Tag: Dubai

For Expatriates in the Gulf, Ignoring Ramadan Customs Could Spell Trouble

As Muslims around the world begin observing the month of Ramadan, non-Muslim visitors and expatriates in Gulf countries are being asked to take heed of Islamic customs to avoid problems with local authorities.

Although abstinence from food, drink, smoking and intimate relations during the day are required of observant Muslims during Ramadan, non-Muslims are also expected to follow the same rules while in public in Gulf countries.

In Dubai, the glitzy sheikhdom of the United Arab Emirates (UAE), one language school is offering a free “Ramadan etiquette” course to non-Muslim expatriates, while a number of local newspapers have published etiquette guides, and do’s and don’ts lists. Some Western embassies have also released advisories on proper public behavior.

Though offered in the vein of broadening cultural understanding, these advisories also serve as guidelines for self-preservation. Breaking these rules in some Muslim countries, notes an advisory on Ramadan from the British Foreign Office, could result in arrest. Just this past month, a British expatriate was fined $US800 by the Dubai Court of Misdemeanors for insulting Ramadan on her Facebook page.

Even Dubai, considered the most Westernized city in the Arab world, said it would police the behavior of non-Muslims living there. For a first infraction, an expatriate would receive a warning if caught by police. Subsequent infractions, according to Dubai police, could result in arrest and a fine of up to US$550.

Dubai’s chief of police, Lieutenant General Dahi Khalfan Tamim, told Arabian Business, “We train our officers how to deal with different nationalities and to respect non-Muslims who may inadvertently offend Muslims during Ramadan by eating, drinking or smoking in public places during the day…. They are to deal with it in a courteous way so that [non-Muslims] would refrain from doing it again.”

International companies have learned it is good business to adhere to Ramadan. A number of brands offer Islamic-themed advertisements and Ramadan messages to customers throughout the Gulf. In addition, it is now common practice for companies to hold corporate “iftaars” (the meal Muslims take at sunset to break their fasts) as a means of socializing and deal-making.

Doing business globally often requires companies to conform to different cultural and governmental systems, but many of those challenges are ultimately outweighed by the benefits of operating within those nations, Wharton management professor Michael Useem told Arabic Knowledge@Wharton for a 2010 story about clashes between BlackBerry maker Research in Motion and governments in the Middle East over demands to monitor the company’s e-mail service. “It’s a little bit like operating in cities like Bangalore, where the power goes [out] for three hours a day,” Useem noted. “It’s a royal pain in the backside, but you still create your operation there. It’s one more challenge there of doing business.”

For long-time expatriates in the Gulf, the strict rules related to Ramadan come as little surprise. Though the oil-rich Gulf countries, with the exception of Saudi Arabia, tend to be the most hospitable to Western expatriates in the region, there has been an increased demand in recent years from the native Arab populace to protect cultural norms.

Partly fueled by locals feeling inundated by expatriates — foreigners make up nearly 90% of Dubai’s population, for instance — there have been a number of recent cases where Western expatriates have run afoul of local customs and laws, and have been jailed and deported.

In 2008, two British expatriates became infamous for being caught having drunken sex on the beach in Dubai, and were jailed and deported. Another Briton was jailed in Dubai for two months last November, and then deported, for giving the finger to an airport worker. And in 2007, a famous British DJ was sentenced to four years in prison after he was found to have 2.16 grams of cannabis in his possession. Due to these and other high-profile cases, the British Embassy said in 2009 that Britons were more likely to be arrested in the UAE than anywhere else in the world.

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Will Expansion Equal Success for Growing Gulf Airlines?

Intent on cementing itself as an international flight hub, Dubai continues to invest in its airline infrastructure and brand new airplanes. The sheikhdom will invest US$5.98 billion to expand Dubai and the new Al Maktoum international airports by 2020, officials say. Meanwhile, the Dubai government-owned Emirates airline plans to spend roughly US$10 billion a year to expand its fleet over three years, including 18 cargo planes.

Demonstrating the increasing clout of Gulf airlines in the aviation industry, Airbus has agreed to redesign its A350-1000 jet, after its Arab customers asked for changes that would allow the plane to fly further and carry more.

The government entity, Dubai Airports, recently forecast that international passenger traffic to Dubai would grow an average of 7.2% percent over the next decade, with passenger traffic reaching almost 100 million by 2020, and cargo volumes above 4 million tons.

Paul Griffiths, Dubai Airports CEO, told an audience in Bangkok recently that in less than a decade, aviation would account for 32% of the sheikhdom’s GDP — roughly US$45.4 billion. But in the same speech, Griffiths acknowledged that Dubai’s current airspace “is not currently configured to support this growth.”

Regional competitors will pose another threat to Dubai’s plans for aviation domination. Doha-based Qatar Airways is expecting to receive 200 jets worth US$35 billion, and is making a play for regional cargo business, converting 15 passenger jets to freighters and taking 33% ownership of Europe’s biggest freight carrier, Cargolux Airlines International SA. There is even competition from within the United Arab Emirates, as Dubai’s buttoned-down neighbor, Abu Dhabi, is undertaking major expansion plans for its international airport, and promoting its own airline, Etihad, which has ordered US$50 billion worth of jetliners.

Michael Wisbrun, managing director of SkyTeam Cargo, which includes the freight arm of Air France-KLM Group, told Arabian Business that such ambitious plans were of concern. “It will be tough. There’s no reason to have a hub in Qatar or the United Arab Emirates, and adding capacity with supply and demand as they are won’t help the equilibrium.”

There is need to question the sustainability of such growth, according to Wharton management professor Peter Cappelli. Speaking with Arabic Knowledge@Wharton about the Gulf airlines’ push to become a global hub for air travel, Cappelli noted that “only [a few] airlines in the world make money and the industry as a whole loses billions every year. Fundamentally, the nature of the industry is the problem: The marginal cost of filling an extra seat is almost nothing, so whenever the carriers have excess capacity, they have fare wars, and they all bleed to death. The only time any of them make any money is in the brief period in which demand is growing faster than capacity. Is there any reason to think that the carriers in the Middle East have somehow cracked this problem by spending more on new planes?”

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