...Financing in the United Arab Emirates Executive Summary 1. Introduction & Context 1.1 Background to the Study 1.2 Objectives of this Work 1.3 Consultations 1.4 Limitations 2.1 Definition of ‘SME’ 2.1.1 EU Definition of SME 2.1.2 World Bank Definition of SME 2.1.3 Criteria Used by Banks to Define SMEs 2.1.4 UAE Definitions of SME 2.2 Current overview of SME prevalence in Abu Dhabi/UAE 3.1 Scale of SME Finance in the UAE 3.2 Supply of Finance by Type 3.3 Sources of Finance 3.4 Stakeholder Mapping 3.5 SME Access to Finance Process 3.6 KPIs / metrics and baseline data 4.1 Key Findings – Supply Side 4.2 Key Findings – Demand Side 5.1 International Research Findings on Key Obstacles to Improving SME Access to Finance 5.2 Critical Success Factors to Improving Access to Finance for SMEs 6.1 Leading Practice SME Ecosystems: Singapore and the United Kingdom 6.2 Key Lessons Learned for the UAE 6.3 Detailed Review of Leading Practice and Regional Comparator Ecosystems 6.3.1 Singapore 6.3.2 United Kingdom 6.3.3 Jordan 6.3.4 Qatar 7.1 The core issues 7.2 n overview of the opportunities for KF and other (public and private) entities to A support SME access to finance in Abu Dhabi / UAE 7.2.1 Legal and Regulatory Transparency 7.2.2 Access to information 7.2.3 Capacity Building 7.2.4 Diversify SME Financing Mechanisms 7.3 Criteria 4 5 5 6 6 6 7 7 7 8 8 8 9 10 10 11 12 13 14 15 16 17 18 22 22 22 24 24 24 25 25 28 31 33 35 35 35 40 40...
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...The Theory of Globalization in Dubai William Jackson Jr Keller School of Graduate Management Abstract This paper will explore Dubai, the world’s fastest growing city on the Arabian Gulf which features the most amazing projects, that appears to be the new tourism model for the world. Mega-resorts featuring golf courses, marinas, hotels, housing estates, super-malls and entertainment facilities are mushrooming along coastlines in all continents. The globalization in Dubai will be presented utilizing examples from South Africa, Vietnam, the Bahamas and Mexico. Many of those Mega-resort and housing complexes are built by Middle Eastern companies utilizing capital from the Middle East. The city of Dubai tourism-related projects are called “bubbles set to burst”. One analyst, called Dubai “the harshest of lessons in the perils of rampant property speculation”. The property, tourism and golf industries have already suffered downturns as a result of the global credit crunch, and the majority of the ambitious resort projects may not survive the current economic crisis. Developers and speculators will lose money, but the major losers will be local communities and the environment. In addition to concerns about the economic risks, there are growing worries about the global food shortage crisis and how it impacts of climate change. But decision-makers are careless when it comes to giving the green light to constructing monstrous resorts and housing...
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...Economy September 2010 UAE Economic Outlook 2010 UAE Economic Outlook 2010 GDP expected to grow in 2010 Inflation expected to drop to 0.4% in 2010 UAE struggled to post a budget surplus in 2009 Dubai World reaches agreement to restructure its debt UAE GDP expected to grow by 0.6% in 2010 The global recession, which started in Q4-2008, halted UAE‟s economic growth significantly. After a 7.5% growth in real GDP in 2008, UAE‟s GDP increased by only 1.3% to reach AED515bn in 2009. Despite the global recession, the non-oil GDP grew by 8.4% in 2009. Due to the decrease in oil prices and production, the non-oil sector contributed 71% of the GDP in 2009 compared to 66% during the previous year. Overall Broad Money supply decreased by 0.3% as of Q2-2010; grew by 5.4% in 2009 The UAE government implemented expansionary monetary and fiscal policies to stimulate aggregate demand in 2009. Due to the effects of the recession on the economy, the UAE government wanted to expand the money supply and encourage growth. Money Supply (M1) and Broad Money (M2) grew by 3.7% and 2.2% respectively, while the overall broad money (M3) decreased by 0.25% as of Q2-2010 due to a decrease in government deposits. UAE maintained a budget surplus for its fifth consecutive year The budget surplus in recent years was largely credited to high gas and oil profits due to high oil prices. Total government revenue was almost AED293bn for 2009, a decline of 35% from the previous year, while hydrocarbon...
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...March 2, 2014 Mr. Steven Salvatore, CEO Hans Engineering Inc. 1500 NW Pine Street Albany, NY 10012 Dear Mr. Salvatore: In this document you will find the report that you requested in February. I have provided key information and made recommendations on a plan of action to expand Hans Engineering Inc. to the United Arab Emirates (UAE). My analysis highlights several areas that can directly impact your decision for the future expansion of Hans Engineering Inc. on a global scale. I provided information on the country, economy, business, culture, and possible locations to give credence on the viability of expanding to the UAE. The UAE is a trend setter in constructing unique buildings and robust infrastructure and is a solid prospective in which to make the headquarters for Hans Engineering International. This report will demonstrate that doing business in the UAE can be extremely rewarding for the company as it expands to an international market. I used several resources in establishing my analysis. The Central Intelligence Agency’s World Factbook, the U.S. Department of State, Embassy of the United Arab Emirates, UAE Interact, and Every Culture were all very helpful in answering my research questions. Thank you for choosing me to conduct research into the United Arab Emirates....
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...HISTORICAL BACKGROUND Early Years: The United Arab Emirates (UAE) was formed from the group of tribally organized Arabian Peninsula sheikhdoms along the southern coast of the Persian Gulf and the northwestern coast of the Gulf of Oman. This area was converted to Islam in the seventh century and for Library of Congress – Federal Research Division Country Profile: United Arab Emirates, July 2007 centuries afterward was embroiled in dynastic disputes. Most UAE nationals are descended from two tribal groupings, the Qawasim and the Bani Yas, which emerged as leading powers in the eighteenth century. The Qawasim, mainly land and sea traders, dominated what are today the emirates of Ras al Khaymah and Sharjah. The Bani Yas, who were agricultural and pastoral, lived in what are today the emirates of Abu Dhabi and Dubai. From the seventeenth to the nineteenth century, the area became known as the Pirate Coast, as both European and Arab pirates attacked foreign ships. The British mounted expeditions against the pirates during this period, culminating in an 1818 campaign against the pirate headquarters of Ras al Khaymah and other harbors along the coast. This action ostensibly was taken to safeguard British maritime routes, particularly those of the British East India Company, but some historians have noted that the war was in fact motivated by the British desire to establish supremacy in the region against the claims of other European powers. British Rule: In 1820 Britain...
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...A Study On Role of Small and Medium Enterprises in U.A.E Submitted By: Vishal Bobal MBA (2015-2017) AUD4325 TABLE OF CONTENT 1. INTRODUCTION 2.1 DEFINATITION 2.2 SMEs IN DUBAI 2. SERVICES PROVIDED BY UAE GOVERNMENT TO SMEs 3. GOVERNMENT INITIATIVES TO PROMOTE SMEs 4. IMPORTANCE OF SMALL AND MEDIUM ENTERPRISES 5. SMEs ROLE IN THE ECONOMY 6. PROBLEMS TO SMEs 7. BARRIERS TO SMEs 8. CONCLUSION 9. REFERENSING INTRODUCTION 1.1 DEFINATION The small and medium sized enterprises (SMEs) have got very few resources, opportunities or turnover which is upto a certain extent. The definations of SMEs are flexible. This is variable from person to person. There are many people who use the word SME for those firms who have less than 500 employees, whereas some use this word for those businesses that have more than 500 workforces. However, some use the word “Big Businesses” for the organizations that have more than 500 employees. If we look at the middle east, it can be easy to see that there are numerous differences in which a regional can be taken into an account. It is also widely understood that the SMEs are the very important...
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...of Growth and Globalization in the middle East and North Africa by George T. Abed and Hamid R. Davoodi. International Monetary Fund, n.d. Web. 10 Apr. 2014. <http://www.imf.org/external/pubs/ft/med/2003/eng/abed.htm>. JORDAN The government of Jordan has adopted IFRS in may 15th,1977 by passing Company Law No.22 which came into effect after thirty days of its issue. The Public companies were informed to classify their accounts according to the International Financial Reporting Standards. (IFRS, 2011) Egypt The companies in Egypt were monitored by the IFRS until the Capital Market Law passed in 1992 which obliged all the registered companies to follow Egyptian Accounting Standards set by ministry of Finance. The Central Bank made it mandatory for all the Banks to follow the EAS.However, as per the current report, the Egyptian companies are known to be adopting IFR standards. (IFRS, 2011) Saudi Arabia Saudi Arabia follows the strict regulation of Islamic law known as sharia. However In 2007 Saudi Arabian Monetary agency joined the technical committee of the International Financial Standard board in order to improve the its accounting standards. The following year all the companies registered under Saudi...
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...FreePaisa for the world Electronic Financial blog post Posts Comments NBAD to dial ‘R’ for remittance National Bank of Abu Dhabi (NBAD) has signed an agreement with MoneyGram International to allow customers to send money home using mobile phones. Recent Posts q NBAD to dial ‘R’ for remittance Worldwide Mobile Payment Users to Reach 108.6 Million in 2010 Mobile banking will expand in UAE 8 million Filipinos now using mobile banking — BSP Citibank Launches Mobile Banking Service In Russia ‘2.5 billion World’s Adults remain Unbanked’, Barclays Report $10 million fund designed to incentivise mobile financial services companies. Huge growth in operator revenue by offering financial services studies by q q q q q q When the service is introduced customers will be able to send money directly from their accounts with the touch of a few buttons. They will also be able to send money home from pre-paid cards after MoneyGram’s systems are integrated with NBAD’s existing Arrow mobile phone transfer service. q http://freepaisa.com/wordpress/ (1 of 6)25-06-2010 10:23:24 FreePaisa for the world Continue reading NBAD to dial ‘R’ for remittance q CGAP Western Union reveals international mobile strategy Mobile Banking: You can now pay school fees using your phone MTN Uganda sees explosive growth in mobile money Doha Bank gets nod for mobile money transfer MasterCard Mobile MoneySend Platform Set To Go Live Utiba now certified in Western Union...
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...9 | 3. Average retail rents/region Comparitive Hotel Occupancy Rates | 11 | 4. Comparitive Hotel Occupancy Rates GNI of UAE over the years | 11 | 5. GNI of UAE over the years | 14 | 6. GNI per capita of UAE over the years | 15 | 7. Unemployment Rate 2006-2012 | 16 | 8. Unemployment and UAE Nationals Participation in the labour market. | 17 | * 9. Inflation in UAE in recent times | 18 | * 10. Average Retail Rents/Region * | 19 | * 11. Current Account Balance of UAE 2004-2014 | 20 | Contents Topic | Pageno. | 1.Introduction | 4 | 2.GDP of UAE | 6 | 3.Factors affecting GDP | 6 | 4.Contribution of different sector | 8 | 5.GDP of UAE in 2013 | 9 | 6.Hydrocarbon Sector | 11 | 7.GNP of UAE | 13 | 8.Unemployment rate in UAE | 16 | 9.Implication of unemployment rate | 17 | 10.Inflation | 18 | 11.BOP | 20 | 12.Fiscal Policy | 21 | 13.Monetary Policy | 21 | 14.Analysis of exchange rate | 22 | 15.Recovery from global Recession | 23 | 16.Conclusion | 24 | INTRODUCTION Thirty years ago the United Arab Emirates was considered as one of the least developed countries of the world. But now an income level has been reached which can be compared to the industrialized nations. The UAE’s economy is the second largest in the Arab World (after Saudi Arabia) with GDP of $377 billion in 2012. The UAE has been trying to diversify its economy and they have been successful as well as 71% of its GDP comes from sectors other...
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...billion (KRW 58.14 trillion), the company operates its business through five divisions: Home Entertainment, Mobile Communication, Home Appliance, Air Conditioning and Energy Solution, and Vehicle Components, CEO of LG Electronics is Bon-joon Koo, who assumed the role of Vice Chairman of LG Electronics on 1 October 2010. In 2011, LG Electronics was the world’s second largest television manufacturer. Abu Dhabi Islamic Bank was established on 20 May 1997 as a Public Joint Stock Company through the Amiri Decree No.9 of 1997. The Bank commenced commercial operations on 11 November 1998, and was formally inaugurated by Abdullah Bin Zayed Al Nahyan, UAE Minister of Information and Culture on 18 April 1999. All contracts, operations and transactions are carried out in accordance with Islamic Shari’a principles. ADIB commenced its operations with a paid-up capital of One Billion Dirhams divided into hundred million shares, the value of each share being ten dirhams. The shares are quoted on the Abu Dhabi Securities Market. The founders of Abu Dhabi Islamic Banks hold 29% of its equity while the remaining 71% is held by approximately 100,000 shareholders. The founding shareholders of ADIB are: * Members of the Ruling Family * The Abu Dhabi Investment Authority ADIA Task 1 1a. Vision LG Electronics continues to pursue its 21st century vision of becoming a worldwide leader in digital-ensuring customer satisfaction through innovative products and...
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...Introduction The unprecedented economic transformation which has taken place in the UAE since the formation of the state has been largely funded by the judicious use of oil revenues. However, although oil and gas production remain the primary source of public revenue, the secret of the country's current economic success has been a determined government strategy of economic diversification, leading to the creation of new productive sectors. This, combined with re venue from foreign investment, has meant that the UAE economy has been relatively immune to the effects of plummeting oil prices: the weighted average of oil per barrel dropped from US $18.8 in 1997 to US $12.4 (-34 per cent) in 1998. During the 1970s and 1980s such a decline would have triggered a major setback. General Economic Trends 1998 According to the Central Bank Annual Report for 1998, UAE gross domestic product at current prices (GDP) decreased from Dh 180.6 billion in 1997 to Dh 170.1 billion in 1998 (-5.8 per cent), despite substantial growth in most economic sectors. This drop was largely attributable to a 31 per cent decline in the value of the oil sector output, from Dh 53.5 billion in 1997 to Dh 37 billion in 1998, due to low oil prices. In addition, because of the close link between oil and gas prices and petroleum products, which constitute the bulk of the manufacturing sector's output, values decreased in this sector, albeit very slightly, from Dh 20.23 billion in 1997 to Dh 20.19 billion in 1998...
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...and articles written previously. Secondary data has been used throughout the study of the project. 3 Abstract This preliminary study undertakes to investigate on electronic banking system and current scenario of e-banking in United Arab Emirates (UAE). Nowadays all the companies are trying to advance their technology and increase their output. Similarly Banks are also moving rapidly to an era of technological change. Online versions of nearly all existing payment methods are appearing rapidly bringing about profound changes in the whole system of financial services and intermediation. While many banks especially in Europe and the U.S. have adopted internet banking, this research shows that the majority of banks in U.A.E. are still in the early stages of developing e-banking. Only very few have well-developed e-banking facilities, despite all banks having an internet banking website for the convenience of their customers. This project will focus on discussing what is e-banking? What are the advantage and risk in adopting this banking system? What are the rules or guidelines to implement the system? What services does e-banking provide in the UAE and how e banking has increased the profit and efficiency of banks? 4 TOPICS PAGES 1. What is e banking?.............................................................................................................6 1.1. Understanding the basic definition of E-Banking…………………………………………….6 1.2. Features of E-Banking……………………………………………………………………………………...
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...INTRODUCTION Dubai is one of the seven emirates of UAE. The emirate consists of a city of the same name. The city is the largest in terms of population among the rest of the cities of UAE and is the second largest city in terms of area after Abu Dhabi. The history of Dubai dates back to the era even before than the formation of United Arab Emirates. It was only a desert back then in which only tribal Bedouins living in the area could survive. Gradually the population began to rise and thus the desert gained the shape of a city that is one of the largest cities in the world of modern times. Previously Dubai's economy was dependent on oil trading business only. Then steps were taken by the government of Dubai to diversify the economy of Dubai. One of these steps was making Dubai an industrial and commercial hub in the region. For this purpose, many different free zones were established all over the city. These free zones played quite an important role in the diversification of the economy of Dubai and in the creation of a business hub in the city. The companies that were operating in these zones were given special allowances and benefits that helped in flourishing their trades all across the city. Dubai freezone company enjoys benefits such as better infrastructure, a wide range of facilities (warehouses, offices), relief from corporate tax, and zero import duties. One of the most important benefits that were available to the companies operating in the zone was that these companies...
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...Special Advertising Section 2008 Abu Dhabi Plan 2030 Innovation and Sustainable Development Abu Dhabi is the capital of the seven-member United Arab Emirates and its largest and wealthiest member. It has enormous reserves of oil and natural gas, as well as a pristine and beautiful natural environment encompassing sea, islands, coastline and desert. The Plan Abu Dhabi 2030 details how Abu Dhabi will succeed in managing its growth in a way that is good for business, for residents and for the environment. And by doing this, Abu Dhabi will achieve its goal of becoming a global capital city, worldrenowned for its cultural, tourism and business offerings. Special Advertising Section 2008 Abu Dhabi 3 Abu Dhabi: Creating a Modern Metropolis isit Abu Dhabi, even for a short time, and the quiet confidence of this dynamic capital city is quickly apparent. It’s a confidence that prioritizes planning and getting things right from the start. What’s the source of this confidence? Perhaps it’s the $350 billion in infrastructure, real estate and industrial projects already in progress for the city. Maybe it stems from the Persian Gulf emirate’s enormous oil and gas reserves and growing human capital base. It could also be the awareness that most elements of the city’s future growth have already been studied and planned out. But it is likely a combination of all these factors. This city’s ambitious and deliberate approach to growth was behind the creation of “Plan Abu Dhabi 2030:...
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...Effect of WTO Trading Agreements on Employer-Employee Relationships in the UAE The World Trade Organization (WTO) was established in Geneva, Switzerland on January 1, 1995. The organization was created through the Uruguay Round negotiations. The organization has a total of 159 member countries (Who We Are, 2014). The WTO is an “organization for trade opening. It is a forum for governments to negotiate trade agreements. It is a place for them to settle trade disputes. It operates a system of trade rules. Essentially, the WTO is a place where member governments try to sort out the trade problems they face with each other” (Who We Are, 2014). The “UAE is a member of the WTO since 10 April 1996” (UAE and the WTO, 2014). The membership of the UAE in the World Trade Organization has improved the trade relations of the country with various other countries. This in turn has affected the knowledge inflow from UAE’s trading partners. This is because those countries which have a favorable trading relationship with the UAE tend to have a large number of their workforce migrating to the UAE in search for work and business opportunities. For example, the positive trading relations between the UAE and India since the independence of the UAE in 1971 (Kader, 2013). This has led to an increased inflow of executives and workers to the UAE. Moreover, the country has also experienced a tremendous increase in foreign direct investment from Indian businessmen. Furthermore, this strong relationship...
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