Uae ; Cultural Differences

List of Abbreviations gross domestic crossroadGross municipal Product MASMasculinity PDIPower blank forefinger UAE stand together Arab Emirates UAI suspicion turning a focussing Index UK join Kingdom Table Of confine I. List of Abreviations II. thoughtion2 III. The joined Arab Emirates2 III. 1 History2 III. 2 Economy4 IV. Important determine for a boffo line of products in the UAE5 V. Culture7 V. 1 ethnical differences at the subject field level7 V. 2 hea because differences at the organisational level10 VI. Kuhne + N datel12VII. List of References14 II. Introduction In the current demarcation environment, in condemnations of globalization, financial crisis and terror, at that place is a ariseing consciousness more(prenominal) or less difficulties that female genitalia occur when opposite cultures collide. These difficulties particularly pauperization to be regarded when absent to expand a wrinkle supranation e precise(prenominal)y or wanting t o enter a foreign grocery store. In this paper the United Arab Emirates is analyzed with focus on critical in runation for in operation(p) a credit line there.This paper leave claim into account the bill, the ethnical aspects as soundly as differences, the transaction phylogeny and opportunities based on an suit of the German logistics comp either Kuhne & N terml, which is doing vocation in the UAE since the 70s. III. The United Arab Emirates III. 1 History The manage islands, The World, the Burj al Arab and the Burj Dubai and a nonher(prenominal) superlatives come to our under(a)standing when thinking closely the United Arab Emirates, nevertheless they merely represent the termframe since the 1990s. The UAE was founded in 1971.To unfeignedly understand the UAE and its culture it is central to get wind a look at the muniment and the developments before the foundation and the inunct. About 1500 old age ago the hatful in the Arabic neck of the woods were living in tribes, their lives were compulsive by the harsh natural conditions and drib fishing was the prevalent dedication1. The participation was precise(prenominal) important within the tribes and a blockheaded social family structure was demonstrateed. 2 At that date the Moslem Belief was introduced to the gulf percentage and is therefore deeply rooted in the write up and its culture. 3 As trade and plagiarization rose in the 18th and nine-spotteenth century the atomic number 18a became known as the Pirate Coast until the British navy launched several attacks on the pirate self-coloredholds to situate the trade. 4 This lead to the signing of 3 truce treaties in total, including the final treaty in 1892, which made them become the Trucial States and pr compensateting them from entering into dealinghips with any other country bargonly the United Kingdom (UK) as well as disposing territory to any genius besides the UK, in travel by for coastal protection and supp ort in facial expression attack of land5.The first stripping of oil colour in 19586 in Abu Dhabi, which guide to many oft time, was truly fortunate as the neighbourhood, which relied heavily on pearl fishing, precept the pearl market collapse among the First and Second World War. 7 The break by dint of of oil and the hence evolving wealth had a strong act on the save development of the atomic number 18a. When the British first announced their intention of withdrawing from the Arabian disconnectedness by the blockade of 1971, Sheikh Zayed lay in grand Turk Al Nahyan of Abu Dhabi immediately wanted to base closer relationships surrounded by the Arabic states. 8 He and Sheikh Rashid of Dubai, became the initiators towards an union of Arabic Emirates, including the Trucial States, Bahrain and Qatar. 9 Since no agreement could be reached between the nine and Qatar and Bahrain became self-directed, the rulers of Abu Dhabi and Dubai, Sheikh Zayed and Sheikh Rashid, dec ided to form a union between their emirates and later(prenominal) on present its constitution to the other 5 emirates with the offer to join. 10 matchless twenty-four hour period after the Britsh-Trucial Sheikdoms Treaty expired, the United Arab Emirates were founded on December 2nd, 1971.Four emirates joined immediately and Ras al-Kaihmah fol turn away-rankinged on Febuary 10th, 1972. 11 Since its foundation the UAE has go through an incredible growth and has managed to go from sensation of the least developed countries, to achieving an income level couple to that of the industrialized nations in less than 30 years. 12 The oil r scourues of course scram contributed in a major mode of flavor to the youthful development and prosperity, but too governmental stability as well as the leadership by Sheikh Zayed were truly influential. 13 The sheikh, who was born around 1918 and retchd under poor circumstances, wanted his muckle to get ahead from the countrys resources, while make sure that the sight atomic number 18 aw ar(predicate) of their roots and that the countrys history and culture argon kept. 14 through his efforts the Arabian culture has been preserved and passed on to the quest generation.He was very general non only within the nation but too in europium and the US out-of-pocket to his pro-western mentality. 15 His open-mindness too had a big solvent on the UAE and enabled it to become angiotensin converting enzyme of the nearly liberal and pluralistic countries in the Gulf region, with its now massively multicultural population. 16 When he died in 2004 his oldest son HH Sheikh Khalifa bin Zayed al Nahyan became the ruler of Abu Dhabi and president of the UAE. 17 III. 2 Economy Since the oil was discovered the oil sector was the main contributor to the gross domestic product of the UAE. 18 However the country has berthily essay to dress its dependability of oil and to turn its economy. 19 The oil revenues were at first reinvested in to healthc be, teaching method and the national root word to raise the standard of living and pave the way for a sustainable economic development. 20 In 1985 the first free zona of the UAE was opened. In the Jebel Ali drop out Z sensation no taxes had to be paid and foreign companies could establish subsidiaries without a domestic partner. 21 The design of the free zone became very popular in the region and was the first step towards be an photogenic location for subsidiaries of companies that want to open up the nitty-gritty Eastern market.Today more(prenominal) than than 850 companies pack registered in the Jebel Ali Free Zone and close 6,000 companies from over 110 countries conduct craft there. 22 All in either more than 10,000 companies atomic number 18 registered in one of the 15 free trade zones in the UAE. 23 ascribable to the geographical location of the UAE in the affectionateness East and between the markets in the east, whose magnifi cence to the western companies has been steadily rising, and Western Europe the United Arab Emirates has become the hub for the complete Middle East, India, Afirca and the Commonwealth of Independent States. 24 This development is especially overt in Dubai, which has evolved with over cxl scheduled fairs into one of the top locations for international trade shows and multilateral negotiations. 25imputable to the booming twisting industry and tourism after 20 years of budget deficit there has been a balance surplus since 2005. 26 The GDP in 2007 grew by 7,5% to 192,6 billion US$. 27 The United Arab Emirates now has one of the around diversified economies in the gulf region and managed to scorn its dependence on the oil industry to a GDP-contribution below one third, as sectors comparable manufacturing, wholesale and retail trade, tourism, construction and real estate change magnitude their sh are. 28 IV. Important determine for a palmy business in the UAE To successfully p ass a business in the UAE it is mandate that certain basic values of the Arabian culture are known and respected. 29 One has to aware of his own culture and trigger from the wrong and right thinking of rong or right and better or worsened when it comes to cultures, as cultures are just contrary without any judgement. 30First of all one requirementfully to be aware that time is seen in a totally various way in the Arab public and is non assumeed to be an issue. Business wagerings and negotiations take longer, masses are non as punctual and deadlines are frequently not met. 31 Since personalised relations are of higher(prenominal)est splendor for a successful business it is crucial, when first entering into business relations with people from the United Arab Emirates, to establish a trus iirthy and respectful relation, much like a friendship. 32 The first opposite meetings are commonly time captivating and used to become acquainted with the prospective duplicate. 33 Impatience or anger because of the often lengthy process should not be expressed as it would be conceived as rude and disrespectful possibly tether frustration of the business relations. 34 Business meetings broadly speaking take longer in the Arab land as at the beginning time is unremarkably spent on inquiries on the well-being of the family members. 35 A strong performance on the business practices has the apparitional faith.The working hours are for example interrupted for praying36 and during the enured apart month of Ramadan overall business slows pop out in the Arabian area. 37 In sane business practice the godliness as well comes into play, inasmuch as approximately decisions are left(a) to fate. 38 Therefore negotiations might end with the term Inshallah if God wills, which underlines the strong mental picture that the course of events cannot be controlled by the individualistic meaning that the decision will be made by god and not by them. 39 One of the h ighest values in the Arabian culture is the belonging to conventions, especially the family. 40 Family matters are of higher significance than business41 and interruptions of e. g. business meetings imputable to family and personal matters are no expulsion and should not be misinterpreted as rude.42 Since age also plays a fundamental role in the Arabian culture, peachyer respect must eer be shown to the more elderly person, by e. g. greeting the most senior person in a meeting first. 43 Often age and status has a capitaler influence on the career of an Arab than the actual personal achievements. 44 The interaction with women is not incessantly unreserved and therefore the conduct of the Arabs in the slip should be adopted in scathe of how to greet a woman for example. 45 When negotiating and also in normal interactions with Arabian counterparts the concept of scrimping pose needs to ever be kept in mind. review should not be expressed publicly and one should avoid to p ut anyone in a uncomfortable situation, since it could result in loosing face which seriously harms the persons and his familys temperament. 46 Dignity and respect are discern elements in Arabian culture and saving face, through the use of compromise, patience and sobriety is a means by which these values are maintained. 47 Since confrontation and conflicts are to be avoided in the Arabian culture business communication is do differently. Arabia has been place by Edward T. Hall as a high context region where one has to demo between the lines in contrast to Germany with a low context country where explicit words ingest specific meanings48.A yes for example may mean a by chance as the Arabs often communicate in without delay through body language or other forms of non-verbal communication like eye-contact or facial cues kind of than communicating directly through words. 49 As, one should be aware of the so called High Context chat50 and try to carefully observe his counterpa rt during a conversation and always correct prudence to the way the complete substance is conveyed. 51 Management in the UAE is in the main done through centralized decision qualification and tall hierarchies. 52 Employees in the UAE expect to give clear instructions and orders from their superiors, alternatively than having the freedom and the responsibility to manage their own work. 53 Due writeity being an element of the Arabian culture, the orders are normally obeyed and only rarely questioned. 54 V. Culture V. 1 Cultural differences at the national level The biggest difference between the German culture and the culture in the United Arab Emirates obviously is the religion. Religion in Germany exists and is practiced, but not in an utmost comparable to the United Arab Emirates.The culture in the UAE can be defined as the Arabian Culture as it is mostly the same in all Arab nations with some local differences and is mainly influenced by their history and even more t heir religion. 55 Arabs living in the United Arab Emirates are well-nigh all Muslims and believe that the Islam is not only a religion but a way of living. 56 Their God Allah controls their stallion life and even the rightfulness called Sharia is partly crap on the Holy Koran. Praying five times a day as well as drinking no cloudburst drinks, eating no pork and refrain during the holy month of Ramadan is usual Islamic behavior. 57 Where as in the UAE religion dictates to a large extent the life of the people, in Germany to the contrary, religion is practiced as well, but its done in a considerably more relaxed way. 58 The most popular religion in Germany is Christianity, but Islam, Judaism and Buddhism are among other practiced as well. 59 correct though a majority of the Germans consider themselves as Christian, it has only minor personal effects on their lives. 60. The way people eat, discerp or be catch is rather set by themselves and their parental education than by thei r religion.The Christian calendar defines the national holidays like Christmas and Easter and the day of remnant being Sunday. The festivities of Christmas and Easter are celebrated in most of the Christian families, but on the normal every day life religion has almost no effect, compared to the United Arab Emirates. 61 The calendar in the UAE is also influenced by the religion, as the Muslim New socio-economic class is around February and March and Ramadan in October. 62 as yet the weeks are separated differently, since Friday is the day of rest and either Thursday or Saturday is attached off respectively to form the weekend. 63 The Islam also has influence on the way Emiratis cast off to dress. Women fool to wear the traditional abaya, which is a garment that covers their whole body with exception of the feet, hands and face. They might even halt to cover up totally, depending on how strictly the husband practices his religion. 64 Men are need to wear a white cotton plan t thobe at with a guthra covering the head. 65Leaving out the religious influence on the people in the UAE, Arabs are very unprogressive as it is. Emotions and feelings towards each other are not openly expressed in public, as they generally try not to attract any precaution. 66 This behavior and compel for privacy can also be found in the way the houses are built, as a dowery of length between buildings and thick walls are preferent and used to clearly slide by the family inside(a) and leave the rest out. 67 The family in the privileged is of highest importance to the Arabs and stands over everything. Family members are very loyal and close to each other, which has originated from the past. 68 traditionally the commence is the head and leader who provides the family with what is undeniable for living. 69 Although nowadays the situation s behind changing and women gain e. g. opportunities in regards of education and are not as dis reinforcementd anymore, the role of th e woman still predominantly includes winning care of the children and the house as well as being the refer for love and emotional support. 70 Additionally women are still case-hardened differently by the law.71 German family members also live closely together and parents are very lovingness for their children, but at the same time statistically every third German marriage fails and commonly children have to grow up in different foots. 72 in the main men and women are more equal in Germany in terms of the law as well as in terms of family. The man is not the mold head of the family, as the power is more or less equally separate between the father and the mother. 73 The role of the father as the sole provider is late diminishing as more and more women work and have careers even though men yet have to get used to the concept of staying at home to take care and raise the children. 74 Similarities in the development towards equality can be seen in both(prenominal) countries, a lthough Germany seems to be a little bit further than the UAE.Like the family, the community is also of high importance to the Arabs. Relatives, friends and neighbors always support each other in every life situation, while one cares for each other and the community. They are usually very patient and open to compromises, as conflicts or embarrassment are avoided. 75 Criticism is not openly expresses because they do not want anyone to feel inconvenient or harm their dignity, because it could lead to person loosing his face. 76 To keep face is very important and if someone lost face there would be a strong impact on the familys reputation. 77 Guests are also always taken care of very generously, since the Arabs are known for their hospitality.78 Such a strong community cannot be found in Germany, where the people are more independent and concerned of their own good. 79 Germans behave very differently and are a lot more individualistic. People are in the main concerned about themselv es and secondly about others. 80 There is no concept of care face and therefore conflicts are common, issues are openly addressed and discussed. Germans can be emotional and loud publicly hostile the people living in the Arab world. 81 Their bareness for new-made things is also more trenchant and attracting and standing in the middle of attention is not regarded as improper behavior in contrast to the conservative Arabs. 82 another(prenominal) big difference is the outwards sort of the people in Germany to the people in the UAE since there is neither a predefined sorting of clothing nor any limit to the individuation due to the constantly changing devise trends and styles. 83 V. 2 Cultural differences at the organisational level To show the differences between the two cultures of Germany and the UAE at the organizational level Hofstedes epitome is a good actor to apply.The Dutch professor and influential author Gerard Hendrik Hofstede performed from 1968 to 1972 a survey among 116,000 IBM employees about their preferences in management style and working conditions. 84 Through his study he demonstrated that the behaviour of societies and organizations are affected by national and regional cultural groupings. Out of the results Hofstede identified the four ratios called Power Distance, Uncertainty Avoidance, personal identity/Collectivism and Masculinity/Femininity among which the different groups can be differentiated. 85 The first dimension Power Distance is defined as the extent to which less powerful members of institutions and organizations experience unequal dissemination of power. 86 In the Arab world, which includes the UAE, a high Power Distance Index of 80 points has been recorded, meaning that people head for the hills to follow orders without hesitation and organizations have a rather steep hierarchy. It can also be said that there are a lot of laws, rules and regulations that have to be followed to reduce the amount of uncertainty. 87 The Power Distance Index in Germany is considerably lower than in Arabia with 35 points. Hence Germans have fewer superiors and their orders are more apt(predicate) to be question than it would be the case in Arabia. Subsequently unequal distribution of power is not unconditionally accepted, the organizational structures are much flatter and change decision making is common applied. 88 The Uncertainty Avoidance Index describes the level of rawness people feel in precarious situations and the intuitive feelings and means like organizations and institutions that were developed to reduce the uncertainty. 89 In this dimension the UAE and Germany are almost at the same level. 90 Both countries have adopted and implemented strict rules, laws, policies, and regulations to avoid those uncertain situations. A high need for security, structured activities and a strong belief in the knowledge of experts mutually applies as well. 91 The way of conducting business though differs, since t he Arabian way is affected by their religious belief. They believe their time is controlled by Allah and that they have no influence it.Long talks with lots of coffee and tea are very common in a business meeting and should not be refused, whereas Germans certainly belief that they control their time themselves and are usually on tight schedules and have fixed dates which they administrate. 92 Germans are even notable for creating appointment schedules and seemingly never missing them too. The third dimension is the Collectivism and personal identity (IDV) respectively. This dimension displays whether people rather take care of themselves or other people around. 93 The Arabs have a very low IDV score of 38 points compared to the world second-rate of 64 points.This makes the UAE a collectivistic country, where a strong relationship to the member group is very important. That is e. g. the family offering life-long protection and loyalty, which is preceding to all other rules. 94 This translated into business as most jobs and promotions are obtained due to age and family status. In Germany to the contrary the IDV score of 67 is relatively high and above the world second-rate, meaning that it is an individualistic country. People rather take care of themselves in stead of others and e. g. job promotions are based on ones own efforts and market value rather than the family background. 95 In the cash in ones chips dimension the Masculinity Index (MAS) shows the peoples preference for male values like competitiveness, sureness and materialism.96 The MAS of 53 in the Arab World is slightly above the average of 50,2, but still 13 points lower than in Germany, which means that Arabians prefer both masculine and feminine values. 97 They like authority and materialism, while valuing quality of life and relationships at the same time. Germans are mostly masculine in this respect and value especially competition, power and high salaries. 98 Considering the results of Hofstedes analysis it can be said that religion and tradition have a great influence on the way business is done in the UAE and that there is a fast differences to the Germany, which can not be neglected when doing business. VI. Kuhne + Nagel Kuhne + Nagel is a German logistics company, which was founded in 1890 in Bremen by August Kuehne and Friedrich Nagel.99 Since then it has evolved from a traditional international consignment forwarder to a globally leading menu and logistics provider offering merged turn in chain solutions. 100 The company today has 850 mights inover 100 countries with more than 54,000 employees. 101 Their concept of helping to turn the customers logistic challenges into a competitive advantage through superior do and integrated end-to-end issue chain management solutions has been successful and still is. 102 Kuhne + Nagel has entered the market of the United Arab Emirates in 1977103, when an office was conventional in Dubai. 104 For internationally operating logistic companies a global network of representations is very important in order to guarantee a smooth transit of goods.That way in case of any problems the local office can cope with it and is familiar with standards and processes at that location. Like in most Arab countries, a subsidiary can only be established with a domestic friend or partner. 105 Therefore the office in Dubai was not owned by majority by Kuhne + Nagel and there was not a lot of business actually taking place in the UAE, but an increase number of goods passed through, thus the office was at first mainly used for enter support. 106 Kuhne + Nagel also moved their office to the Jebel Ali Free Zone and could thus conduct their business independently.With the increasing business activities in the UAE, the sleeve office in Dubai gained in importance as well. In 2008 there were great hundred employees in three Dubai offices, which makes Kuhne + Nagel the 7th biggest German employer in Dubai. 107 Since t he company had already established many offices in other countries they are experienced in dealing with different cultures and mentalities. They have always been aware of the cultural differences between e. g. Germany and the United Arab Emirates and paid attention and adjusted to them.As Germans though they enjoyed good reputation and made only positive experiences in making business with the Arabian people as long as they were treated respectfully. 108 With the hotel industry booming, Kuhne + Nagel introduced in 2001 an innovative product containing a tailor-made logistics solutions associated with the construction and furnishing of hotel and holidaymaker facilities. Apart from warehousing, the service portfolio further includes the entire management of suppliers and transport. 109 In 2005 this service was even deepened as firstly introduced to the hotels in the UAE by Kuhne +Nagel, which includes supplying amenities to hotels on a regular basis. 110 Kuehne + Nagel is responsible for the entire supply chain, including order management and procurement. Due to its great acceptance the global availability of this service followed in 2006. 111 The general trend towards befitting the hub of the Middle East, makes the location Dubai logistically even more important. 112 The success of Kuhne + Nagel in the UAE is also displayed through the plans of the company to expand its logistic infrastructure as part of the Dubai Logistics City adding about 52,000 m2 to its existing facilities in the Jebel Ali Free Zone. 113This new logistic centre will drop by the wayside the company to optimally provide all the markets in the Middle East and meet the increasing storage requirements of many companies due to the relocating of their stock to the Middle East rather than supplying the area from Europe or Asia in order to reduce their be and delivery time. 114 VII.