The rapid ascension of the UAE has resulted in rapid inflation in recent years. This has resulting in increasing operating costs for businesses. Moreover, viable land has become scarce, pushing the price of both it and capital assets skyward. This represents a significant challenge in terms of cost reductions and foreign currency exposure. The dirham, which is currently pegged to the U.S. dollar, may be subject to a free float in coming years in recognition of the country's emergence as a world economic power in its own right.

The social infrastructure of the UAE represents some challenges. Less than 20% of the population is native Emirati; thus the country is heavily dependent on migrant workers from other countries. Half of the population comes from the Indian subcontinent, and within the working age group 78.6% of the population is male, meaning workers have families in their home countries. The workforce will thus be multicultural...

Additionally they will have special needs with respect to immigration status, visits home and social structure in comparison to most workforces.
The country is overwhelmingly Muslim, including the guest workers. This will require special cultural consideration as well. Further, the business culture in Arab lands differs in many ways from our own. Therefore, significant education will be required on the part of our management team with respect to Arab business culture if we are to avoid damaging culture clashes.

Works Cited

No author. (2008). United Arab Emirates. CIA World Factbook. Retrieved November 17, 2008 from https://www.cia.gov/library/publications/the-world-factbook/geos/ae.html

No author. (no date). General Introduction - Free Zones. UAE Interact. Retrieved November 17, 2008 at http://www.uaeinteract.com/business/freezones.asp

CIA World Factbook