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Pestle Analysis of United Arab Emirates

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Political Environment

UAE’s political environment is stable. Government structure in UAE is relatively immature and dynastic in nature. UAE has a well-described framework for business and a clean set of ownership rules. Outsiders are allowed possession privileges of up to 49% for restricted risk organizations set up inside the Emirate of Dubai and up to 100% for expert organizations, branches and delegate workplaces of remote organizations and free zones undertakings. So, it will be beneficial for Starting a business in UAE market. U. A. E. has a number of multilateral and bilateral trade agreements, including with partner countries in the GCC. U. A. E. has free trade agreements with these countries Syria, Lebanon, Iraq, Morocco and Jordan. In June 2009 the GCC signed an FTA with the European Free Trade Association (Iceland, Liechtenstein, Norway and Switzerland). In addition, the U. A. E. has signed free trade agreements with Singapore and New Zealand, and is looking for the establishment of free trade zones with the European Union, Japan, China, India, Pakistan, Turkey, Australia, New Zealand, Korea, Brazil, Argentina, Uruguay and Paraguay.

Economic Environment

A country’s economy is one of the main factors about its standings in the global market. Here are few of the economic variables affecting the UAE’s circumstances: The UAE has an exceptionally high GDP per capita. United Arab Emirates also has a very low Unemployment Rate. In United Arab Emirates, the inflation rate is increasing from last two years, but it will decrease from2019 to 2022. so, it will be beneficial for Minute maid business in UAE. United Arab Emirates unemployment rate increased to 1. 72 percent in 2017 from 1. 64 percent in 2016. United Arab Emirates unemployment rate mean2. 59 percent from 1985 until 2017, reaching a level of 4. 20 percent in 2009 and a record low of 1. 15 percent in 1985. It has a country also has one of the highest amounts of Foreign Direct Investment in the region. Customs duties in UAE is low at 4% with many exemptions, 100% repatriation of capital and profits is permitted. So, it is good for expanding a business. UAE has no foreign exchange controls, No trade barriers or quotas, Competitive import duties (4% with many exemptions). Social EnvironmentUAE has a large population. Large population means potential market which is good for every business. If we are looking for start a business in UAE, it will be a Hugh market for Minute maid business. Crime Rate in UAE is almost Zero. The occupant of the UAE typically live comfortable lifestyles thanks to their well-paying jobs. Globalization in UAE has gradually resulting in a mix of many different cultures within the Emirates. Religion is also an important matter in the UAE which mostly affects society.

Technological factors

In modern’s era, technological variables are more renowned than ever. With the UAE’s wealth and middle-aged generation or population, it should not be a problem; however, in terms of more depth, following are the technological factor affecting the UAE: – The moderately youthful populace is very tech savvy which permits organization all over the UAE to leverage innovation. Moreover, UAE is a developed country and has strongest IT sector. The country is also adopting the vest technologies. UAE has launched its own satellites which proves to a profitable ground for entry of healthy products. The country’s market is decorated with a determined telecommunication network which helps to ensure country’s IT market and seemly emulative. Moreover, it helps in making large network among all over the globe. Also, Dubai has world class seaport which helps in import export.

Legal Factors

Nowadays, UAE has brought various legal amendments in the FMCG market which has positive impact leading to intense growth of FMCG industry in UAE. Moreover, UAE has strong trade bond with various country across the globe. UAE has many laws in terms of safety namely taxation policies, employment laws, industry regulation, health and safety. Every participant has a constitutional right to choose between joining federal judicial system and maintaining their own independent system in the UAE. If we talk about tax rates in the UAE which reach 0-55% in the 2017. The UAE has competitive tax image and various free trade regions to attract investment; there is also zero taxation on personal income the country. Structure and policies which UAE has are the following: Judicial systemLegislation affecting businessTax regulationTax rates.

Environmental Factors

Federal Environmental Authority (FEA) in 1993 has established by UAE which implements environmental protection legislation in the federation which helps to improve the environment like protection of environment from various pollution namely noise pollution, water pollution, handling of hazardous things, prepare for environmental disasters. However, government of UAE make some environmental regulations. Ministry of Environment and water of UAE is regulatory authority that governs all activities including environmental protection in the country.

Moreover, now the government is focusing on reducing water wastage and implementing the measures to manage waste efficiently and make awareness for health and safety purpose. Environmental factors are the last factors in any PESTLE analysis. Moreover, environment factors are not in control of humans; however, the natural calamity can affect the minute-maid operation and productivity like country has quite a hot, dry climate which can result in numerous different things. In addition to the UAE also finds itself nearby coastal regions, which helps to ensure easier trade by sea. Continued economic reforms has led to intense development and prominent standard of living as well.

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