Ukrainian business in the Middle East: culture, law and pitfalls

Ukrainian business in the Middle East: culture, law and pitfalls

OLENA SHYROKOVA

Business in the Middle East: what Ukrainian entrepreneurs should know about culture, law, and risks before entering the market.

Entering the international market is an important step for Ukrainian entrepreneurs, especially in times of war, when businesses are looking for more stable or promising markets.

The Middle East, with its rapid economic development, favorable geographical location and investment activity, is becoming an increasingly attractive destination. However, doing business in the countries of this regional group is associated with a number of cultural, legal and economic challenges that need to be taken into account even at the planning stage.

1. Cultural peculiarities: the main challenge for Ukrainian entrepreneurs

One of the main risks is a lack of understanding or underestimation of the cultural norms and values of the Middle East. In Arab countries, business is closely connected with traditions, religion, and interpersonal relationships. Respect for Islamic customs, understanding the role of family, honor, and seniority are extremely important.

What to consider:

• Time is a flexible concept. Business processes may occur more slowly than in Ukraine. Patience and respect for the rhythm of local partners are the key to successful cooperation.

• Ramadan and other religious holidays affect work schedules. Activity decreases during this time, and business meetings should be planned taking into account changes in the schedule.

• Personal relationships are more important than formal agreements. Decisions are often made not immediately after a project presentation, but after prolonged personal contacts.

2. Negotiation style

In the Middle East, negotiations are not only business-related but also social and ritualistic. Haste can be perceived as disrespectful or even insulting.

Key points:

• Informal meetings. Often, first contacts take place in an informal setting, such as over coffee or dinner. This is not a waste of time, but a way to build trust.

• Expressing politeness. It is better to avoid direct denial or criticism. Even refusal can be veiled, and “yes” does not always mean agreement.

• Gifts, attention to detail. Presents at meetings, polite compliments, proper attire—all of these are important in Arab business etiquette.

3. Communication and gestures

Gestures and nonverbal communication have a different meaning in Arab culture than in Slavic culture.

• Hand gestures. For example, pointing with the left hand is unacceptable because the left hand is considered “unclean.”

• Eye contact. In some countries, excessive eye contact with members of the opposite sex is taboo.

• Personal space. In Arab countries, it is less clearly defined, so you should not retreat when the interlocutor approaches.

4. Legal and bureaucratic risks: knowledge of the laws is the basis of business security

One of the most serious challenges for Ukrainian entrepreneurs in the Middle East is the legal specifics of the region, which differ significantly from the Ukrainian or European system. Many countries operate hybrid legal models – partly based on Sharia, partly on civil law.

Why is this important:

• Incorrect documentation or ignorance of local regulations can lead to fines, blocking of activities, or even loss of business.

• In some countries, there are requirements for a local partner or specific conditions for foreign ownership of a business.

• There may also be differences in taxation, licensing, and import/export regulations that are not obvious without detailed analysis.

A thorough study of the legislation or cooperation with local lawyers and consultants is not just a recommendation, but a necessary condition if you want to work legally, stably, and avoid unpleasant surprises.

5. Risks due to lack of experience or knowledge

Insufficient preparation is another risk factor. Ukrainian entrepreneurs often do not undergo in-depth adaptation or do not involve local business consultants, which leads to strategic mistakes.

• Lack of language skills. Although English is used, knowing at least basic Arabic will greatly improve your treatment.

• Ignoring local market needs. What works in Europe may not work in Dubai or Riyadh. It is worth adapting the product or service.

Doing business in the Middle East is both an opportunity and a challenge. To avoid risks, it is important not only to know your business well, but also to deeply respect the culture of the region, study the market, engage local partners, and always act from a position of cultural sensitivity.

The Middle East is not a place for experiments without preparation. But with the right approach, Ukrainian businesses have every chance of becoming part of a dynamic and rich market.

Olena Shyrokova : President of the Ukrainian Business Council in the UAE. CEO of OLENA (UAE)

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