Analysis of the culture of the UAE and its implications on companies wishing to do business in the UAE - Essay Example

Running Head: Analysis of the culture of the UAE and its implications on companies wishing to do business in the UAE International Business 2 Instructor’s Name: Name of the Institution: Introduction The UAE or United Arab Emirates refers to a seven emirates federation located on the renowned Persian Gulf in Southwest Asia. It falls on the southeastern part of the famous Arabian Peninsula and borders countries such as Saudi Arabia and Oman. The seven states are commonly referred to as emirates and include Umm al-Quwain, Sharja, Ras al-Khaimah, Fujaira, Dubai, Ajman and Abu Dhabi. The UAE has large deposits of natural gas and oil and has turned into a very prosperous country courtesy of funding from foreign direct investment in the 1970s. UAE’s Human Development Index is one of the highest, not only in Asia, but also the whole world. It is currently ranked the thirty-first in the world (UNDP, 2009) According to the International Monetary Fund, the UAE currently boasts of about $ 200 billion in purchasing power parity (IMF, 2009). UAE was in the past known by the name Trucial Oman or Trucial States until 1971. This was in reference to a truce between a number of Arab Sheikhs and Britain in the nineteenth century. The federation was also known as Pirate Coast between the eighteenth century and the early years of the twentieth century due to the emirates in the area. The UAE culture The UAE culture boasts of a very rich blend Islamic, contemporary and traditional Arab elements. After the state was founded, numerous educational opportunities in both public and private cultural centers emerged. This helped preserve the rich heritage of the country and at the same time promote cultural awareness. Aesthetics UAE has an expansive coastline, varied landscape, sandy beaches and many other pleasant sites. Consequently, people can engage themselves in various activities ranging from sand skiing to powerboat races. The UAE also has well manicured golf courses that provide enjoyment for those who prefer less active sports. It also has plenty of shopping opportunities. Moreover, the country has a very rich cultural heritage that can be accessed in a variety of cultural centers. It also has traditional sports like horse racing, camel racing, and falconry, which has helped in attracting tourists. The country has become a venue for international and regional sports events, exhibitions and conferences. Among the sporting events held in the country include cricket and polo, World Powerboat Racing, the Desert Classic Golf Tournament, and Dubai World Cup competitions. Attitudes and beliefs The UAE is a land of great opportunities and its people believe in hard work. It has very few cases of crime, a clear indication that the people have a high sense of integrity. The rich blend of contemporary, Islamic and traditional Arab elements makes brings in a variety of attitudes and beliefs. The high level of security as well as the attitudes and beliefs of the people of the UAE makes the country a very good place to invest. Religion The largest religion in the UAE is Islam, which constitutes about 96 per cent of the country’s population. This number is however condensing due to large immigrations from South East Asia and the West. The next biggest religion is Christianity, mainly Roman Catholic. A majority of these Christians are of European, Lebanese, Indian, and Filipino background. UAE has estimated 31 churches spread all over the country. There is also Hinduism as a result of immigrations from Southern Asia. Hinduism is also present in the Bur Dubai region This rich blend of religion and the country’s principle of freedom of religion provide a good business environment since there is religious tolerance among the people. The religious tolerance also contributes a stable political environment, which is very essential for business. Material Culture Technology has had a big influence culture of the people of the UAE. The initially conservative culture now embraces technological advancement and material wealth. This is very positive for business development since the people have also developed capitalist minds with regard to wealth creation and ownership. Language Arabic is the most widely spoken language in the UAE, followed by English. There are also other smaller languages especially among the immigrants although they are insignificant compared to English. This makes communication, which is very essential for business, very easy. Societal organization The UAE has a very unnatural sex distribution with the number of men being twice as that of women. The UAE has a diversified population (Arab News, 2004)19 per cent being Emirati and 23 per cent being Arabs or Persians. Interestingly, 74 per cent of the UAE population is foreigners, one of the highest in the world. These foreigners bring skills, money and expertise into the UAE economy, making it a very good environment for business. Legal characteristics The UAE has a federal court system with all the states having joined the system with the exception of Ras al-Khaimah. All the emirates use both Islamic and secular law for criminal, civil and high courts (Library of Congress, 2009). The use of both secular Islamic laws in the states provides a favorable business environment. Political structures The UAE’s political structure has a federal president who is usually an elected monarchy, and a prime minister. Both the premiership and the presidency of the UAE are hereditary to Dubai’s Al Maktoum clan and Abu Dhabi’s Al Nahyan clan. The president serves as the head of state and Abu Dhabi’s ruler. Similarly, the Prime Minister also serves as Dubai’s ruler and the country’s Vice President and head of government. The financial obligations and political influences of the different emirates are shown by their place in the country’s federal government. Whereas every state retains autonomy over its territory, a portion of each state’s revenue goes to the country’s central budget. This system has led to political stability that makes the UAE business environment very conducive. Conclusion The UAE culture is very diverse, with elements from the traditional Arab, Islam and contemporary elements. The country is endowed with a rich natural environment that is very attractive to tourists, especially its coast line. Its infrastructure is also up to date, particularly its information and communications technology platform. UAE’s political and legal system makes it among the most politically stable countries in the region and indeed in the whole world. UAE high number of immigrants further attests to the fact that it is very friendly to foreigners. Moreover, UAE’s location puts in almost a central position, hence is easily reachable from many parts of the world including Africa, the rest of the Asian continent and Europe. The various aspects of this culture such as aesthetics, attitudes and beliefs, religion, material Culture, language, societal organization, legal characteristics and political structures all contribute towards a conducive environment for business References Arab News (2004, November 3) The Ideal Prince, Arab News IMF (2009) IMF Data Mapper, retrieved from www.imf.org, on January 12, 2009 Library of Congress (2009) Legal system, retrieved from www.lcweb2.gov, on April 13, 2009 UNDP (2009) Statistics, retrieved from www.hdr.undp.org, on April 13, 2009 Read More