Overview of UAE

DemographicsIn 2010, the UAE's population was estimated at 4,975,593, of which less than 20% were UAE nationals or Emiratis, while the majority of the populations were expatriates. The country's rate stands at 21.71, the worlds highest.

23% of the populations are non-Emirati Arabs and Iranians and the majority of the population, about 50%, is from India. Approximately 1.75 million Indian nationals reside in the UAE, making them the single largest expatriate community in the country. However, by 2020 Emiratis are projected to form 10% of the population. There is also a growing presence of Europeans especially in multi-cultural cities such as Dubai those from other parts of Asia (including the Philippines, Iran or Sri Lanka) comprised up to 1 million people. The rest of the populations were from other Arab states.

Thousands of Palestinians, who came as either political refugees or temporary employment, also live in the United Arab Emirates. There is also a sizable population of people from Egypt, Somalia and Sudan who migrated to the UAE before its formation. The UAE has also attracted a small number of expatriates from countries in Europe, North America, Asia, and Oceania. More than 100,000 British nationals live in the country. The population of the UAE has a skewed sex distribution consisting of more than twice as many males as females. The 15–65 age groups have a male/female sex ratio of 2.743. The UAE's gender imbalance is only surpassed by other Arab countries in the Persian Gulf region.

The most populated city is Dubai, with approximately 1.7 million people. Other major cities include Abu Dhabi, Al-Ain, Sharjah, and Fujairah. About 88% of the population of the United Arab Emirates is urban. The remaining inhabitants live in tiny towns scattered throughout the country or in the many desert oilfield camps in the nation.The average life expectancy is 75 years, higher than any other Arab country.

Age, birth rate and death rate

Dubai has a young population; the median age in Dubai in 2005 was 27 years.The crude birth rate was 13.6 percent and the crude death rate was about one percent.

LanguageArabic is the official language of Dubai, but English, Hindi, Malayalam, Persian, Tagalog, Bengali and Urdu are all widely spoken.English is generally used as the language of business as it is the second language common to most people.

Religions Islam is largest and the official state religion of the UAE, though the government follows a policy of tolerance toward other religions and rarely interferes in the activities of non-Muslims.However, it is illegal in the UAE to spread the ideas of any religion apart from Islam through any form of media as it is considered a form of proselytizing. There are approximately 31churches throughout the country and one Hindu temple in the region of Bur Dubai.

Based on the Ministry of Economy census in 2005, 76% of the total population was Muslim, 9% Christian, and 15% other (mainly Hindu). Census figures do not take into account the many "temporary" visitors and workers while also counting Baha'is and Druze as Muslim. Non-Islamic religions are mainly followed by foreigners or expatriates. As the majority of the population are non-citizens, of the citizens 85% are  Sunni Muslim while 15% are Shi'a Muslims. Omani immigrants are mostly Ibadi, while Sufi influences exist too.

Education The education system through secondary level is monitored by the Ministry of Education. It consists of primary schools, middle schools and high schools. The public schools are government-funded and the curriculum is created to match the United Arab Emirates development's goals and values. The medium of instruction in the public school is Arabic with emphasis on English as a second language. There are also

many private schools which are internationally accredited. Public schools in the country are free for citizens of the UAE, while the fees for private schools vary. There has been significant improvement in private education across the UAE. This is particularly important given the fact that a relatively high percentage of students in the Emirates are enrolled in private schools: in Dubai 50% of all students are in private schools, while the number for Abu Dhabi stands at around 40%. Many private international schools in the UAE are accredited by international bodies and there are currently 17 International Baccalaureate schools operating in the country, all of which have obtained approval from the International Baccalaureate Organization in Geneva to run their programs.Reforms to special education are under way across the country. In 2006, the Cabinet passed the UAE Disabilities Act, a comprehensive law that requires public and private schools to provide equal access to all children. The law was subsequently amended in 2009 to replace references to disability with the phrase "special needs". The higher education system is monitored by the Ministry of Higher Education. The ministry also is responsible for admitting students to its undergraduate institutions. A recent survey showed that the illiteracy rate is on the decline in the UAE, and is now in the region of 7%. This is mainly due to programmes that combat illiteracy amongst the adult population. Currently there are thousands of nationals pursuing formal learning at 86 adult education centers spread across the country. In fall 2009, the Masdar Institute of Science and Technology (MIST) opened its doors to its first class of graduate students. The Dubai School of Government (DSG), a research and teaching institution focusing on good governance and public policy in the Middle East, launched its first masters program also in 2009. A number of foreign universities, from the Paris Sorbonne to Michigan State University, have opened campuses in the UAE. In February 2008, a branch of the New York Film Academy opened in Abu Dhabi; it will launch its first bachelor’s degree program in 2010. In fall 2010 the opening of the Abu Dhabi campus of New York University will mark a new milestone. INSEAD, one of the world’s largest graduate business schools, has been operating a Middle East campus in Abu Dhabi since 2007, and now runs seven executive-education programs. The Government has launched many programs and initiatives to improve the quality of education at schools across the country. The UAE has shown a strong interest in improving education and research. Enterprises include the establishment of the CERT Research Centers and the Masdar Institute of Science and Technology and institute for enterprise development.

The illiteracy rate is mainly in the adult population, as a large majority of the population is foreign laborers.

Economy At the time of independence, the UAE was already regarded as a rich country with GDP per capita exceeding $2,000.The UAE has an open economy with one of the highest per capita incomes in the world and a sizable annual trade surplus. In 2009, its GDP, as measured by purchasing power parity, stood at US$400.4 billion. The GDP per capita is currently the third in the world and second in the Middle East,

after Qatar and Kuwait as measured by the CIA World Fact book, or the 17th in the world as measured by the International Monetary Fund. With almost $1 trillion in foreign invested assets, some argue the UAE to be the richest, with the highest average income in the world. Over half of this money is generated by the nation's capital; Abu Dhabi. With a population of just under 900,000 Abu Dhabi was labeled "The richest city in the world" by a CNN article. UAE's economy particularly that of Dubai, was badly hit by the financial crisis of 2007–2010. In 2009, the country's economy shrank by 4.00 percent, but UAE's overseas investments are expected to support its full economic recovery. However, concern remains about the property sector. Property prices in Dubai fell dramatically when Dubai World, the government construction company, sought to delay a debt payment. The ability to service debt remains a problem.

Economic indicators

Unemployment 4% May 2009 

GDP growth 3.20% 2010 

CPI inflation 1.9% April 2008 – April 2009 

National debt $142 billion June 18, 2009 

Petroleum and natural gas exports play an important role in the economy, especially in Abu Dhabi. More than 85% of the UAE's economy was based on the exports of natural resources in 2009. A massive construction boom, an expanding manufacturing base, and a thriving services sector are helping the UAE diversify its economy. Nationwide, there is currently $350 billion worth of active construction projects. Aluminum, steel, iron and other forms of metal exports along with textile produce much a significant amount of income and are expected to surpass the income brought in by petroleum and natural gas exports within the next 40 to 60 years. Government projects include the Burj Khalifa, which is the world's tallest building, Dubai World Central International Airport which, when completed, will be the most expensive airport ever built, and the three Palm Islands, the largest artificial islands in the world. Other projects include the Dubai Mall which is the world's largest shopping mall, and a man-made archipelago called The World which seeks to increase Dubai's rapidly growing tourism industry. Also in the entertainment sector is the construction of Dubai land, which is expected to be twice the size of Disney World, and of Dubai Sports City which will not only provide homes for local sports teams but may be part of future Olympic bids. However, this is concern that this construction boom has been built on debt and speculation, with little creation of true economic value. Major increases in imports occurred in manufactured goods, machinery, and transportation equipment, which together accounted for 80% of total imports. Another important foreign exchange earner, the Abu Dhabi Investment Authority – which controls the investments of Abu Dhabi, the wealthiest emirate – manages an estimated $360 billion in overseas investments & an estimated $900 billion in assets.More than 200 factories operate at the Jebel Ali complex in Dubai, which includes a deep-water port and a free trade zone for manufacturing and distribution in which all goods for re-export or transshipment enjoy a 100% duty exemption. A major power plant with associated water desalination units, an aluminum smelter, and a steel fabrication unit are prominent facilities in the complex. The complex is currently undergoing expansion, with sections of land set aside for different sectors of industry. A large international passenger and cargo airport, Dubai World Central International Airport, with associated logistics, manufacturing and hospitality industries, is also planned here. Except in the free trade zones, the UAE requires at least 51% local citizen ownership in all businesses operating in the country as part of its attempt to place Emiratis into leadership positions. However, this law is under review and the majority ownership clause will very likely be scrapped in order to bring the country into line with World Trade Organization regulations.

As a member of the Gulf Cooperation Council (GCC), the UAE participates in the wide range of GCC activities that focus on economic issues. These include regular consultations and development of common policies covering trade, investment, banking and finance, transportation, telecommunications, and other technical areas, including protection of intellectual property rights.The currency of the United Arab Emirates is the Emirati Dirham.

Life in the UAE Cuisine Emirati cuisine is a blend of many Middle Eastern and Asian cuisines.The modern diet of the United Arab Emirates (UAE) is cosmopolitan, featuring dishes from around the world. A lot of people confuse Levantine food as being Emirati, but shawarma, hummous, tabbouleh, and mixed grill are all recent additions and do not do justice to the "soul food" that makes up the Emirati menu. Due to harsh desert conditions, the traditional food of the United Arab Emirates uses a lot of meat, cereals and dairy. Vegetables are easy to grow and are strongly featured in the diet. Traditional dishes include Ma'louba, Margooga, Harees, Machbous, Arsee'ah, Fireed, Jisheid and Mishwy. Meats traditionally used were chicken or small fowl, such as Houbara bustards, and goats. As camels are highly prized for their milk and transporting ability, the eating of camel meat is normally reserved for special occasions. The dishes are usually like stews, as everything is often cooked in a single pot. Saffron, cardamom, turmeric and thyme are the core flavors used in Emirati cookery. The introduction of rice to the diet came when the traders moved to the region. Leaves from indigenous tress, such as the Ghaff were also used to stuff small birds, releasing their flavor during the cooking process. Breakfast in the UAE usually features breads like ragag, khameer and chebab, served with cheese, date syrup, or eggs. These were made over a curved hot plate, resembling a stone, which would have been used by the Bedouins. Balaleat is another dish, but its advent again with the traders, who introduced pasta. Sweet options include luqeymat, a deep fried ball of pancake batter that is rolled in sesame seed and then drizzled with date syrup. Other desserts include khabeesa, which is flour bread crumbs blended with sugar, cardamom and saffron or bethitha, a semolina blended with crushed dates, cardamom and clarified butter. At the close of the meal it is usual to be served with a red tea infused with mint, which aids the digestion. Other traditions to the meal include a welcome with dates and gahwah (Arabic coffee), which are offered on arrival and are kept available through the guests visit.

Culture The United Arab Emirates has a diverse and multicultural society. The country's cultural imprint as a small, ethnically homogenous pearling community was changed with the arrival of other ethnic groups and nationals — first by the Iranians in the early 1900s, and later by Indians and Pakistanis in the 1960s. Dubai has been criticized for perpetuating a class-based society, where migrant workers are in the lower classes. Despite the diversity of the population, only minor and infrequent episodes of ethnic tensions, primarily between expatriates, have been reported in the city. Major holidays in Dubai include Eid al Fitr, which marks the end of Ramadan, and National Day (2 December), which marks the formation of the United Arab Emirates. Emirati culture mainly revolves around the religion of Islam and traditional Arab, and Bedouin culture. Being a highly cosmopolitan society, the UAE has a diverse and vibrant culture. The influence of Islamic and Arab culture on its architecture, music, attire, cuisine and lifestyle are very prominent as well. Five times every day, Muslims are called to prayer from the minarets of mosques which are scattered around the country. The weekend begins on Friday due to Friday being the holiest day for Muslims. All Muslim countries have a Friday-Saturday or Thursday-Friday weekend. This unique socioeconomic development in the Persian Gulf has meant that the UAE is generally more liberal than its neighbors. While Islam is the main religion, Emiratis have been known for their tolerance, and Churches, Hindu temples, Sikh Gurdwara can be found alongside mosques, However there are no Jewish synagogue in the United Arab Emirates. The country is home to several communities that have faced persecution elsewhere. Cosmopolitan atmosphere is gradually growing. As

a result you will find there a variety of Asian-influenced schools, cultural centers and themed restaurants. Increasing number of European centers, schools, and restaurants are also can be seen in today's UAE.

Ports and Harbors Ajman Port , Fujairah Port, Das Island, Mina' Zayid and Mina Jabal Al Dhanna in Abu Dhabi, Khawr Fakkan, Mina Al Hemreya and , Mina' Khalid in Sharjah, Mina' Jabal 'Ali, Port Rashid in Dubai, Mina' Saqr in Ras Al Khaimah, Umm al-Qaiwain Port.

Merchant marine Total: 68 ships (1,000 GRT or over) totaling 1,107,442 GRT/1,795,235 metric tons deadweight (DWT). Ships by type: bulk 1, cargo 18, chemical tanker 3, container 8, liquefied gas 1, livestock carrier 1, passenger 1, petroleum tanker 27, roll-on/roll-off 7, specialized tanker 1 (1999 EST.)

PEST Analysis of Dubai Market

Political Environment Dubai is one the seven emirates that comprises of United Arab of Emirates. Although

UAE’s political environment is stable; the structure of government at both the national level and in each of the emirates is relatively immature and dynastic in nature. At the national level, the UAE operates as a loose confederation of seven emirates. Since Abu Dhabi is the largest oil producer the ruler of Abu Dhabi typically claims the presidency, while the ruler of Dubai typically occupies the vice-presidency.

Dubai shares legal, political, military and economic functions with the other emirates within a federal framework, although each emirate has jurisdiction over some functions such as civic law enforcement and provision and upkeep of local facilities (Government of Dubai Website, 2009).

Dubai's government operates within the framework of a constitutional monarchy, and has been ruled by the Al Maktoum family since 1833. The current ruler, Mohammed bin Rashid Al Maktoum, is also the Prime Minister of the United Arab Emirates and member of the Supreme Council of the Union (SCU).

The UAE has one of the most open trade policies within the GCC region with no protective duties and minimal import restrictions.

UAE has been a WTO member since 1996, giving it access to newer markets and helping removal of the barriers to exports.

Jebel Ali Free Zone is a free economic zone located in the Jebel Ali area of Dubai. It offers a set of products and services such as: Business centers, ready to use offices, Warehouses, factories, and infrastructure ready plots.

There is a well defined, sound legal framework for business and a clear set of ownership rules. Foreigners are permitted ownership rights of up to 49% for limited liability companies established within the Emirate of Dubai and up to 100% for professional companies, branches and representative offices of foreign companies and free zones enterprises (Government of Dubai Website, 2009).

The government has a long, consistent commitment to pro-business and liberal economic policies including the protection of intellectual property rights (Government of Dubai Website, 2009).

Economic Environment Dubai’s main revenues are from tourism, real estate and financial services. Revenues

from petroleum and natural gas contribute less than 6% of Dubai's economy. Real estate and construction, on the other hand, contributed 22.6% to the economy (Arabian Business, 2009).

As of February 2009 Dubai's foreign debt is estimated at apprx. USD 100 billion. There are no direct taxes on corporate profits or personal income except for oil

companies that pay a flat rate of 55% and branches of foreign banks that pay a flat rate of 20% on net profit generated within Dubai (Government of Dubai Website, 2009).

Customs duties are low at 4% with many exemptions, 100% repatriation of capital and profits is permitted.

No foreign exchange controls, No trade barriers or quotas, Competitive import duties (4% with many exemptions).

Social Environment

A large expatriate population (more than 80%). Crime Rate is almost Zero. Male comprises of more than 70% of Dubai population. More than one marriage is allowed. Traditional dress of men in Dubai is a dishdash or khandura - a full-length shirt-dress

that is worn with a white or red chequered headdress (gutra) and secured in place with black cord (agal). Women wear a black abaya - a long, loose black robe that opens from the front. (Go Dubai, 2009)

There is no dress code and tourists and residents are free to embrace any fashion as long as it does not offend anybody’s sensibilities.

Technological Environment Dubai has a network of seven industrial areas, one business park and three highly

successful, specialized free zones of international distinction, two world class seaports, a major international airport and cargo village, a modern highway network, state-of-the-art telecommunications and reliable power and utilities all of which deliver efficiency, flexibility, reliability, reasonable cost and size (Government of Dubai Website, 2009)

Dubai is served by over 120 shipping lines and linked via 85 airlines to over 130 global destinations .

Feasibility Of Balaji Wafer For UAE (Dubai) Market

Technology and system feasibility The existing plant is largest in capacity and with the state of the facility. In year 2003 balaji group

took pride to introduce this biggest fully automated potato processing machinery plant in India which can process 4500 kg. potato and make 1200kg of chips per hour.

The nakeen and other product line has separate depts. And it is been produced in a same quality conscious processing systems . chips and namkeens are made in bacteria free and stringent hygienic standard environment .

The company has two wafer and snacks manufacturing facilities in Rajkot. Apart from that, they have set up a production unit at Valsad with a capacity of 22 tonne wafers an hour. The company is planning to increase the production capacity of wafers and other snack products

The Valsad unit that produces potato chips at present would also manufacture snack products with capacity of almost 12 tonnes an hour, which would take the production capacity of the plant to 24 tonnes an hour.

Economic feasibility Firm to invest Rs 25 crore to roll out corn chips. Balaji Wafers plans capacity expansion of its production unit at Valsad in South Gujarat at the cost of

Rs 50 crore. the company is planning to invest Rs 25 crore for launch of new range of products including corn

chips. With an aim to introduce new food products in line with changing lifestyle, the company is going to

launch corn chips. They would invest Rs 5 crore to launch the product.

Legal feasibility

Cultural feasibility

Although regulations require food labels to be printed in Arabic, English-only labels are still accepted. Bilingual labels are permitted (e.g., Arabic/English), provided one of the languages is Arabic. Bilingual labels or Arabic stickers must not contradict or cover information on the original label. No picture or recipe requiring pork or alcohol is allowed. Labels must contain:

Product and brand names. Ingredients, in descending order.

Additives, using their "E" number.

Origin of all animal fats.

Net content in metric units.

Production and expiry dates.

Country of origin.

Manufacturer's name and address.

Special storage and preparation instructions, if needed.

Shipping cartons must include product and brand name, number of units, unit weight per product, manufacturer's name and address, country of origin and production/expiry dates matching the product.

Shelf-life standards for food products are strictly enforced, with snacks in canisters allowed nine months and snacks in bags given six months. Production/expiry dates must be engraved, embossed, printed or stamped in indelible ink on the original label or primary packaging.

Financial feasibility The value of surpluses i.e. accumulated profit. Reserves and surpluses of Balaji Wafers Pvt.

Ltd. is Rs. 1,96,87,349.

In Balaji Wafers Pvt. Ltd. has a fair capitalization and it has maintains all the financial matters in proper way so that in future there is no problem for doing activities in smoother way.

International Business Analysis

Opportunity Balaji Wafers has emerged more than a munch for Pepsi's Frito-Lay, with almost 70% of Gujarat's wafers

market in its pocket. A large chunk of non-resident Gujaratis (NRGs) from the US , UAE(Dubai) and UK have begun asking

their local distributors to import the Balaji range of products once they go back to their respective

countries. “We have received plenty of NRG interest from the US, UK and Dubai and will look towards that

direction after February 2008, when the first wafer manufacturing line will start operations,” said Virani. So far, Rs 30 crore has been invested in the Valsad plant and a further Rs 40 crore would be invested by next year.

Risks

Frito-Lay's potato chip products has 24% share in UAE snack market in 2004. Future growth in the savory snack sector is expected to continue at 15 percent for the next few years.

Heavy investment made in expansion of plant capacity, for meeting export need.

Benefits

The regional snack industry is set to increase by 21% by 2014. In Dubai alone, the snack market has grown by 10% over the past 12 months (dated 10/2010) and is now valued at AED 305 million.

Demographics suggest that there's room for more noshing; annual per capita consumption of savory snacks is about 2 kilograms a year.

Factors to be considered entering the UAE market

Current And Potential Market Size:

Population Size:

The Population in United Arab Emirates was reported at 4.91 millions persons in 2009, according to the International Monetary Fund (IMF). In 2015, United Arab Emirates's Population is expected to be 5.69 millions persons.

Rural & Urban Composition:

GDP:

2010 : $252.74.

2015 : $372.12 (IMF EST).

Per Capita Income:

2010 : $ 49995.31

2015 : $ 65403.13(IMF EST).

Purchasing Power:

$246.8 billion (2010 est.) 

$239.1 billion (2009 est.)

$246.9 billion (2008 est.)

Level of competition

Exiting brand of potato chips in UAE Fulla Flavoured Potato Chips

Fulla Potato Chips is also available in different tastes( Spicy -Salted - Ketcup).1Box = 4 inner big Bags * 16 Small bags * 18 G = 64 Small Bags .

Mr.Chips Crisps.

Mr.Chips Crisps is popular because of crispy taste and tongue twisting flavors. Available in 4

flavors of high demand.

1)- Original

2)- Hot & Spicy

3)- Salt & Vinegar

4)- Sour Cream & Onion

- Packaging 160g x 14 cans/box

- 1x20' container load = 1350 Box

- 1x40' container load = 3350 Box

- Mix flavors load order is acceptable

Frito-Lay snacks: Lay's, Doritos and Cheetos etc.

Market condition

While exporting balaji wafer in UAE one has to take into consideration that one will have to face heavy completion from US exporters .balaji wafers will have to lower its price to sustain itself in the UAE market. With a swiftly increasing market share, rising from 7% in 2002 to 24% by the end of 2005, National Trading and Developing Est. (NTDE), UAE distributors of Frito-Lay's potato chip products, can now confidently say that consumers in the emirates do find Lay's 'simply irresistible'.

Frito-Lay snacks: Lay's, Doritos and Cheetos, four years ago - in February 2002, has achieved an average annual growth of 50 per cent.

UAE’s Key AdvantagesI. Strategic Location:

Dubai is a time zone bridge between the Far East and Europe on the East-West axis and the CIS and Africa on the north-south axis. It is a gateway to a market that can be characterized as:• Large - well established trading links exist with the greater than 1.5 billion people in the neighboring region covering the Gulf, Middle East/Eastern Mediterranean, CIS, Central Asia, Africa and the Asian sub-continent;• Growing - Dubai’s total international trade has grown on average by over 11% per year since 1988 and regional economic growth and liberalization should boost demand further;• Prosperous - a buoyant local economy strategically located in the midst of one of the world’s richest regions and well endowed with ample supplies of cheap energy and primary aluminum; also adjacent to major regional suppliers of vital agro-export commodities;• Diversified - varied and significant import requirements generate opportunities for product suppliers and re-exporters;• Accessible - served by over 120 shipping lines and linked via 85 airlines to over 130 global destinations;• Open - no exchange controls, quotas or trade barriers.

II. Political And Economic Stability: Dubai is part of the UAE which is a low-crime and politically-stable country. Also, the UAE enjoys financial and monetary stability. Its well-developed, sophisticated banking system features extensive credit facilities and ample liquidity. The Emirate’s emerging capital markets are built on a basis of leading-edge technologies and sound regulatory systems. The government has a long, consistent commitment to pro-business, liberal economic policies including the protection of intellectual property rights. The UAE benefits from stable and harmonious industrial relations. Finally, there is a well defined, sound legal framework for business and a clear set of ownership rules. Foreigners are permitted ownership rights of up to 49% for limited liability companies established within the Emirate of Dubai and up to 100% for professional companies, branches and representative offices of foreign companies and free zones enterprises. All of these factors reflect positively in Dubai’s being assigned an investment grade rating for fixed income investment by Moody’s Investors Service.

III. Open And Free Economic System: Dubai’s economy has been kept open and free to attract investors and business. Government control and regulation of private sector activities has been kept to a minimum. There are no direct taxes on corporate profits or personal income (except for oil companies that pay a flat rate of 55% and branches of foreign banks that pay a flat rate of 20% on net profit generated within Dubai). Customs duties are low at 4% with many exemptions, 100% repatriation of capital and profits is permitted, there are no foreign exchange controls, trade quotas or barriers and a stable exchange rate exists between the US Dollar and the UAE Dirham (US$1.00=AED 3.678). Liberal visa policies permit easy importation of expatriate labour of various skill levels from almost all over the world.

IV. World Class Infrastructure and Service Sector: Dubai’s deliberate policy of investing heavily in transport, telecommunications, energy and industrial infrastructure has enabled it to have one of the best infrastructure facilities in the world; it also contributed significantly both to its ongoing prosperity and attractiveness to international business. The Emirate features a network of seven industrial areas, one business park and three highly successful, specialized free zones of international distinction, two world class seaports, a major international airport and cargo village, a modern highway network,

state-of-the-art telecommunications and reliable power and utilities all of which deliver efficiency, flexibility, reliability, reasonable cost and size. Complementing its world class infrastructure is a sophisticated service sector that features leading regional and international freight forwarders, shipping companies, insurers plus major international hotels, banks and financial service firms, lawyers, accounting firms, consultants, advertising agencies, top international exhibition and conference facilities, high quality office and residential accommodation, first class hospitals, schools, shopping centers and recreational facilities. Free Zones Websites: Dubai Airport Free Zone Jebel Ali Free Zone Dubai Media City Dubai Internet City

V. Competitive Cost Structure: International companies setting up in Dubai can obtain significant cost advantages not generally available internationally. The major factors are:• No foreign exchange controls,• No trade barriers or quotas,• Competitive import duties (4% with many exemptions),• Competitive labour costs – labour force is multi-lingual and skilled,• Competitive energy costs,• Competitive real estate costs,• Competitive financing costs and high levels of liquidity,• No corporate profit or personal income taxes (except for oil companies and branches of foreign banks)..

VI. High Quality of Life, Excellent Living Conditions: Dubai’s private sector has invested heavily in real estate such as hotels, residential and commercial properties, recreational and leisure facilities. In addition, a number of factors have contributed to the Emirate’s high quality of life and superior living conditions making it a model location for many to emulate. Those factors include excellent infrastructural facilities, low crime, clean environment, tolerance and cultural diversity, cosmopolitan life style, modern public administration, availability of a wide range of consumer goods and services, mild winters and clean, palm fringed beaches.

VII. Strong Local Commercial Tradition and Wide Choice of Potential Business Partners: The local business class has a long tradition of trading activity and wide exposure to international business practices and state-of-the-art technologies. Local entrepreneurs have already gained successful experience with international partnerships in franchising, licensing, joint ventures, etc, in various sectors of the economy.

VIII. Extensive Foreign Trade Network & Major Achievements in Export and Re-Export Performance: Dubai boasts an extensive foreign trade network extending to 179 states thus offering the investor an extensive choice of potential global marketing outlets for a diverse portfolio of goods and services. As a member of the UAE federation, Dubai is also part of the world’s third-largest export and re-export centre after Hong Kong and Singapore.

IX. Rapidly Developing Manufacturing Sector Producing a Wide Range of High Quality, Competitive Export Products:

Major gains have already been made in the profitable manufacture and export of aluminium ingots, fabricated metal products, textiles and ready-made garments, gold and jewellery, prepared foodstuffs, consumer electronics, refined petroleum, chemical and non-metallic mineral products. Supportive commercial, industrial, political and economic factors are currently in place that makes possible the extension of these gains to other manufacturing sub-sectors.

Mode Of Entry

Ways of exporting

The company can decide to export directly or indirectly to a foreign country.

Direct selling in export strategy

Direct selling involves sales representatives, distributors, or retailers who are located outside the exporter's home country. Direct exports are goods and services that are sold to an independent party outside of the exporter’s home country. Mainly the companies are pushed by core competencies and improving their performance of value chain.

Direct selling through distributors

It is considered to be the most popular option to companies, to develop their own international marketing capability. This is achieved by charging personnel from the company to give them greater control over their operations. Direct selling also give the company greater control over the marketing function and the opportunity to earn more profits.

In other cases where network of sales representative, the company can transfer them exclusive rights to sell in a particular geographic region.A distributor in a foreign country is a merchant who purchases the product from the manufacturer and sells them at profit. Distributors usually carry stock inventory and service the product, and in most cases distributes deals with retailers rather than end users.

Evaluating Distributors

The size and capabilities of its sales force. Its sales record. An analysis of its territory. Its current product mix. Its facilities and equipment. Its marketing polices. Its customer profit. Its promotional strategy.

Direct selling through foreign retailers and end users

Exporters can also sell directly to foreign retailers. Usually, products are limited to consumer lines; it can also sell to direct end users. A good way to generate such sales is by printing catalogs or attending trade shows.

Indirect selling

Indirect exports, is simply selling goods to or through an independent domestic intermediary in their own home county. Then intermediaries export the products to customers foreign markets.

Making the export decision

Once a company determines it has exportable products, it must still consider other factors, such as the following:

What does the company want to gain from exporting? Is exporting consistent with other company goals?

What demands will exporting place on the company's key resources - management and personnel, production capacity, and finance - and how will these demands be met?

Are the expected benefits worth the costs, or would company resources be better used for developing new domestic business?

Mode of entry- Direct selling in export strategy

National Trading and Developing Establishment (NTDE)

National Trading and Developing Establishment (NTDE) is one of the Gulf’s leading distribution and logistics provider for international consumer brands in the region.

Through four decades of pioneering leadership, prudent financial management and forging strategic alliances, NTDE has become one of the foremost trading and distribution houses in the UAE.

At NTDE we remain customer focused. Our experience of changing trends in the market enables our research and marketing teams to fulfill, and often, exceed customer demands. We never compromise on quality.

As a business we rely upon the strengths of all our people, from customer facing salespeople to warehousing and administrative support. We are a diverse and multicultural organization that respects the rights of all our people regardless of race or religion.

Our investment in training and personal development is ongoing. We encourage our people to attend professional seminars, workshops and conferences to stay abreast of the latest changes in business. NTDE supports them and their families in further education and in charitable causes. The staff retention record of NTDE is unparalleled in the industry

FutureIn changing markets in the global economy NTDE remains consistent in its core values of customer service, adherence to quality and sustainable growth.

Our path is clear: Engaging our customers with products and services they want whilst providing our principals with clear channels of distribution. We operate with complete transparency and accountability, which gives us the edge over competitors and instils confidence in our partners.

Our presence in the region has witnessed the tremendous economic and social development and the accompanying demographic changes and challenges of a demanding market. They expect innovation, timely service and added value through enhanced product ranges and new solutions.

As a consequence NTDE continues to explore new windows of opportunity in supply, logistics and in retail.

LogisticsNTDE’s logistics division is unrivalled in its fast and efficient distribution network.

Its main 325,000 square foot distribution centre serves the United Arab Emirates and the Sultanate of Oman. Satellite warehouses are situated in Abu Dhabi, Al Ain, Sharjah, Fujairah, Umm-al-Quwain and Ras Al Khaimah. Muscat, Salalah and a few more depots complete the network in the Sultanate of Oman. New racking systems have increased the warehousing capacity by 150 per cent; and a dedicated 5200 square meter cold store facility services the burgeoning chilled, frozen and hotel catering sectors. Freshness is paramount in such harsh climatic conditions and NTDE assures customers premium deliveries.

NTDE handles more than 22,000 deliveries to 7,000 customers each month, so accuracy and precision are key. Its 550 vehicles guarantee on-time delivery of more than 6,000 products, monitored through Hand Held

Terminals and efficient stock control and rotation. The installation of two new packaging machines supports marketing and promotional tie-ins.

Inventory management includes a weekly stock-check and yearly audits coordinated with the finance team in a seamless and timely manner.

Plans for the future include a company-wide GPS system.

RetailComplementing our suppliers and logistics operations, retail is earmarked to play an even greater role within the Group. We have seen the remarkable success of Häagen-Dazs outlets, Smokers and News Centres and Champion Cleaners serving distinct yet loyal customers.

Investing in retail isn’t easy, but our market knowledge and customer engagement has brought dividends in the areas we serve. NTDE now has a reputation for quality and service in retail and will continue to identify and seek out new opportunities in this dynamic market.

Cost-benefit-risk analysis