The United Arab Emirates - Government and Politics - Assignment Example

Shаrhоldеrs /Low 1 Name: Course: Professor: Date: Shаrhоldеrs /Low 1 Introduction The United Arab Emirates (UAE) is one of the countries that are located in the southeast end of the Arab Peninsula. UAE borders Oman and Saudi Arabia to the east and the south with Qatar on the western maritime border (King, 2008). The UAE also shares a border with Iran in the north. In the ancient period, a group of tribally organized sheikhdoms in the Arabian Peninsula formed the UAE. The geographical area that was occupied by these people was considered to be of Islamic origin. It consists of about seven autonomous emirates residentially populated with approximately nine million people. The expatriates make most of the population. With the traditional dispensation that surrounded the Islam community, the UAE was bound to contain a strict system in most parts of the country. However, the recent period has seen the UAE experience a number of disputes that have affected the political, social, economic and financial aspects. In order of size, the seven eirates include Abu Dhabi (Abu Zaby), Dubai, Sharjah, Umm al Qaywayn, Ajman, AlFajayrah, and Ras al Khaymah (King, 2008). Over the years, the Arab states have often tried to find a solution for the numerous issues that are present in the region. Constant attacks, torture, insecurity, unemployment, judicial punishment and illegal trade are among the issues that affected the Arab states in the ancient period. The judicial system was considered ineffective as they lacked independence considering that the high-class individuals could interfere with their decisions. They restricted entry to the trade business by enacting polices that would render them at an advantage of trade over other nations. Concentration of resources and presence of corruption were among the predominant activities in the Arabian states. Workers, women and servants experienced harsh systems and policies with low wages. This often affected the economy considering they only attained minimum circulation. A number of shareholders form the UAE. They play an important role in ensuring that the matters related to the Arab countries and the regional aspects are managed centrally. The issues go as far as handling matters that are relating to trade and creating a peaceful nation. Similarly, with the numerous uprisings that are visible in the Arab countries, the UAE agreements play an important role in ensuring that peace is maintained and boundaries are defined (King, 2008). The agreements are evidence of the obligations, rights and privileges that various shareholders are granted over matters related to economic, political and social development. Such agreements also aim at ensuring that resources are distributed equally and the commercial interests of the shareholders are considered through creating time bound and comprehensive policies that will highlight the jurisdiction and consequences of violation. Body Government and Politics To be able to understand the agreements that UAE is involved in with its shareholders, it is important to evaluate the operating systems of the government. The seven emirates have self-governing governments that handle the internal issues present. Each emirate also has a constitution that was launched in 1996 highlighting that any jurisdiction allowed to the federal institution in UAE is a right of the state (King, 2008). UAE gained independence in 1971 with the current ruler being succeeded by the son. After this declaration, the seven states decided on a federal constitution that would be operational for five years. This would mark the start of a new and formal constitution. However, a move to draft a federal constitution failed to pitch effect in the seven shareholders therefore resulting to the adoption of the federal constitution as a formal governing document. The Federal National Council and the Supreme Council of Rulers are the legislative and overall rulers of the seven Emirates. Any agreement that may interfere with the operations within the specific states needs to be passed through the rulers. For any agreements to be deemed applicable in the UAE for discussion, they need to align with the Islamic law. It creates a basis for policies and engagements that support the values, behavior and attitude translated in the Islamic tradition. The sharia also forms a significant part of the constitution (King, 2008). Once any proposed agreement is passed through the Federal National Council and the Supreme Council of Rulers, it is evaluated by the provincial and local government for any flaws and benefits. This evaluation assists shareholders to understand the scope of benefit that may emerge from being part of any agreement. At the local level, the departments carry out and enforce terms of any agreement locally. It prevents exploitation and assures the people within the state that the government is at the forefront of every development. Enhancing Local, Regional and International Trade Most people often associate the existence of the UAE with the increased trade in the Asian continent. Agreements formed by the UAE are often directed towards improving the patterns and policies that govern trade. Each emirate is granted the jurisdiction over the trade activities and business processes (King, 2008). However, with the increasing agreements that are being signed, shareholders are liable for matching up with the conditions that are required for trade activities. The benefits that emerge from these agreements surpass the political, social or even economic aspects of the citizens. UAE has signed countless treaties that offer countries the opportunity to engage in free trade across different platforms. Such treaties attract foreign investors to develop and practically incorporate their ideas into the UAE economy. In this case, international business is attained therefore creating a variety of large and medium companies into the country. Treaties signed by the UAE shareholders tend to receive privileged registration to be able to operate freely in the market. Arguably, other countries fail to offer registration to foreign investors arguing that they deprive locals the opportunity to become relevant in building the economy. UAE shareholders engaged in free trade agreements are able to acquire complete ownership and management of their business (Terterov & Ghurfat, 2006). It makes them eligible for accessing financing from local, regional and international institutions. Moreover, corresponding tax and custom benefits are availed for the UAE shareholders away from the normal implemented payments. Shareholders may not be limited to the amount and level of movement that they are involved. They are allowed the jurisdiction of choosing projects that they deem beneficial and reject risky projects. Based on the legislative allowance that is given to the UAE shareholders, it is possible to deduce that the agreements are of greater benefit than assumed. For instance, UAE agreements allow the registration of offshore companies that promote the objectives of the UAE. Such companies can access fixed assets such as property and land. They can serve as ambassadors to the UAE and participate in national investment projects. Similarly, the exchange of currency, dividend and capital profits has no restrictions. Shareholders enjoy no corporate taxes on the profits they accrue only if they are legally registered. There is no tax on the income of business owner as well as the workers and laborers. The institutionalized financial reporting system has been re evaluated and simplified for companies and shareholders to participate fully. Businesses and trade is organized as desired by the particular shareholder as long as they adhere to the regulations. Labor and Employment Considering that most of the UAE economy is steered through a trade and business process, it is possible that the country experiences the need to increase its labor workforce and employment sector. The UAE tends to employ proactive and experienced people with local, regional and international ties to manage and facilitate trade. Trade agreements in the seven emirates are presided over by qualified personnel who ensure that equality and the commercial rights are included before making the decisions (Goyal & Fasano-Filho, 2004). Similarly, the need for laborers in the manufacture, processing, transport and security levels are required to render the trading process a success. Such agreements foster the success of the employment sector by providing the UAE citizens an opportunity to be part of the diverse workforce geared towards economic development. During the selection process, UAE officials select the national before sourcing experienced people from the international market. Builds Foreign Relations The UAE agreements involve the incorporation of the seven states to attain maximum benefits from any project. However, during a state situation where most countries are experiencing changes in the operations and systems, the Arabian nations need a system that can foster positive relationships and steer development. Among the most popular relationships that have been formed are that between the US and UAE. The two states enjoy a number of advantages that is steered through the trade and economic relationship. Such relationships open the global market for the UAE and other states that would have rather gone without any recognition. Once the UAE has access to the United States market, they are able to blend into the diverse conditions presented to them that translate to economic benefits. With more partners, UAE can exploit dragging markets and penetrate solid economies without the threat of being eliminated (King, 2008). Through modernization and technology, the UAE can create agreements with developed countries and states that will enable them realize more from their activities. Relationships with the foreign field opens up the staunch Islamic beliefs and culture that tends to eradicate any eligibility for agreements. However, the shareholders may use this as an opportunity to create awareness about the effects that cross-cultural differences create across different platforms preventing growth (Varrenti et al., 2011). Once neighboring states view the conditions that are presented in agreements and contracts, they are likely to withdraw if they do not align with their beliefs. Nonetheless, once agreements with the UAE are comprehensive enough to cover issues on both ends and align to the cultural traditions and beliefs, the UAE shareholders tend to benefit equally from the participation. This translates directly to building strong and dependable relationships that are reliable and beneficial. Agreements between the UAE shareholders may prove to be relevant while trying to resettle immigrants previously eliminated from their homes. With the state of insecurity and constant rivalry in the Asian continent, it is possible that the effect of such wars goes to the extent of eliminating the people from their homes. However, once the UAE drafts and passes the agreements regarding any resettlement or allows people the opportunity to settle in the states despite the differences, it is possible that this will foster good relationships. Dependency among the shareholders offers them the opportunity to view each other as a means to an end (Terterov & Ghurfat, 2006). In this case, they can rely on each other to cover them in case of any undesired situation. Such agreement offers the governments and rulers the opportunity to seek out refuge in case of impending danger. This is as the case of the UAE embassy in Iran. UAE agreements also prove to be an advantage when it comes to restructuring the social aspects of life. The family being the basic unit of any society, the Islamic religion places high value to the upholding of such a setting. The agreements make this possible by seeking to improve the living standards as well as the operation of the family by steering integration among the members. They are able to access amenities such as transport, housing, citizenship and security through the UAE agreements. In most cases, allocating embassies allow other nationals the opportunity to live and carry out their activities within a shareholder state aware of the security and value that they hold. Once such families go back to their native states, they tend to give a positive report that may propel the tourism industry. Access to Global Energy Over the years, the Arab nations have been considered as the dominating economies in the production, manufacture and transport of oil products across the nation. The discovery of oil in the Asian continent has often attracted a variety of agreements with diverse countries. Most of these countries view the Arab state as cheaper and accessible area to derive their energy. Degradation in various economies because of the lack of local and regional wells has resulted to the outsourcing of energy products such as petroleum and oil. Because of this quality, the UAE has been able to expand its clientele for energy exports that translates positively to the economy of the state (Varrenti et al., 2011). It forms agreements that will see the increased supply of energy products for used in the manufacture industries and domestic purposes. Therefore, UAE needs to assure the shareholders that the oil manufacture and production areas are operational and will be improved in the near future. UAE may benefit from the global energy they produce in their diverse wells by using them locally to steer some of the processes and economic sectors. With the increasing population in the Arabian region, there is a need to increase the performance and lifestyle of the people. Arguably, it is possible to locate slums and slower growing regions in the UAE. This owes to the fact that the government has failed to ensure that local development is attained. The governments in each shareholder regions may decide to sign agreements that will see allocation of funds and resources to derailed regions. This will act as a benefit to the economy since it steers positive development. Similarly, the UAE may be eligible for recognition as a rapidly developing societal country therefore attracting foreign associations and relationships. Access to Modern Technology and Telecommunication In a rapidly growing society, the effects of technology may be immeasurable as they pose great effect in many countries. For some, technology may come as a disadvantage since it interferes with the cultural traditions of the people such as the Islamic law. However, the UAE shareholders are rapidly integrating technology into their systems to match up to the global international market. Evidently, technology has provided many economies with the opportunity to access a variety of goods and services through online platforms. Initially, the Islamic law prevented the women and girls from actively engaging in business, political or financial matters that posed a threat to the family and religious setting. However, t he modern dispensation has witnessed a change in terms of access and delivery of information across borders. The UAE has signed agreements with shareholders to foster the idea of technology in trade that will create a smooth and timely process. Information communication technology has also played a huge role in serving the humanity, fortifying leadership and elevating the level of UAE in the global innovations economy. This effect comes at a time when the UAE signed a participation agreement with the Information Communication Technology Fund to regulate the telecommunications sector. UAE is likely to benefit from such agreements considering that most counties desire cooperative alliances with global platform states. UAE will be able to display their innovations and inventions through a competitive platform that will ensure education and development is attained. Through such participation, the UAE shareholders can implement smart solutions within the different levels of the country at an affordable, timely and budgeted cost. Similarly, they will determine the areas that require research and development availing any necessary resources especially in the trade area to realize full potential. Technology and innovation provides the manufacture and trade arena the opportunity to device modern ways of excavating oil and drilling more wells. Some counties employ technology in their mining and excavation processes to eliminate the possibility of waste and to hasten the process. With technology comes a drastic change in the equipments that drill, transport and produce oil. UAE agreements tend to sensitize on the ability of technology to transform the economy by increasing the supply to meet the demand for oil products. Similarly, applying technology in business may enable accurate and determined results for various processes. Refined oil for instance may be considered impure once extracted. However, incorporating technology may render the process complete creating desirable products. In this case, it is possible to attain quality and quantity using technology and modern machinery. Outsourcing such equipments from other shareholder or other countries may prove beneficial in terms of the economic and financial aspects. This is in line with the commercial interests that UAE may engage in. The Banking Sector E-commerce in the banking sector is a recent development in business and trade that has experienced hostility in different countries. This hostility is associated with the belief that invisible trade creates an avenue for fraudsters and money launders to maneuver in the international scene. Considering that, the UAE shareholders have always been associated with allegations of terrorism and harboring fugitives, the effect of technology may be associated as a cause. However, UAE shareholders may refute this allegation through implementing the free trade policy that is associated with electronic commerce. In this case, UAE officials and shareholders do not need to travel miles to make payments and receive payments. For instance, the Dubai Financial Market (DFM) and the Abu Dhabi Securities Market opened in March 2000 have been linked electronically to facilitate financial activities. Similarly, the UAE shareholders are likely to benefit from the international monetary transfer system that assists states to make large transfers of funds that are heavily monitored and secured. At the wake of technology, UAE agreements foster relationships with companies and countries that are associated with the design and development of the transfer systems. Security The UAE has over the years been associated with signing various security based treaties among the emirate shareholders and internationally. They include treaties on aviation, defense articles and services, the confidentiality of military planning and the police investment guarantees. The Nuclear Non-Proliferation Treaty and the Chemical Weapons Convention are also part of the security agreements UAE is part (Abed & Hellyer, 2001). The federal government in the different emirates has the jurisdiction over the armed forces and weaponry. Because of the many treaties and agreements that have been signed by the UAE shareholders, UAE is considered one of the most rapidly developing predominant military powers in the Gulf area. The army, navy and air force maintain the security and integrity of the UAE. They also ensure that privileged security is offered in trade harbors and transport sites. Their military equipment is considered top class with battle capabilities only owned by dominating powers. Human Rights Gulf countries have been identified as an area where constant violation of human rights occurs especially on immigrants and refugees. Although the government has tried to eliminate any traces of such factors, the prevalence of the situation owes to the lack of enforceability by the concerned parties. However, the development of human rights protection laws by the UAE legislative council has proved effective to some extent (Varrenti et al., 2011). Initially, the UAE did not have any legalized policies that would counter this effect. However, various enactments that took place in 2005 saw a number of people who were trafficked into UAE repatriated to their countries. This relieved UAE of the burden of creating a program that would cater for the refugees, illegally trafficked and immigrants. Enforceability of UAE Agreements Agreements between UAE shareholders are a common activity in the country. Such agreements are viable only if the company has one or more shareholders that own a certain amount of share in the capital (Terterov & Ghurfat, 2006). This should be above 51% share capital. In this case, foreigners are limited to only 49% share capital ownership in the UAE. Therefore, it is possible to say that shareholder agreements are enforceable in the UAE. Agreements in the UAE are designed to protect the interests of the foreign investors. However, there is no formal requirement or limits on the term of agreement for such treaties. Conclusion The United Arab Emirates has brought massive change to the traditional system in the Arabian Peninsula and the Persian Gulf. Because of this, most shareholders view the UAE as a revolutionary step that accelerates attainment of success. It has helped build a number of relationships and settle disputes between the Islamic communities that were initially considered as unending rivals. Similarly, the agreements have attracted an improvement and expansion of trade across various states by allowing regional, local and international trade to take place in the states. It has opened the transport sector to experience the massive improvements through the trade and project agreements designed. Although the UAE has been associated with increased controversy on the interpretations of the Islamic law, it has experienced rising international popularity that is gaining acceptance among neighboring states and nations. References Top of Form Top of Form Top of Form Top of Form Top of Form Bottom of Form Abed, I., & Hellyer, P. (2001). United Arab Emirates: A new perspective. London: Trident Press. Goyal, R., Fasano-Filho, U. (2004). Emerging Strains in GCC Labor Markets. Washington, D.C: International Monetary Fund. King, D. C. (2008). United Arab Emirates. New York: Marshall Cavendish Benchmark. Terterov, M., & Ghurfat Tijārat wa-Ṣināʻat Dubayy. (2006). Doing business with the United Arab Emirates. London: GMB. Varrenti, A., Cuevas, F., Hurlock, M., & Crouzel, R. H. (2011). Shareholders' rights: Jurisdictional comparisons. London: The European Lawyer. Bottom of Form Bottom of Form Bottom of Form Bottom of Form Read More