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🇦🇪 United Arab Emirates

The business environment in the United Arab Emirates stands out for its modern approaches and openness to new ventures.

In the UAE, hierarchical structures, personal relationships, and mutual respect play a significant role in business culture.

The business environment in the United Arab Emirates stands out for its modern approaches and openness to new ventures.

In the UAE, hierarchical structures, personal relationships, and mutual respect play a significant role in business culture.

Country Profile

Country information, demographics, geography, and system of government

Cultural Values

Cultural characteristics, values, traditions, and social norms

Business Culture

Practical insights on business meetings, appointments, gift-giving, and communication

Indicators

Indicators related to social and cultural factors, corruption, globalization and more

Country Profile

Formal Name

United Arab Emirates

Capital

Abu Dhabi

Official Language

Arabic

Population

10,4 million

Currency

UAE Dirham (AED) (د.إ )

GDP

$537 billion

Land Area

71.020 km² (Land Area)

Region

Middle East and North Africa

Cultural Cluster

Middle East

Other Names

Conventional Long Form: United Arab Emirates

Conventional Short Form: UAE

Etymology

The name "Arabia" dates back centuries. The ancient Egyptians referred to the region as "Ar Rabi"; the term "Emirates" derives from the Arabic word “amir,” which means "commander," "lord," or "prince."

Table of Contents

Country Profile

Formal Name

United Arab Emirates

Capital

Abu Dhabi

Official Language

Arabic

GDP

$537 billion

Population

10,4 million

Location

Middle East and North Africa

Cultural Cluster

Middle East

Other Names

Conventional Long Form: United Arab Emirates

Conventional Short Form: UAE

Currency

UAE Dirham (AED) (د.إ )

Land Area

71.020 km² (Land Area)

Etymology

The name "Arabia" dates back centuries. The ancient Egyptians referred to the region as "Ar Rabi"; the term "Emirates" derives from the Arabic word “amir,” which means "commander," "lord," or "prince."

Demographic Structure

Population:

10,4 million

1.7 million (16.3%)

8.5 million (82%)

0.2 million (1.7%)

Female 3.7 million (36%)

Male 6.7 million (64%)

Ethnic Groups

Emirati 11.6%, South Asian 59.4% (Indian 38.2%, Bangladeshi 9.5%, Pakistani 9.4%, others 2.3%), Egyptian 10.2%, Filipino 6.1%, Other 12.8%


Note: Data represents the total population; as of 2019, immigrants accounted for approximately 87.9% of the total population according to UN data.


Spoken Languages

Arabic (official), Hindi, Malay, Urdu, Pashto, Tagalog, Persian


Religious Beliefs

Muslim 74.5% (official) (Sunni 63.3%, Shia 6.7%, other 4.4%), Christian 12.9%, Hindu 6.2%, Buddhist 3.2%, Agnostic 1.3%, Other 1.9%


Note: Data represents the total population; as of 2020, immigrants accounted for approximately 88.1% of the total population according to UN data.

Population, Age, 2023: World Bank

GDP, 2024: IMF

Ethnic Groups, Languages, Religious Beliefs: CIA Factbook

History and Government

History

This country, located on the coast of the Persian Gulf, had its defense and foreign affairs managed by the United Kingdom in the 19th century. In 1971, the UAE was formed through the unification of six emirates: Abu Dhabi, Ajman, Al Fujayrah, Ash Shariqah (Sharjah), Dubayy (Dubai), and Umm al Qaywayn. In 1972, Ra's al Khaymah joined the federation. The UAE has a higher per capita income than many European countries. The global decline in oil prices, the collapse of real estate prices, and the international banking crisis of 2008–09 had a severe impact on the country. The UAE benefits from abundant oil revenues and follows a moderate foreign policy.


Independence

December 2, 1971 (from United Kingdom)


Government Type

Federation of Monarchies


Yönetim Bölgeleri

There are 7 emirates.

Emirates: Abu Zaby (Abu Dhabi), Ajman, Al Fujayrah, Ash Shariqah (Sharjah), Dubayy (Dubai), Ra's al Khaymah, Umm al Qaywayn


Major Cities

Abu Dhabi, Dubai, Sharjah

Geographical Features

Geographic Location

The United Arab Emirates (UAE) is located in the southeastern part of the Arabian Peninsula, along the southeastern coast of the Persian Gulf. To the north, it borders the Persian Gulf.



Neighbors

Saudi Arabia, Oman


Climate

The UAE generally has a hot and arid desert climate. Summers are extremely hot and humid, while winters are mild and generally dry. Temperatures in summer can exceed 40°C (104°F). Coastal areas experience high humidity, whereas the interior regions are hotter and drier.

Cultural Values

 The United Arab Emirates (UAE) is a rapidly developing and diverse country that offers a unique blend of modernity and traditional Arab culture. This federation of seven emirates is not only a global business and tourism hub but also notable for its rich cultural heritage and social values.


 In the UAE, family is the cornerstone of society. Extended family structures are strong, and tight-knit solidarity among family members is common. Traditionally, families value living together and maintaining close connections. Respect and social standing in the community are closely linked to the family’s position.


 Hospitality is a fundamental aspect of UAE culture, with a generous and welcoming attitude toward visitors. Traditional Arab hospitality emphasizes hosting guests in the best possible way and offering them food and comfort. This can be observed across a wide range of settings, from home visits to business meetings.


 Islam is the official religion of the UAE and plays a central role in the country’s cultural and social life. Daily prayers, fasting during Ramadan, and the pilgrimage to Mecca are integral to daily routines. Religious values profoundly influence social norms and laws.


 Respect in social interactions holds significant importance in UAE culture. Special regard is given to elders, family heads, and authority figures. Appropriate conduct in public and social settings requires adherence to established norms of politeness and etiquette.


 The UAE has successfully balanced rapid modernization and technological advancement with its commitment to traditional values and cultural heritage. Traditional clothing, folk dances, music, national holidays, and religious ceremonies are all part of this rich cultural fabric.


 By welcoming expatriates and immigrants from around the world, the UAE has become an extremely multicultural society. This diversity has created a rich social and professional interaction, encouraging harmony among people from different cultural backgrounds.

Business Culture

 The business environment in the United Arab Emirates (UAE) is shaped by discipline, diligence, and a strong entrepreneurial spirit. Supportive policies for innovative business ideas and entrepreneurship are widespread. Success and excellence in professional life are regarded as the natural outcome of both individual effort and collaboration within the community.


 UAE business culture is influenced by a strong hierarchical structure, relationship-based business practices, and Islamic traditions. By blending modernization and international cooperation with traditional values, the UAE holds a significant position in the global business landscape.


 Hierarchy plays an important role in UAE business culture, and decision-making processes are typically led by senior management. Managers hold broad authority, and employees are expected to show great respect toward their superiors. Decision-making may require patience, as it often depends on approval from top-level executives.


 Business relationships are built on personal connections, and investing time in developing these relationships is essential. Foreign companies wishing to operate in the UAE are expected to establish strong relationships with local partners and build trust. This process is often facilitated through business dinners, meetings, and social events.


 Islamic traditions have a profound influence on business ethics and daily business practices. Religious observances such as prayer times, Ramadan, and Islamic holidays may affect business schedules. Therefore, showing respect for Islamic traditions and religious practices is critical to successful business relationships.


 Majlis refers to a traditional meeting or hospitality space in the UAE and holds an important place in the business world. Majlis gatherings are used to exchange ideas and strengthen relationships among business and community leaders. These meetings also help build connections between the business community and government officials, fostering mutual understanding and cooperation.

Practical Information

First Names and Titles

  • Using first names requires a certain level of familiarity between parties.

  • “Bin” (also ben or ibn) is placed before a name and means “son of.” For daughters, “Bint” is used. People may address each other using their father’s name with “Abu” (meaning “father of”), followed by the son’s name. When addressing women, “Umm” (meaning “mother of”) is used.

  • Members of ruling families are addressed as His/Your Highness (Sahib al-Sumu). Ministers and ambassadors are addressed using the international title “Excellency.”


Business Meetings

  • The UAE strongly supports foreign investment. In general, doing business there depends on meeting financial criteria.

  • The standard greeting is “As-salamu alaykum” (“Peace be upon you”), to which you may reply “Wa alaykum as-salam.” Upon arriving at the reception room, visitors greet everyone as they enter and say these words. After receiving a response, they are invited to enter.

  • The use of business cards is common. Having one side printed in Arabic can be an advantage.


Communication

  • Discussions are very common, and rational debate is welcomed.

  • The purpose of discussions is not for one person to win, but to clearly convey ideas and foster mutual understanding.

  • Effort should be made to conduct discussions in a polite and logical manner.

  • You may express your thoughts clearly and give direct answers.


Gift Giving

  • Giving gifts in the UAE can be more challenging than in many other countries, as many products are available at very low prices.

  • The gift you choose should be of high quality.

  • As a sign of respect, the recipient opens the gift in front of the giver or, if in a group setting, in front of others.


Business Attire

  • In the UAE, foreigners wearing local traditional clothing is generally not welcomed. This is intended to prevent the perception that foreigners are seeking an unfair advantage by wearing local dress.

  • For men, formal attire such as a shirt and trousers is typically preferred during the day, while a collared shirt and tie are appropriate for evening events or business meetings. For specific activities such as desert safaris, appropriate outdoor attire may be worn.

  • For women, the UAE is less restrictive than many other Arab countries; however, very revealing clothing is considered inappropriate. In business environments, modest and conservative attire is recommended.


Appointments

  • In Middle Eastern business culture, a relatively relaxed attitude toward time is common; arriving late to meetings may occur, but punctuality is expected from Westerners.

  • Refreshments—especially coffee and pastries—are commonly offered during meetings. Accepting what is offered and thanking the host is considered polite.

  • On Fridays, Emirati citizens and other Muslims observe religious practices in accordance with Islam.

  • During Ramadan, the consumption of food and beverages is restricted, especially for non-Muslims. Large hotels may have designated areas, but alcohol is not served.

  • Working hours in the UAE are generally from 9:00 a.m. to 5:00 p.m., with the workweek running from Sunday to Thursday. During Ramadan, working hours are usually reduced to six hours per day.

  • While arriving on time for work and meetings is important in the UAE, time management may not always be the top priority.

  • Employees benefit from a good work–life balance and, in addition to public holidays, are typically entitled to 30 days of annual leave and up to 90 days of sick leave.

Indicators

Hofstede Cultural Dimensions

Power Distance Index (PDI)

The UAE scores high (80) on this dimension, indicating a strong acceptance of hierarchy and a clear social structure in which everyone knows their place. Hierarchies in organizations are seen as a reflection of inequalities. Centralization is common, subordinates are expected to follow instructions, and the ideal leader is perceived as a benevolent autocrat.

For more information, visit our Hofstede Cultural Dimensions post.

Other Indicators

Corruption Perceptions Index
(CPI)

World Ranking

23

KOF Globalization Index
(KOF)

World Ranking

37

Global Innovation Index
(GII)

World Ranking

32

Human Development Index
(HDI)

World Ranking

17

Rule of Law Index
(WJP)

World Ranking

39

Ease of Doing Business Index
(EODB)

World Ranking

16

Corruption Perceptions Index (CPI), 2024: Transparency.org

Human Development Index (HDI), 2023: United Nations Development Programme

KOF Globalization Index (KOF), 2024: ETH Zürich

Rule of Law Index (WJP), 2024: World Justice Project

Global Innovation Index (GII), 2024: WIPO

Ease of Doing Business Index (EODB), 2019: World Bank

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