Pestel Analysis In Dubai

PESTEL Analysis

• POLITICAL:

In the UAE, both individual emirates and the Federal Government put regulations on the economic activity. The Dubai authorities have been deliberately aiming at creating an environment which is in good order without being overly restrictive. Therefore, businessmen are offered with the most liberal and attractive conditions within the region when operating their business in Dubai.

a) Corruption

Holding its position of the best placed Arab nations, the UAE appears as the 25th cleanest country out of 175 countries in the world according to the analysis by Transparency International. Being a part of the UAE, Dubai is perceived to have a political environment with great transparency.

b) Political stability

With almost

Extensive credit facilities and plentiful liquidity are brought by its well-developed, sophisticated banking system.

d) Trade policies

The governmental policies encourage FDI in Dubai. Over the past decade, Dubai (and the UAE) continued to improve its business environment by building infrastructure and enacting business-friendly laws and policies intended to make it competitive in the region. These efforts have resulted in an increase in FDI inflow, which has resulted in Dubai becoming one of the top 15 attractive investment destinations according to a 2013 FDI confidence index. In 2013, the UAE ranked 14th among the top destinations preferred by foreign investors.

• ECONOMIC:

The economic performance of Dubai (and the UAE in general) has been perceived as the most successful one within the GCC region, especially for its diversifying economy away from oil. Although the Dubai economy was almost exclusively about oil back in the early days, Dubai nowadays is only directly dependent for around 4% of its GDP on oil revenues. Today, everywhere visitors look they will find evidence of a large number of infrastructure spending – roads, airports, residential areas, hotels, attractions,

This means that the introduction of foreign ownership of land and stocks is taken into consideration – in fact Dubai was the first emirate within the UAE to open its property market to foreign ownership. (Dubai FDI, 2012)

UAE ranks 58 in starting a business, 3 in dealing with construction permits, 10 in registering property, 64 in protecting minority investors, 89 in getting credit, 1 in paying taxes and 27 in enforcing contracts according to DB 2015 bank. All these numbers indicate that Dubai is recognized for its attractive economical environment for foreign investment and minority investors.

One thing that needs certain attention is that, people will need specific amount of money to open a business in UAE. When the business is registered, people must show the Ministry of Commerce that they have a substantial sum of money to invest. The required sum of money varies between the states (it’s between $10,000/£6,500 and $50,000/£33,500 in most cases) and is regarded as a guarantee against