There are ample opportunities for doing business in the UAE. 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 (4 per cent) 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.

BUSINESS ETIQUETTE

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, more than anywhere else, 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.

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 impatient. Take the time to chat and drink the coffee, tea or soft drink that is always on offer and establish the relationships that will stand you in good stead. Do not be put off if your meeting is interrupted by other guests or telephone conversations.

The Arabic handshake involves touching the heart with the palm of the right hand after each shake, although visitors should note that when greeting Arab women they should not offer their hand unless the woman extends hers first. The terms ‘Sayed' (Mr) or ‘Sayeda' (Mrs), followed by the first name, should be used in greeting, to ensure politeness. It is also very important for visitors never to sit in such a way that their feet are pointing directly at someone else. Causing someone else to lose face, whether a client or colleague, is considered extremely offensive and any criticism or corrections should be kept for private discussions afterwards.

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. Nevertheless, 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.

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.

Language :: although Arabic is the official language; English is widely used in business transactions.

In Brief

• Use your right hand, particularly for eating. If unsure, put your left hand in your pocket or behind your back. Never point. Avoid postures where you may show the soles of your feet and generally avoid crossing your legs.
• Avoid any display of anger or impatience.
• Maintain eye contact with your host. Rapid shifts in eye contact may be construed as a lack of trust.
• Handshakes may often be a clasp. Do not offer to shake hands with an Arab woman, unless she offers her hand to you. Even then, only a gentle touch is appropriate
• When offered tea, coffee or snacks, always accept, even if you do not consume it all.
• The offer of strong black coffee is a feature of Arab meetings and a mark of hospitality and should not be refused. The cups are small and when you have enough, a polite ‘wiggle’ of your cup signifies to the server that you have had sufficient.
• Learn the art of polite small talk, which will open most meetings, particularly introductory sessions.
• Learn to relax and not exhibit signs of tension, which may transmit uncertainty.
• Assume a calm demeanour, avoid brash conversation and maintain a body posture that is non-aggressive.

CHAMBERS OF COMMERCE

Abu Dhabi Chamber of Commerce
POB: 662
Tel: 02 6214000; Fax: 02 6215867
Email: mohd.almehairbi@adcci.gov.ae
Website: http://www.adcci-uae.com

Ajman Chamber of Commerce & Industry
POB 662 Ajman
Tel:06 7422177 Fax: 06 7427591
E-mail: ajmchmbr@emirates.net.ae
Website: http://www.ajcci.gov.ae/index.php

Dubai Chamber of Commerce and Industry
POB 1457 Dubai
Tel: 04 2280000/ 2224651 Fax: 04 2211646
Email: dcciinfo@dcci.org
Website: http://www.dcci.org

Fujairah Chamber of Commerce, Industry & Agriculture
POB: 738, Fujairah
Tel: 09 2222400 Fax: 09 2221464
Email: fujccia@emirates.net.ae
Website: www.fcci.gov.ae

Ra's al-Khaimah Chamber of Commerce and Industry
POB 87 Ra's al-Khaimah
Tel: 07 2333511 Fax: 07 2330233
Email: rakchmbr@emirates.net.ae
Website: www.rakchamber.com

Sharjah Chamber of Commerce and Industry
POB: 580 Sharjah
Tel: 06 5682888 Fax: 06 5681119
E-mail:scci@sharjah.gov.ae
Website: www.sharjah.gov.ae

Umm al-Qaiwain Chamber of Commerce & Industry
POB 436 Umm al-Qaiwain
Tel: 06 7651111 Fax: 06 7657055