Group Exercise Four
UAE in the Global Business Environment
(MBA – ECON 605)
Page. 1
Group Exercise Four
Part A: PESTLE Analysis of the UAEUsingthePESTLEanalyticaltool,considerthefactorswhichwillinfluenceMultinationalNationalCompaniesindecidingwhetherornottoinvestintheUAE.ThesemayrepresentopportunitiesorthreatstomakinganinvestmentintheUAE.Listatleasttwofactorsundereachofthefollowingareas:
Factor CouldincludeintheUAE
Political 1.............................................
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Economic 1.............................................
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Social 1.............................................
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UAE in the Global Business EnvironmentGroup Exercise Four
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Technological 1.............................................
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Legal 1.............................................
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Environmental 1.............................................
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Part B: Amending the UAE’s Company Law – Group and Class Discussion
Asagroup,decidewhetherornotyouthinktheUAEshouldpermitforeignbusinessesandinvestorstoownmorethan49%ofabusinessoutsideoftheFTZs(consultexhibit1)attheendofthesessionbepreparedtodiscussyouropinionswiththerestoftheclass.
Yes|NoWhy?:.................................................
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1. InwhatwaysmightsomeexistingEmirati‐ownedcompaniesbethreatenedbygreater
exposuretoforeigncompetitioninthedomesticmarket?
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2. Fromanefficiencyperspectivesuggesttwoadvantagesthatmayarisefromallowing
greaterforeignownershipofbusinessesintheUAE:
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UAE in the Global Business EnvironmentGroup Exercise Four
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3. TheUAEMinistryofEconomyhasaskedyoutosuggestthreesectors/industriesinwhich
foreignownershipshouldnotincreasefromthecurrent49%andthreeinwhichitshouldbe
permittedtoincreaseto100%.Foreachexplainwhytheyshouldbeprotectedornot.
Protect(keeplimitat49%foreignownership) Open(permit100%foreignownership)
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UAE in the Global Business EnvironmentGroup Exercise Four
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Exhibit 1: