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United Arab Emirates (UAE)

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on 4 February 2015

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Transcript of United Arab Emirates (UAE)

Population Demographics
UAE has a total population of 9.302 million
Canada has a population of 35.16 million
The currency in the United Arab Emirates is dirham, abbreviated to AED

The dirham has both coins and bank notes
Dubai Refreshments LLC - Pepsi
United Arab Emirates (UAE)
Formed in 1971
A federation of seven emirates
Individual emirates are governed directly by their ruling families
The Council of Ministers:
Lead by the prime minister
Oversees the federal government
All emirates are represented with at least one position
The Supreme Council of Rulers:
Highest federal authority
Its members are the hereditary rulers of the seven individual emirates
Federal president is always the leader of Abu Dhabi
The prime minister is traditionally the ruler of Dubai

1. Population Demographics
2. Political Issues
3. Legal Issues
4. Cultural Issues
5. Currency
6. Trade Barriers
7. Balance of Payments
8. Physical Forces
9. Multinational Company
10. Representative
11. Invest?

Arabic Official Language Spoken
Persian, Hindu, English and Urdu also spoken
Gender Distribution
Family Life
Emirati 19%, other Arab and Iranian 23%, South Asian 50%, other expatriates (includes Westerners and East Asians) 8%
The Religion of Islam
Islam is the official religion of the UAE
Followers of Islam are called Muslims
Emphasizes community and solidarity, rather than an individual’s sense of well-being or personal fulfillment
A culture that governs daily life
Influences clothing, food and
drink, economy and politics

Legal System
Legal system based on the 1971 constitution legislature
Federal National Council
Core principles of law are drawn from Sharia Law
Most legislation is comprised of both Islamic and European concepts of civil law
Three main branches within the court structure:
Civil, criminal and Sharia law

Physical Forces
Government Structure
Workforce: 4.588 million
Main Political Figures
Sheikh Khalifa bin Zayed al-Nahyan

President of the UAE, ruler of Abu Dhabi and the most powerful man in the country

Sheikh Mohammed bin Rashid al-Maktoum
Prime Minister/Vice-President of UAE and ruler of Dubai

agriculture: 7%
industry: 15%
services: 78%
19.5% below poverty line
Fils and Dirhams
Key Relations/Treaties
Member of Gulf Cooperation Council (GCC), Arab League and OPEC
Strong alliance with U.S, which has several military bases on UAE territory
Signed agreement with France in 2008 for establishment of permanent French military base in the UAE

Unemployment rate: 2.4%
Rated 19th where
Canada is 75th
Threat of Terrorism
No significant incidences of terrorism to date
Increasing domestic and foreign assertiveness
In November, UAE blacklisted 83 groups as
terrorists across the Middle East and Europe
under a new anti-terrorist law
Extremist Groups (such as Isis and the Muslim Brotherhood)
Islamist militants (such as al-Qaeda)
To ensure transparency and to raise awareness

Body Language
Religious Arabian men and women can only greet each other verbally
Body contact is forbidden
In more western-oriented regions, men and women greet each other by shaking hands
Must greet using right hand
Left hand considered unclean – using it would be seen as an insult and to belittle somebody
Men in Arabian countries traditionally greet each other by touching noses

Rent prices in UAE are 146.61%
than in Canada
83,600 sq km
Ontario is 12 times bigger than the UAE
Business Customs
Eat, shake hands and pass documents with the right hand only
Meetings and business appointments may be interrupted for prayer
Importance of solidarity and personal relationships
Value being effective over productive
Clear rules and regulations in the workforce, resulting in disciplined and submissive behaviour
Emotions are regularly shown in work-related interactions

Flat, barren coastal plain merging into rolling sand dunes of vast desert wasteland
Treatment of Women
Adhere to gender roles and the individual duties and responsibilities within the family
Male supremacy embedded in Arabian society
Women face obstacles in the job market and gender segregation in companies
Mandatory for women in the Arabian regions to wear a headscarf and cover their bodies
Have made meaningful progress in roles related to political and leading positions in general
More and more women are actively involved in the working environment
Women continue to fight for their right to vote, take part in training possibilities and to be employed for any kind of job

Are restaurant prices in UAE
than in Canada?
Desert climate
Restaurant prices in UAE are 6.36%
than those in Canada
Mountains located in the east with a cooler climate
Priority of the Supreme Council of Rulers to further develop and improve education
Imported educational systems and personnel
USA and UK are two main providers of expertise, structure, and curricula
Approx. half the schools are government-run
Expatriates can enroll, however, state education is free only for citizens
One of the lowest pupil/teacher ratios in the world
Aim to:
Build a modern and competitive university system
Create an educated and trained workforce
Reduce reliance on expatriate personnel

Are grocery prices in UAE
than those in Canada?
Grocery Prices in UAE are 23.87%
than those in Canada
Balance of Payments
Middle East, bordering the Gulf of Oman and the Persian Gulf, between Oman and Saudi Arabia
Balance of Payments
Human Rights
UAE criticized for its human rights
Some legislation discriminatory against women
Domestic violence is permitted under UAE law
Many migrant workers are subjected to human rights abuses
UAE issued a counter-terrorism law giving UAE authorities the power to prosecute peaceful critics, political dissidents and human rights activists as terrorists
Does not allow freedom of speech
Not a signatory to most human rights treaties
Has not responded to repeated efforts by human rights groups to organize inside the country
Human Development Index: 40

UAE is highly dependent on exports
In 2014, exports accounted for 80.4% of GDP
Asia (india and japan) is the most important marker for UAE’s exports, with 55.4% in 2013

Established in 1971 to operate in all areas of the oil and gas industry
ADNOC state owned oil company
UAE’s biggest company
The company operates two oil refineries which are Ruwais and Umm Al Nar
Natural gas is exported in the form of liquefied natural gas and supplied for local electricity and water utilities, to other industries including petrochemical plants and for re-injection into reservoirs to improve oil and condensate production
ADNOC is the eighth largest recipient of US federal contract dollars, receiving a total of $918,256,500 in 2008 alone
Trade Barriers
-The UAE market is a Customs Zones or Free Trade Zones with the distinguishing factors:

: goods destined for the UAE's Customs Zones are subject to duty under the GCC's Common Customs Law while goods destined for Free Trade Zones are exempt from duty
Market Access
: Exporters with products destined directly for Customs Zones are required to appoint a distributor with some local content, at least 51% local ownership.
Companies whose products enter the Customs Zone via the Free Trade Zone must appoint a local distributor, a 100% local agent. The Trade Agencies Law sets the legal frame work for this relationship.
Equity ownership:
Free Trade Zones allow foreign companies to own up 100% on equity of the firm while Customs Zones generally allow foreign entities up to a maximum of 49% on equity.
external tariff of 5%, the GCC's Common External Tariff (CET), is levied ad volarem on all imports to the GCC market.
No tariff quotas, nuisance rates or additional duties and taxes on imports are applied. This rate is levied on goods entering the GCC's customs zones including the UAE's customs zones and excludes the free trade zones.
The CET of 5% is also the most-favoured-nation rate (MFN rate) and the UAE will grant, with some exception, MFN treatment to its trading partners.
Abu Dhabi and Dubai are the principle ports of entry into the UAE; they both employ the Harmonised Systems (HS) when classifying exports, and offer customs services electronically.
Exporters would be required to provide the following documentation to clear customs:

Import Goods Declaration
Delivery Order
Original Bill of Landing
Original/authenticated invoice*
Certificate of Origin, original or authentic copy
Packaging list with HS code.

The UAE currently does not apply subsidies or import quotas

1L of Milk in UAE costs CAN$1.90
It is an obligation for Muslims to pray five times per day.

1.5L Bottle Water in UAE costs CAN$.69
.33L Can of Coke in UAE costs CAN$.54
Work Cited
Pack of Marlboro Cigarettes in UAE costs CAN$3.43
Levi’s jeans in the UAE cost CAN$119.56
"United Arab Emirates Country Profile." The Economist Intelligence Unit (2008).

"United Arab Emirates Country Report." The Economist Intelligence Unit (January 2015).

UNESCO Institute for Statistics. "United Arab Emirates Country Profile." 2015. http://www.uis.unesco.org/DataCentre/Pages/country-profile.aspx?code=ARE.

"United Arab Emirates Business Forecast Report Q1 2015." Business Monitor International (January 2015).

Kurr, Simeon. "UAE blacklists 83 groups as terrorists." Financial Times, November 16, 2014. http://www.ft.com/cms/s/0/09e13dee-6db8-11e4-bf80-00144feabdc0.html#axzz3QW9sJaQo.

Brooks, Chad. "10 Unusual International Business Customs That Might Surprise You." Business News Daily. http://www.businessnewsdaily.com/5176-unusual-international-business-customs.html.

Human Rights Watch. "United Arab Emirates World Report 2015." http://www.hrw.org/world-report/2015/country-chapters/united-arab-emirates?page=1.

Khedr, Ahmed Aly, and Bassam Alnuaimi. "A Guide to United Arab Emirates Legal System." GlobaLex. http://www.nyulawglobal.org/globalex/united_arab_emirates. htm#legalsystem.

Gasiorowski, Mark, David Long, and Bernard Reich. The Government and Politics of the Middle East and North Africa. 7th ed. N.p.: Westview Press, 2013.

Zajda, Joseph, Holger Daun, and Lawrence J. Saha. Nation-Building, Identity and Citizenship Education. Vol. 3. N.p.: Springer Netherlands, 2009.

Schwaighofer, Verena. Tourist Destination Images and Local Culture Using the Example of the United Arab Emirates. N.p.: Springer Fachmedien Wiesbaden, 2014.

Sex and the City 2 - Abu Dhabi Scene
Total of 43 Airports, 25 with Paved Runways
5 Major Seaports, 2 being located in Dubai
Petroleum and natural gas major natural resources
Guess The Cost
Should You Invest?
Middle East: United Arab Emirates. N.p.: The World Factbook, 2014.

Emerging Focus: Rapid Urbanisation Leads to Rising Consumer Demand but Creates Challenges. 2013. Passport.

Emerging Focus: Smaller Households Rise in Emerging Market Economies. 2012. Passport.

Emerging Focus: Ageing population in emerging market economies. 2010. Passport.

Dubai Refreshments (P.S.C.). 2007. http://pepsidrc.com.
Simoes, Alexander. Macro Connections. Accessed February 1, 2015. http://atlas.media.mit.edu/profile/country/are/.

XE. Accessed January 31, 2015. http://www.xe.com/currencycharts/?from=AED&to=USD&view=2Y.

The Canadian Trade Commission Service . Accessed January 31, 2015. http://www.tradecommissioner.gc.ca/eng/document.jsp?did=138476.

Cost of Living Index. Accessed February 1, 2015. http://www.expatistan.com/cost-of-living/abu-dhabi.
Are rent prices in UAE
than Canada?
Pack of Marlboro Cigarettes in the UAE would cost CAN$3.43
AED lowest at 3.67150 (June -14)
AED highest at 3.67330 (Dec- 14)
Levi's 501 Jeans
Levi's 501 Jeans in the UAE would cost CAN$119.42
1L of Milk
.33L of Coke
1.5L Bottle Water
Pack of Malboro Cigarettes
Abu Dhabi National Oil Company
Full transcript