|
|
|
Business
Business Profile
Business Profile Any recovery from shock waves of the terrorist attacks of 11 September 2001 has been put back in many respects by the US-led war on Saddam Hussein’s regime in Iraq in 2003. In recent years, Dubai has been increasingly using tourism as one way of decreasing its reliance on oil revenue, which now only accounts for 10% of the economy. Tourist numbers have been rising impressively over the last decade, with especially strong growth in the European market. Britain and Ireland combined make up the largest visitor numbers, enjoying a 27.8% growth in numbers to 454,378 in 2002. A recent World Tourism Organisation report stated that Dubai experienced the world’s highest growth rate of international visitors in 2002, at 31.1%. Spin-off industries also benefit from tourism, such as retail, with Dubai Duty Free announcing a record annual turnover of Dh1.1 billion in 2002, a 23% increase on the previous year. In January 2003, average room occupancy was riding at 89%, up 13% on the same period in 2002, although the 2003 war has hit the industry. As the second richest of the emirates, after Abu Dhabi, Dubai has one of the highest per capita incomes in the world. Unemployment is still at an official rate of zero. The unemployment rate for the UAE is considerably higher, at 12%.
The city’s main exports are crude oil, natural gas, re-exports, dried fish and dates. Oil itself plays a surprisingly small part in the emirate’s economic picture, with the 10% proportion of the economy a figure that the government hopes can be encouraged to fall further. Other sectors that are decreasing in economic importance are traditional small-scale industries, such as fishing, boat building, handicrafts and pearling, which now only make up a fraction of economic activity. Today, the main emerging industries are international trade, manufacturing, finance and other service-based industries. Dubai has always proved competitive in attracting inward investment, with the ‘offshore’ Jebel Ali Free Zone (JAFZA) one of the most spectacular success stories. The success of current massive projects, like the Palm Islands, depends as much on the regional geo-political situation over the coming months as it does on how well they have been planned and constructed. Residential plots have been snapped up on these man-made islands but interest from hoteliers has been more cautious.
The main business district in Dubai is around the World Trade Centre, on Sheikh Zayed Road. The Emirates Towers, as the tallest buildings in the Middle East, are one of the business hubs of the city. The focus looks set to shift in part to the new Dubai International Convention Centre (DICC), completed in time for the IMF and World Bank Conference in May 2003. Other major planned infrastructure developments include a revamped Port Rashid container port, the completion of a massive marina in Jumeirah and a new bridge over Dubai Creek.
Multinational companies and international organisations based in Dubai include Sony, Heinz, AT&T, Shell, IBM and General Motors. Etisalat is the only provider of Internet services within Dubai, exercising heavy control, with all sites accessed and monitored through the company’s proxy server. The Dubai Chamber of Commerce (tel: (04) 228 0000; website: www.dcci.org) is often helpful for foreign businesspeople.
Business Etiquette
It is a major faux pas to break certain conventions when doing business in Dubai. Smart conservative clothing is expected, despite the often soaring heat. Meetings could start late, since this is not frowned upon in Dubai and it should not be commented on. 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.
Meetings tend to start with plenty of preliminary chatting before moving onto the serious work, so it is essential for visitors not to rush in. Business meetings in Dubai are often seemingly casual affairs, in cafs or restaurants, although it is easy to be caught off guard, as the pace tends to quicken rapidly and deals are struck in a fraction of the time it can take in Western Europe. Friday is considered a day of prayer and rest, so meetings should not be scheduled for this day. Calls to Arab people should also be avoided on this day. Similarly, local people will not answer the telephone during siestas, which are usually taken between 1400 and 1700. Business hours are Saturday to Wednesday 0800–1300 and 1600–1900. Businesses run by Western staff might open Sunday to Thursday 0800–1700. Business socialising in Dubai can be quite formal. Lunch meetings are more common than evening meetings and visitors should note that sometimes business meals will be served at venues that do not serve alcohol. Asking for it may cause embarrassment and even insult.
With tensions high in the Middle East, visitors are strongly advised not to bring up political matters and, if prompted, to veer on the side of caution, not assuming any common beliefs or opinions.
|
|
Business