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Export Strategies for Companies in Dubai
Fatema Fazal in her paper The Urban Development in Dubai postulates that the change in the direction of Dubai’s development from over reliance on the oil sector to diversification has been crucial in Dubai’s growth. Economic growth for Dubai came as a direct result of relentless efforts in various sectors of the economy. A large number of the firms operating in Dubai are multinationals (MNCs). MNCs due to their financial muscle can put immense pressure on the markets (Brik).
Dubai currently premises its economy on a vast array of business interests. However, the independence of the economy is not by fluke but a planned strategy. The government acknowledged earlier on that oil was only a reprieve and therefore focused on other areas that promised long-term results (Fazal, 2008). Dubai’s government has embraced free-market capitalism in totality. The minimum intervention by the government in the business environment has worked positively in pushing Dubai’s products internationally (Fazal).
(Karlsson & Kindblom, 2006) Posit that positioning is one of the most widely used methods in marketing. Dubai adopts dominant marketing strategies. In addition, Dubai is strategically located as a central hub for transit of goods. Therefore adopting international standards of transport is crucial to the viability of Dubai as a business center. Dubai International Airport ranks among the busiest airport in the world. Therefore, investors and business persons alike readily move in and out of the city (Karlsson & Kindblom, 2006).
On October 24th, 2007, Dubai’s leader His Highness Sheikh Mohammed Bin Rashid Al Maktoum issued a resolution mandating new buildings to comply with internationally approved practices (Maguina, 2011). In a study conducted in a sampling frame of 820 companies, Brik seeks to establish the drivers of the green supply chain in economies. The study used a data collection method of emails and faxes. The sample was representative of Dubai’s economy; 30% manufacturing, 35% construction and real estate, 18% tourism, 8% trade and 6% transport. The results showed that green supply chain positively correlates with MNC pressure. The OLS regression analysis showed that the adoption of the green supply chain significantly associates with export country regulation, MNC’s policy, and leadership. The study complimented the long published assertion by many pundits that Dubai adoption of green supply chain follows global markets dynamics.
To actualize its goals, Dubai’s government plan to transform the emirate into a global export hub. Therefore, various government policies such as Dubai Strategy project 2015. Dubai Urban area strategic plans creation of free trade zones and minimal interference in the private sector work towards achieving the set goals (Karlsson & Kindblom, 2006). Fazal using the four-quadrant model proves that access to oil, population growth and the incentive from the government promotes growth leading to the growth of Dubai’s export sector. The incentive for the bank changes the demand curve, the capitalization rate and the cost curve.
Dubai exports need to maintain global competitiveness. Revealed Comparative Advantage is a measure of a country’s export potential. It examines a country’s product relative competitiveness in the world. As of 2011, Dubai had the highest relative competitiveness in the aluminium, precious metals, and ceramics sectors (Government). Mining and quarrying activities failed to dominate in their contribution to the GDP by other sectors. Wholesale and retail services were the backbone to Dubai economic profile. A study conducted by Fazal sought to demonstrate how Dubai does its businesses in a bid to conquer the mind of investors. The study used the triangulation method of data collection. As such, the study used qualitative data incorporating the use of tools such as interviews and an evaluation of the place. The research minimized by bias by double-checking the facts acquired. The study revealed that in order to persuade investors, Dubai had paid due diligence to the importance of the place in investing. The study claimed that Dubai had invoked the cardinal rules of developing an area as an attractive business hub; design, infrastructure, services, and attractions. In addition, the place ought to be aware of its strengths and weaknesses; costs, location, access to customer and supplier market, infrastructure, quality of life, taxes and regulation and caring and supportive environment functions.
Karlsson & Kindblom highlight the importance of having strong brands. The knowledge that consumers have about brands is of vital importance. A brand is distinct association intended to identify goods and services of one seller and differentiate them from those of competitors. Dubai involves using reliable methods to brand itself as a global business leader. Dubai creates consumer based brand equity by creating brand awareness and brand image.
Works Cited
Anis Ben Brik, Kamel Mellahi, Belaid Retab. “Drivers of green supply chain in emerging economies.” (n.d.).
Dubai Government Information and Services Portal (2007), ìDubai Strategic Plan 2015, < http://www.dubai.ae/en.portal> (2008-12-28)
Fazal, Fatema. “The urban development in Dubai.” Department of Economics Uppsala University (2008).
Kindblom, David Karlsson & Henrik. “How can a place conquer a position in the mind of potential business investors?” School of Business, STOCKHOLM UNIVERSITY (2006).
Maguina, Marco. “Implementing sustainable construction processes in Dubai-a policy instrument assessment.” Malmo Hogskola (2011).
