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1. Political Environment
Opportunities
UAE’s political environment is stable - attract major financial institution that needs to invest
Dynamic Government structure
Each emirates has its own government institutional
Ownership rights: For LLC companies 49% for foreigners within Dubai & 100 % for free zone
companies
Threats
VAT enforcement
To start a company inside free zone huge amount of investment is required
Monarchy
UAE occasionally has political conflicts with nearby countries about the ownership of oil reserves
or land - UAE cut their ties with Qatar
To get trade license it is difficult for small companies
2. Economic Environment
Opportunities
The UAE has an exceptionally high GDP per capita - Dubai’s main revenues are from tourism,
real estate and financial services. Revenues from petroleum and natural gas contribute less than
6% of Dubai's economy. Real estate and construction, on the other hand, contributed 22.6% to
the economy
The United Arab Emirates also has a very low Unemployment Rate, 60% are in workforce.
This country also has one of the highest amounts of Foreign Direct Investment in the region. The
steady development of UAE attracts foreign nationals to invest.
Customs duties are low at 4% with many exemptions
No foreign exchange controls, No trade barriers or quotas, Competitive import duties (4% with
many exemptions)
Globalization has helped improve the UAE economy greatly by bringing in thousands of workers,
services and products from throughout the world. UAE has been a member of World Bank, WTO
and IMF for seven years.
Insurance for residents made complusory
Threat
Not easy for expatriates to own land, building. Most off all expatriates are on rented flats. As
mentioned earlier 80% of the workforce is made up of expatriates. Many of these expatriate
workers have no permanent home in Dubai or the rest of the emirates. The majority of
expatriates live in apartments with being the accommodation of choice.
Cost of living high
Recession – can lead to unemployment. onset of the global economic crisis
Emiratization / Localization – unemployment for other nationalities
Labour costs high
3. Social Environment
Opportunities
4. Technological Environment
Opportunities
The relatively young population is very tech-savvy, which allows companies all across the UAE to
leverage technology.
The wealth that this country possesses allows it to purchase new equipment and be in the
vanguard of technological development.
Free wifi in metro, malls – UAE WIFI
Effective communication systems- Etisalat and Du. Until 2006 Etisalat lone player
IT sector – internet city and education sector.
Fully automated systems
Threat
Ban on various social networking sites and communication apps
5. Environmental
Opportunity
This country has quite a hot, dry climate - air conditioners have the potential to sell well.
Laborer working in construction sites are given braks during summer season.
The UAE also finds itself near a few coastal areas, allowing for easier trade by sea.
Threats
Productivity might be slightly lower, farming is not so easy – Due to high temperatures