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United Arab Emirates Essay

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Market Analysis- United Arab Emirates Located in Western Asia at the South-East end of Arabian Peninsula on the Persian Gulf is the oil-rich economy viz. United Arab Emirates (UAE). The demographic of the economy consists of 11.6% Emiratis, as much as 59.4% South Asian (including 38.2% Indian) and 29.1% others (2015 est.). The economy constitutes young population with majority of the population between 25-54 years of age (61.27%) and about 96% are aged below 54 years of age. Dubai, Abu Dhabi and Sharjah account for 85% of the total UAE population. UAE is 16th most competitive economy (Global Competitiveness Report) and is ranked 26th in ease of doing business (Doing Business 2016). The standard of living in UAE is one of the highest in the …show more content…

The real value of the tourist receipts rose by about 9% and is expected to increase by about 7% going forward. The non-oil sector has steadily expanded as part of intended diversification in the economy especially Abu Dhabi which is under diversification program i.e. boosting non-oil sectors of its emirate, as on date accounts for 48% of the total GDP. UAE has attracted about $74 billion FDI over last 4 decades, second highest among Arab countries after Saudi Arabia. Also, the economy is inclined towards increasing the manufacturing sector apart from the oil industry. The manufacturing sector accounted for about 10% in its GDP, however, projected a growth of 7%. The government derives about 65% of its revenues from oil sales at the moment. E-commerce ecosystem in UAE: UAE is known for its brick and mortar shopping (mall shopping) in world. However, retail online sales accounts for about 1.5% of the total retail sales which is mainly inclined towards electronics, computers and jewellery (including watches). It’s observed that 46% of UAE online shoppers are from Dubai. 34% of the population does online shopping between 3-5 times a week. Following points are in support of E-commerce in UAE is an untapped potential industry: a. The e-commerce market as on 2014 was valued at $2.5 billion which is expected to touch $10 billion by 2018 and $20 billion by 2021. b. As per McKinsey and Company,

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