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Uae - Assignment Example

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E-Commerce Name: Course: Course code: Tutor: Date Strengths and weaknesses of service industry in United Arab Emirates Introduction A country’s economy comprises of various sectors working together uniformly to achieve a unitary economy. The significance of each sector varies from one country to another depending on its strengths or weaknesses…
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Download file to see previous pages... A service industry comprises of various companies which basically earn income by providing intangible services and products. They are involved in transport, food services, retail, distribution and other service-dominated enterprises. At times, they are called tertiary sectors or service sectors. Strengths Economic strengths The steady oil prices in the country has boosted transport sector to highest levels. Most of the economy revenue comes from the oil industries. For the past few years, according to the country’s statistics, the world market has remained stable favoring service mobility. Transport industry has benefited most from this global market. As a result of this, non-oil sectors have been stimulated thus escalating the disposal revenue of the less performing segments of the entire population. Generally, the country produces up to 22 million barrels of crude oil for export daily. This boosts the country’s economy (Gorgenlnder, 2011). The country also has steady and convertible currency which is pegged to the US dollar with minimal foreign exchange controls. This facilitates easy movement of services from one part to the other. If the global financial crises arise, it has survival tactics to make it productive in the market. Furthermore, UAE has been known for very competitive labour costs and real estates. The country has experienced and readily available work force that provide cheap and quality labor. Most of the work is done by these locals thus low cost of productions. The country’s permissive policies and healthy balance of payments allow free trade movements within and without the country. This allows free flow of services/goods thus boosting the economy (Group, 2008). Geographical strengths The country is strategically located at the Middle East, with very easy contact to not only to Eastern and Middle Eastern markets, but also to South Asia, Philippines, Malaysia, Indonesia and other markets in the Asian countries. This implies that there are ready markets for the manufactured goods and services. Furthermore, the country has well established ports that can access to main sea routes. Most of the trading countries use these ports for exit and entry in transacting businesses. This has made the country to be seen as a pacesetter and a regional leader for development. Commercial strengths According to Gorgenlnder (2011) and Group (2008), the country has open trade zones favorable for business start-ups. Most of the enterprising people can easily nature their talents and explore market opportunities easily. Interestingly, the country has no corporate and personal taxation. Any business start-up has no personal/corporate intimidation in form of taxes. More often than not, most businesses fail due to high taxation and unfavorable work environment. This favor has been extended to other countries; there is no taxation for information exchange. Infrastructural strengths UAE has sophisticated and ultramodern banking sectors that provide various services for its rich expatriate clientele. Most financial institutions are furnished with modern facilities which accommodate the needs of the clients. In fact, the banking sector has been privatized to enable quality delivery of services. Also, the country is equipped with IT infrastructure and ...Download file to see next pagesRead More
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