StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

Free Trade Zones in UAE and Economic Development - Research Paper Example

Comments (0) Cite this document
Summary
Instructor: Contents Contents 2 Introduction 3 Abu Dhabi Airport Free Zone (ADAFZ) 3 Positive Contributions to the UAE 3 Negative Contributions to the UAE 4 Benefits to Investors 5 Strategies for Growth 5 Dubai Media City Free Zone (DMC) 6 Negative Contributions to the UAE 7 Strategies for Growth 8 UAE Free Trade Zones Employment Rules 9 10 Conclusion 11 References 12 Free Trade Zones in UAE and Economic Development Introduction United Arab Emirates (UAE) has established many Free Trade Zone Areas in order to provide an incentive for businesses to be located in the region…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER96.4% of users find it useful
Free Trade Zones in UAE and Economic Development
Read Text Preview

Extract of sample "Free Trade Zones in UAE and Economic Development"

Download file to see previous pages This paper focuses on two companies only i.e. Abu Dhabi Airport Free Zone and Dubai Media City Free Zone. Abu Dhabi Airport Free Zone (ADAFZ) Positive Contributions to the UAE The Abu Dhabi Airport Free Zone is a business and logistics park which is being established by the Abu Dhabi Airports Company (ADAC). The creation of ADAFZ is a milestone for Abu Dhabi to globally establish itself as a leading business centre. Expansion of the airport will enable passenger traffic to shoot from the current 7 million to over 40 million per year. Cargo capacity will also be boosted to two million tons from the current 150,000 tons per year. (Ameifo.com, 2011). According to uaefz.com, multiple business ventures are being established ranging from logistics, aviation and aerospace, consultancy, business development, computing and information technology, electronics, express transport, medical equipment and pharmaceuticals. Various amenities have been put together under one roof and conveniently integrated to provide the best services for investors (Jumeiraconsultants.com, 2011).  The free trade zone provides the locals with better goods at subsidized prices hence boosting the economy. The cheapness of goods is usually as a result of cheap production costs in addition to cheap imported labor. The UAE is freed of re-tasking its resources and instead focuses on its comparative advantages. ADAFZ and other free trade zones function as economic laboratories, which allow UAE governments, to learn what will be most beneficial to their economies over a long time (Ehow.com, 2011). Negative Contributions to the UAE Abu Dhabi Airport Free Zone may appear as an equal opportunity for everyone, but, these advantages come along with some disadvantages. The disadvantages extend for UAE is related to the technology level which means that the less industrialized emirates may suffer a disadvantage till they technologically develop. When Abu Dhabi opened its borders to the other emirates to be in the same free trade zone, it also invited fierce competition as well. This means that the whole of UAE competes with one another (Uaefz.com, 2011). The free trade area may also economically develop the area around the airport more than other regions in Abu Dhabi and UAE as a whole. This region may attract more foreign investors than other regions which may lead to economic underdevelopment of some other areas in the free trade zone. The underdevelopment may also impact the Abu Dhabi’s (Ehow.com, 2011). The issue of opening of borders brings the challenge of corporations seeking out for the lowest labor and environmental standards in order to minimize its production costs hence pressuring for low working standards. Furthermore, the transparency and absence of strict regulations of ADAFZ make it an attraction for illicit investors to launder crime proceeds and maybe finance terrorism (Fatf-gafi.org, 2011). Benefits to Investors According to Abu Dhabi (2011) an investor has to lease the facility in ...Download file to see next pages Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Free Trade Zones in UAE and Economic Development Research Paper - 2”, n.d.)
Free Trade Zones in UAE and Economic Development Research Paper - 2. Retrieved from https://studentshare.org/macro-microeconomics/1436798-free-trade-zones-in-uae-economic-development-dubai
(Free Trade Zones in UAE and Economic Development Research Paper - 2)
Free Trade Zones in UAE and Economic Development Research Paper - 2. https://studentshare.org/macro-microeconomics/1436798-free-trade-zones-in-uae-economic-development-dubai.
“Free Trade Zones in UAE and Economic Development Research Paper - 2”, n.d. https://studentshare.org/macro-microeconomics/1436798-free-trade-zones-in-uae-economic-development-dubai.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Free Trade Zones in UAE and Economic Development

International Trade Theory

 Further to this, it is also believed that international trade can bring substantial economic welfare to the countries however still most of the countries do not view it as a favorable thing. Despite having a very promising and bright outlook, international trade has been largely viewed with suspension and it is because of this that governments impose barriers to restrict international trade. There can be many reasons behind this act of imposing restrictions or blocking international trade however there are also benefits on the other side too.

International trade has driven the attention of many of the brilliant minds in economics therefore the origins of the economic theory on international trade owe much to the c...
6 Pages (1500 words) Case Study

The Trade Union Movement in the UK

Before the ERA 1999, union membership and recognition in the UK were characterized by voluntarism, in which employers and employees could bargain over the terms and conditions of employment without any legal interference. With the statutory system ushered in by the new law, voluntary recognition of unions is no longer allowed and it becomes unlawful for British employers to deny recognition to unions under any circumstances. That conveys the impression that ERA created a radical change in British industrial relations. This paper takes the contrary view, however, and proposes that while the new industrial relations law looks revolutionary in principle, there are no fundamental changes in actuality for the change to qualify as &ldqu...
8 Pages (2000 words) Case Study

The Economic Impact of the Emergence of China and India

The main macroeconomic variable that toys in the global economy’s shift are the emergence of India and China as new superpowers. This emergence certainly has a number of implications, but among the most relevant are: disruption of the equilibrium of the global economy which results in rising demand of goods, giving way to worldwide inflation; the attractiveness of outsourcing to these countries due to low cost but high talent workforce of these countries for cheaper operations.
The growing middle class of China and India results in booming demand for the automobile industry. This increase in demand, with the increasing purchasing power of these countries’ people, is not limited to automobiles but more apparent in...
10 Pages (2500 words) Assignment

The Effect of Democracy on Chinese Development

Any country first needs to go through economic liberalization and political liberalization before finally settling into a stable democratic situation. Democracy should not at any one point be viewed as if it were socialism, but should be seen as a means of promoting economic development through accountability and protection of individual lawful rights and interests...accountability in the sense that the respective leaders are able to fight corruption, enhance social harmony, strengthen public trust and more importantly empower government institutions that are directly in touch with the people (Liu, 2008, p.1-2). Owing to the Chinese well informed and affluent society on top of having a very dynamic economy, the political change wh...
7 Pages (1750 words) Coursework

Potential Benefits of International Trade

.... One of the popular trade bloc is the EU (European Union) and the Association of South East Asian Nations (ASEAN). The trade blocs encourage relations in terms of trading between member countries. To protect these relations they put across barriers of trade to non-member nations. Grant and Vidler (2003) One of the most recent actions by nations with respect to trade barriers is one presented by Washington Post Russian which is the biggest market of automobiles in Europe raised the level of taxes on foreign cars’ Importation. It hit the 35% mark in December 2008. This is due to the recent global economic crises and struggling economies. Global trade leaders had vowed to uphold free trade principles and rid of themselves the trade...
6 Pages (1500 words) Coursework

Macroeconomics and Trade Policys

Keynes argued that prices and wages do not determine the level of employment, as many classical economists suggested, but instead the level of aggregate demand for goods and services (Case & Fair 683). Keynes realized as well during the Great Depression that the government could intervene in the economy to attain specific employment and output goals by either increasing or decreasing taxes and government spending.

For example, raising taxes will decrease the disposable income of households and thus effectively decreasing consumption. When the government decreases consumption, the household demand for goods and services decreases thus it would only seem reasonable that the amount of output that the economy would also...
7 Pages (1750 words) Article

Economic Analysis of India

The country’s economy is fast growing with a stable political system that encourages foreign investment although with certain restrictions. The country generally has good energy, transport and communication systems which make the cost of doing business affordably.

The Republic of India found South of Asia is by far the world’s most populous democracy and ranks seventh largest in terms of geographical area (Brown, 1994). India is also the second most highly populated country in the world. The country has a rich culture with four major religions having originally emerged from it; Sikhism, Buddhism, Hinduism, and Jainism. The Indian Republic consists of seven union territories and 28 states and ranks twelfth la...
8 Pages (2000 words) Case Study

Free Cash Flows Theory

These are not hard and fast rules in determining the capital structure which should best affect a firms value. These theories lay down the benefits and the costs when a firm chooses what it sees as an adequate mix to maximise the shareholders value.

One of the implications where this research can lead include the possibility of the effectiveness in maximising shareholder value by employing two or more theories in capital structure decisions. Because these theories are more conditional by nature, probing which combinations when used for capital structure decisions are more effective in arriving at the goal of maximising firm value can be another subject for further research.
The role of capital structure in increasi...
11 Pages (2750 words) Case Study

International Business: World Economic Forum and Davos 2010

While each force of globalization is important, the technological revolution has impacted the business models, value creation and differentiation (Spelman, 2010). The cloud computing technologies that have made the popular social networking applications possible are now being applied to development, healthcare, and society. Today mobile telephones are more like powerful computers that take care of many of the societal challenges facing both developed and developing countries (Evans, 2010). In Chile, new software enables weather information to farmers who can now make informed decisions on when and how to sow or harvest the crops. However, the fear or ignorance of cloud computing technology could harm the chances of the SMEs becomi...
7 Pages (1750 words) Coursework

Globalization and World Economic Forum at Davos 2010

...Globalization and World Economic Forum at Davos Forces Driving Globalization Globalization has resulted in enhanced interdependencies among thenations of unprecedented scale. This augmented interdependence has caused the dismantling of trade barriers and liberalization of markets. The forces of globalization have impacted the nations, the firms and the individuals alike with the prerequisite of liberalization of trade (Awuah, 2009). The seven forces of globalization are; Markets, Production, Culture, Labor, Technology, Environment and Liberalization. Of these factors, the globalization of markets has engaged substantial attention of the firms and the academia. Some markets are highly globalized, while some are not. The scale of market...
7 Pages (1750 words) Coursework
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Research Paper on topic Free Trade Zones in UAE and Economic Development for FREE!

Contact Us