United Arab Emirates International Marketing, UAE - A hub of business operation

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united arab emirates, UAE, international marketing, business operation

united arab emirates, UAE, international marketing, business operation

International marketing is simply defined as the application of the marketing principles to more than one nation; it is also called the global marketing. It can also be explained as the process where two countries exchange goods and services. Globalization is considered to be the main aspect which has contributed to the international market, it entails the procedures and process of an interrelationship between two independent states.

The United Arab Emirates perceived to be a hub business operation in the middle each and some parts of the world, especially for the financial providers. UAE is the federation of the seven great Emirates named as the Abu Dhabi, Umm Al Qaiwan, Ras Al Khaimah, Dubai, Fujairah, Sharjah, and Ajman(Sintonen, Tarkiainen, & Cadogan, 2016). The federation was founded in 1971 and it is one of the active member of Gulf Cooperative Council whose purpose is to ensure that whole region is promoted with the international marketing principles as well as the existence of the sustainable business environment.

The United Arab Emirates is considered to have an estimation of 9% of the world oil reserve and 5% of the proven gas reserves. According to the World Trade Organization, the United Arab Emirate is the wealthiest nation in the world with a GDP growth in 2012, which approached $50,000. In the year 2016, the country per capita income is estimated to be same as the 313% of the world average. The GDP per Capita in UAE is averaged to be 67132.39 USD; this is the same as 2%. According to Trading Economics global macro models, the country GDP is estimated to have a growth rate of 2.4 % and it is  predicted to be 4.5% in 2020.

The United Arabs Emirate in well-known for technological advancement, making it be the economic hub for the Middle East and beyond. The country infrastructure is also considered to promote the development of UAE toward a lining with the international trade and marketing strategies. The resilient development of infrastructure in UAE is seen to be a pivot of international trade and marketing(Pauwelyn, 2016). The international marketing and related strategies oblige that, a competitive economy is one that has exceptional government leadership as well as abiding by the world trade organization policies. The United Arab Emirates has embraced their knowledge by encouraging the non-oil sector to contribute towards the regional economic development, the non-oil sector indicates 69% growth rate in 2014, and it was considered the be the best sector with a great positive growth and development.

International Marketing Environment

The International market environment comprises the fundamental aspects which determine the business relationship between countries. It can also be explained as the combination of a vital factor which is external to the operation organization, and that these factors may affect the international marketing decision of the organization in an international market.The United Arab Emirates is one of the world's fasted growing environment for business operation, tourism now becoming the hot cake for the economic development. The country is classified by the International Monetary Fund as the high-income developing economy in the world, the economic growth and development of  UAE are primarily contributed financial and commercial service companies , Abu Dhabi Islamic Bankbeing the best recognize company in the region.(Souchon & Oliveira, 2016).

Population in UAE is estimated to be 4,975,593, whereby 20% of the total populations are the people from within the region and the rest that are 80% are the expatriate. Based on this information, the international marketing strategies encourage the country to employ staff from other countries.  United Arab Emirate has a vibrant economic growth and development, which act as the fundamental proposition of its revenues arising from the export of oil and gas. The country has implemented on the international marketing strategies of diversifying the dependence of hydrocarbons production, as substantial alternative organizations in the region are encourage to engage themselves in service sectors. From the above feature of the UAE business environment, the country is having a free zone of business which allows substantial room for diversification.

Political Environment

The political environment is described to be the government activities, which affects the operations of the business organizations. These government activities may include regional, regional or the international levels. The organization's business management has the mandate as well as the responsibility of paying attention to these factors since they may affect the achievement of the strategic goals and objectives of a business.

United Arab Emirate has sustainable political environment that allows the growth of the business organization, which intends contributes towards the economic growth and development. UAE has become a model of the political stability even at the time when some of the nation are experiencing political unrest despite the presence of the large percentage of the population made from the foreign nations(Sintonen, Tarkiainen, & Cadogan, 2016).

According to the recent report provided by Abu Dhabi-based Emirates Centre for Strategic Studies, the international institutions have served to give credibility to the regional political status which promoted by the strong cohesion between the regional leadership as well as its openness and inclusive decisional making process. The United Arab Emirates leadership is keen on ensuring that it delivers the importance of independent development strategies to all the emirates without any discrimination. Apparently, the regional leadership is concerned with the comprehensive decisional making process that includes decisions made on the economic, social environmental and the political aspect.

The research indicates that the regional leadership is the concern with the strategies that promotes the political stability and the social harmony, this is by promoting the general acceptance of others and eliminating the rejection and violence relates factors. In promoting the political stability, Abu Dhabi-based Emirates Centre for Strategic Studies indicates that the interaction between the UAE government people and regional leadership represents one of the vital strategic approach of promoting stability in the region(McGovern, 2016).

Major policies/orientations towards international trade

The international trade policies are explained to be standards, guidelines and regulation that reflects the trade relationship between countries, these important policies are considered specific depending on each country, and are formulated by the government officials. The main purpose international trade policies are to ensure that nation is having a robust trade relation that supports the economic development of each nation. For instance, a nation may formulate trade policies such as the taxed which are imposed on the imported and the exported commodities, the inspection regulation policies, and quotas and tariffs.

The United States political leadership is observed to operate within the substantial broad of foreign policy platform which was established by the founding president of the United Arab Emirates federations. The international approach that was proclaimed by the president was to promote diplomacy, negotiation as well as the willingness to help those countries that are fortunate. The United Arab Emirates has ensured that it promotes the security sustainability to the foreign business operators as well as singing with them business deals and operations(Pauwelyn, 2016). In achieving the specific goals and objectives, the region has an emphasis on the respect of all people in the region despite large percentage being the expatriates.

However, the United Arab Emirates government has implemented on the international trade policy of condemning the brutal business strategies that used by different groups and organization in the name of Islam, the government has to ensure the investors that it does not have any connections with such groups and instead it calls them for general acceptance.In the United Arab Emirates, the international trade policies are focused on the tariff, where any country have a right to impose taxes to commodities imported and exported, UAE have impose no levy on imported goods thus encouraging more foreign investors. Safety policy in UAE has a purpose of ensuring that the quality goods are imported to the country where inspection for the imported products is done.

Major laws and regulations

The international trade requires countries to have the better trade relationship, which will allow them to enter into bilateral business talks. UAE is among the nation that has developed and thus having an open economic. In the current international market, globalization is the backbone that requires the nations to depend on the proactive trade policies that will reflect the market changes. Laws and regulation comprise the guidelines and international market principles control the trade operations in a particular country(Koutrakos, 2015).

Export control laws

The UAE export control laws and regulation are the international marketing principles which were initiated by the federal government in relation to the importation and exportation of commodities. The law prevents the trading operations which may involve trading of illicit of illegal good, some individual or companies may engage in illegal business practices. In 2007, the UAE government enacted on the stringent export law and regulation laws that impose stiff penalties for the parties involves in the products diversion or other illegal shipments of products(Koutrakos, 2015).  In promoting its performance, the Abu Dhabi Islamic Bank does not allow its financial services to be linked with the illegal activities.


The United Arab Emirates have exercised its international trade right of imposing taxed on the imported and exported goods. The decision made by the UAE government imposing heavy leave to imported and exported goods promoted the development of an international market in UAE as it promotes healthy nation. For instance, the government imposes 5% levy on the imported good, 50% and 70% for the tobacco and luxuries products(McGovern, 2016).

Monetary barriers

The monetary barriers are explained to be the substantial aspects that prevent the business operators to exchange their currencies in order to have the UAE money. The UAE government while promoting the international trade has primarily imposed on regulation that prevents the specific organization from currencies exchange. In doing so, the govern freezes the accounts of group of organization which is linked with terrorist groups, the Abu Dhabi Islamic Bank is part of the institutions which fights terrorist groups and their activities by not allowing them to open their business accounts in within their operations.

Major trade partners

The United Arab Emirates is known as the business hub the Middle East and beyond, the technological advancement, economic growth and development, and infrastructure are the main indicators which encourage many countries to enter into bilateral talks with the UAE federal government.  UAE is a developed country because of its infrastructure as well as the application of modern technology in the production process, however, the country may also require other product which is used in building infrastructure or used during the production process(Sintonen, Tarkiainen, & Cadogan, 2016).

Many nation have sung the business bilateral deals with the federal government of UAE. The main importer includes China 15.5%, India 12.7%, the Unites Kingdom 4.5%, Germany 6.7% and the United States of America with 10%. On the other hand, the same countries are considered buyers of the company raw material, particular the oil and gas reserve which have contributed to the spontaneous economic growth of the federal region. The country export an estimation of more than $ 300 million annually while it has imports estimation of mce_markernbsp; 186.5 million, this indicates that the country economic sustainability is consistent and can allow the other partners to do business with the country.

Major imports and exports

Since the country shows that, it is the 25th largest exporter in the world, the UAE also has one of the complex economies in the world basing on the economic complexity index. This successful economic diversification plan, the UAE Government has succeeded to attract foreign entrepreneurs seeking for developments and expansions opportunities in the Middle East. Base on the above statement the country has ensures the maximum exportation of petroleum which is the main export produc(Al-Ansaari, Bederr, & Chen)t. 

The top exported product from the United Arab Emirates to the other countries in the world market includes Refined Petroleum $21.8B, Gold $13.1B, Crude Petroleum $85.9B, Petroleum Gas $14.5B and diamond $6.36B. This estimation is drafted according to the HS, Harmonized System classification.

On the other hand, the country seeks to import other commodities, which it has not produce in large quality, or it cannot produce completely. In UAE, the imported product indicates $ 186.5 million. The products imported includes jewelry, the broadcasting Equipment $13B, Gold $9.9B and the refined petroleum $11B(Pauwelyn, 2016).

Business customs and practices

Business customs and practices comprise the organization principles of carrying out the business operation in a particular market. The international market principles and guidelines proclaim that foreign business organization should abide by the existing custom as well as ensure that it carries out the ethical business practices. In the United Arab Emirates, the Abu Dhabi Islamic Bankand other relevant authorities have played their mandate of ensuring that all the foreign investment are familiar with the Arabic customs and other related business practices. The Abu Dhabi Islamic Bank is a company that is focus in ensuring that it abides by the business customs and practices of the UAE region and in all its branches in the international market.

Relationship with the U.S. and European Countries

United State and European countries are considered to bethe influential continents  which determines the world economic standards. These two regions have consistent economic standards that influence other small nation in the international business market. UAE and EU have developed a diplomatic business relation which is centered on the political and the religion interest. The EU opened a proactive delegation meeting in Abu Dhabi in 2013; this was a testimony as well as an indicator of full commitment to strengthening the bilateral corporations. The United Arab Emirates also hosted 22 EU countries; this was under the existing EU-Gulf Cooperation Council (GCC) Cooperation Agreement, whose main purpose was to build a coherent regional relationship(McGovern, 2016).

Likewise, to the US, the United Arab Emirates have entered into business agreements with the US government based on the business operation and centered on the political and the regional interest. For instance, the US government and UAE signed a trade investment agreement that was used to established as well as promoting the trade and investment relationship between the two countries(Al-Ansaari, Bederr, & Chen).

Marketing Operations of an International Firm

Abu Dhabi Islamic Bankis a multinational company that has segmented its operation to different parts of the world; the company has embraced the international marketing principles by extending its operation in the entireMiddle Eastregion. The company has built its success by consideration the essential marketing approaches and strategies that will ensure their achievement process of strategic goals and objectives. The company has also ensured that they use the strategic management tools such as the SWOT Analysis,PESTEL. The SWOT analysis will allow the company to evaluate and maximize the strength, reduce the weakness, innovate and identify new opportunities as well as selecting the possible alternative solution to the business threats. The PESTLE analysis helps the company to identify and scrutinize all the external, political, economic, social, technological, legal as well as the environmental aspects that might affects the business operations in its substantial markets. By considering these all factor the management will be in a position to ensure that they make a substantive decision that will positive influence the operation of the company.

Marketing strategy refers to the process that the company is following in order to focus on the foreign market. The marketing strategy that the Abu Dhabi Islamic Bank is based on its pillars. The first strategy is embedding itself to be the market leader in UAE, this is by developing its primary customer services, personal, business and wholesale banking, the company is supporting banking activities as well as the wealth management. The process of training personnel who promotes better customer service is encouraged by the company.Target market reflects the alternative market that the bank is focusing to venture into. Abu Dhabi Islamic Bank is converging on the international marketing opportunities, the company success is perceived to open new branches in line with the growing acceptance of the sharia-compliant financing.  By replicating its business approaches through the substantial and systematic geographic expansion, this represents a useful route to growth and development for the company. However, the company differentiation is base and define by the its operation based on fully abiding by the sharia-compliant polices, many institution may fail to abide by this international policy because they only focus in profit making.


International marketing is simply defined as the application of the marketing principles to more than one nation, it is also called the global marketing, it is also explained as the process where two countries exchange goods and services. UAE is considered as the business hub for the Middle East and beyond, the federal government of UAE has encouraged the implementation of the international market and trade through the imposition of the laws and regulations. Abu Dhabi Islamic Bank is one of the company which has implemented and executed on the international marketing principles, this implementation has allowed to the company to have good and reputable image in the international financial providers.

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