In this issue...

Interview
	Michael Drayton
State of the market
	Tanker update
	BIMCO update
	Dry bulk
	S&P
FFAs & FSA
	A new angle on FFAs?
	Oxford Analytica
Ice Class
	The ice ship cometh Will shipping’s ice age start to thaw, asks Clive Woodbridge
	Class societies Providing training for companies – and even competitors – is becoming a way of expanding services and winning new business
Cargo focus
	In short supply Oil demand growth is not enough to allay short-term tanker fears
	Doing business in the United Arab Emirates A thriving economy and well-regulation commercial environment make the United Arab Emirates an increasing popular choice for business
Regional focus
	South America The fast-developing oil and biofuel industries are driving the renewal of South America’s shipbuilding industry, but ports need to keep apace
Port focus
	Rotterdam Construction delays on the Maasvlakte expansion programme have finally been overcome. But will it be enough?
IT
	Getting into the flow A new computer application aims to streamline short sea supply chains and cut congestion throughout Europe
Maritime City
	Dublin Vision Coordination, determination and ambition will ensure Dublin’s success
Insurance news
	Insurance parlance ITIC
	Ship valuations
Out to lunch
	On the river The Baltic watches the Master Shipbroker take on the Thames Waterman in The port of London Challenge

A jewel on the Gulf

A thriving economy and well-regulated commercial environment make the United Arab Emirates an increasingly popular choice for business

At 37 years old, the UAE is among the youngest states in the world. But what it lacks in experience it more than compensates for in youthful vigour. The seven emirates (formerly known as the Trucial states), stretching the length of what was once called the “pirate coast” and encompassing the glittering city state of Dubai, have experienced booming growth in recent history. Since the discovery of massive oil reserves in the 1960s, the petrochemical industry has dominated the country, and despite successful attempts at economic diversification (in areas such as tourism and finance), oil still accounts for about 30 per cent of the economy. Today, the UAE boasts an enviable GDP, a well-regulated commercial environment, enticing investment opportunities, and a de facto absence of personal or corporate taxation (corporation tax is theoretically levied in some emirates, but is almost never enforced) – not to mention a prime trading coastline on the Persian gulf.

Those doing business in the UAE will encounter a heady mixture of a modern business environment and Arab culture and customs. The UAE enjoys a balmy climate in winter, while the summer months see temperatures climb to the late 40s, with humidity to match and even the occasional sandstorm. Perhaps understandably, the pace of business is more relaxed than Western business people might be accustomed to.

Getting in

Visitors from most Western countries can enter the UAE without prior arrangement – visas are obtained on arrival for nationals of the 33 “privileged countries”, whether your purpose is business or tourism. For UK and US nationals, a 60-day visa is free. For others, it will cost about 100 Dirhams (payable on arrival). For nationals outside the “privileged 33”, visa procedures are considerably more complicated and require sponsorship by a UAE resident or organisation – costs will vary. One main condition of all visa issuance is that your passport be valid for at least three months from your arrival date.

In the office

The main business centres in the UAE are the cities of Abu Dhabi and Dubai, both of them sprawling commercial metropolises. As in most of the Arab world, the UAE working week begins on Saturday and ends on Wednesday – Thursday and Friday are considered days of rest. Office hours tend to be 9.00 – 13.00, and 16.30 – 20.00, though in practice the working day tends to go later than this. Attitudes to time-keeping in the UAE are considerably more relaxed than they are in many Western countries. However, as a guest and a foreigner, it is expected that you will arrive on time for meetings. Face-to-face meetings are a vital component of the business culture, and Emirati businessmen place an emphasis on personal relationships.

The use of business cards is a widespread but not essential element of the business culture. You will usually be offered refreshments at a UAE office or home; this may consist of Western tea or coffee or more exotic options – a sweet milkless tea or Arabic coffee with cardamom (similar in strength to espresso, but with a very different flavour).

Culture matters

Although considerably more liberal than many of its neighbours in the Gulf region, the UAE is nonetheless an Islamic country and you should be mindful of this; dress conservatively and appropriately – smart trousers and a suit are probably ideal. You should also beware of suggesting meetings during prayer times or major Muslim festivals such as Ramadan or Eid. Also, refrain from asking specific questions about female family members – this is considered a very private matter.

Professional business women are a common sight in the UAE, and they can expect to be treated respectfully though they should take particular care to ensure that their arms and legs are not exposed. Confident and assured women are likely to find that they will encounter treatment little different from their male counterparts in business situations. Outside these situations Western women face no particular dangers, but may be seen as something of a novelty and may find themselves the focus of unwanted attention.

Of particular interest to the shipping industry is The United Arab Emirates Ship Owners Associates (UAESOA), a new association of UAE shipping companies seeking to promote high standards and a professional code of conduct.

 

 

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