16 Jun 2022

336

Business Culture in the UAE and the USA

Format: APA

Academic level: College

Paper type: Research Paper

Words: 2564

Pages: 10

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Introduction 

Organizational culture is defined as a pattern of beliefs norms, values, and attitudes that influence behaviour within an organization (Sweeney & McFarlin, 2017) . Socio-cultural factors play an important role in shaping the consumer values, lifestyle and beliefs as well as business approaches and norms (Ahmed & Rafiuddin, 2018) . Both the USA and the UAE have a distinct business culture which has influenced the growth and ease of performing business in the country (Berger et al., 2018) . This paper analyses the business culture and environment in both countries to assess the differences. The paper aims to find out how communication, manner, and customs, values and attitudes, religion, ethics, social structures, and organizations compare with US culture and business from the UAE . The paper will also discuss the implications for US businesses that wish to conduct business in the UAE based on the business cultural analysis. 

Business norms and approaches 

The UAE has become a global business center for both local and foreign companies. Foreign companies need to study the Arabic culture and the ways of conducting business in the Arabian business environment (Berger et al., 2018) . The presence of foreign companies in the UAE may bring distinct advantages all over the world. It provides the company a chance to make contacts research the market prospects, liaise with customers including getting information about any business process (AlMazrouei & Pech, 2015) . The presence of foreign companies in Arab countries such as the UAE provides considerable business advantages. Businessmen in the region keep close contacts and prefer to deal with people they know. Trust and personal relationships are much more important in the UAE than in the USA. The business approaches between the USA and UAE are different. Companies in the UAE are most likely a family affair although this trend is rapidly changing particularly in large businesses (Sonfield et al., 2016) . In the USA, companies may are not family affairs because they operate and conduct business differently (Sonfield et al., 2016) . In UAE companies, although initial meetings may be held with lower level, the head of the family always makes the final decisions. This shows that UAE companies use and are run through an autocratic form of leadership style. This is in stark contrast to the business norms in the USA. Most companies in the USA are run through a democratic style of leadership. Decisions in these American companies are made collectively through meetings from the low level to top level of management (Sonfield et al., 2016) . American business culture also emphasizes the relationships between enterprises including the relationships between the employees. American attitude towards business is always positive. Their business culture encourages the offering of best service available service for every customer. The business philosophy of American company is that customers should be the center of business. The purpose of this business attitude is to ensure the company maximizes its profits. 

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Working Hours 

The business working hours in the UAE is between Sunday and Thursday (Walsh, 2018) . Friday is considered a holy day in the UAE, and the official weekend is Friday and Saturday. Smaller companies in the region are closed only on Fridays. Larger companies are open every-day of the week while government offices are open during the week. During Ramadan, activities in the companies are accomplished either later in the evening or in the early hours of the morning (Martin & Terc, 2016) . In the Ramadan period, working hours are shortened by two to three hours. The business working hours in the USA is between Monday and Friday. The official weekend in the USA is Saturday and Sunday. Larger companies are open every-day of the week while government offices are open during the week. During public holidays in the USA, activities in the companies are accomplished in the early hours of the morning or working hours shortened by two to three hours. The religion of Islam shapes the national culture in the UAE. However, other religions are also respected whereby temples and churches can be found alongside mosques. The form of dressing in the country is not compulsory. Most males in the UAE prefer to wear an ankle-length white shirt which is known as a Kandura. Most Emirati women prefer to wear a black over-garment that covers most parts of their body which is known as an Abaya (AlMazrouei & Pech, 2015) . This attire is well suited for the hot and dry climate of the UAE. However, the western style of clothing is dominant due to the large expatriate population. 

Manners and Customs 

People in the UAE value courtesy and good manners (Walsh, 2018) . Punctuality and time management is not considered a virtue in the country. However, it is always better to arrive on time. Since most companies are family owned, business meetings and conferences may start a bit late. Also, Islam religion contributes to meetings starting late as most workers go for prayers. Therefore, US businesses that wish to operate in the USA should avoid placing meetings during prayer times and major Muslim holidays (Oudah et al, 2018) . The Arabic culture stipulates that when meeting a group of people, senior people should be greeted first (Oudah et al, 2018) . This norm is also practiced in the business setting. In addition, it is considered polite to accept refreshments which are always offered in Arab offices. The refreshments are normally coffee or tea in the business environment. Refreshment breaks and time is taken as a good opportunity to communicate and establish important relationships. Business meetings normally take place in a restaurant or hotel and can be conducted over a lunch or dinner (Aslani et al., 2016) . In the UAE, hospitality is a way of life and thus it is polite to return the invitation. The meeting can be interrupted by telephone conversation or other guests. Also, a tough business approach is not welcome in the UAE (Martin & Terc, 2016) . Also, the American culture stipulates that when meeting a group of people, senior people should be greeted first. This norm is only practiced in the business setting. However, greetings and recognition can be extended to young successful individuals and innovators. In addition, it is considered polite to accept refreshments which are offered in American offices. The refreshments are normally water, coffee or tea in the business environment. Refreshment in the USA business setting is taken as a good opportunity to communicate and establish important relationships. Business meetings in the USA may take place in a restaurant or hotel or in organizations offices. These meetings can be conducted over lunch or dinner (Aslani et al., 2016) . Meeting in the USA are not interrupted by telephone conversation or other guests unless the issue is based on the security of the individuals in the company. There is a need for patience when conducting business with companies in the UAE. The culture demands positivity and therefore most companies are usually indirect when conducting business. Mutual agreements are bonding in the UAE. It is expected that every businessperson honors the agreements and bonds by performing accordingly once a deal is made (Aslani et al., 2016) . A person should be dressed conservatively during business meetings (Aslani et al., 2016) . Men are supposed to wear a suit while women should wear clothing that covers arms and legs. Also, in the USA mutual agreements are signed and become legally binding. USA culture is vigorous in nature and tends to go to achieve major objectives. The business culture is not afraid of innovation and improvements in the business structure. In meetings, the USA business culture does not demand a certain type of dress code depending on the organization. The only requirement is that employers maintain a level of professionalism and dress decently to those meetings. 

Language 

The official language of the UAE is Arabic (Walsh, 2018) . However, English, French, Russian, Hindi and more languages are widely spoken in many places. This is accredited to a large number of the expatriate population in the country. However, the state's business language is Arabic. All official forms, documents, decrees, laws, government forms, and official contracts are in Arabic (Martin & Terc, 2016) . Therefore, it is important to have knowledge of the Arabic language because it is part of the business culture. 

American and UAE Business Social Structures 

One of the basic features of American culture is the idea and view of humanism. They can accept the diversities from people and therefore no aspect of discrimination. American companies focus on different ideas and accept new ideas about their business affairs (Sweeney & McFarlin, 2017) . The business environment is endowed with incentive measures to encourage their employees. Individualism is at the core of American business and organizational culture. Business entities encourage individualism infused with adventurous thoughts and continuous innovation to drive the organization forward. It is one of the main characteristics of healthy business culture in the USA. People are allowed to have their own rights and opinions. In the UAE, people follow the rights and opinions of their employers. Businessmen in the region keep close contacts and prefer to deal with people they know. Trust and personal relationships are much more important in the UAE than in the USA. The business approaches between the USA and UAE are different. Companies in the UAE are most likely a family affair although this trend is rapidly changing particularly in large businesses. In the USA, companies may are not family affairs because they operate and conduct business differently (Sonfield et al., 2016) . In UAE companies, although initial meetings may be held with a lower level, the head of the family always makes the final decisions. The UAE companies are run through an autocratic form of leadership style. Most companies in the USA are run through a democratic style of leadership. American business culture also emphasizes the relationships between enterprises including the relationships between the employees. The American attitude toward business is always positive. Their business culture encourages the offering of the best service available service for every customer. The business philosophy of American companies is that customers should be the center of business. The purpose of this business attitude is to ensure the company maximizes its profits. American business culture also focuses on practicality. It is through practicality that the spirit of teamwork is encouraged as a requirement for employees. 

Implications for US Business 

Personal relationships are important for doing business in the UAE. It is important for US companies to have a face-to-face business dialogue with their UAE counterparts when conducting business (Kassem et al, 2017) . Also, it is essential to obtain financial, legal and taxation advice including undertaking necessary research when considering entering the UAE market (Ahmed & Rafiuddin, 2018) . The companies should target the right people in their contacts to achieve a foothold in the market (Kassem et al, 2017) . US companies must establish new business contacts which would enable them to acculturate into the new market. These contacts can be achieved via exhibitions, an introduction by a mutual contact, networking receptions or through Overseas Market Introduction Service (OMIS) (Ahmed & Rafiuddin, 2018) . Also, business contacts can be established through the UAE Embassy whereby the company is introduced to the most appropriate contact and an appointment confirmed on behalf of the company. 

Face-to-face meetings are the preferred means of customer contact as emails and phones are sometimes seen as impersonal. Appointments in the UAE are made in advance, preferably two weeks before the actual meeting and confirmed early as priorities may change. Companies that want to enter the UAE market should also take part in exhibitions as it is part of their business culture. The exhibitions form a good opportunity where companies meet potential clients, partners, and distributors. Also, they help in assessing the local and international markets for their goods and services. The companies must also establish personal contact with existing and potential clients and partners (Kassem et al, 2017) . They should approach the business environment having the appropriate knowledge hence they should consult a lawyer prior to signing an agreement to working in the UAE. 

According to Hofstede every country in the world is different due to its unique cultural components. It is important for US companies aspiring to enter the UAE market to study the different elements of their culture and understand their behavior. The implication of the study is to understand the native people and learn how to interact with them in a business environment (Wang et al., 2017) . Hofstede’s model of cultural differences is therefore crucial because it serves as a framework for international business and cross-cultural communication. The USA and UAE business culture can be compared using Hofstede’s dimensions. These dimensions include power distance, masculinity versus femininity, individualism versus collectivism, uncertainty avoidance, indulgence versus restraint and pragmatic versus normative (Chien et al., 2016)

According to the cultural analysis of Hofstede, the Muslim faith plays a great role in people's lives in the UAE. The predominant characteristics for this nation are uncertainty avoidance as well as large power distance. Arab society is more traditional as well as more formal than Western society (Chien et al., 2016) . Therefore, it is vital for US companies to understand the different rules of etiquette in the UAE before doing business. The people in this country are very friendly and social. They are usually interested in their guests and always desire to know them better. It is expected that in the business environment, US companies become interested in local companies and people to enhance their chances of survival (Wang et al., 2017) . Uncertainty avoidance and the large power distance shows that the UAE is more likely to follow a caste system. This system does not allow its citizens to have significant upward mobility. The country's governance and business systems are therefore plundered with laws, controls, and regulations (Wang et al., 2017) . These rules aim to reduce uncertainty and therefore US companies with an intention to operate in the UAE must prepare to abide by the rules. Also, there is a wide gap inequality of wealth and power which leads to stiff competition for resources (Chien et al., 2016) . The implications of this are that US companies must expect stiff competition from rival companies because only the strongest company has the ability to survive in the volatile market. 

Conclusion 

Organizational culture is defined as a pattern of beliefs norms, values, and attitudes that influence behavior within an organization (Sweeney & McFarlin, 2017) . The presence of foreign companies in the UAE may bring distinct advantages all over the world. It provides the company a chance to make contacts research the market prospects, liaise with customers including getting information of any business process. The paper has found out that s ocio-cultural factors play an important role in shaping the consumer values, lifestyle and beliefs as well as business approaches and norms. Both the USA and the UAE have a distinct business culture which has influenced the growth and ease of performing business in the country. The paper finds out that there is a difference in communication, manner, and customs, values, and attitudes, religion, ethics, social structures and organizations between the US culture and business from the UAE . This difference has an implication for US businesses that wish to conduct business in the UAE based on the business cultural analysis. The UAE has a diverse and multi-cultural society because 80% of its population is expatriates (AlMazrouei & Pech, 2015) . This means that the UAE is considered relatively liberal within the region. It provides restaurants, schools and cultural centers that cater to other international cultures. The religion of Islam shapes the national culture in the UAE. However, other religions are also respected whereby temples and churches can be found alongside mosques. The form of dressing in the country is not compulsory. Most males in the UAE prefer to wear an ankle-length white shirt which is known as a Kandura. Most Emirati women prefer to wear a black over-garment that covers most parts of their body which is known as an Abaya (AlMazrouei & Pech, 2015) . This attire is well suited for the hot and dry climate of the UAE. However, the western style of clothing is dominant due to the large expatriate population. This practice has gained popularity among Emiratis. Also, people in the UAE value courtesy and good manners but punctuality and time management is not considered a virtue in the country. The business working hours in the UAE is between Sunday and Thursday. Friday is considered a holy day in the UAE, and the official weekend is Friday and Saturday. During Ramadan, activities in the companies are accomplished either later in the evening or in the early hours of the morning

References 

Ahmed, G., & Rafiuddin, A. (2018). Cultural Dimensions of Economic Development: A Case of UAE.  Theoretical Economics Letters 8 (11), 2479. 

AlMazrouei, H., & Pech, R. J. (2015). Working in the UAE: expatriate management experiences.  Journal of Islamic Accounting and Business Research 6 (1), 73-93. 

Aslani, S., Ramirez ‐ Marin, J., Brett, J., Yao, J., Semnani ‐ Azad, Z., Zhang, Z. X., ... & Adair, W. (2016). Dignity, face, and honor cultures: A study of negotiation strategy and outcomes in three cultures.  Journal of Organizational Behavior 37 (8), 1178-1201. 

Berger, R., Silbiger, A., Herstein, R., & Barnes, B. R. (2015). Analyzing business-to-business relationships in an Arab context.  Journal of World Business 50 (3), 454-464. 

Chien, S. Y., Sycara, K., Liu, J. S., & Kumru, A. (2016, September). The relation between trust attitudes toward automation, Hofstede's cultural dimensions, and big five personality traits. In Proceedings of the Human Factors and Ergonomics Society Annual Meeting  (Vol. 60, No. 1, pp. 841-845). Sage CA: Los Angeles, CA: SAGE Publications. 

Kassem, R., Ajmal, M. M., & Khan, M. (2017). The relationship between organizational culture and business excellence: a Case study from the United Arab Emirates. In Organizational Culture and Behavior: Concepts, Methodologies, Tools, and Applications  (pp. 732-751). IGI Global. 

Martin, W., & Terc, M. (2016). Family Business and Islamic Business Ethics. In the United States Association for Small Business and Entrepreneurship. Conference Proceedings  (p. FU1). United States Association for Small Business and Entrepreneurship. 

Oudah, M., Jabeen, F., & Dixon, C. (2018). Determinants linked to family business sustainability in the UAE: An AHP approach.  Sustainability 10 (1), 246. 

Sonfield, M. C., Lussier, R. N., & Fahed-Sreih, J. (2016). American versus Arab/Islamic family businesses: The use of non-family-member higher-level managers.  Journal of Entrepreneurship in Emerging Economies 8 (1), 2-24. 

Sweeney, P. D., & McFarlin, D. (2017).  International organizational behavior: Transcending borders and cultures . Routledge. 

Walsh, J. (2018).  UAE-Culture Smart!: The Essential Guide to Customs & Culture . Kuperard. 

Wang, M., Rieger, M. O., & Hens, T. (2017). The impact of culture on loss aversion.  Journal of Behavioral Decision Making 30 (2), 270-281. 

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StudyBounty. (2023, September 14). Business Culture in the UAE and the USA.
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