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SUBJECT International trade practices Assignment 1 Topic POLITICAL, ECONOMIC SOCIAL, AND TECHNOLOGICAL ANALYSIS OF DUBAI TO LAUNCH LOLIWARE

Submitted to Dr .Satish Kumar. R

Submitted by

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ANS ROY DASHAMI G D SIDHARTH SAJEEVAN ALISHA ANJEL RODRIGUES PRIYANKA N MURTHY RAJENDRA.T

Say Hello to Plastic - Free Future

Introduction LOLIWARE, is an edible Bio Plastics Company. Yes, you read it right I said EDIBLE.

Image Source: sharktanktales.com

This company is on a mission to reduce plastic waste and create sustainable future with the world’s first edible drinking cup. These edible can be used to serve drinks and desserts at events, and the twist here is, as soon as you are done finishing your drink, rather than tossing the cup in the dustbin you can instead eat it. What’s even better is that, these cups come in different flavors as well.

Impact of using Plastics 5 trillion plastics currently float in our oceans, mostly in the form of micro- plastics. There will be more pieces of plastic in the ocean than fish by 2025. These days when we watch the news all that we get to see is global warming and get to watch in the news that most sea animals are found with plastic contamination in their guts.

Image source: shopgirldaily.com

According to FIGO, pollutants are found in pregnant and lactating women across the globe, and research shows that virtually every pregnant woman in the U.S. has at least 43 different environmental chemicals in her body. A report by the U.S. National Cancer Institute found that “to a disturbing extent, babies are born ‘pre-polluted.’” Researchers have said that humans consume up to a credit cards worth of micro plastics daily. It’s found in seafood, tap water and even in table salt. This problem is being inherited by the next generation as well as traces of plastic are being found in babies at birth.

Company The company aims to transform the tableware and packaging industries, but just imagine the endless applications of the innovative material if it were to go beyond cocktails and entertaining. Since its launch, the brand has received much media attention and there may be collaborations in the future based on interest from global brands, and consumers from around the world. But for now, LOLIWARE is working on an expanded cup line, straws, functional food extras and a range of edible water bottle

Why Dubai? Dubai is the most populous and one of the richest cities in the United Arab Emirates (UAE). It is the capital of Emirate of Dubai. With the country’s nominal GDP of about USD 108 billion, Dubai aims to be the business hub of Western Asia. It is also a major global transport hub for passengers and cargo. Oil revenue helped accelerate the development of the city, which was already a mercantile hub. Being a center for regional and international trade since the early 20th century, Dubai’s economy relies on revenues from trade, tourism, aviation, real estate and financial services.

Image source: www.britannica.com

Dubai is one of the best known places to start a business because it is a location which gives easy access to 1.5 billion populations in three different regions of the world. It is a business location with one of the largest port connecting 140 ports in 6 continents, a global city with cosmopolitan culture and the tax-free business environment, a city which is home for 42,000 millionaires with the lowest crime rate and one of the world’s safest cities with 365 days of sunshine, some of the major ease of doing business opportunities available in Dubai are as follows: 1) Advanced Logistics and Infrastructure: Dubai enjoys the position of a significant player in international trading and transport logistics. It has the advantage of its inherent strategic location on the globe. Dubai is in the middle of far-east and Europe and situated at the crossroad of international trade between east and west. Due to its geographical location, Dubai is considered to be the gateway to the world’s most progressive markets, including Africa, India and China by offering immense facilities in air transportation and air cargo, with largest sea port in the middle-east which provides access to about 140 ports in different countries and also Dubai has one of the best road infrastructures in the world. According to world economic forum’s travel and tourism report (2013), the UAE has been rated second best in the quality of roads. 2) Resources: Dubai has abundance resources. You will never feel scarcity of any resource. Top quality human resource, Economic energy resource, world’s best infrastructure and communication technology is available in Dubai. UAE’s mobile service provider Etisalat is now working on 5 G services. Etisalat is going to be the first telecommunication company who is close to provide 5 G services to its customers and not to forget Dubai international financial center is providing hundreds of opportunity to the people with financial acumen. DIFC is Gulf’s premier financial market. It is the preferred location for investors, financiers, accountants. DIFC privately possess a financial exchange Dubai NASDAQ. Now it is competing with other big global financial hubs like New York, London, Singapore, and Hong-Kong. Recently UAE has witnessed the merger of FGB (first gulf bank) and NBAD (National bank of Abu Dhabi). This merger has resulted in the creation of biggest bank in MENA region. This merger will bring a lot of opportunities for entrepreneurs in Dubai.

3) Tax free Country: Dubai and UAE as a whole is a tax-free business environment whether it is free zone or mainland Dubai has zero corporate and income tax on businesses. Dubai Government is passing legislations to open more and more tax-free zones to support different industries. The government is providing world-class urban amenities to the residents. This country allows you to start a business, provides infrastructure to nourish, give facilities to spread it across the globe. Dubai has a lot of options for leisure to enjoy the money and again great opportunities to invest the money. Dubai’s economy has evolved on the back of business-friendly regulations. The city has become a popular destination for wealthy individuals because Dubai gives them the freedom to enjoy and invest their money.

4) Security: Not just the infrastructure or the economic aspects are important to take into consideration to start a business, but it is very important to consider the safety and security aspects of the country. Dubai due to its strict and stringent rules and policies, it is able to get recognized one of the top 20 safest countries, according to a survey conducted by Aon Hewitt, the global human resource company. So, Dubai is a safe city. It’s a crime free city. This city is free from communal riots, aggressive demonstration, Agitation. Fortunately, there is no terror fear in Dubai. Although it’s a geopolitical hot spot but due to alertness and smartness of security forces and Dubai police no one has ever dared to look at Dubai with Bad intentions. So, these are some of the factors, which we were able to foresee as some of the greatest opportunities to start our business in Dubai for being successful in the business.

PEST ANALYSIS OF DUBAI MARKET POLITICAL ANALYSIS OF DUBAI United Areab Emirates is a country that says a strict no to usage of plastics and these includes plastic glasses and plates etc and promotes the usage of biodegradable glasses this is due to the reason that it creates a bad effect on environment as a result there are few prons and cons related to our company product and they are as follows-

PROS  

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The country has a dynamic government stucture which motivates for starting of a company as they make a clear statement of the procedure to be followed. Each Emirate has its own government institution which company authorities must visit to complete the formalities required for stating a company and this helps the company to select the Emirate they want to start their company The country has a stable political environment which encourages financial institution to invest in companies that are starting in the country The government of the country allows a forienger to have an ownership of 49% and 100% ownership in free zone area The Government of United Arab Emirates has strict rules and regulation that provide high safety to the organization operating in the country.

CONS Introduction of Value Added Tax has made an extra cost on the product which makes it costly and it will increase expense included on the company side.  The process involved in acquiring trade licence incures huge formalities for small and forieng companies  The company has to enter into a partnership with a citizen of a country this makes the company to think twice before starting operation 

ECONOMIC ANALYSIS OF DUBAI 

The GDP per capita of Dubai is high, Since GDP per capita is high people have enough money to spend and buy unique product we are offering

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supply-generated demand Dubai believes supply creates its own demand

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Dubai is earning most of its revenue from tourism, petroleum wells, natural gas, real-estate and construction

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Employment rate is higher in Dubai, Dubai government is making enormous effort to give there citizens the employment, as a result most of the Arabs are employed and over all employment rate is above 60% since most of them are employed it makes sense to enter this market

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Government also welcomes foreign direct investment , and it is one of the best county to invest and most of the foreign nationals love to invest in Dubai

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Customs duty is very low they charge 4%

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There are no trade barriers or quotas

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There is no foreign exchange control

SOCIAL ANALYSIS OF DUBAI 

The inhabitants of the UAE typically live comfortable lifestyles thanks to their wellpaying jobs.

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Globalization is gradually resulting in a mix of many different cultures within the Emirates.

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Religion is an important matter in the area, which greatly affects society.

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Tourists find it more easy to use as they can consume it.

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Most of the people are moving to Bio degradable products as they are environment friendly and can reduce deforestation (reduce use of paper cups).

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UAE also banned non bio degradable products, so citizens are forced to buy bio degradable products

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Most of UAE citizens have high living standard as they always tend to buy quality products for high price

TECHNOLOGICAL ANALYSIS OF DUBAI 

The profits from commerce and tourism are spent on improving the technology.

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For example, Emirates and Fly Dubai are one of the largest airlines in the world with latest technologies equipped in the aircrafts.

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Dubai International is one of the busiest airport in the world.

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Use of technology also helped the Dubai to promote tourism through apps that suggest the tourist places and cuisines to try.

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Modern RFID’s are installed all over the city for driverless Metro.

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The young population is very much tech- savvy, which allows the companies all across the UAE to leverage the technology.

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The wealth of the country helps them to buy the required equipment and be in the vanguard of technology department.

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Dubai has a standout among the most developed telecom services.

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The UAE E-commerce Summit is a yearly occasion that tries to highlight the most recent developments in the ecommerce segment that are advancing a computerized economy.

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All significant MasterCard’s are accessible and acknowledged.

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Most widely used are Visa and Master Card.

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UAE introduced e-Dirham card in 2001 to facilitate payment for government and nongovernment services.

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The government has also invested heavily in space science, life science, nuclear science and ICT over years.

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UAE has the most attractive market ICT market in the Middle East.

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The mentality of people with funds over there is to import from china rather than investing in R&D and coming up with their own products

ENVIRONMNTAL ANALYSIS (Since our product is environment friendly, we have included environment analysis as well) 

This country has quite a hot, dry climate, which can result in many different things. For example, productivity might be slightly lower, farming is not so easy, and air conditioners have the potential to sell well.

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The UAE is endowed with vast oil and natural gas resources, which make up the backbone of its economy.

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The UAE also has a vast coastline with exquisite beaches that have enhanced its appeal as an international tourist destination. Through encouraging foreign investment, UAE has been able to attract investors who have invested in multibillion hotels along its coastline.

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The UAE also finds itself near a few coastal areas, allowing for easier trade by sea.

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Government have taken many measures to stop the use of plastic.

CONCLUSION The UAE government has already taken measures to stop the use of plastics so, LOLIWARE products will work flawlessly in this country. As the country has a stable political environment, it will encourage financial institutions to invest in companies that are starting in the country. The UAE government also welcomes foreign direct investment, and it is one of the best county to invest and most of the foreign nationals love to invest in Dubai. The customs duty is very low and they charge only 4%. Most of the people in UAE are moving to Bio-degradable products as they are environment friendly and can reduce deforestation (reduce use of paper cups). As UAE welcomes a lot of tourists, they can find it easier to use this product and they can consume it as well.

Reference 1. https://sharktanktales.com/loliware-shark-tank/ 2. https://www.loliware.com/ 3. https://www.sciencedaily.com/releases/2020/07/200722083807. 4. https://www.plasticpollutioncoalition.org/blog/2015/10/6/report-babies-are-born-pre-polluted 5. https://cxm.world/5-reasons-to-start-your-business-in-dubai/ 6. www.britannica.com 7. https://howandwhat.net/pestel-analysis-united-arab-emirates-uae/ 8. https://www.ukessays.com/essays/economics/uae-and-its-economy.php 9. https://pestleanalysis.com/pestle-analysis-of-uae/ 10. https://freepestelanalysis.com/pestelpestle-analysis-of-dubai/...