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Economic and Political Environment of Dubai Paper

Words: 3730, Paragraphs: 34, Pages: 13

Paper type: Essay , Subject: Environment

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In recent years, Dublin, a city within the united Arab Emirates, or emirates (AJAX), has seen significant growth and is continuing to be viewed as a great place to do business. With a population of over 2 million, not only is Dublin booming, but it is a free trade zone, offering 100% foreign ownership and zero taxes for potential investors (CIA Fastback 2012). While the Dublin economy was once almost exclusively about oil, today, Dublin is only directly dependent for around 4% of its gross domestic product (GAP) on oil revenues (Emirates 2012).

Dublin is located in the Middle East, bordering the Gulf of Oman and the Persian Gulf, between Oman and Saudi Arabia. The city of Dublin is located on the Persian Gulf, right on the water front. Due to the extreme heat in this desert climate (ranging from 59 ;115 degrees Fahrenheit), citizens live in very close proximity to the coastline. The Sea’s per capita GAP, $48,500 is on par with those of leading West European Nations. The CIA Fastback states the main economic industries in Dublin consist of oil, fishing, aluminum, cement, handicrafts, textiles, and fertilizers.

While Dublin started as a small fishing village, it was take over in the sass’s to become a operate emirate of ABA Dhabi. In order to seek protection, Dublin signed a number of treaties with the United Kingdom and the 1892 exclusive agreement brought safety to the city. Unlike many other Arab cities and countries, Dublin fostered trade and commerce. Early rulers H. H Sheikh Eased Bin Maximum from 1912 to 1 958, followed by his son, H. H Sheikh Rash Bin Eased AAA Maximum, were instrumental in leading and directing Tuba’s path the city it is today.

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These same early rulers also proposed many Of the buildings that make Dublin famous: the World Trade Centre, Dublin Tower and the traffic leading Dublin international Airport. In 1971 , when the British left the Persian Gulf, Dublin, together with ABA Dhabi and five other emirates, formed the United Arab Emirates. A form of currency called the dirham became the local currency and was adopted in 1973 as the uniform currency by Dublin and the emirates. From a small old-world town, Dublin became the modern beauty it is today, with excellent communication, transport, and infrastructure (Duplicity 2009).

EXECUTIVE SUMMARY Economic Environment Tuba’s ambitious growth strategy can be witnessed through the diversity of its GAP composition, but an issue forcing Dublin to make some difficult uncial decisions is its financial relationship with Iran. Despite much of the instability in the Middle East, Dublin is still considered a safe haven for foreign investment and is considered to be relatively stable. As long as the world economy avoids another major crisis in the next decade, Dublin will have the opportunity to secure its long-term economic prospects and further establish itself as the Middle Seats premiere financial hub. Lattice Environment The current political climate in Dublin, and the rest of the AJAX, is relatively calm in comparison to other parts of the Middle East. The political climate is tipped in tradition, but has been leaning toward modernization more recently. Throughout the AAU, the major political strife going on is that of political activism calling for modernization. The introduction of liberal Western ideals, combined with a progressive Eastern influence, has resulted in the movement. Military Capability An in-depth look at Sea’s military expenditures communicates that a small amount of revenue is designated for the military.

The United Arab Emirates has recently begun a push to produce more of its own military equipment in an effort to reduce foreign dependence and help its own economy. The four largest foreign suppliers that Dublin and the CIA rely upon are the Ignited States, France, United Kingdom, and Russia. All of the AJAX, including Dublin, share the same military. Social and Cultural Environment The social and cultural situations of Dublin are a product of its multinational society, which has resulted in a rich and diverse culture. The diversity of Dublin ranges from its music, religion, cuisine, nightlife, athletic sports, and population.

Islamic traditions are the core of its lifestyle, and Dublin is considered a rare and valuable community that has a strong cultural imprint, s it is home to a large variety Of ethnic and national groups. However, despite how quickly the country is evolving, the people of Dublin remain conscious of its culture. MAP OF DUBLIN Dublin is located south of the Persian Gulf on the Arabian Peninsula. It also has the largest population with the second- largest land territory by area of all the emirates, after ABA Dhabi. While the foundation of Tuba’s economy may have been built with oil revenues, only about 4% of Tuba’s GAP is oil-based.

If Dublin had not invested a substantial portion of its oil reserves into developing additional industries and infrastructure, the economy of the emirate would not have grown So exponentially. The Oil reserves of Dublin only constitute approximately 2% of the total reserves in the AJAX, and they are projected to be depleted before 2020 (mayflowers. Com 2012). Dublin has drastically transformed its economy in the last twenty years with the aid of foreign capital and its strategic domestic investments that were initially funded by oil.

The majority of Tuba’s largest corporations are state owned, or state backed, entities. The largest of these, Dublin World, recently restructured $14. 7 billion f its $26 billion debt, narrowly avoiding a major financial crisis. The total debt of Tuba’s government-related entities is estimated at $100 billion, which is not significant when compared to the sovereign debt globally (Dublin. Com 2010). In 2008, the financial crisis that so adversely affected economies around the world also impacted Dublin. The most affected were the real estate and tourism sectors, which both experienced substantial decreases in growth.

It was reported that real estate lost as much as 60% of its value before finally stabilizing. Fortunately for Dublin, it has been able to rely on the trench of its other sectors in order to avoid any devastating, long-term consequences from which it could not recover. The GAP of Dublin dropped 2. 4% in 2009, but rebounded and grew by 2. 8% in 201 0 and 3. 3% in 2011. The growth projection for 2012 has been estimated at 4. 5%, and trends indicate that this number will continue to increase (All Kali 2012). Economists have attributed the resiliency of Tuba’s economy to the prominence of its Free Trade Zones (FUTZ).

Corporations from around the world have been attracted to the incentives offered in these zones, which allow 1 00 % foreign investment, have no foreign exchange controls, boast no trade barriers or quotas, Offer competitive import duties (4% with many exemptions), and are, in many cases, 100 % tax free. There are currently twenty-two separate free zones with 19,000 registered companies that employ more than 225,000 people. Fats, like Dublin Media City and Dublin Internet City, consist of firms such as Microsoft, EMCEE Corporation, IBM, and Oracle, as well as media organizations like CNN, MBA, AR, AR Y, and Reuters (mayflowers. Mom 2012). Its GAP composition. The largest contributors to the current GAP are wholesale and retail (30%), tourism (17%), real estate & business services (13%), manufacturing (13%), transportation & communications (9%), construction (8%), and financial institutions/banking (7%) (All Kali, 2012). Tourism remains an important aspect of Tuba’s fledgling economy, of which it has been estimated that 80% of persons who choose to visit Dublin do so to shop in its modernized, world-class retail sectors (Dublin. Com 2010). One issue forcing Dublin to make some difficult financial decisions is its financial relationship with Iran. Until recently, a quarter of total volumes of exports ND re-exports went to Iran, but with increasing sanctions imposed by members of the U. N. During 201 1 and earlier this year, Dublin has begun decreasing that number as a result of mounting international pressure. By re- exporting goods to Iran, many Of the sanctions imposed upon it by the have been essentially circumvented through its trade relationship with Dublin. Recently, Dublin has become more aware of the diplomatic dilemmas it faces if large amounts of trade with Iran continue to occur.

The Dublin Financial Market (DIF) general index is the best performing Gulf market so far this ear, surging by 23% in the first quarter of 2012. Despite much of the investment and is considered to be relatively stable. Recently, there has been a growth in trade and investment relations between Dublin and some of the world’s fastest-growing economies, such as China and India. As long as the world economy avoids another major crisis in the next decade, Dublin will have the opportunity to secure its long-term economic prospects and further establish itself as the Middle Seats premiere financial hub (All Kali 2012).

Political Environment Dublin is one of seven emirates that compose the United Arab Emirates AAU). The other emirates are ABA Gabby (ABA Dhabi), ‘Jan, AAA Bujumbura, Ash Sharing (Share), Era’s al Shaman, Jim al Gay. Wayne (Quinn). Through treaties made in the 19th century, the Trivial States of the Persian Gulf coast granted the United Kingdom full control of their defense and foreign affairs. In the late 1 ass’s, the UK announced its intentions to withdraw from the Persian Gulf, with six of the original nine emirates forming a union on December 2, 1 971, as well as a seventh joining the following year .

Qatar and Bahrain, the other two emirates that once formed part of the Trivial States, doth claimed individual independence. The government of the AJAX is composed of a federation delegated with specific powers reserved for the federal government of the AJAX, and other powers reserved to member emirates (United Arab Emirates 2012). Currently there are no political parties within the AJAX because they are not permitted. Each emirate retains a substantial amount of autonomy and is ruled by someone that is selected based on his dynastic position, along with his perceived legitimacy within a system of tribal consensus (United Arab Emirates 2012).

Both the President and Vice President of the Federation, as determined by the AJAX system of government, are elected by the Supreme Council of Rulers. These two positions are allowed renewable five-year terms, and the elected officials are members of the Supreme Council of Rulers. The Supreme Council of Rulers is comprised of all seven dynastic emirate rulers (United Arab Emirates 201 1). H. H Sheikh Kalmia bin Gazed AAA Mahayana is ruler of ABA Dhabi and current President of the Federation. H.

H Sheikh Mohammed bin Rash AAA Maximum is the current Vice President and Prime Minister of the federation and the ruler of Dublin (Key Members of Government 201 1). The Rulers of both ABA Dhabi and Dublin have effective veto power, and both legislative and executive powers are held by the Supreme Council of Rulers (Government 2010). The Prime Minister appoints a Council of Ministers or Cabinet, and the Supreme Council then appoints 40 members of parliament, which is purely consultative in nature (United Arab Emirates 2012).

The current political climate in Dublin, and the rest of the AAU, is relatively calm in relation to other parts of the Middle East. The political climate is recently. In 2006, indirect elections were held in which the Rulers of the emirates selected members of an electoral college who then elected half of the members of the Federal National Council (FUN). The other members of the FUN were chosen by the individual rulers, as is customary to tradition (Government 2010). The major political strife going on within the AJAX is that of political activism calling for modernization.

In 2011, five political activists were convicted of insulting emirate rulers and calling for protests. The five activists called on the Supreme Council to introduce direct elections and to give parliament legislative powers. The day after being convicted of these rimes, the activists were pardoned by the President of the Federation (Orzo 201 1). The United Arab Emirates has recently begun a push to produce a greater amount of military equipment in an effort to reduce foreign dependence and help its own economy.

The AJAX plans to accomplish this goal by using local corporations, such as the ABA Dhabi Shipbuilding Program as its main contractor for this task. It is also producing ammunition, military vehicles, and unmanned aerial drones. The four largest foreign suppliers that Dublin and the AJAX rely upon are the united States, France, United Kingdom, and Russia. A large step for Dublin and the AJAX is the process of becoming less dependent on foreign suppliers, which is a big step for any country. The AJAX has a military budget of 15. 7 billion U. S. Lars, allowing for the investment of money back into its own economy by becoming less dependent on foreign countries. An example of the LEASE investing in companies to produce its own military equipment would be the Caracal pistol. Introduced in 2007, it was developed by IDES, a company in the AJAX. IDES is organized in four business segments to optimize four market strategies, better serve its customers, and provide a solid inundation for both organic and acquisitive growth. The caracal pistol was adopted by the Sea’s military and was the first small firearm produced in Dublin, and is now its official sidearm.

Much of Tuba’s military equipment is the same make and model of military equipment for its main foreign suppliers. In 1980, Dublin agreed to purchase 80 U. S. F-16 fighter jets. Other military equipment includes the Mirage sass, British Hawk aircrafts, French Helicopters, and the Hawk missile training program in which the U. S. Is helping to assist. In 1992-1993, Dublin acquired 436 tanks and 415 from its reign suppliers. Dublin quickly learned from the Iranians that having one supplier can be bad for diversification (US Department of State 2011 The L]AWE, like the rest of the world, is dependent on imports.

Gaining most of its military equipment from its foreign suppliers, the military equipment bought is usually older equipment that the supplier feels is obsolete compared to new equipment that features newer technology. The foreign suppliers are happy to sell its old equipment to a country that would consider the old equipment as an upgrade in comparison to what it currently assesses. Along with military expansion, the CAE has brought in military experts to train its men and teach them how to use the equipment properly.

It is first required to buy the equipment, and having foreign experts train military forces to use the gear can be very expensive. Subsequently, it is important for the AJAX to become less dependent and develop its own military equipment and technologies. By doing this, it assures that equipment produced is up to date, rather than another country’s old equipment. The CAE will remain technologically competitive by developing its own unique equipment, and it will be reinvesting in its own economy, rather than those of foreign economies.

An in-depth look at Use’s military expenditures communicates that a small amount of revenue is designated for the military. Over the years, less than five % of gross domestic product has been spent on military equipment. In 1999, $2. 1 billion, or 1. 8% of GAP was spent on military expenditures. In 2000 the AJAX saw a decrease in military spending, as less than 1% was used in military expenditures, $1. 6 billion Of GAP to be exact. In 2005, almost $4 billion was spent on military expenditures, showing an immense growth from he 2000 decrease (Defense Industry Analysis 2012).

If you are willing to travel to a completely different social and cultural environment than the one in which you currently live, Dublin will provide the ideal experience. Dublin, and many other emirates welcome tourists with open arms and treat everyone equally. In order to learn more about Dublin as a city, its history and culture, mingling with the locals is the most educational. Adapting to its unique social and cultural customs is not complicated, and practicing the famous saying, “Be a Roman when in Rome,” will help one connect with Dublin ATA deeper level.

Dublin has a very rich and diverse culture, and its deep roots of Islamic traditions form the main components of Sea’s lifestyle. The most spoken language in Dublin is Malaysia. Yet the natives, called Emirates, speak mostly Arabic, while the rest speak English. However, Arabic is considered the official language of the AJAX (Dublin City 2009). A very multicultural society, the city initial cultural imprint as a small, rare, fine, and valuable community has slowly evolved with the arrival Of other ethnic groups and nationals. The diversity of Dublin ranges from its music, religion, cuisine, nightlife, athletic sports, and population.

Emirates are famous for their warm hospitality to guests in their home, and that hospitality expands throughout the city. The heart of entertainment in Dublin caters to the party seekers who enjoy frequenting clubs and bars. Despite how quickly the country is evolving, the people of Dublin remain conscious of their culture. The AJAX members are proud of its past, and look to the future with open eyes. As a visitor, research shows that the way you dress, show respect, act, and handle business IS a key aspect of any culture, and by following this suggestion, will help you respect Tuba’s culture and keep unwanted attention away.

Many westerners are considered to be less conservative with their dress code, dressing in traditional clothes that make them most comfortable. Typically, men in Dublin wear a Kandahar or dispatch, a long white shirt along with the caught, white headdress, and the gal, a rope for the caught. The women of Dublin wear the baby, a long black cloak, over their clothes and a hajji or shells, a scarf wrapped around the face and head. If you are traveling around the city, dressing in a sophisticated manner is encouraged. Men should wear trousers and women a dress long enough to over the knees.

For tourists and visitors, wearing whatever they want is acceptable in the hotel, bar, or club, and swim wear is only adequate at the pool or beach (Dublin 2009). By respecting Dublin as a country and following its customs, residents and tourists should have no problems. Greetings in various countries vary, and in Dublin, when Arabs meet up, time is taken to talk about general things. Outside Of personal families, men and women do not greet each other. Typical male greetings might entail shaking hands, or a kiss on the cheek if they are good friends, and women only hug ND kiss close friends. Pony entering a local’s house, it is respectful to remove one’s shoes and bring a gift as an offering of thanks. When traveling to Dublin, it is important to be aware of these traditions as to not offend the citizens. As a business executive, dealing with clients or partners from Dublin is another area of social norms and cultural differences that should not be overlooked. Demonstrating one’s best efforts to show proper communication, dress code, or dining etiquette’s can be crucial when trying to close a business deal.

In Dublin, dining manners are the most important part f a business deal, as interviews and meetings are discussed over the table. Whether elegant or formal, dining etiquette’s should be followed strictly. Understanding a country’s social and cultural norms can be complex, but easy to accommodate once understood. The AJAX is innovative, continually seeking ways to expand opportunities for its citizens, while addressing regional and global challenges. As a member of the global community, Dublin has an obligation to uphold and to protect its economic, social, and cultural rights as a country to get the respect it deserves. The Future of Dublin

For many years, Dublin has been riding the growth of high rising oil prices, in addition to a steady increase in its property markets until recently. Economically, the I-JAKE has grown over 7 % from 2000 to 2007. A considerable percentage of the assets from this growth has been and is being reinvested in the country. These investments have been implemented in hopes to develop an economy that does not rely so heavily on energy resources, but be put towards programs such as education and training. However, the LEASE and Dublin still face important political, economic, social and environmental challenges (The Future for Dublin 2012).

The following chart shows possible scenarios presented by the World Economic Forum that may help stabilize the CAE. Each section includes topics for each scenario that are used to illustrate the key factors that will contribute to future decisions. Externally, there is always a threat of political instability within its multicultural society. Dublin may face unresolved national and intercultural relationships, which in turn may affect its economic and social structure. Globally, there are numerous economic risks that may threaten the Use’s expansions, regionally and internationally.

Internally, social and political asperity may result in unemployment and a break in the federal framework. Finally, availability of water resources, marine areas and an unpolluted atmosphere are environmental pressures that could be threatened. All Of these threats are areas that support the I-EASE’S escalating population and tourism industry, and if there is any sign of instability it will have a colossal effect. Hopefully, these possible scenarios of political scenarios may help encourage future strategic decisions to help shape the future of the AJAX.

Based on the stated economic goals of the country’s government, firms and investors can rely on favorable economic policies for foreign entities to continue. The leadership of the country realizes the value in modernization and is willing to concede tax revenue in exchange for achieving it faster. This attitude has resulted in friendly relations with basically every country in the reason, further reducing the risk of economic and political instability that would result if the country were involved in any conflicts. Any firm in search of a strategic hub that allows them to reach new markets should take a close look at Dublin.

With the increase in globalization, Dublin is ideally positioned to e a port that connects the commerce of the East and the West. We recommend that investments should initially be moderate in order to mitigate some of the risk, but should be increased in value with sustained returns. The potential for success is only a question of determination.

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