The Use Of Solar Energy In The Uae Economics Essay

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Harmonizing to the research analysis the usage of solar energy will increase more than 50 % in approaching old ages. And UAE is the best topographic point to implement solar panels. In add-on, Abu Dhabi is besides believing of a proposal of utilizing solar panels on the roof tops to bring forth power. The executive manager of the metropolis said, i??The capital besides aims to bring forth 1,500MW of electricity, or seven per centum of entire demand, from renewable energy sources.i?? ( UAE Interact, 2010 ) So his statement makes it crystal clear that they want solar panels, and to perforate the market of UAE our company would be utilizing exporting as a manner of come ining the UAE market.

Exporting is the most conventional and good recognized signifier of come ining in foreign markets. Our company should construct the solar panel in the place state and so should engraft in UAE ( Carter.S, 1997 ) . This would assist to cut the fabrication cost as the company would non hold to engage excess labour from the abroad state. In add-on, place based fabrication would do it less hazardous than abroad fabrication, it would supply an chance to hold a know-how of the abroad market before doing a immense investing in bricks and howitzer and plus it would besides diminish the possible hazards of operating in abroad ( Carter.S, 1997 ) .

Introduction of the state

The United Arab Emirates is situated on the Arabian Peninsula, and is a alliance of seven Emirates. UAE is located in the Middle East. It consists of a shoreline and havens both external and within the Strait of Hormuz, and following the entryway to the Persian Gulf. Iti??s adjacent states are Oman and Saudi Arabia. The names of seven Emirates are Ajman, Fujairah, Sharjah, Umm Al Qaiwain, Dubai, Abu Dhabi and Ras Al Khaimah. Every Emirate has its ain sheikh leader ( Ipr Middle East, 1999 ) . Every Emirate contains a high extent of political and financial power. Each tribal sheik within his Emirates maintains power over natural resources, and controls commercial activities as good.

The seven Emirates are non considered equal, as hydrocarbon militias are the first footing of grosss, and these militias are non equally distributed among the parts. Therefore, wealth, domination and tallness of economic development vary in every Emirate. Till today, Abu Dhabi is the prima oil manufacturer in UAE, is the richest and the most powerful Emirate. Dubai is the 2nd prima oil maker, and is the federationi??s commercial centre. All around the Earth, UAE is regarded as a booming state holding a world-wide economic importance ( Ipr Middle East, 1999 ) . UAE has strong relationships with many developed all around the universe in footings of trade. UAE has built strong association with US, harmonizing to a research, i??The UAE and the US have nurtured stronger economic ties in recent old ages, in which both states experienced enormous growing in trade and investings. The improved economic partnership reflects the UAEi??s function as a regional leader with respects to economic reform and openness to international tradei?? ( UAE Trade-USA, 2010 ) .

UAEi??s five most prevailing import spouses are United States, China, India, Japan and Germany. On the other manus its top five export confederates are Iran, South Korea, India, Thailand and Japan. In import concern UAEi??s merchandises include ; gold, Ag, assorted metals, machinery, chemicals, conveyance equipments, handcrafts, apparels, manmade narrations, cotton, treasures and gems, electronics and many more. Its basic export merchandises are ; Aluminum, Cu, crude oil merchandises, petroleum oil, metal garbages, gas, telecommunication merchandises, organic and inorganic chemicals, cherished and semi cherished gemstones, S, gold mush and many more ( USAUAE Business, 2010 ) .

Trade Conditionss

U.A.E upholds a broad exchange and moderate trading methods. U.A.E is a member of Gulf Cooperation Council ( GCC ) , other members of GCC are Kuwait, Oman, Saudi Arabia, Qatar and Bahrain. All the affiliates of GCC have decided to synchronise their import charges to five per centum. Furthermore, UAE has besides established the UAE Customs Authority, who builds a usage brotherhood within the UAE to unite Customs Torahs, processs, regulations and certification. The state has sustained non-tariff barriers to merchandise and guess, and they are maintained in the signifier of reticent bureau or distributorship duties. Merely those houses and organisations can prosecute in concern activities in U.A.E who carries appropriate trade licence. The requirements of certification should be pursued by International criterions ( Global Trade, 2009 ) .

Political Conditionss

United Arab of Emirates has built a strong political association within and outside the state. U.A.E has struggled hard to strengthen its centralised establishments, although every part still carries a considerate self-authority. The indispensable construct of making a federal system by U.A.E.i??s authorities is that a notable per centum of every emiratei??s net incomes should be dedicated to the Central Budget of the state. There are no political parties in U.A.E. There is a civilization of tribal consensus, and the swayers embrace their power on the agencies of their dynastic clasp. Swift transmutation, monolithic gait in instruction, and the incursion of a brawny foreign population have altered the mentality of the state ( Bureau of Near Eastern Affairs, 2010 ) .

Economic Conditionss

In the former epoch, the U.A.E. economic system was controlled by agribusiness, pearl production, selling shepherds and flocks and by angling. Ever since 1973, the addition in oil monetary values has created a new roar for the economic system of U.A.E. The crude oil is in great demand, and it has dominated the market, accounting for the bulk of its export grosss and offering considerable chances for investing in U.A.E. Bing a member of GCC, the U.A.E contributes in an extended array of GCC activities that emphasize upon economic concerns. These consists of standard conferences and advancement of widespread processs covering transit, investing, telecommunications, rational belongings rights, trade, banking and pecuniary establishments and other proficient countries ( Bureau of Near Eastern Affairs, 2010 ) .

Social and Cultural Aspects

There is a entire population of six million people in U.A.E. Out of which Emiratis are below 20 per centum, half of the population are South Asiatic, and a considerable sum are North African and Europeans. Majority of the citizens are Sunni Muslims. Other occupants are Christian, Hindus and Muslims who have come from other states, and have settled in U.A.E. Most of the approaching coevals of U.A.E is knowing, and have consciousness of the Western good cognize trade names. Educational values are turning rapidly ( Bureau of Near Eastern Affairs, 2010 ) . The people of U.A.E. are passing a high sum of money on following latest engineerings.

Market Considerations

The citizens of U.A.E are extremely trade name witting. All the latest engineerings and inventions are good accepted by the occupants and authorities of the state. A figure of international trade names are opening their franchises in U.A.E. There is a immense demand of Western merchandises, and are extremely accepted in the market.

Product localisation and Selling attempts

The demand of solar panels is increasing since the last 15 old ages. The solar revolution has built a predominating force in the energy sphere. The company has established the solar panels that employ arrays of solar photovoltaic cells to reassign photons in functional electricity. Our solar panels help to supply uncontaminated, renewable energy from the Sun. Our solar panels create variable sums of electricity, and supply an effective lifetime of approximately 20 to 25 old ages. A comparative period of disagreement may happen from fluctuations in the running period of the solar cells, and their worth and electrical power end product can diminish with the transition of clip. The company would be offering solar panels of high quality with premium pricing scheme.

Decision and Recommendations

The judicial admission of solar energy is lifting all over the universe. The authorities of United Emirates of Arab is besides demanding for new alternate engineerings and solutions. Harmonizing to the article U.A.E Interact the authorities is doing joint ventures with other states, and are organizing solar panels and a undertaking named Clean Development Mechanism ( CDM ) in Abu Dhabi ( UAE Interact, 2010 ) . This shows that there is immense range of solar panels in the U.A.E. market.

Harmonizing to my point of position, our company should see the best market entry manner for get downing up the concern in U.A.E. Strategic Alliance is an efficient manner of come ining the UAE market. As so many other houses are believing of puting a solar panel in UAE if our company would do an confederation with international companies, it would be good because the company would easy run on planetary graduated table and as there is a high strength of rivals the partnership would leverage the growing. And this would minimise the hazard of come ining the new market and it would maximise the net incomes.