Operational Analysis 1 Operational Analysis In the following example, we have identified the target country and the product that we will be discussing. We have also provided explanations on our choice. Lastly, have also analyzed various macroeconomic variables of the target country and provide explanations to support these suggestions. The United Arab Emirates is among the leading economic hubs in the Middle East, among its major trading items, it is known for its booming oil industry that has led to an influx of foreign workers in the country. However, recently there have been attempts to diversify its economy by making the country less dependent on oil, and this has seen the country investing in other industries such as the tourism sector and the construction industry (Shihab, 2012). Perhaps worth noting and for purposes of international trade, Dubai, the economic hub of UAE has been ranked only behind Hong Kong and Singapore as the third largest export center in the region. This has seen the UAE emerge as the leading among the Gulf Cooperation Council (GCC) regarding exports basing on commodities such as electrical appliances and electronics, stones and precious metals. While attempting to diversify its economy, another item that represents an enormous opportunity for trade and investment activities is the date industry. The value of dates and other fruits and other perishable items as products of international trade is fast gaining prominence in the UAE and the entire Middle East. This trend has seen the emergence of the International Perishables Expo Middle East with the latest one being the WOP DUBAI 2016 held between the 13 to 15th November at the World Trade Center, Dubai. This activity has proven hugely successful with nearly 91% of all exhibitions culminating into successful businesses after such shows; it shows the tremendous potential that the fresh fruit and perishables industry has in the UAE and the entire Middle East and this if well exploited can result in significant financial successes. Dates production is known to thrive in hot, arid regions like North Africa with the Middle East, and specifically, the UAE being an ideal producer as it has the perfect climate for this fruit. Dates are marketed all over the world as a high-value crop and are also a major subsistence crop in the arid area (Arias, 2002). Recent studies have shown that most of the dates produced in such regions are consumed locally, and investments need to be done to make it possible for the crop to be traded internationally by exporting it to other countries in the global market. This process will require the state to invest more in the preservation of the plant due to its perishability and investing in varieties better suited for export purposes. With nearly 90% of the world date production concentrated in North Africa and the Middle East, the demand for the crop in the region is small and it is essential for the UAE to seek .

1. Operational Analysis
1
Operational Analysis
In the following example, we have identified the target country
and the product that we will be discussing. We have also
provided explanations on our choice. Lastly, have also
analyzed various macroeconomic variables of the target country
and provide explanations to support these suggestions.
The United Arab Emirates is among the leading economic hubs
in the Middle East, among its major trading items, it is known
for its booming oil industry that has led to an influx of foreign
workers in the country. However, recently there have been
attempts to diversify its economy by making the country less
dependent on oil, and this has seen the country investing in
other industries such as the tourism sector and the construction
industry (Shihab, 2012). Perhaps worth noting and for purposes
of international trade, Dubai, the economic hub of UAE has
been ranked only behind Hong Kong and Singapore as the third
largest export center in the region. This has seen the UAE
emerge as the leading among the Gulf Cooperation Council
(GCC) regarding exports basing on commodities such as

2. electrical appliances and electronics, stones and precious
metals.
While attempting to diversify its economy, another item
that represents an enormous opportunity for trade and
investment activities is the date industry. The value of dates and
other fruits and other perishable items as products of
international trade is fast gaining prominence in the UAE and
the entire Middle East. This trend has seen the emergence of the
International Perishables Expo Middle East with the latest one
being the WOP DUBAI 2016 held between the 13 to 15th
November at the World Trade Center, Dubai. This activity has
proven hugely successful with nearly 91% of all exhibitions
culminating into successful businesses after such shows; it
shows the tremendous potential that the fresh fruit and
perishables industry has in the UAE and the entire Middle East
and this if well exploited can result in significant financial
successes.
Dates production is known to thrive in hot, arid regions
like North Africa with the Middle East, and specifically, the
UAE being an ideal producer as it has the perfect climate for
this fruit. Dates are marketed all over the world as a high-value
crop and are also a major subsistence crop in the arid area
(Arias, 2002). Recent studies have shown that most of the dates
produced in such regions are consumed locally, and investments
need to be done to make it possible for the crop to be traded
internationally by exporting it to other countries in the global
market. This process will require the state to invest more in the
preservation of the plant due to its perishability and investing in
varieties better suited for export purposes. With nearly 90% of
the world date production concentrated in North Africa and the
Middle East, the demand for the crop in the region is small and
it is essential for the UAE to seek alternative markets in other
parts of the world (Arias, 2002).
It is, therefore, evident that for UAE to fully reap the
benefits of date production and make it a major item for
international trade, the country needs to invest more in the

3. industry. Challenges which need to be addressed to make the
crop economically viable for international trade include
unseasonable weather experienced in the country likely to result
in losses concerning production and storage. Perishability of the
harvest which necessitates investment in the crop preservation
and huge date production in the region that calls for the country
to invest in varieties likely to be better suited for export
purposes (Erskine et al, 2004).
The private sector also represents an important financial
source for this industry. This can be done through initiatives
such as that of Al Foah company, a firm based in Abu Dhabi
that is dedicated to working on the date industry in the country
to make it financially viable and competitive on the
international scene by receiving dates from farmers and
marketing it on their behalf (Shihab, 2012). The International
Perishables Expo Middle East represents an opportunity for
farmers and companies dealing in the crop in the country to
market the crop in the region and to other potential customers.
The government can also invest more on research and extension
services to those in the industry, and this will lead to increased
and better production which will form the basis for a thriving
international trade in the sector.Target Country
According to the World Atlas (2016), “In 1971 Abu Zaby,
Ajman, All Fujayrah, Ash Shariqah, Dubayy, and, Umm Al
Quwain”, six states collectively came together to form the
United Arab Emirates (UAE), and then in 1972 Ra's Al
Khaymah joined the UAE as well (World Atlas, 2016). The
UAE is located in Asia in the Middle East at the end of the
Arabian Peninsula and shares borders with Saudi Arabia and
Oman (World Atlas, 2016). UAE is in a prime location to
conduct trade. In fact, the UAE has a population of five million
four hundred seventy-three thousand nine hundred and seventy-
two (5,473,972) people (World Atlas, 2016).
UAE plays an important role in the Middle East. In fact, the
UAE is rapidly becoming a major tourist destination with their
beautiful beaches and desert oasis. UAE’s has one capital

4. which is Dubai, Dubai is a very modern city and according to
the World Atlas (2016), “is famed for its high-rise buildings and
stylish hotels,” (p.1).
In December 2012 Khalifa Port, the main port in UAE opened
for business. Khalifa Port has allowed the UAE to become a
major player in the trade industry. The port provided the UAE
the opportunity to grow and expand and its ambition of
industrial diversification (Haider, 2016).
In fact, by the first quarter of 2016 Khalifa Port showed
significant growth in two main areas, the general and the bulk
cargo areas (Haider, 2016). The bulk and general cargo in the
ports of Abu Dhabi shows a 13% increase (Haider, 2016). In
the first quarter of 2016, there were 3.98 million tons of freight
and in the first quarter of 2015 there were 3.5 million tons of
freight, this shows a significant increase of cargo between 2015
and 2016 (Haider, 2016).
The UAE is located in a precarious region but has grown and
developed over time. The government has been active in
implementing policies that foster economic growth without
much reliance on the main source of income which is oil (Al-
Shayeb & Hatemi-J, 2015). They are focused on promoting
diversification policies; which they do by encouraging
liberalization and openness to the world market (Al-Shayeb &
Hatemi-J, 2015).Product Choice
In 2014 Market Classification (MSCI) reclassified the UAE
from a frontier market to an emerging market, allowing the
country to expand access to additional funds from around the
globe (MSCI, 2016). The legal framework is flexible,
paperwork is minimal and provides a fast track from beginning
to end. The government procedurally made it easy to do
business in Dubai; it has welcome foreign investors which
intern has helped sustain its economy long-term.
The date palm is an important daily aspect of the UAE for over
7000 years it is part of the culture and has been part of an
important farming system in the area. It has been part of the
daily sustainability of this part of the world. The annual

5. rainfall “78 mm, ranging from less than 40 mm around Liwa in
the southern desert to 160 mm in the northeastern mountains.”
(Food and Agriculture Organization of the United States, 2016).
This arid climate is ideal for growing dates. The government
has allocated considerable resources to improving its irrigation
system which continues to allow the development of farmland in
the region.
Secondly, the government has provided the means to retain the
knowledge of cultivation of the palm tree, the diversification,
and the method both new (modern) and old (traditional). The
method of groundwater pumping from Kalbha and Fujairah
coastal aquifer of the UAE has increased to meet the demand of
agriculture (Water Resource Manage, 2012). The Abu Dhabi
International Date Palm Exhibition is attended by over 2000
trade delegates and suppliers from across the globe. Today,
date palms constitute 98 percent of fruit trees in the UAE, and
the country is one of the world's top ten producers of dates
(UAE Interact).
WORLD TOP 10: DATE FRUIT PRODUCING COUNTRIES
2011
RANK
COUNTRY
(1000 metric tons)
1
Egypt
1,373.57
2
Saudi Arabia
1,122.82
3
Iran
1,016.61

6. 4
United Arab Emirates
900
5
Algeria
690
6
Iraq
619.18
7
Pakistan
557.28
8
Oman
268.01
9
Tunisia
180
10
Libya
165.95
SOURCE: UN Food & Agriculture Organisation (FAO) Last
Updated On: February 9, 2016
The potential market for date for export is great especially in
the EU during the holiday seasons, and during Ramadan season
in the Muslim communities in Europe.
Analysis
There are various macroeconomic variables to consider when
analyzing a country and identifying whether the product of
choice would be feasible to trade. Variables to consider are
population, gross domestic product (GDP), inflation and interest
rates to name a few. According to United Nations (UN)
estimates the population of the UAE in 2016 was 9,157,000,000.
However, this does not include the high population of
immigrants, which is estimated to make up 90% of the
population (United Arab Emirates 2016, p.1). UAE is

7. considered one of the most developed countries in the Arab Gulf
and has a high value of GDP per capita (Trading Economics,
2016).
In fact, the country has a commodity-based economy, with
shipments of oil and natural gas accounting for 40 percent of
total exports and for 38 percent of GDP (Trading Economics,
2016). However, in order to diversify the country’s investments
and expand other areas of business the government has reduced
their dependency on oil revenues by investing in tourism, and
the financial and construction sectors (Trading Economics,
2016). According to Trading Economics (2016),
“Manufacturing activity accounted for 42% of output growth,
transport/communication for 23%, wholesale/retail trade for
16.5% and restaurants/hotels for 15.5% while construction and
agriculture contracted (Trading Economics, 2016). So by
diversifying their investments the country limits their
dependency on one product and create other ways to earn
revenues. However, in order to gain a better understanding of
what costs are like it is best to access how the inflation rate
affects income levels.
Inflation Rates
Companies in UAE according to statistics are expected to
increase salaries due to the rise in inflation level, this is largely
due to the negative impact oil revenues (Gulf News, 2015). In
fact, adjustments in the UAE are predicted to reach 5 per cent in
2016, much higher than the forecast 2.7 per cent inflation rate,
giving employees “real increases” in their incomes (Gulf News,
2015). Those working in the financial and professional sectors
as well as oil will definitely see an increase in their income by
next year.
Trading Alternatives
Economic of scale and the proximity to certain larger producer
of date including Saudi Arabia and Iraq makes the UAE an ideal
country for trading dates. While UAE is the world fifth largest
producer of dates and the production has significantly increased

8. in the past four decades. Dates have a significant market role in
trading in the Middle East; surrounded by its cultural and
hospitality element which in particular during Ramadan. While
Dubai production of date is robust, it is not as diversified as the
tons of dates that cross its borders from other countries. Also,
UAE humidity makes it difficult to grow large dates. Therefore,
the UAE dates have the tendencies to be on the smaller size.
The wanan variety is said to be the bestseller in Dubai, at the
Bateel’s stores.
An interesting aspect of the logics and transportations of dates
makes it an integral process where old-fashioned sailing vessels
(dhows) starting from 200 tons up to 2000 tons utilized for
transportation to smaller ports within the UAE. In the intern,
the date will be exported to India, Sri Lanka, Australia, Canada
and the US in containers from Jebel Ali Port. This port Jebel Ali
is an important hub that the re-exportation of dates are put into
containers and sent to the rest of the world. Trade is the
fundamental cornerstone in part of all economic development
strategy of any country. As such we must always engage in a
manner that reflects the total development and national growth
of an economy.
Trading Partners
GDP is a measure which corroborates that international trade is
strongly affected by the trading partner’s income (Helmers,
2005 et al.) India is the UAE largest trading partner according
to the WTO; it represents more than a century of trading when
bilateral trade began. The next other country trading partner of
the UAE followed by China and other countries that are listed in
the chart below.
Table 1:The UAE’s Top Trade Partners
While China’s trading activities with UAE has significantly
increased since 2005, from 11 Chinese companies to 2,346 in
2009 (Kumar B. 2013). This strategic investment opportunity
will enable the UAE to introduce a new market to China who

9. does not appear to currently trade dates. While this is a
justifiable new partnership, we believe this can help diversify
UAE export strategy. Also provides a new market share for the
UAE. Indian’s market will continue to flourish at the same pace
to enjoy the free zones in certain key locations, e.g., Jafza,
Jebel Ali, etc.. since 1985 which provide several incentives
including, e.g., exemption from paying personal tax and
corporate tax. Trade Restrictions in the UAE
According to Kossman (2016), “Governments or public
authorities employ trade barriers, such as tariffs, to control the
free inflow of international goods and services. Although these
barriers often discourage trade between nations, they come in
handy when a government wants to improve the consumption of
local goods, create local employment, foster national security
and increase national revenue,” (Kossman, 2016). Though we
support this idea, we disagree about implementing additional
trade restrictions on trading dates in the UAE. In fact,
according to The Canadian Trade Commission Service, (2014),
“UAE have very favorable terms of trade and a well develop
logistics network which facilitates international trade,” (p.1).
To impose additional restrictions would lessen the amount of
trade that is being conducted in the country and decrease the
profits.
According to The Canadian Trade Commission Service (2014),
“the UAE grants access to its domestic markets and also present
access to different markets in the Middle East and North Africa,
South East Asia, Eastern Europe and increasingly Sub-Saharan
Africa,” (p.1). UAE is also part of different councils and
boards which support various trade principles. According to the
Canadian Trade Commission Service (2014), “UAE is a member
of the Gulf Cooperation Council (GCC) and the GCC's Common
Customs Law which sets the principle framework for the UAE's
import regulations,” (p.1).
Secondly, The Canadian Trade Commission Service (2014),
states that the “UAE is also a member of the World Trade
Organization (WTO), and has signed multiple trade agreements,

10. both bilateral and with major trading blocs; these commitments
as members as well as being party to trade agreements add to
the UAE's import regulations,” (p.1). There is also a Customs
Zones and Free Trade Zones in the UAE, for example, goods
destined for the UAE's Customs Zones are subject to duty under
the GCC's Common Customs Law while goods destined for Free
Trade Zones are exempt from duty (The Canadian Trade
Commission Service, 2014, p.1.) So, there are various
agreements in place to control trade in the UAE. For example,
foreign trade has increased over the past two decades between
the UAE and other trading partners such as Japan, India, and
China. This partly due to various exemptions that the UAE
offer and their trading policies are so it would not be wise to
implement other trading strategies that would have a negatively
affect this growth, (Yahia, 2012).
It is often said, trade restrictions benefit the country from
losing jobs based on certain industry; however, on a date. This
agreement does not apply; the job preservation would increase
since date requires an intense source of human capital to be
harvested. Dubai has been identified as one of the most
important centers for re-exports at the regional and global
markets. So a trade restriction would only decrease the ability
of this potential market and an increase in GDP. While
Export Recommendation
There are several factors to evaluate when potential export
strategies are being examined or contemplated. We must
determine the feasibility study and determine the potential
market that is available and the competitive advantage or
disadvantage that may exist. While it is clear; there is a market
to trade dates regionally and globally. We would recommend
several key objectives:
· Determine if any modification is required for the new market
· Identify the target country (ies)
· Identify the customer profile, marketing and distribution
channels for the corresponding customer profile

11. · What are the challenges that may pertain this includes but not
limited to, competition, culture differences, and what strategy
that is needed to address them?
· Operational Management and step that is needed
· Pricing
· Timeline for implementation
· Resources required whether personal and
corporate/governmental
· Measurement against strategy once implemented
These listed high-level bullets are not stagnant points of the
development of the export plan; but instead are modified as
needed, as each process is developed or executed. For our
recommendation, we believe that today, it is imperative UAE
increase its market share of trades given its agricultural
limitation in producing, dates. Also, it provides an opportunity
to enhance the trading capabilities, including the logistics and
transportation.
Conclusion
In the analysis above, we have briefly discussed the target
country and the product that we think that the country should
trade. We have provided explanations on our choice and have
examined different macroeconomic variables of the target
country. We have also provided evidences to support these
suggestions.
In fact, the beneficial aspect of trading is endless; it is
important for policy maker and economist to ensure the volume
of trades and variables are monitored to ensure trade flows are
consistent with expectations and the policies are adhere too.
While it is not an exact science as it relates to behaviors and
culture differences, many models are created to determine its
impacts on Goss Domestic Product (GDP), exchange rate,
foreign currency reserves, and several other related quantitate
and qualitative measures. Based on examination of dates trading
we believe, this would be a profitable investment and the
current infrastructure, governmental regulations of UAE can
support the market and its related expansion. While the optimal

12. financing source is both private and multilateral finance for this
purpose is the ‘raison d’être”, it allows the monitoring of
government policies and exercising policy conditionally. This
financial option would help shepherded the private investors to
countries like the UAE where sound policies are followed, and
consistency of policies maintained throughout the scoping
period. The World Bank and other multilateral agencies have an
invested interest to ensure that foreign investors trading are
kept pursuant to policy and regulations. This combination of
financial sourcing would be efficient and minimize risk given
for emerging markets.
References
Al-Shayeb, A., & Hatemi-J, A. (2016). Trade openness and
economic development in
the UAE: An asymmetric approach. Journal of Economic
Studies, 43(4), 587–597. doi:10.1108/jes-06-2015-0094.
Retrieved from the University of Phoenix Online.
Arias-Jimenez, E.J. (2002) Date palm cultivation (No.156) FAO
Erskine, W., Moustafa, A. T., Osman, A. E., Lashine, Z.,
Nejatian, A., Badawi, T, &
Ragy, S. M. (2004, May). Date pal in the GCC countries of the
Arabian Peninsula. In proc. Regional Workshop on Date palm
Development in the Arabian Peninsula, Abu Dhabi, UAE.
Gulf News. (2015). UAE employees to get inflation-busting
pay boost in 2016. Retrieved from
http://gulfnews.com/business/sectors/employment/uae-
employees-to-get-inflation-busting-pay-boost-in-2016-
1.1593310
Haider, H. (2016, May 02). Khalifa port registers double-digit
growth in Q1 2016. TCA
Regional News Retrieved from University of Phoenix Online
http://search.proquest.com/docview/1785763419?accountid=458
Helmers.C., Pasteels J.M., (2005), “ Trade Sim, A Gravity
Model For the Calculation of Trade Potentials for Developing
Countries and Economies in Transition, ITC Working Paper

13. WTO. Retrieved from:
http://www.mei.edu/content/uae%E2%80%99s-strategic-
trade-partnership-asia focus-dubai
Kossman, S., (2016). What Are the Advantages of Trade
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perspective, 249-59
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14. and Finance, 3(6), 432.
doi:http://dx.doi.org/10.7763/IJTEF.2012.V3.240. Retrieved
from University of Phoenix Online Website.
To write discussion post.
Requirements:
Do not use any direct quotes and/or cut and pasted information
(i.e. your discussion is to be 100% your thoughts, ideals and
insights). A minimum 350 words are required
Question:
Michael Wilson is a new production manager. After a great deal
of effort, including considerable market research, he completes
his budget and submits it to his boss, Susan Jones. Without even
looking at it, she asks him what his "fudge factor" was and
which items contained the most slack. Michael, very surprised,
responds that he does not use any "fudge factor" and that all his
figures are honest. Ms. Jones counters by asking him how he
would respond if he had to cut about 20% from his budget as it
is. She tells him that most budgets are trimmed in committee
and he had better be ready. She returns the budget to him and
tells him to come back with something reasonable.