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  1. 1. United Arab Emirates<br />KrishneshNayak<br />Vinay Raj<br />
  2. 2. Introduction<br />The United Arab Emirates is a federation of 7 Arab monarchies –<br />Abu Dhabi Ajman<br />Dubai Fujairah<br />Ras Al-KhaimahSharjah<br />Umm al-Qaiwain.<br />Currency: Dirham<br />Language: Arabic, English and others.<br /><ul><li>Population – 4.5 Million
  3. 3. GDP(PPP)</li></ul>$115.7 Billion<br />8.5% growth in 2007<br />$ 25,514 per capita<br /><ul><li>Unemployment – 2.4%
  4. 4. Inflation (CPI) – 7.8%
  5. 5. FDI (Net Inflow) - $ 5.3 Billion
  6. 6. External Debt - $ 39.1 Billion
  7. 7. Exports - $117.2 billion Primarily crude oil </li></ul> Natural gas, Re-exports, <br /> Dried fish, Dates<br /><ul><li>Imports - $74.5 billion Primarily machinery </li></ul> & Transport equipment<br /> Chemicals and Food<br />Abu Dhabi accounts for about 90 percent of UAE oil production and has taken a leading role in political and economic decision-making, but many economic policy decisions are made by the rulers of the individual emirates.<br />
  8. 8. History<br />Prior to independence, the UAE was Trucial Oman.<br />1892 – UK assumed responsibility for the defense and external relations.<br />1952 – The Trucial Council, comprising the rulers of the seven sheikhdoms, was established.<br />1958 – Petroleum was first discovered.<br />1960 – Onshore Petroleum was found.<br />1962 – Commercial exploitation of petroleum began.<br />1968 – UK Announced its intention of withdrawing British military forces.<br />1971 – UAE became independent.<br />1981 - UAE was a founder member of the GCC of the Gulf (generally known as the Gulf Co-operation Council).<br />1987 - Full diplomatic relations were restored with Egypt for Commercial Links between them.<br />
  9. 9. Culture<br /><ul><li>Arabs are an event-orientated people as opposed to time-orientated.
  10. 10. Never refuse refreshments offered, as this will be taken as an insult to your host.
  11. 11. No set business hours in UAE.
  12. 12. Work "straight" which is between 08hrs and 17hrs.
  13. 13. Work "shift" which is anytime between 08hrs and 13hrs, and then again between 16hrs and 21hrs or even 22hrs.</li></li></ul><li>Political Outlook<br /><ul><li>UAE maintains an extensive 'cradle to grave' welfare system for its nationals.
  14. 14. Provides many subsidized services, which also are extended to foreigners who form 80 percent of the total population.
  15. 15. Law expelling all foreign laborers in violation of their visas - To curb the problem of illegal laborers.</li></ul>Currency Valuation<br /><ul><li>Revaluation of the single currency by 2010.
  16. 16. For a single currency is also a demonstration of political will and confidence in the future.
  17. 17. Serious about economic growth and prosperity and creating a modern financial infrastructure.</li></li></ul><li>The Economy<br />The UAE economy grew by an estimated 9% in 2005. The rise was due to <br />The 20 percent increase in oil income, <br />The strong dollar and Strong economic growth in the non-oil sector. <br /><br />
  18. 18. Public Finance<br />34 percent of all exports were re-exported. Traditional re-export markets are the Gulf Co-operation Council (GCC) states and Iran.<br />
  19. 19. Franchising<br /><ul><li>Foreign businesses must work through a local partner as licensee or enter into a joint venture.
  20. 20. Franchisees usually prefer to own 100 percent of the franchise themselves.</li></ul>Stock Exchange<br />
  21. 21. The Legal System<br />
  22. 22. Trade<br />An increase in value of imports. Mainly attributable to <br />Population increase<br />Higher demand for imports to meet re-export requirements<br />Higher level of individual expenditure partly due to the increased commercial activity associated with the shopping festivals held throughout the year.<br />Gold Trade<br /><br />
  23. 23. Closed Economy<br /><ul><li>Economy of UAE is 62.8 % free
  24. 24. World's 63rd freest economy.
  25. 25. Scores above the world average in –</li></ul>Fiscal freedom<br />Labor freedom<br />Freedom from corruption, Government size<br />Trade freedom <br /><ul><li>Average tariff rate is not high, but general import licenses are issued only to nationals.
  26. 26. Individual emirates impose their own corporate taxes, but there are no income or corporate taxes at the federal level.</li></ul><br />
  27. 27. Closed Economy<br /><br />
  28. 28. Closed Economy<br /><br />
  29. 29. United Arab Emirates<br />Thank You<br />KrishneshNayak<br />Vinay Raj<br />