business, government & enviroment

BUSINESS, GOVERNMENT & ENVIRONMENT

SHADAB KHAN EX-MBA B-59

ESTABLISHING CONSTRUCTION FIRM IN DUBAI [ MANPOWER SUPPLY ]

HISTORYThe United Arab Emirates were bound by truce ( Trucial

States ) to Great Britain until WW-II.The seven Emirates formed a federation in 1971 and

have since worked closely together to build a stable economy.

BASIC INFO ABOUT DUBAI

PESTLE ANALYSISPolitical

Each Emirate has its own governmental institution. The ruling family of each Emirate is a member of the

Supreme Council, which is responsible for policy-making and electing the president and vice president for five-year terms.

Economic Wealth is based on oil and gas exports (Abu Dhabi) The government increased spending for infrastructure

and job creation, and there is a greater opportunity for private sector investment.

Lately there has been a surge in real estate and shares prices and consumer inflation is elevated.

Social Islam plays a large role in business Women are seen as equals and are protected by rights

and privileges laid down by Islam

Technological Telephones (land line and cell phone), radio

broadcast stations, television, internet.

Legal Court proceedings in the UAE are time-

consuming. There are no juries; only a single judge or a

three-judge panel (depending on the case) hears cases.

All evidence submitted to the court must be in Arabic.

Environmental Arid/tropical, sandy desert, and coastal areas.

SWOT ANALYSISStrengths

Free Trade Zones, relative ease of business start up

Weaknesses One needs a network of people in order to expand

opportunities Trust must be gained before any business

transaction occurs

Opportunities Large export market Trade missions

Threats Sandstorms and dust storms occur frequently.

WHY DUBAI ?Growing and Diverse Economy. Increase in trade revenue of 5.8 percent. Increase in exports revenue of 44.3 percent. Increase in manufacturing revenue of 11.7 percent.

Increase in transport and communications sector revenue of 2.7 percent.

Increase in hotels and restaurants revenue of 13.9 percent.

Investment laws, regulations and incentives are continuously improving to encourage further foreign investment.

This includes the introduction of foreign ownership of land and stocks.

Dubai became the first emirate within the UAE to open its property market to foreign ownership, followed by Abu Dhabi.

0% Taxes.Very Low Import Duty.Free Trade Agreements of UAE.Strong and Competitive Economy.Strategic Location Advantages of UAE.World-class Infrastructure of UAE.

Current GDP growth is at 4.1.

CONSTRUCTION SCENARIODubai’s construction and real state sectors are facing a combined manpower shortfall.

The shortfall takes a toll up to 5,00,000. Including skilled and semi-skilled workers.There is shortage of 43% of skilled workers and 57% for semi-skilled workers.

India is one of the leading country for supply of manpower in the world.

The root cause is DUBAI EXPO 2020.Due the construction of many high rises, for the expo, the demand exceeds the supply.

DUBAI EXPO 2020 Dubai is expecting Dh25 billion in total investment in

infrastructure-related projects in the run-up to Expo 2020 with nearly 277,000 new jobs being created.

The aim is to deliver their iconic projects (tourist attractions) ahead of Expo 2020, which will run from October 20, 2020 to April 10, 2021, and aims to draw more than 25 million visitors to the country.

As billions of dirham worth of construction contracts are awarded, state-owned entities have announced plans to build more new iconic projects this year.

UPCOMING PROJECTS FOR EXPO

DUBAI WATER CANAL:Construction Cost - Dh7.34 Billion

JEWEL OF THE CREEK:Construction Cost - Dh1.45 Billion

Al-HABTOOR CITY:Construction Cost - Dh11 Billion

DEIRRA ISLANDS:Construction Cost - Dh28 million

TAJ ARABIA, MUGHAL GARDENS:Construction Cost – Dh. 3.6 Billion

THE LAGOONS:Construction Cost – Dh. 80 Billion

DUBAI ADVENTURE STUDIOS:Construction Cost – Dh. 10 Billion.

MBR DISTRICT ONE:Construction Cost – Dh. 21 Billion

BLUEWATERS ISLAND:Construction Cost – Dh. 6 Billion.

MUHAMMED BIN RASHID CITY:Construction Cost – Dh. 220 Billion

SOME MORE MEGA PROJECTS: DUBAI SPORTS CITYDUBAI SNOWDOMEDUBAI WATERFRONTDUBAI METRODUBAI WORLD CENTRALHYDROPOLIS

PROCEDURE

LICENCE ISSUING AGENCIES