...Opportunities for India and UAE In Bilateral Investments Soumen Pattanayak Institute of Management Technology, Dubai, United Arab Emirates Soumen.pattanayak08@gmail.com Rahul Hoare Institute of Management Technology, Dubai, United Arab Emirates rahulhoare@gmail.com ACKNOWLEDGEMENT This research paper is made possible through the help and support from everyone, Including: parents, teachers, friends, our institute IMT and in essence, all sentient beings. Especially, please allow us to dedicate our acknowledgment of gratitude toward the following significant advisors and contributors. First and foremost, we would like to thank Dr. Vimi Jham for her support and encouragement. She kindly read our paper and offered invaluable detailed advices on the theme of the paper. Second, we would like to thank our institute, Institute of Management Technology, Dubai for providing us a platform to do the research on Bilateral Investment. Finally, we sincerely thank to our parents, family, and friends for their encouragement. The product of this research paper would not be possible without all of them. About the author Rahul Hoare was born in Kolkata, India (1989). He obtained the B.E degree in Electronics and Telecommunication from University of Pune, India in 2013. Currently pursuing his Masters in Business Administration from Institute of Management Technology Dubai, UAE. Soumen Pattanayak was born in Angul, Orissa, India, in 1986. He received the B.Tech degree...
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...referred to as the UAE or the Emirates) is a relatively young country that has established a powerful world economy in a short period of time. After breaking ties from the United Kingdom just over four decades ago, the UAE has quickly developed one of the most appealing economies for foreign investment in Western Asia. The Emirates’ largest cities, Dubai and Abu Dhabi, are significant business gateways between the Middle East, Africa and Asia. Leveraging its prime geographical location and plentiful oil and natural gas reserves, the UAE has endeavored to develop its economy to the point that “today, [the Emirates] feels proud of [its] world-class and highly-ranked sea and air ports, which have strongly positioned the UAE as a main hub for trade and travel worldwide,” according to UAE Prime Minister Sheikh Mohammed. This improvement-centric mindset coupled with strategic reinvestment in infrastructure sets the United Arab Emirates on a path towards long-term global impact in many business indices. Figure [ 1 ] http://data.worldbank.org/country/united-arab-emirates S S Figure [ 1 ] http://data.worldbank.org/country/united-arab-emirates S S Over the past decade foreign direct investment (FDI) has swelled around the attractive business sector of the United Arab Emirates. Since its inception in 1971, the Emirates’ economy has grown exponentially, with gross domestic product (GDP) exceeding US$377 billion in 2012. Excluding 2009 when the UAE, like most of the...
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...and it has helped in wealth creation to the population. Development of UAE can furnish a fine example to other oil –rich nations as UAE has agreeably managed to overcome the negative outcomes of exporting oil and has projected the benefits involved in it. An open economy, UAE has high per capita income and also substantial trade surplus. This is achieved mainly through the steady oil prices that boosted government revenues. Though primarily oil based economy, non-oil sectors are also gaining a lot of importance in driving UAE’s economy. Tourism, financial services, foreign trade etc are playing a major role in economic development. Increased spending in infrastructure development, job creation and free trade zones which boast 100% foreign ownership and no taxes are helping the country in attracting investment from all over the...
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...UNITED ABRAB EMIRATES PEST ANALYSIS: POLITICAL: The stable political situation of UAE enough to attract almost any major financial institution that needs to invest. These financial institutions can assist in accessing capital markets emerging within the UAE economy. the banking system developed my emirates is a relationship based system of banking with the monetary policy and system capable enough to fulfill funding supplies of a later stage that may be equity leasing or loans (John, 2010). ECONOMIC: Out of three million population of UAE 60% of them are in the workforce. In the UAE economy the level of FDI is very high. 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. The country has huge wealth and has experienced trade surplus of approximately over 100 billion dirham in the past year (Tomlinson, 2010). SOCIAL: All of UAE citizens have high living standard, a western lifestyle and continues rising financial positions. The society remains free and open to all types of restaurants, tourism, sport and recreational activities. The multicultural nature of society and economy existing in UAE allows fir many of the foreigners to work there in well paid positions (Cateora and Graham, 2007). TECHNOLOGICAL: The UAE population comprise of young and extremely technologically knowledgeable professionals. The IT industry...
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...International Business Environment in India | Brief Analysis | * Sankeerth Reddy * Suveer Neelam * S Kishore | Introduction India is the largest democracy in the world and geographically 7th largest in the world. It is also one of the best countries for international trade. India is developing at a great pace and also has a proud and rich culture. The Census Bureau of USA projected that by 2025 India will be the largest populated country surpassing China. With majority of the population being in the age group of 20-30 years, India has good educated and highly productive work force which enables a significant edge over the rest of the developing countries India relatively has lower percentage of senior citizens than its competitors like U.S and China further reducing the social expenditure for the elderly. India has a lot of natural resources. Iron ore, manganese, titanium ore, mica, petroleum, natural gas, diamond and limestone are some of the abundant natural resources. The coal reserves in India are the fourth largest in the world. 48% of India’s land is arable. Hindi is the most spoken and English is the official language facilitating transactions with other countries. Culture of India India considers religion as important part of its culture. It is to be respected and given importance to succeed in conducting businesses in India. The Indians talk about punctuality but not everyone practices. It is better if appointments are made in advance...
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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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...U.A.E: The Success Story The emergence of the UAE as an economic powerhouse is an example of a country going through a tremendous transformation. From a tiny country with a nomadic society to building the most modern city in the world. The city being Dubai of course. Dubai is the crown jewel of the UAE and the arab world as a whole. Now one of the most sought-after tourist destinations and business hubs for citizens of the world, Dubai’s success story has made many other Middle Eastern nations take notice. In a survey done by the Arab Youth organization, young arabs chose the UAE as “the country they would most like to move to… and the country they would most like their country to emulate” (Badam). The UAE was ahead of 20 other countries, including the United States, Germany and Britain, as young people’s top country to live in. What led to the UAE’s astronomical rise? What policies led to the resources from oil revenues being spent in the most efficient fashion in comparison to other nations? These are the questions I will tackle in this paper. The UAE was established in 1971 when the rulers of the seven independent emirates agreed to instill a unifying constitution. The ruler of Abu Dhabi at the time , Zayed bin Sultan Al Nahyan, was chosen to lead the country. Since then, the ruler of Abu Dhabi is President of the United Arab Emirates, the head of state, and the ruler of Dubai is the Prime Minister of the United Arab Emirates, the head of government. This historic...
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...instrumental role in attracting vast foreign direct investment (FDI). In order to further encourage foreign investment, a number of economic free trade zones have been established across the UAE, offering foreign businesses attractive concessions and a number of investment incentives. The main concessions and incentives offered to entities that establish in the free zones include 100 percent foreign ownership (foreign ownership restrictions apply across the UAE outside of the free zones) and the guarantee of zero percent taxes for a specified period of time (usually for 50 years). Dubai has more than 20 free zones catering to a wide range of business sectors or activities, such as media (Dubai Media City), manufacturing (Jebel Ali Free Zone) and information, communication and technology (Dubai Internet City). Dubai’s economy has been kept open and free to attract investors and business. Government control and regulation of private sector activities has been kept to a minimum. There are no direct taxes on corporate profits or personal income (except for oil companies that pay a flat rate of 55% and branches of foreign banks that pay a flat rate of 20% on net profit generated within Dubai). Customs duties are low at 4% with many exemptions, 100% repatriation of capital and profits is permitted, there are no foreign exchange controls, trade quotas or barriers and a stable exchange rate exists between the US Dollar and the UAE Dirham (US$1.00=AED 3.678). Liberal visa policies permit easy...
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...ER E N U OP A E CON OMY E o o cP p r 4 5 J n 2 1 c n mi a es 1 | u e 0 0 T e h n ig atr i Itrain l rd h C a g P t n n nen t a Ta e n e o a dC ptl lw o te uf o p rt n n a i Fo s fh G lC o eai a o C u c C u t e i C mp r o w t o n i o nr sn o ai n i l i s h O h r iE p r n C u t e te O l x ot g o nr s i i Mag P ees ra etr E R P A C MMISO U OEN O S IN Economic Papers are written by the Staff of the Directorate-General for Economic and Financial Affairs, or by experts working in association with them. The Papers are intended to increase awareness of the technical work being done by staff and to seek comments and suggestions for further analysis. The views expressed are the author’s alone and do not necessarily correspond to those of the European Commission. Comments and enquiries should be addressed to: European Commission Directorate-General for Economic and Financial Affairs Publications B-1049 Brussels Belgium E-mail: Ecfin-Info@ec.europa.eu This paper exists in English only and can be downloaded from the website ec.europa.eu/economy_finance/publications A great deal of additional information is available on the Internet. It can be accessed through the Europa server (ec.europa.eu) KC-AI-10-415-EN-N ISSN 1725-3187 ISBN 978-92-79-14901-6 doi 10.2765/42450 © European Union, 2010 Reproduction is authorised provided the source is acknowledged. The Changing Pattern in International Trade and Capital Flows of the Gulf Cooperation Council Countries in Comparison...
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...Investing in a Rebound The 2010 A .T. Kearney FDI Confidence Index® The Global Business Policy Council is a strategic service that assists chief executives in monitoring and capitalizing on macroeconomic, geopolitical, socio-demographic and technological change worldwide. Council membership is limited to a select group of corporate leaders and their companies. The Council’s core program includes periodic meetings in strategically important parts of the world, tailored analytical products, regular member briefings, regional events and other services. Global Business Policy Council A.T. Kearney, Inc. 8100 Boone Boulevard Suite 400 Vienna, Virginia 22182 U.S.A. 1 703 891 5500 telephone www.atkearney.com I n the two years since A.T. Kearney released its last Foreign Direct Investment Confidence Index, the global economy has faced unprecedented turmoil—a housing market collapse, a banking system teetering on the edge, rising unemployment and falling sales across almost all industries. In the 2010 FDI Confidence Index®, we examine the future prospects for international investment flows in the context of these tumultuous times. While conditions have improved, senior executives at the world’s largest companies remain wary of investing during the current climate, and few expect a full turnaround before 2011. Amid the economic downturn of the past two years, several emerging markets remain attractive to foreign investors. China, India and Brazil are in...
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...business in foreign markets. They ordinarily consist of a parent company located in the home country and at least 5 subsidiaries. These MNCs are company who deals with the globalization. They specialize in production and export those goods that they can produce with the highest relative efficiency and import those good that other nations can produce relatively more efficiently. The emergence and activities of MNCs played an important role and had impacted a huge extent on the concept of globalization. The MNCs create foreign direct investment (FDI), which is defined as a company from one country making a physical investment into building a factory in another country. The FDI are important to a country as it helps to attract the foreigners to invest in their local market which generate cash flow to country. Besides, it boasts the local market and yet increases the GDP of the country. Well, it is said that there are always two sides to a coin. FDI also bring trouble to country where the foreign investors do not have to be completely obedient to the economic policies of the country where they have invested their...
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...Emirates Uae Economics Essay In less than four decades, the United Arab Emirates, a relatively young country, changed from a huge desert to a country that is known today as one of the best in the world to live in. The UAE is a federation of seven monarchies: Abu-Dhabi, Dubai, Sharjah, Ajman, Fujairah, Ras AL- Khaimah and Umm al-Qaiwain. The country is located in the Middle East and is part of the Gulf Cooperation Council which is an economic alliance of six countries bordering the Arab Gulf. Its law is based on Sharia but the UAE is one of the most liberalized countries in the GCC: others beliefs and religions are tolerated. The economy is heavily depending on oil wealth despite the government's efforts to diversify the sources of income. The population is mostly comprised of expatriates (88.52% of the total population in 2010 as per the National Bureau of Statistics estimates). Abu Dhabi, which is known as the driving force in economic, political and decision making process, account for about 90 percent of the oil production, and oil contribute 56% of the entire GDP of the emirates. Dubai is actually the main responsible for the remarkable growth witnessed in the majority of the UAE non-oil sector, Dubai serves as the financial hub in the whole middle east, with commerce, transportation, services and tourism as the driven force of the economy. Its GDP has experienced an exponential growth of around 245% from 2000 to 2011. In the UNDP's Human Development Report 2011, the UAE has...
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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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...Foreign Direct Investment (FDI) as a strategic component of investment is needed by India for its sustained economic growth and development through creation of jobs, expansion of existing manufacturing industries, short and long term project in the field of healthcare, education, research and development (R & D) etc. After independence in India, FDI gained attention of the policy makers for acquiring advanced technology and to mobilize foreign exchange resources. In order to boost the FDI inflows in the country Indian government allowing frequent equity participation to foreign enterprises apart from provides many incentives such as tax concessions, simplification of licensing procedures and de-reserving some industries like drugs, fertilizers, aluminum etc. The first Prime Minister of India pointed out the importance of FDI not just as a source of capital, but for the host of technological and industrial knowledge it would bring with it. India laid out and started following a strategy of import substituting industrialization in the framework of development planning with a focus on encouraging and improving local capability, mostly in heavy industry and machine manufacturing sectors. To compensate for the general limited availability of technology, skills, entrepreneurship, bringing in FDI was one of the top priorities. The 1970s brought in more restrictions. FDI was only allowed in a selected group of core or high priority industries. The Foreign Exchange Regulation...
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...(in crores) | 3953276 | 4582086 | 5303567 | 6091485 | 7157412 | 8279975 | Growth Rates | 9.6 | 9.3 | 6.7 | 8.4 | 8.4 | 6.9 | GNP (in crores) | 3920042 | 4561574 | 5270644 | 6053585 | 7078512 | 8198276 | Growth Rates | 9.5 | 9.7 | 6.5 | 8.4 | 7.9 | 7.0 | Inflation rates | 6.39 | 8.32 | 10.83 | 12.11 | 8.87 | 9.01 | Exports( rate of change) | 25.3 | 14.7 | 28.2 | 0.6 | 35.1 | 29.9 | Imports( rate of change) | 27.3 | 20.4 | 35.8 | -0.8 | 23.4 | 34.5 | Average Exchange Rates | | | | | | | 45.25 | 40.26 | 45.99 | 47.42 | 45.56 | 51.25 | WPI (% change) | 6.6 | 4.7 | 8.1 | 3.8 | 9.6 | 9.1 | CPI (% change) | 6.7 | 6.2 | 9.1 | 12.4 | 10.4 | 8.4 | Current Account Deficit(% GDP) | -1.0 | -1.3 | -2.3 | -2.8 | -2.7 | -3.7 | FDI Inflows( in mn) | 503573 | 797356 | 1397255 | 1309799 | 960150 | 1273623 | FII Inflows(in mn) | 14640 | 43325 | 8311 | 50361 | 41597 | 39177 | Macroeconomic variables are indicators that signal the current trends in the economy. Major challenges of macroeconomic policymaking include managing growth and price stability. After growing at 8.4% for 2009-10 and 2010-11 the growth rate fell down to 6.9%. This indicates a slowdown compared not just to the previous two years but 2003 to 2011 (except 2008-9). However, by any cross country analysis India remains among the front-runners. With agriculture and services continuing to perform well, India‘s slowdown can be attributed almost entirely to weakening industrial growth. Monetary policy...
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