multinational corporations (mnc)
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Multinational Corporations (MNC)Multinational Corporations (MNC)UAEUAE
What’s a MNC ?What’s a MNC ?• A MNC ( Multi National Company ) is a company that operates or
has assets in more than one country.
• As the operations of a large sized firm expand and as it’s international image builds up it seeks more and more extension of it’s activities beyond the physical boundaries of the country in which it is incorporated.
Benefit of an MNC? -To, UAE-
• Employment Opportunities
• Updating of current technology
• Use of local Services
• Raise in standard of living
• Better Foreign Exposure, Culture.
• Increase in FDI ( Foreign direct Invst. )
Why MNC’s select U.A.E ?
• Laws are liberal compared to other countries in the middle east
• Central Location
• willingness of its leaders and citizens to cater to a diverse clientele.
• Standard and lifestyle of living.
• Access to a diverse market
• Ranked 33 in Ease of Doing Business Index
Why MNC’s select U.A.E ?
•Ease of hiring foreign labor: rank #1
•Quality of air transport infrastructure: #4
•Cost to import: rank #5
•Cost to export: rank #6
•Quality of port infrastructure: rank #8
•Quality of roads: rank #9
•Timeliness of shipments in reaching destination:
rank #17
2009
51% rule and other Obstacle ?• There are 2 ways in which a company can enter the U.A.E market. Those are…
• A) 51 % of the business must be owned by a local partner giving them revenue and greater
control over the company
B) Businesses needs to find a UAE citizen that is willing to sponsor them. In exchange for this
sponsorship, the company provides the citizen upfront with a bulk
sum of money and then gets to keep all its future revenues. (popular 1)
Outside the Free Zone
MNC’s In Dubai !
Jebel Ali Free Zone
• Established February 1985
• Largest Man Made port in the world.
• Modern and efficient hub
• Discharged at terminals at Jebel Ali or Port Rashid in Dubai City
• More than 2350 companies from over 100 countries all over the world
Jebel Ali Free Zone
Jafza offers unique benefits for businessmen
• Open market to international market
• 100% foreign ownership
• No personal income tax
• 100% repatriation of capital & profits
• No currency restrictions
• No recruitment problems
Dubai Airport Free Zone
• Established in 1996
• Fully independent authority
• Ideal location for IT Products, Luxury items, Jewelry and aviation
industries
• Already has 141 companies
Dubai Airport Free Zone
• 100% foreign ownership
• No personal income tax
• 100% repatriation of capital & profits
• No currency restrictions
• No import duties
Dubai Internet City
•A dynamic international community of ICT companies has established
itself in DIC.
•The global ICT giants are all here
Microsoft, Oracle, HP, IBM, DELL, Canon, Sony Ericsson and Casio etc……
Dubai Media City
Knowledge Village
• Seeks to provide the right conditions for the development of scholarships,
education, training and innovation. It offers campus ambience with creativity
and welcoming spaces for students, teachers, instructors etc.
• A wide range of organizations will find KV the ideal base for their operations.
MNC’s In Abu Dhabi
Robust Economy
Abu Dhabi’s GDP nearly touched $100 billion in 2006. The emirate has achieved an average GDP growth of 25% per year since 2002, Abu Dhabi is casted among the world’s wealthiest countries or city states such as Luxembourg, Ireland and United States.• Political Stability
Hereditary rule in Abu Dhabi ensures that its economic the agenda are broadly insulated from fickle political issues.
It’s geographic location and its forward-looking economic policies have won the confidence of neighbors as well as those of numerous Western countries.
MNC’s In Abu Dhabi
• Proximity to Growth Regions
Abu Dhabi offers proximity to the world’s fastest growing regions namely, Asia, Europe and Africa.
Collectively these regions comprise over 3.2 billion people with a collective GDP in excess of $18 trillion.
• Intellectual Property Protection
The UAE has existing laws that protect against infringement of intellectual property. The country is also a member of international bodies, treaties and conventions that protect the same, namely, World Intellectual Property Organization (WIPO), World Trade Organization, Paris Convention, Patent Cooperation Treaty (PCT), WIPO Copyright Treaty, WIPO Performances and Phonograms Treaty (WPPT) and the Rome Convention.
MNC’s In Abu Dhabi
• Infrastructure
Communications infrastructure such as mobile and fixed telephone as well as Internet access is on par, if not better, than the world’s biggest international business hubs. The emirate’s logistics infrastructure is undergoing a massive upgrade designed to create one of the world’s biggest and most efficient cargo handling centers.
• 100% Repatriation of Profit and Capital
The newly-formed industrial clusters in Abu Dhabi’s special economic zones ensure zero-risk in the repatriation of capital and profits, besides 100% business ownership and tax holidays.
Conclusion
Since UAE serves as a connecting business hub to the rest of the world most the companies
always seeks for opportunities to enter this market in which emirates such as Dubai & Abu Dhabi
play a major role in providing a platform for businessmen and provides complete support to setup
a business.
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