A

Global Study Report

On

“Effective analysis of trade opportunity in UAE-Indian perspective”

Submitted to:

Gujarat Technological University

IN PARTIAL FULFILLMENT OF THE

REQUIREMENT OF AWARD FOR THE DEGREE OF

MASTER OF BUSINESS ADMINISTRATION

Under the guidance of:

Dr. Viral Bhatt

Principal

Sal Institute Of Management, Ahmedabad.

Submitted By:

Students Of Marketing and HR

SEM:4

MBA: 2012-2013

Sal Institute Of Management

This is to certify that this comprehensive project report title,

“Effective analysis of trade opportunity in UAE-Indian perspective”

is the bonafide work of Students of Marketing and Hr, SEM: IV, MBA: 2012-

2013, Sal Institute Of Management who carried out the research under my

supervision. I also certify further, that to the best of my knowledge the work

reported herein does not form part of any other project report or dissertation on the

basis of which a degree or award was conferred on an earlier occasion on this or

any other candidate.

Project Guide:

Dr. Viral Bhatt

Principal,

Sal Institute Of Management, Ahmedabad.

Sign: _________________

Certificate

Declaration

We, students of Marketing HR, SEM: IV, MBA: 2012-2013, Sal Institute Of

Management, hereby declare that the Global Study Project entitled “ Effective

analysis of trade opportunity in UAE –Indian perspective ” is a result of our

own work and our indebtedness to other work publications, references, if any, have

been duly acknowledged.

Date: 20/4/2013

Place: Ahmedabad

Preface

“Experience is the best teacher” This saying has played a guiding role in including

GSR as a part of the curriculum of the MBA programme of the Gujarat

Technological University. This study report allows students to do practical work

and to study real global business environment which develops a feeling about the

difficulties and challenges in the business world.

In this direction we have tried our best to present a project report. This project

report will help the readers to know in depth about “ Effective analysis of trade

opportunity in UAE-Indian perspective ”

The preparation of this project is based on facts and findings noted and information

collected from various secondary sources such as internet, Books, News Papers,

Magazines and written and published documents.

In spite of our best efforts, there may be omission and commissions which may

please be excused….!

Acknowledgements

We are extremely thankful to Prof. Jigar Nagvadia and Dr. Ritika Jain for

his valuable guidance and helpline that was provided to us throughout completion

of this project. He was always there to lend a helping hand & directed us towards

proper attitude to develop the project work. Without his help and right guidance

the completion of project would have been very difficult.

The level of knowledge he posses has covered entire aspects of the management

expertise in different fields, particularly in market research and marketing

management. We are also really indebted to those all people who heartily helped

us throughout completion of this project.

We are also thankful to our institute Sal Institute Of Management and GTU for

offering us such a great subject that bind all the knowledge we have gained

throughout our study and last but not the least we would like to thanks all our

friends who have provided their thoughts and help directly and indirectly about our

project during development and for the further enhancement.

With Thanks…….

Students of Marketing & HR

SEM: IV

MBA: 2012-2013

Sal Institute Of Management.

Table Of Contents

Sr no. Particulars Page no.

1. Resent speech of P. Chidambram about fiscal deficit 1

2. Growth story of India 5

3. India is exporting country 15

4. Introduction to UAE 24

5. Food grain sector 48

6. Textile sector 62

7. Tourism sector 77

8. Gems & Jewellery 108

9. Engineering goods 124

10. Leather sector 151

Conclusion 169

Bibliography 171

EXECUTIVE SUMMARY

As the speech given by our Finance Minister P.Chidambram that there is having current deficit in

our country, so that to make the balance of payment India has to try to export the goods to

various country to make the balance of payment. So India is planning to collaborate with other

developed countries and India is the major exporter to the Asia and Specifically to the UAE. The

Gulf region has historical, political, economic, strategic and cultural significance for India. India

has traditional and friendly relation with all GCC member states. With a bilateral trade estimated

at USD 145 billion during 2011-12, GCC is now our largest trading partner in the world.

As we had explored the some sector which are seeking the opportunity to enhance the GDP

growth rate as well as to reduce the current deficit of India. As some areas which had covered are

Food Industry, Tourism Industry, Engineering Industry, Textile Industry, Gems and Jewellery

and Leather Industry.

As India is land of Food and Agriculture, so there is having huge opportunities for India to

export the goods to UAE. As the UAE does have only 1% fertile land, so they do not have any

opportunity to grow vegetables and other food products to the UAE. In UAE 80% of the citizens

are from other countries so they do not like locally processed goods. As India should export the

Pour Non-Basmati rice as they ban the Non- basmati rice because it spoiled with in 10 days.

India should export the dairy products in the large quantity as the demand of the product is

increasing. As the demand of the tea is increasing in the UAE and as India sis the 2nd largest

producer of the tea, so India is having the huge opportunity to export the various type of tea to

the UAE in bulk quantity.

The UAE economy is proving to be extremely resilient in a difficult global economic climate and

opportunities to do business in the country are many. The UAE’s currency, the dirham, which is

pegged to the US dollar, is secure and freely convertible; there are no restrictions on profit

transfer or capital repatriation; import duties are low (less than 5 per cent for virtually all goods)

and, in the case of items imported for use in the free zones, non-existent; labour costs are

competitive; corporate tax and personal taxes are nil and numerous double taxation agreements

and bilateral investment treaties are in place. In addition, the financial risk is minimal. These

factors, combined with a strategic, accessible location for major regional markets, an excellent

reliable infrastructure and an extremely pleasant, stable and safe working environment are key

elements in attracting foreign investment. An expected growth rate is projected till 2014. Real

GDP is expected to grow at a healthy rate and growth pick up pace in 2012 and beyond. By the

year 2016, the tourism sector is expected to earn US$ -US$ billion. Tourism industry has

contributed significantly to the GDP. By the year 2016, the tourism sector is expected to earn

US$~ billion.

As India is the major exporter of engineering goods in the UAE. As the growth of the UAE is

increasing simultaneously the use of the engineering goods is increasing. So India had to export

as possible as to export the engineering goods to the UAE. Export of engineering items to GCC

region during the period 2010-2011 stood at US$ 8194.53 million compared with US$ 4014.08

million during the same period of the previous year, registering an overall growth of 104.14 per

cent.

As India is one of the famous lands for the textile products due to easy availability of the raw

material and other related products to manufacture the textile products. As the atmosphere of the

UAE is very hot and surrounding area are very arid in nature so due to that consumption of the

cotton products are demanding in nature. As India is considered cotton product hubs so there is

great opportunities’ for the country to earn huge amount of foreign exchange from the UAE

country.

As UAE is considered one of the fashionable countries and enjoy all festivals & occasions at the

most so there are great chances for the consumption of finished products of Gems and Jewel.

India is having rich source of the finished gems & jewels products, so it seek a great

opportunities in the country and earn foreign currency which will enhance the financial position

of India.

1

2

INTRODUCTION

Latest Conference of Chidambaram on Reduce fiscal deficit and current account deficit on

16th April, 2013.

“Reduce Fiscal Deficit.”

“Finance Minister P Chidambaram has made it clear that any bilateral investment

protection agreement has to be subject to jurisdiction of domestic.”

• Overturning fears of foreign investors about fiscal deficit, Finance Minister P

Chidambaram has said that India was committed to reducing its fiscal deficit and would

achieve the target of 3% in 2016-17. Chidambaram said the final reading of last

year's fiscal deficit would come to below 5.3%

• He said: "India will reduce the fiscal deficit until we reach the target of 3% in 2016-17 or

perhaps a little earlier."

• Chidambaram said the final reading of last year's fiscal deficit would come to below

5.3%."When the actual numbers are out in the next couple of months, I'm confident it

will probably be 5.1%," he said.

• He pointed to the stimulus measures taken by the government, after the 2008 global

economic crisis had driven fiscal deficit and inflation "out of control".

• "It appears that while the first stimulus package was necessary, the second stimulus

package was doubtful and the third stimulus package was perhaps avoidable,"

• Chidambaram said at a breakfast meeting organized by the Canada-India Business

Council here yesterday.

3

• The Minister said that India was on the path of fiscal consolidation."I said in the year

2012-13 I will bring fiscal deficit down to below 5.3%, and going forward, I will reduce

the fiscal deficit every year by 0.6% until we have achieved the target of 3% in 2016-17.

I said these are red lines. I will not breach these red lines," the Minister added.

Reduce Current Account Deficit.

• Mr Chidambaram said that “The purpose of a Budget - and the job of a Finance Minister

- is to create the economic space and find the resources to achieve the socio economic

objectives.” At present, the economic space is constrained because of a high fiscal

deficit; reliance on foreign inflows to finance the current account deficit; lower savings

and lower investment; a tight monetary policy to contain inflation; and strong external

headwinds. During the course of my speech, I shall spell out measures that will address

each of these issues.

• In September, 2012, Government accepted the main recommendations of the Dr. Vijay

Kelkar Committee. A new fiscal consolidation path was announced. Red lines were

drawn for the fiscal deficit at 5.3 percent of GDP this year and 4.8 percent of GDP in

2013-14. I know there is a lot of scepticism. In a little while, I shall tell you how we have

fared.

• My greater worry is the current account deficit (CAD). The CAD continues to be high

mainly because of our excessive dependence on oil imports, the high volume of coal

imports, our passion for gold, and the slowdown in exports. This year, and perhaps next

year too, we have to find over USD 75 billion to finance the CAD. There are only three

ways before us: FDI, FII or External Commercial Borrowing (ECB). That is why I have

been at pains to state over and over again that India, at the present juncture, does not

have the choice between welcoming and spurning foreign investment. If I may be frank,

4

foreign investment is an imperative. What we can do is to encourage foreign investment

that is consistent with our economic objectives.

• Finally, the development must be sustainable - economically and ecologically. The

development model must have democratic legitimacy and approval.

• Looming large over our efforts to stimulate growth is inflation. Some inflation is

imported. Supply demand mismatch, for example in oilseeds and pulses, also pushes up

inflation. Aggregate demand is another cause of inflation. The battle against inflation

must be fought on all fronts. Our efforts in the past few months have brought down

headline WPI inflation to about 7.0 percent and core inflation to about 4.2 percent. It is

food inflation that is worrying, and we shall take all possible steps to augment the supply

side to meet the growing demand for food items.

• Government expenditure boosts aggregate demand and it has both good and bad

consequences. Wisdom lies in finding the correct level of government expenditure. In the

budget for 2012-13, the estimate of Plan Expenditure was too ambitious and the estimate

of non-Plan Expenditure was too conservative. Faced with a huge fiscal deficit, I had no

choice but to rationalise expenditure. We took a dose of bitter medicine. It seems to be

working. We also took some policy decisions that had been deferred for too long,

corrected some prices, and undertook a review of certain tax policies. We have retrieved

some economic space. As I outline our plans and priorities, Hon'ble Members will find

that I have used that economic space to advantage - and to advance the UPA

Government's socio-economic objectives.

5

6

GROWTH STORY OF INDIA

NEW DELHI: THERE SEEMS TO BE LITTLE RESPITE FROM THE ECONOMIC

DOWNTURN WITH THE OECD, THE PARIS-BASED AGENCY, SAYING THAT

GROWTH IS SLOWING DOWN IN INDIA. "IN CHINA, INDIA AND TO A LESSER

DEGREE IN BRAZIL, THE COMPOSITE LEADING INDICATORS (CLIS) POINT TO

GROWTH BELOW TREND," THE THINK-TANK SAID IN A STATEMENT.

• Compared to the long-term trend of economic activity, which is put at 100, the Indian

economy had a score of 97.2, the lowest level seen in the last five months. Compared to

January 2012, the decline is of the order of 2.25%, the second worst among a group of 11

economies that includes Brics and the G-7. Only Russia put up a worse performance,

with a fall of 2.8%. But OECD said that the CLI indicated a pick-up in growth, indicating

that the worst was over.

• In India's case, the worst was not yet over with the CLI graph continuing to fall since

2011 after plateauing in 2010. In fact, OECD did not spot a turning point in the curve

despite the finance ministry making a pronouncement over a month ago.

• The finance ministry had contested the Central Statistical Office's estimate of the Indian

economy expanding at 5% during 2012-13, the slowest pace of growth in a decade, and

had suggested that the increase in economic activity would be of the order of 5.5%. North

Block had based its assessment on three "turning points" but apart from an improved

export performance, there has been little to cheer.

• On the manufacturing front, car and truck sales, a key barometer of economic activity,

are down. Similarly, demand for white goods remains tepid. And, the slowdown in the

Manufacturing space has impacted the demand for services, as CSO had estimated. WB

chief sees 6% growth next year.

7

• New Delhi: The Indian economy is likely to grow at a rate of 6% next year and probably

more thereafter as exports markets start doing better, World Bank president Jim Yong

Kim said on Monday. Kim, who is on a three-day India visit, met finance minister P

2Chidambaram here.

• "Growth rate of 5% (projected for this fiscal) here is one that has been somewhat

disappointing but we are very encouraged by what has happened and what will happen

and we think India will get back to higher levels of growth," he said. The Indian economy

is subject to global slowdown, he said, adding that "as export market starts doing better,

we think India will do better as well".

• Indian economy is estimated to have grown 5% in 2012-13. The Economic Survey of

2012-13 has predicted a growth rate of 6.1-6.7% for the next fiscal.

In his meeting with the World Bank chief, Chidambaram underlined the need for

enhancing the capital base of the World Bank to meet the challenges of poverty reduction

and infrastructure development in the developing countries. AGENCIES

Export Preferences List for India

In the last decade merchandise exports in India have experienced significant growth. The exports

went down during the global economic meltdown of 2008 but have since performed well and it is

expected that in 2012 this sector will see an increase of 30 percent.

In the preceding 10 years India’s exports have increased by more than 25 percent and the

services sector has made a major contribution with regards to earning foreign exchange. The

Special Economic Zones have contributed almost 30 percent of India’s exports.

8

India’s merchandise exports in the last decade and future prospects

In the period from 2004-05 to 2008-09 the exports sector has witnessed a CAGR of 22 percent

compared to the period between 2000-01 and 2003-04 when the similar figure stood at 14%.

The rate went down after the 2008 global financial slowdown but from November 2009 onwards

the trends have been positive. During April 2010 to February 2011 India exported goods worth

208.2 billion US dollars. This was a year-on-year growth of 31.4 percent.

The Ministry of Commerce and Industry is hopeful that India’s merchandise exports in the

upcoming fiscal will be approximately 235 billion dollars, and the growth will be as per the

recent trends.

The following table, which has been collected from data provided by Economic Survey 2010-11,

shows India’s share, in percentage, in the global goods exports from 2000 to 2010:

Country 2000 exports 2009 exports 2010 exports (from January to June)

India 0.7 1.3 1.4

Brazil 0.9 1.3 1.4

China 3.9 9.7 10

South Africa 0.5 0.5 0.5

Russia 1.7 2.5 2.7

Mexico 2.6 1.9 2

The Economic Survey 2010-11 reveals that at present India is in the 21st position when it comes

to leading merchandise exporters of the world.

9

India’s service exports in the last decade

Services are a major contributor to India’s foreign exchange earnings. In 2009-10 India earned

95.8 billion dollars in this sector and within 2000-01 and 2007-08 it experienced a CAGR of 28

percent, a testimony to its robust growth. India’s services export growth rate was commendable

in 2010-11 as well.

From April to September 2010 this sector recorded a year on year growth of 27.4%. In the

corresponding period in the previous fiscal the services sector had experienced a year on year

loss of 16.8 percent.

The following table from the RBI and Economic Survey 2010-11 shows a comparative analysis

of India’s merchandise and services exports in the last decade:

Year Merchandise exports (in billion

dollars)

Services exports (in billion

dollars)

2000-

01 44.2 16.3

2005-

06 103.1 57.7

2008-

09 185.3 106

2009-

10 178.7 95.8

10

India’s SEZ exports in the last decade

Following the introduction of the SEZ Act (2005) and SEZ Rules (2006), this sector has

experienced a high rate of growth. One of the major aims behind the introduction of the act was

promotion of exports and the SEZs’ performance has helped achieve that target to a certain

extent.

As of now 130 SEZs are operating in different parts of the country and these entities have been

making significant contributions to India’s merchandise and services export growth.

In 2005-06 India’s SEZs contributed 5 percent to the aggregate exports and this went up to

29.7% during 2010-11. In the said period this sector witnessed a CAGR of 76 percent

.India exports – composition

India’s exports have been traditionally based on manufactured goods. However, in the last

decade the share has reduced in excess of 10 percentage points – in 2003-04 this sector

accounted for 76 percent but it came down to 65% in 2009-10.

In the composition of manufactured goods, engineering goods have been seen an increase in

share while textiles, inclusive of readymade garments, has experienced a downfall.

The POL products have experienced a major increase when it comes to exports – in 2003-04 this

sector had contributed 5.6 percent that went up to 15.7% in 2009-10. In April-August 2010-11

the exports have seen a year-on-year increase of 74.7 percent, agriculture and allied products’

share has gone up by 2.7%, and exports for manufactured goods have increased by 22.2%.

In the same period the exports of ores and minerals have increased from 3.7 to 4.9 percent.

Software is the major contributor when it comes to services exports and accounts for almost 50%

in this domain. From 2000-01 to 2007-08 services exports have had a CAGR of 30 percent.

11

Travel, transport and insurance including commercial services contribute almost 25% of the

export earnings of the services sector. However, their share has come down from the 2000-01

figures of more than 30%.

Business services have also played a major role in India’s exports with a contribution of 12

percent during 2009-10. In April-September 2010-11 there has been a year-on-year increase of

15 percent in the software exports sector and 111% rise in business services exports. Travel and

transportation sector has seen an increase of 26% in the same period.

India exports – major partners

Asian markets, with the exception of Middle East, are the biggest export partners of India

accounting for almost 30 percent of the total figure. The Middle East is responsible for 20% of

India’s aggregate exports. In Asia, Hong Kong and China together account for 10% of the

exports and approximately 14% of export transactions are done with the UAE.

Europe accounts for almost 20 percent of India’s exports and the shares are evenly distributed

among the various countries in this continent. The US accounts for at least 10% of goods and

services exported by India.

India is yet to establish itself in the markets in Africa as is evident from its export statistic of 8

percent for the continent. Indian goods and services do not enjoy any significant demand in

South America

India exports and GDP growth

In January 2012 India’s exports amounted to 25347 million dollars and this amounted to 22

percent of the aggregate GDP for the period. Jewelry and gems were the major components and

accounted for 16% of the aggregate exports.

Experts opine that India could leave China behind as the quickest growing economy in 2012. In

the third quarter of 2010-11 fiscal India’s GDP grew at 8.2% on a year-on-year basis. This is

12

much less than China’s corresponding figure of 10.4% but it is expected that several factors such

as increasing exports, population, and services will help it perform better than China.

In 2006 Kamal Nath, during his term as the Union Minister of Commerce and Industry, had

stated that India’s exports had played a major role in its GDP growth that has touched the 7-8

percent mark in the last couple of years. From 2003-2006 India’s exports have grown by 20

percent, on a consistent basis.

In the September quarter of the 2011-12 fiscal, India’s exports went up by 27.4 percent on a year

on year basis. In the same period, imports increased by 10.9%. This meant that the sector was

able to contribute 37.5 percent of the GDP growth in that particular period.

Future of Indian exports

India’s manufacturing sector is expected to account for a major part in the country’s export

growth as per the McKinsey Report. In the last couple of years, the developed countries have

been attempting to get products made from the LCCs (low cost countries) and India can be

expected to make the most of this demand. It will be helped in a significant way by its skilled but

inexpensive labor force.

The report further states that India’s manufacturing exports will go up to almost 300 billion

dollars in 2015 from $40 billion in 2002. The export figure for 2015 is equivalent to almost 3.5%

in global manufacturing trade at that point in time. The increase in manufacturing exports will

also generate 25-30 million jobs in the said sector and this will contribute 1% to the yearly GDP

growth rate.

13

Trading links between India and UAE have existed since long. Growing Indo-UAE economic

and commercial relations contribute valuable stability and strength to bilateral relationship

between the two countries. The UAE enjoys a broad and comprehensive economic relationship

with the India, based on mutual interests.

The current bilateral trade volume tells that this is exciting time in the history of UAE-India

economic relations. According to government of India figures UAE is India’s top trading partner

for the financial year 2008-09, simultaneously The UAE government figures shows India as their

top trading partner in 2008.

According to government of India figures, the bilateral trade between India - UAE for the

financial year April 2008 – March 2009 was US$ 44.53 billion compared to US$ 29.11 billion

during the same period in April 2007– March 2008, an increase by 52.95 %.

According to UAE government figures, in 2008 the UAE - India bilateral trade rose 48 per cent

from 2007 to reach around USD 32 billion, accounting for 15 per cent of the Emirates’ total

foreign trade.

Indian exports to UAE mainly include gems and jewelry, vegetables, fruit, spices, engineering

goods, tea, meat and its preparations, rice, textiles and apparel and chemicals. Indian imports

from UAE mainly include crude & petroleum products, gold & silver, pearls, precious and

semiprecious stones, metal ores & metal scrap, electronics goods and transport equipment.

ECONOMIC AND TRADE

14

UAE investment in India is also witnessed a significant growth in recent years. UAE has

invested over USD 5 billion in India through FDI (Foreign Direct Investment) and FII (Foreign

Institutional Investors) routes which makes UAE is one of the top investor in India. The major

UAE companies invested in India are DP world, Emaar Group, Al Nakheel, ETA Star Group, SS

Lootah Group, Emirates Techno Casting FZE, RAK Investment Authority, Damas Jewellery and

Abu Dhabi Commercial Bank.

India is also a third largest investor in UAE. Indian companies like L&T, Punj Lloyd, Hinduja

Group, Pioneer Cement, Oberoi Group of Hotels, have bagged projects in the UAE. Following

the emergence of UAE as a major re-export centre, Indian companies have emerged as important

investors in the free trade zones such as Jebel Ali FTZ, Sharjah Airport, Hamariya Free Zones

and Abu Dhbai Industrial City.

The notable reason of strong Indo-UAE economic ties is huge expatriate Indian population in

UAE. Almost 2 million Indian expatriates currently live and work in the UAE, comprising more

than 30 per cent of the national population and constituting the Emirates’ largest expatriate

group. The expatriate community also contributes to Indian economy. The total remittances to

India from the UAE in 2008-09 were about USD 10 -12 billion, which is around one third of all

the total remittances from the GCC countries to India which is around USD 32-25 billion.

15

16

End-Use Code Value 2005

Value 2006

Value 2007

Value 2008

Value 2009

Value 2010

Value 2011

(00000) Wheat 13 0 96 3 453 25 0 (00010) Rice 437 327 504 103 881 576 1,028 (00100) Soybeans 584 13 17 248 239 54 206 (00110) Oilseeds, food oils

14,273 14,122 14,031 4,469 123,570 149,727 11,437

(00200) Corn 680 919 1,050 953 953 528 252 (00210) Sorghum, barley, oats

0 6 13 40 0 112 229

(00220) Animal feeds, n.e.c.

2,528 3,763 4,117 4,727 5,945 9,692 10,149

(00300) Meat, poultry, etc.

376 137 220 814 528 565 381

(00310) Dairy products and eggs

996 2,377 3,525 3,167 1,940 2,108 3,539

(00320) Fruits, frozen juices

30,808 37,341 37,968 27,221 49,995 52,800 104,980

(00330) Vegetables 14,253 29,484 68,898 69,073 107,364 96,013 44,511 (00340) Nuts 130,912 158,001 179,331 189,549 191,027 246,137 310,129 (00350) Bakery products

3,212 2,636 5,304 5,121 4,099 6,380 8,140

(00360) Other foods 20,097 25,389 28,051 29,557 36,336 52,206 62,702 (00370) Wine and related products

376 792 1,607 525 535 1,081 975

(01000) Fish and shellfish

1,779 1,321 2,442 2,567 2,621 1,984 4,458

(01010) Alcoholic beverages, excluding wine

1,193 558 873 1,344 1,209 1,940 2,687

(01020) Nonagricultural foods, etc.

3,311 3,130 4,051 6,102 8,263 10,075 8,356

(10000) Cotton, raw 41,419 52,490 78,557 103,025 104,082 69,113 92,372 (10100) Tobacco, unmanufactured

542 150 459 210 632 442 169

(10120) Hides and skins

4,169 4,962 5,218 3,831 3,726 3,193 764

17

(10130) Agric. industry-unmanufactured

6,576 7,803 10,700 8,899 9,492 9,998 18,259

(10140) Agric. farming-unmanufactured

5,477 7,273 11,459 10,155 9,047 13,244 14,489

(10150) Agriculture-manufactured, other

18,555 18,385 26,258 27,309 39,710 41,657 43,861

(11010) Metallurgical grade coal

129,565 96,052 90,562 345,549 356,382 451,045 868,333

(11020) Coal and fuels, other

20,742 5,255 1,181 16,214 1,164 45,760 89,825

(11110) Fuel oil 33,195 4,492 461 10,744 14,566 867 281 (11120) Petroleum products, other

216,355 336,773 366,660 581,010 647,487 636,367 770,237

(11130) Natural gas liquids

1,957 274 300 218 279 213 29,016

(11200) Gas-natural 0 0 0 0 0 22,687 110,966 (11300) Nuclear fuel materials

2,007 2,424 3,053 4,188 3,218 4,266 4,855

(12000) Steelmaking materials

224,217 175,783 349,043 372,278 433,541 389,851 572,336

(12100) Iron and steel mill products

129,805 84,771 109,616 107,434 97,569 111,226 121,197

(12110) Iron and steel products, other

52,430 63,141 103,698 149,284 154,347 147,403 158,506

(12200) Aluminum and alumina

12,528 15,747 31,422 55,833 41,851 57,485 93,443

(12210) Copper 53,271 96,829 81,551 50,413 33,656 65,253 77,072 (12260) Nonmonetary gold

44,627 6,404 381,672 500,461 645,186 1,192,002 779,271

(12270) Precious metals, other

2,090 4,023 166,643 66,194 28,300 53,816 61,145

(12290) Nonferrous metals, other

26,318 40,614 49,205 48,409 53,010 52,527 73,316

(12300) Finished metal shapes

72,584 79,427 82,765 131,254 100,729 118,888 162,669

(12420) Pulpwood and woodpulp

136,913 156,402 227,531 205,181 260,350 348,539 450,006

18

(12430) Newsprint 47,876 30,966 65,048 168,451 85,786 221,464 297,413 (12500) Plastic materials

167,327 196,663 275,984 360,341 505,997 582,604 616,382

(12510) Chemicals-fertilizers

484,455 608,017 818,249 3,059,007 1,283,313 1,374,953 1,582,670

(12530) Chemicals-inorganic

58,257 94,205 90,913 127,156 99,456 145,382 153,741

(12540) Chemicals-organic

371,439 375,781 485,273 487,690 534,694 777,891 768,027

(12550) Chemicals-other

200,179 249,461 283,416 411,316 425,354 515,448 662,102

(12600) Cotton fiber cloth

1,382 2,445 2,039 3,721 3,206 3,999 2,971

(12620) Manmade cloth

26,926 37,904 29,789 33,949 33,664 42,250 54,859

(12630) Hair, waste materials

6,131 9,215 14,790 14,708 14,554 22,806 15,254

(12640) Finished textile supplies

8,172 9,234 10,531 15,432 16,247 18,075 22,964

(12650) Leather and furs

1,801 2,594 2,457 3,344 2,631 3,060 4,224

(12700) Synthetic rubber-primary

40,030 52,235 78,692 94,532 76,448 112,383 141,982

(12720) Nonmetallic minerals

4,108 4,768 8,702 10,947 5,094 10,678 10,193

(12750) Industrial rubber products

8,698 10,368 15,311 21,566 18,940 27,932 36,516

(12760) Mineral supplies-manufactured

26,303 33,600 39,746 50,045 40,684 48,312 70,857

(12765) Tapes, audio and visual

2,407 3,271 2,570 1,616 2,681 5,353 1,679

(12770) Other industrial supplies

107,418 140,894 160,709 198,330 194,227 239,110 281,753

(13100) Logs and lumber

2,085 2,049 3,832 8,061 7,053 10,871 26,754

(13110) Wood supplies, manufactured

756 1,001 1,003 2,493 1,684 2,013 3,446

(13200) Glass-plate, sheet, etc.

8,078 4,254 4,963 15,267 10,233 9,900 6,635

19

(13210) Shingles, molding, wallboard

14,632 12,256 15,122 21,361 15,394 21,953 29,206

(13220) Nontextile floor tiles

290 419 8,192 2,960 1,357 4,145 2,802

(20000) Generators, accessories

72,744 73,807 68,082 99,793 124,746 121,389 184,803

(20005) Electric apparatus

182,737 206,907 216,726 255,876 255,313 291,353 326,511

(21000) Drilling & oilfield equipment

134,291 152,993 285,910 368,188 282,318 151,888 216,510

(21010) Specialized mining

6,589 11,603 22,101 29,765 50,169 72,135 37,573

(21030) Excavating machinery

46,945 55,594 79,143 78,069 94,889 81,605 140,875

(21040) Nonfarm tractors and parts

4,562 5,021 4,816 17,701 2,231 14,686 17,619

(21100) Industrial engines

133,819 143,296 252,697 279,895 516,379 699,523 752,456

(21110) Food, tobacco machinery

23,838 28,782 55,112 63,522 52,824 75,199 81,341

(21120) Metalworking machine tools

121,701 129,590 176,495 229,204 181,726 235,495 232,398

(21130) Textile, sewing machines

49,530 52,906 49,146 42,915 31,766 49,596 28,197

(21140) Wood, glass, plastic

46,644 33,625 32,876 51,449 36,609 70,738 60,738

(21150) Pulp and paper machinery

35,825 40,946 46,132 57,975 39,165 45,575 61,055

(21160) Measuring, testing, control instruments

177,860 212,721 289,395 317,211 296,993 335,137 392,303

(21170) Materials handling equipment

62,273 48,101 64,029 134,990 168,288 135,488 178,103

(21180) Industrial machines, other

206,657 251,180 345,388 443,246 424,324 550,318 665,142

(21190) Photo, service industry machinery

53,377 53,519 89,677 88,702 73,006 88,512 109,702

(21200) Agricultural machinery,

6,403 10,180 13,944 14,696 15,732 25,807 28,836

20

equipment (21300) Computers 183,926 202,737 233,949 216,222 212,947 192,334 172,432 (21301) Computer accessories

261,309 311,039 276,542 231,130 182,532 183,652 191,083

(21320) Semiconductors

107,875 129,060 139,891 149,800 170,907 188,911 242,271

(21400) Telecommunications equipment

463,188 485,910 602,705 652,130 582,075 623,943 624,069

(21500) Business machines and equipment

17,844 19,035 36,982 27,941 30,515 33,718 27,911

(21600) Laboratory testing instruments

91,046 98,679 147,159 169,696 143,195 158,440 192,789

(21610) Medicinal equipment

221,176 259,410 295,649 324,325 356,572 411,910 453,947

(22000) Civilian aircraft

0 0 0 0 0 0 0

(22010) Parts-civilian aircraft

0 0 0 0 0 0 0

(22020) Engines-civilian aircraft

0 0 0 0 0 0 0

(22090) Civilian aircraft, engines, equipment, and parts

641,211 1,315,747 3,523,994 1,734,246 2,158,918 1,161,712 642,435

(22100) Railway transportation equipment

28,223 36,039 62,866 31,997 53,754 70,322 56,725

(22200) Vessels, excluding scrap

0 0 1,900 0 36 156 0

(22210) Commercial vessels, other

460 311 3,277 1,087 3,116 2,896 6,356

(22220) Marine engines, parts

29,133 3,474 8,191 10,380 9,209 59,117 6,369

(22300) Spacecraft, excluding military

0 21 0 0 0 0 0

(30000) Passenger cars, new and used

489 453 2,338 7,475 9,626 26,456 38,961

(30100) Trucks, buses and special purpose vehicles

9,931 4,355 5,696 30,288 17,832 11,567 8,817

21

(30200) Engines and engine parts (carburetors, pistons, ri

26,699 22,191 41,834 75,906 45,728 70,384 85,177

(30210) Bodies and chassis for passenger cars

0 0 114 897 2,248 3,357 1,567

(30220) Automotive tires and tubes

745 909 1,305 2,183 2,537 3,811 3,034

(30230) Other parts and accessories of vehicles

35,278 56,865 64,311 79,755 54,699 106,862 154,591

(40000) Apparel, household goods – textile

19,456 19,433 17,616 18,891 24,997 32,176 45,322

(40030) Apparel,household goods-nontextile

9,701 7,880 5,217 7,783 7,101 6,243 8,892

(40050) Sports apparel and gear

482 1,069 694 937 526 1,491 3,744

(40100) Pharmaceutical preparations

116,461 105,320 131,280 150,915 213,871 241,434 292,716

(40110) Books, printed matter

32,625 36,193 55,716 46,626 34,768 43,570 39,125

(40120) Toiletries and cosmetics

8,199 9,200 12,238 20,010 20,091 26,753 35,151

(40130) Tobacco, manufactured

399 983 1,270 1,500 413 668 800

(40140) Writing and art supplies

15,979 18,422 24,951 39,909 32,788 43,927 55,827

(41000) Furniture, household goods, etc.

7,544 7,535 10,887 11,133 8,363 15,231 12,971

(41010) Glassware, chinaware

2,221 2,917 3,558 3,568 3,576 5,178 6,360

(41020) Cookware, cutlery, tools

985 2,055 3,442 3,589 3,134 4,035 3,361

(41030) Household appliances

21,783 27,749 27,541 32,377 30,650 35,806 31,653

(41040) Rugs 10,497 16,961 15,511 15,778 12,479 13,680 15,136

22

(41050) Other household goods

30,338 53,350 60,441 76,780 97,964 109,769 116,914

(41110) Pleasure boats and motors

1,683 1,908 8,788 5,553 5,666 4,409 3,027

(41120) Toys/games/sporting goods

16,463 27,836 38,590 28,671 20,812 25,423 40,797

(41140) Musical instruments

7,002 2,065 4,407 6,015 5,069 6,740 9,083

(41200) TV's, VCR's, etc.

6,776 11,292 15,206 16,072 14,291 13,721 14,176

(41210) Stereo equipment, etc.

9,592 12,286 17,817 17,866 19,259 21,328 37,571

(41220) Records, tapes, and disks

140,467 135,467 181,348 100,609 104,329 68,332 56,405

(41300) Numismatic coins

10 35 9 7 4 15 190

(41310) Jewelry, etc 217,133 285,754 301,555 244,860 185,814 188,638 226,609 (41320) Artwork, antiques, stamps, etc.

7,036 43,164 46,803 46,249 22,787 30,019 17,621

(42000) Nursery stock, etc.

81 636 304 628 370 275 334

(42100) Gem diamonds

467,122 621,176 1,040,403 1,729,660 1,471,761 2,771,518 3,558,753

(50000) Military aircraft, complete

0 0 127 19 0 0 17,311

(50010) Aircraft launching gear, parachutes, etc.

60,186 106,208 107,903 67,479 66,599 58,549 48,464

(50020) Engines and turbines for military aircraft

3,431 13,104 59,346 15,659 49,156 41,449 1,627

(50030) Military trucks, armored vehicles, etc.

5 11,599 0 0 0 0 0

(50050) Tanks, artillery, missiles, rockets, guns and ammu

369 148 54 91 341 335 153

(50060) Military 44 30,124 20,649 3,298 293 50 7

23

apparel and footwear (50070) Parts for military-type goods

15,157 15,040 17,745 46,583 28,355 56,950 62,442

(60000) Minimum value shipments

126,163 150,173 204,945 299,866 249,844 335,588 332,600

(60010) Miscellaneous domestic exports and special transac

28,961 18,094 44,671 48,480 70,020 24,402 24,443

TOTAL 7,918,602 9,673,571 14,968,846 17,682,085 16,441,395 19,250,119 21,501,254

As from the above table, we can say that export of food items is increasing every year. As India

is the land of agriculture as there is abundance of food items and mainly various food items like

rice, animal feeds, fruits and vegetable, nuts, bakery and agriculture food. This food items export

is increasing every year with high percentage. As exporting of engineering goods is also

increasing like copper, steel pipes, metal parts of cars and other equipment, passenger parts in

bodies, telecommunication equipments, agriculture machineries, glass making machineries. As

export of leather is tremendously increasing like leather and furs. Export of textile is increasing

every year and items such are man made clothes and various textile machines is been exported in

high quantity and it is increasing each year. As in the every sector India is exporting the products

in the high quantity which will be sign of developing country to developed country. India should

continuously searching for other opportunities in various sectors and increases its export to

reduce the current deficit of the country and reduce the balance of payment.

24

25

U.A.E HISTORY

The United Arab Emirates (UAE) was created when seven Gulf emirates merged in 1971.

The cities, watered by extensive irrigation systems, have lavish greenery. Prosperity once

relied on pearls, but the UAE is now a sizable gas and oil exporter, and has a growing

services sector. The Head of State is elected by the Supreme Council of the hereditary

rulers of the states, and serves for five years. The current Head is Sheikh Khalifa bin

Zayed al-Nahayan who is ruler of Abu Dhabi.

The constituent emirates are Abu Dhabi, Ajman, Dubai, Fujairah, Ras al-Khaimah, Sharjah, and

Umm al-Quwain. The capital is Abu Dhabi, which is also the state's center of political, industrial,

and cultural activities.

UAE oil reserves are ranked as the world’s sixth-largest, and it possesses one of the most

developed economies in West Asia. It is the thirty-fifth-largest economy at market exchange

rates, and has a high per capita gross domestic product (GDP), with a nominal per capita GDP of

US$ 47,407 as per the International Monetary Fund (IMF). It is 15th in purchasing power per

capita and has a relatively high Human Development Index for the Asian continent, ranking

thirtieth globally. The UAE is classified as a high-income developing economy by the IMF.

26

HISTORY

The U.A.E. was formed from the group of tribally organized Arabian Peninsula sheikhdoms

along the southern coast of the Persian Gulf and the northwestern coast of the Gulf of Oman. For

centuries, the sheikhdoms were embroiled in dynastic disputes. It became known as the Pirate

Coast as raiders based there harassed foreign shipping, despite both European and Arab navies

patrolling the area from the 17th to the 19th century. Early British expeditions to protect India

trade from raiders at Ras al-Khaimah led to campaigns against other harbors along the coast in

1819. The next year, a general peace treaty was signed to which all the principal sheikhs of the

coast adhered. Raids continued intermittently until 1835, when the sheikhs agreed not to engage

in hostilities at sea. In 1853, they signed a treaty with the United Kingdom, under which the

sheikhs (the "Trucial Sheikhdoms") agreed to a "perpetual maritime truce." It was enforced by

the United Kingdom, and disputes among sheikhs were referred to the Political Resident, a

British civil servant, for settlement.

Primarily in reaction to the ambitions of other European countries, the United Kingdom and the

Trucial Sheikhdoms established closer bonds in an 1892 treaty, similar to treaties entered into by

the U.K. with other Gulf principalities. The sheikhs agreed not to dispose of any territory except

to the United Kingdom and not to enter into relationships with any foreign government other

than the United Kingdom without its consent. In return, the British promised to protect the

Trucial Coast from all aggression by sea and assist the Sheikhs in the case of land attack.

In 1955, the United Kingdom sided with Abu Dhabi in the latter's dispute with Saudi Arabia over

the Buraimi Oasis and other territory to the south. A 1974 agreement between Abu Dhabi and

Saudi Arabia almost settled their border dispute, but the agreement was never ratified by the

U.A.E. Government. The border with Oman also remains officially unsettled, although the two

governments agreed to delineate the border in May 1999.

27

In 1968, the U.K. announced its decision to end the treaty relationships with the seven Trucial

Sheikhdoms which had been, together with Bahrain and Qatar, under British protection. The nine

attempted to form a union of Arab emirates, but by mid-1971 they were unable to agree on terms

of union. Bahrain became independent in August and Qatar in September, 1971. When the

British-Trucial Sheikhdoms treaty expired on December 1, 1971, they became fully independent.

On December 2, 1971, six of them entered into a union called the United Arab Emirates. They

are Abu Dhabi, Dubai, Sharjah, Umm al-Qaiwain, Fujairah and Ajman.The seventh, Ras al-

Khaimah, joined in early 1972. Abu Dhabi’s ruler, Sheikh Zayed bin Sultan al Nahyan was

elected by the Supreme Council as President and Dubai’s ruler, Sheikh Rashid bin Said al

Maktoum, became Prime Minister.

The U.A.E. sent forces to help liberate Kuwait during the year 1990-91 Gulf War. U.A.E. troops

have also participated in peacekeeping missions to Lebanon, Somalia, Bosnia, Albania, Kosovo,

and Afghanistan.

In 2004, the U.A.E.'s first and only president until that time, Sheikh Zayed bin Sultan Al

Nahyan, died. His eldest son and Crown Prince, Khalifa bin Zayed Al Nahyan, succeeded him as

Ruler of Abu Dhabi. In accordance with the Constitution, the U.A.E.'s Supreme Council of

Rulers elected Khalifa bin Zayed Al Nahyan as U.A.E. Federal President. Mohammed bin Zayed

al Nahyan succeeded Khalifa as Crown Prince of Abu Dhabi. In January 2006, Sheikh Maktoum

bin Rashid Al Maktoum, U.A.E. Vice President and Prime Minister and Ruler of Dubai, passed

away and was replaced by his brother, Sheikh Mohammed bin Rashid Al Maktoum

28

POLITICAL AFFAIRS

New Beginnings

In the early 1930s the first oil company teams conducted geological surveys. In 1962, the first

shipment of crude was exported from Abu Dhabi. With oil revenues growing year by year, the

Late Sheikh Zayed bin Sultan Al Nahyan was chosen as Ruler of Abu Dhabi in 1966. He

undertook a massive programme of construction of schools, housing, hospitals and roads.

One of Sheikh Zayed’s early steps was to increase contributions to the Trucial States

Development Fund. Abu Dhabi soon became its largest donor. In the meantime, the Late Sheikh

Rashid bin Saeed Al Maktoum, de facto Ruler of Dubai since 1939, developed shipping to

replace pearling revenues. When Dubai’s oil exports started in 1969, Sheikh Rashid was able to

use oil revenues to improve the quality of life of his people.

At the beginning of 1968, when the British announced their intention to withdraw from the

Arabian Gulf, Sheikh Zayed acted rapidly to establish closer ties with the emirates. With the Late

Sheikh Rashid, the Late Sheikh Zayed called for a federation that would include not only the

seven Emirates that together made up the Trucial States, but also Qatar and Bahrain.

Agreement was reached between the rulers of six of the Emirates (Abu Dhabi, Dubai, Sharjah,

Umm al-Qaiwain, Fujairah and Ajman), and the Federation to be known as the United Arab

Emirates was formally established on 2 December 1971. The seventh Emirate, Ra’s al-Khaimah,

acceded to the new Federation the following year.

Since then, the seven Emirates have forged a distinct national identity. The UAE’s political

system combines traditional and modern and enabled the country to develop a modern

administrative structure while ensuring that traditions of the past are maintained, adapted and

preserved.

29

Political System

The United Arab Emirates is a Federation of seven emirates, each with its own ruler.

Government works at three levels – federal, emirate and municipal. Since its formation in 1971,

the Federation has brought political stability and security. The UAE’s political system is a

unique mix of the old and new. It is neither a constitutional monarchy nor a republic. The emirs

chose one of their members to be the president of the federation, but this does not alter the

monarchical character of the government of the individual emirates. The constitution is

concerned solely with the relations between the emirates as members of the federation, and does

not prescribe a constitutional system of government.

Cultural traditions such as open majlis, in which tribesmen voice their opinions directly to their

ruler, coexist alongside a modern and always evolving administrative system.

The Federal Government has responsibility for the following: foreign affairs, security and

defense; nationality and immigration issues; education; public health; currency; postal, telephone

and other communications services; air-traffic control and licensing of aircraft; labour relations;

banking; delimitation of international waters and the extradition of criminals.

In May 1996, the provisional constitution was made permanent, and Abu Dhabi was designated

as the Federation’s capital. The Federal Government structure comprises five bodies: the Federal

Supreme Council, President, Council of Ministers, Federal National Council and Federal

Judiciary.

Federal Supreme Council

The rulers of each emirate are members of the Federal Supreme Council, which is the top policy-

making body in the UAE. The Council elects the President and Vice-President of the UAE,

ratifies federal laws and decrees, and approves the nomination of the Prime Minister, who is

selected by the President in consultation with Supreme Council members.

30

His Highness Sheikh Zayed bin Sultan Al Nahyan, ruler of Abu Dhabi, was elected the first

President of the Federation. Following his death on 2 November 2004, he was succeeded by his

son and Crown Prince, His Highness Sheikh Khalifa bin Zayed Al Nahyan, on 3 November,

2004.

President

The President and Vice-President are elected for a five-year term and are eligible for re-election

on the expiry of their terms. The President exercises a wide range of legislative and executive

powers. He is entrusted with signing laws, decrees and decisions approved and sanctioned by the

Supreme Council, supervising their implementation through the Council of Ministers, and

ratifying treaties and international agreements approved by the Supreme Council and Council of

Ministers.

Council of Ministers

The Council of Ministers is the UAE’s executive body. It is lead by the Prime Minister, who

chooses a Cabinet from among representatives of the seven emirates. The membership of the

Cabinet is then ratified by the President. Four members of the current Council of Ministers are

women.

Federal National Council

The Federal National Council or FNC is a consultative assembly, made up of 40 members

representing the seven emirates. The number of seats assigned to each emirate is determined by

their population – Abu Dhabi (8), Dubai (8), Sharjah (6), Ajman (4), Umm al-Quwain (4), Ras

al-Khaimah (6), and Fujairah (4). FNC members hold office for four years, and the Council sits

from the third week of October.

31

In December 2006, a process of electing FNC members was initiated. Half the members were

elected, and half are nominated by the ruler of each emirate. Nine members of the current FNC

are women.

The National Council examines proposed federal legislation and constitutional amendments,

reviews the annual draft budget of the Federation, debates international treaties and conventions

and influences the Government’s work through discussion, question-and-answer sessions and in

making recommendations.

Federal Judiciary

The Federal Judiciary, which is accorded independence under the Constitution, includes the

Federal Supreme Court and Courts of First Instance. The Federal Supreme Court comprises five

judges appointed by the Supreme Council. The judges decide on the constitutionality of federal

laws and arbitrate on inter-emirate disputes between the Federal Government and the emirates.

Local Government

Corresponding to the federal institutions are the local governments of the seven emirates.

Varying in size, they have evolved along with their respective emirates’ growth, and their

mechanisms differ from emirate to emirate.

LEGAL ASPECT

COURT SYSTEM

The UAE has a federal court system comprised of three branches, civil, criminal and Shariah.

The highest court, Abu Dhabi Supreme Court, is located in Abu Dhabi. The emirates of Dubai

and Ras al-Khaimah have their own local and appellate courts, which have jurisdiction over all

matters that the constitution does not specifically reserve for the federal courts. Dubai and Ras

Al Khaimah do not refer cases to the Abu Dhabi Supreme Court but rather, Dubai and Ras Al

32

Khaimah have their own highest court (Court of Cassation) located within the respective

Emirate.

The UAE Courts are comprised of Court of First Instance, Court of Appeals and Abu Dhabi

Supreme Court or Court of Cassation (Dubai or Ras Al Khaimah). The Court of First Instance,

located in each Emirate, has general jurisdiction and includes the Civil Court, Criminal Court

and Shariah Court.

Following judgment by the Court of First Instance, parties have the right to appeal to the Court

of Appeals on factual and/or legal grounds. Notably, additional evidence including witness

testimony can be presented at the Court of Appeals. Following judgment by the Court of

Appeals, aggrieved parties have the right to appeal to the Abu Dhabi Supreme Court or Court of

Cassation (Dubai and Ras Al Khaimah) on matters of law only. The Abu Dhabi Supreme Court

also has jurisdiction over disputes between Emirates and disputes between the federal

government and an individual Emirate. Judgment rendered by the Abu Dhabi Supreme Court or

Court of Cassation is final and no further appeal is available.

Criminal actions in the UAE are commenced with the filing of a complaint with the local police

in the jurisdiction where the offense is alleged to have been committed. The police will then

commence an investigation which may include taking statements from relevant parties.

Generally, within 48 hours of filing the complaint, the matter is referred to the Prosecutor. The

Prosecutor then conducts an investigation, takes statements and gathers evidence. Following

investigation, the Prosecutor will then decide whether to refer the matter to court or decline to

press charges. This process generally takes 14 days though the Prosecutor may request an

extension of time from the Court. Defendants have the right to be present at trial and are

presumed innocent until proven guilty. Defendants also have a limited right to counsel.

The Shariah Court or Islamic Court handles civil matters between Muslims and has exclusive

jurisdiction over family matters including divorce, custody, guardianship and inheritance.

Labor Law issues

The UAE has four main types of Labor laws:

33

Federal Labor Law – Applies to all the seven Emirates and supersedes free zone laws in

certain areas.

JAFZA Labor Law – Applies to the Dubai Jebel Ali Free Zone.

TECOM Labor Law – Applies to all Dubai Technology and Media Free Zone properties:

Internet City, Media City, Studio City and International Media Production Zone.

DIFC Labor Law – Applies to all companies in the Dubai International Financial Center

free zone.

Labor laws generally favor the employer and are less focused on the rights of employees. The

Ministry of Labor is criticized for loosely enforcing these laws, most notably late or no wage or

overtime payment for both blue collar and white collar employees. Free Zone labor laws are

friendlier to employees moving between companies unlike the Federal UAE labor law, which

automatically bans employees for a period of six months up to a year for leaving a company

before completing one year of employment. These kinds of laws discourage free labor

movement, and give employers an unfair advantage in salary negotiations.

U.A.E human rights

a. Providing more mechanisms to protect human rights, keeping up with national and

international developments, and updating laws and systems.

b. Meeting the state's expectations with regards to building national capabilities and

deepening efforts for education on human rights and basic freedoms through a national

plan.

c. Striving to regulate the relationship between employers and workers in framework that

preserves dignity and rights, and is in harmony with international standards, especially

with regards to domestic help.

d. Increasing the empowerment of women's role in society, increasing opportunities for

involvement in a number of fields based on their skills and abilities.

e. Working to confront human trafficking crimes by reviewing the best international

practices in the field, working to update and improve the state's legislature in accordance

with international standards, working to establish institutions and agencies to confront

34

human trafficking crimes, and working to support the foundations of international

cooperation with international organizations and institutions.

The GCC Common Customs Law distinguishes absolute import prohibitions from restricted

imports. In the UAE, absolute import prohibitions are maintained for various reasons, including

international conventions, environmental protection, health and safety, and religious and moral

considerations.

They cover all kind of drugs; asbestos; used pneumatic tyres; industrial waste; forged and

duplicate currency; Houbara falcons; ivory and rhinoceros horn; live camels; any printed

material that does not adhere to religion or morals or that is aimed at causing corruption and

disorder; or materials prohibited under any law in force in the country. All imports from Israel

are prohibited.

The UAE maintains export controls on certain products for safety, security and environmental

reasons, and to ensure compliance with international obligations under treaties and conventions

to which it is a signatory. Each emirate is responsible for its own export promotional activities,

which are coordinated by the relevant departments of economy or tourism.

ECONOMIC ASPECT

At $360 billion in 2012, the GDP of the UAE ranks second in the CCASG (after Saudi Arabia),

third in the Middle East—North Africa (MENA) region (after Saudi Arabia and Iran), and 30th

in the world.

There are various deviating estimates regarding the actual growth rate of the nation’s GDP,

however all available statistics indicate that the UAE currently has one of the fastest growing

economies in the world. According to a recent report by the Ministry of Finance and Industry,

nominal GDP rose by 20.8% in 2012 to $360 billion, compared with $298 billion in 2011.

Although the United Arab Emirates is becoming less dependent on natural resources as a source

of revenue, petroleum and natural gas exports still play an important role in the economy,

35

especially in Abu Dhabi. 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.[10] The UAE is a member of the

World Trade Organization.

With almost US$ 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.

In U.A.E, especially in Dubai, financial crisis happened during the year 2007-2010.In 2009its

economy shrank by 4, but their overseas investment is expected to support its full economic

recovery. But property prices fell dramatically because the government construction company

sought to delay a debt payment. 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 Dubailand, 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

36

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.

The UAE economy will be more sluggish in 2012 compared to last year but its growth will still

be stronger than struggling nations in the 'fragile' west, according to a new report by Standard

Chartered.

With political turmoil in the region boosting Abu Dhabi's oil industry and benefiting Dubai's

trade, tourism and retail sectors, a 'flight to safety' effect helped the UAE grow at a 3.8% clip in

2011, the bank said in its latest economic forecast released yesterday. However, while these

factors are expected to continue to drive the country's economy in 2012, growth is likely to

moderate to 2.4% this year due to a more challenging global environment, the bank predicted.

Abu Dhabi is expected to outpace Dubai with growth of 3.0%, supported by a cautious

resumption of spending in H1, followed by an acceleration in H2, as project reviews initiated in

2011 are completed. Dubai will see growth of 2.4%, with its tourism and retail sectors expected

37

to remain the primary factors in the emirate's recovery. Hotel occupancy averaged 70-80% on

average last year, nearing 100% during peak periods, as tourists turned their backs on less stable

Middle East destinations, the report noted.

Inflation in the UAE is expected to average 1.6% in 2012, in comparison with a 2% forecast for

2011. Prices fell 0.1% y/y in October, the first month of deflation in 20 months. Housing makes

up 39.3% of the inflation basket, dragging on overall inflation last year. Standard Chartered

expect this to continue in 2012 given the significant and continued overcapacity in the UAE

housing market.

Although the UAE is forecast to grow at a slower pace in 2012, its outlook is more positive than

struggling nations in the west. The bank predicts a two-speed global economy this year, with an

ailing Europe and North America, relative to a more robust Asia, Africa, Middle East and Latin

America. The world economy cooled down from strong 4.3% growth in 2010 to around 3% in

2011, but the international banking group expects a more significant slowdown in 2012, due to

the crisis in the West, with a predicted 2.2% growth for the whole year.

38

SOCIAL ASPECT

Population

The United Arab Emirates has approximately 4.1 million people (2006 estimate) from all over

the Arab world, Asia, Europe, Africa and America live. Approximately 80% of the population is

non-UAE nationals.

Language

The official language of the UAE is Arabic though other languages like English, Hindi and Farsi

are also spoken

Religion

The religion that the majority of the population has is Islam but Christianity, Hinduism, etc. are

also found, which is widely practiced by Emirati nationals as well as expatriates originating from

other Arab countries, Pakistan, Africa and India, amongst others. The UAE is tolerant of other

religions and residents and visitors who profess a different faith are entitled to perform their

religious duties.

Rituals and holy places

The main Muslim religious ritual is prayer five times a day. This requires wodou (ablution) for

purification. Usually people go to the nearest mosque or pray at home. The rituals involved in the

pilgrimage ( Haj ) to Mecca are the most elaborate. One must remove the shoes before entering a

mosque. In large mosques, there are separate areas for women.

Food

Before the 1960s, food consisted mainly of fish, rice, bread, dates, yogurt, homegrown

vegetables, and meat from sheep, goats, and camels. The diet has improved in quality and

variety, with modern supermarkets offering imported foods.

Lunch is the main family meal and is eaten at home at around two o'clock. It usually consists of

fish, rice, meat, and a vegetable dish. Many Emiratis prefer the traditional style of eating with the

39

right hand. There are strict Muslim taboos against pork and alcohol, and meat must be

slaughtered according to the Islamic halal method.

Emiratis are known for their hospitality; they feel honored when receiving guests and socializing

with friends and relatives. Guests are welcomed with coffee and fresh dates. Incense is passed

around so that guests can catch the fragrance in their headwear. With the immigrant population

have come restaurants offering a wide variety of ethnic foods, and fast-food restaurants have also

become popular.

Classes and Castes

Emirati society is divided into two social categories: the nationals ( Al-Muwateneen ) and the

foreign immigrants, referred to as the incomers ( Al-Wafedeen ).Citizens are subdivided into

four main social classes:

(1) The ruling sheikh families, whose members hold the highest political positions and power

and have immense wealth and prestige.

(2) The merchant class, known as al-tujjar , traditionally pearling merchants who now sell

international consumer goods.

(3) The new middle class, represented by increasing numbers of professionals who have

benefitted from Free State education.

(4) The low-income groups represented by newly settled Bedouin nomads and former pearl

divers and oasis farmers.

Among the immigrants there are hierarchical groups that receive different economic and social

rewards:

(1) Top professionals and technocrats with international contracts, who earn high salaries and

other benefits.

40

(2) Middle-range professionals such as school teachers, skilled technicians, and company

salesmen.

(3) Low-paid semi-skilled and unskilled workers, primarily Asian. In general, nationals are a

privileged minority, and benefit from state laws and business regulations.

Time Difference

GMT +4 four hours

Water and electricity

The electricity supply is 220/240 volts at 50 Hz. British-style square, three-pin sockets are

standard. Most hotels can supply adapters but visitors should bring one just in case.

Tap water is safe to drink, but if you prefer the taste of bottled water, locally bottled mineral

water is readily available in supermarkets and grocery stores everywhere.

Symbols of stratification

The symbol of a male national as a distinct social category is seen most visibly in the traditional

dress of a white robe ( kandoura ) and white head cloth ( ghutrah ) with a black rope ( aqal ).

Men grow short beards and mustaches.

In general, nationals are a privileged minority, and benefit from state laws and business

regulations. An old fortress surrounded by modern buildings in Abu Dhabi. After1960, mud-

walled communities transformed into commercial centers.Women wear long dresses with a head

cover ( hijab ) and black cloak ( abayah ).

Currency

The currency used in the United Arab Emirates is called the Dirham and is abbreviated as Dh,

Dhs or AED. The sub unit of a Dirham is a fil and 100 fils equal 1 Dirham. The Dirham is tied to

the US Dollar at a steady exchange rate of US$ 1 = AED 3.6 though banks, hotels, and airports

normally exchange it at 3.5.

41

Work Week

The official weekend in the UAE is on Friday and Saturday. Some smaller private companies

only close on Friday. Government offices open at 7.30 a.m. and close at 3.00 p.m. Private offices

tend to keep longer hours, adopting either “straight shift” or “split shift.” The former normally

requires eight working hours beginning between 7:30am and 9:00am with a lunch break lasting

30 minutes to an hour. The latter involves commencing between 9:00am and 10:00am and

ending between 8:00pm and 9:00pm, with a three- to four-hour break in between.

Celebrations

Secular Celebration

The UAE national day, 2 December, is the most important secular celebration. Cities are

decorated with colored lights, and folklore troops perform in heritage villages. 1 January is a

holiday but is not celebrated by nationals. Expatriate communities celebrate their own religious

and secular holidays.

Supports for the Art

The state generously supports writers, painters, actors, and folk dancers. Sharjah is particularly

active in promoting culture and was chosen by UNESCO as the Arab Cultural Capital in 1998.

Literature

The oral tradition remains strong, particularly storytelling and poetry, and most state events are

accompanied by poetry readings. Written literature is increasing in popularity.

Performance Art

Conservative elements of the society still impede women's participation in performance arts. In

1999, the first college for theater arts opened in Sharjah. Emiratis rely on theater and television

programs produced in other Arab countries.

42

Child Rearing and Education

Children are showered with care, affection, and physical contact. They are raised to be respectful

toward their parents and elders and grow up to be skilled in interaction with a large number of

relatives. Up to age 5, a child is referred to as jahel("the one who does not know"), and there is a

tolerant attitude toward children's behavior. Most families employ maids to share child

caretaking, and this has introduced a foreign cultural element to child socialization, although a

maid's influence is viewed as negative. The school system has undertaken a greater role in

children's socialization, significantly reducing the family's role in this process.

Higher Education

The government views higher education as a major instrument for development. The UAE has

one of the highest ratios of students entering higher education in the world. There are seven

universities and eleven higher colleges of technology.

Etiquette

Social customs are shared throughout the Gulf Arab countries. An Islamic greeting ( al-salam

alaykom )is the most appropriate, and men follow this with a quick nose-to-nose touch while

shaking hands. Women greet each other by kissing several times on both cheeks. Men normally

do not shake hands with women in public. It is customary to ask about the health of a person and

his or her family several times before beginning light conversation. Refreshments usually are

served before serious matters are discussed.

It is customary not to use first names but to say "father or mother of (oldest son)." Respect and

courtesy are shown to elders and in their presence young men are expected to listen more and

speak less. Sex segregation is still evident in social life. Men are entertained in majlis(large

living rooms, often with a separate entrance), while women entertain friends in the home. It is

customary to take off one's shoes before entering a private house.

43

Medicine and Health Care and Health Care

Before 1960, there were few hospitals, and the population relied on traditional folk medicine.

Cautery, bloodletting, and the use of herbs were common, and a religious teacher ( muttawe )

dealt with cases of mental illness. Life expectancy was around forty-five years. Today Emiratis

have a free modern.Health care system includes numerous hospitals, primary health care

centers, and private clinics staffed primarily by immigrants. With improved diet and health care,

life expectancy is now seventy-two years, and there has been a reduction in infant mortality. The

extended family provides its sick members with support in the form of frequent hospital visits,

and traditional medical practices are still used to deal with mental illnesses.

Income Tax

The UAE does not have any enforced federal income tax legislation for general business. Each

emirate has enacted income tax decrees, but in practice, the enforcement is restricted to foreign

banks and oil companies. Personal incomes, including all forms of salary and capital gains, are

not subject to taxation in any emirates.

Other Local Taxes

Municipal taxes are levied in most Emirates on annual rental paid at 5 per cent for residential

premises and 10 per cent for commercial premises. Other local taxes include a 5 per cent tax on

hotel services and entertainment.

AGRICULTURE

It includes fishing which was a minor part of the UAE economy in the early 1990s, contributing

less than 4 percent of GDP. Since the formation of the UAE, the availability of capital and the

demand for fresh produce have encouraged agricultural development. The main farming areas

are Diqdaqah in Ras al Khaymah, Falaj al Mualla in Umm al Qaywayn, Wadi adh Dhayd in

44

Sharjah, Al Awir in Dubayy, and the coastal area of Al Fujayrah. Total cultivable land is around

160,000 hectares.

Most of the UAE's cultivated land is taken up by date palms, which in the early 1990s numbered

about 4 million. They are cultivated in the arc of small oases that constitute the Al Liwa Oasis.

Both federal and amirate governments provide incentives to farmers. For example, the

government offers a 50 percent subsidy on fertilizers, seeds, and pesticides. It also provides loans

for machinery and technical assistance. The amirates have forty-one agricultural extension units

as well as several experimental farms and agricultural research stations. The number of farmers

rose from about 4,000 in the early 1970s to 18,265 in 1988.

Between 1979 and 1985, agricultural production increased sixfold. Nevertheless, the UAE

imported about 70 percent of its food requirements in the early 1990s. The major vegetable

crops, supplying nearly all the country's needs during the season, are tomatoes, cabbage,

eggplant, squash, and cauliflower. Ras al Khaymah produces most of the country's vegetables. In

addition to dates, the major fruit crops are citrus and mangoes. A vegetable canning facility in Al

Ayn has a processing capacity of 120 tons per day.

Poultry farms provided 70 percent of local requirements for eggs and 45 percent of poultry meat

needed in 1989. Local dairies produced more than 73,000 tons of milk in 1991, meeting 92

percent of domestic demand.

Considerable revenues have been devoted to forestation, public landscaping, and parks. Trees

and shrubs are distributed free to schools, government offices, and residents. Afforestation

companies receive contracts to plant plots in the range of 200 to 300 hectares. The goals are to

improve the appearance of public places as well as to prevent the desertification process in

vulnerable agricultural areas

Only about 81,000 hectares (200,000 acres) of land are cultivated. About 24% of cultivated land

is used to grow vegetables, 30% fruit, 10% feed crops, and 36% for other uses. The most

productive region is Ra's al-Khaimah, which receives underground water supplies from the

45

nearby mountains of Oman and which enjoys the most plentiful rainfall. The main crops are

tomatoes, melons, and dates.

The Digdagga Agricultural Trials Station in Ra's al-Khaimah is central to all agricultural

research and training efforts in the UAE. Abu Dhabi has two large wheat farms at Al 'Ayn, and

experimental farms at Rawaya and Mazaid (near Al 'Ayn) are designed to encourage local

Bedouins to take up settled farming. The Abu Dhabi Arid Land Research Center on Sadiyat

Island produces vegetables through special irrigation and hydroponic techniques. In 1999, UAE

agriculture produced 1,055,000 tons of vegetables and melons, and 358,000 tons of fruit.

Produce includes citrus, mangos, tomatoes, celery, potatoes, cucumbers, lettuce, melons,

peppers, and fodder crops.

The Ministry of Agriculture and Fisheries reported a 48% increase in vegetable production

between 1992 and 1995. Dates, traditionally grown on oases by nomads, are becoming less

important because of vegetable and fruit production. In 1999, the UAE produced 295,000 tons of

dates. The UAE currently satisfies about 60% of its domestic fruit and vegetable demand; bans

on imports of certain vegetables and government incentives and subsidies are used to encourage

domestic production. Roses and chrysanthemums are grown for export to Europe.

Lack of arable land, intense heat, periodic locust swarms, and limited water supplies are the

main obstacles to agriculture. The drive to increase the area under cultivation has resulted in the

rapid depletion of underground aquifers, resulting in precipitous drops in water tables and serious

increases in soil and water salinity in some areas. As a result, several farms have been forced to

cease production.

TECHNOLOGY

Technology is so advanced in the U.A.E as compared to India and the ranked top in the world.

Twisted building are there which can mould in 360 degree.Burj Khalifa — The World's Tallest

Tower. The tower accomplished a world record for the highest installation of an aluminum and

glass façade, at a height of 512 meters. Etisalat tower is the 14th largest mobile network operator

in the world, with a total customer base of 100 million

46

The UAE has been spending billions of dollars on infrastructure and is the biggest projects

market in the region, accounting for 37 percent of total project value within the construction, oil

and gas, petrochemicals, power and water and waste sectors. Many huge investments have been

poured into real estate, tourism and leisure.

It has Dubai as its hub, and flies to over 100 destinations across six continents. The airline was

the eighth-largest airline in the world in terms of international passengers carried, and fifth-

largest in the world in terms of scheduled international passenger-kilometres flown in 2008.

The Dubai Mall is the world's largest shopping mall based on total area and sixth largest by gross

leasable area. The Dubai Aquarium and Discovery Centre earned the Guinness World Record for

the world's "Largest Acrylic Panel" (32.88 m wide × 8.3 m high × 750 mm thick and weighing

245,614 kg).

The Dh15.5 billion (US$4.2 billion) Dubai Metro project includes a 52-kilometre Red Line

viaduct, which stretches the length of Sheikh Zayed Road between Al Rashidiya and Jebel Ali

and was opened in September 2009 after round-the-clock work for three years. The Red Line

when fully complete will carry an estimated 27,000 passengers per hour in each direction on 42

trains. Work also on the Green Line, which will link Al Qusais to Dubai Healthcare City, began

in 2006 and is scheduled for completion in late 2010. In Abu Dhabi plans are underway for all a

metro system and also a country-wide national railway, which will connect all the major cities

and is later to connect to the GCC wide network. The cost for the railway will be between

Dh25bn and Dh30bn, and will be a total length of 1,100 kilometres, connecting Ghuwaifat,

bordering the Kingdom of Saudi Arabia, in the west and the border with the Sultanate of Oman

in the east.

The Federal Electricity and Water Authority (FEWA) is the body responsible for overseeing

federal utilities, whilst authorities3 in individual emirates, including Abu Dhabi Water and

Electricity Authority (ADWEA), Dubai Water and Electricity Authority (DEWA) and Sharjah

Water and Electricity Authority (SEWA), oversee power and water generation in their individual

emirates. The UAE plans to build 68 rechargeable dams in the coming five years to augment the

47

114 dams in existence, all but two of which are rechargeable, to help with providing for the

growing population.

48

49

Introduction

India is the land of agriculture. 1797080 sq. km land is available in India, approximately 60%

cultivable land is available for India during the latest World bank Indicator. As India’s

production is more than the consumption pattern. As temperature, fertility, atmosphere, humidity

are stable and favoring the India in the growth of food Items. So there are huge exporting

opportunities for India.

As UAE is having 8360000 hector land is available for India, out of which only 1% land is

available for harvesting. As UAE’s population is also increasing at a stable rate and their

production is decreasing. As UAE’s temperature is very hot, this is not favorable to grow food

items. Rain, atmosphere and humidity are not stable, so there is no scope for the UAE to grow

food grains in UAE. As

As UAE is a land of Sheikh, so they are very rich and enjoying the luxurious life and so their

consumption food is also high, which leads to exporting from other countries. As last year food

consumption was valued to 26.5Dh billion in 2012 and which roses to 34.8 Dh billion in 2016.

As Per capita food consumption is 3527Dh which increases to 4156Dh in 2016. So they had to

export the food items from the other countries. As UAE’s import of prepared foods and

beverages have increased by 17.8% from 8.76billion Dh to 12.28Dh billion in 2014. As due to

healthy competition Indian prices is ruling at a low price and the quality of the food item is also

increasing from last previous year, So UAE is exporting the food grains from the India. India is

having the major exporter in food grains in UAE with 10.5% share which is good for India and

should try to increase the export from other competitive countries.

PESTEL Analysis of food grains between UAE and India

POLITICAL FACTOR:

UAE is having only 8360000 hector of land area is available out of which only 1% land

is available for harvesting. So, the UAE has to import food grains from other countries in

the bulk quantity to sustain their lives.

50

So there is no political restriction of importing food grains from other countries in UAE.

There is having liberal policy for importing the food grains from other countries.

So there is tremendous increase in import food products from 2007-12 except product of

non-basmati rice because from the feedback of the market says that non-basmati rice last

longer for only 10 days so the government of UAE ban non-basmati rice.

So there is shortage of rice in UAE and food crisis and inflation rate increase to 11%.

ECONOMICAL FACTOR:

As last year food consumption was valued to 26.5Dh billion in 2012 and which roses to

34.8 Dh billion in 2016. As Per capita food consumption is 3527Dh which increases to

4156Dh in 2016. So they had to export the food items from the other countries. As

UAE’s import of prepared foods and beverages have increased by 17.8% from 8.76billion

Dh to 12.28Dh billion in 2014.

As there is increase in population of UAE so there is increase in demand of food

products. So they have to import the food grains, non-vegetarian items and other food

products from the other countries.

They prefer import food products more than locally processed food products because they

are unable to produce the good quality of foods in their country because of scarcity of

resources.

As there is increase of import of food products in each year except in 2008 because of

world recession. As India does not having adequate supply to export the food grains so

India is unable to export the food grains to UAE. The products which affected are fruits

and vegetable, milled products and wheat.

As in India because due to shortage of wheat, so government did not able to export wheat

to other countries in 2008-09.

51

SOCIAL FACTOR:

The United Arab Emirates has approximately 4.1 million people. 80% of the population

is non-UAE nationals. So they prefer to import food products rather than their local food

products. As they does not having adequate resources to produce the good quality of food

products, so they are importing the food products from India and other countries.

As there routine consumption is fish, rice, fruit, vegetables, cereals, pulses, meat. As

India is exporting all food products to UAE in maximum quantity than other countries.

As the people are used to do the business of Gold from the years, so they are not

interested in doing the farming activity.

TECHNOLOGICAL FACTOR:

As hydroponics technology is used in India, so it means the process of growing plants in

sand, gravel, or liquid, with added nutrients but without soil.

So through which vegetables, flower, cereals, pulses, rice, wheat are producing in less

time and require less water, less pesticide.

Breeding technology should also be used to increase the quality of dairy products and

food products.

ENVIRONMENTAL FACTOR:

As climate in UAE is vivid, so it is not suitable for vegetable products to grow in this

country. As there is having scarcity of water in UAE, so it is not possible to have the

farming business in that country.

As there is 1% land for harvesting so that they cannot produce the food products. As most

of the land is covered by the desert so it is not possible to have fertile land in the UAE.

52

As they cannot produce and does not have suitable climate for vegetable, tea, coffee, rice

etc.

As India is having harvesting land and suitable climate for producing the food products.

India is having large source of fishing and so they are exporting fish to UAE in large

quantity.

LEGAL FACTOR:

As UAE tariffs are low and they are having the free zones foreigner may own up to 100%

equity in an enterprise and each free zone offers special incentives to attract tenants, such

as no taxation for many years, subsidized energy rates and full repatriation of capital and

profits.

As legal factor are liberal in UAE because of low production of food products.

UAE is having ban on import organic fertilizer.

They have also ban of tobacco products.

Ban of qat leaf, beetle or nuts and poppy seed.

They ban non basmati rice from March 2012.

As they ban 98% of food product from Europe countries because of having E-colin

bacteria which killed many people in Europe.

Strength of India in UAE with concern to food items:

As India is exporting to foodgrains to UAE with low price with assured quality.

India is exporting food items to UAE in bulk quantity

As 150 million tones food grains is exporting to UAE from India in 2012-13.

India is exporting the Basmati rice worth Rs 15,449.61 crores during 2011-2012 with 31,

78, 174, 42 metric tons.

53

India is the major exporting to UAE related to Vegetable, fruits, Cereals and spices with a

large quantity.

As India is also exporting the live animal to UAE in large quantity because of the culture

of UAE.

Opportunities for India in UAE

Pour Non-basmati rice should be export to UAE. So that it cannot be spoiled in 10 days

and it can remain for long time and also cheap in cost as compare to Basmati rice. It will

be profitable for India because they are eating Non Basmati rice in great quantity and we

are having large quantity of stock of Non basmati rice.

Increase export of tea because consumption of UAE had increase to 85%. India is the

second largest producer of tea in the world, so it will be the great opportunity for India to

export the varieties of tea to UAE in bulk quantity and can get huge profit.

As they ban cucumber from Europe countries because of having E-colin bacteria India

has great opportunity to export good quality of the cucumber to UAE as India has good

quantity of cucumber.

Dairy products should be exported more because of increase in demand of dairy products.

AMUL is the largest factory in producing the dairy products in Asia. So India can export

the best quality of dairy products to UAE.

India should also increase to export hybrid seeds. The seeds which require less quantity

of water to UAE so it will be useful to the UAE for producing the food grains in large

quantity.

54

EXPORT STATEMENT OF INDIA TO UAE (IN CRORES)

2007-08 2008-09 2009-10 2010-11 2011-12 EST

Qty Value Qty Value Qty. Value Qty. Value Qty. Value

3985.8 32.4558 3609.978 28.7443 4574.18 38.9233 5462.158 84.4779 5571.40116 86.16746

672.1 6.968 874.4554 8.5813 971.477 12.0679 1044.042 15.7911 1064.92253 16.10692 111791.94 93.0631 113128.2 83.7356 124866 92.0608 179188.5 151.2303 182772.282 154.2549

24481.6 32.7964 24789.58 30.3888 28246.48 34.7997 35867.94 55.9013 36585.2987 57.01933 834.33 13.1859 760.6508 12.5086 683.3528 14.8811 658.0678 15.3439 671.229156 15.65078

7871.63 14.3676 6952.403 11.6493 9048.858 16.6543 10277.91 18.4522 10483.4727 18.82124 3481.79 13.7657 5114.064 16.6985 7026.483 27.8993 11166.71 39.2496 11390.0456 40.03459

19408.22 22.2651 17804.05 22.3015 20584.1 29.3371 20744.03 33.3372 21158.9064 34.00394

7590.1683 25.3396 9465.906 29.5581 16184.44 47.3343 15442.37 55.1278 15751.2172 56.23036 11636.9292 31.4587 12461.41 41.0436 17499.72 47.3512 20388.62 65.7579 20796.3886 67.07306

8589.1338 31.6654 11004.01 37.57 13953.58 48.1273 16784.31 66.0582 17119.9926 67.37936 19860.6434 42.3241 34708.42 76.6805 57426.54 142.3578 32179.2 100.1845 32822.787 102.1882 44696.2204 199.7801 43911.09 230.6876 59791.89 341.8441 64234.49 417.521 65519.1822 425.8714

2186.6689 14.3507 1173.184 10.5651 933.0763 10.4481 712.6015 8.1965 726.85353 8.36043 53979.6621 26.312 36106.78 20.9027 18965.57 21.7854 92414.42 41.067 94262.7039 41.88834

1159.3894 11.3243 5480.808 46.6297 7766.945 71.7964 4860.844 51.3695 4958.06119 52.39689 95.2692 1.6159 71.8549 1.6432 146.3566 2.2763 56.6774 1.2363 57.810948 1.261026

128.1969 0.9919 176.761 1.2285 33.2852 0.3159 107.2513 0.884 109.396326 0.90168 905.359 8.8517 1368.021 8.8751 2180 15.1086 1057.628 7.9196 1078.78056 8.077992

22894.2116 70.759 23030.03 71.1126 24706.93 66.7797 32685.72 103.7998 33339.439 105.8758 15672.9651 66.027 17069 89.6324 24273.39 136.3999 24609.57 146.3527 25101.7581 149.2798

38351.7225 43.0924 4807.118 10.5235 13935.59 29.5841 59271.66 113.5498 60457.0937 115.8208 219.4881 2.0995 300.729 3.5958 279.1217 2.8379 375.83 4.5604 383.3466 4.651608

6015.7955 31.4223 6734.408 37.9652 9994.482 51.2148 140408.1 60.1523 143216.273 61.35535

3765.3317 14.1206 3997.304 15.3062 6446.427 15.236 3741.098 15.1593 3815.92037 15.46249

8482.7626 27.3429 7071.724 30.1795 6448.87 29.3501 7500.545 29.0745 7650.5559 29.65599

55

70948.2007 46.2735 18286.61 19.6053 6617.191 8.4084 9092.821 12.467 9274.67783 12.71634 100291.798 259.0965 151188.6 367.107 151653.3 395.603 481285 551.6004 471659.26 540.5684 343273.961 282.7422 469964.2 512.8526 379808.2 413.1621 135942.9 363.0653 138661.802 370.3266 532100.468 310.8495 261214.6 189.7766 97002.52 72.4789 6062.317 4.5955 6183.56365 4.68741 78548.9458 51.6815 153143.1 103.1979 73737.71 58.9966 94935.78 77.9025 96834.4928 79.46055

56

ESTIMATED(TREND)

57

Number of countries exporting food items to UAE

Cereal First Second Third Fourth Fifth Millet India Nigeria Niger Mali China Rice China India Indonesia Bangladesh Vietnam

Wheat China India United States Russia France

Maize United States China Brazil Mexico Indonesia

Barley Russia France Germany Ukraine Canada Rye Russia Poland Germany Belarus Ukraine

Sorghum United States India Mexico Sudan Argentina

Vegetable Largest producer Second Largest Producer Dry Bean India Brazil Onion and Garlic China India Cabbage China India Green bean China Indonesia Chick peas India Pakistan Pulses India Mozambique Cauliflowers and Broccoli China India Brinjal China India Potato China India Tomato China United States Spinach China United States Cassava Nigeria Thailand Soybean United States Brazil Carrot China Russia Cucumber China Iran

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Fruit Largest Producer Second Largest Producer Apricot Turkey Iran Banana India China Mango India China Coconut Philippines Indonesia Sugar cane Brazil India Grapes China Italy Oranges Brazil United States Papaya India Brazil Peach China Italy Apple China United States Pineapples Philippines Thailand Almond United States Spain Sweet Potato China Tanzania Lemon Mexico India Raspberry Russia Poland Stone fruits Iran China Strawberry United States Spain Blueberry United States Canada Kiwifruit Italy New Zealand Currant Russia Poland Date Egypt Saudi Arabia Cherry Turkey United States Avocado Mexico Chile

Nut Largest Producer Second Largest Producer Almond United States Spain Cashew nut Vietnam Nigeria Chestnut China Turkey Hazelnut Turkey Italy Pistachio Iran United States Sheanut Nigeria Mali

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Spice Largest Producer Second Largest Producer Cinnamon Indonesia China Cumin India Turkey Ginger India China Pepper Vietnam India Chili pepper India China Cloves Indonesia Madagascar Nutmeg Indonesia Grenada Saffron Iran Spain Vanilla Indonesia Madagascar Turmeric India Pakistan

PORTER’S FIVE FORCES MODEL

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Rivalry:

The rival countries are United States of America, China, Thailand, France, United Kingdom.

United States having the stake of 8.5%, United Kingdom having stake of 5.4%, Thailand having

stake of 5.3%, France having stake of 5% and china having stake of 9%. India is having a major

stake of 10.5% in UAE because of low price and good quality. India need to constantly

improving its standards and quality to reduce the threats from its rivalries.

New entrant threat:

Level of local producers is increasing and they are also getting different incentives and

subsidiaries from the government. Government also making committees of these local producers

to help them to growing their business and reduces their fiscal deficit. They are producing food

items so they have better opportunities to give cut throat competition to the major importing

countries.

Substitute:

China is the major competitor of India for exporting food grains to UAE. They are also having

the same atmosphere and climate like India. They are also producing the same product for

exporting. The efficiency of china is far better than India in comparison to quality and low price.

India should try to export dairy products to UAE as there are very less availability of pet

elements like cows, buffaloes, goats because the consumption of dairy products is tremendously

increasing in UAE.

Bargaining power of supplier:

As India is the major exporter of rice, spices, fruits and vegetables to UAE. As because due to

low price and assured quality of food items. The bargaining power of suppliers of India to UAE

is comparatively high. As major stake of exporting the food items is also high in UAE from India

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up to 11%. As China is also having the major stake in exporting the food items to UAE in large

quantity. So India should try to maximize the bargaining power.

Bargaining power of buyers:

Bargaining power of buyer in UAE is low because production of food items is low and

consumption level is very high. The average consumption level of food is 26.5Dh billion which

increases 34.8Dh billion which is very large amount. India is the major exporting food items so

bargaining power of buyer is low in UAE.

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OVERVIEW OF UAE TEXTILE INDUSTRY

• The Textile industry occupies an important place in the UAE economy as a whole and

particularly in Dubai, because of its contribution to the industrial output, employment

generation and foreign exchange earnings.

• The textile industry is one of largest employment provider in the industrial sector of

Dubai. The contribution of the textile industry to total export earnings was about 9.7 per

cent in 2012

• The textile industry is considered a large employer in the industrial sector, ranks second

after the manufacturing of metal products, machinery and equipment. It employs both

skilled and unskilled labor and the low-cost skilled textile workers are experienced in

textile technology.

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• The textile industry has small value added at each stage of processing because it is not

fully a self -reliant industry from the production of raw materials to the delivery of final

products.

• The textile and clothing manufacturing industry of UAE has been mainly dependant on

imported raw materials from different destinations. About 91.5 per cent of the raw

materials are imported and 8.5 per cent are sourced from the local market.

Religion:

• The vast majority (approximately 96 percent) of the UAE’s citizens is Muslims;

approximately 85 percent of Muslims are Sunni and 15 percent, Shia. The

government funds or subsidizes almost 95 percent of Sunni mosques and employs all

Sunni imams.

• The UAE’s constitution declares that Islam is the official religion of all seven of the

constituent emirates of the federal union. Muslims are expressly prohibited from

converting to other religions, but conversion by non-Muslims to Islam is viewed

favorably.

• During Ramadan, all residents and visitors are required to abide by restrictions imposed

on Muslims. Islamic studies are mandatory for citizen children attending public schools

and for Muslim children attending private schools.

Climate of the country:

The climate of the United Arab Emirates is very hot and dry due to the surrounding

area. The geographical area covered by the country is very arid in nature and is

largest portion of the land is covered with the dessert.

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It is one of the biggest factor of that enhances the textile industry to export the

product in the cotton industry.

The highest temperature is calculated during the day time is 50 degree and also due

coverage the Persian gulf the atmosphere during evening time is 15 degree which

is enjoyed by the citizen of the countries. The overall temperature of the countries

is very dry and hot.

OVERVIEW OF INDIAN TEXTILE INDUSTRY

Back Ground:

• India Textile Industry is one of the leading textile industries in the world. Though was

predominantly unorganized industry even a few years back, but the scenario started changing

after the economic liberalization of Indian economy in 1991.

• The opening up of economy gave the much-needed thrust to the Indian textile industry, which

has now successfully become one of the largest in the world.

• India textile industry largely depends upon the textile manufacturing and export. It also plays

a major role in the economy of the country. India earns about 27% of its total India textile

industry is also the largest in the country in terms of employment generation.

Indian textile industry can be divided into several segments, some of which can be listed as below:

• Cotton Textiles

• Silk Textiles

• Woolen Textiles

• Readymade Garments

• Hand-crafted Textiles

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• Jute and Coir

Current Scenario

• The Indian textile industry contributes about 14 per cent to industrial production, 4 per

cent to the country's gross domestic product (GDP) and 17 per cent to the country’s

export earnings.

• The industry provides direct employment to over 35 million people and is the second

largest provider of employment after agriculture.

• Fabric production rose to 60,996 million sq meters in FY 2011 from 52,665 million sq

meters in FY 2012

• Production of raw cotton grew to 32.5 million bales in FY11 from 28 million bales in

FY12, while production of man-made fibre rose to 1,281 million kgs in FY11 from 1139

million kgs in FY11. Production of yarn grew to 6,233 million kgs in FY11 from 5,183

million kgs in FY11.

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Company Business Areas

Welspun India Ltd Home textiles, bathrobes, terry towels

Vardhman Group

Yarn, fabric, sewing threads, acrylic fiber

Alok Industries Ltd

Home textiles, woven and knitted apparel

fabric, garments and polyester yarn

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Raymond Ltd

Worsted suiting, tailored clothing, denim,

shirting, woolen outerwear

Arvind Mills Ltd

Spinning, weaving, processing and garment

production

(denims, shirting, khakis, knitwear)

Bombay Dyeing & Manufacturing

Company Ltd

Bed linen, towels, furnishings, fabric for suits,

shirts, dresses

and saris in cotton and polyester blends

Opportunity for India :

• It may be said that countries like China, USA, India, Pakistan, Uzbekistan and Turkey

have resource based advantages in cotton; China, India, Vietnam and Brazil have

resource based advantages in silk; Australia, China, New Zealand and India have

resource based advantages in wool; China, India, Indonesia, Taiwan, Turkey, USA,

Korea and few CIS countries have resource based advantages in manmade fibers.

• China is cost competitive with regard to manufacture of textured yarn, knitted yarn fabric

and woven textured fabric.

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• Brazil is cost competitive with regard to manufacture of woven ring yarn. India is cost

competitive with regard to manufacture of ring-yarn, O-E yarn, woven O-E yarn fabric,

knitted ring yarn fabric and knitted O-E yarn fabric.

• According to Werner Management Consultants, USA, the hourly wage costs in textile

industry is very high for many of the developed countries.

• From the above analysis, it may be concluded that China, India, Pakistan, Taiwan, Hong

Kong, Brazil, Indonesia, Turkey and Egypt would emerge as winners in the post quota

regime.

• The market losers in the short term (1-2 years) would include CBI countries, many of the

sub-Saharan African countries, Asian countries like Bangladesh and Sri Lanka.

• The market losers in the long term (by 2014) would include high cost producers, like EU,

USA, Canada, Mexico, Japan and many east Asian countries. The determinants of

increase / decrease in market share in the medium term would however depend upon the

cost, quality and timely Review of Indian Textiles and Clothing Industry

• The textiles and garments industry is one of the largest and most prominent sectors of

Indian economy, in terms of output, foreign exchange earnings and employment

generation.

• Indian textile industry is multi-fiber based, using delivery. In the long run, there are

possibilities of contraction in intra-EU trade in textile and garments, reduction of market

share of Turkey in EU and market share of Mexico and Canada in USA, and thus provide

more opportunities for developing countries like India.

Critical Factors that Need Attention:

• India is one of the major producers of cotton yarn and fabric, the productivity of cotton as

measured by yield has been found to be lower than many countries. The level of

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productivity in China, Turkey and Brazil is over 1 tone, while in India it is only about 0.3

tone.

• In the manmade fiber sector, India is ranked at fifth position in terms of capacity.

• Apart from low cost labour, other factors that are having impact on final consumer cost

are relative interest cost, power tariff, structural anomalies and productivity level

(affected by technological obsolescence).

• A study by International Textile Manufacturers Federation revealed high power costs in

India as compared to other countries like Brazil, China, Italy, Korea, Turkey and USA.

• Percentage share of power in total cost of production in spinning, weaving and knitting of

ring and O-E yarn for India ranged from 10 percent to 17 percent, which is also higher

than that of countries like Brazil, Korea and China.

• Percentage share of capital cost in total production cost in India was also higher ranging

from 20 percent to 29 percent as compared to a range of 12 to 26 percent in China.

• In India, very few exporters have gone in for integrated production facility. It is noted

that countries that would emerge as globally competitive would have significantly

consolidated supply chain. For instance, competitor countries like Korea, China, Turkey,

Pakistan and Mexico have a consolidated supply chain.

• In contrast, apart from spinning, the rest of the activities like weaving, processing, made-

ups and garmenting are all found to be fragmented in India.

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• Besides, the level of technology in the Indian weaving sector is low compared to other

countries of the world.

• The share of shuttle less looms to total loomage in India is 1.8% as compared to

Indonesia (10%), Bangladesh (10%), Sri Lanka (12%), China (14%) and Mexico (29%).

China V/S India –Comparative Analysis of their strengths

• India is famous for the quality derive approach while china has quantity dervin approach.

• India is having high costing compared to low costing so one of the way to increase the

the quality of the products.

• Lot of the specialized fabric should be import from the china and work on the technical

part of the production of the product.

• India export business is diversified across country whereas as in china around 60% of the

work is done from the hongkong , making all kind of buying meetings and buyers-

sellers fairly organized there.

• India is much capable to handle all of kind of countries and their communication due to

their skilled full English speaking workforce where china is lack behind.

• India has diversified factory in the sense: There are capable of handling small lots to bulk

lots so it is more beneficial to the country.

• India counterparts are much flexible in considering changes, alteration, last minutes

modifications with minimum or no up-charge; but Chinese counterparts are rigid or less

flexible in accepting last minutes changes.

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• India has higher labour cost due minimum wage rates set by the central and state

government. Also the prices of raw material are shooted high day by day. While china is

not behind form this high cost problem, but due to production of bulk lots, they achieve

economies of scales, they are not dependent on imports of accessories like India . So

there costs are comparatively low.

SWOT ANALYSIS:

STRENGTH

UAE is one of the largest exporters of Yarn in international market and contributes

around 25% share of the global trade in Cotton Yarn.

The Apparel Industries one of largest foreign revenue contributor and holds 12% of the

country's total export.

Textile Industry is an Independent & Self-Reliant industry.

Abundant Raw Material availability that helps industry to control costs and reduces the

lead-time across the operation.

Availability of Low Cost and Skilled Manpower provides competitive advantage to

industry.

Availability of large varieties of cotton fiber and has a fast growing synthetic fiber

industry.

OPPORTUNITIES

Growth rate of Domestic Textile Industry is 12-17% per annum.

Large, Potential Domestic and International Market.

Product development and Diversification to provide global needs.

Exclusion of Quota Restriction leads to greater Market Development.

Market is gradually shifting towards Branded Readymade Garment.

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Increased not reusable Income and Purchasing Power of Indian Customer open New

Market Development.

Emerging Retail Industry and Malls provide huge opportunities for the clothes,

handiwork and other segments of the industry.

Greater Investment and FDI opportunities are available.

PEST ANALYSIS Political factors:

The reservation for small scale companies, led substianal fragmentation that distorted the

competitiveness of the industry.

Ignore ness of the foreign investment.

Implication of the V.A.T

Formation of the national technological ungraduation of funds

Economic Factors

Textile sector accounted for 14 % of the total industrial output and 30 % of the total

export.

Expected to generate 14 million new jobs by 2013.

Indian exports are targeted to reach $50 billion by the end of the year.

Social Factors

Textile industry of India is based on cotton which is agriculture based product found in

rural areas so the social responsibility of the industry.

Social strati factions play a vital role in rural society.

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Norms and beliefs which are pre dominant in both the country are unthinkable for any

international manager.

Technology Factor

Major problem faced by textile industry ( 12th five year plan 2012-2017)

Structural weakness in weaving and processing.

Fragmented and technological backward in textile processing.

Inadequate capacity of the domestic textile machinery manufacturing sector.

Educated labour are not available in textile industry.

Top 10 export countries in cotton

Analysis:

There are basically 10 top countries of exporting in the world and having major share in the

textile industry.

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Major share of the exporting cotton in the world is dominated by China than followed by the

USA and India.

Above data are shown in the per tone of the cotton bales in the world.

Cloth Export percentage from India:

The major share of the Indian export of the cotton products are greatly done in USA and earning

huge amount of foreign exchange in return as well as some of the exchange of the products and

services of the country origin.

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Basically there are 10 countries which are listed in the Indian exports of structure for the cotton

industrial products.

There are great opportunities are still seen in other countries for the consumption of the cotton

products.

There is free trade zones in the clothing and footwear in the country so the citizens of the

countries are enjoying it fullest.

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TOURISM INDUSTRY

The United Arab of Emirates is one of the modern and developed Arab countries that were able,

within a short period, to have a clear position on the world map of tourism. UAE has all the

tourist ingredients that enable it to be one of most prominent and distinguishing tourist

destinations in the region and the Middle East. Besides, the developed infrastructure and the new

rules and regulations have contributed in providing the necessary support to set up the elevated

tourist establishments, in addition to, establish several tourist projects such as hotels, resorts and

other recreational facilities in all the emirates.

Due to its prominent geographical location, the UAE is considered as the linkage between the

East and West being located in the heart of the Persian Gulf. UAE is bordered by the gulf water

from the north and the western-north, by Saudi Arabia and Qatar from the west, by Saudi Arabia

and Sultanate of Oman from the west and by Gulf of Oman and Sultanate of Oman from the east.

Its coasts that are overlooking on the south shore of the Arabic Gulf stretch for 644 kilometers

from the peninsula of Qatar to the west till Ras Musandam to the west. Along the UAE, the

Emirates of Abu Dhabi, Dubai, Sharjah, Um Al Quawin and Ras Al Khaimah is spread while the

shore of the seventh Emirate, Al Fujairah, is spread along the shore of Oman Gulf with a length

of 90 kilometers. The UAE area is about 83,600 600 square kilometers. Thus, it occupies the

third place among the GCC countries in terms of area after Saudi Arabia and the Sultanate of

Oman.

There were a lot of tourist factors that play a decisive role in founding a prominent place to the

UAE in the global tourist industry, especially the security and stability, the strategic ans

geographic location, the distinguished weather, the enjoyment in wandering and shopping freely

and safely, as well as, the modern and developed infrastructure that ensures high-ranking

services for tourists and visitors such as airports, ports, roads network, means of

communications, transportations and other grand services.

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United Arab Emirates (UAE) was set up by joining the small kingdoms of the Middle East.

Thriving of its oil based economy; it has also emerged as one of the fastest growing and most

desirable tourist destination.

• Dubai, which is the most popular emirate of UAE, is now one of the hottest

destinations for shopping, trading and travel and tourism industry.

• Dubai's government realizes the future scope of tourism industry and has also invested

in the same so as to generate foreign cash in Dubai.

• Dubai has managed to transform into a gigantic and magnificent metropolis offering

luxury and modernity from a mere desert in few decades.

• Earnings of around AED98.6 billion in the fiscal year of 2006 are projected to reach

AED170.7 billion by the year 2016 thus playing a crucial role in the economy.

• World Tourism and Travel Council (WTTC), a regulatory and research body for world

tourism ranked UAE 18th (world rankings) considering international tourism.

• The factors which influence tourism for any country are as follows:

Infrastructure, Safety and security, Cultural and natural resources, Health and hygiene;

Air, ground and sea transport, tourism policy and rules and regulations, Information

and Communication

• The importance of tourism is clearly observable in its GDP share which is 19%, 5%

higher than the UK and 7% than the USA.

The advantages such as strong economic growth and the centralized location coupled with a very

dynamic leadership have backed the investments made by the UAE in the Tourism Industry.

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PESTEL ANALYSIS

POLITICAL FACTORS

• Each emirate has its own governmental institution.

• President: HH Sheikh Khalifa Bin Zayed Al Nahyan, Ruler of Abu Dhabi.

• Due to political stability & having federal government system the tourism is increasing

day by day.

• Also the government is spending more on infrastructure & job creation which is

attracting people to visit UAE & also to do business over there.

• It has strong economy due to stable political government.

e.g. UAE is 4th largest oil exporting country – 2395000 barrel/day due to its stable

political government while Iraq is at the 6th position as it is not having stable government.

ECONOMIC FACTORS

General

• Oil, gas and related industries account for a substantial proportion of the UAE's exports.

Other key sectors include utilities, communications, construction, banking and financial

services, manufacturing projects and tourism. These sectors tend to be located in or near

the major urban centres of Abu Dhabi, Dubai and Sharjah, and certain designated

industrial zones.

Business and Investment Environment

• Since the mid-1960s, exploitation of oil and gas reserves has enabled the seven emirates

of the UAE to achieve substantial economic growth. Economic activity centers on the

development of a modern infrastructure including roads, ports, airports,

telecommunications, electric utilities and desalination projects; the construction of

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residential and commercial facilities, schools, hospitals and hotels; and the establishment

of petrochemical and manufacturing industries.

• The UAE‘s dynamic economic environment and the economic diversification strategy,

has been made possible due to the massive investment in the infrastructure comprising of

efficient road networks, excellent telecommunications facilities and the links with the

outside world through first-class ports, both sea and air, which are constantly being

upgraded.

• The following are some of the principal features of the economic and business

environment in the UAE.

• A coordinated infrastructure that provides all essential utilities to the major centres :

Excellent communications systems which would help tourists to communicate

easily.

A virtual absence of taxation will help tourist to buy goods at cheaper rate.

A well-structured financial sector with virtually no exchange-control regulations

so easy for outsiders to use the currency.

Free-trade zones that ensure ease of registration and efficient operating facilities

International fairs and exhibitions regularly held in the UAE which would attract

tourist to visit UAE.

An attractive social environment, including modern educational, medical and

recreational facilities.

Currency

The unit of currency is the UAE Dirham (Dh), which is divided into 100 fils. The

government has fixed the UAE Dirham to the US Dollar, at an exchange rate of

approximately 3.67 UAE Dirhams to one US dollar since 1980.

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Dirham notes are issued in denominations of 1000, 500, 200, 100, 50, 20, 10 and 5.

SOCIAL CULTURE FACTORS

Benefit to local socio- cultural environment

Local community can mix with people from diverse background with different lifestyle

which through demonstration effect may lead to the development of improved lifestyle

and practices from the tourist’s example.

There can be an improvement in local life through better local facilities and infrastructure

(develop to sustain tourism) which could lead to better education, health care,

emplacement opportunities, and income.

More culture and social events available for local people such as entertainment,

exhibitions etc.

Improved sports and leisure facilities created for the tourist which local people may use,

particularly out of the tourist season.

Conservation of the local culture heritage of an area and rebirth of its craft, architectural

traditions and ancestral heritage.

Urban areas which may be in decline cab being revive and the movement of people from

rural area to urban area for employment may be resaved job will be available in the

tourism industry.

TECHNOLOGICAL FACTORS

Burj Al Arab

Innovative hotel designs and spectacular views have and continue to be created, attracting

diverse architects and talents. The growth in the hotel industry is mainly due to openings

by chained hoteliers, including local players and internationally respected brands. Burj al

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Arab is so attractive & luxuriate hotel which attract tourist from all over the world. All

reach people came to enjoy the world tallest hotel.

Etisalat Connects World's Tallest Tower

The growth in visitors in the last few years is testament to the success the UAE has

enjoyed in communicating what the country has country has to offer, with the resultant

development of scores of world-class hospitality establishments. Due to Etisalat

connection network UAE improve relationship with another country.

MasterCard PayPass

MasterCard, the world’s second biggest payments network, said that nearly two-thirds, or

70 per cent, of UAE consumers are set to travel for leisure in the coming months.

Outsider also using this card and enjoy shopping with security.

Air traffic

The Dubai International Airport has one of the best duty-free shopping malls in the

world, which is an attraction all by itself.

The airport offers a wide range of world-class services.

ENVIRONMENTAL FACTORS

The best time to visit the UAE is from October up until May.

In October the weather may still be quite hot (up to 35oC), blue skies are the norm and

the evenings are warm. At this stage the tourist season is well under way.

Daytime temperatures are ideal during November, December, January and February

(around 24oC) although the evenings may be a little cool (13oC). North-westerly winds

(shamal) sometimes blow during these winter months, bringing choppy seas.

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Most of the annual rainfall occurs between December and March, but this tends to be in

the form of short heavy downpours that rapidly clear away. Indeed some winters are

totally dry.

By March–April, temperatures are beginning to rise during the day (early 30os) but

humidity is still low and the evenings are warm. May can be quite hot again (late-30os).

LEGAL FACTORS

• It has a secular court to adjudicate criminal, civil and commercial matters.

So people from all over the world can trust the secular court to get justice, if they face

any problem over there during their tour.

E.g., in Iran there are strict Islamic laws which restrict tourism.

• Islamic courts to review family & religious matter.

So they have different courts to deal with different problems.

• Each of the 7 emirates has its own government with respective municipalities and

departments.

So this shows that legal system is reliable & easy to approach during adversity or any

problem which attracts tourist.

SWOT ANALYSIS OF UAE

STRENGTH

Free trade zones, relative ease of business start up.

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WEAKNESS

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.

THREAT

Sandstorms and dust storms occur frequently.

INCREASE IN TOURISM INDUSTRY

The tourist visit UAE for the above reasons i.e., Leisure, Business, Special

events and Cruise.

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Among the total number of tourist visiting UAE 32% visit for business purpose

while 68% visit for leisure.

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The tourist visiting for leisure are bifurcated as above. In that the maximum

number of people i.e., 27% visit for holidays while 21% visit for visiting

friends and relatives. The least number is for leisure events i.e., 3%.

Business tourist visit with maximum of 35% for business meetings and least

with 2% for education & training.

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TOTAL NUMBER OF TOURIST VISIT TO UAE FROM INDIA

702142

1E+0620112012

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The total number of people visit from India to UAE in 2011 were 702142 while in 2012 were

1250000. So there is an increase in tourist from India in 2012 compared to 2011.

WHEN TO VISIT UAE

The best time to visit the UAE is from October up until May.

In October the weather may still be quite hot (up to 35oC), blue skies are the norm and the

evenings are warm. At this stage the tourist season is well under way.

Daytime temperatures are ideal during November, December, January and February (around

24oC) although the evenings may be a little cool (13oC). North-westerly winds (shamal)

sometimes blow during these winter months, bringing choppy seas. Most of the annual rainfall

occurs between December and March, but this tends to be in the form of short heavy

downpours that rapidly clear away. Indeed some winters are totally dry.

By March–April, temperatures are beginning to rise during the day (early 30os) but humidity

is still low and the evenings are warm. May can be quite hot again (late-30os).

June–September are to be avoided, especially the July–August period which is very hot (high

40s) and humid (100 per cent). However hotels and golf clubs and other facilities offer very

good deals during the summer months and it is worth remembering that hotels, shops, in fact

all buildings, cars, buses etc are air-conditioned.

SPECIAL EVENTS

It may be liked to time the trip to coincide with one of the many special events staged in the

UAE each year. The following is a list of the more popular events but dates may change from

year to year so check before you go.

World Cup Indoor Trials January

Dubai Shopping Festival December/February

Abu Dhabi Golf Championship January

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Abu Dhabi Film Festival February

Al Ain Air Show February

Al Ain Classical Music Festival February

Dubai Desert Classic (Golf) February

ATP Men’s Tennis Open & WTA Tournament February/March

Abu Dhabi Shopping Festival March

Dubai World Cup (Horse racing) March/April

Dubai to Muscat Sailing Race March

Dubai Pro Beach Soccer Tournament April

Dubai Summer Surprises July/August

UAE Desert Challenge Motor Rally November

Dubai Film Festival December

UIM Formula One Power Boat Championships December

UIM Class One Power Boat Championships December

Dubai International Rugby Sevens December

CURRENCY

There are no currency regulations and foreign currency of almost any denomination is readily

exchanged in the UAE. The dirham (pronounced dir-ham) is the official currency of the UAE.

Dirham notes are in 5, 10, 20, 50, 100, 200, 500, and 1000 denominations. The dirham is

divided into 100 fils, coins include Dh1, 50, 25, 10 and 5 fils (10 and 5 fils are rarely used).

The prefix is also written as AED. The dirham is index linked to the dollar and the official

exchange rate is Dh3.671 = US$ 1.00. The best exchange rates for other currencies are

generally available at private moneychangers found throughout the UAE, but especially in the

more popular shop and shopping malls, where you will also find ATMs. The UAE Exchange

Centre (associated with Western Union) has branches throughout the UAE. Thomas Cook Al

Rostamani (authorized representative of Thomas Cook’s financial division) and Al Razouki

International Exchange Company are also well represented.

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CURRENCY AND EXCHANGE RATES

Currency

The dirham (pronounced dir-ham) is the official currency of the UAE. Dirham notes are in 5,

10, 20, 50, 100, 200, 500, and 1000 denominations. The dirham is divided into 100 fils, coins

include Dh1, 50, 25, 10 and 5 fils (10 and 5 fils are rarely used). The value is written in Arabic

only but Arabic numerals are easy to memorize (see section on Arabic Language).

Exchange

There are no currency regulations and foreign currency of almost any denomination is readily

exchanged in the UAE. The dirham is index linked to the dollar and the official exchange rate

is Dh3.671 = US$ 1.00. The best exchange rates are generally available at private

moneychangers found throughout the UAE, but especially in the more popular souqs and

shopping centres.

The UAE Exchange Centre (associated with Western Union) has branches throughout the

UAE. Thomas Cook Al Rostamani (authorized representative of Thomas Cook’s financial

division) and Al Razouki International Exchange Company are also well represented.

VISA AND IMMIGRATION

The good news is that the UAE authorities have taken steps to make the visa application

process as straightforward as possible. Citizens of 32 countries (i.e. GCC nationals plus

nationals of listed countries) do not require visas prior to arrival at a UAE airport and there are

efficient systems in place to simplify the application process for visitors not falling into one of

the above categories. If you are coming to work in the UAE you will require a visa that can

only be obtained on your behalf by your employer or sponsor.

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The kind of visa that you require for entry into the UAE depends on several different factors

such as your nationality, the purpose of your planned visit and its planned duration.

If you are a national citizen of a GCC country you do not require a visa to visit the UAE. You

will simply need to produce your GCC country passport upon arrival at the point of entry into

the UAE

- The following categories of visitors may receive their visit visa at the airport or other point

of entry, upon arrival:

1. AGCC Residents who are not GCC nationals but who have a high professional status such

as company managers, business people, auditors, accountants, doctors, engineers, pharmacists,

or employees working in the public sector, their families, drivers and personal staff sponsored

by them, are eligible for a non-renewable 30-day visa upon arrival at the approved ports of

entry.

2. National citizens of the following countries:

Australia, Austria, Andorra, Belgium, Brunei, Denmark, France, Finland, Germany, Greece,

Hong Kong, Iceland, Ireland, Italy, Japan, Liechtenstein, Luxembourg, Malaysia, Monaco,

Netherlands, New Zealand, Norway, Portugal, Republic of Korea, San Marino, Singapore,

Spain, Switzerland, Sweden, United States of America, United Kingdom with (Right of

Abode in UK) and Vatican will be granted a free-of-charge visa for a single visit upon arrival

in the UAE. It should be noted that this list may vary slightly from time to time and it is

therefore best to check with your local UAE embassy or the airline that you are using to fly to

the UAE prior to departure.

If you do NOT fall into one of the above categories, you will require a visa and a sponsor for

your visit. The sponsor normally applies for the visa on your behalf.

Valid sponsors may be as follows:

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a - Hotels & Tourist Companies can apply, on your behalf, for a Tourist Visa (valid for 30

days); or a Service Visa (valid for 14 days); or a Visit Visa (valid for 30 days and can be

extended for another 30 days).

b - Airlines & Airlines Handlers apply on behalf of their crew members for a 96-hour Transit

Visa.

c - Other organisations based in the UAE may only apply for Visit Visas and Service Visas.

d - Individuals (Relatives or Friends) already resident in the UAE may, subject to guidelines,

also apply on your behalf for a Visit Visa.

Visit Visa

The Visit Visa applies to tourists who wish to spend more than 14 days in UAE, those coming

for family visits as well as those on long-term business visits. It requires the sponsorship of

any UAE resident or any company or hotel licensed to operate within the UAE. A refundable

guarantee is required from expatriates who wish to sponsor distant relatives.

1. 90 Days Long-Term Visit Visa (Individuals)

2. 30-Day Short-Term Visit Visa (Individuals)

3. 30-Day Short-Term Visit Visa (Companies)

4. 90 Days Long-term Visit Visa (Companies)

Tourist Visa

The Tourist Visa is a special category of visa under the Visit Visa type. This can be obtained

for individual tourists from East and West Europe, Turkey, Bulgaria, Poland, Ukraine,

Albania, Russia, the Hellenic Republic, St Kitts-Navis, St Lucia, Mexico, Cuba, Bermuda,

Belize, Guyana, French Guiana, Martinique, Antigua and Barbuda, St Vincent, Jamaica, Palao

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other non-defined American nationalities, Thailand, South Africa, Singapore, China, Malta,

Cyprus.

The Tourist Visa entitles its holder to a 30-day stay and is non-renewable. The Tourist Visa

requires the sponsorship of hotels and tour operators who bring in visitors from the above

listed countries.

Tourist Visa for all Nationalities (Tourist companies):

Required documents:

• Clear passport copy of the sponsor

• Travel insurance

Fees:

AED 210 e-DNRD fees

AED 220 e-form fees

AED 1000 deposit, refundable upon departure of the sponsored person

Valid for 60 days from the issue date and non-renewable

Valid for 30 days from the arrival date and renewable for the similar period (30 days), upon

payment of a fees of AED 620.

Service is provided through the eDNRD eServices.

TEN REASONS FOR VISIT UAE:

1. Getaway from the winter cold

2. The Shopping and its Grand Souks

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3. A Futuristic Feeling

4. The Burj Al Arab hotel

5. Great Architecture

6. Great Beaches

7. Diverse Society

8. Hospitality

9. Nightlife with no limits

10. Huge tourist attractions

REASONS FOR INDIAN TOURIST TO VISIT UAE

The UAE economy is proving to be extremely resilient in a difficult global economic climate and

opportunities to do business in the country are many.

The UAE’s currency, the dirham, which is pegged to the US dollar, is secure and freely

convertible; there are no restrictions on profit transfer or capital repatriation; import duties are

low (less than 5 per cent for virtually all goods) and, in the case of items imported for use in the

free zones, non-existent; labour costs are competitive; corporate tax and personal taxes are nil

and numerous double taxation agreements and bilateral investment treaties are in place. In

addition, the financial risk is minimal.

These factors, combined with a strategic, accessible location for major regional markets, an

excellent reliable infrastructure and an extremely pleasant, stable and safe working environment

are key elements in attracting foreign investment.

Recently, the UAE ranked twenty-seventh among 142 countries in the Global Competitiveness

Index (2011–2012), where it was the only Arab economy categorised as innovation-driven, and

fortieth among 183 countries in the ease of doing business (Doing Business 2011); forty-seventh

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among 183 countries in the Index of Economic Freedom (2011); and twenty-eighth among 178

countries in transparency and accountability (Corruption Perceptions Index 2010). In addition,

the UAE is a contracting party to the General Agreement on Tariffs and Trade (GATT) since

1994 and a member of the World Trade Organization (WTO) since 1996. It is also a member of

the Greater Arab Free-Trade Area (GAFTA) in which all Gulf Cooperation Council (GCC) states

participate.

The food consumed by majority of UAE people is similar to that of Indian citizen which would

make Indian visitor comfortable for food consumption.

Besides this the UAE is the one of the nearest place from India as well as the tour for UAE is

also cheaper in concern of flight tickets as well as tour hotel accommodation. The visa process of

UAE from India is also easy which would help the tourist to take visa easily and fast.

The language used in UAE by most of its people is Hindi which would help Indian tourist to

communicate easily without any problem when they visit there as well as the culture of UAE is

almost similar to that of India which would make the Indian tourist comfortable on there visit.

UAE – INDIA RELATIONS

UAE – INDIA Bilateral Relation

The UAE’s economic, political and cultural links with India, which date back to more than a

century ago, are matured and multi-dimensional. Bilateral trade has been steadily growing over

the years and people-to-people contacts are constantly on the increase. Tourists from both sides

are visiting for leisure and pleasure, and more and more UAE nationals are availing of healthcare

and tourism facilities in India.

Close bonds between the Indian community and the nationals can be judged from the fact that

the Indian community is the largest expatriate community in the UAE, numbering about 1.5

million. Strong bonds of friendship between the UAE and India are poised to be further

diversified and strengthened in months and years to come.

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India-UAE relations are on the upswing. The two countries share bonds of cultural affinity and

have strong commercial and cultural linkages. Our expanding ties cover the full range of

economic, technical, social and cultural fields that are mutually beneficial for both peoples.

Our relations are not determined by trade and economic aspects alone. Indians were present in

the UAE long before oil was discovered and have played a vital role in the development of the

country. They have been active partners with their Emirati hosts. UAE leaders have on several

occasions acknowledged the contributions made by Indians in different spheres.

India and the UAE are making robust efforts to renew and strengthen the bilateral economic and

trade relations. The relationship between the two countries has evolved into a significant

partnership in the economic and commercial sphere, with UAE emerging as the second largest

market globally for Indian products. At the same time, Indians have emerged as important

investors in the UAE, and India as an important export destination for the UAE manufactured

goods.

India-UAE non-oil trade valued at $29,023.68 in 2007-2008. The two-way trade for 2007-2008

showed a 40 per cent growth over the previous year. The main items of exports from India

included mineral fuels, natural or cultured pearls, cereals, gems and jewellery, manmade yarn,

fabrics, metals, cotton yarn, marine products, machinery and equipment, plastic and linoleum

products, tea and meat and preparations. Major items of imports from UAE include mineral

fuels, mineral oils, natural or cultured pearls, precious or semi-precious stones, metal ores &

metal scrap, sulphur and unroasted iron pyrites, electrical machinery and equipment and parts

thereof, iron and steel etc.

A large portion of India’s exports to the UAE is transshipped from Dubai to other countries in

the region such as Pakistan, Afghanistan, Iran, Iraq, Saudi Arabia, Yemen and, of late, even to

East African countries. Thus, exports to the UAE have, in effect, opened up a huge regional

market for Indian products.

The sharp increase in our bilateral trade, especially in the non-oil sector, is a reflection of the

growth and depth of the two economies. Indian and UAE companies are actively involved in

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pursuing investments and projects in both countries. These joint venture initiatives involve some

of the most important companies from India such as Tata, Reliance, Wipro, NTPC, Larsen &

Toubro, Dodsals and Punj Lloyd. From the Emirati side, the top companies active in India are

Emaar, Nakheel, DP World, etc. In October last year, an MoU between UAE University and

India’s Atul Limited was signed for strategic partnership for transfer of technology to set up a

state-of-the-art date palm tissue culture production unit in Rajasthan.

It is estimated that about 1.5 million Indians live in UAE. Not many have left the country in the

recent past. The global crisis has merely served to strengthen the shift away from purely

speculative activity without having a significant adverse impact on the principal energy,

infrastructure and real estate projects being pursued in the country, particularly in Dubai and Abu

Dhabi, as finance is available readily for such national development-related projects. Hence, the

current economic crisis is unlikely to have any significant impact on the recruitment of Indians.

State of tourism between the two countries

Tourism sector is one of the areas that have good potential for future growth. The area with

considerable scope for cooperation in tourism is construction and maintenance of hotels. There is

good scope for UAE to invest in the over-all tourism sector in India, which would help pull

tourists visiting the UAE to India as well.

Reflecting the global realities, ties between India and the UAE are acquiring a new dimension.

The two countries have established strong partnerships in the field of commerce and trade. This

partnership is expanding, diversifying and emerging into a strategic partnership with emphasis

on cooperation in defense, energy, etc. UAE as a neighbour will be given priority attention in

upgrading our ties.

Both countries can cooperate with each other bilaterally and regionally in defense and security

issues and become partners in the global fight against terrorism and extremism.

Since UAE is focusing on knowledge based industries and with India emerging as world leaders

in space, agriculture, pharmaceuticals and bio-technology, there is considerable scope for

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cooperation in technology transfer, R&D and for joint ventures. Defense cooperation reached a

new high with the first ever India-UAE air exercise and the second India-UAE Joint Defense

Cooperation Committee meeting. India got firm support of the UAE side on the issue of

terrorism, especially on the Mumbai terror attacks of November last year.

INDIA, UAE SEE SCOPE FOR TIE-UPS IN TOURISM

Bilateral trade between India and the United Arab Emirates (UAE) has registered over 300 per

cent increase in the last five years.

UAE is the top trading partner of India, representing about 60 per cent of India's export to GCC

(Gulf Cooperation Council) countries in 2009-10.

The total trade has increased from $12,945.87 million in 2005-06 to $43,469.50 million in 2009-

10. The exports from India are up from $8,591.79 million in 2005-06 to $23,970.40 million in

2009-10. Similarly, imports from UAE are up from $4,354.08 million in 2005-06 to $19,499.10

million in 2009-10.

There is lot of business and investment potential which can be exploited to the mutual advantage

of both countries. The India-UAE Trade Policy Forum set up by the two countries to facilitate

bilateral trade needs to be further strengthened.

POTENTIAL IN TOURISM

Another area with considerable scope for cooperation in tourism is construction and maintenance

of hotels. UAE is focusing on knowledge-based industries and with India emerging as world

leaders in space, agriculture, pharmaceuticals, and bio-technology, there is considerable scope

for co-operation in technology transfer, research and development and for joint ventures.

Business and investments in Dubai:

1. Detailed information on possibilities of investment in the UAE: real property, commerce,

services, etc.

2. Organization of business trips to Dubai;

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3. Organization of participation in fairs and stands during fairs (our company may organise

a company stand on your behalf);

4. Assistance in verification of contracting parties in the UAE;

5. Agency in sales contacts with contracting parties from the UAE;

Tourism:

1. Detailed tourist information on Dubai - the most beautiful places, the biggest attractions,

detailed costs of trips and tours, where to go and which travel agency to choose, what to

visit, what can you do and what should you be careful about while visiting the UAE and

Dubai, what accommodation to choose - hotels or apartments;

2. Possibility of booking a trip on any dates;

3. Possibility of reservation or purchase of additional tours, e.g. Dubai CITY TOUR , Burji

Ararab - Dinner/Lunch , Burji Kalifa - Dinner / Lunch , Safari , DUBAI Dolphin -

Atlantis , Ferrari World Theme Park - Abu Dhabi ,etc.; 1) Possibility of reserving a car

with a driver in Dubai & 2) Special VIP offers.

UAE TOURIST ARRIVALS TO RISE 9% IN 2012

Number of foreign visitors to the UAE to touch 9 million this year after hotels in Abu

Dhabi welcomed a record 2 million hotel guests in 2011

Arabian Travel Market, the leading travel exhibition in the Middle East, is witnessing strong

online visitor interest ahead of this year’s event, with the number of foreign tourists heading to

the UAE this year expected to reach almost 9 million, according to the latest industry figures.

International industry consultant Business Monitor International (BMI) forecasts 9% growth in

2012, which is a healthy increase beyond the 8.2 million tourists that arrived in the UAE last

year.

Guest numbers at Dubai hotels rose 10% year-on-year to nearly 4.6 million for the first half of

2011, BMI said, as more visitors from the Middle East traveled to the UAE which continues to

cement its status as a regional safe haven after political turmoil hit a number of countries.

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Meanwhile a record number of guests checked into hotels in Abu Dhabi last year, according to

latest figures released by Abu Dhabi Tourism Authority (ADTA).

Over 2.1 million guests checked into hotels in the country’s capital, beating an official target by

100,000 and a previous record high of around 1.8 million in 2010. The Abu Dhabi Formula One

race and the expansion of the Etihad Airways’ network has helped to draw visitors there.

Despite a large increase in the number of available rooms, Dubai was the sole tourist destination

in the region that has shown a rise in both occupancy and revenue per available room (RevPAR)

in 2011 with increases of 4% and 4.5% respectively.

With unrest sweeping much of the Middle East last year, the UAE saw an influx of tourism

which boosts its status as a safe haven in the region.

The tourism market in Dubai is really picking up and consequently a number of hotel developers

are restarting projects they put on hold in 2009 as a result of the downturn.

Occupancy fell by 4.3% to 65.8%, revenue per available room (RevPar) eased by 1% to

US$121.28, while average daily rates increased 3.5% to US$184.24.

The number of tourists visiting the Middle East is expected to grow by up to 5% this year

following an 8% decline last year, according to a recent report by the UN World Tourism

Organisation (UNWTO).

There were an estimated 5 million fewer international tourist arrivals last year, down to 55

million, due to the turmoil in some of the region’s countries.

Last year, 2,232 exhibitors covering nearly 20,000 square metres attracted more than 21,000

attendees.

Dubai ranks 8th in global tourist spending

Dubai continues to be a major attraction for tourists worldwide as the emirate moved up in

ranking, visitor number and tourist spending in 2012.

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Similarly, the number of visitors jumped to 8.8 million, an increase of 15.3 per cent; while the

spending by tourists will also jump by around 18.5 per cent to $8.8 billion (Dh32.3 billion) this

year as compared to $7.4 billion in 2011.

The report predicted that visitors from London will top in terms of spending in Dubai this year.

They are projected to expend about $1.2 billion followed by visitors from Paris ($297 million)

and Munich ($267 million).

In the outbound travel, 182,000 visitors from Dubai to Sydney will be spending around $976

million (Dh2.18 billion) this year – the highest by the Dubai visitors to any city worldwide.

Sydney is followed by London where 232,000 visitors will expend approximately $608 million

in 2012.

Other top cities rated from the Middle East and Africa include Cairo (3.3m visitors), Abu Dhabi

(2.7m visitors), Johannesburg (2.5m visitors) Riyadh (1.9m visitors), Amman (1.7m visitors) and

Tunis (1.6m visitors). Cairo retained its second place while Abu Dhabi was rated third, up from

sixth in 2011, propelled by an impressive 17.9 per cent growth.

The number of visitors to the top 10 destination cities in the Middle East and Africa in 2012 is an

increase of 7.2 per cent from 2011, bringing the total to just below 29 million. Total cross-border

spending by visitors in these cities shows a more impressive growth of 10.4 per cent, reaching

$34.1 billion.

It said the regional outlook for the Middle East and Africa is equally bright, with visitor numbers

for the top ten cities set to grow by 7.2 per cent, total international spending predicted to rise by

10.4 per cent and average spend per visit set to grow by three per cent. Visitors will spend the

most in Dubai and this is also a fast growing city within the top ten for that region.

Abu Dhabi will be the fastest growing in terms of spend, according to the report, up 20.7 per cent

this year. Looking at the full list of cities, Durban will be the fastest growing for the region in

terms of visitor numbers and is predicted to be the second fastest growing city. Visitor numbers

to Abu Dhabi are set to grow nearly three and a half times faster than New York.

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The other cities ranked in the top 10 in 2012 are London, Paris, Bangkok, Singapore, Istanbul,

Hong Kong, Madrid, Dubai, Frankfurt and Kuala Lumpur.

The Index, which encompasses 132 of the world's most important cities, is being marketed as a

new map for understanding global connectivity.

Dubai’s tourism industry grows 10% to 9.3 million

Dubai’s hotels recorded a 10 per cent increase in the number of tourists in 2011 to 9.3 million, up

from 8.49 million reported in 2010, according to the Department of Tourism and Commerce

Marketing (DTCM), the emirate’s tourism regulatory body.

Dubai’s hotels recorded a 10 per cent increase in the number of tourists in 2011 to 9.3 million, up

from 8.49 million reported in 2010, according to the Department of Tourism and Commerce

Marketing (DTCM), the emirate’s tourism regulatory body.

Out of this, 7,262,730 guests stayed with hotels, up from 6,561,999 recorded in 2012.

Guest nights rose to 32,848,190 in 2011, an increase of 23 per cent compared with the previous

year. Hotels contributed to 23,266,875 guest nights.

Hotel apartments witnessed an increase of over two million guests with these properties

contributing 9.5 million guest nights last year as against 7.5 million guest nights in 2010.

Similarly, the average length of stay stood 3.6 days, up by 12 per cent compared with the

previous year.

The contribution of cruise tourism to Dubai tourism industry’s growth has also been enlarged

with an increase in the number of cruise passengers last year.

Revenues

Dubai hotel establishments’ revenues were close to Dh16 billion last year, an increase of 20 per

cent over 2010 revenues. Out of this Dh13.6 billion were of the hotels, up considerably

compared with 2012’s Dh11.2 billion. Hotel apartments too recorded considerable gains by

posting Dh2.2 billion last year, up from Dh1.9 billion in 2010.

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Top 20 source markets

In 2011, Saudi Arabia emerged as the top source market for Dubai’s tourism industry with

873,152 guests, followed by India (702,142), UK (643,196), Iran (476,708) and the US

(462,653). Germany ranked sixth with 275,663 guests, while Kuwait and Russia scooped seventh

and eighth positions with 273,253 and 255,746 guests, respectively. Oman emerged 9th on the

list with 223,993 guests followed by Pakistan (221,374), China (193,791), Australia (179,214),

France (152,439), Egypt (149,130), Philippines (125,408), Qatar (122,319), Italy (105,523),

Jordan (95,818), Bahrain (91,238) and Lebanon (90,984).

CONTRIBUTION OF TOURISM INDUSTRY IN UAE IN CONCERN

WITH INDIA

• An expected growth rate is projected till 2014. Real GDP is expected to grow at a healthy

rate and growth is expected to pick up pace in 2012 and beyond. By the year 2016, the

tourism sector is expected to earn US$ -US$ billion.

• Tourism industry has contributed significantly to the GDP. By the year 2016, the tourism

sector is expected to earn US$~ billion.

• In 2009, 40.90 million passengers passed through Dubai International Airport while 6.10

million guests stayed in Dubai's hotels. Projections show that 15 million tourists will visit

the city by 2010 and the number of hotel rooms will grow to 1.84 million by 2010.

• Tourism industry had a positive effect on the employment scenario in UAE. One in every

8.5% of the job is associated with the tourism. By 2016, this is expected to reach 9.1%.

Abu Dhabi is also being regarded as one of the prominent destinations by tourists. In the

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next decade, it is expected that approximately US$~ billion would be invested in this

sector.

• Dubai generates maximum revenue from tourism for UAE. According to UAE

government, the revenue earned from tourism is even more than it earns from oil.

Tourists get attracted to the nightlife here, beaches, shopping and to luxurious

accommodations available in UAE.

• After oil and trade, building and construction is regarded as the third largest sector,

contributing to approximately 6% of the GDP, which is US$23 billion; a significant

contribution even in the time of financial crisis. The contribution is expected to increase

to 10% - 11% in 2010 and 2011, when the economy is expected to recover from the

crisis.

• According to The United Nations Conference on Trade and Development (UNCTAD),

UAE is considered as a “Front Runner” which means that UAE has very high potential

for Foreign Direct Investment (FDI) and also for FDI performance. According to A&M

estimation, the UAE tourism GDP is expected to grow at 4-5% from 2010 – 2016.

• The UAE is the world's 31st popular tourism destination and the most popular in the Arab

world, ahead of Egypt — ranked 32nd and Saudi Arabia ranked 35 — in terms of tourism

receipts, United Nations World Tourism Organization (UNWTO) data shows.

• In the Middle East, Turkey outranks the UAE, retaining 12th position with tourism

receipts climbing to US$25.7 billion.

• UAE's international tourism receipts are somewhat close to US$10 billion (Dh36.7

billion) that includes hotel revenues and the receipts from air travel.

• UAE’s hotel revenues last year reached Dh21 billion serving 14.5 billion hotel guests —

including 10 million served by Dubai's hotels and serviced apartments, according to the

UAE National Council of Tourism and Antiquities (NCTA).

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Sector Overview

• India has significant reserves of gold, diamond, ruby and other gemstones. Key states

with gemstone reserves and mining potential are Maharashtra, Madhya Pradesh,

Orissa, Chhattisgarh, Bihar and Andhra Pradesh. Orissa has deposits of ruby and has

about 20 varieties of various gemstones such as rhodoline, garnet, aquamarine, etc.

• Andhra Pradesh has gold and diamond bearing areas, as well as occurrences of semi-

precious and abrasive stones spread over different districts. Diamonds are mined only at

Panna in Madhya Pradesh by the National Mining Development Corporation.

• The two major segments of the sector in India are gold jewelers and diamonds. The

country is the largest consumer of gold, accounting for more than 20% of the total world

gold consumption. Gold jeweler forms around 80% of the Indian jewelers market, with

the balance comprising fabricated studded jeweler that includes diamond and gemstone

studded jeweler. A predominant portion of the gold jeweler manufactured in India is

consumed in the domestic market.

• India is world's largest cutting and polishing centre for diamonds; the cutting and

polishing industry is well supported by government policies and the banking sector with

around 50 banks providing nearly USD 3 billion of credit to the Indian diamond

industry. It is considered to be diamond polishing and processing capital of the world as

its artisans are skilled in processing small-sized diamonds. At present, India exports 95%

of the world’s diamonds, according to statistics released by the Gems and Jeweler Export

promotion Council (GJEPC). A major portion of the rough, uncut diamonds processed in

India is exported, either in the form of polished diamonds or finished diamond jewelry.

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• The size of the Indian gems and jeweler market is was USD 30.1 billion in 2011 and

is expected to be USD 45 billion by 2015 on the back of increasing domestic

demand. The country is one of the largest exporters of gems and jeweler and the

industry is considered to play a vital role in the Indian economy as it is a leading foreign

exchange earner. The sector is expected to generate up to USD 35 billion of revenue

from exports by the year 2015. The countries where demand is increasing for Indian

jewellery include the UAE, the US, Russia, Singapore, Hong Kong, Latin America

and China.

Current scenario of Gems and jewelers industry in India.

• In India out of total production of gems and jewelers 80% is consume by Indian

customers. Rest of the 20% production exported by India.

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Current scenario of Gems and jewelers industry in UAE

• In UAE India is the 1st importer of gems and jeweler with 21% of India's total export of

gems and jeweler.

• UAE is a Major buyer of India for gems and jewelers.

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Top Buyers of Gems and Jewelers from India

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s

Pestle Analysis of U.A.E with concern of gems and jewellry industry

Political factors

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• The United Arab Emirates is a constitutional federation of seven emirates: Abu Dhabi,

Dubai, Sharjah, Ajman, Umm Al Qaiwain, Ras Al Khaimah and Fujairah. The federation

was formally established on 2 December 1971.

• The Council of Ministers, described in the Constitution as ‘the executive authority’ for

the Federation, is headed by a prime minister, chosen by the president in consultation

with the Supreme Council

• The UAE's political system, a unique combination of the traditional and the modern, has

underpinned this political success, enabling the country to develop a modern

administrative structure while, at the same time, ensuring that the best of the traditions of

the past are maintained, adapted and preserved.

• If we integrate with social aspect it has focused on the ways in which UAE national

identity can be strengthened, and on the steps necessary to reduce dependency on foreign

labor. So India has great capability into provide skillful labour.

Economic factors

GPD per capita.

• According to World Bank report 2011 UAE was at 9th rank ref to GDP per capita.

• GDP per capita is decreasing comparing to the past years records of UAE

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Balance of payment situation (million)

• Total exports

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• Total imports

• Result

As per above statics there is increase in total exports compare to the total imports. So

there is a surplus of revenue UAE’s financial condition is favorable.

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• Inflation rate

The rate at which the general level of prices for goods and services is rising, and,

subsequently, purchasing power is falling.

• Result:

As per the above graph we can see that inflation rate in UAE is comparatively low than

past years. It shows that purchasing power of UAE people is high or their financial condition is

very strong.

Unemployment rate

• In UAE unemployment rate is increasing year by year because there is lack of skilled

labour or workers.

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Social Factor

• UAE women are very fond of traditional Jeweler and trinkets

They have Jewellery for the Neck, fore- head, Fingers, Feet, Wrist and Garments. Some of this

jewellery is specifically meant for wedding parties and special occasions, and some for daily use

• More than 30% of the population of UAE is Indian.

Indians are found of gold and jewellery. They purchase it for their savings, for religious

purpose, on festivals, and mainly occasion like marriage, or any social function.

• Growth of tourism sector in UAE.

In UAE tourism sector is growing from 10% in 2011 compared to last year. Tourists are attracted

to purchase gems and jewellery for their own purpose, for giving gifts to their relatives etc…

• Income and standard of living.

As high income country with GDP per capita $48,158 (2012), the people of UAE can spend on

luxurious product like gems and jewellery after their basic needs.

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• Consumption of gems and jewellery

UAE shoppers buy an average of 30 gm of gold annually compared to global average of less than

1 gm

Technological factor

• Use of internet and social networking sites

In UAE 70.9% of the total population is using internet.

Approximately 40% of the total populations of UAE are using social networking sites like

facebook, twitter, etc…

• Development and adaption of technologies.

The educational system in the UAE has been inadequate for meeting its technological

development needs. Since the education laws are based on Islamic principles, schools have

traditionally not devoted enough attention to science and mathematics. So they cannot adapt the

new technologies immediately.

• Take benefit of Dubai Silicon Oasis

Dubai Silicon Oasis Authority is wholly owned by the Government of Dubai providing both a

living and working integrated community. Silicon Oasis is a Free Zone Authority and

provides free trade zone incentives and benefits to companies operating within the tech park.

Benefits:

100% foreign ownership

100% repatriation of capital

Zero Income tax

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Zero corporate tax

Legal factor

• 100% of foreign direct investment for gems and jewellery.

• The UAE is one of the few tax-free zones in the world, with virtually no tax laws in the

country, and the country has also improved its policy towards the industrial sector.

• Along with the absence of income tax laws there is also near-total (99.9%) fiscal freedom

in the country. This has led to explosive foreign interest, investments and corporate

relocation into the UAE.

• Court proceedings in the UAE are time-consuming.

SWOT ANALYSIS

Strength:

A FICCI-Technopak report estimates that gems and jewellery exports will grow to USD 58

billion by 2015. It also estimates that the domestic market for gems and jewellery will touch

USD 35 billion to USD 40 billion by 2015.

India has several strengths that have made it a significant force in the global gems and jewellery

business. These are:

• Highly skilled, yet low-cost labour.

• Established manufacturing excellence in jewellery and diamond polishing.

• India is the most technologically advanced diamond cutting centre in the world.

• Opportunity to address one of the world’s largest and fastest-growing gems and jewellery

markets.

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• Opportunity to leverage India’s strengths to address the global market.

One of the most encouraging trends visible in the Indian gems and jewellery market is that the

country is now beginning to move towards branded jewellery and consumers are increasingly

accepting modern retail formats. According to the FICCI-Technopak report, this would act as a

catalyst for change and may impact traditional players, who would need to upgrade to keep pace

with changing market trends. It is expected that, going forward, traditional players will coexist

with modern players — this is, in fact, the trend in international markets where independent

jewellers still hold significant market share.

Opportunities:

• UAE women are very fond of traditional Jewellery and trinkets.

They have Jewellery for the Neck, fore- head, Fingers, Feet, Wrist and Garments. Some of this

jewellery is specifically meant for wedding parties and special occasions, and some for daily use

• More than 30% of the population of UAE is Indian.

Indians are found of gold and jewellery. They purchase it for their savings, for religious

purpose, on festivals, and mainly occasion like marriage, or any social function.

• Growth of tourism sector in UAE.

In UAE tourism sector is growing from 10% in 2011 compared to last year. Tourists are attracted

to purchase gems and jewellery for their own purpose, for giving gifts to their relatives etc…

• Income and standard of living.

As high income country with GDP per capita $48,158 (2012), the people of UAE can spend on

luxurious product like gems and jewellery after their basic needs.

• Consumption of gems and jewellery

UAE shoppers buy an average of 30 gm of gold annually compared to global average of less than

1 gm

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• UAE is importing gems and jewellery from other countries like US, Hong Kong etc but in

these countries are importing from India only. So India can remove the mediators.

Strategy Should Apply for Revitalization

• As India Is already leading Exporter of gems and jewelers to U.A.E following

strategy should apply:

(1) Most of our gems and jewelries are consumed by India only India should us

optimum production capacity to increase production like:-

• Establish more mining plants in India like in South Gujarat, Maharashtra, Bihar,

Chhattisgarh.

• Setting up training institute for jewellery manufacturing .

• Motivate the skillful labours by high level of payment scale.

• For Gujarat diamond processing and trading unit are spread across the state in cities such

as Surat, Ahmedabad, Palanpur, Bhavnagar, Valsad, and Navsari.

• This can give more than 15% of growth in this sector and can be effectively utilized to

setup large low cost production basis for domestic and export market.

(2) Government policies :-

• Lowering import duty on platinum and exempting rough, color, precious gems stone from

customs duty and also should exempted from import duty.

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• Setting up of gems and jewelry parks and SEZs to stimulate sectoral investment.

(3) Use internet/Social media to spread demand of Indian jewellery in U.A.E.

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Introduction

Indian engineering industry has witnessed an unprecedented growth in the past few years as a

result of increased investment in infrastructure development and industrial production. Today,

India has a diversified industrial machinery/capital base competent of catering to complex

requirements and demands for an entire range of industrial machinery. The engineering industry

plays a significant role in the development of other industrial sectors in the economy. This sector

is very closely linked with the manufacturing and infrastructure sectors of the economy. The

quality and cost of engineering products depends on the quality of the parent machine tools and

their automation levels. The development of machine tool industry is, therefore, of great

importance for a competitive and self-reliant industrial structure.

The engineering sector is the largest sector among the industrial segments in India and provides

direct and indirect employment to over 4 million skilled and non-skilled workers. This industry

basically comprises in two major categories.

1. Heavy engineering and

2. Light engineering

This is further subcategorized into machinery/capital goods, equipments, and transport

equipment in heavy engineering, castings, forgings to sophisticated process control equipment in

the light engineering segment. Machine tools form a part of the capital goods segment.

Heavy engineering sector Light engineering sector

Textile machinery Rolling bearing

Cement machinery Medical and surgical instruments

Sugar machinery Process control instruments

Rubber machinery Industrial fasteners

Material handling equipment Ferrous castings

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Oil field equipment Steel forgings

Metallurgical Seamless steel pipes and tubes

Mining machinery

Electrical resistance welded (ERW) steel

pipes and tubes

Dairy machinery Submerged-arc welded (SAW) pipes

Machine tool Bicycle

Engineering is relatively less fragmented at the top and more fragmented at the lower end in

terms of technology and capital investment and is dominated by smaller players. The major end-

user industries for heavy engineering goods are power, infrastructure, steel, cement,

petrochemicals, oil and gas, refineries, fertilizers, mining, railways, automobiles, and textiles.

Light engineering goods are essentially used as inputs by the heavy engineering industry. Growth

in the domestic engineering industry has been powered by user industries and several new

projects undertaken in various core industries such as railways, power, and infrastructure.

Capacity creation in sectors such as infrastructure, oil and gas, power, mining, automobiles, auto

components, steel, refinery, and consumer durables drives this growth.

Apart from demand from user industries, the availability of technical education infrastructure

that provides an increased number of technically trained human resources each year has been

another key factor aiding the engineering industry in India. Further, India is being preferred by

global manufacturing companies as an outsourcing destination due to its lower labor cost and

better designing capabilities.

Factors driving growth of domestic engineering industry:

• Growth in the key user-industries

• Government’s thrust on power and construction

• Global companies preferring India as an outsourcing hub owing to the labour arbitrage

advantage and better design capabilities.

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The engineering industry in India manufactures a wide range of products, with heavy

engineering goods accounting for bulk of the production. Most leading players produce high-

value heavy engineering goods using high-end technology. The requirement of huge capital

investments is a major entry barrier. Consequently, small and unorganized firms have little

market presence. The unorganized sector specializes in manufacturing low-technology products

and a few small-scale units are involved only in assembly of imported components. This segment

caters to the replacement market for few products such as low-quality small bearings.

On the other hand, light engineering goods manufacturers use medium to low-end technology.

The entry barrier is low owing to relatively lower requirement of capital and technology. This

segment is characterized by dominance of small and unorganized players, which manufacture

low value added products. However, a few medium and large scale firms produce high value

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PESTLE ANALYSIS RELATED TO ENGINEERING GOODS

POLTICAL ANALYSIS

UAE is a low crime and politically stable country. It is also monetarily and financially stable.

Emirates are a well developed country. The government is committed to pro business, liberal

economic policies. It benefits from harmonious and stable industrial relations. There is a well

defined and sound legal framework for business and set of ownership rules. The permitted

ownership rights of a foreigner are from 100 % for the professional company's representative

offices and branches to 49 % for limited liability companies.

The companies also have significant cost advantages:

• No trade barriers or quotas,

• No foreign exchange controls,

• Competitive import duties,

• Competitive labor costs,

• Competitive energy costs,

• Competitive real estate costs,

• No personal income or corporate profit taxes (except for branches of foreign banks and

oil companies),

• High levels of liquidity

• Competitive financing costs,

Fiscal policy

• Tax: there is no personal income or corporate profit taxes (exception foreign bank

branches and oil companies).

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• Huge investments could be made on non oil diversification arenas. Dubai internet city has

been developed as a free export zone in October 2000.

• Development of new free zones like the Jebel Ali Free Zone hosts 2200 companies was

established in 1985.

Competitors in JAFZA

Some salient features of auto parts industry in free ports such as JAFZA and the stiff competition

they face are as follows:

• As JAFZA serves as a free trade port and the state applies various relaxations for the

interested companies there exist massive competition among the various automotive and

auto parts companies which see it as an opportunity to boost their business via such free

ports.

• Other than the automotive giants such as General Motors, Nissan, Toyota, Jaguar,

Mitsubishi, Mercedes, BMW, Volkswagen, Land Rover and Ford; there exist numerous

private companies which deal in auto parts and accessories.

• More than 1800 companies are registered with the various free ports across the UAE and

JAFZA being the biggest holds and assist most of them.

• The automotive business is 100% import/export based as there is no manufacturing unit

in Dubai for manufacturing either automotive or auto parts.

• Out of the total imports on automobiles and auto parts, 65% is exported back to the

various African and Asian countries which serve as a major market for the companies

operating with JAFZA.

• The constantly increasing market for the auto parts can be realized from the fact that this

industry has turned out to be the major complimentary practice in the automotive

industry.

• The business of the auto parts and accessories has grown more than 20% in the recent

past every year and is still maintaining its pace. This has lead to developing interest of

various firms to invest in this segment.

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• Some of the major players of the auto parts and accessories are as follows:

• Dubai Auto Trader

• Papyrus Auto Spare Parts LLC

• Total Auto Spare Parts Trading LLC

• Samira Auto Parts Co Ltd

And many more companies other than the obvious automotive giants stated before.

AUTO-PARTS MARKET IN UAE

• The Automotive and auto-parts sector plays a crucial role in Dubai's economy and its

impact becomes more prominent if we consider Dubai's non-oil economy.

• The growing importance of the industry has been analyzed by Dubai World Statistics

Department which appreciates the fact that in the near future the automotive industry will

thrive in UAE. The precise and systematic statistical analysis ensures the auto parts

industry's capacity and its capability to be a driving power in the economy.

• The total trade amount for the first half of the fiscal year in 2009 was registered as US$

2.4 billion, Japan being the largest importer. Accessories and auto parts take the biggest

chunk of the automotive industry of Dubai (52%). (CIA- The World Factbook - United

Arab Emirates)

Free Trade Zone

A free trade zone (FTZ) also known as export processing zone(EPZ) is mostly located at an

airport or a seaport for faster access to transport facilities. It is a unique area and crafted

specifically for trading of products. Some important features are:

• Such free trade zones come under special zones in a particular country as such countries

do not levy trade barriers which come in form of taxes, quotas and also the legislative and

bureaucratic restrictions as long as it is restricted to the free trade zone.

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• No taxes in the free trade zone make it a hotspot for not only trading and storing good

before shipments but also for manufacturing certain products, especially if the

prerequisite raw material sources are scattered around the globe.

• By creating such trade free zones, countries' aim is to attract foreign investment and

opportunity to create more jobs for their citizens. It surely also promotes trading in such

areas. Jebel Ali Free Zone (JAFZA) being a perfect example.

JAFZA - Jebel Ali Free Zone

The Jebel Ali Free Zone, also known as ZAFZA is one of the most prominent free zones in the

central part of the globe. It is located in United Arab Emirates (UAE) at is Dubai port. Some

salient features of JAFZA are:

• JAFZA is a state owned free zone and a part of Economic Zones World, which indulges

in developing R&D Industrial Parks, Logistics And most importantly Economic Zones.

• Started functioning in 1985 by providing warehouses; it expanded its facilities in 1990 to

incorporate light industrial units.

• It is located at the entrance of the Peninsular Gulf right next to the Jebel Ali Port (largest

port in Middle East) , providing it a prime location as it makes JAFZA easily accessible

to the entire Arabian Peninsula, Asia, India, Africa and Europe.

• Constructed over a region of 48 square kilometers, it is one of the largest and swiftly

growing free zone. (Dubai Government Information and Service Portal )

• Being a trade port its priority is to attract and retain maximum traders hence making it a

customer service driven free zone which provides excellent environment and

opportunities for constant growth.

• JAFZA was certified as an ISO 9001:2000 organization in1996 making it the very first

free zone to win an ISO certification.

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Political System

The United Arab Emirates is a Federation of seven emirates, each with its own ruler.

Government works at three levels – federal, emirate and municipal. Since its formation in 1971,

the Federation has brought political stability and security. The UAE’s political system is a

unique mix of the old and new. It is neither a constitutional monarchy nor a republic. The emirs

chose one of their members to be the president of the federation, but this does not alter the

monarchical character of the government of the individual emirates. The constitution is

concerned solely with the relations between the emirates as members of the federation, and does

not prescribe a constitutional system of government.

Cultural traditions such as open majlis, in which tribesmen voice their opinions directly to their

ruler, coexist alongside a modern and always evolving administrative system.

The Federal Government has responsibility for the following: foreign affairs, security and

defense, nationality and immigration issues, education public health, currency, postal, telephone

and other communications services, air-traffic control and licensing of aircraft, labor relations;

banking; delimitation of international waters and the extradition of criminals.

In May 1996, the provisional constitution was made permanent, and Abu Dhabi was designated

as the Federation’s capital. The Federal Government structure comprises five bodies: the Federal

Supreme Council, President, Council of Ministers, Federal National Council and Federal

Judiciary.

Federal Supreme Council

The rulers of each emirate are members of the Federal Supreme Council, which is the top

policy-making body in the UAE. The Council elects the President and Vice-President of the

UAE, ratifies federal laws and decrees, and approves the nomination of the Prime Minister, who

is selected by the President in consultation with Supreme Council members.

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His Highness Sheikh Zayed bin Sultan Al Nahyan, ruler of Abu Dhabi, was elected the first

President of the Federation. Following his death on 2 November 2004, he was succeeded by his

son and Crown Prince, His Highness Sheikh Khalifa bin Zayed Al Nahyan, on 3 November,

2004.

The Ruler of Dubai, His Highness Maktoum bin Rashid Al Maktoum, was elected Vice-

President of the Federation. After his death on 4 January 2006, he was succeeded by his brother,

His Highness Sheikh Mohammed bin Rashid Al Maktoum.

President

The President and Vice-President are elected for a five-year term and are eligible for re-election

on the expiry of their terms. The President exercises a wide range of legislative and executive

powers. He is entrusted with signing laws, decrees and decisions approved and sanctioned by the

Supreme Council, supervising their implementation through the Council of Ministers, and

ratifying treaties and international agreements approved by the Supreme Council and Council of

Ministers.

Council of Ministers

The Council of Ministers is the UAE’s executive body. It is lead by the Prime Minister, who

chooses a Cabinet from among representatives of the seven emirates. The membership of the

Cabinet is then ratified by the President. Four members of the current Council of Ministers are

women.

Federal National Council

The Federal National Council or FNC is a consultative assembly, made up of 40 members

representing the seven emirates. The number of seats assigned to each emirate is determined by

their population – Abu Dhabi (8), Dubai (8), Sharjah (6), Ajman (4), Umm al-Quwain (4), Ras

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al-Khaimah (6), and Fujairah (4). FNC members hold office for four years, and the Council sits

from the third week of October.

In December 2006, a process of electing FNC members was initiated. Half the members were

elected, and half are nominated by the ruler of each emirate. Nine members of the current FNC

are women.

The National Council examines proposed federal legislation and constitutional amendments,

reviews the annual draft budget of the Federation, debates international treaties and conventions

and influences the Government’s work through discussion, question-and-answer sessions and in

making recommendations.

Federal Judiciary

The Federal Judiciary, which is accorded independence under the Constitution, includes the

Federal Supreme Court and Courts of First Instance. The Federal Supreme Court comprises five

judges appointed by the Supreme Council. The judges decide on the constitutionality of federal

laws and arbitrate on inter-emirate disputes between the Federal Government and the emirates.

Local Government

Corresponding to the federal institutions are the local governments of the seven emirates.

Varying in size, they have evolved along with their respective emirates’ growth, and their

mechanisms differ from emirate to emirate.

ECONOMICAL ANALYSIS

Market Characteristics

• UAE does not have any manufacturing units for automobile. Its 100% import export

based, hence free trade zones like JAFZA become more important.

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• The UAE automotive industry has about 1.4 million vehicles and it is constantly growing

at around 10%. Oil wealth is the major reason and will remain for Dubai and Middle East

to be a flourishing market for latest models of cars and any other latest development in

the automotive industry.

• The major players in the motor vehicles manufacturing industry in UAE are General

Motors, Nissan, Toyota, Jaguar, Mitsubishi, Mercedes, BMW, Volkswagen, Land Rover

and Ford.

• Auto parts and accessories sector, which act as complimentary to the automotive industry

is also experiencing rapid growth.

• The 65% of the auto parts and accessories imported are exported back to the various

countries via the free ports and this process has been growing at an average rate of 20%

per annum.

• Dubai Cars & Automotive Zone (DUCAMZ) is responsible for re-exporting cars and auto

parts to the Asian and African regions which are the core markets for such products.

• JAFZA is responsible for supervising DUCAMZ and providing all the necessary

assistance which include: customs and clearing, licensing, administrative services and

various other issues which are kept extremely simple when they operate in the trade free

zone. (Jafza - Jebel Ali Free Zone- The world's fastest growing free zone Dubai UAE )

• With JAFZA being a free trade port the various advantages to its customers are: space in

a 1.6 billion people market; no taxes, import/export duties; and no restrictions on amount

of trade, 100% foreign ownership.

• Hassle free clearance and JAFZA's aid in various formalities is also an important factor

which promotes trade in Dubai.

The Unemployment rate of U.A.E is 4%.The Gross domestic product (GDP) is 3.20%.The

inflation rate is 1.9% and National debt is $ 142 billion. The WTO has named it the leading Arab

economy in terms of global trade and one of the top 30 nations in the world. The UAE

Government’s free-market policy and flexible economic and commercial laws are the prime

factors in the country’s rise as a regional and global leader.

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At the time of independence, the UAE was already regarded as a rich country with GDP per

capita exceeding US$ 2,000. In 2011, UAE is ranked as the 14th best nation in the world for

doing business based on its economy and regulatory environment, ranked by the Doing Business

2011 Report published by the World Bank Group

.

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 US$ 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.

In U.A.E, especially in Dubai, financial crisis happened during the year 2007-2010.In 2009its

economy shrank by 4, but their overseas investment is expected to support its full economic

recovery. But property prices fell dramatically because the government construction company

sought to delay a debt payment. 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

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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 Dubailand, 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.

Early Beginners

In the early 1930s the first oil company teams conducted geological surveys. In 1962, the first

shipment of crude was exported from Abu Dhabi. With oil revenues growing year by year, the

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Late Sheikh Zayed bin Sultan Al Nahyan was chosen as Ruler of Abu Dhabi in 1966. He

undertook a massive programme of construction of schools, housing, hospitals and roads.

One of Sheikh Zayed’s early steps was to increase contributions to the Trucial States

Development Fund. Abu Dhabi soon became its largest donor. In the meantime, the Late Sheikh

Rashid bin Saeed Al Maktoum, de facto Ruler of Dubai since 1939, developed shipping to

replace pearling revenues. When Dubai’s oil exports started in 1969, Sheikh Rashid was able to

use oil revenues to improve the quality of life of his people.

At the beginning of 1968, when the British announced their intention to withdraw from the

Arabian Gulf, Sheikh Zayed acted rapidly to establish closer ties with the emirates. With the Late

Sheikh Rashid, the Late Sheikh Zayed called for a federation that would include not only the

seven Emirates that together made up the Trucial States, but also Qatar and Bahrain.

Agreement was reached between the rulers of six of the Emirates (Abu Dhabi, Dubai, Sharjah,

Umm al-Qaiwain, Fujairah and Ajman), and the Federation to be known as the United Arab

Emirates was formally established on 2 December 1971. The seventh Emirate, Ra’s al-Khaimah,

acceded to the new Federation the following year.

Since then, the seven Emirates have forged a distinct national identity. The UAE’s political

system combines traditional and modern and enabled the country to develop a modern

administrative structure while ensuring that traditions of the past are maintained, adapted and

preserved.

SOCIAL ANALYSIS

Social and Cultural

The UAE is an innovative social investor, seeking ways to expand opportunities for UAE

citizens and help address regional and global challenges. Among top UAE priorities is education

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reform, improving healthcare, expanding the role of women, and the environment. The UAE has

found support in the United States to pursue these domestic goals.

Education

In 1975, the rate of adult literacy was 54 percent among men and 31 percent among women.

Today, literacy rates for both genders are nearly 90 percent.

The UAE’s values of tolerance and openness are best reflected in the progress of Emirati women

in education. Forty years ago, virtually no girls went to school. But His Highness Sheikh Zayed

Bin Sultan Al Nahyan, founder of the UAE, personally encouraged and even insisted on

education for girls.

New initiatives are being launched at all educational levels and US partners have played key

roles.

• US Education Secretary Margaret Spellings visited the UAE in May 2008. The two

countries signed a Memorandum of Cooperation, committing both sides to collaborate on

mutually beneficial projects in educational reform and development.

• The New England Center for Children, a Massachusetts school serving children with

autism, will establish a comprehensive special education program as well as train and

qualify a number of UAE nationals to provide services in Arabic.

• New York University-Abu Dhabi will be the first comprehensive liberal arts and

sciences campus with a robust research component to be operated abroad by a major US

university.

• MIT is helping develop the Masdar Institute of Science and Technology in Abu Dhabi.

The Institute, which focuses on clean energy technologies, will be the region’s first

institution dedicated to research-driven graduate programs.

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• The Wharton School of the University of Pennsylvania has partnered with Dubai

World to create the Dubai Leaders Program.

• Rochester Institute of Technology has established a new Dubai campus.

• Johns Hopkins’ Bloomberg School of Public Health is helping to establish a public

health doctoral program in the Emirates.

Health

Health care delivery in parts of the UAE is undergoing a significant transformation, and the UAE

is working with leading US institutions to develop its health care system.

• Boston University and Dubai Healthcare City are opening a dental school in the

Emirate.

• Johns Hopkins Medicine will manage the Tawam Hospital in Abu Dhabi. Johns

Hopkins faculty are also involved in the development of a public health doctoral program

for the UAE and providing advice on preventive health care programs.

• The Cleveland Clinic is creating and operating a new world-class hospital in the UAE.

Cleveland Clinic also announced it will take over management of Sheikh Khalifa Medical

City in Abu Dhabi.

• Susan G. Komen for the Cure, in collaboration with the University of Texas M. D.

Anderson Cancer Center and the US State Department’s Middle East Partnership

Initiative, is developing programs with UAE women’s groups, government officials,

physicians and medical organizations to raise awareness of breast cancer, and facilitate

more effective outcomes in prevention and treatment.

• The UAE and the University of North Carolina’s School of Public Health have signed

a two-year contract to investigate possible environmental health risks that come with being

an industrialized country.

Women

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The UAE Constitution guarantees equal rights for both men and women. Women have been very

successful in getting advanced degrees and graduates in the UAE can be found working in

government, engineering, science, health care, media, computer technology, law, commerce, and

the oil industry. In 2010, the United Nations Human Development Report ranked the UAE first

regionally and the country holds 25th place in the world for gender empowerment.

• Four UAE cabinet ministers are women—including Sheikha Lubna Al Qasimi, Foreign

Trade Minister, who was on Forbes magazine’s 2007 list of the 100 most powerful women

in the world.

• Women form two-thirds of government sector workers. In October 2008, the first

female judge was appointed. Women make up 20 percent of the diplomatic corps.

• Seven women hold seats within the Federal National Council, accounting for 18

percent of the membership. The FNC is a consultative parliamentary body.

• In 2003, for the first time, the Abu Dhabi police trained 32 women to work with the

special security forces. The UAE has four women fighter pilots, the first to serve in UAE

military forces.

• Women finance one-third of the transactions in the financial and banking sector.

The UAE has worked with US partners to further the success of its professional women. Vital

Voices, a Washington-based nongovernmental organization, and the US State Department has

organized the MENA Businesswomen’s Network. The goal is to build a network of

businesswomen, expand the number of women in business, increase the value of their businesses,

advance the role of women in society, and promote a regional culture of women's

entrepreneurship. Among the network’s seven founding members is the Dubai Business

Women’s Council.

Cultural

Art and culture play a central role in enhancing international relations and developing

understanding between the UAE and the United States.

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• New York-based Guggenheim Museum will establish a world-class museum in the

UAE devoted to modern and contemporary art, to be known as the Guggenheim Abu

Dhabi.

• National Geographic Entertainment and Imagination Abu Dhabi have committed $100

million for the production of 15 movies and documentaries for theatrical release over the

next five years.

• Abu Dhabi signed a deal with the New York Film Academy to establish a film

academy in the UAE capital.

• The UAE has Sister City relationships between Detroit and Dubai and Houston and

Abu Dhabi.

Population

The United Arab Emirates has approximately 4.1 million people (2006 estimate) from all over

the Arab world, Asia, Europe, Africa and America live. Approximately 80% of the population is

non-UAE nationals.

Language

The official language of the UAE is Arabic though other languages like English, Hindi and Farsi

are also spoken

Religion

The religion that the majority of the population has is Islam but Christianity, Hinduism, etc. are

also found, which is widely practiced by Emirati nationals as well as expatriates originating from

other Arab countries, Pakistan, Africa and India, amongst others. The UAE is tolerant of other

religions and residents and visitors who profess a different faith are entitled to perform their

religious duties.

Rituals and holy places

The main Muslim religious ritual is prayer five times a day. This requires wodou (ablution) for

purification. Usually people go to the nearest mosque or pray at home. The rituals involved in the

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pilgrimage ( Haj ) to Mecca are the most elaborate. One must remove the shoes before entering a

mosque. In large mosques, there are separate areas for women.

Classes and Castes

Emirati society is divided into two social categories: the nationals ( Al-Muwateneen ) and the

foreign immigrants, referred to as the incomers ( Al-Wafedeen ).Citizens are subdivided into

four main social classes:

(1) The ruling sheikh families, whose members hold the highest political positions and power

and have immense wealth and prestige.

(2) The merchant class, known as al-tujjar , traditionally pearling merchants who now sell

international consumer goods.

(3) The new middle class, represented by increasing numbers of professionals who have

benefitted from Free State education.

(4) The low-income groups represented by newly settled Bedouin nomads and former pearl

divers and oasis farmers.

Among the immigrants there are hierarchical groups that receive different economic and social

rewards:

(1) Top professionals and technocrats with international contracts, who earn high salaries and

other benefits.

(2) Middle-range professionals such as school teachers, skilled technicians, and company

salesmen.

(3) Low-paid semi-skilled and unskilled workers, primarily Asian. In general, nationals are a

privileged minority, and benefit from state laws and business regulations.

TECHNOLOGY ANALYISIS

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• Technology is so advanced in the U.A.E as compared to India and the ranked top in the

world. Twisted buildings are there which can mould in 360 degree. Burj Khalifa — The

World's Tallest Tower. The tower accomplished a world record for the highest installation of

an aluminum and glass façade, at a height of 512 meters. Etisalat tower is the 14th largest

mobile network operator in the world, with a total customer base of 100 million

• The UAE has been spending billions of dollars on infrastructure and is the biggest projects

market in the region, accounting for 37 percent of total project value within the construction,

oil and gas, petrochemicals, power and water and waste sectors. Many huge investments have

been poured into real estate, tourism and leisure.

• It has Dubai as its hub, and flies to over 100 destinations across six continents. The airline

was the eighth-largest airline in the world in terms of international passengers carried, and

fifth-largest in the world in terms of scheduled international passenger-kilometres flown in

2008.

• The Dubai Mall is the world's largest shopping mall based on total area and sixth largest by

gross leasable area. The Dubai Aquarium and Discovery Centre earned the Guinness World

Record for the world's "Largest Acrylic Panel" (32.88 m wide × 8.3 m high × 750 mm thick

and weighing 245,614 kg).

• The Dh15.5 billion (US$4.2 billion) Dubai Metro project includes a 52-kilometre Red Line

viaduct, which stretches the length of Sheikh Zayed Road between Al Rashidiya and Jebel

Ali and was opened in September 2009 after round-the-clock work for three years. The Red

Line when fully complete will carry an estimated 27,000 passengers per hour in each

direction on 42 trains. Work also on the Green Line, which will link Al Qusais to Dubai

Healthcare City, began in 2006 and is scheduled for completion in late 2010. In Abu Dhabi

plans are underway for all a metro system and also a country-wide national railway, which

will connect all the major cities and is later to connect to the GCC wide network. The cost for

the railway will be between Dh25bn and Dh30bn, and will be a total length of 1,100

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kilometers, connecting Ghuwaifat, bordering the Kingdom of Saudi Arabia, in the west and

the border with the Sultanate of Oman in the east.

• The Federal Electricity and Water Authority (FEWA) is the body responsible for overseeing

federal utilities, whilst authorities3 in individual emirates, including Abu Dhabi Water and

Electricity Authority (ADWEA), Dubai Water and Electricity Authority (DEWA) and

Sharjah Water and Electricity Authority (SEWA), oversee power and water generation in

their individual emirates. The UAE plans to build 68 rechargeable dams in the coming five

years to augment the 114 dams in existence, all but two of which are rechargeable, to help

with providing for the growing population.

LEGAL ANALYSIS

LEGAL ISSUES IN U.A.E. IN SPARE PART

Dubai: Dubai’s auto parts trade grew 13 per cent to Dh9.65 billion in the first quarter of this year, with

Japanese products dominating the local market and Iran claiming the largest share of re-exports, Dubai

Customs revealed yesterday.

Dubai imported Dh5.11 billion worth of car parts in the first quarter, while exports and re-exports reached

Dh4.54 billion, according to Nassim Saeed Al Mehairi, Senior Manager of the Statistics section in Dubai

Customs.

Japan was the top destination from which Dubai’s car parts and accessories imports originated, claiming

28 per cent of the market and Dh1.4 billion worth of products.

South Korea followed with Dh609 million in imports and 12 per cent of the market. China was the third

most important import source with Dh552 million or 11 per cent.

Iran was the major re-export destination for car parts and accessories from Dubai with Dh1.35 billion in

products and 30 per cent of the export and re-export market, according to the preliminary data.

Impact of sanctions

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Asked about the sustained trade volumes with Iran and expectations of future changes amidst the

sanctions, analysts say traders will always find inroads.

Saudi Arabia came in second with Dh415 million or nine per cent, followed by Oman with Dh240 million

or five per cent, said Al Mehairi.

Last year, the auto spare parts trade contributed Dh36.27 billion or 3.33 per cent of Dubai’s total foreign

trade which amounted to Dh1.1 trillion, she noted.

Imports amounted to Dh21.5 billion and exports to Dh14.77 billion. Dubai imported Dh6.07 billion of

auto parts and accessories from Japan, Dh2.87 from China and Dh2.58 from South Korea in 2011.

Dubai’s exports and rexports to Iran were Dh4.45 billion or 30 per cent and Saudi Arabia purchased

Dh1.29 billion or 8.78 per cent.

South Africa Trade

South Africa’s auto parts exports to the UAE shrank by about 80 per cent from Dh250 million in 2008 to

Dh51 million in 2011 due to the global financial crisis and declining demand from the UAE, according to

Dr. Norman Lamprecht, Executive Manager of the Automotive Industry Export Council (AIEC).

South Africa hopes to return to its 2008 auto parts trade figure with the UAE this year, said Yacoob Abba

Omar, Ambassador of South Africa to the UAE.

South Africa is planning to double its vehicle production from 600,000 vehicles to 1.2 million by 2020,

igniting opportunities for foreign investment, said Lamprecht. South Africa produces 80 per cent of

Africa’s vehicles. South Africa’s auto parts exports to the UAE made up 10 per cent of its spare parts

exports globally in 2011, he added. Court system

The UAE has a federal court system comprised of three branches, civil, criminal and Shariah.

The highest court, Abu Dhabi Supreme Court, is located in Abu Dhabi. The emirates of Dubai

and Ras al-Khaimah have their own local and appellate courts, which have jurisdiction over all

matters that the constitution does not specifically reserve for the federal courts. Dubai and Ras

Al Khaimah do not refer cases to the Abu Dhabi Supreme Court but rather, Dubai and Ras Al

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Khaimah have their own highest court (Court of Cassation) located within the respective

Emirate.

The UAE Courts are comprised of Court of First Instance, Court of Appeals and Abu Dhabi

Supreme Court or Court of Cassation (Dubai or Ras Al Khaimah). The Court of First Instance,

located in each Emirate, has general jurisdiction and includes the Civil Court, Criminal Court

and Shariah Court.

Following judgment by the Court of First Instance, parties have the right to appeal to the Court

of Appeals on factual and/or legal grounds. Notably, additional evidence including witness

testimony can be presented at the Court of Appeals. Following judgment by the Court of

Appeals, aggrieved parties have the right to appeal to the Abu Dhabi Supreme Court or Court of

Cassation (Dubai and Ras Al Khaimah) on matters of law only. The Abu Dhabi Supreme Court

also has jurisdiction over disputes between Emirates and disputes between the federal

government and an individual Emirate. Judgment rendered by the Abu Dhabi Supreme Court or

Court of Cassation is final and no further appeal is available.

Criminal actions in the UAE are commenced with the filing of a complaint with the local police

in the jurisdiction where the offense is alleged to have been committed. The police will then

commence an investigation which may include taking statements from relevant parties.

Generally, within 48 hours of filing the complaint, the matter is referred to the Prosecutor. The

Prosecutor then conducts an investigation, takes statements and gathers evidence. Following

investigation, the Prosecutor will then decide whether to refer the matter to court or decline to

press charges. This process generally takes 14 days though the Prosecutor may request an

extension of time from the Court. Defendants have the right to be present at trial and are

presumed innocent until proven guilty. Defendants also have a limited right to counsel.

The Shariah Court or Islamic Court handles civil matters between Muslims and has exclusive

jurisdiction over family matters including divorce, custody, guardianship and inheritance.

Labor Law issues

The UAE has four main types of Labor laws:

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a. Federal Labor Law – Applies to all the seven Emirates and supersedes free zone laws in

certain areas.

b. JAFZA Labor Law – Applies to the Dubai Jebel Ali Free Zone.

c. TECOM Labor Law – Applies to all Dubai Technology and Media Free Zone properties:

Internet City, Media City, Studio City and International Media Production Zone.

d. DIFC Labor Law – Applies to all companies in the Dubai International Financial Center

free zone.

Labor laws generally favor the employer and are less focused on the rights of employees.

The Ministry of Labor is criticized for loosely enforcing these laws, most notably late or no wage

or overtime payment for both blue collar and white collar employees. Free Zone labor laws are

friendlier to employees moving between companies unlike the Federal UAE labor law, which

automatically bans employees for a period of six months up to a year for leaving a company

before completing one year of employment. These kinds of laws discourage free labor

movement, and give employers an unfair advantage in salary negotiations.

U.A.E human rights

f. Providing more mechanisms to protect human rights, keeping up with national and

international developments, and updating laws and systems.

g. Meeting the state's expectations with regards to building national capabilities and deepening

efforts for education on human rights and basic freedoms through a national plan.

h. Striving to regulate the relationship between employers and workers in framework that

preserves dignity and rights, and is in harmony with international standards, especially with

regards to domestic help.

i. Increasing the empowerment of women's role in society, increasing opportunities for

involvement in a number of fields based on their skills and abilities.

j. Working to confront human trafficking crimes by reviewing the best international practices in

the field, working to update and improve the state's legislature in accordance with

international standards, working to establish institutions and agencies to confront human

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trafficking crimes, and working to support the foundations of international cooperation with

international organizations and institutions.

The GCC Common Customs Law distinguishes absolute import prohibitions from

restricted imports. In the UAE, absolute import prohibitions are maintained for various reasons,

including international conventions, environmental protection, health and safety, and religious

and moral considerations.

They cover all kind of drugs; asbestos; used pneumatic tyres; industrial waste; forged and

duplicate currency; Houbara falcons; ivory and rhinoceros horn; live camels; any printed

material that does not adhere to religion or morals or that is aimed at causing corruption and

disorder; or materials prohibited under any law in force in the country. All imports from Israel

are prohibited.

The UAE maintains export controls on certain products for safety, security and

environmental reasons, and to ensure compliance with international obligations under treaties

and conventions to which it is a signatory. Each emirate is responsible for its own export

promotional activities, which are coordinated by the relevant departments of economy.

SWOT analysis Of Indian engineering sector

Strengths

• Engineering is the largest sector in India. Which provide strength to grow export activity.

• Demand driven industry which means industry is so flexible so that it can be changed

according to the demand.

• Vast sector that ranges from mini projects to large collaborations.

• Excellent advancement in technologies

• Availability of abundant human resources.

• Geographically situated at ideal locations

Weakness

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• Long product development cycle

• Unprofessional working style

• Inadequate level of training of employees

• Lack of professionalism at top management

• Unorganized vendor base

Opportunities

• Huge potential for direct exports because of Indian government export policy.

• India is being looked upon as an outsourcing destination by global companies.

• The future for engineering sector is very promising. Power projects, other infrastructure

development activities, industrial growth, and favorable policy regulations will driveg growth

in industries.

Threat

• Exposure to global markets

• Fluctuating raw material prices

• Recession leading to delays/cancellations of projects

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Introduction

Business as usual

Despite the impact of the global financial crisis resulting in an inevitable contraction in 2009,

the UAE economy remains robust, shielded by significant overseas financial assets garnered

during the era of high oil revenues.

Substantial public expenditure, made possible by those assets, allied with strong fundamentals

and sound fiscal policies, has served to minimize the impact of the crisis and receding

petrodollar income on the UAE's economy, and is expected to speed up its recovery in 2010.

In particular, the government has pledged to maintain its investment budgets at high levels,

especially for core long-term infrastructure projects, in order to rekindle growth.

Reasons for Doing Business in UAE

Robust open and competing economy

The UAE has a vibrant free economy, a significant proportion of its revenues arising from

exports of oil and gas. Successful efforts have been made to diversify away from dependence

on hydrocarbons and a solid industrial base has been created, together with a very strong

services sector. The establishment of free zones has been an important feature of this

diversification policy and reform of property laws gave a major boost to real estate and tourism

sectors.

The Global Competitiveness Report 2010-2011 issued by the World Economic Forum (WEF)

has ranked UAE as 25th in the world for competitiveness.

The UAE has established the council of competitiveness to enhance the UAE efforts to achieve

sustainable development through the setting up of appropriate legislative frameworks and the

provision of developed infrastructure that will further enhance the country's status as a regional

and global destination for investments. The council continues its communication with

government agencies and the private sector through workshops and meetings, to help co-

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ordinate efforts and discuss ways to enhance the competitiveness of the state in areas of

governance, the regulatory environment for business and other areas.

Security and stability

Since its establishment in 1971, the UAE has enjoyed an enviable degree of political stability,

unequalled in the region. This has enabled the implementation of consistent sound economic

policies and the reinforcing of the country’s social structure to produce one of the most tolerant,

prosperous, secure and safest societies in the world. Dubai and Abu Dubai have been ranked

the top two cities in the Middle East region for quality of life, according to the latest edition of

a global survey. Long-time investors include a wide range of multinational companies

headquartered across the globe.

Tax-efficient business environment

Special economic zones and free zones offer 100 per cent ownership, repatriation of profit and

capital as well as exemptions from taxes. Outside of these areas, significant incentives are

being offered to investors and corporate governance provisions ensuring transparency and

accountability are being enforced. Corporate taxes are reserved only for branches of foreign

banks and oil-producing companies. A negligible 5 per cent tariff is imposed on goods

imported from non-Gulf Cooperation Council (GCC) countries, although tobacco and alcohol

products are subject to 50 per cent customs duties.

Proximity to growth regions

The UAE’s strategic location between Asia, Europe and Africa is a major advantage to

investors, particularly the country’s proximity to some of the world’s fastest growing

economies in Asia. Collectively India and China alone comprise almost 40 per cent of the

world’s total population and support a combined GDP in excess of US$5 trillion, providing

significant economic and trading opportunities.

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Intellectual property protection

Intellectual property, including patents and trademarks, is legally protected in the UAE and

considerable efforts are being made to implement these laws. The country is also a member of

international bodies, treaties and conventions that safeguard intellectual property, including the

World Intellectual Property Organization (WIPO), World Trade Organization (WTO), Paris

Convention, Patent Cooperation Treaty (PCT), WIPO Copyright Treaty, WIPO Performances

and Phonograms Treaty (WPPT) and the Rome Convention.

Solid infrastructure

Infrastructure in the UAE is second to none. Telecommunications, including mobile and fixed

telephony as well as internet access is on par, if not better, than the world’s largest international

business hubs. The road network is constantly upgraded and ports and airports are of world-

class standards. In addition, the UAE is creating one of the world’s biggest and most efficient

cargo handling centres. To date, the Government has invested heavily in infrastructure

development, but it has also opened up its utilities and other infrastructure to greater private

sector involvement, so much so that public-private partnerships are now the norm.

Multi-national human resources

Investors benefit from an abundant supply of human resource skills, courtesy of professionals

migrating to the emirate from nearly every country in the globe, as well as the increasing

number of UAE nationals that are joining the private sector.

Efficient government services

E-government websites, free zone authorities as well as chambers of commerce and industry

provide new entrants with helpful information and guidance.

Challenges being faced by the industry

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• Inadequate collection of raw hides & skins, and shortage of the raw materials (hides & skins)

to meet the requirements of the leather sector

Environment management in tanning sector, ZLD technology etc

• Lack of economies of scale vis-à-vis competing countries – absence of plants with huge

manufacturing capacities

• Modernization and expansion of production capacities in the sector

• Absence of Leather Parks in various parts of the country

• Inadequacy of sector-specific support infrastructure facilities at the clusters

• Shortage of trained manpower and need for skill development initiatives at larger scale.

• Need to attract Joint Venture collaborations and FDIs into the leather sector

Analysis of challenges and suggested interventions

Animal husbandry measures

The Leather industry is bestowed with an affluence of raw materials as India is endowed with

21% of world cattle & buffalo and 11% of world goat & sheep population. This also means that

we should put in place effective mechanism for back end operations.

During interactions with the CLRI, some of the concerns noted are Inadequate animal

husbandry measures which has a direct bearing on the animal health, Inadequate collection of

raw hides and skins & also decentralized system of collection, Delayed preservation and

eventual deterioration of quality of raw hides and skins, Inefficient and not-so-eco friendly

preservation system etc. Roughly about 20% of the raw hides and skins are left uncollected,

which is a national loss. Apart from inadequate collection of raw materials, poor animal rearing

practices and unorganized system of rawhide collection leads to deterioration of quality of

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rawhides and skins. These are the areas which need to be looked after by the CLRI for the

development of leather industry. he industry would urge the CLRI to discuss these concerns

and suggest possible solutions to the relevant Ministry in the Government of India for drawing

up of action plan in this macro level subject.

Brand creation and promotion

The major challenges are in creating larger capacities with world-class infrastructure and at the

same time marketing India’s strength to all brands and retailers.

Improvement in design and product development is more of an internal requirement for the

industry to achieve better unit value realization for their products. The industry with the support

of Technical Institutes and by engaging the services of world reputed designers to develop

newer designs replicating the latest fashion trends in order to present their best collections to

overseas customers. In this context, brand creation and promotion assumes greater significance

for building up the image of Indian leather products.

Technology Up gradation and Modernization

For the industry to be efficient and cost-effective; there is no alternative except to initiate

modernization of production facilities in the units on a massive scale on the one hand and

create substantial capacities on the other. Adoption of newer technologies coupled with

installation of modern state-of-the-art machinery and equipment in the production units is the

need of the hour. The best way to beat competition is to improve productivity and quality

consistency of our production and to provide the buyers with more services that make

procurement in India more attractive that in other competing countries. Both these call for

induction of the best available technology and processes. There is no escape from immediate

modernization of all segments of the industry. The modernization process should be

comprehensive so that the levels of productivity reach the best in the world. The Government

has been very supportive by implementing the IDLS Scheme which encouraged the industry at

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the enterprise level to go in for modernization, technology upgradation and expanding the

capacities.

India has the added advantage of having premier technical institutions such as Central Leather

Research Institute (CLRI) & Footwear Design & Development Institute (FDDI) which provides

vital inputs and technologies in the areas of product design and development, environment

technology, product testing etc. Most of our manufacturers of leather obtain latest technology

and processes from their chemical suppliers. Likewise, for footwear, garments etc, the

manufacturing technology is easily available from importers. There are a number of Training

Institutions imparting Training to workers in fabrication technology, many of them having

received adequate foreign expertise and inputs. What appears to stand between manufacturer

and latest technology is either lack of financial resources or willingness. There is no gainsaying

the fact that if the technology adopted by a factory is current and modern, the productivity,

quality consistency etc will be far better than those adopting outmoded technology.

Human Resource Development

One of the important areas of concern is from the human resources front. There is a need for

vocational training on a large scale so that a continuous supply of labor is available to the

industry at competitive wage levels. The margins are rather small in this sector, due to intense

competition. If the wage levels rise too high in parts of India, such areas could indeed become

uncompetitive via-a-vis other parts or other low cost countries. Being a labor intensive

industry, shortage of skilled workers is a major challenge. This needs to be addressed. Skill

development programmes have to be conducted nation-wide to train the workforce for the

leather industry, both fresh as well as existing workers. The technical institutions such as

FDDI, CLRI, CFTI, NSIC etc are conducting training programmes and churns out manpower

for the sector. There is need to strengthen the infrastructure in these Training Institutes and

establish branches of these institutes across the leather clusters.

In addition, it is proposed to undertake HR intervention through the mechanism of National

Skill Development Corporation (NSDC). The steps are already being taken to form the Sector

Skill Council (SSC) for the Leather Sector which will be a Section 25 Company under the

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Companies Act. The Council for Leather Exports has recently submitted a proposal to the

NSDC to set up a Sector Skill Council for Leather Sector so as to fulfill the existing skill gaps

in the leather sector, particularly in the area of shop floor level operations and give basic entry

level training on a mass scale. The objective is to provide about 2 million trained workforces

for the leather industry by the year2020, particularly for performing the shop floor level

operations. The SSC will facilitate the development of contents and curriculum for about 50

identified shop floor level operations and setting up of new training centres across the country.

Increasing the tanning capacity

India’s acknowledged strength in this industry has been its rich raw material resources, with

nearly 10% of global raw material being available in India. Hence, to meet the total turnover

(both domestic and export) of US $ 17 billion, India would require an additional 3 billion square

of leather to produce the leather products. This has two implications, namely, sourcing of raw

materials from wherever we could get and secondly enlarging the tanning capacity within the

country. The present capacity for tanning in the country is estimated at about 2 billion square feet

per year but a significant part of this capacity is found in micro and small scale tanneries. For the

industry to be efficient and cost effective, massive creation of additional capacities has to be

explored, at the same time taking all precautions for environmental management. It is pertinent

to mention here that a Leather Tanning Park is proposed to be established at Kothapatnam

village in Nellore District, Andhra Pradesh (earlier it was to be set up in Krishnapatnam). The

Government of Andhra Pradesh is promoting this Park and a SPV has already been formed. The

Government of Andhra Pradesh has earmarked a total area of 536.88 acres of land for the

establishment of the Tanning Park. Out of which, the SPV has already taken possession of

358.97 acres of land during Dec 2011. The industry eagerly looks forward to the formal

announcement of the Tanning Park project, with Industrial plot layouts and costs so that

interested companies may apply for allotment of plots in the Park

PROCESS

4 types tanning process namely –

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i) Vegetable Tanning,

ii) Chrome Tanning,

iii) Boiling,

iv) Rawhide Treatment.

The Tanning process type is chosen based on the leather requirement.

Vegetable tanning is chosen when the client wants to produce flexible, but stiff leathers, such as

those used in luggage, furniture, leashes, belts, hats, and harnesses. Its higly irrestable to water; it

tends to discolor, and if left to soak and then dry it will shrink and become less supple and

harder.

Chrome tanning is a kind of leather tanning that uses salts to tan the leather. Used mainly for

creating softer, stretchier leathers, such as those found in purses, bags, briefcases, shoes, gloves,

boots, jackets, pants, and sandals. It also can be tanned in different colors and vary by shades of

brown.

Boiling process produces a kind of leather that is not traditionally used for clothes, upholstery

etc. The boiling process produces a hard leather, and is most often used as a binding material for

books.

Rawhide is a process where the animal hides are stripped down, becoming thin and rough. They

are then soaked in a solution containing lime and then stretched. Rawhide is used for shoe and

other types of laces, as well as drum heads.

PRODUCT

UAE is one of the leading Finished leather manufacturing company TMS Leather’s range

includes Full Aniline and Semi Aniline finishes in, Sheep, Cow and Buffalo. Buffalo leather is

stronger than cow and has a special grain pattern. Various leather types that are normally

finished in buffalo at more competitive price level. We are capable of exporting finished leather

items as per your need, without any harm, in any quantity and are capable to meet your import

requirements round the year.

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Full-grain leather refers to the upper section of a hide that previously contained the epidermis

and hair, but were removed from the hide/skin.

Full-grain refers to hides that have not been sanded, buffed, or snuffed (as opposed to top-grain

or corrected leather) in order to remove imperfections (or natural marks) on the surface of the

hide. The grain remains in its natural state allowing the best fiber strength and durability. The

natural grain also has natural breathability, resulting in less moisture from prolonged contact.

Rather than wearing out, it will develop a natural patina over time, with some cracking and

splitting. The finest leather furniture and footwear are made from full-grain leather. For these

reasons, only the best raw hide is used to create full-grain leather. One way to test if leather is

full-grain is to lightly scratch its surface with your nail. If it leaves a lighter-colored streak, it's

full-grain.

Full-grain leathers are typically available in two finish types: aniline and semi-aniline.

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Full-grain leather refers to the upper section of a hide that previously contained the epidermis

and hair, but were removed from the hide/skin. Full-grain refers to hides that have not been

sanded, buffed, or snuffed (as opposed to top-grain or corrected leather) in order to remove

imperfections (or natural marks) on the surface of the hide. The grain remains in its natural state

allowing the best fiber strength and durability. The natural grain also has natural breathability,

resulting in less moisture from prolonged contact. Rather than wearing out, it will develop a

natural patina over time, with some cracking and splitting. The finest leather furniture and

footwear are made from full-grain leather. For these reasons, only the best raw hide is used to

create full-grain leather. One way to test if leather is full-grain is to lightly scratch its surface

with your nail. If it leaves a lighter-colored streak, it's full-grain. Full-grain leathers are typically

available in two finish types: aniline and semi-aniline.

Top-grain leather is a misnomer: it gives the false impression that it is "top" quality. In fact,

full-grain is the highest quality. Top-grain leather is the second-highest quality. Its surface has

been sanded and refinished. As a result, it has a colder, plastic feel, less breathability, and will

not develop a natural patina. However, it does have 2 advantages over full-grain leather: it is

typically less expensive, and has greater resistance to stains.

Corrected-grain leather is any leather that has had an artificial grain applied to its surface.

The hides used to create corrected leather are of inferior quality that do not meet the high

standards for use in creating vegetable-tanned or aniline leather. The imperfections are

corrected and an artificial grain applied. Most corrected-grain leather is used to make

pigmented leather as the solid pigment helps hide the corrections or imperfections. Corrected

grain leathers can mainly be bought as two finish types: semi-aniline and pigmented.

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Split leather is leather created from the fibrous part of the hide left once the top-grain of the

rawhide has been separated from the hide. During the splitting operation, the grain and drop

split are separated. The drop split can be further split (thickness allowing) into a middle split

and a flesh split. In very thick hides, the middle split can be separated into multiple layers until

the thickness prevents further splitting. Split leather then has an artificial layer applied to the

surface of the split and is embossed with a leather grain (Bycast leather). Splits are also used to

create suede. The strongest suedes are usually made from grain splits (that have the grain

completely removed) or from the flesh split that has been shaved to the correct thickness. Suede

is "fuzzy" on both sides. Manufacturers use a variety of techniques to make suede from full-

grain. For example, in one operation, leather finish is applied to one side of the suede, which is

then pressed through rollers; these flatten and even out one side of the material, giving it the

smooth appearance of full-grain. Latigo is one of the trade names for this product. A reversed

suede is a grained leather that has been designed into the leather article with the grain facing

away from the visible surface. It is not a true form of suede.

APPLICATIONS

FURNISHING

Because soft, even-grained leathers can be obtained that are resistant to light and/or to the

fogging test in case of car furnishings.

CLOTHING

Because soft, lightweight leather can easily be obtained.

FOOTWEAR

Because thermal and physical resistances are comparable to, or even exceed, those obtained

with chrome leathers.

LEATHER GOODS

Because with special adjustments during re-tanning reactive leather similar to vegetable leather

can be obtained.

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SMALL LEATHER GOODS

Because it is an advanced though low-cost process.

MECHANICAL LEATHERS

For the high physical resistances it imparts to finished leathers.

AUTOMOTIVE

Because an exceptional light weight leather with physical properties can be achieved.

SWOT ANALYSIS

STRENGTHS

• India is the leading player in the market of personal leather articles with a share of 64.4%

• In India case, most of the growth in exports of personal leather articles to UAE has come

about in 2000. From US$ 1.8 mn in 1999 Indian exports of personal leather product to

UAE shot up by 84% to U8$ 3.4 mn in 2000.

• India however continues to be the largest player in the UAE market for leather apparel

with a share of 25.7%.

• UAE's imports of these leather products have declined from US$ 2. 9 mn in 1996 to US$

2.1 mn in 2000. India, the largest player in this market has been adversely affected with

its exports of these leather products to UAE declining from US$ 1.5 mn in 1996 to US$ 1

mn in 2000. However, its market share remained largely unchanged at nearly 50%.

• UAE's imports of these leather products have declined from US$ 11.3 mn in 1996 to US$

7.1 mn in 2000. This is largely on account of a decline in imports from Italy and UK. In

contrast, UAE's imports of these leather products from India rose from US$ 2.1 mn in

1996 to US$ 2.8 mn in 2000.

• India has increased its share of this market from a mere 2.3% in 1997 to 33.6% in 2000.

WEAKNESSES

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• Under the current global economic crisis, leather companies are struggling to survive.

Many companies opt to reduce their capacities due to stagnancy during the crisis.

• China is the leading of all prominent countries in the leather industry.

OPPORTUNITIES

• During the same period, Italy's share has declined from 37.5% to 21.1 % and UK's share

has declined from 15.1% to 13.3%.

• India, the third largest player in the UAE market for leather handbags, enjoys a market

share of 14.2% after France and Italy.

• Free trade zone and also relative ease of business start up exists.

• the necessity of certain activities such as increasing the export potential, concentrating on

marketing activities, giving more importance to branding and endeavoring for

international marketing by penetrating into new markets have been identified for

overcoming the crisis.

• China is the leading of all prominent countries in the leather industry. India and Hong

Kong are among the other rivals.

• Cheap and widely available labour can be utilised well in order to move to first position

from third position

THREATS

• Spain and USA have managed to increase their exports of these leather products to UAE

during 1996-2000, resulting in an increase in their market shares.

• India doesn’t focus much on branding whereas Turkey has been focusing on branding

since past 10 years.

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PESTEL ANALYSIS

• Political

– 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.

– The rulers of Emirates encourage International trade and also help sustain healthy

relations, peace and integrity.

• Economic

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– 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.

- The relatively liberal economic policies of his predecessor: privatization of some

government assets; provision of incentives for foreign and domestic private

investment; avoidance of a national income or sales tax; and curtailment of both

money laundering and the use of the banking system to foster terrorist activities.

• 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), 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.

LEATHER INDUSTRIES IN INDIA

The leather industrial sector comprises of tanneries (where raw hides and skins are converted

into leather) and factories converting leather into a variety of consumer products such as

footwear, garments and outerwear, and assorted leather goods such as wallets, passport cases,

167

key chains, handbags and briefcases. Apart from the quality of raw materials, the process of its

conversion into leather and later, of the design, product development and the manufacture of

products, play a key role in adding value to it.

The industry is spread all over the country.

While tanning is broadly distributed among -

Tamil Nadu (55-60%),

Kanpur (12-15%),

Kolkata (18-20%) and

Jullunder (5-7%),

the footwear industry is concentrated in

Agra,

Kanpur,

New Delhi and

surrounding areas of Haryana and UP, Chennai, Ambur and Ranipet.

Mumbai and Kolhapur area used to be strong in some types of footwear in the past but of late

their importance as a production centre has declined. Kolkata and surrounding areas produce a

sizeable volume of footwear for the domestic market.

Leather garments are concentrated in Delhi and Chennai, while leather goods are dominant in

Kolkata, with Chennai and Kanpur also producing some volumes.

The global trade in leather and leather products has been following a predictable pattern over the

past three decades.

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The global trade was a mere 4 billion US dollars in 1971. It rose to 16 billion US dollars in 1984

and it stood at 68.57 billion US dollars in 2003 (excluding non-leather footwear).

To understand the reasons for the dramatic rise in global trade, one has to appreciate that leather

and leather products continue to be consumed in large volumes in developed countries like the

USA, Europe, Australia and Japan. Until these countries could meet

their own requirements, developing countries of Asia used to be suppliers of raw material to

them. But since the late 1970s and through the 1980s the leather industry in all except a handful

of developed countries, virtually closed down primarily because of rising wage levels. This gave

an opportunity to developing countries, particularly of Asia to pump investments into this sector

and manufacture leather products, especially footwear and leather goods, in order to meet the

requirements of these developed countries. In the first decade of this century, a complete reversal

of roles took place – developed countries have become exporters of raw material and the

developing countries, exporters of value added leather products.

There is hardly any footwear produced in the USA; more than 80% of requirements of footwear

in most of the EU member countries (except Italy and Spain) are imported.

A similar situation prevails in respect to other leather products such as leather outerwear, gloves,

handbags, wallets, etc. It can be stated with a high degree of certainty that this situation is

irreversible.

Major Importers of Indian Leather and Leather Products

Sr. No. Country/Region Share

1 European Union 60%

2 USA 12%

3 Hong Kong 11%

4 UAE 2%

5 Australia 1.5%

169

170

CONCLUSION

As from the above we conclude that U.A.E is having advanced technology, economically they

are very strong and the legal affairs are very strict. People are very hardworking and innovative.

During last five decades, EEPC India has been playing a pivotal role in increasing country’s

engineering exports and as of date, engineering exports stands at US$ 34 billion in the year

2009-10 in comparison to US$ 10 million that was achieved in the year 1956-57. Engineering

exports have been registering steady growth each year and has registered a growth of 33% during

2006-07 over the previous year.

Export of engineering items to GCC region during the period 2010-2011 stood at US$ 8194.53

million compared with US$ 4014.08 million during the same period of the previous year,

registering an overall growth of 104.14 per cent.

India is expanding their shares in engineering goods and exporting to the foreign countries from

the above data we can interpret that the growth is increasing day by day earlier in the 2010 it was

approximately 34000 while it increases towards 50000 us million dollar.

UAE holds special significance for India. UAE is India’s top trading partner in the whole of

West Asia and North African region, representing nearly 42.50% of India’s exports to the GCC

countries. Indian exports to the UAE account for approximately 7% of its global engineering

exports. India UAE relations reflect in their business. It is expected that in 2013-14 year exported

increase to 43% from last year.

India’s exports of engineering goods have grown at 28% (CAGR) during 1999-2000 to 2008-09.

In FY10, it declined by 18.7%because of global recession, with a fall in its share in total exports.

Engineering exports have bounced to touch US$ 59.78 bn in FY11, recording a growth of 84%

over FY10 and 48% above 2008-09 exports. Therefore, exports of engineering goods have seen a

steady rise from 1999-2000 to the first half of FY12 growing by 84% and 43.6% in FY11 and the

first half of FY12 respectively. This was mainly due to faster growth of two major items

machinery & instruments and transport equipments besides residual engineering items with very

high growth rates. The share of engineering goods exports to total exports have increased from

11.9% in 1999-2000 to 23.8% in FY11.

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As we can say that there is growing opportunity in every sector. In the food grains, textile, Gems

and Jewellery, leather, tourism in UAE in concern with India. So we can say that in each and

every sector India should try to maximize the exporting increases the opportunities as we had

discussed in the project

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www.india-exports.com/agro.html

catalogs.indiamart.com › Food & Beverages › Cereals & Food Grains

www.dsir.gov.in/reports/ittp.../AF_Farm_Grains_Cereals_Intro.pdf

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oryza.com › Rice News

www.iocee.com/foodgrain.htm

www.india-exports.com/agro.html

http://www.the-links-group.com/

https://www.abudhabi.ae/

http://www.government.ae/

http://www.uaeinteract.com/government/links.asp

http://sbcuae.se/index.php?option=com_content&view=article&id=104&Itemid=178

http://www.ugagolf.com/

http://www.futurelinkuae.ae/

http://www.thenational.ae/news/uae-news/health/ministry-looks-into-uae-links-with-qatari-h1n1-death

http://www.ameinfo.com/280016.html

http://www.dubai-business-school.com/resource-links/