Pest Analysis for Egypt
United Arab Emirates
a. Introduction
Dubai, the most well-known state in the UAE, became a major hub for trade since 1985 with the establishment of the first and biggest free-zone area in the Middle East - Jebel Ali. Since then, it developed as an international business center and a modern tourist destination. Over the past ten years, since 1996, when Dubai Airport Free Zone was established and the first Dubai Shopping Festival launched, the city has positioned itself as the „City of Gold‟ and became a major trading hub for gold and jewellery in the Middle East. Accordingly, at any given time, there are over 25 tons of gold on display in jewellery shop windows in Dubai.
On the other hand, the sales volume of imported jewellery in Dubai represents 73% of total market size. With Dubai ranking the third most significant re-export center in the world after Hong Kong and Singapore, re-export trade forms one- third of the entire trading sector in the UAE. In addition, UAE, Lebanon, and Isreal are the only participant member in Kimberley Process in the Middle East and the Gulf; hence, the only point of entry for rough diamonds, with trade reaching $3.9 billion in 2006.
b. IndustryStructure
With regards to industry structure and size, Dubai has over 700 jewellery retail shops. The traditional Gold Souk alone has more than 275 shops within an area of 0.5 km square, which is considered the densest concentration in the world. The retail market is also divided into 80% stand alone retail outlets and 20% chain outlets. On the other hand, Dubai has developed its jewellery clusters to be
[Benchmarking] Page 135
Egyptian Jewellery Industry Draft Report in the form of highly designed towers where AU Tower, AG Tower, and Almas Tower are planned to open by end of 2007. First, the AU Tower specializes in gold trade and is designed to meet the specific requirements of a wide range of gold-related businesses including: gold, precious metals and bullion traders, jewellery
a. Introduction
Dubai, the most well-known state in the UAE, became a major hub for trade since 1985 with the establishment of the first and biggest free-zone area in the Middle East - Jebel Ali. Since then, it developed as an international business center and a modern tourist destination. Over the past ten years, since 1996, when Dubai Airport Free Zone was established and the first Dubai Shopping Festival launched, the city has positioned itself as the „City of Gold‟ and became a major trading hub for gold and jewellery in the Middle East. Accordingly, at any given time, there are over 25 tons of gold on display in jewellery shop windows in Dubai.
On the other hand, the sales volume of imported jewellery in Dubai represents 73% of total market size. With Dubai ranking the third most significant re-export center in the world after Hong Kong and Singapore, re-export trade forms one- third of the entire trading sector in the UAE. In addition, UAE, Lebanon, and Isreal are the only participant member in Kimberley Process in the Middle East and the Gulf; hence, the only point of entry for rough diamonds, with trade reaching $3.9 billion in 2006.
b. IndustryStructure
With regards to industry structure and size, Dubai has over 700 jewellery retail shops. The traditional Gold Souk alone has more than 275 shops within an area of 0.5 km square, which is considered the densest concentration in the world. The retail market is also divided into 80% stand alone retail outlets and 20% chain outlets. On the other hand, Dubai has developed its jewellery clusters to be
[Benchmarking] Page 135
Egyptian Jewellery Industry Draft Report in the form of highly designed towers where AU Tower, AG Tower, and Almas Tower are planned to open by end of 2007. First, the AU Tower specializes in gold trade and is designed to meet the specific requirements of a wide range of gold-related businesses including: gold, precious metals and bullion traders, jewellery