Documente Academic
Documente Profesional
Documente Cultură
University
Institute of Accounts, Business and
Marikina Shoe Exchange
__________________________________________________________________
__________________________________________________________________
In Partial Fulfillment
of the Requirements for the Degree of
Bachelor of Science in Business Administration
Major in Business Management
__________________________________________________________________
Chua Arvin G
Samas George
Genio Vhina
Lusong Jerome
Nikka Marie Magat
Kathleen innah king Brioso
Oguejiofo Chukwuebuka
Miko Arile
Ivan Ronald punsalan
Business Management
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1. Executive Summary
The UAE is situated on the Arabian Peninsula between Oman and Saudi Arabia and bordering
the Gulf of Oman and the Persian Gulf.
The UAE government estimates the total area of the UAE to be 83,600 square kilometers;
excluding the three islands in the Strait of Hormuz, the area is 77,700 square kilometers (slightly
smaller than the state of Maine). Abu Dhabi has an area of 67,350 square kilometers.
The UAEs land boundaries total 867 kilometers. The emirates border Oman to the north and
east (410 kilometers) and Saudi Arabia to the west and south (457 kilometers).
According to the official census conducted in 2005, estimates for the UAEs
population for that year range from 4.1 million to 4.6 million; the population is estimated to
increase to 4.9 million in 2006. The overall population increased by almost 75 percent from
1995
to 2005, with the percentage of non-nationals increasing at a much faster rate than the national
population. The current annual growth rate is estimated at 6.9 percent. The majority of the
population (2.5 million) is urban and lives in the two largest emiratesAbu Dhabi and Dubai.
Dubai has the fastest growing population, with an average annual growth rate of 8.5 percent
between the years 2000 and 2005.
A study by Dubai International Academic City, in conjunction with Deloitte, showed that
the UAE is considered the fourth most attractive education destination in the world for
students looking to study abroad.
The UAE now has a blossoming financial sector and strong growth prospects. David
Marshall, Senior Executive Officer at Emirates NBD Asset Management, discusses this
post-crisis surge
Official data shows that the United Arab Emirates economy has turned around after
years of low growth, financing issues and restructuring post-2009. Now, the Emirates
is seeing a strong rebound in profitability and growth as it continues to benefit from its
perceived safe-haven status amid regional instability.
The proposed business is to establish a medium/large branch and franchises in United
Arab Emirates. This includes all products/imports/services of the said company.
2. Introduction
This document is a research paper for business proposal that proposes Marikina
Shoe Exchange Company extends a successful branch or create a franchise at
United Arab Emirates.
Dubai is a large city in United Arab Emirates that has a population of over 2
million and more than 1 million tourists that visit there.
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Institute
of Accounts,
and
Establishing MSE at Dubai
and expanding
itsBusiness
franchise,
the company will extend
its legacy in other countries and not only to introduce but to promote Filipino
quality products.
3.a Socio-Cultural
3.a.1 Geography
Area of Dubai:
4,114 km sq.
Dubai Population:
2,262,000
Country:
Dubai Government:
Constitutional monarchy
Dubai Language:
Tagalog, Chinese, Malayalam, and other languages are spoken in Dubai by its
many foreign residents.
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Arab Emirates. Dubai
is ofthe
secondBusiness and
One of the most fascinating geographical aspects of Dubai is its Creek, which
divides the city into two regions. Dubai Creek is made up of a natural 9.5 mile
inlet in the Persian Gulf, around which the citys trade developed. North of the
Creek is called Deira, and Bur Dubai refers to the south where it joins the tourist
and residential developments of Jumeirah along the coast.
Dubai also has the highest population, sharing its borders with Abu Dhabi in the
south, Sharjah in the northeast and the Sultanate of Oman in the southeast.
Due to the citys unique geographical location it enjoys a strategic position which
allows it to connect to all local Gulf States, as well as to East Africa and South
Asia.
3.a.2 Climate
The line of the Tropic of Cancer crosses through the UAE, causing the weather in
Dubai to be warm and sunny. In the winter it has an average daytime
temperature of 25C, nearer the coast 12-15C, in the desert or mountains 5C.
With the nights being relatively cool. Near coastal areas humidity can average
between 50% and 60%.
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and humid, with temperatures
In the summer, theInstitute
weatherofinAccounts,
Dubai is Business
very hot and
reaching mid 40s. Even the sea temperature can reach 37C, with humidity
averaging over 90%.
Rainfall in Dubai is infrequent and does not last for a long period. It mostly rains
during the winter period in the form of short gushes and an occasional
thunderstorm. On average, rain falls only five days a year.
3.a.3Education
Dubai: International students looking to study and live in the UAE continue to pay
among the highest premiums in the world.
The cost of studying in the UAE is equivalent to about half (51 per cent) of the
gross domestic product (GDP) per person, or nearly $28,000 (Dh102,760) per
year, making it the fourth most expensive country for foreigners to study and live
in, according to the latest research by HSBC.
The average annual fees and cost of living for international students in the UAE,
at $21,371 and $6,004, respectively, put the countrys overall education cost
ahead those of Canada, Singapore, Japan and Germany.
The living expenses in the country is one of the cheapest among most developed
and emerging markets, after China, Taiwan and Germany, but the high university
fees pushed it to the top of the table. Annual fees in the UAE is the third most
expensive in the world, trumping other major markets including the United
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Accounts,
Kingdom. AustraliaInstitute
tops theofoverall
list, Business
where a and
year of study costs $38,516,
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Business
andabroad. It is also regarded
destination in the world
for of
students
looking
to study
as the most attractive destination among the emerging market economies, ahead
of China, Singapore and Australia.
With increased investment in educational institutions and a variety of
international-standard universities for students to choose from, we expect the
UAE to retain its position as a favourable education destination for the
foreseeable
future,
Rick
added.
3.a.4 Language
Language is the most important marker of
identity for a country and the National
Language
in
Dubai
is Arabic which
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Languages in Dubai
have of
never
been Business
an issue and
and most of the schools in
Dubai teach English along with Arabic. The medium of instruction is usually
English but crossing the barrier of language in Dubai there are a number of
schools in Dubai that teach foreign languages including French and Russian to
children.
3.a.5 Religion
Islam is the official state religion. The Government funds or
subsidizes almost 95 percent of Sunni
mosques and employs all Sunni imams;
approximately 5 percent of Sunni mosques
are entirely private, and several large mosques
have large private endowments. The government
distributes
guidance
on
religious
sermons
to
mosques and imams, whether Sunni or Shi'a, and monitors all sermons for
political content. The Shi'a minority is free to worship and maintain its own
mosques. All Shi'a mosques are considered private and receive no funds from
the government. Within the UAE, Shi'a imams are government-appointed only in
Dubai. Shi'a Muslims in Dubai may pursue Shi'a family law cases through a
special
Shi'a
council
rather
than
the
Shari'a
courts.
Regarding the other religions in Dubai, Dubai has large expatriate communities
of Hindus, Christians, Buddhists, Sikhs and others. Non-Muslim groups can own
their own houses of worship, wherein they can practice their religion freely, by
requesting a land grant and permission to build a compound. Groups that do not
have their own buildings must use the facilities of other religious organizations or
worship in private homes. While the UAE doesn't offer any federal-level method
of granting official status to religious groups, the individual emirates may exercise
autonomy in officially recognizing a particular religious denomination. For
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of status
Accounts,
Business
instance, Dubai granted
legal
to The
Churchand
of Jesus Christ of Latter-day
Saints in 1993. Dubai is also the only emirate that has Hindu temples and a Sikh
Gurdwara.
Since its founding, the UAE has provided significant aid to developing countries
and has been a major contributor of emergency relief to regions affected by
conflict and natural disasters.
As UAE founder and former President HH Sheikh Zayed bin Sultan Al Nahyan
said, Foreign aid and assistance is one of the basic pillars of our foreign policy.
For we believe that there is no true benefit for us from the wealth that we have
unless it does not also reach those in need, wherever they may be, and
regardless of their nationality or beliefs.
In 2008 the UAE established the Office for the Coordination of Foreign Aid
(OCFA) to track and document the countrys annual contribution to international
aid. OCFAs first report, released in mid 2010, found that in 2009 the UAE
contributed 8.9 billion dirhams ($2.43 billion) in foreign aid; 95 percent of which
was in the form of grants to humanitarian, development and charity projects
across 92 countries.
The UAEs primary aid and relief agency is the Red Crescent, one of the world's
top ten Red Cross and Red Crescent societies in terms of the volume of aid
provided. The Red Crescent actively collaborates with the United Nations Office
for Project Services, (UNOPS), responsible for providing urgent technical,
logistical and administrative support to other United Nations (UN) programs.
In 2009 the Red Crescent ranked as the countrys third most significant donor
behind the Abu Dhabi Fund for Development and the Government. The Red
Crescent gave a total of 451.5 million dirham ($123 million) to 55 countries,
mainly to social infrastructure and services, and multi-sector projects.
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The UAE Red Crescent organized the Emirates Heart Group, a voluntary
collective of cardiologists working in the UAE, and from several countries,
including the Emirates, France, Canada, Saudi Arabia, Egypt and South Africa.
Started by five UAE cardiologists, and now boasting over 200 participants, the
group's members volunteer their time to carry out surgery in countries where
there is a lack of such skills. Their missions have included trips to Syria, Jordan,
Egypt, Morocco, Sudan and Kenya.
Other organizations also sponsor aid and relief. One major initiative, launched by
Vice President and Prime Minister HH Sheikh Mohammed bin Rashid Al
Maktoum in September 2007, was Dubai Cares, which seeks to provide primary
education for at least a million school children in the poorest countries of the
Middle East, Africa and Asia.
While much of the UAE's development assistance is provided on a governmentto-government basis, the country is also a major contributor to international
agencies. During the course of the last 30 years, for example, over 100 billion
dirhams ($27 billion) has been made available through the International Monetary
Fund and the World Bank, according to the UAE Ministry of Finance and Industry.
In addition, the UAE supports various UN development funds, including UNICEF,
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UNDP and the Office
of the UN
High Commissioner
for Refugees, as well as the
UN Relief Works Agency for Palestinian Refugees.
A main initiative of the OCFA is to document all foreign aid contributions made
since the formation of the UAE in 1971. While this study is not yet complete,
during the announcement of the inaugural 2009 report, HH Sheikh Mohammed
bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai stated
a provisional figure of 163 billion dirham ($44 billion) as the amount given by the
government and Emirati donor organizations since 1971.
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ofcollaboration
Accounts, Business
and
Since commencingInstitute
studies in
with other
members of the Gulf
Cooperation Council (GCC), the UAE has proceeded with plans to set up on its
own an ambitious nuclear power program with significant capacity being on line
by 2020.
In December 2006 the six member states of the Gulf Cooperation Council (GCC)
Kuwait, Saudi Arabia, Bahrain, the UAE, Qatar and Oman announced that
the Council was commissioning a study on the peaceful use of nuclear energy.
France agreed to work with them on this, and Iran pledged assistance with
nuclear technology.
Together they produce 273 billion kWh per year, all from fossil fuels (2003) and 57% annual demand growth. They have total installed capacity of about 80 GWe,
with a common grid. There is also a large demand for desalination, currently
fuelled by oil and gas (directly or indirectly). A 2009 report projects GCC
electricity demand increasing 10% annually to 2015, and desalination demand
growing at 8%, implying the need for 60 GWe of new capacity by 2015.
In February 2007 the six states agreed with the IAEA to cooperate on a feasibility
study for a regional nuclear power and desalination program. Saudi Arabia was
leading the investigation and thought that a program might emerge about 2009.
Regional electricity grid integration is progressing, including a 3000 MWe
connection from Iran by 2015.
The six nations are all signatories of the NPT and the UAE ratified a safeguards
agreement with IAEA in 2003. In mid-2008 it appointed an ambassador to IAEA.
Nuclear power program in UAE
In 2009 the UAE produced 90.6 billion kWh gross, 98% of it from gas, for which it
relies on some imports. It has about 19 GWe capacity. Electricity demand is
growing by 9% per year and is expected to require 40 GWe of capacity by 2020.
It is seeking to import some 1000 MWe from Iran. It relies entirely on electricity to
provide its potable water, by desalination.
In April 2008 the UAE independently published a comprehensive policy on
nuclear energy. This projected escalating electricity demand from 15.5 GWe in
2008 to over 40 GWe in 2020, with natural gas supplies sufficient for only half of
this. Imported coal was dismissed as an option due to environmental and energy
security implications. Renewables would be able to supply only 6-7% of the
needed power by 2020.
Nuclear power "emerged as a proven, environmentally promising and
commercially competitive option which could make a significant base-load
contribution to the UAEs economy and future energy security." This led to
creation of a regulatory framework and selection of a site between Abu Dhabi city
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of Accounts,
and then was Al Fujayrah
and Ruwais, at Barakah.
Another
possibleBusiness
site mentioned
on the Indian Ocean coast.
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of reason
Accounts,
Business
and in the face of strong
KEPCO claimed later
that the
for their
selection
competition from France, USA, and Japan was their demonstrable highest
capacity factor, lowest construction cost and shortest construction time among
the bidders.
The plants will largely be financed by the state, without the need for loans, but
with some Korean equity partners. By 2020 UAE hopes to have four of the 1400
MWe nuclear plants running and producing electricity at a quarter the cost of that
from gas. It plans to export electricity to Gulf neighbours via the regional power
grid. (The first APR-1400 units, Shin-Kori 3&4, are under construction in South
Korea.)
An operating company, Nawah Energy, is to be set up about 2017 to run the four
Barakah units, with 82% ENEC equity and 18% KEPCO.
From 2010 ENEC continued negotiations with the losing bidders, Arevab and
GE-Hitachi, regarding cooperation in related nuclear areas.
In November 2013 the Dubai Electricity & Water Authority said that it had a target
of 12% of its electricity supply capacity to be nuclear by 2030, primarily from Abu
Dhabis Barakah plant, but also possibly from a Dubai plant at some stage. This
target is in Dubais Integrated Energy Strategy 2030, arising from its Supreme
Council of Energy set up in 2009 as an independent legal entity to oversee all
matters relating to Dubai's energy sector.
Barakah power plant
In April 2010 ENEC lodged licence applications and an environmental
assessment for its preferred site at Barakah (formerly 'Braka'), on the coast 53
km west of Ruwais and 300 km west of Abu Dhabi city a little closer to Qatar
than to the capital. The applications were assessed by the Federal Authority of
Nuclear Regulation (FANR). This assessment, with environmental management
plan, was considered by Abu Dhabi's Environmental Agency and approval was
given in July 2012.
The site evaluation process for the four reactors considered ten potential sites
and was based on guidance from FANR as well as the US Electric Power
Research Institute, the US Nuclear Regulatory Commission, and the IAEA. The
Gulf seawater at Barakah is about 35C, which will give less thermal efficiency
than the Shin-Kori 3&4 reference units, where the sea is about 27C, so larger
heat exchangers and condensers are required.
In July 2010 ENEC received two licences from FANR: a site preparation licence
for Barakah and a limited construction licence allowing manufacture of major
components for four units. A construction environmental permit from the
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of Accounts,
Business
and
Environmental Agency-Abu
followed
them and
groundbreaking took place
in March 2011.
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of enable
Accounts,
Businessplant
and to generate up to 450
worth some $3 billion
and will
the Barakah
billion kilowatt-hours of electricity over a 15-year period from 2017.
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of Accounts,
Businessvehicle
and in November 2009. As
ENEC was formallyInstitute
established
as an investment
well as overseeing development of the nuclear program, it will act as a
government investment arm by making strategic investments in the nuclear
sector, domestically and internationally. This is likely to include taking a
significant stake in the successful bidder, though that is not a condition or
criterion in the bidding process.
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and
peaceful nuclear energy
is "extremely
important,
very
important or important" for
the UAE, and 55% viewed it as a main source of power generation, second to oil.
The high support was attributed to public engagement as plans developed. The
survey saw a decline in concerns related to overall safety of nuclear power
plants, which TNS attributed to efforts spearheaded by the national government,
ENEC and other nuclear industry bodies in the UAE. However, some work
remained to be done to reassure the public about nuclear waste disposal, the
company said.
Non proliferation
The UAE is a signatory of the NPT and it ratified a safeguards agreement with
IAEA in 2003. In 2009 it signed the Additional Protocol.
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3c.2 Industrial Sector
The UAE will focus on the downstream industry this year, including
petrochemicals, aluminium and steel, he said
Country
United Arab Emirates
57,827
GDP Per
GDP Per
Capita
Capita
45,615
International Reserves
US$ 37.269 billion (Source: IMF; Data updated: 2012)
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268.122 billion of International dollars (2010 estimate)
2002
2.6%
2010
0.9%
2003
11.9%
2011
4.9%
2004
9.7%
2012*
2.3%
2005
8.2%
2006
8.7%
2007
6.1%
2008
5.3%
1990
0.19%
2000
0.2%
2010
0.32%
2015**
0.32%
Inflation
2009
1.6%(2008)
2010
0.9%
2011
0.9%
2012*
1.5%
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and
Official data shows that the
United of
Arab
Emirates
economy
has turned around after
years of low growth, financing issues and restructuring post-2009. Now, the Emirates
is seeing a strong rebound in profitability and growth as it continues to benefit from its
perceived safe-haven status amid regional instability.
The economic recovery has been solid, supported by the tourism and hospitality
sectors, and a rebounding real estate sector in particular. Whats more, infrastructure
and growing wealth has fostered a growing financial industry in key hubs such as Dubai
and Abu Dhabi. Public projects in Abu Dhabi and buoyant growth in Dubais service
sectors have continued to underpin growth, which reached 5.2 percent in 2013. Now,
the macroeconomic outlook from the IMF, expects a 4.8 percent growth in 2014 and
approximately 4.5 percent in coming years, supported by a number of government-led
mega projects and the successful bid for the World Expo 2020.
Crucially, the UAE growth is increasingly supported by non-oil activity, which remains a
robust source of income as the local economies wait for oil production to stabilise. In
particular, construction and retail trade will continue to drive economic activity,
supported by high levels of public infrastructure spending and strong private sector
credit. In addition, oil production is expected to rise owing to strengthening global
demand, challenges in restoring oil production in non-UAE countries such as Libya, and
a decline in global oil inventories. Recent analysis from the IMF also revealed
projections for the production of 2.8 million barrels of oil per day in the UAE during 2014
(see Fig. 1). This positive outlook for the current economic state in the UAE has
bolstered financial services in the region, which have picked up significantly following
the drop in markets post-crisis and after the Arab Spring, which drove down bond
prices.
100%
GROWTH IN ENDB ASSETS IN THE LAST TWO YEARS
Now, major players such as Emirates NBD Asset Management (ENDB) are looking
positively on the investment landscape in the region.
Weve seen a re-rating thats attracted investors interest; a lot of international investors
are now interested in the region. For me the game changer was of course the upgrade
from Frontier to MSCI status of the UAE and Qatar this year. This really forced
international investors from just being interested, to making significant allocations, says
David Marshall, Senior Executive Officer at ENDB.
On the fixed income side, weve seen a real improvement in spreads. Borrowers were
somewhat shut out of traditional lending sources namely banks in the Middle East. So
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of markets.
Accounts,We
Business
andreally interesting issuers
since then theyve tappedInstitute
the capital
have seen
looking to raise money at attractive yields, and again theres been a re-rating there. So
weve seen, since the crisis, CDS levels coming from around the 940/950 levels down to
150 today.
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Source: International Monetary Fund. Notes: Post-2013 figures are IMF estimates
A key part of this growth will be driven by an expansion in non-oil sectors namely
manufacturing, construction, tourism, trade, transport, and logistics. Conversely, the
Middle East has traditionally been an exporter of capital of the world, however, now the
financial industry is seeing a growing interest in MENA investments from international
clients. This follows a period of bearish investments, after the market peaked three
years ago along with the depression on regional stock prices. Since then, flows dropped
as investors considered the risk. But now, 2014 has been a bullish MENA year.
To be frank they werent ready; we were too early. I think there was too much
investment risk for them, there was too much business risk and I think possibly at the
individual level, too much personal risk. So they werent ready to allocate then, but I
think they are very much ready to allocate now. We are also seeing sovereign wealth
fund interest in coming to the region, explains Marshall.
I think on a macro-level there are also reasons why investors are interested in the
region. If you look at recent trends, emerging markets have really been in the doldrums
for the last couple of years, driven by currency weakness, weak fiscal and current
accounts on the side of the governments, and really slow growth. We dont have any of
those problems in the Middle East. We have largely dollar-pegged assets. We have
strong growth driven by a high oil price. And that is really going to make a nice
diversification play for those emerging market managers.
Islamic investments
Another key driver for ENBDs marked growth, is the increasing popularity of sharia-
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of Accounts,
Business
compliant investing, whichInstitute
has become
a prominent
part ofand
global portfolios. For ENBD,
one of the UAEs largest asset managers, Islamic banking has always been a major
focus for the business, with about 30 percent of assets run on a sharia-compliant basis.
This amounts to more than $700m of the firms total $2.6bn in assets, invested in Islamic
products.
Were seeing people starting to tap into sharia-compliant investing. Even the UK
government is looking into issuing a sukuk, in order to tap into that investor base. For
me, its all about investor demand. Were in the Middle East if you want to attract
assets from say Saudi, UAE, Oman even further afield like Malaysia or Brunei we
have sharia-compliant products and services that are a key part of that. What were
seeing is a lot of interest in sukuk a very attractive asset class, which can sit on the
balance sheets and clip out income, thus helping to optimise balance sheets. In addition
there is strong demand for sharia-compliant real estate solutions as well as money
market products, says Marshall.
On that basis, ENBD has grown its assets by approximately 100 percent in the last two
years. A key driver in this has been the diversification of its product range, which
Marshall insists is a trend that will continue along with a reduction in the dependence on
cyclical issues.
I want to achieve a diversified product set, so we can offer products from real estate to
fixed-income to liquid equities. Also, I want to broaden our investor base. The wholesale
market is very strong and I see a lot of growth in institutional investors, he explains.
Finally, the firm is working hard at gaining an international flavour, which can diversify its
business portfolio even further. Having recently launched a platform in Luxembourg for
its fund range, ENBD Asset Management is looking to expand aggressively and is
betting on strong growth in Europe and Asia that can sustain further asset increases in
the years to come.
http://www.worldfinance.com/banking/uaes-status-upgrade-behind-investment-surgesays-endb
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Factbooks 18 December 2003 to 28 March 2011; All CIA World Factbooks 18 December
2003 to 18 December 2008; International Labour Organization, Key Indicators of the
Labour Market database.; International Labour Organization, Key Indicators of the
Labour Market database. Population figures from World Bank: (1) United Nations
Population Division. World Population Prospects, (2) United Nations Statistical Division.
Population and Vital Statistics Report (various years), (3) Census reports and other
statistical publications from national statistical offices, (4) Eurostat: Demographic
Statistics, (5) Secretariat of the Pacific Community: Statistics and Demography
Programme, and (6) U.S. Census Bureau: International Database.;Wikipedia: List of
minimum wages by country (Countries)
http://www.nationmaster.com/country-info/profiles/United-Arab-Emirates/Labor
3c.7 Business Laws
SETTING UP BUSINESS
Under UAE law, foreign entities interested in establishing a formal presence in the
UAE have five options: create a permanent establishment, of which there are seven
different types; establish a branch office; create an entity in a UAE free zone; create
a civil company (only in Sharjah and Dubai); or enter into a commercial agency
agreement.
The UAE Commercial Companies Law (CCL) requires that each company
established in the UAE has one or more UAE national partners who hold at least 51
per cent of the company's capital. Companies that undertake certain activities (oil
industry, production of electricity and gas, treatment and distribution of water) are
exempt from the 51 per cent requirement. Companies established in free zones are
also exempt from the 51 per cent requirement, if the relevant free zone has special
provisions regulating the company. Foreign banks are exempt from having to appoint
a sponsor.
Source: http://www.uaeinteract.com/business/settingup.asp
3c.8 Business Practices
The Coffee Ceremony
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and
You will always be offeredInstitute
refreshments
in an Arab
home or
office. Frequently, this will
be Western style tea or coffee. However, you may also be offered a sweet, milkless tea
or a light Arabic coffee flavoured with cardamom.
If Arabic coffee is on offer, you will be handed a coffee cup which should be held in your
right hand, and when the coffee is poured from an elegant coffeepot, you should accept
at least one cupful. It may be considered discourteous to refuse. Your cup will refilled at
frequent intervals. If you do not want any more coffee, shake the cup slightly to show
that you have had enough. Three cups are considered to be sufficient.
Holding Meetings
When holding business meetings in the United Arab Emirates, some foreign businesspeople
suggest holding the meeting in the lobby of an international hotel rather than in an office. The
advantage of this is that there will be fewer people wandering in and out of the meeting. Also,
your counterparts willingness to come to you demonstrates a true interest. You will also have
access to refreshments that may be more to your taste.
Group Orientation
Identity defined by group, family
Cooperation
Harmony within group very important
Relationship Focused
Personal interaction takes precedence over strict schedules; quality of life is important
Hierarchy
Patterns of rank and status observed
Need for Certainty
Rules for appropriate behavior are known and should not be broken
Particularism
Requires reference to context. Relationships are given priority
Fluid Time
Time is intangible with little structure
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Fatalism
Everyone believes in God and realizes that things depend on God
Cultural Note:
It is likely that expatriates will have very limited opportunities to interact with Emiratis,
who make up approximately 20% of the population. The UAE relies on expatriates from
many countries to provide labor and services.
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5 Conclusion
In creating this franchised business in the United Arab Emirates it is plausible for
the business to be profitable for the value proposition is quality handmade
school/office shoes and sandals made in the Philippines and sold in the United
Arab Emirates at an affordable price and boast the quality of hand made shoes
that came from Marikina city Philippines
6 Bibliography
Database.;Wikipedia: List of minimum wages by country (Countries)
http://www.nationmaster.com/country-info/profiles/United-Arab-Emirates/Labor
SOURCES: International Labour Organisation, Key Indicators of the Labour Market
database.; International Monetary Fund, Government Finance Statistics Yearbook and
data files. World Bank World Development Indicators.; World Bank national accounts
data; Wikipedia: List of minimum wages by country (Countries) ("Country Reports on
Human Rights Practices for 2013" . State.gov . Retrieved 2014-03-04 .); CIA World
Factbooks 18 December 2003 to 28 March 2011; All CIA World Factbooks 18
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