Premium Essay

United Arab Emirates

In: Business and Management

Submitted By Geotis
Words 1940
Pages 8
United Arab Emirates (UAE)
Modes of Entry
1. Exporting -Indirect exporting means that the company does not deal with foreign customers or companies by itself but uses intermediates such as export companies, export agents, or export partner network to take care of all export activity. Indirect exporting should be taken into consideration if a company’s own prerequisites in international business are not enough and if the intermediate’s resources as well as the know-how benefit the company. This entry alternative has quite low risks for the exporter. However, indirect exporting is expensive since each intermediate takes their compensation and it adds up to the final price of the product. Other hindrances are the missed opportunities to develop relationships and a company might only have minor contacts to foreign markets and customers. (Vahvaselkä 2009, 73-74.) In direct exporting the company takes care of the exporting activity by itself. The company is in contact with the intermediates in the target market such as import agents, retailers, or brokers. It is essential for the company to know the markets, pick the agent or distributor carefully and posses the knowledge in marketing as well as exporting routines. Direct exporting requires professional personnel and a company’s own export organization as well as more risk taking and better exporting knowledge than indirect exporting. Benefits in direct exporting are shorter distribution channels, smaller distribution expenses as well as closer connection to the end user and greater potential return. (Vahvaselkä 2009,74; Kotler & Amstrong 2008, 553.) Czinkota et all (1998, 374) state that these companies are more likely to learn their competitive ad-vantage quicker and therefore expand more rapidly. They will also have better control in their international business activities and building relationships with their...

Similar Documents

Premium Essay

United Arab Emirates

...UNITED ARAB EMIRATES ISU 6/1/2012 Mak'an Dakwal United Arab Emirates. The United Arab Emirates is a Middle East country that is located in between Saudi Arabia and Oman. It is in the eastern part of the Arabian Peninsula. UAE has a total land area of 36,278 square miles. (Daily Almanac, 2012). Saudi Arabia borders UAE in the west and south, Qatar borders it in the north and Oman to the west. The United Arab Emirates is made up of seven emirates bound by an official constitution. The seven emirates are also the seven Trucial states which are Abu Dhabi, Dubai, Umm al-Qaiwain, Ras al-Khaiman, Sharjah, Ajman, and Fujairah. They were brought together under one government on 2nd December, 1971. (Daily Almanac, 2012). Abu Dhabi is the largest of them and it is also the official capital. It makes up 85% of the total land area of the country. The smallest emirate is Ajman. The government of UAE consists of a president, prime minister and the seven emirates are each headed by emirs. The culture and tradition of the UAE is strongly structured on Islamic rules and laws. (Daily Almanac, 2012). Almost all indigenes of the UAE are Muslim by religion; Islam is the national religion in the Arab land. Issues concerning marriage, divorce, inheritance, economics, politics, and personal conduct are governed by Sharia (Islamic) law. A majority of UAE Muslims are Sunnis and the minority sect is the......

Words: 2316 - Pages: 10

Premium Essay

Economy of United Arab Emirates

...The Economy of United Arab Emirates The Economy of the United Arab Emirates is very unique in regards to transformation and growth. The country’s main economic source was always oil but now the country has become much more diversified and “71% of the country’s total GDP comes from non-oil sectors” (“Economy of the United Arab Emirates,” 2014). During the past thirty years, the country has gone through a complete economic shift. In the 1970s, The UAE was a poverty-stricken country but the economy grew quickly when oil was discovered and by 2009, 85% of the country’s economy came from oil exports. Since 2009, the government has been focusing more on growth of the economy in other areas such as tourism and international finance, especially in Dubai, but the city of Abu Dhabi still relies heavily on oil exports. The UAE is the world’s eighth largest oil producer and maintains a free-market economy. Economic growth in the UAE has been steady and continuous, except for a short economic downfall near the end of 2009, around the same time as many other countries, including the USA, were in a recession. Dubai was impacted the most, but “In December 2009, Dubai received an additional $10 billion loan from the emirate of Abu Dhabi” (“Central Intelligence Agency,”2014). The economy completely recovered with the help of high oil prices, increased government spending and a focus on tourism. The GDP of the UAE in 2013 was 269.8 billion and the income per capita was also......

Words: 313 - Pages: 2

Premium Essay

United Arab Emirates Business Report

...Communications Prepared by Roy Gasaway April 1, 2014 TO: Margaret Blue FROM: Roy Gasaway DATE: April 1, 2014 SUBJECT: Guidelines For Doing Business in The United Arab Emirates Here is the report you sanctioned on doing business in the United Arab Emirates (UAE). UAE is a well-established logistics hub providing access to markets in the Gulf, the Middle East, Africa, Eastern Europe, the Indian Subcontinent and the rest of Asia. The local emirate government closely parallels the federal government construct. A member of the ruling family constitutes the executive. Executing the directives of the executive are various ministries and other departments. The ministries and other departments, together with governmental agencies constitute the emirates governing bodies. This federal system of governance has provided for a stable political environment granting an attractive destination for international investment. Thank you for the opportunity to prepare this report. If I can provide additional help on our quest to bring our business to the UAE, please contact me. Attachment Executive Summary The UAE is one of the fastest growing markets in the Middle East. Peaceful and prosperous, the UAE offers businesses unlimited business opportunities in a diverse open economy. Located in the Arab Peninsula, the UAE is a well-established logistics hub providing access to markets in the Gulf, the Middle East, Africa, Eastern Europe, the Indian Subcontinent and......

Words: 3918 - Pages: 16

Premium Essay

Insurance Sector in the United Arab Emirates

...First: General Frame of the Insurance Sector in the United Arab Emirates: The Insurance Sector in the United Arab Emirates is organized by the Federal Law No. (6) of 2007 on Establishment of the Insurance Authority and Organization of the Insurance Operations which came into effect as on August 28th,2007 and the Board of Directors Resolution No.2 of 2009 on issuance of the executive regulations of Federal law No. (9) of 1984 of the said Federal Law and the issued and will be issued rules, regulations and resolutions according to the provisions of the Law. The Federal Law No (6) of 2007 on Establishment of the Insurance Authority and Organization of the Insurance Operations entrusted the Insurance Authority with the enforcement of the provisions therein and to undertake its role in supervision and control of insurance companies and other insurance related professions so as to provide a suitable environment for the development of the insurance sector, and to enhance its role in the security of individuals, properties and liabilities against risks, and to protect the national economy, build up, develop and invest in the national savings to support the economic development of the State and to provide better services in suitable prices and cover in a competitive environment, and to emirtize jobs in the insurance sector. Insurance Companies: 60 Insurance Companies; (34 national insurance companies and 26 foreign insurance companies). The number of companies......

Words: 463 - Pages: 2

Premium Essay

Compensation Regulations in United Arab Emirates and Usa

...Abstract Compensation Regulations in United Arab Emirates and USA In the Middle East which makes more headlines for wars and security issues the United Arab Emirates has managed to turn itself into a hub for business, career opportunities and life style. Dubai International Airport edged out London's Heathrow to become the busiest airport globally for international passengers in the first quarter of 2014. Dubai's main hub handled 18.4 million international passengers in the first quarter compared to 16 million passengers handled by Heathrow. Also, according to the MasterCard Global Destination Cities Index, Dubai jumped ahead of New York and Istanbul, to move from seventh place in 2013, to be named the fifth most popular city in the world for international travelers. The emirate is estimated to receive almost 12 million overnight international visitors in 2014, up 7.5% from 2013. In addition, the Dubai Financial Market (DFM) is up 46.5% YTD making it one of the best performing stock markets globally. Therefore in a global marketplace and when it comes to attracting talented employees the UAE is faring well. It was voted 3rd preferred country for UK expatriates (after Canada and Australia), and happiest place in the Arab world to live (and world’s 14th happiest place overall). (Awad, 2014) The United Arab Emirates is a monarchy initially known for its oil and has grown into both an oil and trade capital for the Middle East is located is a country located in......

Words: 1757 - Pages: 8

Premium Essay

Pest Analysis of the United Arab Emirates Economics

...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......

Words: 492 - Pages: 2

Premium Essay

Gender Equity in Workforce in United Arab Emirates

...According to World Bank, 60% (2014) of the high school teachers are females (, 2016). Teaching is considered as a profession for females especially for kindergarten and high school teachers (almost 3/4 teachers are females) (Rich, 2014). On an average, Jobs controlled by women pay less compared to those with more men. Philip N. Cohen, a sociologist at the University of Maryland said that “We’re not past having a cultural devaluation of women’s work, So that if a job is done primarily by women, people tend to believe it has less value” (Rich, 2014). Professor of sociology, named Richard M. Ingersoll at the University of Pennsylvania examined data on education department on the demographics of teaching and he said “It will be less and less in their (males) head that this (teaching) is an occupation for males” (Rich, 2014). Christine L. Williams, a professor of sociology at the University of Texas, who studied the glass escalator, said that women are not very keen on having males entering teaching profession as they get promoted more rapidly into senior administrative positions than females (Rich, 2014). Teachers working in public schools in U.A.E., have two categories, Emiratis and expatriates. There is a surplus in Emirati women teachers in government schools. But there are restrictions by the government which forbids women to teach boys from 10th grade and which is why more Emirati male teachers are demanded but there are very few who are willing to do......

Words: 387 - Pages: 2

Premium Essay

Oil and the Recent ‟Dutch Disease‟ - the Case of the United Arab Emirates

...Oil and the recent ‟Dutch Disease‟ - The Case of the United Arab Emirates Report Submitted by: Amitava Manna Abstract: In economics, the Dutch disease is a concept that purportedly explains the apparent relationship between the increase in exploitation of natural resources and a decline in the manufacturing sector. The claimed mechanism is that an increase in revenues from natural resources (or inflows of foreign aid) will make a given nation's currency stronger compared to that of other nations (manifest in an exchange rate), resulting in the nation's other exports becoming more expensive for other countries to buy, making the manufacturing sector less competitive. While it most often refers to natural resource discovery, it can also refer to "any development that results in a large inflow of foreign currency, including a sharp surge in natural resource prices, foreign assistance, and foreign direct investment". According to the Dutch Disease core model a boom in natural resources will eventually lead to a shift of production between sectors: from tradable goods to non-tradable goods. United Arab Emirates has been a subject to any of the effects caused by the disease, due to the oil boom during the 1970s and the huge development that has appeared in the country. If the United Arab Emirates is be a victim of the disease, the decline in exports of the natural resource will result in a decline in the non-oil......

Words: 2213 - Pages: 9

Premium Essay

Adoption of Information Technology in E-Business in United Arab Emirates

...IEEE International Conference on e-Business Engineering A CASE STUDY: ADOPTION OF INFORMATION TECHNOLOGY IN E-BUSINESS OF UNITED ARAB EMIRATES Fahim Akhter College of Information Technology Zayed University Dubai - United Arab Emirates Keywords: Abstract: Electronic Commerce, Internet, Online Shopping, United Arab Emirates This research conducted to identify factors that affect e-commerce adoption among people of United Arab Emirates. The focus of this research is to discover at what extent security and privacy factors contribute to the adoption of e-commerce. This study has been designed to explore why online shopping is growing so fast among some users, and so slowly among others. 2051 questionnaires were distributed by using different media such as email and Internet to the subjects and received back only 21% questionnaires from respondents. The result shows that all of the independent variables played important roles in determining the adoption of e-commerce and created a gap between users who are adopting e-commerce and those who have not. The finding also shows that there are two significant factors, making an impact on the adoption of e-commerce, which are the user’s educational background and their understanding of security features implemented by the vendors. 1 INTRODUCTION The United Arab Emirates (U.A.E) has made major efforts to establish itself as an e-commerce hub in the Middle East region and established itself on a par...

Words: 2563 - Pages: 11

Premium Essay

Hans Engineering Inc. Expanding to

...Hans Engineering Inc. Expanding to United Arab Emirates Prepared for Mr. Steven Salvatore CEO of Hans Engineering Inc. Albany, New York, 10012 Prepared by Alicia Maharaj Whiteman AFB, Missouri, 65305 March 2, 2014 HANS ENGINEERING Inc. 1500 NW Pine Street, Albany, New York, 10012 (800) 525-1886 MAKING THE WORLD BETTER, ONE BUILDING AT A TIME! HANS ENGINEERING Inc. 1500 NW Pine Street, Albany, New York, 10012 (800) 525-1886 MAKING THE WORLD BETTER, ONE BUILDING AT A TIME! Alicia Maharaj 520 Longwood Drive Whiteman Air Force Base, MO 65305 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...

Words: 5509 - Pages: 23

Premium Essay

Doing Business in Uae

...D Economy Profile 2015 United Arab Emirates Doing Business 2015 2 United Arab Emirates © 2014 The International Bank for Reconstruction and Development / The World Bank 1818 H Street NW, Washington, DC 20433 Telephone: 202-473-1000; Internet: All rights reserved. 1 2 3 4 17 16 15 14 This work is a product of the staff of The World Bank with external contributions. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. Nothing herein shall constitute or be considered to be a limitation upon or waiver of the privileges and immunities of The World Bank, all of which are specifically reserved. This work is available under the Creative Commons Attribution 3.0 Unported license (CC BY 3.0) Under the Creative Commons Attribution license, you are free to copy, distribute, transmit, and adapt this work, including for commercial purposes, under the following conditions: Attribution—Please cite the work as follows:......

Words: 25008 - Pages: 101

Premium Essay

Doing Business in the Uae

...understanding of doing business in the United Arab Emirates. It contains a general overview of the UAE including the states names, their rulers, the political and legal system and also major religion of the country, Islam. The body of the report covers many of the basic differences and cultural imperatives, adiaphoras and exclusives, which are then compared to Australian western culture. Differences and similarities in greetings, such as the shaking of hands are covered. The report then goes on to cover such issues as the interactions between males and females, issues that can arise due to religious obligations such as prayer 5 times a day and the holy month of Ramadan. Other issues such as how the Arab culture run business in a much more personal manner than in western culture, and how building personal relationships and trust are much more important than the efficiency of getting a project completed. Also covered is how the Arab culture value spoken agreements over written agreements, how a meeting in the United Arab Emirates might take place and how a foreign businessman might react or act in those meetings. Finally negotiation was covered and then a conclusion of what I learnt and my final thoughts. When I started this assignment, I wanted to learn about a country that was rich in culture but was also at the forefront of international business. I thought that the United Arab Emirates would be the ideal country. I knew little about the Arab state apart from the......

Words: 2566 - Pages: 11

Premium Essay


...The United Arab Emirates (UAE) is a Middle Eastern federation of seven states situated in the southeast of the Arabian Peninsula in Southwest Asia on the Persian Gulf, bordering Oman and Saudi Arabia. The seven states, termed emirates, are Abu Dhabi, Ajman, Dubai, Fujairah, Ras al-Khaimah, Sharjah, and Umm al-Quwain. Independence (1971). By 1966 it had become clear the British Government could no longer afford to administer and protect what is now the United Arab Emirates. British MPs debated the preparedness of the Royal Navy to defend the trucial sheikhdoms. Secretary of State for Defence Denis Healey reported that the British Armed Forces were seriously overstretched and in some respects dangerously under-equipped to defend the trucial sheikhdoms. On 24 January 1968, British Prime Minister Harold Wilson announced the government's decision, reaffirmed in March 1971 by Prime Minister Edward Heath to end the treaty relationships with the seven Trucial sheikhdoms that had been, together with Bahrain and Qatar, under British protection. Days after the announcement, the ruler of Abu Dhabi Sheikh Zayed bin Sultan Al Nahyan, fearing vulnerability, tried to persuade the British to honour the protection treaties by offering to pay the full costs of keeping the British Armed Forces in the Emirates. The British Labour government rejected the offer.[32] After Labour MP Goronwy Roberts informed Sheikh Zayed of the news of British withdrawal, the nine Gulf sheikhdoms attempted to......

Words: 2192 - Pages: 9

Premium Essay


...Globalization Globalization has been by far, great for most nations by enhancing the economy, technology, imported and exported labor, as well as the growth of industries and investments. Downfalls such as increased pollution, lost culture and the enhanced spread of disease are there, but in my opinion does not out-way the positivity. It is with no doubt that Western-based globalization has affected many areas of the World as well. Prior to World War II, many nations were very poor, overpopulated and did without most of the perks that Western cultures thrived on, such as technology and resources. The Philippines and the United Arab Emirates were two groups that were dramatically affected. Mainly from oil and agricultural trade with the Western countries, the United Arab Emirates and the Philippines were both drastically changed with an increase in financial gain, trade and technology. The Philippines is a country of ups and downs of conspicuous consumption of devastating poverty, hunger and suffering. The economy is basically agricultural, with rice, corn, and kamote (sweet potatoes) the staple food crops. (Globalization in the Philippines, 2010) Prior to globalization, the Philippines were unprepared and undeveloped as a nation with so many resources to share with others. Minerals were a large resource in this country, with no way to gain economically as a separate entity. Thanks to globalization, it has opened its economy to foreign trade and investment.......

Words: 821 - Pages: 4

Premium Essay

Uae Economy

...The United Arab 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......

Words: 1512 - Pages: 7