International Business in the Emirates of Dubai - Term Paper Example

Emirates of Dubai 1.0 Executive Summery Culture is those values, beliefs, customs, behaviors and attitude of people in a society. This are transmitted from one generation to the next. It also includes the religion, the language, the method of communication and the social structure in a society. Understanding culture is an important part of any business that operates internationally and which wants to succeed in new markets. With the introduction of new markets and the need of businesses to expand internationally, it is important for businesses to understand the cultural difference of the target markets before going into the new market. This is because people in different countries have different cultures depending on their understanding of things and their traditions. This is also so as to avoid cultural conflicts in the host country that may affect the acceptance of the business by the citizens. This report analyses the culture of the United Arab Emirates (UAE), in specific the Emirates of Dubai. It looks at some of the cultural components of the country and how this impacts the international business. These cultural components include, the traditions of the country, the beliefs and the religious aspects affecting the market. Finally, it looks at what businesses need to do or consider in order for it to operate effectively in this country and gives a conclusion of the important factors from the report based on the chosen market and the cultural factors in the market. 2.0 Rationale of Choice of Country The reason for choosing the Emirates of Dubai is because it is the second largest city in the United Arab Emirates (UAE). It has a growing reputation as being one of the most attractive places in the world. It is modern with infrastructure and has become a major force of the economy globally, it has world class business environment that attracts many investors. It is also a politically stable country able to attract many foreign investors. The fact that it has a free economy means that there is minimal government control and minimal regulation in the private sector making the country to become a very attractive place to invest. It is one of the most liberal countries in the gulf that results to an attraction of a high capital to flow across the region (Noack, 2009). This makes it worth to look at the country when considering international business. The country also is rich in its culture. The Emirates of Dubai culture is mainly shaped by the traditions of the Arabs that are based on the Islam background. The religion shapes all aspect of the daily life of people in the country. It is with this regard that this country has become the choice of the study. 3.0 Detailed Cultural Analysis and Components The Emirates of Dubai is a multi-cultural country in the UAE. This means that it accommodates people from different race, ethnicity and religious background. However, its culture is mostly shaped around the Muslim religion. This is because the primary region followed in the United Arab Emirates is Islam. Even with the modernization of the country, the UAE has remained strong in its culture. Citizens still ware their traditional Arabic dresses which are their symbol of their pride and heritage. Men dress in long, white robes referred to as kandura while women wear long, black rob referred to as abaya. Women especially those who are engaged also wear facial masks to hide their faces as a sign of self respect. However, this tradition of wearing facial masks is getting more relaxed as with time women are not strictly expected to wear the facial masks (Reiser 2010). This country also prohibits the consumption of alcohol. This is because it mainly operates on the Islamic law. This culture is followed as the consumption of alcohol is against the Islamic law. However, being a liberal country, it doesn’t mean that non-Muslims are restricted all the same as one can be allowed to drink. This is only after being given a permit to do so in their homes (Reiser, 2010). The culture of this country also includes restrictions in social interaction. This is where it is forbidden for people to show affections in public. These include affections like holding hands, shaking hands with an individual of the opposite sex or even individuals hugging each other in public. Another culture that is taken of at most importance in this country is observing Fridays as being holy. Being a country that mostly follows the Muslim culture, Friday is seen as a “Jummah” or a holy day. This is a weekly holiday in this country. Therefore, most employees observe their working days from Sunday to Thursday. This is so as to be able to observe the Muslim Sabbath day. This country also follows the Islamic tradition of fasting in the holy month of Ramadan. This culture is seen as being a very important culture and is observed by all Muslims in the country. Here food is consumed only after sunset and before the sun comes up. To respect this culture, those who do not observe the festival are normally requested that if they should eat, they should not do so in public. The country’s citizens still listens to Arabic music and dance to the traditional music and they still conserve their traditional sports. It also still follows the festivals like the Ramadan, sports festivals and Eid-ul-Fitr. This country also has a strong culture of being friendly to tourists. The country is diverse and is a tourist attraction country having one of the most attractive cities in the world. This friendly environment and the other attractive sites make it a huge tourist attraction. 4.0 Cultural Impact on International Businesses Culture affects almost all aspects of a business. The unique culture of this country impacts the international business in terms of how people engage in business, how they communicate and negotiate in business and when they engage in operations in terms of weekly working days. UAE culture of observing Friday as being holy impact the days in which a business operates where in these countries businesses operate from Sundays’ to Thursdays’. This is so that the weekend can cover the Muslim Sabbath. Males have the obligation to attend the mosques on Friday’s and thus can not do business or work on that day (Reiser, 2010). The culture of restricting social interaction explains the way businesses looks people in this country use gestures and how they reflect other partners. A hand shake with an individual of the opposite sex after completing a deal maybe misunderstood in this country. This may be seen as lack of respect that may lead to loss of money when the deal is broken because of misunderstanding. This may mean something else as is against the Islamic law which is primarily followed in this country. In general, The Islamic culture is greatly respected in this country and plays a crucial role in the day to day activities of people in this country. Most laws in this country are also based on the Islamic culture. These impacts the performance of an international business since respecting the culture means respecting the laws of this country. This ensures that there is smooth running of operations of the business that impacts its performance. Being one of the most attractive places in the world and the diversity of the market environment makes this country attractive to foreign investors who want to set up hotels in the country. This is a booming business as the tourism sector in this country is doing well. 5.0 Considerations for effective operation in the Emirates of Dubai There are factors that a business needs to consider to be able to operate in this country. This mainly includes the Islamic culture. The country laws are based on the Islamic culture. Businesses that want to operate here need to ensure that their operations are in a way that they will not go against the Islamic culture. Businesses should also sell goods and provide services that will be accepted by the Islamic community. Foreign investors are expected to respect the Islamic culture while operating in this country; however, they not required to practice themselves. To operate effectively in this country, businesses also need to consider the business dress code by considering the dressing culture of the country. The expected dress code in this country is strictly formal. Despite the weather conditions in the area, people are expected to dress in a respectable manner at all times. Non-Muslim men are expected to wear suits and ties at all times while non-Muslim women are expected at all times to wear in a respectable and modest way. They are expected to cover their arms and legs. A business that observes this will be accepted in this country. This will ensure that the business operates effectively. It is also important for businesses to consider the working days for effective operation in this country. Being an Islamic country, most businesses operate from Sundays’ to Thursdays’ since Friday is a holy day for the Muslims. As men are expected to be in the mosque on this day, businesses need to adjust its operation. Businesses need to be aware of different gestures and what they mean to the locals of the host countries. This will affect the operations of a business in the country in terms of attraction with the local investors and customers. Gestures like the use of the left hand to eat or signal an individual will be taken negatively in this country. They can lead to misunderstandings resulting to a deal breaker. Another consideration while operating in the Emirates of Dubai is the type of product that can be accepted or that which is legal in the country. This should be considered even before entering the market as it will determine the performance of the business in the market. Products like alcohol will not do well in this country. Being a country that follows the Islamic culture and having most of its citizens being Muslims, It will be against the Islamic law for one to consume the product. This means that the product will have low demand in the market. 6.0 Conclusion In conclusion, understanding the culture of the Emirates of Dubai is very important as this ensures the success of an international business or company that operates or wants to operate in this country. Islam is the major cultural consideration from the report as this is the back bone of other traditions and cultures in the country. This in turn affects the operations of businesses in the country. This also needs to be considered when selecting the products to sell or services to provide in this country. For example, products that go against the Islamic law like pork will not be accepted by the market and thus will not be in demand. However elegant long Islamic women cloths or men suits and ties will be in demand as they are acceptable in the market. It should be noted that businesses in this country operate on a mutual trust relationship. Is it also for this reason that it is worth looking at the cultural factors. Consideration of the cultural factors leads to an understanding of the business environment and the stakeholders. This helps in strengthening that relationship with stakeholders in the market which boosts the business performance. This is so since stakeholders in this market generally like to operate with people they know on a personal level. This market is very promising in terms of businesses performing well in the market. The report gives an indication that the service that will perform well is that in the tourism sector. This is because the country is rich in its culture and traditions which is a major tourist attraction. It also has modern infrastructure and attractive sites and cities. The study and understanding of the cultural market will work as the product and services, including the organizational culture will be in accordance with the market culture of the country. This will lead to the success of an international business operation in the host country. References Noack, S. (2009). Business Guide: Doing Business in Dubai & the United Arab Emirates. Norderstedt: Books on Demand. Rehman, A. A. (2008). Dubai & Co: Global strategies for doing business in the Gulf states. New York: McGraw-Hill. Reiser, D. (2010). Analysis of cultural differences in Dubai. Berlin: BWV, Berliner Wiss.-Verl. Bennett, L. (2008). Dubai. London: New Holland. Paul, J., & Kapoor, R. (2008). International marketing: Text and cases. New Delhi: Tata McGraw-Hill. Read More