Starting a business in the U.S. versus the United Arab Emirates

International Management

Cultural comparison paper: Staring a business in the U.S. versus the United Arab Emirates

The United Arab Emirates (UAE), like many other Muslim nations, is often referred to as a high-context culture by anthropologists who study the workplaces of different nations. High-context nations are nations in which one's societal position and relationship is often more important than what is directly stated during a negotiation. "High-context refers to societies or groups where people have close connections over a long period of time. Many aspects of cultural behavior are not made explicit because most members know what to do and what to think from years of interaction with each other" (Beer 2003). In contrast, the United States is a low-context culture, as it is a highly pluralistic and diverse society characterized by a tolerance of diversity and fluid relationships. In contrast to high-context societies, there is a strong perceived barrier between an individual's private and public life, and business negotiations are often made between people who know one another only as associates, not as individuals with long, complex familial, ethnic, and religious histories and identities that are of vital significance when imparting meaning. In the United Arab Emirates, Islamic law and philosophy permeates almost every facet of daily life, even if individuals may have different interpretations of that law, based upon their upbringing and social class. Public and private, the secular and the religious are not seen as separate areas of human life.

Unlike high-context societies, low-context cultures like the U.S. are dependent upon verbally explicit communication, such as contracts and government laws, not on tacit understandings between individuals. But the United Arab Emirates, as is characteristic of most high-context societies, is less dependent upon written rules than it is upon relationships in government and business -- in other words, who is in charge is more important than what the law says, and an individual doing business in the nation may need to accept that bribery, gifts, and other forms of 'making nice' with the 'right people' are seen as acceptable, and may even be necessary. "On a practical basis, names are very important for doing deals in Islamic countries...Who you know is key. Similarly, relationships and family connections are vital in business....Personal staff can be very influential and should not be underestimated, he continued. The man who meets you at the airport or who chats you up in a company's waiting room may turn out to be a relative or confidant of the person you're there to do business with" (Lagace 2002). Even in a business that caters mainly to expatriates and tourists in the region, local contacts are necessary to establish trust with government officials and employees, and particularly in these tense times during the Muslim and the Western world, it is essential that strong relationships are forged with the native populace. Also, a businessperson must be made aware of the different families who control the various regions that make up the united UAE.

Unlike some other nations within the region, the United Arab Emirates has shown notable trends in modernizing its attitudes. For example, the government maintains an organization called the Women's Federation and promotes training, education, and the advancement of the status of women. In 1988, it was estimated that women constituted 6.2% of the workforce in 1988, high in comparison with Saudi Arabia, for example, even though discrimination against women remains common in a more liberalized UAE ("United Arab Emirates," 2006, Library of Congress: Country Studies). However, anecdotally, this discrimination against women has not always extended to foreigners, and many women have reported 'using' their gender in negotiations within the region to disarm their opponent, by showing unexpected strength during a meeting -- although this technique must obviously be used with caution. However, the undeniable greater cultural tolerance of the oil-rich nation is reflected in the way it has actively sought out foreign investment and has shown an open and welcoming attitude to foreign businesses. This has extended to a level of tolerance of Western customs and culture. The many Westerners living the UAE make it a ripe audience for new products and services in the region coveted by expatriate Westerners.