Dubai and Western Culture

The Economy of Dubai and the UAE

The economy of Dubai and the UAE are primarily establishment on oil and natural gas revenue. Both places have been classified in the top ten countries with biggest oil reserves globally. A federal government rules the UAE with particular powers set aside for all member nations and Emirates. Both places have an open market economy which permits the prices of goods and services to be established making do with a free price structure. Dubai has been quite enticing to investors, which has enabled it to be a worldwide city with well over two million people. The cultural diversity introduced by this population in addition to it's vantage position has formed the business culture for the country.

The Western Economy

On the other hand, the western economy is majorly built on production and manufacturing industries. The West is a major producer and transports finished products and services to other countries. The countries in the West have been ranked among the top globally in production especially in the automobile industry, phone, and other finished products. The Western countries are run by a federal government, which is governed by a president who is the head of nations. A market economic system operates majorly in the West. The government in the countries does not control essential resources, goods, and major segments of the economy. Buyers and sellers determine all the running of the economy, the forces of supply and demand (Neuwirth, 2012). Most of the companies in the west belong to the Western people. However, in the recent years, there has been an influx of investors, especially from Asia. It is because Asian countries have increased their business potential and this makes partnerships convenient business models. The West is also well endowed with many ethnicities and many immigrants. Therefore, the entrepreneurial culture of the West is more diverse as compared to that of the UAE.

Likely Misunderstanding between Western Visitors and the People in UAE

The World Expo 2020 aims at creating business relations between the people of the West and those of the UAE. One misunderstanding that is likely to come up is the time that business deals may take to create (Bains, 2012). The people of the West have grown up in a culture with many ethnic backgrounds, and therefore they have learned how to build friendships and build trust fast. Arabs, on the other hand, have little interaction with people from other ethnic backgrounds, and therefore they are very cautious when building trust with them primarily financial related. The Western visitors should consider the likelihood that business deals may take longer to establish than what they are used to. The conflict here will be the amount of patience that the people of the West can demonstrate in a bid to understand both the business and social life of the residents in the UAE.

Advice to a Western Company that is considering doing Business for the First Time in UAE

The World Expo will open up the UAE for business especially from western multinationals (Bargiela-Chiappini, Nickerson, & Planken, 2013). However, it is important for these companies to be careful when choosing their local partners in the UAE. Arabs are charming people, especially when doing business. Therefore, they are likely to be fascinated by the partnerships and Memoranda with Western companies. However, the local businesses will have expectations from these enterprises. Since the UAE is opening up for world business for the first time, these companies will expect that the Western multinationals will drive the support for their products and services in their home country. Such partnerships may become expensive and difficult to manage for the new Western companies. Therefore, Western companies should avoid them and use better methods of collaboration such as intellectual and commercial synergy. The companies should look for businesses in the UAE, which are operating in the same industry. They should then find ways in which they can create a partnership that compliments each other. Some of these ways may include financial help, technology advancement, human resource expertise, better product features amongst other factors. Such strategic partnerships will make it easy for the new Western companies in the UAE to control its activities in a foreign land.

Dubai's Economy and Cultural Integration

Dubai attracted many investors from abroad between 2002 and 2007 (Thomas, 2016). The economy of Dubai at this time was mainly built on revenues from the oil industry and natural gas. However, at around 2010, the oil reserves began to decrease significantly, and they are expected to diminish in the next 20 years (Christensen, 2011). The country experienced some financial problems such as budget deficits and had to ask for aid from other nations especially Abu Dhabi. However, despite this recession, the multiple businesses that had been opened up in Dubai continued to experience significant profits. Most of the businesses had taken the time to understand the culture of the people living in Dubai, and therefore they continued to experience huge sales. Dubai is still considered one of the most convenient countries in the Middle East to start a business. It also has more than two million people living there, and this has ensured that there is a cultural integration. Therefore, cultural similarities can override the differences when people are doing business together. The companies only need to be open to diversity and take the time to understand each other's cultures.

References

Bains, E. (2012). A Guide to Doing Business in the UAE. Dubai: Meed Media Publishers.
Bargiela-Chiappini, F., Nickerson, C., & Planken, B. C. (2013). Business Discourse. Houndmills: Palgrave Macmillan.
Christensen, S. (2011). Dubai. Chichester: John Wiley Publishers.
Neuwirth, R. (2012). Stealth of Nations: The Global Rise of the Informal Economy. New York: Anchor Books.
Thomas, G. (2016). Dubai. London: Rough Guides Limited.