This study is an empirical investigation of the formation process of global strategic alliances between local and foreign companies in the United Arab Emirates (UAE). Its main aim is to provide a better understanding of the process of forming global strategic alliances in a developing economy environment and to develop a theoretical framework that may help in the formation process of global strategic alliances in similar countries. Based on a case study approach, data were collected through the use of in-depth interviews, structured interviews (self administered questionnaires), and documentary research. The analysis of the data collected has revealed six main findings in relation to the formation process of international strategic alliances within the UAE enterprises. They are: i) the identification and justification of motives for forming a strategic alliance, selecting alliance partners, selecting the alliance form of structure, managing the alliance and evaluating the performance of the alliance are basic phases of the formation process of global strategic alliances; ii) strategic alliances are formed in reaction to organizational and environmental factors and become part of corporate strategy; iii) the process of partners' selection in strategic alliances passes through three stages which are search for partners, evaluation of partners and selection of a partner, and is carried out by employing evaluation and selection criteria; iv) strategic alliance processes are extensively influenced by trust and confidence based on previous relationships between partners; v) the formation of strategic alliances is widely influenced by the partners' culture; and vi) the performance of strategic alliances is evaluated by all partners. These findings have various implications in theory and in practice for policy makers, practitioners and managers of strategic alliances in developing countries.