Market Spotlight:
United Arab Emirates
The World Bank’s Ease of Doing Business Score for the United Arab Emirates is strong, with a result of 16/190 economies and has improved by ten points since 2020.
Access to advanced technology, lower taxes, a reliable judicial system, access to business licenses, lenient compliance requirements, the deregulation of the real estate market, and low-cost electricity all contribute to why UAE has become a popular business destination.
The Emirati are generally friendly and welcoming to foreign visitors (business and tourists). Conducting business in the UAE is typically more formal than in Western cultures. Professionals are encouraged to greet the eldest person in your host delegation first and address them formally with “Mr.” or “Ms.” during your initial meeting. “Small talk” and pleasantries are often customary at the beginning of a meeting but one should never discuss politics or religion.
Many locals dress in traditional clothing for business meetings. While expats are not expected to adopt the local dress, they should wear modest, formal attire. Offering a gift from your home country would be well received by your hosts during your first meeting.
The UAE is one of the most proficient English-speaking countries in the region, according to Education First. Professionals visiting the UAE should have a high degree of comfort communicating with their trading partners and presenting them with business materials in English.
Labor costs are relatively low in the UAE, due to high number of foreign laborers living there to satisfy the demand for labor that cannot be met by domestic workers.
According to the World Bank, the UAE has shown recent signs of economic recovery fueled by a successful COVID vaccination program and reduction in OPEC+ oil production costs.
After a contraction of real GDP in 2020, due to slowdowns related to the global pandemic, the business outlook for UAE is bright and stable. Near-term growth depends on the recovery of global trade and demand for oil, along with the risk of future variant outbreaks.
