Verified Document

UAE Doing Business Internationally Requires Understanding Of Essay

UAE Doing business internationally requires understanding of the local political and legal environments. In a country like the United Arab Emirates (UAE), this can be a complex process, but it is necessary for successful market entry. This paper will explore the political and legal environments of the Emirates.

On a national level, the UAE is generally considered to be an open economy, and is certainly one of the more open economies in the region (CIA World Factbook, 2013). The country has committed resources to infrastructure development and job creation, indicating a willingness to build the economic strength of the nation for the long run. There is a free trade agreement in place with the United States. In addition, several areas have set up Free Trade Zones allowing 100% foreign ownership and no taxes, with the objective of attracting foreign investors (CIA World Factbook, 2013). It is worth noting that such policies are regionally limited. There are seven emirates, and their degree of economic integration with the world varies dramatically. Dubai has the highest degree of integration. Abu Dhabi also has some integration. There are free trade zones in Fujairah, Ajman, Sharjah and Ras al-Khaimah as well. In addition, for foreign companies it is worth considering that the social legal environment...

There are several government agencies available to assist foreign firms in finding the right free trade zone for investment, again indicating a high level of priority within the political environment for the promotion of foreign direct investment (FDI).
Historically, the emirates have had a high degree of direct involvement in business, and despite the country's openness that still is the case today. Augustine (2012) notes that Dubai's state-owned enterprises contribute between 20-50% of economic value added to the entire Gulf region, much less to the UAE. Key sectors like hydrocarbons, banking, utilities, shipping and tourism development all have a high level of state involvement and oversight (Chmaytelli & Sharif, 2011). This does not preclude foreign investment, but it does imply that foreign firms seeking to enter these industries will require local partners and/or high-level government cooperation.

As noted, there are differences in the legal environment between the different emirates, and also between FTZs and non-FTZs. Tarbuck and Lester (2009) note that Dubai has underpinned its economic development on a strong legal and regulatory framework. The legal…

Sources used in this document:
Works Cited:

Augustine, B. (2012). Better governed state-owned enterprises to drive Gulf growth. Gulf News. Retrieved April 18, 2013 from http://gulfnews.com/business/banking/better-governed-state-owned-enterprises-to-drive-gulf-growth-1.1006936

Chmaytelli, M. & Sharif, A. (2011). Dubai denies plan to restructure debt of state-owned companies in 2012. Bloomberg. Retrieved April 18, 2013 from http://www.bloomberg.com/news/2011-12-07/dubai-denies-plan-to-restructure-debt-of-state-owned-companies-in-2012.html

CIA World Factbook. (2013). United Arab Emirates. Central Intelligence Agency. Retrieved April 18, 2013 from https://www.cia.gov/library/publications/the-world-factbook/geos/ae.html

Strong, M. & Himber, R. (2009). The legal autonomy of the Dubai International Financial Centre: A scalable strategy for global free-market reforms. Economic Affairs. Vol. 29 (2) 36-41.
Tarbuck, A. & Lester, C. (2009). Dubai's legal system: Creating a legal and regulatory framework for a modern society. Motivate Publishing: Dubai. Retrieved April 18, 2013 from http://www.lw.com/upload/pubcontent/_pdf/pub2787_1.pdf
Cite this Document:
Copy Bibliography Citation

Related Documents

National Culture on Project Control: Emirates Project
Words: 5403 Length: 16 Document Type: Research Proposal

national culture on project control: emirates project manager in *xyz company case study This work addresses effects of national and international culture upon business, using a corporate organization in the UAE as an example. Theoretical aspects of culture are discussed and a detailed research program is outlined, with data from a Pilot Study being presented, as a basis to plan and delineate the best approach to the overall research protocols. Intent The

SLP and International Business Analysis
Words: 11586 Length: 34 Document Type: Essay

political scenario illustrated that governments all over the globe are making their immigration rules more stringent because of the rise in terrorism; the implication of this phenomenon is a decrease in international traveling, which endangers continuance of a number of airlines, including Nigeria's Arik Air (Eze, 2010). Hofstede's power distance dimension denotes the degree to which unequal distribution of power is anticipated and accepted by the lower ranking members

Diffusion of Product Innovation Through
Words: 16573 Length: 55 Document Type: Dissertation

Moreover, CoPs develop their practice through improving the diffusion of innovation within their active networks; the benefits of such interactions are countless especially in the field of healthcare. One can assume that specialty doctors' communities would present the perfect example for CoPs because they share the same practice, interest and professionalism. It would be interesting to study if those CoP networks exist in United Arab Emirates, whether they are active

Market Driven Management
Words: 25695 Length: 75 Document Type: Term Paper

Pharmaceutical industries have to operate in an environment that is highly competitive and subject to a wide variety of internal and external constraints. In recent times, there has been an increasing trend to reduce the cost of operation while competing with other companies that manufacture products that treat similar afflictions and ailments. The complexities in drug research and development and regulations have created an industry that is subject to intense

Offshore Wind Energy
Words: 5974 Length: 20 Document Type: Introduction

Offshore Wind Energy Wind Energy (Facts and Features, Usage, Future Prospects, Strengths and Weaknesses, Recommendations) It is an undeniable fact that human activity needs energy as a basic requirement. Energy input is a fundamental need for transportation, water and food provision and mobility services. In the contemporary energy system, non-renewable fossil fuels are the principal resources that satisfy the global energy needs. They are preferred due to their dependability and low-cost. On the

Organizational Behavior
Words: 7778 Length: 25 Document Type: Research Paper

Organizational Behavior In 1984, the movie The Gods Must be Crazy depicted a Kalahari bushman who finds a Coca-Cola bottle that was discarded from an airplane into the desert. The bushman does not recognize the bottle or the brand, and the situation leads to all manner of confusion among the tribe, who try to decipher the meaning of the bottle. Such a story would be rather incomprehensible today, that there would

Sign Up for Unlimited Study Help

Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.

Get Started Now