Current Strengths And Weaknesses IN THE UAE Economy

Overall the current economic climate is recovering day by day, although with many fluctuations in development but still viewing rise in economy and GDP, mainly due to the expansion in construction industry, communication, development and service sectors. Especially the immigrants be able for their raised percentage in the UAE labor force.


The economy of the UAE at the moment is fairly recovering from downfall and diversifying in different sectors to improve growth. Due to the rise of olive oil prices, essential oil sector signify the several third of the GDP. Demand from its neighbouring countries in addition has strengthened its export activities.

UAE is likely to see real GDP expansion of 2. 5% in 2010 2010 and dual to 5% next yr which is 2011, as a risk desire for food grows and investment funds began to stream in Dubai in real estate sector. Investors who had been shying from committing their money have once again began to show interest in long term purchases. 2010 is known as a year of recovery and it is also a time of consolidation. Increasing oil prices will still be important to original recovery in the short term. Over the next 12months energy, technology and green sectors would see maximum interest with an increased desire for food for mergers. Petrol is still the main sector adding 63. 6% to GDP in Abu Dhabi. Dubai's GDP rose to 0. 3% in the first 1 / 4 of time 2009. Inside the first one fourth of 2008 it was DH 68. 21m increased to DH 68. 397 million in 2009 2009. The five most pre prominent sectors that have shown resilience to the economic downturn and resulted in the first quarter rise are inexpensive trade, retail trade, developing, restaurants and hotels. Dubai's inflation eased to 4. 1% in '09 2009 from 11. 3% in 2008 which was the highest inflation rate in over 20years.

Due to the diversification strategy of the UAE, market growth could be more dependent on the non essential oil activities such as manufacturing, construction, transport, travel and leisure, financial services and trade services.


UAE sits between your east and the west and will continue to maintain a worldwide competitive position in trade and investment. UAE federal government is targeted more on creating a friendly environment for the traders worldwide to get. Federal government of UAE is led by bureaucracy and is fast in handling licenses and other requirements. This specially creates a superior quality life in Dubai which is the business enterprise hub. Increasingly more companies will spend money on Abu Dhabi and it'll come out as a function of attraction of the knowledge or skilled workers from all over the world.


The short term outlook of the UAE overall economy is expected to be fairly advantageous, because of quick development in the domains of construction, manufacturing and tourism. However the real GDP expansion rate is expected to fall season from its current degree of growth. It is expected that GDP development rate will be typically 7% through the span of 2008-2012. Because of the diversification strategy of the UAE market it'll be more dependent on the non-oil industries such as creation, construction, transport, travel and leisure, financial services and trade services. In UAE Abu Dhabi projects 26 new infrastructure projects this year 2010 valued at 19b dh. According to the actual fact it is spending the most money than any other six nations across the world. The UAE GDP per capita is dh. 162000.



Economic talents:

Consistent high engine oil prices supports the government injecting huge amounts of windfall olive oil revenues into the local current economic climate to stimulate the non-oil sector, increasing the throw-away incomes of the poorer sections of the populace.

Recovering & Robust Market.

World's third largest exporter of crude oil with 22. 2m barrels of crude oil export each day.

Stable, openly convertible money pegged to the united states dollar.

No foreign-exchange controls.

Healthy balance of payments

No trade obstacles.

Competitive labour costs.

Competitive real property costs.

Geographical strengths:

Strategically located in the Middle East, with easy access to not only key Midsection Eastern and Western european markets but also to China, South Asia, Malaysia, Indonesia, Philippines and other Asian markets as well.

Highly developed slots and access to major sea routes.

Image as a regional head and trendsetter with other countries in the region seeking to it as a model of development.

Commercial talents:

Zero personal and corporate taxation.

No taxation information exchange contracts with other countries.

Free Trade Zones, relative simple business set up.

Pro-business immigration insurance policies.

Business environmental talents:

Business friendly environment.

High degree of administrative support from government bodies.

No need to record any accounts.

Stringent IP regulations and enforcement.

No levy on exports and imports.

100% ownership of business allowed.

100% repatriation of capital allowed.

Established travel and leisure hub.

Socio-cultural advantages:

Primary business words - British.

Tolerant, stable, progressive society.

Ease of employing.

Cosmopolitan/Progressive Work Environment.

Infrastructural advantages:

Full selection of ultramodern and complex banking sector providing a number of services because of its wealthy expatriate clientele.

Banking system is so private that it's now often compared to that of Switzerland.

High-end telecommunication facilities and IT infrastructure.

Efficient move and circulation facilities.

Well-planned amenities - roadwork and waterworks.

100+ airlines connecting to 146+ areas.

Premiere Logistics Infrastructure.

An abundant and inexpensive energy resource.


Many of the strong service sectors reserved for UAE nationals.

Real Property Services.

Rental/Renting Services relating to Cars.

Services Incidental to Agriculture.

Hunting and Forestry.

Services Incidental to Fishing.

Placement and Supply Services of Personnel Investigation and Security Services.

Passenger and Freight Street.

Each Emirate has its business setup rules and regulations.

Not an English common rules jurisdiction.

One needs a network of folks in order to extend opportunities.


Gateway to at least one 1. 5 Billion Middle East and African marketplaces.

Huge export market.

Trade missions and agreements with major commercial countries (Japan, Singapore, European union, Mercosur, India, Turkey, China and many more upcoming.

Serve existing marketplaces in Europe and Asia while establishing for access to growth marketplaces in Midsection East, Indian Subcontinent, & Africa.

UAE is experiencing upsurge in international trade with imports growing continuously at eight per cent year-on-year above the forecast period.

Improved bilateral trade with the US, Iran and South Africa, amongst others.

Drive to improve the tourism industry through major enlargement assignments in hotels and airports.

The next 10 years will see a change of education, medical, culture and travel and leisure. Services will make an increasing contribution to GDP, with expansion in air and maritime move, travel and leisure, financial services and a bunch of other services.

Abu Dhabi packages 26 new infrastructure projects this year 2010.

Upcoming projects like world's biggest arc bridge, Dubai moving sky scrapers, trump hotels, towers and various other jobs.


Rising cost of living in key emirates

Perceived real estate-induced monetary volatility as potential risk.

And being a part of an volatile region, the country's risk account could be afflicted by issues concerning local and international relations. (local militant communities and Iran's nuclear program)

Heavy federal government subsidies on utilities and agriculture and its own obsolete tax system. (BMI record)

Sandstorms and dust storms take place frequently.

4) Industry and customer research:

The industry is dominated by way of a few very large companies, such as Caterpillar, Komatsu, Terex, Deere and company, Ingersoll Rand, and Linde AG. Of the major competition, Caterpillar is the biggest, with approximately 33% market show followed by Terex and Komatsu with 6%. This past year, Caterpillar reported sales of around $32. 396 billion and Komatsu, Ingersoll Rand, and Linde AG each reported around $8-9 billion for 2009. Each of these giants has large or multi section marketing strategies that provide standard equipment for large blocks of customers.

The construction machinery industry experienced income of around $30174 million last year 2009. The development equipment industry is a recovering market with planning on around five percent gross annual growth. Global demand for construction machinery is projected to increase 5. 3 percent annually through 2013. This study analyzes the $108 billion world building machinery industry by products like cranes, excavators and draglines; loaders; off-highway vehicles and tractors; mixers and pavers; graders and rollers, world region for 23 major countries.

Customers who purchase machinery equipment require trustworthiness, speedy servicing/supply of parts, and flexibility for a variety of expected and unanticipated uses. Customers are inspired by reputation and cost, since equipment acquisitions could possibly be the most significant portion of the customer's long-term possessions.

5) Market admittance strategy:

Primarily focuses on its marketplace, the large engineering companies in Abu- Dhabi and Dubai, through distributors and via its various relationship and referral systems to make goodwill in the original 24 months and change our strategies further based on the accomplishments and success in the UAE. Further most we will also expertise in selling all sorts of construction extra parts 24/7 which will become a one stop shop. This might enhance our credibility and will also play as catalyst in offering our major product "Tower cranes". Furthermore, a substantial amount of investment will be produced in advertising to market product awareness through various internet sites like facebook, twitter and YouTube. Another essential element would be to provide feasible donations to authorities charitable money of UAE. Reselling through vendors of particular construction machinery is far more effective in closing sales as well as in terms of sales and marketing costs.

Potential clients' travel cost to site or any other charges which took place during calling or meeting with company management for establishing current sales and future sales or we can say that product presentations is covered by our company.

Product presentations are a crucial step in the sales process. This is the opportunity to demonstrate the capabilities of your products, educate the potential client, and set up a romantic relationship. Our strategy in this current situation is to give low price with superior quality and services. Company locates distributors for his or her products with the aid of department of international trade, foreign affairs Canada, and other corporations those advice on selecting real estate agents and distributors overseas to promote country's overall exports.

Competition and purchasing habits of customers and a way to overcome it:

Cropac faces around 55 major opponents in Canada and U. S. The best player is Caterpillar and has been in the market for 42 years. Their name is very well known and

Their products are respected. Their products pretty much sell themselves. Large structure companies typically look for the most widely used equipment that comes with an proven name and reputation for quality, resilience, and flexibility. Our strategy in this current circumstance is to provide good deal with superior quality and services. Product presentations are a crucial area of the buying process, in particular when a buyer is dealing with a smaller, less known company. Beside with this we apply all value propositions during business that even a small company will definitely get success and will be able to compete with its powerful competitors.

Main competitive edge is that people are going to export and will just focus on few products only, somewhat than dealing in many manufacturing machineries. Lastly, we are going to give 5 years repair and alternative guarantee, which is the best way to draw in our customers and the best way to sustain our existing customers so that people achieve an excellent standard specifically field in the industry and whenever anybody in UAE, (Dubai being our hub) needs the machinery, he'll contact our company because of goodwill in the market having range of grades in the merchandise line.

Market Needs: UAE's overall economy at the moment is recovering from a downfall and diversifying it in different sectors to improve growth, expecting a GDP of 2. 5% this year 2010 and 5% in 2011. Abu Dhabi is discovering new 26 infrastructure assignments in 2010 2010 which all need building based machinery, which may be regarded as a biggest chance of our company. Our strategy in this current circumstance is to provide low price with superior quality and services. As we all know that UAE is the quickest growing economy in regards to its infrastructure and spends almost all of its money than any other six nations across the world, its key companies are development, real estate, and coal and oil industry. One of the important thing is the fact that from every 100 structures on 70 properties construction work is certainly going on and there are amount of man-made lands that are going to be developed over there i. e. (palm, world's biggest arc bridge, moving sky scrapers, and Disney world, etc. ) and Dubai has a great number of tourists stopped at per year. So conclusion from this all is that we have great opportunities and there is fair degree of market demand of the building equipment in UAE. Modern complex designs, earthquake proofing, and other factors have increased demand for higher precision and precision in handles of heavy equipment equipment in commercial construction operations.

6) Marketing strategy:


Cropac will export tower crane parts for engineering needs. Primary emphasis will be placed on product executive and manufacturing functions to ensure the highest quality, a high degree of product features, and the most effective making process possible.

Brief information of product:

Our product for the business enterprise plan is

Tower cranes:

The construction team uses the tower crane to lift up steel, concrete, large tools like acetylene torches and generators, and a multitude of other building materials.

We will export two types of tower cranes

Offering multiple mast heights and jib lengths, Continuous operation whether you're on the spacious job in the united states Or a highly congested site in the town. Along using its physical flexibility, both features electrical power operation, providing a tranquil, clean lifting Way to customers who may be limited by sound and emissions polices.


Cropac is going to export

And sell their products by using agents appointed in their respected emirates. As our company has 30 years of key experience in the field of construction machinery and has acquired goodwill in the significant markets, we must build our name by influencing potential buyers over there by mending low prices initially by minimizing down our profit margin so that consumers get seduced towards our products and buy our product, and also boost long-term customer relationships in the market by serving the previous clients. Therefore over time of your energy, we will attain success in our business; we will change our price strategy too and increase our profit percentage on the later stage. So according to all or any of the strategies, we decided to select a penetration strategy of prices.

Our company is certainly going to start out business with low prices by minimizing down our profit percentage, which is the most competitive advantage in the rates of our own company in comparison with the other challengers.

We used the marginal cost rates method because in this technique, the price of an item is placed to a minimum, reflecting only the extra cost of labor and materials.


The Company will appoint another learning resource (freight forwarder) for this entire job as their third party logistics. So, due to this reason we do not need to manage the delivery strategy and other issues. It is the responsibility of freight forwarder to do the duties like warehousing, packaging, travelling, labelling, etc.

We decide on a freight forwarder which has a great experience in that field; name of your freight forwarder is fast freight forwarders co. ltd. Plus they have 35 years of great experience with an excellent service. They are situated in Toronto itself.

As Tower crane is a high end product which is huge in proportions, we cannot deliver it immediately, hence we have to deliver them in parts from Canada to Dubai. For the storage in our tower crane parts in Dubai we will rent a open public warehouse called Jabel Ali Industrial Warehouse.

With the help of online sites, we live taking purchases and sending quotes online to potential clients in the whole of UAE.


Our company will instruct or provide knowing of our products through referral networks, trade fairs, etc. to your potential customers. A substantial amount of investment will be made in advertising to promote product understanding through various social networks like facebook, twitter and YouTube. As there's a stating that as "more and more general population hears about you, the better your its likely that for achieving brand recognition, credibility, and increased market share".


We will provide quality after sales service to our customers in the best and affordable way. We are going to give 5 years repair and substitution warranty, which is the ultimate way to draw in customers and a competent way to hold on to existing customers.

7) Value propositions:

Keys to success will include

A higher level of quality in its product line.

Maintaining and growing its referral sites to generate new and repeat sales.

Significant investments in research and development and engineering with desire to to concentrate on precisely handled equipment.

Improving efficiencies of functions.

Providing better after sales services i. e. (repair or parts alternative guarantee).

Establishing trust with customers so that future sales will be protected and communication skills among management should be excellent in order that they cannot go anywhere else and also referring the name to their further contacts (we mean to state that company's first working should be very much trustful and attractive so that's goodwill in the overseas market will be grooming).

8) Procedures: Cropac purchases key components like motors and gears, hydraulic pushes and hosing, and structural metallic, machine screws and castings from parts suppliers some of these are

Amaco structure parts Inc. (Mississauga, Ontario)

Amre resource co. ltd. (Brampton, Ontario)

Afterwards does various finishing procedures, and assemble the components. Materials stand for 60 percent of done product costs.

In the short manner we will buy some elements of the equipment from the given distributor above and some parts are produced by themselves in the manufacturing plant itself.

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