Group Exercise Four

UAE in the Global Business Environment

(MBA – ECON 605)

 

 

Page. 1

Group Exercise Four

Part A: PESTLE Analysis of the UAEUsingthePESTLEanalyticaltool,considerthefactorswhichwillinfluenceMultinationalNationalCompaniesindecidingwhetherornottoinvestintheUAE.ThesemayrepresentopportunitiesorthreatstomakinganinvestmentintheUAE.Listatleasttwofactorsundereachofthefollowingareas:

Factor CouldincludeintheUAE

Political 1.............................................

............................................

2.............................................

............................................

Economic 1.............................................

............................................

2.............................................

............................................

Social 1.............................................

............................................

2,............................................

............................................

 

UAE in the Global Business EnvironmentGroup Exercise Four

 

Page. 2

Technological 1.............................................

............................................

2.........................................................................................

Legal 1.............................................

............................................

2.........................................................................................

Environmental 1.............................................

............................................

2.........................................................................................

Part B: Amending the UAE’s Company Law – Group and Class Discussion

Asagroup,decidewhetherornotyouthinktheUAEshouldpermitforeignbusinessesandinvestorstoownmorethan49%ofabusinessoutsideoftheFTZs(consultexhibit1)attheendofthesessionbepreparedtodiscussyouropinionswiththerestoftheclass.

Yes|NoWhy?:.................................................

.................................................

1. InwhatwaysmightsomeexistingEmirati‐ownedcompaniesbethreatenedbygreater

exposuretoforeigncompetitioninthedomesticmarket?

.............................................................

.............................................................

2. Fromanefficiencyperspectivesuggesttwoadvantagesthatmayarisefromallowing

greaterforeignownershipofbusinessesintheUAE:

.............................................................

.............................................................

 

UAE in the Global Business EnvironmentGroup Exercise Four

 

Page. 3

3. TheUAEMinistryofEconomyhasaskedyoutosuggestthreesectors/industriesinwhich

foreignownershipshouldnotincreasefromthecurrent49%andthreeinwhichitshouldbe

permittedtoincreaseto100%.Foreachexplainwhytheyshouldbeprotectedornot.

Protect(keeplimitat49%foreignownership) Open(permit100%foreignownership)

1........................

.........................

.........................

.........................

.........................

1........................

.........................

.........................

........................

..........................

2........................

.........................

.........................

.........................

.........................

2........................

.........................

.........................

........................

..........................

3........................

.........................

.........................

.........................

.........................

3........................

.........................

.........................

........................

..........................

 

UAE in the Global Business EnvironmentGroup Exercise Four

 

Page. 4

Exhibit 1: