Country Analysisi Dubai

8/3/2019 Country Analysisi Dubai

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COUNTY ANALYSIS-DUBAI

Presented by:Nandlal Singh-80118110104


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Dubai -General

Dubais growth has happened in last fortyyears

Shaikh Rashid & Shaikh Mohammed hasbeen instrumental in the growth of Dubai

Dubai mainly depends on trading

Its main attraction for tourist is DubaiShopping festival which attracts lot of visitors

Dubai has seen tremendous growth in last21years which can be seen in next slides.

(Source 1,2)


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Dubai in 1990

(Source 1,2)


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Dubai in 2003

(Source 1,2)


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Dubai-Growth-2003-2007

(Source 1,2)25% of Crane requirement of the world was in Dubai in 2003


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Dubai in 2007

(Source 1,2)


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Aesthetics

Components of Culture

Sports &

Leisure Activities

Religion

PersonalCommunication

Education

Physical

Environments


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Aesthetics

The Burj Dubai

Its the tallest man madestructure in the world. The

architecture isextravagant.

Very high Living

standards. Especiallycompared to othercountries in themiddle east.

(Source 1,2)


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Dubai Skyline


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Al Maktoum International

Airport


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Palm Islands


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Religion

Freedom Of Religion

76 percent of the total

population is Muslim

9 percent is Christian

15 percent is "other."

(Source 1)


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Education

Very similar to Americaneducation system. Primaryschools, middle schools, andsecondary schools.Public schools paid for bygovernment, but there is alsoprivate schools.Higher education is dictated byMinistry of Higher Education.International Engineering college International business schooloffering MBAs

School Systems

(Source 1)


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Physical Environments

Geography

Climate

Dubai is situated inSouthwest Asia,bordering the Gulf ofOman and the PersianGulf, between Oman andSaudi Arabia.

The climate of the Dubaigenerally is hot and dry.

November to March is

very pleasant.

Land UseArable land: 0%Permanent crops: 0%Permanent pastures: 2%

Forests and woodland: 0%Other: 98%

Natural Resources

PetroleumNatural gasThe above resourcesare less in comparison

with other M.E.countries (Source 4)


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Personal Communication

Language

The Official Language of

the Dubai is Arabic

Schools stronglyemphasize English as a

second language Hindi, Malayalm,Urdu is

spoken in general.

(Source 1)


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Sports & Leisure Activities

Football (soccer)

Cricket

Tennis

Camel Racing

Formula 1 racing

Rugby

(Source 1)


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U.A.E.


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Government

Federation

Emirates

Seven EmiratesControl LocalGovernmentUnited in 1971FederationAbu Dhabi, Dubai,Fujairah, Ras al-Khaimah, Sharjah,Umm al-Quwain, AjmSeven EmiratesElective MonarchyRoyal Family

(Source 1)
http://upload.wikimedia.org/wikipedia/commons/7/73/UAE_en-map.pnghttp://upload.wikimedia.org/wikipedia/commons/7/73/UAE_en-map.png


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United Arab Emirates

EmirateArabicname

CapitalAreakm

Populationcalc. 2007

Abu Dhabi Abu Dhabi 67, 340 1 ,465, 431Ajman Ajman 2,59 260, 492Dubai Dubai 3, 885 2, 469,

330

Fujairah Fujairah 1, 166 118, 933Ras al-Khaimah

Ras al-Khaimah 1 ,683 191, 753

Sharjah Sharjah 2 ,590 656, 941Umm al-

Quwain Umm al-

Quwain 777 59, 098(Source 1)


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Prime Minster

Dubai

Mohammed Bin Rashid

Al Maktoum Prime Minster

Chairs the Council ofMinistries

Ministers are chosen bySupreme Council

(Source 1,2)
http://en.wikipedia.org/wiki/Image:Sheik_Mohammed_bin_Rashid_Al_Maktoum.jpg


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2006 Election

Federal National Counsel

Advise Supreme Counsel

Twenty Members selectedby the people

Twenty selected by Rulersof Emirates

Only 6, 595 people votedout of the 300,000 possible

Ruler of seven emirateschose them

(Source 6)


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Economy

United Arab

Emirates

U.S.A.

GDP $145.8 Billion $13.86 Trillion% Poverty 19.5% 12.0%

Inflation Rate 12.00% 2.70%

Labor Force 4,119,000 153,100,000UnemploymentRate

2% 5%

Budget $58.15 Billion $2.568 Trillion

(Source 7,8)


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Economy Cont.

Dubai U.S.A.

Industries petroleum, fishing,petrochemicals,

construction materials,

some boat building,

handicrafts, pearling

leading industrial power in the world,

highly diversified and technologically

advanced; petroleum, steel, motor

vehicles, aerospace,

telecommunications, chemicals,electronics, food processing,

consumer goods, lumber, mining

Industrial

Production

Growth

5.1% 0.5%

Agricultural

Products

dates, vegetables,

watermelons; poultry,

eggs, dairy products;

fish

wheat, corn, other grains, fruits,

vegetables, cotton; beef, pork,

poultry, dairy products; forest

products; fish

(Source 7,8)


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Currency

Front Side

Back Side

Exchange Rate:3.6737 AED per 1

US dollar

(Source 8)


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Dubai

The Burj Al Arab Hotel


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Dubai Cont.

Very Liberal Economy

Relatively Crime-free

Nothings Impossible Philosophy

Very Culturally Diverse

Attracts over 5 million tourists and investorsannually

(Source 9,10)


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Value of Indexesas per Hofstedes

dimensions

UAE World Average

PDI 80 57

UAI 68 65

LTO 48MAS 52 51

IDV 38 64

PDI- Powerdistance Unit

UAI-UncertaintyAvoidance Index

MAS-Masculinity (Source 1,2)


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Index Analysis

High PDI indicates inequality. Powers arewith few who have money & knowledge

High UAI indicates they are risk averse, theydo not take risk. They go by book.

Avg. masculinity indicates indicates that theyare neither assertive nor deceptive.

Low IDV indicates that they are collective.

(Source 1,2)


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Carrefour-Successful

French Retail out let -Formed in 1959 asSupermarket

First Hypermarket was opened in 1963

First international Hypermarket was opened inBelgium in 1977. Unbranded products wereintroduced as substitute to branded products

The success of unbranded product led company tocreate their own brand in 1985 to make them morecompetitive.

(Source 1,2)


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Carrefour-Successful

Carrefour adopted the policy of first moving to anyemerging market.

They opened first outlet in Dubai in 1995 as first

mover. Now Carrefour is the second largest outlet in the

world after Wal Mart.

It operates about 15000 stores of different sizes &categories including supermarket, hypermarket,convenience store, discount store.

(Source 1,2)


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Carrefour-Previous Failures-

US First, in the 1980s Carrefour failed in the

United States with only two hypermarkets. Its market entry in Philadelphia was rough,

with union antagonism protesting the335,000 square foot store and visiblepicket lines that bothered existingcustomers.

After this difficult experience, it opened astore in New Jersey in 1992 that was muchsmaller and that resembled a warehousewith products that looked like they

originated from a supermarket.

(Source 1,2)


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US But Carrefour conducted little

advertising to bring more customers

into its huge stores. Also, Wal-Martopened a store nearby and Carrefourfinally pulled out of the US.

Ultimately, Carrefour lost $80 million onits failed US expansion.

(Source 1,2)


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Japan Second, Carrefour failed in Japan because ofCarrefours inability to answer the needs of Japaneseconsumers.

Highlighting the importance of pre-entry research.

In addition. The company tried to enter alone rather than

working with a local partner in a joint venture.

Consequently Carrefour sold its stores to the AEON

group, a Japanese retailing chain, to operate itsstores under the Carrefour brand name.

(Source 1,2)


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Carrefour-Dubai

The company had read how over only a few decades,the Emirate of Dubai had rapidly moved from an oilproducing economy into an economic marvel withtowering skyscrapers, abundant wealth andbooming free markets in the middle of the desert.

Sheikh Rashid led Dubais economy through aperiod of explosive economic growth from the 1970sto the 1990s with a vision to diversify away from oil

production towards a modern city in the ArabianGulf.

The Sheikhs son, Sheikh Maktoum Bin Rashid AlMaktoum became ruler in 1990,

(Source 1,2)


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Carrefour-Dubai

Dubai offered an unusual composition ofExpatriates and local residents in an economywith one of the highest standards of living and

income in the world. The market was extremely business friendly with

many advantages like zero corporate taxes inconjunction with very few barriers to trade.

It had superior transportation networks, a well-defined legal system, positive retail conditions,strong economic growth, low political, andtransfer risks.

(Source 1,2)


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Carrefour-Dubai

Carrefour reviewed the laws and determined that a jointventure would be best to minimize the risk of failure whilehaving a qualified partner to aggressively seek growth andmanage operations.

It partnered in a joint venture with Majid Al Futtaim, a pan-regional conglomerate with retail experience in the MiddleEast.

The joint venture adapted to the market by changing theplace of its stores to the shopping mall, adapted its food tosocio-cultural norms, promoted mostly non-food items

because of higher profit margins, and was very careful indiscounting amidst double-digit inflation.

(Source 1,2)


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Failure in General

Indian & Chinese products in Constructionindustry is not accepted by Arabs

They are more influenced with productswhich has British/European/Americanstandards

Engineering items such as Air Handling units,

Aircnditioner, steel of Indian origin are notapproved in the list of approved makes.

(Source 1,2)


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Why Chinese Restaurant

failed in Dubai?

(Source 1,2)


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References

1. (2008). United Arab Emirates. Wikipedia, Retrieved September 26, 2008,http://en.wikipedia.org/wiki/Uae

2. (2008). Dubai. Wikipedia, Retrieved September 27, 2008, http://en.wikipedia.org/wiki/Dubai

3. (2008). Politics of the United Arab Emirates. Wikipedia, Retrieved September 27, 2008,http://en.wikipedia.org/wiki/Politics_of_the_United_Arab_Emirates

4. (2008). Geography of The United Arab Emirates. Wikipedia, Retrieved September 29,2008,http://en.wikipedia.org/wiki/Geography_of_the_United_Arab_Emirates

5. (2008). United Arab Emirates. Central Intelligence Agency: The World Factbook, Retrieved September28, 2008, https://www.cia.gov/library/publications/the-world-factbook/geos/ae.html

6. (2008). United Arab Emirates parliamentary election, 2006. Wikipedia, Retrieved September 30, 2008,http://en.wikipedia.org/wiki/United_Arab_Emirates_parliamentary_election,_2006

7. (2008). United Arab Emirates - Economy. CountryReports, Retrieved October 2, 2008,http://www.countryreports.org/economy/overview.aspx?Countryname=&countryId=250

8. (2008). United Arab Emirates - Economy. CountryReports, Retrieved October 2, 2008,http://www.countryreports.org/economy/overview.aspx?Countryname=United%20States%20of%20America&countryId=252

9. (2008).Government of Dubai. Investing In Dubai, Retrieved October 2, 2008,http://www.dubai.ae/en.portal?businesses,biz_invest,1,&_nfpb=true&_pageLabel=topic

10. (2008).Government of Dubai. Business, Retrieved October 2, 2008,

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Country Analysisi Dubai