This chapter portrays the particularities of the UAE, chosen as the context for studying corporate diplomacy in this research. Referring to the global public relations framework (Sriramesh & Verčič, 2009, 2019), Dhanesh and Duthler (2019) have outlined that research in the Middle East needs to “contextualize insights based on political, economic, societal, organizational, media […] cultures” (p. 80). This statement is particularly true because the region differs significantly from Western country contexts, and (Western) ethnocentricity characterizes much of the existing public relations research (Dhanesh & Duthler, 2019; Sriramesh & Verčič, 2019). Therefore, the UAE’s particularities in terms of political, economic, cultural, and media systems are presented and linked to public relations and corporate diplomacy. By outlining the features of the economic, political, and media systems as well as cultural characteristics and discussing these in the context of public relations and corporate diplomacy, this chapter will provide a comprehensive contextualization of this thesis.

5.1 The Political System and the Governmental Agenda in the UAE

The UAE is a comparatively young country, founded only 50 years ago, in 1971, as a federation of seven emirates (Abu Dhabi, Dubai, Sharjah, Ajman, Ras al Khaimah, Fujairah, and Umm al-Quwain). Before that, Great Britain had ruled the seven sheikdoms since the beginning of the 19th century. The UAE is a family-ruled federation of absolute monarchies, in which one sheik rules each of the seven emirates. Building on the national constitution, the federal government and each emirate’s government have profound power over the economy, social life, and the media system (Ayish, 2003). One particularity in the UAE is the power of the ruling families, who, in addition to the government officials, wield significant executive power and influence crucial decision-making processes concerning policies and economic activities. For instance, the ruling families have the right to grant licenses for concessions for oil production and extraction and import goods. Moreover, in many cases, members of the ruling families act as sponsors for foreign MNCs since foreign actors are not allowed to own more than 49% of land or property—which also applies to corporations and their subsidiaries (see Ulrichsen, 2017). Exceptions are the so-called “free zones,” in which certain regulations do not apply, and foreign actors are allowed to own more than 49% of a firm. In this regard, businesses operating in the UAE benefit from close personal networks with the ruling families and the government (Al-Suwaidi, 2011). Therefore, it can be assumed that corporate diplomacy activities may particularly address government or ruling family members, which may come with advantages for the MNCs operating in the UAE.

Despite the existence of federal cabinets (e.g., the Federal National Council) with several politicians representing each of the emirates in the UAE’s federal government, fully elected, democratic institutions are absent (Al-Suwaidi, 2011). Still, the UAE Government is mostly perceived as legitimate, particularly among the Emirati nationals: “Whether it is at the local level in the individual emirates or at the federal level, UAE leaders boast a sense of legitimacy that no one, even those on the fringes of the political process, doubts or disputes” (Al-Suwaidi, 2011, p. 45). The government’s legitimacy might be explained by the UAE’s culture and its Arab heritage, in which hierarchies are highly appreciated, and leaders or individuals in senior positions are treated with high levels of respect and are rarely criticized (Yasin Fadol & Sandhu, 2013). The country enjoys high levels of social approval even though the political leaders have never attempted to integrate society members into decision-making (Al-Suwaidi, 2011).

In authoritarian states such as the UAE, public relations is mainly directed at the country’s rulers or serves to build relationships with government members (see Young & McCann, 2019). Two-way communication between (public) organizations and their environments is mostly absent (Kirat, 2006). Furthermore, in authoritarian states, corporate decisions are often made following the rulers, and restrictions on press freedom or censorship are often accepted by international corporations, as Hou and Zhu (2012) have found in their study on corporate public relations in China: “[k]eeping in line with the government themes is always the principle that each actor must comply with” (p. 922). As Kirat (2005) has pointed out, democratic institutions are the cornerstones of contemporary public relations. The absence of pluralistic opinions and decision-making processes in which different levels of the local community can participate may have significant effects on corporate diplomacy.  Engagement (see section 2.3.1) mainly builds on the premise of a collective decision-making process involving not only business and government elites but also social actors (Johnston & Lane, 2018; Taylor, 2018).

In recent years, the UAE Government has made several commitments toward its community, which can be found in the UAE’s national agenda, called “Vision 2021,” and, most recently, “Area 2071” (UAE Government, 2018, 2020). Accordingly, the UAE’s governmental priorities touch upon all aspects of life, including an excellent healthcare and education system and a sustainable environment. All of these goals attempt to meet the national citizens’ demands and simulteanously often reflect nation branding efforts through which the UAE aims to differentiate the country from other countries in the Middle East region and become a global player in meeting the demands of modern society (Allagui & Al-Najjar, 2018). However, Ilkkaracan (2008) has noted that UAE nationals often associate modernity with Western values and perceive it as a threat to their cultural heritage. The “social conservatism among their small local population [is] inconsistent with their larger ambition of global image and modern reputation,” resulting in a significant challenge for the UAE Government (Allagui & Al-Najjar, 2018, p. 71). This affects foreign companies operating in the UAE. From a neo-institutional perspective, MNCs must demonstrate that they meet their environment’s demands to gain legitimacy (e.g., Dowling & Pfeffer, 1975). In this regard, MNCs need to find ways to balance the (governmental, cultural, and social) norms and values of the UAE, which might include both conservative and Western values of their home country. Due to the local government’s power, MNCs predominantly consider governmental actors as one of their key stakeholders, and MNCs’ activities often follow governmental priorities (Tilt, 2016). Hence, corporate diplomacy efforts in the UAE are assumed to demonstrate alignment to the dominant (Islamic) values in the UAE and are directed toward the UAE Government in the first place.

5.2 The Economic System and the Relations between the Private and Public Sector in the UAE

The UAE is considered an emerging country since it does not fully meet developed economies’ standards (Kirat, 2016). However, the country has attracted substantial foreign direct investments within the last 20 years and is one of the world’s fastest-growing countries (Anadol et al., 2015; Kirat, 2006). Moreover, the UAE is among the largest exporters in the world, offering a tax-friendly environment for foreign MNCs, which, together with its high and rapid economic development, attracts numerous foreign MNCs from all over the world (Rettab et al., 2009). As of now, employees do not have to pay any income tax, and in most business sectors, foreign companies pay no or very few taxes. Only since 2018 has there been a value-added tax, affecting foreign companies and their services. At five percent, however, it is still comparatively low. In addition, there are various exemptions from paying this tax for certain services and goods (AHK Gulf region, n.d.).

While the oil and gas sector has played the most critical role in the UAE’s economy for many years, the country increasingly seeks to diversify its economy to become independent from its oil resources. For this reason, the UAE has invested in different fields, including financial services, renewable energies, tourism, and technology (Al-Suwaidi, 2011). In addition, the UAE Government seeks to develop the country’s human capital, including education, environment, and sustainability, to enable the long-term prosperity of the Emirati nationals (Al-Suwaidi, 2011).

The UAE is unique in its population, comprising 80 to 90% expatriates from over 160 countries (Dhanesh & Duthler, 2019; Kirat, 2006). This feature results from the country’s rapid economic development, mainly profiting from the foreign workforce, particularly in the construction and manufacturing sectors (Al-Suwaidi, 2011). Moreover, the UAE has a young population, with almost 50% of Emiratis being younger than 20 years (FCSA, 2017). Another particularity in the UAE is the blurring of lines between the public and private sectors, reflected in the numerous private-public partnerships. One reason for the vital link between the public and private sectors is that members of the ruling royal families own several private companies (Dhanesh & Duthler, 2019). In countries that predominantly build on monopolistic public sector businesses, the government is the most important or even the sole stakeholder in public relations efforts (Dhanesh & Duthler, 2019). However, as Kirat (2006) has noted, the increasing presence of private companies, particularly foreign ones, has positively influenced the profession of public relations in the UAE since increasingly more public relations agencies and in-house public relations departments have emerged, which, over time, have become more competent and proficient. Moreover, this rise in private companies from foreign countries has led to the spread of international public relations agencies in the UAE (Ayish, 2005).

Furthermore, the distribution of local and foreign workers in the private and public sectors is highly unbalanced in the UAE. In the private sector, only five percent make up Emirati employees, while in the public sector, the majority (60–70%) of the workforce comprises Emiratis (Dhanesh & Duthler, 2019). It is common in the Middle East region to work in the public sector since privatization attempts are comparatively young. Due to partly higher wages and better working conditions in the public sector, national citizens still prefer the public over the private sector. However, since the country seeks to diversify its economy and increasingly privatize its public institutions, the UAE Government initiated the Emiratization program. This initiative encourages foreign private companies to employ Emirati citizens and offer training and workshops for Emirati youth to improve their professional skills. The latter seeks to fight youth unemployment, a primary challenge in the country (The National, 2017; World Economic Forum, 2014), while the Emiratization program generally seeks to secure jobs for Emirati nationals over the long term (Ronnegard, 2011).

In short, improving the quality of life of its citizens in terms of education, healthcare, sustainability, and the employment of nationals is a primary goal of the UAE Government (UAE Government, 2020). Therefore, the involvement of foreign MNCs is of high relevance (Sabouni, 2017). As a result, the UAE Government promotes and encourages corporate engagement in societal issues that contribute to the country’s development (Tilt, 2016), pointing to the potential role of corporate diplomacy. Hence, it can be assumed that corporate diplomacy plays an essential role in the UAE. In addition, the UAE is highly attractive to MNCs because of its business opportunities and tax-friendly environment. Therefore, companies will strive to have a positive image in the country and toward the government to operate there in the medium and long term. Thus, the adjustment of companies to government priorities, as proposed by Duthler et al. (2015), may not only be based on the government’s general power or the companies’ fear of sanctions. Corporate adaptation could also be related to the financial advantages such as reduced or eliminated taxes.

5.3 The Cultural Heritage of the UAE

The UAE’s population is diverse, with 80–90% being expatriates, mainly from India, Pakistan, the Philippines, and a few percent from European countries (Gulf Labour Markets and Migration, 2016). Despite the multiculturality, with the nationals being a minority in their own country, the country is an Arab Muslim state that strongly builds on Islamic values, determining what is appropriate and affecting governmental regulations, such as in the form of the Shari’ah (Sardar, 2003). Younger Emiratis increasingly integrate or adopt Western values. At the same time, older generations fear the “invasion of foreign goods and attitudes into their society” (Al-Suwaidi, 2011, p. 55), a danger to social cohesion. Therefore, the preservation of the Emirati and Arab cultural heritage is a vital priority of the national agenda (UAE Government, 2018) and comes with challenges for public relations activities. As the literature has pointed out, in the UAE, public relations activities need to understand and adapt to the dominant, traditional cultural values to raise public awareness (Al Khaja & Creedon, 2010; Creedon & Al-Khaja, 2019) and influence the attitudes and behaviors of individuals (Kruckeberg, 1996).

Previous literature has explored which cultural values in the Middle East are of particular relevance for public relations practitioners (Al-Kandari & Gaither, 2011; AlSaqer & Al Hashimi, 2019; White & Alkandari, 2019) and has found the following core cultural variables: commitment to religion, respect for hierarchies, reluctance to social change, and group affiliation (Al-Kandari & Gaither, 2011), along with relationships building on honesty and the care for others in the community, particularly family members (AlSaqer & Al Hashimi, 2019). Concerning companies’ societal engagement, its perception is strongly affected by Islamic values, in which philanthropy plays a major role (Katsioloudes & Brodtkorb, 2007). The devotion to the local community is, for instance, reflected in the form of Zakat, a certain percentage of wealth that individuals and organizations are expected to spend on charitable giving. This became especially apparent in the 2017 “Year of Giving,” which the UAE Government declared as the year in which people should focus even more on societal contributions (Duthler & Dhanesh, 2018; Zakaria, 2017). Companies are expected by the local society to demonstrate their societal commitment and giving back to the local community is an essential part of doing business in the UAE in an appropriate way (Tilt, 2016). Hence, it can be presumed that corporate diplomacy in the UAE is generally of high value from a societal perspective. From an organizational perspective, it can be assumed that corporate diplomacy is predominantly presented as social support for the UAE’s community and as alignment with Islamic values, appreciating every individual’s social engagement.

5.4 The Role of the Media in the UAE

A country’s media system is closely related to its political system. Public opinion, freedom of expression, and a strong civil society affect how media actors define their role and how they can perform this role (Kirat, 2005). These variables can mostly be found in democratic countries only. Most Arab countries, including the UAE, still lack democratic institutions and freedom of speech, which negatively influences the professionalization of the media system and affects public relations practices (Kirat, 2005, 2006). In the Arab world, and thus in the UAE, the media system is a critical component of the authoritarian environment on which the country’s rulers are economically dependent (Richter & El Difraoui, 2015; Thomass, 2013).

In the UAE, due to the federal presidential monarchy, the seven sheiks of the individual emirates control all areas of the political sphere, the commercial sector, and the media system (Richter & El Difraoui, 2015). The media system in the UAE, similar to the economic system, is characterized by rapid development and has a comprehensive infrastructure (in terms of access to media and technology), which stands out positively compared to other Arab countries. When the UAE’s media system began to develop in the early 1970s, UAE-based media companies were primarily engaged in the distribution of government publications, and mass media products were used primarily for nation-building (Geissner, 2015). At the end of the 1970s, the first English-language daily newspapers, Gulf News and Khaleej Times, appeared, and even today, these have an Arabic-language edition and an English version. Both news outlets are still the country’s most widely distributed daily newspapers (Arab Media Outlook 2016–2018, n.d.). These newspapers mainly aimed to promote the country to the numerous expatriates reading and reporting to their relatives and friends abroad. Another measure to promote and spread a positive image of the country and its rulers was the establishment in 1977 of the Emirates News Agency, Wakalat Anba’a al-Emarat (WAM), with the support of the international news agency Reuters.

Although the media companies and the news agency are no longer government-owned but privatized, they are still largely financed by the UAE’s governmental institutions (at the national or emirate level) or are in the hands of members of the ruling families, often relatives of the government’s members (Geissner, 2015). An example of the close ties between media companies and the UAE’s rulers can be found in the case of Emirate News Incorporated (EMI), founded in 1989 as a non-governmental institution to promote media companies. Members of the Al Nahyan family chair the EMI, while one of the Al Nahyan family’s members is the current president of the UAE, Khalifa bin Zayid Al Nahyan. Another example is the Emirati news agency WAM, which is still dependent on government funds even though it officially enjoys editorial freedoms. Thus, the most privileged media organizations are not independent of the UAE Government, even though some are not directly controlled. The indirect dependency between the political and media systems enables rulers to use the media as the voice of the government and to spread national ideologies, ultimately strengthening the legitimacy of the country and its government. In other words, the financial support of media companies by the UAE’s rulers ensures the loyalty of media makers toward the government (see Hahn & Alawi, 2015; Thomass, 2013).

Another critical pillar of the media system is the regulation of media content and distribution. The Media Law of 1972, specifying in Articles 70 and 71 that media outlets are not allowed to criticize rulers and express anything that threatens the state’s security or relationship to ally states, still applies today, albeit with slight changes (Geissner, 2015). Media content is monitored by the National Media Council, which also issues licenses for media companies. Moreover, media law does not protect journalists from certain sanctions, leading to avoiding sensitive media coverage subjects (see Weinberg, 2008). Journalists can be fined, or their visas will be withdrawn were they to cross the “red lines” (Duffy, 2013, p. 29). Furthermore, the UAE Media Law includes many provisions to protect public morals. Any information that may damage “the national unity or social peace or prejudice the public order and public morals” is prohibited (Article 42, UAE Media Law). The UAE’s public order and public morals are closely related to religion and culture. Hence, it can be concluded that its religious and cultural values strongly influence the UAE’s media system. For example, the media law mandated the reverence of Islam and other “heavenly religions” (Duffy, 2014). For this reason, anything that might be contrary to the teachings of Islam is prohibited from being publicly reported or broadcasted. In the past, some liberal statements by bloggers were considered a violation of public morals and punished with severe sanctions (Duffy, 2014).

In summary, the government’s influence on the media system, the legal basis of media companies and journalistic products, and religious and cultural values have led to the development of a media culture characterized by self-censorship, a lack of free and critical reporting, and extensive positive news coverage on the country’s developments and the government (Ayish, 2003; Duffy, 2011). The media in the UAE can be regarded as a political instrument (see Richter & El Difraoui, 2015) aimed at ensuring the government’s power by setting the national agenda, building and increasing the country’s soft power, and influencing its image on local, national, and global scales (Geissner, 2015). Due to the strong link between the media and the political system in the UAE, public relations in the UAE is still often performed in conventional roles, using the media as mediators between the organization and its environment (Rizk, 2005). Thus, it can be assumed that MNCs seek to build good media relations and find ways of attracting media attention as much as possible to promote their corporate diplomacy efforts toward the government. Moreover, it is presumed that MNCs seek to use the tight relationship between media companies, for instance, by gaining easier media access through good relationships with the government or addressing governmental actors through the media.

Due to media laws, the government’s power, and the media’s general function as a political instrument, the media does not function as a “watchdog.” Critical statements can only be reported if they do not negatively affect the country, its rulers, or the local community. As such, it can be assumed that the media in the UAE will not report critically on (corporate diplomacy) collaborations between MNCs and the UAE Government. Related to this, the more corporate diplomacy and the government’s agenda are perceived as intertwined, the more interest the media will have in companies and the dissemination of corporate diplomacy-related news.

Because the media plays a critical role in corporate legitimation (e.g., Deephouse, 1996; see also section 2.3.3), it is highly relevant to examine the news coverage about MNCs and their corporate diplomacy efforts in the UAE media. While it cannot be assumed that the UAE media provides critical and independent coverage of companies, it can be argued that positive media coverage can increase a company’s visibility and its general perception in the UAE (especially toward government actors, who are tightly linked to the media), which may affect the company’s legitimacy in the UAE.