Entereprneuship BUS 312
Enviromental scanning of UAE for identifying the scope for new venture
3 PESTEL ANALYSIS……………………………………..
4 INTENDED BUSINESS VENTURE……………………..
UNITED ARAB EMIRATES
United Arab Emirates is a developed country from the Middle East region. It has 5.4 million of population. The development of United Arab Emirates takes us back to the era of 1970s. 1970s was the decade of developmental milestones for UAE. It has undergone through many agreements and laying off big projects which are now in the built up and progressing country’s economy. The rate of gross domestic product (GDP) is $258.8 billion. There is a very good figure of foreign direct investment (FDI) $7.7 billion. Economy of UAE is dependent upon its oil and gas resources. About 80% income is attained by making use of these resources. Per capita income of UAE is $48,158 which is a very reasonable figure for any country. UAE import its oil and gas findings and earn revenue from there. Countries come to launch their business in UAE because of its established economy. Federal government of UAE is also working on other industries to decrease its economic dependency on oil and gas import. They are working on the industries of tourism, aluminum and construction to increase their diversity of income sources. If we look at the general image and power of UAE, it has a very good reputation in world politics. It is considered as a powerful country because of its wealth of oil and gas resources. UAE land is comprised of interesting types. It has dessert, land and a sea shore. All three lands are being utilized by UAE government in their full effect. Infrastructure of UAE is very modern and well organized. Roads, commercial buildings and residential areas are well developed. All seven monarchies of UAE are having their own municipal, administration and judicial systems. The supreme authority of these seven states is the respected King His highness Sheikh Sultan Zayed Bin Nahyan. All states of UAE are peaceful and no dangerous activity is allowed to take place here. UAE is also a Centre of business activities in Middle East region. International national organizations have their headquarters and regional offices in UAE for doing trade in Middle East. Generally, UAE is considered as a wealthy, friendly and professional country. We shall study the five main factors of UAE to study whether it is a favorable country for launching a new business venture or not.
Politics of UAE is carried out at a normal pace. UAE people have their King His Highness Sheikh Sultan zayed Bin Nahyan. He is the ruler and his orders are meant to be the final word. All seven states have their own political system but the supreme authority is His Highness King. Political system has a strong structure with federal supreme council and a prime minister His Highness Muhammad Bin Rashid Al Makhtoom. UAE have a constitution which was last finalized in 1971. There is no political riot in the history and today of UAE. Everyone seems to be accepting the system and the power distance. The strong political system makes it very favorable for any business to be launched here. ECONOMICAL
The economy of UAE is well established. With GDP rate of $258.8 billion and FDI $7.7 billion; UAE economy has gain strength for a long term. Majority of people in UAE are of labor class. They comprise 60% of the whole population. The contribution of labor class in economy of UAE is very positive. They work in shifts and carry out the process of using oil and gas resources. The business sector is also contributing very much to the economy. They drag international brands and business activities here and produce a lot of revenue. The taxation system is also very favorable and can be cleared for...
Bay, F. H. (n.d.). TRIBAL SOCIETY OF UAE AND ITS TRADITIONAL ECONOMY. Retrieved october 06, 2013, from uaeinteract: http://www.uaeinteract.com/uaeint_misc/pdf/perspectives/04.pdf
Shihab, M. (n.d.). ECONOMIC DEVELOPMENT IN UAE. Retrieved october 06, 2013, from uaeinteract: http://www.uaeinteract.com/uaeint_misc/pdf/perspectives/12.pdf
TOURISM OUTLOOK IN UAE. (n.d.). Retrieved october 06, 2013, from Corporate.visa: http://corporate.visa.com/_media/visa-tourism-uae-12.pdf
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