Introduction:

Acknowledging economic climate is an inevitable factor for organizations and managers have
considerable challenge to respond the economic changes. This essays shows the different
available opportunities and challenges faced by managers in UAE's current economic
climate. Survival in uncertain economic climate has become a very hot issue for companies
that How can organizations reduce the impact of economic climate, minimize their risks,
adopt change and avail benefits from opportunities that exist?
Economic Climate:
Economic climate can be a critical determinant of business success. Fluctuations in the
business cycle change the growth rate of economic activities, especially growth rate of
corporate profits, interest rates, inflation rate, inventories, and employment. Currently UAE
prevailing recovery phase in which more jobs are created, unemployment begins to fall,
consumers spending starts to increase, and more profits produced by businesses.
In order to face the global financial challenges, the government of Dubai has taken out the
several steps in this regard as the past 10 years are the sign of its glorious success in all the
sectors of its economy. It is important to discuss here that the Emirate's government is still
struggling to improve and enhance the commercial transparency and still making such ideas
or plans which can be really helpful to build up the every level of enterprises (Government
of Dubai 2013).
Setbacks:
Introducing a new business in UAE also has some costs in monitory as well as non-monitory
terms that can be bear by managers. In addition, starting a business in Dubai or somewhere
else in UAE, is needed to complete the proper paper work and provided the appropriate visas
to the employees for their stay as well as for work in the country. Another important aspect is
restrictions imposed by UAE labour law on businesses. As it is well known that manpower
management is the main part for a company and managers has responsibility to manage all
issues arises among their employees and keep peaceful working environment. For this
purpose, Government of Dubai has set very clear rules for the employee's rights and also
described the duties of employers as well. According to this law, if any issue arises between
them that should be brought to the Ministry of labour first (Government of Dubai 2013).
Political:
Political condition of UAE is very stable which encourage foreign investors without any
hesitation and provides save heaven for investment. Government of Dubai is very strict in
order to obey its rules and regulations. Until 2006, Dubai was containing the ruling members
without elections but later on it became half elected on the base of half federal assembly
members, though it was again bounded to a advisory act (BBC 2013).
Challenges:
Performing role as a manager is a critical for individuals, particularly for new managers.
There are number of duties which managers have to perform like understanding the company
and its stated goals, getting others to work to your plans, analytical thinking regarding many
business decisions, facing many uncertain situations. It is hard for a manager to work hard in
such circumstances which are not favourable for him. Therefore, deep knowledge, know how
with work, experience and the information about the technology are the base to become a
strong and successful manager. It is also an important challenge and need for a manager to
build up good relations with his staff and manager should be loyal, friendly, trustworthy and
having a great sense of understanding the demands of his job. On the contrary hands, if he is
unable to perform his job and this will lead him to failure (Facilities management n.d.).
Opportunities:
There are lot of opportunities for starting new business in UAE. One reason behind this is
stable political environment and continuous economic growth because of recovery phase in
this country. Businessman can avail various advantages from friendly rules and regulations of
UAE state such as "100% foreign ownership of the enterprise" (Government of Dubai 2013).
There is very low ratio of tax on import and sometimes it is exempted. Dubai Government
give you free hand to avail the overseas labour and provide other good services as well.
Moreover, in such favourable situation the financial risk comes down to a minimum line. It is
best chance for a businessman to combine these factors like competitive labour cost, good
infrastructure, flexible and friendly environment, excellent place among the regional markets.
In addition, its glorious geographic location between Asia and Europe, has given the much
popularity to Dubai to be a tourists destination (Government of Dubai 2013).
Industry:
This leading growth of trade is attributed to the UAE's dynamic policies about the opening of
new business markets and it is increasing the new trade partners and economic valuation of
Dubai. It is able to discuss here that the score of UAE was 1.8 points which is higher than the
2012.It is due to marvellous improvements in business environment, good management of
government duties, no corruption, strict rules and regulations, low rate of taxes for trade and
the support of UAE's government for the open markets business and operations. The above
discussion concludes that Dubai is now successful to create a dynamic and favourable
environment for the entrepreneur (UAE Interact n.d.).
Conclusion:
According to me, after focusing on all important points for starting a business in UAE is very
fruitful decision. Businessman can enjoy lot of facilities and support provided by
Government. In addition, it is a best place to live with family and most fascinating thing for
me that it is an Islamic country.
References:
BBC News (2013) United Arab Emirates profile (online) available from
<http://www.bbc.co.uk/news/world-middle-east-14703998> [assessed date 25-02-
2014]
Facilities Management (n.d.) Fundamentals for New Managers (online) available from
<http://www.fmlink.com/article.cgi?type=How%20To&title=Fundamentals%20for%
20New%20Managers&pub=BOMI%20International&id=31182&mode=source>
[assessed date 25-02-2014]
Government of Dubai (2013) Why Dubai (online) available from
<http://dubai.ae/en/Lists/Articles/DispForm.aspx?ID=107&event=Planning%20a%20
business%20in%20Dubai&category=Businesses> [assessed date 25-02-2014]
Government of Dubai (2013) Being a Responsible Employer (online) available from
<http://dubai.ae/en/Lists/Articles/DispForm.aspx?ID=118&event=Expanding%20you
r%20business%20in%20Dubai%20&category=Businesses> [assessed date 25-02-
2014]
UAE Interact (n.d.) The Economy (online) available from
<http://www.uaeinteract.com/business> [assessed date 25-02-2014]