment, you may however, just take a sip and leave the rest in the glass or cup.

Saving Face

Arabian culture is usually non-confrontational. ‘Saving face’, as in China, is a way to solve conflicts and avoid embarrassing situations. For example, pressure sales tactics can cause discomfort.

Also, avoid contentious discussions about religion, the status of women, and the politics of the Middle East. Remember that you are a "resident guest" of the United Arab Emirates and as such need to respect their way of life. Locals are generally hospitable and courteous. Aggression and rudeness are seldom seen; authority and calm are the norm.

Working Hours

There are no set business hours in the United Arab Emirates. Companies will either choose to work ‘straight’ which is between 0800hrs and 1700hrs, or ‘shift’ which is anytime between 0700hrs and 1300hrs, and then again between 1600h and 2100hrs or even 2200hrs.

Government departments are open from 0700hrs until 1400hrs, Sundays to Thursdays. Most shopping malls are open 10am until 10 or 11pm every day.

Work Dress Code

Men: A tie or smart open-necked shirt is recommended for office work. A suit is not necessary, unless visiting high profile locals.

Women: May wear knee length skirts or dresses, or trousers. Sleeves must cover the upper arm.

Local Office

Companies establishing a local office must use a resident sponsor. A sponsor may be a UAE citizen or an institution. The sponsor may be directly involved in the business, or may only provide legally required administrative services.

Currently companies undertaking direct business in the UAE must be at least 51 percent owned by a UAE national. However, this is under review and a lesser percentage is likely to be introduced sometime in the near to medium term.

Given the high level of local ownership, finding the right partner is paramount to success. Avoid plunging into relationships. It should be noted that many Emiratis make their living from these partnership arrangements and it is not uncommon for them to be involved in several if not hundreds of partnership agreements. Be prepared to take time to build enduring relationships and develop trust.

Establishing in one of the UAE free trade zones (FTZs) provides a number of exemptions, particularly the provision for 100 percent foreign ownership. Additionally, companies providing offshore services or regional representation may be allowed a higher level of foreign equity.

Addresses

Most business addresses in the UAE are straightforward, with many companies located in landmark office blocks in the major commercial centres, or in well-defined industrial areas.

Street signs are usually in English and Arabic, although in residential districts the numbering system can be confusing, and directions are usually via a map or set of directions.

Language

Although Arabic is the official language, English is widely used in business transactions.

Gifts

When Arabs receive gifts, it is a custom not to open it in front of the giver. The same is expected when they give someone else a gift.

Conclusion

The UAE is a fast developing and potentially lucrative market for many Australian businesses. It is important, however, that care is taken in the method of market entry and in selection of local partners. Equally important is an understanding of the local culture, especially the concept of saving “face”. The Australian Government also has good representation in the UAE and representatives are always available to give advice to Australian business. There are also some 4,000 expatriate Australians living in the Emirates and most would be happy to give advice.

 * Phillip Waite is a business adviser for the Australian Industry Productivity Centre (www.nswbusinesschamber.com.au)