The paper "International Business in the UAE" is a perfect example of a business case study. The United Arab Emirates has over time been a center for business opportunities. Oil is the main commodity which creates international business opportunity while at the same time the one commodity used commercially therefore promoting growth in the region. The economy on the other hand has traded as a cornerstone; the exports from oil and gas are the most important components of the trade when export trade is concerned. In figure released about the exports made from the UAE, crude oil to Japan and the gas count for 62% of its total exports.
This means that Japan is the main user of commodities. (MOFI) UAE has a high per capita income with an annual surplus in trade despite oil and gas pre-dominantly playing the important role in the economy. The UAE has over the recent past had a reduced portion of GDP which is drawn on oil following the successful economic diversification process. The UAE has undergone a profound transformation since the time oil was discovered there about thirty years ago.
The transformation is from being a small desert principality to a modern state with high standards. Job creation in the UAE has been the core value of its government where it has increased its spending not forgetting the expansion of infrastructures and opening up utilities which welcome the private sector involvement. (MOFI) The UAE has in the past been involved in creating investment agreements for instance the Washington agreement where they agreed to negotiate a free trade agreement with the US. Moreover, UAE offers 100% foreign ownership while at the same time zero-rating taxes, this comes in handy at attracting more foreign investors to their market.
The prices in the shares and real estate experience an urge from the UAE’ s high oil revenue, housing shortages, strong liquidity, and also cheap credit. The UAE is highly dependant on oil, this makes it exposed to long-term challenges. To counter this effect, the UAE has got a strategic plan which is aimed at creating and diversifying opportunities for its people through increased involvement of the private sector and ensuring that there is an improvement in education.
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ICON Group International. (2007, June ). Strategies in the United Arab Emirates. Retrieved November 9, 2009, from http://www.researchandmarkets.com/reportinfo.asp?report_id=603078
MOFI. (n.d.). Trade in UAE. Retrieved November 9, 2009, from http://www.uae.gov.ae/Government/trade.htm
The Financial Times Limited. (2007, June 06). Secrets of success. Retrieved November 9, 2009, from The business of Globolization: http://www.fdimagazine.com/news/fullstory.php/aid/2050/Secrets_of_success.html