PESTAL ANALYSIS OF UNITED ARAB EMIRATES

PRESENTATION BY: Click to edit Master subtitle style Vishwas Tiwari

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INTRODUCTION
The United Arab Emirates consists of a federation of

seven states (emirates) formed in 1971 after Britain withdrew from the Gulf.
Geographically, UAE has a land area of 83,600 sq. km. The capital city is Abu Dhabi but Dubai has the highest

population of approximately 1.6 million people.

Sheikh Zayed Bin Sultan Al Nahyan is the president. Currency: The UAE Dirham (DH) , 1Dh =

12.2895INR
Exchange Rate: 3.671 DH per US $1 5/4/12

PESTAL
Organizations go through detailed analysis before any

steps are taken towards marketing process. The analysis is all part of the planning process that helps set priority and plan functions that are to be carried out by the organization.

PEST stand for:

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POLITICAL FACTOR
The political situation in the UAE is stable. Gaining loan is based on credibility and relationship. Almost every financial institution invest & assists in

UAE`s capital market.

ADCCI (Abu Dhabi Chamber of Commerce and Industry)

that serve as a bridge between the private sector and the government.
The strong banking system increases presence of

venture capital and government funding provide substantial financial resources to foreign and local 5/4/12 entrepreneurs.

ECONOMIC FACTOR
The UAE has an open economy with one of the

highest GDP per capita($40,300) in the world and a sizable annual surplus. (www.emirates.org/economy) improved very quickly.

In the last fifteen years the economy of UAE has been The primary trade strength of the UAE has been

reconfirmed with the discovery of oil & its development.

Dubai

Financial Market provides an environment, sufficiently attractive to act as a magnet for the massive overseas reserves 5/4/12 (estimated at $600 billion by the IMF).

SOCIO-CULTURAL FACTOR
The culture of the UAE is mixture of traditional and

modern essentials.
The UAE has a high number of expatriate workers within

the country, it was found that expatriate workers made up 78.1 % of the population
In Dubai they give their resident, the non-Emeriti, some

opportunities to enjoy their own culture and religious association.

Although men are dominating in the gulf countries but

nowadays women are playing the vital part in the society. This will help the business to get more customers.
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TECHNOLOGICAL FACTOR
Emirates Internet & Multimedia had a big increase in the

number of Internet users, which reached approximately 920,000 Internet users.

Most of technical job such as data distribution, integrated

business processes and networked communication is in use.

It provide all up-date-technological facilities for all kind

of investment.

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LEGAL FACTOR
Competition law. (helps SME to grow) Foreign

investment law. greenfield investment) G2G, G2B and G2C.

(25%

year

Effective communication campaign between Free zones. (highly attractive with 100% of

foreign investment is allowed.

Commercial licenses covering all kinds of trading activity;

Professional licenses covering professions, services, craftsmen and artisans; Industrial licenses for establishing industrial or manufacturing.
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INFRASTRUCTURE
Plan 2030 in Abu Dhabi with an investment over $100

million.
Transport master plan with investment over

DH300 billion which will challenge as the car mean of transport.

Abu Dhabi airport expansion with increasing capacity. Dubai strategic plan-2015 unveiled in 2007 which looks

upon energy, electricity and transportation and environment.

water;

roads

and

http://yearbook.uaeinteract.com/Yearbooks/2010/ENG/#102

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KEY DRIVERS OF CHANGE

Lots of tourism attraction like Burj al Khalifa, Palm

islands, triple S, etc.

Dubai internet city for creating platform for

companies.

ICT

http://www.dubaiinternetcity.com/

Quality products and services , a good financial track

record, good management or leaders and innovations are the immerging key drivers for UAE. (by Philip kotler)
Better payment with better training for employees leads to

retain them longer and hence business gets best of the employees.
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CONCLUSION
The business will grow in the condition like UAE. Political environment allows or even invites new business

to set up in the country.

Social factor also supports the business and its growth. UAE is one of those countries which have the highest

internet users and also the technology is cheap in the UAE. Hence, it is quite economical and beneficial to set up a business in the market like UAE and get it flourished within a short span of time.
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REFERENCES
http://www.emiratesbank.com http://www.arab.de/arabinfo/uae.htm www.marketingteacher.com http://www.dubaiislamicbank.com/ http://www.uaeforever.com http://www.uae.org.ae www.emirates.org/economy
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