International Business: The United Arab Emirates - Essay Example

International Business: The United Arab Emirates The United Arab Emirates has become an increasingly attractive business prospect for business men around the world since its inception (Mallakh). However, due to its unique nature, there are a number of unique factors that should be kept in mind when analyzing the prospect of establishing a business venture in the United Arab Emirates. The following paragraphs will serve to provide a brief insight into the many variables that make the United Arab Emirates a unique place to do business and a unique nation in terms of the attributes that should be kept in mind when contemplating the possibility of establishing a business in it. What is known as the United Arab Emirates is actually the united description for seven emirates. This unison was formed in late 1971 (BBC). The constituents of this unison are Abu Dhabi, Ajman, Dubai, Fujairah, Sharjah, Umm Al Quwain and Ras Al Khaimah. The United Arab Emirates is densely packed with people from all ethnicities and nationalities. Over seventy percent of the population comprises of a blend of Indians, Filipinos, Pakistanis, Afghans, Bangladeshis and Sri Lankans. People from developing countries often choose to come to the United Arab Emirates to explore their options and continue their pursuit for a better career. However, where people have chosen to move to the United Arab Emirates to develop their careers, a similar number has chosen to move their operations in the United Arab Emirates or open extensions of their businesses in the United Arab Emirates because of the tax exemption incentives that the government of the United Arab Emirates offers. Islam is the primary and dominating religion in the United Arab Emirates, therefore in order for any product or service to be launched in the United Arab Emirates, it is imperative that it is ensured that it does not violate any of the religious norms or interpretations of Islam that the local community has. Other religions are also present in the United Arab Emirates and Christianity and Hinduism are amongst the few who lead the minorities in terms of numbers. Education amongst the people of the United Arab Emirates is considered to be a primary element in the masses since recent trends have shown that the United Arab Emirates is becoming an increasingly pursued element. More and more universities are opening up in the United Arab Emirates and it comes as no surprise that the United Arab Emirates government states the national literacy rate to be eighty percent. The people of United Arab Emirates are of an adventurous nature. This explains their involvement in a variety of sports. They hold a great amount of interest in cricket while also being great admirers of camel riding and horseback endurance riding as well. The people of Dubai appear to like sports that have to do with speed since they also have a large amount of interest in car racing and the like (Walsh). From Rugby to Falconry, the United Arab Emirates offers unparalleled diversity to those who choose to come to it and is rapidly evolving to ensure that it has something for everyone who comes to it. In order to understand the population of United Arab Emirates, it is necessary to understand that a significant share of the United Arab Emirates population comprises of people from all over the world who choose to come to the United Arab Emirates in search of more lucrative prospects. The United Arab Emirates is located on the world map where it serves to provide an excellent operating base to importers and exporters from around the world (Foreign Affairs - United Arab Emirates). This leads the people of the United Arab Emirates to deal with almost all nationalities of the world and the absence of hindering variables such as rain in a major part of the year allows for business to run without being effected in any way by natural calamities. The United Arab Emirates is led by traditional Arabian monarchy and the United Arab Emirates federal constitution is one that decentralizes power proportionately amongst the seven emirates that constitute the United Arab Emirates. Only major areas are administered on a federal level. These include sensitive areas such as immigration and labor regulations. Other areas which are of lesser priority in the international context are handled by the emirates individually as per their desires. However, most of the times, the emirates choose to adopt policies that are unanimously accepted and in the favor of all the involved emirates. In specific terms however, if one wishes to establish a business in the United Arab Emirates, it is mandatory according to the policy of the United Arab Emirates government that the party that chooses to establish their business in the United Arab Emirates involves a United Arab Emirates national in their business. The presence of the United Arab Emirates national is mandatory, however the position of the United Arab Emirates national can vary as per the scenario. The United Arab Emirates national can be part of the business venture as a partner, a sponsor or even as a mere agent. In any case, the presence has to be there. The only case in which this condition does not apply is that in which the foreign party wishes to establish business in any of the free zones. In this case, the requirement stated above will not hold. In terms of its political infrastructure, the United Arab Emirates is perhaps a one-of-its-kind scenario with a highly unique government infrastructure. The political infrastructure is based on a federal presidential elected monarchy. It is a federation of the absolute monarchies of the seven emirates that form the United Arab Emirates. In the UAR, the ruler of Abu Dhabi is the president of the United Arab Emirates and holds the position of the head of state. Supplementing him is the ruler of Dubai who is the Prime Minister of the United Arab Emirates and holds the position for the Head of Government. In light of the above discussion, we can infer that the United Arab Emirates is indeed a place where business prospects appear to be ones that can be quite lucrative for those who choose to venture. However, the great degree of uniqueness that the United Arab Emirates holds is just as much of a threat as it is an opportunity for new comers since the demographic, economic and cultural terrain is one that is quite different from those found in other high prospect countries of the world. Works Cited BBC. Country profile: United Arab Emirates . 11 March 2009. 14 April 2009 . Foreign Affairs - United Arab Emirates. UAE Culture & Tourism. 2008. 14 April 2009 . Mallakh, Ragaei El. The economic development of the United Arab Emirates. Taylor & Francis, 1981. Walsh, John. UAE - Culture Smart!: a quick guide to customs and etiquette. Kuperard, 2008. Read More