Page 440 - Sustainable Cities and Communities Design Handbook

410 Sustainable Cities and Communities Design Handbook

calculating interest on loans and credits. The economic principle of Muslim
banking instruments is largely based on market patterns of traditional banking.
Interest is replaced with other, equivalent financial constructions.

THE SWOT ANALYSIS OF THE UAE MARKETdBUSINESS
PERSPECTIVE
Taking into consideration all of the above recent and future UAE market
developments, the country characteristics including the market data, as well as
the policies realized within the last decade, appropriate conclusions can be
drawn by making the SWOT analysis from the potential foreign investor’s
perspective. The market strengths, weaknesses, opportunities, and threats are
92
as follows :
Strengths
l Political neutrality and stability of the UAEdlack of significant influence
of fundamentalist movements on the internal policy (a consistently
implemented vision of a modern state, in which old Arab traditions and the
fundamental principles of Islam combine with modernity and the progress
of civilization),
l Booming economydgood economic situation (high GDP growth, signifi-
cant budget surpluses, surpluses in foreign trade balance),
l No restrictions on profit transfer or capital repatriation,
l Low import duties (less than 5% for virtually all goods), nonexistent in the
case of items imported for use in the free zones,
l Competitive labor costs; corporate and personal taxes are nil, numerous
double taxation agreements and bilateral investment treaties are in place,
l Excellent infrastructure as well as stable and safe working environment,
l Development of new branches of industry in the UAE (chemical, metal-
lurgical, machine industries, trade, and construction),
l Rich deposits of natural resources (approximately 10% of global oil
deposits and the fifth largest gas deposits),
l Growth recorded in certain areas outside of oil sector (apart from industry,
in construction, trade, services, and banking),
l Substantial financial reserves (estimated at over 250 billion USD), invested
in foreign markets (Western Europe, the United States, the Near East),
l Dynamic development of the financial services sector (e.g., the establish-
ment of DFIC), constituting a bridge that links the financial markets of the
East and the West),
l Increase in trade between Poland and the UAE,
l Most advanced telecommunication technologies,

92. Hong Ju Lee and Dipak Jain. Dubai’s brand assessment success and failure in brand man-
agement e Part 1, Place Branding and Public Diplomacy, 234e246 (August 2009).