A GLOBAL / COUNTRY STUDY AND REPORT ON “United Arab Emirates” Submitted to PARUL INSTITUTE OF MANAGEMENT & RESEARCH-2nd shift (Formerly Dr. J. K. Patel Institute of Management) Institute Code: 792 IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF THE AWARD FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION In Gujarat Technological University UNDER THE GUIDANCE OF Faculty Guide Ms. KRISHNA GOR Assistant Professor Submitted by Batch: 2011-13, MBA SEMESTER IV (Parul Institute of Management & Research-2nd shift) MBA PROGRAMME Affiliated to Gujarat Technological University Ahmedabad June 2013 Parul Institute of Management and Research - 792 Page 1 PREFACE To become a manager in future passing the theoretical subjects is not enough. The subjects are the bases for our carrier from which we can strengthen our knowledge to apply it in real world. The GCSR project provides the platform of opportunity to know the current market situation, various factors affecting the industrial and economic performance and the behavior of environment. It gives the opportunity where we can apply the theory knowledge in real world and so that we can be a successful manager in future. This changed the market structure, character and focus of marketing strategies. MBA is a course where unlike many other courses practical studies are accompanied together with theoretical studies, case analysis and preparation of various reports, giving presentations on various topics are a vital part of the practical studies in this course. The preparation of the GCSR is one such part of the practical studies here. For this purpose we are required to select one particular topic related to a country or trade and prepare a report through study research. As the student of management it is learning experience to analyze a trade. It is the most essential for us to expose our skill as a future responsible management post. So, we have decided to go for detail study of country “United Arab Emirates”. Parul Institute of Management and Research - 792 Page 2 ACKNOWLEDGMENT No task is a single man’s effort cooperation and coordination of various people at various places goes into successful implementation. It is great pleasure to have the opportunity to extend our heart-felt thanks to everybody who helped us through the successful completion of this project. We wish to take this opportunity to express our deep gratitude to the persons that have helped, encouraged, inspired and enlightened us with their constructive ideas and overall support towards the completion of this project successfully. We are highly indebted to PROF. KRISHNA GOR for her guidance and constant supervision as well as for providing necessary information regarding the project & also for her support in completing the project. We would like to express gratitude towards all members of Parul Institute of Management and Research for their kind co-operation and encouragement which help us in completion of our project. We also would like to express our special gratitude and thanks to DIRECTOR DR. P G K MURTHY for giving us such attention and time. Our thanks and an appreciation also goes to our group members and classmates in developing the project and people who have willingly helped us out with their abilities. Parul Institute of Management and Research - 792 Page 3 TABLE OF CONTENTS PREFACE ACKNOWLEDGEMENT Sr. No. Particulars Page numbers Part -1 ECONOMIC OVERVIEW OF THE SELECTED COUNTRY (United Arab Emirates) 1 Demographic Profile of the Country 5-21 2 Economic Overview of the Country 3 Overview of Industries Trade and Commerce 4 Overview Different economic sectors of selected country 5 Overviews of Business and Trade at International Level 6 INDIA-UAE Trade Relations 7 SWOT Analysis 8 PESTEL Analysis Part -2 MICRO ANALYSIS OF INDUSTRY/SECTOR 9 Oil & Gas Industry 23-27 10 Diamond Industry 28-40 11 Textile Industry 41-49 12 Food Industry 50-59 13 Construction Industry 60-70 14 Retail Industry 71-87 15 Petro Chemical Industry 88-98 16 Tourism Industry 99-126 17 Conclusions & Summary 127-129 BIBLIOGRAPHY Parul Institute of Management and Research - 792 Page 4 PART – I ECONOMIC OVERVIEW OF THE SELECTED COUNTRY (United Arab Emirates) Parul Institute of Management and Research - 792 Page 5 Full Country Name: United Arab Emirates Area: 83,600 sq km; 77,700 sq km excluding islands, of which 97% is desert Population: 8.26 million (National Bureau of Statistics, March 2011) Capital City: Abu Dhabi Largest city: Dubai People: Of the total 8.26 million residents, less than 20% are Emirati, more than one-third are South Asian, and a significant number are from Europe and North Africa. Languages: Arabic. English is widely understood and Hindi and Urdu are common among immigrants. Religion(s): Islam is the official religion, and broadly practiced. The majority of Emirati citizens are Sunni Muslim with a Shi'a minority. Many foreigners are Muslim. Hindus and Christians make up a portion of the U.A.E.'s foreign population Life expectancy: 76 years(men), 78 years(women) Currency: 1 UAE Dirham = 100 fils Main exports: oil and gas Internet domain: .ae International dialling code: +971 Major political parties: Political parties are not permitted Form of State: Federation of seven emirates Head of State: Sheikh Khalifa Bin Zayed al-Nahyan. The Supreme Council, comprising the seven emirs, elects the president from among its members. President: Sheikh Khalifa bin Zayed Prime Minister/Premier: Sheikh Mohammed bin Rashid Al Maktoum Location of the country in map : in the southeast of the Arabian Peninsula. A federation of 7 emirates bordering Oman and Saudi Arabia, An emirate is a political territory ruled by a dynastic Muslim Monarch Parul Institute of Management and Research - 792 Page 6 Distance from India to uae : 6,08.2 km – N-40 (3 days 8 hours) Government: The Supreme Council appoints the Council of Ministers (cabinet), led by the Prime Minister. Foreign Minister: Sheikh Abdullah Bin Zayed Al Nahyan Parul Institute of Management and Research - 792 Page 7 1. Demographic Profile of UAE 1. Population: 5,314,317 (July 2012 est.) (Note: estimate is based on the results of the 2005 census that included a significantly higher estimation of net immigration of non-citizens than previous estimates) 2. Age structure : 0-14 years: 20.4% (male 537,925/female 513,572) 15-64 years: 78.7% (male 2,968,958/female 1,080,717) 65 years and over: 0.9% (male 30,446/female 17,046) (Note: 73.9% of the population in the 15-64 age group is non-national (2011 est.)) 3. Median age Total: 30.2 years Male: 32.1 years Female: 24.9 years (2011 est.) 4. Population growth rate: 3.055% (2011 est.) 5. Birth rate: 15.76 births/1,000 population (2011 est.) 6. Death rate: 2.04 deaths/1,000 population (July 2011 est.) 7. Net migration rate: 16.82 migrant(s)/1,000 population (2011 est.) 8. Urbanization Urban population: 84% of total population (2010) Rate of urbanization: 2.3% annual rate of change (2010-15 est.) Major cities – population: ABU DHABI (capital) 666,000 (2009) 9. Sex ratio Parul Institute of Management and Research - 792 Page 8 At birth: 1.05 male(s)/female Under 15 years: 1.05 male(s)/female 15-64 years: 2.75 male(s)/female 65 years and over: 1.77 male(s)/female Total population: 2.19 male(s)/female (2011 est.) 10. Infant mortality rate Total: 11.59 deaths/1,000 live births Male: 13.54 deaths/1,000 live births Female: 9.55 deaths/1,000 live births (2011 est.) 11. Life expectancy at birth Total population: 76.71 years Male: 74.12 years Female: 79.42 years (2011 est.) 12. Total fertility rate: 2.38 children born/woman (2011 est.) HIV/AIDS - adult prevalence rate: 0.2% (2001 est.) HIV/AIDS - people living with HIV/AIDS: NA HIV/AIDS – deaths: NA 13. Nationality Noun: Emirati(s) Adjective: Emirati 14. Ethnic groups: Emirati 19%, other Arab and Iranian 23%, South Asian 50%, other expatriates (includes Westerners and East Asians) 8% (1982) (Note: less than 20% are UAE citizens (1982)) 15. Religions: Muslim (Islam - official) 96% (Shia 16%), other (includes Christian, Hindu) 4% Parul Institute of Management and Research - 792 Page 9 16. Languages: Arabic (official), Persian, English, Hindi, Urdu 17. Literacy Definition: age 15 and over can read and write Total population: 77.9% Male: 76.1% Female: 81.7% (2003 est.) 18. School life expectancy (primary to tertiary education) Total: 13 years Male: 13 years Female: 14 years (2009) 19. Education expenditures: 1.2% of GDP (2009) 20. Maternal mortality rate: 10 deaths/100,000 live births (2008) 21. Health expenditures: 2.8% of GDP (2009) 22. Physicians density: 1.93 physicians/1,000 population (2007) 23. Hospital bed density: 1.9 beds/1,000 population (2008) 24. Obesity - adult prevalence rate: 33.7% (2000) 2. Economic Overview of UAE Basic Economic Facts (Economist Intelligence Unit, July 2011) GDP: USD360 billion Annual Growth: 2.1% Inflation: 0.9% Major Industries: Oil, gas, Petrochemicals, manufacturing & construction Parul Institute of Management and Research - 792 Page 10 Major Trading Partners: Exports: Japan, India, Iran, South Korea, Thailand. Imports: India, China, US, Germany & Japan. Aid & Development: None Exchange Rate: AED 3.67 = USD 1.00 (February 2012) The UAE has one of the highest GDP's per head in the world. Although it is still profoundly dependent on revenues from hydrocarbons, the UAE is comparatively well insulated from periods of low oil prices due to successful moves towards economic diversification, large foreign exchange reserves and investments in foreign countries . The global economic crisis is being felt in the UAE with a number of projects being either shelved or cancelled.