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If you are believing about opening up and get downing a concern in UAE there are some things you will desire to take into consideration before you take the dip and seek to travel to the United Arab Emirates to work on your new concern venture.

Before you jump in excessively deep with your concern thought, you should garner as much local cognition of the part as possible. You should particularly look into the industry that you are interested in working in with your concern. You will necessitate to develop a feasible concern program for your concern that includes prediction and a study of current market conditions. You should already hold investors in topographic point for your venture if possible. The jurisprudence states that you are required to hold a local spouse in Dubai that holds the bulk involvement in the company. This means that the spouse can command the concern and it can be an single or a company. The spouse does non hold to lend financially to the start up concern. You will necessitate to register your concern every bit good. Once it is registered you will hold to demo cogent evidence of sufficient fiscal resources to put to the Ministry of Commerce. The sum you need to hold tends to change but it someplace between $ 10,000 and $ 50,000. This sum is used as a warrant against liabilities ; nevertheless you are allowed to retreat it after you have shown that you have it.

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The United Arab Emirates ( UAE ) is a federation of seven Emirates each headed by a governing household. When we are speaking about the political factors the UAE has a alone political system in that it brings a clear position of both traditional and modern construction that have enabled the state to keep great political stableness. As I antecedently mentioned the state is comprised of seven Emirates each of which is lead by a swayer who inherits this place, and the swayer of the Emirates make up the supreme Council of the federation where the to policy doing body the state. The president is elected from within this group by the swayers. Sheikh Zayed bin Sultan Al Nahayan has been president and head of province since the constitution of UAE.

When we are speaking about the judicial system the UAE Constitution provides for a federal tribunal system. But each component Emirate they can keep their ain independent tribunal system. Presently the Emirates of Abu Dhabi, Sharjah, Ajman, Fujiairah, and Umm Al Quwain have joined the federal tribunal system.

Talking about the Trading policies the UAE is a by and large broad and progressively diversified economic system, the importance of trade for its economic public presentation, its comparatively low boundary line barriers to merchandise, and its turning economic power make it an progressively of import protagonist of the many-sided trading system. In 1996 UAE was a founding member of the World Trade Organization ( WTO ) where it had been moving as a undertaking party to the GATT since 8 March 1994. Equally good as the UAE was a founding member of the Gulf Cooperation Council ( GCC ) created on 25th May 1981 at Summit conference in Abu Dhabi, where it including Saudi Arabia, Kuwait, Oman, Qatar, and every bit good as UAE. In 1997 UAE was a founding member of the Greater Arab Free Trade Area ( GAFTA ) signed on 19th February 1997 and in force since 1st January 1998. The GAFTA has contributed modestly to increase inter-Arab trade 8-9 % of entire Arab trade with the universe, from 4-5 % in the 1990s.

When we are concentrating for the authorities construction of UAE there are no elections or legal political parties and assorted authorities factors which helped Dubai and Abu Dhabi to accomplish their position in the Gulf, include where the building sector, fabricating sector, trade every bit good as authorities policies like no revenue enhancement and easy to hold bank loans it makes easy for the new investors to achieve a new concern in UAE every bit good as have several free zones offering 100 % ownership to non-nationals including Jebel Ali Free Zone as a major base for attained for warehousing, regional distribution Centre for transnational companies and service companies including many planetary leaders and the Dubai Air port free zone besides offers concern chances in Information engineering merchandises, juwelary, luxery points, air power industry related concern.

Beginning: UAE Business Structure hypertext transfer protocol: //www.economy.ae 2009

The UAE authorities besides provided modern engineering in disposal and for the concern development by taking lead in certain facet of online selling such as E-commerce concern to concern ( B2B ) web selling of Tejari.com, is a success and good known narrative as it focus on authorities and privet sector contracts and tendering processs enabling for both national and international concern investors or the companies make easier entree to take part in development undertakings and do concern more easy and efficient. When we are concentrating for the Labour Law in UAE is slackly based on the international Labour Organization ‘s theoretical account under UAE Law No. 8 of 1980, as amended by Law No.12 of 1986 ( the Labour Law ) governs most facet of employer/employee dealingss like hours of work, leave, expiration rights, medical benefits and repatriation. Talking about the concern freedom in UAE by and large the overall freedom to get down a operate and shut a concern is limited, by the UAE regulative organic structures under the legal factors. Get downing a concern takes less than half the universe norm of 38 yearss although the minimal capital demand remains dearly-won obtaining a concern licence takes less than the universe norm of 225 yearss. On the other manus UAE is weak in concern freedom, investing freedom and belongings rights. Foreign investing remains restricted and the authorities has tried to streamline the regulative procedure and besides the bench remains more vulnerable to political influence.

Impact of Economic Factors

It is of import for understanding the economic factors in UAE therefore UAE ‘s has an unfastened and free economic system system and it has taken advantage for attract more investors and concern. Government control and ordinance of private sector activities has been kept to be minimal and there are no direct revenue enhancements on cooperate net incomes or personal income[ 1 ]( except for oil companies that pay a level rate of 55 % and subdivisions of foreign Bankss that pay a level rate of 20 % on net net income generated within UAE. ) every bit good as the[ 2 ]imposts responsibilities are really low demoing 4 % with many freedoms, 100 % repatriation of capital and net incomes is permitted, and besides UAE there are no foreign exchange controls where else trade quotas or barriers and stable exchange rate issues between the US Dollar and UAE Dirham ( US $ 1.00=AED 3.678 ) .

The two chief metropoliss in UAE are Dubai and Abu Dhabi where the capital metropolis, Dubai has been ranked as the figure one concern metropolis and Abu Dhabi ranked as the forth place among the top 10 concern metropoliss in the GCC part. Both the metropoliss were selected on the footing of trade investing undertaking and assorted other industrial developments in the new millenary, compared to the other Gulf metropoliss like Doha, Kuwait metropolis, Manama, Muscat, Jeddah among others.

There are several advantages to taking the United Arab Emirates ( “ UAE ” ) , and in peculiar Dubai, as the base and field for your joint venture concern or undertaking. Some of these advantages have already been touched upon earlier and other advantages will be noted in this subdivision.

When we are concentrating for the economic and the political background, the UAE has a stable economic system where it provides a alone geographical location for worldwide concern chances. Many Bankss and industrial companies have taken advantage of the UAE location most likely the free zone and this location will assisting to greatly increase the UAE ‘s skilled working population in approaching old ages. UAE the turning work force of high income earners consequences to increased the demand on rental belongingss. The Dubai, Abu Dhabi and Ajman are the chief existent estate investing markets each of these parts provide impressive capital growing for possible investors to derive farther output benefits from high rental demand from fast turning population in each emirates. By and large the UAE rising prices is high averaging 10.2 % between 2005 and 2007. Where the authorities influences monetary values through ordinances subsidies and legion province owned endeavors and public-service corporations, including oil, gas, electricity, and communicating.

Annual Data and Forecast

2003

2004

2005

2006

2007

2008

2009*

GDP

A A A Nominal GDP ( US $ m )

87,599

105,237

132,184

163,145

184,111

229,639

248,792

A A A Nominal GDP ( AED m )

321,752

386,535

485,513

599,231

676,239

843,464

913,812

A A A Real GDP Growth ( % )

11.9

9.7

8.2

9.4

7.5

8.3

8.2

Beginning of GDP ( % existent alteration )

A A A Agriculture

0.3

9.7

6.0

5.0

2.0

2.0

2.5

A A A Industry

12.7

7.3

5.0

10.3

4.3

7.9

7.7

A A A Services

11.8

12.6

12.1

8.7

11.5

9.0

9.0

Population & A ; Income

A A A Population ( m )

4.0

4.3

4.6

4.9

5.2

5.5

5.7

A A A GDP per Capita ( US $ at PPP )

23,080

24,362

25,430

26,818

27,933

29,578

31,542

Fiscal Indexs

Exchange Rate Dh: US $ A A A A A A A A A A

3.7

3.7

3.7

3.7

3.7

3.7

3.7

Exchange Rate Dh: a‚¬ ( end-period )

4.6

5.0

4.3

4.9

5.4

5.7

5.4

Stock of Money M2 ( % Change )

15.5

23.8

30.5

23.2

41.7

28.2

19.0

Lending Interest Rate ( avg ; % )

5.8

5.9

7.2

7.9

7.8

5.3

5.8

Current Account ( US $ m )

Current -account balance

7,552

10,589

24,375

35,871

31,569

56,561

46,163

International Reserves ( US $ m )

Entire International Militias

15,088

18,530

21,010

27,617

77,239

87,239

95,239

* The Economist Intelligence Unit Forecast

3

.

Forecast Summary

A

A

A

A

( % unless otherwise mentioned )

A

A

A

A

A

A

A

A

A

A

2006

2007

2008

2009

Real GDP Growth

9.4

7.5

8.3

8.2

Oil Production ( ‘000b/d )

2620

2510

2634

2768

Crude Oil Exports ( US $ m )

56377

58363

101986

98800

Consumer Price Inflation

13.5

14

16

13

Deposit Rate

5.2

4.8

2.3

2.8

Government Balance ( % GDP )

12.1

11.3

20.1

16.2

Exports of Goods watch pocket ( US $ bn )

142.5

156.6

210.4

215.5

Imports of Goods watch pocket ( US $ bn )

86.1

101.6

125

140

Current Account Balance ( US $ bn )

35.9

31.16

56.6

46.2

Current Account Balance ( % of GDP )

22

17.1

24.6

18.6

External Debt ( year-end ; US $ bn )

45.8

57.5

68.4

74.6

Exchange Rate Dh: US $ ( Ab. )

3.67

3.67

3.67

3.67

Exchange Rate Dh: A?100 ( av. )

3.16

3.12

3.53

3.69[ 4 ]

Beginning: Emirates Contribution to GDP ( hypertext transfer protocol: //www.dorchesterinvestment.net[ 5 ])

Industries in UAE

.

6

Impact of Social Factors

Social factors are the other of import factors for the new concern venture in UAE such as, numerical strength ratio, gender ratio and the distribution of a population norm 4,798, 491 ( estimation is based on the consequences of the 2009 nose count ) A and these factors will find the class of its future transmutation. So these factors will positively or adversely impact the life of every section of society, based on their nature and way. Thus the figure of the population and its distribution such as gender and age construction are some of the important factors that conveying approximately clear position of the societal alteration. And the Education and the Literacy rate are the other of import societal factors in UAE. UAE the public educational disbursement is[ 7 ]27.43 % , which ranks 7th in the universe. But UAE literacy rate is really low out of all the Gulf States at 77.9 % compared to the United States rate of 99 % . The UAE has a long manner to accomplish the educational statics of the western civilizations. Largely the UAE high disbursement in instruction has paid off for the younger coevals where the age between 15-24 and their literacy rate is demoing far more better than the overall mean rate as I mentioned before where the rate of 77.9 % on the other manus their literacy rate is above the norm and it makes easy for the whole society every bit good as the working population to come in to the concern universe and to attained in their plants and every bit good as it will do easy for the concern proprietors to do their hereafter better.

Impact of Technological factors

Technological factors are the other indispensable factors for the new concern ventures in UAE. In term of technological preparedness is mean rank for 27th and the UAE enjoys first-class IT substructure such as ranking foremost among Arab states on cyberspace users rate, first worldwide on nomadic telephone call cost. But the monetary values for telecommunications services are really high and the highest rank around the universe. And besides there are some limitations on cyberspace. Above are some of import factors in IT substructure. In UAE the users of IT include mainly factors of society such as private consumers, concern, authorities, military, and educational installations. The entire cyberspace endorsers on the norm to be 300,000, single 120,000, Universities/Schools 60,0000, companies 90,000 and authorities 30.000.

Concentrating for the transit factor UAE there is an extended high quality route web, gasoline is really inexpensive, and traffic ordinances are really rigorous every bit good as UAE is strategically located for trade and concern intents with both Europe and Asia every bit good the Soviet provinces, Hong Kong and Japan. In add-on the transit routes to North America are many, unlike many offshore legal powers where the concern travellers must pass eternal hours, multiple connexions and limited flights handiness to make the coveted finish there is easy entree in and out of Dubai and the Emirates. There are over 90 constituted bearers such as British air ways, Singapore air hoses, Air France, KLM, Cathy Pacific, Swiss air, Ethihad, Emirates, and Gulf Air and many other international bearers runing daily scheduled flights to over 120 major metropoliss and there are current programs to implement a direct flight on a day-to-day footing from Dubai to New York City. Concentrating for the above transit factors I think it makes easy for the new concern ventures to achieve their concern in UAE because high quality route webs, and the gasoline has seen to be really inexpensive and there are over 90 air passages in UAE so these factors clearly figure out some several advantages to taking UAE as the based on your concern venture.

Impact of Environmental factors.

The above is the other of import factor for the new concern ventures in UAE. So given the crisp focal point on the environmental factors there are some advantages and every bit good as disadvantages, when we are choosing the major base for our new venture company or the concern I think it is appropriate that the capital metropolis Abu Dhabi and Dubai should be selected as the major base for the new concern ventures in UAE as I mentioned before because Dubai has been ranked as the figure one concern metropolis. In add-on when we are concentrating for the industries the UAE is one of the most promising steel market in GCC part with production reached to 1.7 million dozenss in twelvemonth 2006, building roar cheap and dependable gas and energy supply besides the geographical placement are the chief drive forces for the steel industry and good as the Oil industry in UAE.

Talking about the planetary factors the clime of the UAE is by and large hot and dry, land usage merely 0.6 % of the UAE is considered to be cultivable land and 2.3 % of the land is planted to lasting harvests. Concentrating for the investor ‘s value factor for many old ages the UAE has offered investors an efficient base from which to carry on concern with the five other GCC provinces. Many of these investors are international family names. When we are looking for the environment issues, UAE the major environmental issues are urbanization where this factor is perilously affect for the traditional economic system in UAE ( subsitence piscaries, oasis agribusiness and farm animal ) for illustration home ground for wildlife has been lost due to urbarnisation and industrial development, over fishing and overgrazing are impacting the environment every bit good as the fast urbanisation is conveying jobs of waste direction and pollutions are lifting particularly from the new industrial composites, but besides due to the oil trade. So when we are looking for the above environment factors as I mentioned before there are some advantages and good as disadvantages. When we are choosing the UAE as our major base for new concern venture we have to be more concern about the above factors because when we are refering about those factors we can easy get down up a concern in UAE with peaceable manner.

Hazard Analysis

Political and legal factor

PESTLE Analysis Factor

Great Menace

1

2

3

4

5

Great Opportunities

Trading policies

A

A

A

A

A

5

There are many merchandising policies in UAE.

Support, grants and enterprises

A

A

A

A

5

Giving out grants numbering Dh2.5 million in an enterprise to promote societal and educational non-profit organisations.

Home market lobbying/pressure groups

A *********************

A

A

A

A

*********************

International force per unit area groups

Pressure groups are high in UAE

A

A

3

A

A

Wars and struggle

A

A

A

3

A

A

Gulf war 1991

Govt. policies

1

A

A

A

A

Federal govt. policies.

Elections

A

A

A

A

4A

No elections

Terrorism

Terrorism menace is high in UAE

2

A

A

A

A

Political tendencies

A ********************

A

A

A

A

******************

Governmental leading

A

A

A

A

A

5

Stable

Internal political issues

No immediate menaces

A

A

A

5A

A Favorable

Political Structure

A

A

A

3

A

A

In three degrees

Judicial System

A

2

A

A

A

Supreme Court Council

Sum

A

Current statute law place market

*********************

A

A

A

A

A **********************

European/international statute law

*********************

A

A

A

A

A **********************

Employment jurisprudence

Everyparty ‘s rights under the Labour Law but it can non take or cut down any.

A

A

3

A

A

Employment under UAE Law No. 8 of 1980 as amended ( the Labour Law )

Consumer protection

A

A

A

A

4

A

Consumer protection Law In UAE.

Industry-specific ordinances

A *********************

A

A

A

A

***********************

Ecological/environmental Law

A

A

A

3

A

A

Sum

48

A

Economic Factor

A

PESTLE Analysis Factor

Great Menace

1

2

3

4

5

Great Opportunities

Home economic system state of affairs

A

A

A

A

4

A

Aiming to manner out from the recessions.

Home economic system tendencies

A ************

A

A

A

A

*********************

Abroad economic systems and tendencies

A ************

A

A

A

A

*********************

General revenue enhancement issues

A

A

A

A 5

A Not high

Seasonality/weather issues

************

A

A

A

A

A *********************

Market and trade rhythms

*********************

A

A

A

A

A ********************

Specific industry factors

A

A

A

A

A 5

Industries are high

International trade/monetary issues

*************

A

A

A

A

A *********************

Disposable income

A

A

A

A

A

5

UAE receive the highest disposable income in the universe averaging more than US $ 220,000.

Job growth/unemployment

Unemployment rate improbable to lift in the UAE

1

A

A

A

A

A

Interests and Exchange rates

A

A

A

A

A

5

The best exchange rates are in UAE

Duties

A

A

4A

A

A Duty rate is non high

Inflation

A

A 3

A

A

Inflation rate in UAE will come down to 3.5 in this twelvemonth.

Consumer assurance index

A ***********************

A

A

A

A

**********************

Import/export ratios

A ***********************

A

A

A

A

**********************

Production degree

A ***********************

A

A

A

A

**********************

GDP/GNP

A

A 4

A

A

A Stimulus high

Per Capita Income

A

A

A

A

A

5

high

Sum

41

A

Social factor

A

PESTLE Analysis Factor

Great Menace

1

2

3

4

5

Great Opportunities

Consumer attitudes and sentiments

A

A

A

A

A

5

Highly high in UAE

Media positions

A

A

A 4

A

A High media positions in UAE

Law alterations impacting societal factors

************

A

A

A

A

A *********************************

Consumer purchasing forms

A ************

A

A

A

A

**********************************

Ethnic/religious factors

************

A

A

A

A

A **********************************

Ad and promotion

A ************

A

A

A

A

**********************************

Ethical issues

************

A

A

A

A

A **********************************

Demographics ( age, gender, race, household size, )

A

A

A

3

A

A

High demographic spread in UAE

Lifestyle alterations

A ***********

A

A

A

A

**********************************

Population displacements

A

A

A

A

A

5

Remain really high in UAE

Education

A

A

A

5

Concentrating more for the instruction

Immigration/emigration

A ***********

A

A

A

A

**********************************

Attitudes to work

A

A

A

A

A

5

High in UAE

Attitudes to people making certain types of work

A ***********

A

A

A

A

**********************************

Leisure activities

A

A

A

A

4

A

In high criterions in UAE

Employee attitudes

A

A

3

A

A

A High public presentation squad in UAE

Management manner

************

A

A

A

A

A **********************************

Organizational civilization

A ***********

A

A

A

A

**********************************

Sum

39

A

A

A

A

Technological factor

PESTLE Analysis Factor

Great Menace

1

2

3

4

5

Great Opportunities

Technology development

A

A

A

A

A

5

Willing to built high engineering in UAE

Associated/dependent engineerings

******************

A

A

A

A

A ***********************

Consumer purchasing mechanisms/technology

A ******************

A

A

A

A

************************

Technology statute law

******************

A

A

A

A

A ***********************

Innovation potency

A

A

A

A

4

A

UAE has high potency for invention.

Technology entree, licensing, patents

A

A

A

A

A

5

Patents to protect technological inventions.

Intellectual belongings issues

A *******************

A

A

A

A

************************

Global communications

A

A

A

A

A

5

Internet communicating.

Inventions

A

A

A

A

4

A

UAE health care innovations 2007

Inventions

********************A

A

A

A

A

***********************

Communicationss

A

A

A

A

A

5

Chiefly the land phones and Mobiles.

Information engineering

A

A

3

A

A

A IT substructure

Transportation system

A

A

A

A

A

5

Handiness of transit.

Waste removal/recycling

A ********************

A

A

A

A

************************

M-learning

A

A

A

A

A

5

M-Learning is in a underdeveloped stage.

E-learning

A

A

A

A

A

5

UAE purposes for the E-learning

Sum

41

A

A

Environmental factor

PESTLE Analysis Factor

Great Menace

1

2

3

4

5

Great Opportunities

Environmental issues

High environment issues

1

A

A

A

A

.

Environmental ordinances

High consciousness of ordinances in UAE

A

2

A

A

A

Customer values

A

A

A

A

4

A

Positive attitudes towards clients.

Market values

Market values differ from individual to individual.

A

A

3

A

A

Labor market is extremely flexible.

Stakeholder/ investor values

Directors take control over subsidiaries.

1

A

A

A

A

A

Staff attitudes

A

A

A

A

A

5

Attitudes were first-class

Staff morale

A

A

A

A

A

5

High staff morale in UAE

Sum

A

REFERENCING

World Trade Organization. ( 2006 ) . Trade POLICY REVIEW: United ARAB EMIRATES ( UAE ) . Available: hypertext transfer protocol: //www.wto.org/english/tratop_e/tpr_e/tp263_e.htm. Last accessed 13 September 2009.

Matrix net-on-line Limited. ( 2000 – 2009 ) . Policies ( Government ) . Available: hypertext transfer protocol: //www.asiatradehub.com/uae/pol.asp. Last accessed 12 Sep 2009.

Dubai Business Minds. ( 2004-2005 ) . United Arab Emirates Economy. Available: hypertext transfer protocol: //www.dubaibusinessminds.com/artman/publish/united_arab_emirates_econom.shtml. Last accessed 10 July 2009.

( Middle East ) Ltd. ( 1999 ) . Tax. Available: hypertext transfer protocol: //www.infoprod.co.il/country/uae2e.htm. Last accessed 16 Sep 2009.

Trading Economicss. ( 2009 ) . UAE Unemployment Rate.

Available: hypertext transfer protocol: //www.tradingeconomics.com/Economics/Unemployment rate.aspx? symbol=AED. Last accessed 23 Sep 2009.

Property Investing Overseas. ( 2008 ) . the chief benefits of puting in belongings in the UAE. Available: hypertext transfer protocol: //www.propertyinvestinguae.com/invest_in_uae_features_and_benefits.asp. Last accessed 20 Sep 2009.

[ Online ] hypertext transfer protocol: //unstats.un.org/unsd/newsletter/unsd_workshops/country/UAE_Country % 20Profile.pdf Accessed on 31st August 2009.

[ Online ] , hypertext transfer protocol: //www.hsbc.com/1/PA_1_1_S5/content/assets/retirement/2009_for_factsheet_uae.pdf Accessed on 31st August 2009.

[ Online ] , hypertext transfer protocol: //unstats.un.org/unsd/newsletter/unsd_workshops/country/UAE_Country % 20Profile.pdf Accessed on 31st August 2009.

Referencing

World Trade Organization. ( 2006 ) . Trade POLICY REVIEW: United ARAB EMIRATES ( UAE ) . Available: hypertext transfer protocol: //www.wto.org/english/tratop_e/tpr_e/tp263_e.htm. Last accessed 13 September 2009.

Matrix net-on-line Limited. ( 2000 – 2009 ) . Policies ( Government ) . Available: hypertext transfer protocol: //www.asiatradehub.com/uae/pol.asp. Last accessed 12 Sep 2009.

Dubai Business Minds. ( 2004-2005 ) . United Arab Emirates Economy. Available: hypertext transfer protocol: //www.dubaibusinessminds.com/artman/publish/united_arab_emirates_econom.shtml. Last accessed 10 July 2009.

( Middle East ) Ltd. ( 1999 ) . Tax. Available: hypertext transfer protocol: //www.infoprod.co.il/country/uae2e.htm. Last accessed 16 Sep 2009.

Trading Economicss. ( 2009 ) . UAE Unemployment Rate.

Available: hypertext transfer protocol: //www.tradingeconomics.com/Economics/Unemployment rate.aspx? symbol=AED. Last accessed 23 Sep 2009.

Property Investing Overseas. ( 2008 ) . the chief benefits of puting in belongings in the UAE. Available: hypertext transfer protocol: //www.propertyinvestinguae.com/invest_in_uae_features_and_benefits.asp. Last accessed 20 Sep 2009.

[ Online ] hypertext transfer protocol: //unstats.un.org/unsd/newsletter/unsd_workshops/country/UAE_Country % 20Profile.pdf Accessed on 31st August 2009.

[ Online ] , hypertext transfer protocol: //www.hsbc.com/1/PA_1_1_S5/content/assets/retirement/2009_for_factsheet_uae.pdf Accessed on 31st August 2009.

[ Online ] , hypertext transfer protocol: //unstats.un.org/unsd/newsletter/unsd_workshops/country/UAE_Country % 20Profile.pdf Accessed on 31st August 2009.

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