Cultural Diversity in UAE Organizations: Trends and Implications

Introduction and Research Questions

The purpose of this proposed study is to evaluate the current levels of cultural diversity in United Arab Emirates (UAE) public and private sector organizations and their implications for UAE culture. The study is guided by the following research questions:

1. What have been the recent trends in economic diversification in the UAE?

Research Problem and Scope

2. Is it possible to formulate optimal diversity levels for a given country?

3. Can there be too much diversity? How can it best be measured? If there is too much diversity, should it be curtailed — and if so, how?

4. What are the implications for UAE culture if current demographic patterns persist over the next 10 years? Twenty years? Fifty years?

Today, it can be argued that the UAE is in danger of losing its cultural and religious heritage altogether. The UAE is already a polyglot of languages and a mixture of nationalities, with just over 50% of the Emirates' population speaking a combination of the official language, Arabic, and other prominent languages including Persian, English, Hindi, and Urdu (UAE people and society, 2014). In fact, fewer than 20% of all UAE residents are actually UAE citizens: Emiratis account for just 19% of the total population of 5.5 million, while other Arab and Iranian groups account for nearly a quarter (23%), and South Asians account for fully 50% of the total UAE population (UAE people and society, 2014). The remaining 8% of the UAE population consists of Western and East Asian expatriates (UAE people and society, 2014). Moreover, although Islam is the official religion and more than three-quarters (76%) of the population are Muslim — some authorities place this figure as high as 96% — other religions are also practiced in the UAE, including Christianity (9%), Hinduism and Buddhism (5%), and the remaining 15% consisting of Parsi, Baha'i, Druze, Sikh, Ahmadi, Ismaili, Dawoodi Bohra Muslim, and Jewish communities (UAE people and society, 2014).

In sum, unless current diversity patterns are reversed, UAE citizens will continue to represent a smaller and smaller percentage of the overall population. This raises a fundamental question: at what point will the UAE cease to function as a coherent sovereign state because its population has become so overwhelmingly composed of non-citizens that its national identity and institutional structure are fundamentally threatened?

The scope of the research problem is limited to the UAE but extends to both public and private sector organizations. A representative sample of both types of organizations will be included in the proposed study, and their respective diversity levels will be examined using a survey to identify any potential effects on organizational performance and productivity, as well as responses to the guiding research questions stated above.

Literature Review: UAE Economic Growth and Cultural Diversity

The UAE's per capita GDP remains strong at around $30,000, equivalent to many Western nations (UAE, 2014). The Emirates have also enjoyed relative peace and stability in a highly charged region of the world, allowing pursuit of political and social reforms, including a $1.6-billion infrastructure investment initiative for the less affluent northern regions (UAE, 2014). Despite these reforms and initiatives, the UAE remains highly fragmented culturally, and current trends suggest that the Emirates will become even more diverse in the foreseeable future.

As international coalitions have repeatedly engaged in the Middle East to counter security threats, the United Arab Emirates stands out as a beacon of cultural tranquility and economic prosperity. Time and again, the literature cites the UAE as an exemplar of a modern Islamic state that can transcend the religious and cultural restrictions imposed by its neighboring states, allowing a market economy to fuel plans for increasing employment opportunities for young UAE citizens. For instance, Lee (2005, p. 13) emphasizes that, "Enjoying a political culture that allows for openness and embraces market solutions as a way to think beyond an oil-based economy, Dubai has been able to leap above its Arab neighbors to become a steadily growing economic powerhouse."

The UAE is not unique in the Arab world in pursuing economic liberalization, but the Emirates — like Turkey — have managed to carve out a separate path for development that is far more relaxed in its political views concerning other cultures and religions, setting it apart from states such as Saudi Arabia or Iran. Given that the UAE has existed for less than half a century and possesses vast oil revenues projected to last another half century (Lee, 2005), the Emirates could easily have adopted the kind of authoritarianism that sparked the Arab Spring uprisings. Instead, the Emirates not only avoided any such uprisings within their own nation, they emerged from that period in Arab world history stronger than ever — due in large part to their enlightened, secular approach to governance. As Lee (2005, p. 14) observes, "Indeed, Dubai has benefited immensely from the tolerant environment, and it owes much of its success to the openness that has been practiced since the UAE's founding. The autonomy it enjoys as part of the UAE's federalist-structured government also allowed its own rulers to make wise choices in governance."

Although it is not a democracy, the Emirates' economic and social policies are liberal by comparison to neighboring Middle Eastern countries and, not surprisingly, immigrants have been attracted to the member states for more than 100 years (Balasubramanian, 2010). According to Balasubramanian, "This influx of people has helped the emirate develop into a cosmopolitan city and has provided a steady stream of immigrants to the area, from wealthy international investors to ambitious young workers" (2010, p. 11). As a result, more than 80% of the UAE population consists of immigrants today (UAE, 2014). Wooldridge and Keino (2008) report that, "With an expatriate population of more than 80%, there is great diversity, including 19% Emirati, 20% other Arab or Iranian, 50% South Asian, and 8% East Asian or Western. The population is 96% Muslim. More than 90% of those living in the UAE are found in the cities" (p. 68).

Some indication of the enormous diversity of the UAE population can be discerned from the demographic data presented in Table 1 below.

Table 1 — Demographic Breakdown of UAE Population

Emirati (UAE citizens): 19% | Other Arab and Iranian: 23% | South Asian: 50% | Other expatriates (predominantly Westerners and East Asians): 8%

Source: Based on tabular data in UAE 2014 and Knapman 2012