The PEST Analysis Of The UAE
PEST Analyses:
The PEST analysis is an important tool that can be used to analyze the external environment. It takes into account the political, economic, social and technological factors within the environment.
Each element of the PEST will be explained in detail below.
Political:
The political element in UAE, compasses different aspects such as legal and government policies, safety regulations, trade regulations, and employment laws of the environment. The legal and government policies within the UAE make are it mandatory that every company that starts up within the UAE has a local sponsor. This local sponsor has the majority shares within the company. The name of the sponsor is incorporated in the trade license of the company hence the name …show more content…
For example, Dubai is highly developed and follows in high standards, whereas in Sharjah the standards are low. So it can become a tedious process to manage each and another strict rule which Workers cannot work outside in the sunlight from 1PM to 4PM in the afternoon, they should be indoor, this is the time most of the customer comes to pick their goods, If there are severe repercussions and can lead to the company paying a hefty fine.
The customs laws vary from each emirate and are tedious and strenuous process to manage for Abu Saeed.
The UAE imposes strict trade regulation policies. An example of such trade regulations is that company has to pay a duty tax of 10% to customs if they are importing their goods through the ports. However, there are certain free zones where companies do not have to pay such taxes. Abu Saeed has capitalized on the free zone that is located in Jabel Ali and avoids paying such taxes. There are various other trade regulations the processes, most of which are lengthy and can change at any moment. The regulations are very erratic to a point where three or four new laws are introduced within a …show more content…
Firstly, every employee is entitled to a retirement benefits and pension. Secondly, every worker within the UAE must have a valid visa document. The process of providing visa for an employee is a very expensive and lengthy process. So it becomes important for company to choose and hire their employees in the long term as the company has invested a large sum of money to get the staff on board and therefore termination can become a costly ordeal to the company. Additionally, the labor cost within the UAE has increased dramatically, making it hard for company to employ competent
The PEST analysis is an important tool that can be used to analyze the external environment. It takes into account the political, economic, social and technological factors within the environment.
Each element of the PEST will be explained in detail below.
Political:
The political element in UAE, compasses different aspects such as legal and government policies, safety regulations, trade regulations, and employment laws of the environment. The legal and government policies within the UAE make are it mandatory that every company that starts up within the UAE has a local sponsor. This local sponsor has the majority shares within the company. The name of the sponsor is incorporated in the trade license of the company hence the name …show more content…
For example, Dubai is highly developed and follows in high standards, whereas in Sharjah the standards are low. So it can become a tedious process to manage each and another strict rule which Workers cannot work outside in the sunlight from 1PM to 4PM in the afternoon, they should be indoor, this is the time most of the customer comes to pick their goods, If there are severe repercussions and can lead to the company paying a hefty fine.
The customs laws vary from each emirate and are tedious and strenuous process to manage for Abu Saeed.
The UAE imposes strict trade regulation policies. An example of such trade regulations is that company has to pay a duty tax of 10% to customs if they are importing their goods through the ports. However, there are certain free zones where companies do not have to pay such taxes. Abu Saeed has capitalized on the free zone that is located in Jabel Ali and avoids paying such taxes. There are various other trade regulations the processes, most of which are lengthy and can change at any moment. The regulations are very erratic to a point where three or four new laws are introduced within a …show more content…
Firstly, every employee is entitled to a retirement benefits and pension. Secondly, every worker within the UAE must have a valid visa document. The process of providing visa for an employee is a very expensive and lengthy process. So it becomes important for company to choose and hire their employees in the long term as the company has invested a large sum of money to get the staff on board and therefore termination can become a costly ordeal to the company. Additionally, the labor cost within the UAE has increased dramatically, making it hard for company to employ competent