BG&E MBA

1. BUSINESS,
GOVERNMENT &
ENVIRONMENT
SHADAB KHAN
EX-MBA
B-59

2. ESTABLISHING
CONSTRUCTION FIRM IN
DUBAI [ MANPOWER SUPPLY ]

3. HISTORY
The United Arab Emirates were bound by truce ( Trucial
States ) to Great Britain until WW-II.
The seven Emirates formed a federation in 1971 and
have since worked closely together to build a stable
economy.

4. BASIC INFO ABOUT DUBAI

5. PESTLE ANALYSIS
Political
 Each Emirate has its own governmental institution.
 The ruling family of each Emirate is a member of the
Supreme Council, which is responsible for policy-making
and electing the president and vice president for five-year
terms.
Economic
 Wealth is based on oil and gas exports (Abu Dhabi)
 The government increased spending for infrastructure and
job creation, and there is a greater opportunity for private
sector investment.
 Lately there has been a surge in real estate and shares
prices and consumer inflation is elevated.
Social
 Islam plays a large role in business
 Women are seen as equals and are protected by rights and
privileges laid down by Islam

6. Technological
 Telephones (land line and cell phone), radio
broadcast stations, television, internet.
Legal
 Court proceedings in the UAE are time-consuming.
 There are no juries; only a single judge or a three-
judge panel (depending on the case) hears cases.
 All evidence submitted to the court must be in
Arabic.
Environmental
 Arid/tropical, sandy desert, and coastal areas.

7. SWOT ANALYSIS
Strengths
 Free Trade Zones, relative ease of business start up
Weaknesses
 One needs a network of people in order to expand
opportunities
 Trust must be gained before any business transaction
occurs
Opportunities
 Large export market
 Trade missions
Threats
 Sandstorms and dust storms occur frequently.

8. WHY DUBAI ?
Growing and Diverse Economy.
Increase in trade revenue of 5.8 percent.
Increase in exports revenue of 44.3 percent.
Increase in manufacturing revenue of 11.7
percent.
Increase in transport and communications
sector revenue of 2.7 percent.
Increase in hotels and restaurants revenue of
13.9 percent.
Investment laws, regulations and incentives are
continuously improving to encourage further
foreign investment.

9. This includes the introduction of foreign
ownership of land and stocks.
 Dubai became the first emirate within the UAE
to open its property market to foreign ownership,
followed by Abu Dhabi.
 0% Taxes.
Very Low Import Duty.
Free Trade Agreements of UAE.
Strong and Competitive Economy.
Strategic Location Advantages of UAE.
World-class Infrastructure of UAE.

10. Current GDP growth is at 4.1.

11. CONSTRUCTION SCENARIO
Dubai’s construction and real state sectors are
facing a combined manpower shortfall.
The shortfall takes a toll up to 5,00,000.
Including skilled and semi-skilled workers.
There is shortage of 43% of skilled workers and
57% for semi-skilled workers.
India is one of the leading country for supply of
manpower in the world.
The root cause is DUBAI EXPO 2020.
Due the construction of many high rises, for the
expo, the demand exceeds the supply.

12. DUBAI EXPO 2020
 Dubai is expecting Dh25 billion in total investment in
infrastructure-related projects in the run-up to Expo 2020
with nearly 277,000 new jobs being created.
 The aim is to deliver their iconic projects (tourist
attractions) ahead of Expo 2020, which will run from
October 20, 2020 to April 10, 2021, and aims to draw
more than 25 million visitors to the country.
 As billions of dirham worth of construction contracts are
awarded, state-owned entities have announced plans to
build more new iconic projects this year.

13. UPCOMING PROJECTS FOR
EXPO
DUBAI WATER CANAL:
Construction Cost - Dh7.34 Billion
JEWEL OF THE CREEK:
Construction Cost - Dh1.45 Billion

14. Al-HABTOOR CITY:
Construction Cost - Dh11 Billion
DEIRRA ISLANDS:
Construction Cost - Dh28 million

15. TAJ ARABIA, MUGHAL GARDENS:
Construction Cost – Dh. 3.6 Billion
THE LAGOONS:
Construction Cost – Dh. 80 Billion

16. DUBAI ADVENTURE STUDIOS:
Construction Cost – Dh. 10 Billion.
MBR DISTRICT ONE:
Construction Cost – Dh. 21 Billion

17. BLUEWATERS ISLAND:
Construction Cost – Dh. 6 Billion.
MUHAMMED BIN RASHID CITY:
Construction Cost – Dh. 220 Billion

18. SOME MORE MEGA PROJECTS:
 DUBAI SPORTS CITY
DUBAI SNOWDOME
DUBAI WATERFRONT
DUBAI METRO
DUBAI WORLD CENTRAL
HYDROPOLIS

19. PROCEDURE

20. LICENCE ISSUING AGENCIES