Doing Business Dubai, UAE, GCC.
The purpose of this web page is the following:
1. To Help the foreigners understand the way business is done in third-world countries, especially in GCC and UAE
2. Help outline the deficiencies in this workforce & business systems- In order to attract ruler’s attention to key
issue hindering their development.
3. Act as deterrent to all who practice discriminative & unfair business methods
Issues to beware of when doing business in Dubai & Similar countries
Problem Number 1 – Unfair business practice
Doing Business in third world place like Dubai is not always straight and fair.
There is a substantial lack of protection for foreign investment, companies and labor.
Business, most of the time is a family matter. There are very few companies who have proper management systems. Business
decisions are mostly taken emotionally, politically and rather than scientifically.
Unfortunately, most of the time, it is who you know is the only thing that matter to get things done or win a deal. The best qualified
or performer does not always win.
It is really a shame that such a state with so much potential that it’s development is in the hands of handful of family businessmen
instead of the qualified.
The internal family business war is fierce and dirty.
Bribe, unethical barter & favors, is the main criteria of doing business and winning large projects. These unfair business practices
take place under the noses of UAE rulers and at their own expenses.
For Example:
The ruler of Dubai has appointed few men to look after key projects in the country. Some of the well known are Dr.
Khalifa and Mr. Musabah Al Fattan however they are not always successful because they are not equipped with proper support
teams.
Take for example the Emirates Towers Project - A landmark in Dubai to be completed in year 2000 and is owned by Sheikh
Mohamed bin Rashid- The Ruler of Dubai & The defense minister of UAE
The company who won the glass tender for the project is Thani Benson, which is a subsidiary of Thani Corporation. The way of
winning was through on-the-side relationships with Turner Steiner management like the project manager Mr. Seshadry and
employing his brother in Law Mr. Neelaknatan at Thani Corporation. In addition to you know what +++
Another example is winning E&W projects at DEWA -Were again won the Business through Thani Corporation and the link is the
DEWA Contracts Manager Mr. Hameed. Who’s nephew Mr. Areef Hameed, by the way, is also employed at Thani Corporation
!!!
If you look at the timing you’ll find that the employment falls within the same timings of the tenders. Convenient . The owner of
Thani Corporation, Mr. Abdullah Al Thani, is of course careful & well connected & knows how to hide his unethical business
dealings.
Yet he cannot keep fooling others for long & he will eventually be exposed or at least will be red-listed & to be watched carefully.
If you take a look at the owner Mr. Abdullah Al Thani, You’ll find that his business has grown tremendously in just few years. If you
look at his background you’ll find that all he has is an anthropology degree (hoping it is genuine) and has friends in high places!!
His internal organization is extremely disorganized; full of politics and has some of the highest turnover of managers. Some internal
resources say about 10 business units opened and closed in the past 2 years and that over 30 managers joined and left the company in
the same period..
Additionally some claim that their Balance Sheet shows that “commission” income is 2 fold more than the Thani Corporation
revenues. It is worth investigation
What Happens to the key country projects?
Will they complete them successfully? – Hoping that the foreign partner will help!
Did the country get the best price/performance? – It is doubtful!
Will that encourage qualified companies-who new that they deserved to win- to do business with UAE? – Definitely not.
This country deserve better.
This is not to say that there are no seasoned and decent businessmen, in contrary there are some business giants like Al Futaim and
some brilliant educated businessmen like the rising young man of Al Abbar family in the economic department. But the professionals
are always out numbered by the unprofessional.
It might seem not right to mention names, however any one can claim any thing, So mentioning names will help the authorities to take
necessary actions against specific targets & set them as examples for others
Problem Number 2 – Mistreating & Disrespecting Other Nationalities
The discrimination against Asian staff.
They Get paid less for working more & they misuse our need for money to treat us like salves.
They Think they can shout on them & overwork them like they own them . When Indians or Pakistanis or Philippines join the company he should be respected
If this country has to survive the economic race in the long-term, the government has to empower and educate the locals and the
businesses have to enforce non-racial policies, strict human resources audit.
Will this problem not effect the country’s economy – hope so?
Do business get the best talents? – It is doubtful!
Will that encourage other qualified nationalities and foreign companies- to do business with UAE? – Definitely not.
Problem Number 3- Unfair Labor Laws.
It does not matter who is wrong or right in GCC countries. The local almost always win.
Especially if he is well connected & the involved sum is substantial.
Even in Dubai, were many employees get their rights. The systems still serve the local employer.
Let us say that your employer decides not to pay your salary, commission or indemnity.
Yes you can go and complain about him and sue him at the ministry of labor.
But is it sure you’ll win? If the judge is a local he will be a relative or a friend or a friend of a friend of the employer in the small
Dubai Community – you’ll doubt it.
If he is not a local national - You may get your rights but after several months if not more than a year.
You’ll be out of work and they will not pay damages and if you decide to travel you’ll have to appoint a lawyer who will consume
substantial amount of you sum.
For most of the employees whose income is limited it is not worth the headache and the money.
This is another disease in the forwarded looking UAE.
Look at Kuwait because of the post-war anti-expatriate feeling they lost best expertise & talents to other countries
Will this problem not effect the UAE’s economy – hope so?
Do business get the best talents? – It is doubtful!
Will that encourage other qualified nationalities and foreign companies- to do business with UAE? – Definitely not.
Finally
We call over all the educated and fair nationals to talk to the rulers to solve these problems.
We call upon all professionals to utilize the Internet as a medium to attract the attention of the public in order to eliminate unfair
practices in their countries or their organizations. This should be the best deterrent towards discrimination & unfair practices.
However one should be objective and not be driven by hate or emotions.
The language used should be clean and be accurate and allegation shall be specific and not general so that when authorities see it, they
have somewhere to start & some specific points to check
Best Wishes
Last modified on 5-3-1999
T M & Friends