United Arab Emirates Dubai

Ryan Singlehurst International Business Why choose Dubai for Business

History

Became a country December 2, 1971 7 Emirates joined to form the UAE 1973 Dirham became official currency Dubai is second largest city in UAE Worlds fastest growing city

Geography

Middle East Bordered by Saudi Arabia, Persian Gulf, Oman, Gulf of Oman Most populated city among the seven states

Demographics

Diverse Population pop. 4,104,695 11% local 57% South Asian Other Arabs 27% Iranian make the majority Muslims 96%, 4% Christian/ Hindu Arabic, English, Hindu/Urdu 100,000 British/Western Expatriates

Natural Resources

Petroleum 1/3 of UAEs petroleum produced by Dubai Dry crops: Dates, Tomatos, Cucumbers Fish, dairy products

Political Factors

Each Emirate contains considerable amount of sovereignty, yet maintain a strong national identity Federal Government consists of Executive, Legislative and Judicial Branch along with a Supreme Council Federal Government assumes control of foreign affairs, national defense, aircraft regulation, public health, education All other areas are maintained by individual Emirate Supreme Council consists of an elected official from each Emirate Unlike that of the Executive and Legislative, the Judicial branch is much like those of the west with a twist of Islamic culture. Quite Stable

Regional Economic Integration

Maintain close relationships with more than 60 nations China, Japan, Russia, Great Britain, and the United States are the largest allies Member of World Bank, IMF, Arab League, OPEC, Organization of the Islamic Conference, WTO

Economic Growth

30% GDP is Petroleum Most investments are into areas of capital improvement, infrastructure, social services, job creation 2005 GDP: $115.8 Billion Total non- oil imports: 149 million (Dirham) Imports: $60.15 billion Exports: $103.1 billion Oil Exports: 2.5 million bbl/day No foreign exchange controls, trade barriers or quotas Exchange rate is 3.675 (DH)= 1 USD Following the success of the Jebel Ali Free Zone, Dubai Internet City was developed

Business Environment

Massive imports on low-wage workers Labor force of 2.8 million Construction Unions Departments such as Tourism and Commerce assist companies entering the markets - Economic Dept, Chamber of Commerce and Industry, Jebel Ali Free Zone No corporate tax except on oil producing companies and branches of foreign banks Trade practices are in-line with normal international standards Member of General Agreement on Tariffs and Trade/ WTO Expatriates cannon own land; At least 51% must be owned by native UAE resident

Government and Business Relations

2007 federal budget established a staggering Dh 28.4 billion meanwhile maintaining a zero deficit. The most notable federal government investment in the works for 2007 is that of a state-of-the-art e-government project. Social Security system has expanded its aid by more than 75%, thus making it best in the Gulf Cooperation Council

Currently the federal government of UAE is partnering with Assist America, the worlds largest emergency service insurance, to provide a low cost insurance to all of its citizens

Multinationals & Joint Ventures

Cessna Aircraft Caterpillar Chase Manhattan Cisco Computer Systems Delta Airlines Hilton Hotels

McDonalds International Raytheon Aircraft Company Al Habtoor Group Lucent Technologys Northrop Grumman

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