Economic Analysis of The United Arab Emirates

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Economic Analysis of The United Arab Emirates 1. Introduction

A. General Information

The United Arab Emirates (U.A.E) is a federation of seven Emirates that was formed on December 2 1971. It is located between the Arabian Gulf and the Gulf of Oman and it is bordered by Saudi Arabia and Oman. The country has a total population of 3,740,000 as of 2004. Approximately 85% of those resideing the in UAE are not native to the country. Arabic is the official language, however, English is widely considered the official "business" language. Communication should not be a problem for English speaking people. The Muslim faith is practiced by the majority of people, but there are a significant number of Christians and Hindus. Islam does not play an important role in business practices. The business culture more closely resembles the culture found in America or Great Britain.

The UAE has a well developed infrastructure. The capital city of Abu Dubai and the city of Dubai are both very modern cities. They have a modern and extensive public transportation system including buses, highways, commercial seaports and an international airport. The country also has a number of government run hospitals. The country is primarily known for their petroleum production, like most of the countries in the region. Their extensive petroleum reserves have allowed them to achieve tremendous economic and social development. Most of the UAE's petroleum reserves are located i...

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... UAE and has unlimited liability for it's operation of the branch. The government recognizes seven different types of companies that are allowed to be formed within the UAE. The first is a public and private joint stock company (JSC), limited liability company (LLC), limited partnership company (LPC), share partnership company (SPC), and a joint venture company (CC). Some restrictions applicable to these companies include that their principle offices must be in the UAE, they must have at least two shareholders within the UAE, and nationals must own at least 51% of their equity. The reason for these restrictions is to limit the transferability of interests and prevent the formation of holding company structures as well as wholly owned subsidiaries.

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