UAE Business paper

Topics: Petroleum, United Arab Emirates, Saudi Arabia Pages: 7 (1600 words) Published: September 15, 2014

By Tanjina Parvin
BUSA 3000-Globalization and Business Practices
Dr. Mourad Dakhli
December 5, 2013

I. Introduction
As stated from Central Intelligence Agency’s research, United Arab Emirates is located in the Middle East, bordering the Gulf of Oman and the Persian Gulf, between Oman and Saudi Arabia. Neighboring countries surrounding United Arab Emirates are Oman, Qatar, Bahrain, Kuwait and Saudi Arabia. The territorial size of the country is 83,600 sq. km- which makes it 115th in the world. The size of the population is 5,473,972 as of July 2013. United Arab Emirates political system is federation with specified powers delegated to the UAE federal government and other powers reserved to member emirates, where the prime minster is the head of the government. The present Prime Minister of United Arab Emirates is Mansur Bin Zayid Al-Nuhayyan. The Prime Minister is elected by the Federal Supreme Council (FSC) for five-year terms (no term limits) from among the seven FSC members. Election last held 3 November 2004 upon the death of the UAE's Founding Father and first President Zayid bin Sultan Al-Nuhayyan. Political parties are not allowed in United Arab Emirates. The UAE’s form of law is mixed legal system of Islamic law and civil law. The UAE has an open economy with a high per capita income and a sizable annual trade surplus. Successful efforts at economic diversification have reduced the portion of GDP based on oil and gas output to 25%. Since the discovery of oil in the UAE more than 30 years ago, the country has undergone a profound transformation from an impoverished region of small desert principalities to a modern state with a high standard of living. The government has increased spending on job creation and infrastructure expansion and is opening up utilities to greater private sector involvement. UAE’s GNI per capita PPP is $47,890 in US dollars, and the GNI per capita is $167,661. The major resources found in the country include petroleum and natural gas. According to the Central Intelligence Agency’s research, UAE’s main exports are crude oil 45%, natural gas, dried fish, and dates. The countries that dominate UAE’s export market and buy these products include Japan, India, Iran, Thailand, Singapore, and South Korea. UAE’s principal imports consist of chemicals, food, machinery and transport equipment, the majority of which come from India, China, US, Germany, and Japan. UAE is a member of various major international organizations such as: World Trade Organization (WTO), Organization of Petroleum Export Countries (OPEC), World Health Organization (WHO), International Monetary Fund (IMF), United Nations (UN), World Customs Organization (WCU), and many more. UAE’s currency is called the Emirati Dirhama (AED) and is not a freely exchangeable currency (Central Intelligence Agency). II. Body

Exporting petroleum and its bi-products from United Arab Emirates will be very good business opportunity in United Arab Emirates. According to the U.S Energy Information Administration, the United Arab Emirates has the seventh largest proved reserves of both crude oil and natural gas. Enhanced oil recovery techniques continued to underpin strong crude oil production totals in 2011, when the UAE produced 2.69 million barrels per day, and are an important strategy for extending the life of the country's aging oil fields. Rapid growth in domestic energy demand over the past few years has caused the UAE to become a net-importer of natural gas. Alternatives to hydrocarbon-based electricity generation are making gains in the UAE, including the use of nuclear and renewable energy technologies. As for businesses like petroleum, government plays a huge role. There are numerous barriers that can exist for such business. However, According to the 2013 index of Economic Freedom, The United Arab Emirates economic freedom score is 71.1, making its economy the 28th...

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