The United Arab Emirates, the UAE, has exploded in the past few decades as a haven for innovation and business success. The seven city-states of Abu Dhabi, Dubai, Sharjah, Ras Al Khaimah, Fujairah, Umm Al Quwain, and Ajman are popular with travellers and entrepreneurs from around the world. As many corporations seek to expand their international dealings, heading to at least one of the emirates may open up a wealth of opportunities.
The UAE at a glance
Abu Dhabi and Dubai are the two cities most people think of when considering the UAE, being the capital and the most populous cities, respectively. While it is certainly true that many of the business opportunities may lead you to these cities, you shouldn't discount the others. Whether you want to work in industry, marketing, tourism, or any other sector, there will be a role waiting for you here.
The UAE's economy is predicted to continue growing, ensuring that many opportunities will open up here in the future. Though much of the economy has previously been tied up in the oil industry, the world of business is fast investing in other sectors. Skilled professionals with the training needed to negotiate effectively will find plenty to interest them.
The Emirati world of business
Once again, we are returning to the Lewis model to gain some deeper insights into what we might expect from business in the UAE. The model designates the UAE as being a multi-active nation. This means that they like to nurture personal relationships alongside the business ones.
Verbal agreements and "off-duty" discussions that take place around a dinner table can be brought up later. Discussions can be lively and spirited. If you come from a culture that values everyone having their time to speak, you may find the difference in a multi-active approach insensitive, as parties are encouraged to talk at will, interrupt one another, and offer opinions in an almost stream-of-consciousness fashion rather than carefully consider and suggest favoured outcomes.
5 tips for negotiating in the UAE
Even a seasoned negotiator might find some things to potentially slip up when entering into business here. Tried and tested negotiation strategies that work elsewhere might suddenly fail, leaving you scrambling if you aren't properly prepared. Here are five tips to help you keep discussions moving forward.
1. Haggling might not be what you expect
Unless you intend to head into a souk to find some hidden treasures, haggling won't be about getting the lowest and best price. Yes, haggling does form a part of Middle Eastern culture, but that does not mean you should push for an intense back-and-forth battle to achieve a price that works for all parties. A corporate boardroom is not the same as a busy marketplace.
More important than actually getting the best deal is the belief that you got the best price. Rather than charge towards the lowest price straightaway, consider offering a small discount or boosting the deal with some added incentives. These are both great ways to demonstrate value without slashing costs.
2. Maintain respect throughout
The Emirati place a great deal of importance on respect. Even if you head into a negotiation with the upper hand, you should still aim to show respect at every turn. Respect is built into the UAE at multiple levels. Knowing how to greet correctly and show respect through your conversations is a must.
Ensure you dress properly for your meetings too. Men do not have to turn up wearing the Kandura or Ghutra, but they should look smart. Wear a well-tailored suit and look put-together. Women should dress on the more conservative side, but can also opt for business suits and similar outfits. Western businesswear is the standard.
3. Establish relationships, not just connections
Though it may feel like your Emirati counterparts are holding you at arm's length, they will actually appreciate attempts to build long-lasting relationships. Offering small, thoughtful gifts will be viewed positively.
Prepare not just for this one deal to be closed, but potentially all the deals in the future too. Create a partnership between your organisations that you can both benefit from for years to come.
4. Prepare for long timeframes
These negotiations will not be quick and easy. You need to prepare for a long and slow negotiation process. Even if it feels like progress was made in a previous session, aspects of it might still be up for debate.
Patience will be key. You may have to smooth things over several times as frustrations begin to rise. Entering negotiations with a good level of preparation and an understanding of timeframes will hopefully help to ease the way.
5. Stay consistent and stay close
Alongside these potentially longer timeframes, you need to make sure that you stay in step with your Emirati counterparts. You can expect them to repeatedly ask for updates or to go over agreements that have already been made.
This is behaviour that you can display in return. Though this closeness might not be something we typically see in other cultures, it shows your interest in the UAE. It is not intrusive but rather something expected. Choosing to stand back and wait for updates to come to you in their own time could signal that you are losing interest in the deal rather than giving space to the other party to collect their thoughts.
A sidenote for those negotiating a salary in the UAE
Even if we are not involved with sales or business deals, many of us put our negotiation skills to good use when discussing salary expectations. With so many opportunities available in the UAE, many Brits choose to say goodbye to the UK and head out there for work. The knowledge of how to turn a salary negotiation in your favour will be invaluable.
Start by converting your current salary into dirhams and then compare it to the salary ranges in job ads. Don't forget about your compensation package; your employer should give you health insurance, but it is not uncommon to get a housing allowance and other benefits too. Understand the market value of your role, what you bring to the table, and start from a strong negotiating position so you can get exactly what you deserve in salary.
Be prepared for any UAE negotiation with Scotwork
We all need negotiation training. Whether we have years behind us or we want to try negotiation skills training to improve the foundation we have, a good foundation of understanding negotiation skills and how to spin a discussion in your favour will never be a bad investment. The UAE is filled with tens of thousands of business professionals all trying to leave their mark. Negotiation training can help you focus on what you do best (and how to improve your weaknesses while you are at it), so you can ensure your deals generate the best outcomes for you and your partners' companies.
Trust Scotwork to deliver this training. Get in touch today to find out how we can transform your approach to negotiation.
