Macro Environment Analysis on UAE Market, Research Paper Example

The extremely dynamic technology market in the United Arab Emirates creates plenty of opportunities for expansion, innovation and founding new international companies. The below analysis would include a complete review of the technological business environment of the markets in the UAE, based on statistical data, reports, government publications and studies.

Overview of the technological marcroenvironment

Macroenvironments are influenced by different sources; such as natural environment, technology, demographics, and economic, political and cultural forces. In the 21^st Century, the technological environment has gained a larger importance than ever before, and in the United Arab Emirates, there are many initiatives to plan and carry out innovative projects. The market size of the United Arab Emirates nationally is large for technologies; software and hardware manufacturing. According to the Italian Trade Commission report, (2011), the total Global comparisons, the UAE has an increasing share of both import and export of technologies, with a huge market for software and hardware. However, the report also shows that the demand for water and electricity will grow in the next years significantly. The largest electricity projects in the UAE have huge budgets, with the already contracted nuclear power program by ENEC, accounting for a 20 billion dollar budget, and the ADWEA Fujairah IWPP project, already in the state of execution. Electricity and environmental programs are also significant in the area, with Abu Dhabi planning to produce 7% of its electric power using green sources.

Opportunities in the technological macroenvironment

Various countries have already examined the UAE markets and technology industry in details, as European governments are worried that the fast development of the industry and high level of innovation would endanger their market share. The Italian Trade Commission report (2011) provides an overview of the UAE developments and innovation, as well as the marketing opportunities. The principal export sources, opportunities and market characteristics were summarized in the Australian country summary report, as well. (2011)

Summary of findings

The GDP growth in the country provides a steady market environment, and the stability of the region supports the idea of setting up multinational companies and ventures. The GDP per capita figure included in the Australia country fact sheet indicate that the domestic need for technology and innovation is likely to grow in the next few years.

Recommendations for the company

1. With the construction sector being the largest in Abu Dhabi, and considerably under-developed in Fujeira, according to the 2008 UAE industry statistics (2008), there is an opportunity for companies – taking into consideration the demographic variables – to move into under-developed areas to create new technologies.
2. Another important message revealed by the statistics is that the government’s support for new ventures and international projects does create a suitable environment for strengthening investment projects and attracting new partners.
3. The low domestic competition (UNDP-POGAR, 2009) provides a responsive market, and with suitable marketing strategies both within the Arab region and internationally, the technology industry can gain a competitive advantage.
4. With the country having successful export-import links with China and India, as well as other Arabic countries, like Iran, the collaboration to create research centers (according to the UNDP-POGAR: Arab Statistics, there were only 3 outside of universities in the UAE in 2000) provides a great opportunity for development, research, international relationship building and market research. The position of the UAE macro economy can be strengthened by collaboration projects.

References

Arab Stats Statistics. Online. http://www.arabstats.org/countries.asp?cid=21&gid=17&sgid=39

Italy Report on UAE (2011) Online. http://www.ice.it/paesi/asia/emirati/upload/159/WETEX,%20March%202011.pdf

Main Indicators by Economic Sector and Emirate_2008. Online. http://www.uaestatistics.gov.ae/ReportPDF/Main%20Indicators%20by%20Economic%20Sector%20and%20Emirate_2008.xlsx

UAE Fact Sheet. Online. http://www.dfat.gov.au/geo/fs/uaem.pdf