Political Risk Assessment of the Business Environment of the United Arab Emirates
United Arab Emirates
Business Environment Shell
Analysis by
Trever Morley
1. Introduction and Disclaimer
In our group’s effort to match our enthusiasm for this class with our love for engineering marvels and innovative ideas, the country of choice for us was the United Arab Emirates. Thanks mostly to the recent oil boom and spikes in demand for petroleum based products, the UAE and most other Oil and Petroleum Exporting Countries are now finding themselves in a position of power and are noticing a lot more revenue flowing into their country. I think what mostly attracted our team to the UAE is the way that they have reinvested their profits into the country to bolster their tourism using state-of-the-art designs and innovative engineering concepts. Unfortunately, despite a warning from Professor Pang, our stubborn desire to analyze the political risk in the UAE put our group at a disadvantage when it came to collecting data and finding information. The business environment shell, like the macroeconomic/financial shell, is meant to be mainly statistic and data-driven. Much of the data used to make our analysis is incomplete and much of the data that we had expected to use in our analysis has simply not been made publicly available. Despite this disadvantage, we believe that our analysis of the country is as thorough as it can be given the minimal amount of data that is made available. We hope that our analysis will allow the reader to gain an overall better understanding of what risks to expect when considering a business venture in the United Arab Emirates.
2. Data and Methodology
After collecting the data, it is important to quantify it and apply a “PangRiskMeter” political risk score in order to more easily determine where the largest risks are at that may affect the business environment. The “PangRiskMeter” is a meter on a scale from 0-5, where 0 means full of risk, 5 means free of risk, and 2.5 means average
Business Environment Shell
Analysis by
Trever Morley
1. Introduction and Disclaimer
In our group’s effort to match our enthusiasm for this class with our love for engineering marvels and innovative ideas, the country of choice for us was the United Arab Emirates. Thanks mostly to the recent oil boom and spikes in demand for petroleum based products, the UAE and most other Oil and Petroleum Exporting Countries are now finding themselves in a position of power and are noticing a lot more revenue flowing into their country. I think what mostly attracted our team to the UAE is the way that they have reinvested their profits into the country to bolster their tourism using state-of-the-art designs and innovative engineering concepts. Unfortunately, despite a warning from Professor Pang, our stubborn desire to analyze the political risk in the UAE put our group at a disadvantage when it came to collecting data and finding information. The business environment shell, like the macroeconomic/financial shell, is meant to be mainly statistic and data-driven. Much of the data used to make our analysis is incomplete and much of the data that we had expected to use in our analysis has simply not been made publicly available. Despite this disadvantage, we believe that our analysis of the country is as thorough as it can be given the minimal amount of data that is made available. We hope that our analysis will allow the reader to gain an overall better understanding of what risks to expect when considering a business venture in the United Arab Emirates.
2. Data and Methodology
After collecting the data, it is important to quantify it and apply a “PangRiskMeter” political risk score in order to more easily determine where the largest risks are at that may affect the business environment. The “PangRiskMeter” is a meter on a scale from 0-5, where 0 means full of risk, 5 means free of risk, and 2.5 means average
Bibliography: [2] AMEinfo. “UAE Focus”. http://www.ameinfo.com. Visited October 9, 2008. [3] Forbes.com. “State-Owned and Successful”.http://video.aol.com/video-detail/state-owned-and-successful/1581484053. Visited October 12, 2008. [4]Godwin, Stewart. “Globalization, Education, and Emiratisation: A Study of the United Arab Emirates.” http://www.ejisdc.org/ojs2/index.php/ejisdc/article/viewFile/195/177. Visited October 23, 2008. [5] IMF. International Monetary Fund. http://www.imf.org. Visited October 23, 2008. [6] Ministry of Business. “Business Environment”. http://www.uae.gov.ae. Visited October 23, 2008. [7] NTDB. “Country Commercial Guide”. http://www.stat-usa.com. Visited October 23, 2008. [8] Transparency International. “Corruption Perceptions Index”. http://www.transparency.org. Visited October 9, 2008. [9] UAE Interact. “UAE Business Centre”. http://uaeinteract.com. Visited October 9, 2008. [10] UNCTAD. United Nations Conference on Trade and Development. http://www.unctad.org. Visited on October 12, 2008. [11] Weforum. World Economic Forum. http://www.weforum.org. Visited October 12, 2008. [12] World Bank. “Doing Business 2009”. http://www.doingbusiness.org/EconomyRankings/. Visited October 9, 2008.