The corporate executives and business owners of UAE are now aware about the challenges and opportunities that are linked with the cultural diversity of the work force. According to Taylor Cox Jr. “an increase in globalization of business and combination of multi cultural workforce can be a key factor in overall success of the business (Daenzer, 2009). The benefits of this diversity includes a better decision making, high innovation and creativity, more efficiency and success in marketing to minority ethnic communities and foreign markets, and a wide spread distribution of economic opportunity (Muna, 2011). But this multicultural work force has certain disadvantages also which includes increase in costs through increase in turnover rates, communication breakdowns and interpersonal conflict. In order to bring out efficiency amongst the diversity in culture of workforce the leaders should be aware about how to manage and create an effective multicultural workforce (Connerley, 2005). Thus a research in this field is important to analyze the trends of the multicultural workforce in UAE and the leadership style needed to manage this cultural diversity. UAE has more than 200 nationalities working together where implementation of multicultural leadership to bring a change in working environment and even to handle multicultural customers (Edewor, 2007). This research will be useful for all the leaders in organization on how to manage this multicultural workforce. The main audience of the research study will be the small business owners, and also leaders of bigger enterprises, to develop better leadership tools to handle the work force of diverse culture and convert the loop holes of multi cultural workforce into advantage for the business (Livermore, 2010).
A multicultural workforce contains people coming from different cultural backgrounds and will have different way of dealing with a problem in the