| | Political/Legal | Economy | Society | Technology | Environment |
| (+) | Federation of 7 emirates in which the president’s position is hereditary and the prime minister is selected by the president. Political parties are not allowed and each emirate is represented by an emir. Legal system is comprised of Sharia and civil law. | Top Industries: Petroleum and Petrochemicals; Fishing; Aluminum; Cement. The world's 8th largest oil producer with significant reserves. | Free modern health care system, with the combination of comfortable lifestyles thanks to their well-paying jobs. One of the highest ratios of students entering higher education in the world. | UAE's investments in space technologies have already exceeded AED20 billion, including investments made in the satellite data and TV broadcast company | UAE contains the worlds 7th largest deposits of crude and the 17th largest natural gas reserve. |
| | The UAE is politically stable in a fairly hostile region. If the president’s health fails him in the upcoming years, succession to his brother will be smooth. | GDP per capita ranks 5th in the world and 3rd in the Middle East, after Qatar and Kuwait, with one of the lowest rates of unemployment in the Middle East (1.6%) | Globalization is gradually resulting in a mix of many different cultures within the Emirates. Arabic is the official language but many citizens also speak Persian, English, Hindi, Urdu. | Uses digital technology to improve the lives of its citizens and make everything from transport to health and education not only more efficient but also sustainable. | In 2005, by signing the UN Convention on climate change, they became the “green” leader of the OPEC states |
| | Continued positive relations with the United States, desire to strengthen relationship with Asian countries (and their economies), and plans to solidify ties in Africa by building port operations in Somaliland, Ethiopia, and Eritrea. | One of the fastest growing tourist sectors in the world with liberal visa policies permit easy importation of expatriate labor of various skill levels from almost all over the world. | UAE Emiratis are predominantly Sunni Muslims and all social and political matters are driven by Sharia (Islamic) law. Tolerant of other religions and accords religious freedom to the expatriate population. | During the past 20 years, the numerous digital transformation initiatives in our city have driven public acceptance and adoption of ICT in all aspects of life. | Mohammed Bin Rashid Al Maktoum Solar Park in Dubai (opened in 2016), Expresses the Crown’s dedication to solar and alternative energy sources. |
| | Despite the fact that the UAE is not a democracy, there may be increased pressure to introduce voting in the FNC. However, society is likely to remain highly tribal and clan dominated. | Minimum government control and regulation of private sector activities with an extensive foreign trade network. | Family is Key to UAE society and is based upon the long-held values of Emirati tribal kinship. Large families are encouraged by the state as a national policy, and family size is six to eight children.Traditionally a patriarchal society but starting endorses gender equality, guaranteeing equal rights for both sexes and is now the leading country in the region for equality. | The testing of taxi drones and other forms of innovative transportation could mean more efficient ways of getting around the emirates and reducing traffic. |
| | Part of the League of Arab Nations, GCC, OPEC, and other large intergovernmental organizations. | No foreign exchange controls, no trade barriers or quotas. Competitive import duties (4% with many exemptions), labor costs, energy costs, real estate costs, and financing costs with high levels of liquidity. Also, no corporate profit or personal income taxes (except for oil companies and branches of foreign banks). | Emirates lies on the coast of the Persian Gulf, fish and seafood is very much a mainstay of the UAE diet. Muslims do not eat pork but all most other meats are used in the cuisine with a preference for lamb, goat and chicken. |
| (-) | The UAE is now aiding the Yemeni government against Houthi rebel forces in Yemen. This civil war requires Emirati military aid, and the conflict will unlikely have a successful peace settlement in the upcoming years. | Heavily dependent on foreign labor (more than 85% of the workforce). | Traditionally, marriages are arranged by parents and it is frowned upon for an Emirati to marry outside his or her tribal kinship group. | The implications of the rise of smartphones and social media, particularly on the young, is only now beginning to be understood, with potentially serious consequences for societal development, with the spread of online extremist propaganda and ‘fake news’ | Climate change/Global Warming has been the direct cause of water scarcity, drought and a rising sea level. |
| | Tensions continue with Iran (who has been accused of supporting the Houthi rebels) and Qatar (who have been accused of supporting radical Islamist groups). This creates security and commercial risks. However, oil flow from Qatar to the UAE has not yet been disrupted, despite the conflict. | Economic performance remained subdued in 2017, partly due to cuts in oil output as part of OPEC agreements. | Divorce is in the UAE is becoming more common and is subject to Sharia Law with complex issues around the custody of children. Joint custody is not recognized in the UAE. | Tech innovation is costly and emirates like Dubai are often financially constrained, relying on bail outs from Abu Dhabi when their tech aspirations get too big and they cannot pay. Also, desptie the interesting tech developments, a lot of the products are not used widely (such as the taxi drones). | Due to the arid nature of the country combined with global warming, water contamination is becoming a larger issue in recent years. |
| | UAE nationals are usually held to higher political standards and will often gain special access to politics and other sectors of life. There are some laws that severely restrict foreigners (even though approximately 85% of the people residing there are non-citizens) and give preferences to Emirati citizens. | General government debt is moderate but total public-sector debt is large. This is mainly due to the period of excessive debt run up by Dubai conglomerates over the previous decade. | Despite the visible endorsement of equality of the sexes on the part of the government however, there remains some disparity. Married women cannot take paid employment without her husband’s consent and is required by law to obey her husband. Men continue to receive employment preferences in high state administration and private businesses. Women do not play a significant role in politics and religious life, as these areas are considered male domains | | Since the oil industry boomed in the early 21st century, greenhouse gas production has sharply increased leading to the country becoming 29th in the world for highest CO2 emissions. |
| | Women are still underrepresented in the structure of the UAE government |
| | Summary |
| | In a region that is volatile politically, the UAE remains stable and exponentially growing, making it an attractive location for foreign businesses to operate out of. As a federation of 7 emirates, each ruled by an emir, the UAE is one of the most politically stable countries in the Gulf and in the Middle East. It maintains positive relations with its neighbors and is a part of many international and regional organizations, giving businesses confidence in the political stability of the nation. It is unlikely that the UAE will have any violent changes in power as the political elites operate tribally and have very clear succession policies. Further, the UAE is a strategic ally for the United States and has been committed to spreading its positive relations with nations in Asia and Africa.
Internally, the UAE is considered to be a happy nation, ranking high on happiness indexes, while its citizens enjoy wealth and prosperity. It has one of the highest GDP’s in the region, allowing its citizens to live comfortably. However, foreign labor relations with local Emirati’s can be strenuous; up to 85% of the UAE’s population is comprised of foreign workers that cannot easily obtain citizenship. Society seems to favor the local Emirati’s, giving them exclusive citizenship and positions of power in the government. Foreign workers are often subjected to long hours and harsh conditions, but there is also a diverse population of foreign workers that comprises much of the UAE’s population.
In the 1960’s, when oil began to be exploited in the region, development occurred rapidly, and today it remains one of the most developed countries in the region. However, the UAE has recognized that oil wealth cannot be sustainable in the long run. Thus, its leaders have taken initiatives to diversify the economy and have been forming relations with nations in Africa. The UAE also serves as a major transfer point for products being shipped to African nations. However, oil has also contributed to environmental problems, such as high CO2 emissions. However, the nation has also taken major initiatives to become more environmentally friendly, such as developing purely self-sustainable cities.
Overall, the UAE is a growing financial sector with a booming economy. It attracts many foreign workers for its exponential technological and economic growth, allowing expats to live comfortably while it continues to expand its (relative to the region) religious and social policies. Businesses continue to be attracted to its stability and opportunity.
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SamplePESTLEAnalysis-UAE-Qualitative.xlsx
