Pestel Analysis of Uae.

Topics: United Arab Emirates, Abu Dhabi, Persian Gulf Pages: 6 (1535 words) Published: October 12, 2012

The United Arab Emirates is an arab country situated in Western Asia.Border sharing countries are Oman,Saudi Arabia,Qatar and Iran. UAE consists of a federation of seven states (emirates) formed in 1971 after Britain withdrew from the Gulf. Geographically, UAE has a land area of 83,600 sq km. The capital city is Abu Dhabi but Dubai has the highest population of approximately1.6 million people.

Formal Name: United Arab Emirates (UAE)

President: Khalifa bin Zayed Al Nahyan.

Official language: Arabic

Term for Citizen(s): Emirati(s).

Capital: Abu Dhabi City.

Currency: UAE Dirham


* UAE government formed as federation of seven emirates with one advisory body (Federal National Council). * The UAE government is considered to have a consistent policy-making agenda. The country is also one of the first Gulf countries to have conducted partial elections in the region. * The UAE government is known for its consistent policy implementations. Under the leadership of the former President Sheikh Zayed, the UAE transformed from a nation affected by large-scale poverty to a highly developed and prosperous country. * Despite several changes in the international sphere, the regime in the UAE has done little towards implementing democracy in the country. The present regime does not tolerate an interventionist media and tightly controls the functioning of news outlets, while private media operators are not allowed to operate from the UAE. * There are no political parties and no official opposition exists in the country. The delay in implementation of democratic laws is leading to increasing unrest among the public and the media. Furthermore, the country has been historically dominated by family rulers.

* The UAE will continue to base its foreign policy on maintaining close strategic relations with the West, particularly the US.

* UAE oil reserves are ranked as the world’s seventh largest and possess one of the most developed economies in Western Asia. It is the thirtieth-largest economy at market exchange rates. * UAE has an open economy that is supported by a burgeoning annual trade surplus, robust fiscal and monetary policies, favourable tax laws and import/export duties. Dubai is also well known within the Gulf region as a trade centre. * The UAE's per capita income of $48,158 (as of 2011), calculated on a purchasing power parity basis, is the 23rd highest in the world. * The UAE has been ranked sixth in the world for the quality of its infrastructure according to the World Economic Forum (WEF). The country has advanced infrastructure in public premises, roads, ports, aviation and electricity. * The Dubai government is facing major debt issues. "Dubai Inc" (which is formed by Dubai World, Dubai Holding and the Investment Corporation of Dubai) has around $109 billion in debt.

* Labour immigration has been liberalized to allow foreign workers to come and work in the UAE. The Ministry of Labour passed new legislation on immigration rules in 2007, making the policies and procedures easier for foreigners. * The new law relaxed the rules regarding residence permits for foreign workers from the EU and other Western countries. This has created a good environment for many highly skilled foreign workers coming to the UAE. Foreign labour participation in the labour force is 75% of the total workforce in the Gulf countries. * The UAE's 77.9% literacy rate is low compared to other countries in the region. The government expenditure on education is comparatively lesser. Education expenditure as a share of GDP was a mere 1.4% in 2010. * Arabic is the official language. However English is the widely used business language. Persian, Hindi and Urdu are also widely spoken.”  * Standards of health care are considered to be generally high in the UAE, resulting from increased...

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