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Food Industry Uae

Essay by   •  February 27, 2013  •  Case Study  •  1,246 Words (5 Pages)  •  1,277 Views

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Food industry

United Arab Emirates is a combination of the modern and the traditional. It enables the country to develop an administrative structure that is modernized as well as ensure maintenance, adaptation and preservation of traditions of the past. Slow down in real estate, construction and tourism sectors have hit the United Arab Emirates economy. This paper focuses on examining the analysis that the local and multinational companies need to engage in United Arab Emirates culture and industry structure in order to manage launching of new products (Rosemary, 143).

Exporters with the will to establish personal relationships, consolidation of shipments, and meeting the labeling requirements of the UAE market will find a sector that is growing rapidly where they can sell a wide range of products. The UAE food retail sector continues its aggressive growth. There is build up of more and more type stores. French retail chain is already operating in the market (Rosemary, 192).

Aruvian's Research analysis of food retail in the UAE gives a complete insight into the food purchase and consumption pattern UAE. It helps the international hyper marketers and retail giants to focus and have a better understanding of the offers a larger point of view on the business volumes that are handled by the UAE food retail industry (Rosemary, 200). The report gives significant bearing on the internal mechanisms of the industry at bay, providing a crucial answer for the new investors whether to go on or hold on investment. Aruvian's Research report presents a future growth outlook for the UAE food retail industry which gives a better understanding of where this dynamic industry is heading (Rosemary, 200).

Food suppliers from all over the world compete vigorously for market share in the UAE. The greatest competitors in the Australian products are the European Union, US and Asian products as lower freight rates work in favor of these suppliers. The UAE and other countries such as Kuwait, Qatar and Saudi Arabia are making attempts aimed at putting together uniform laws relating to labeling and safety of food for the region. However, there are differences in regulations whereby the countries do not agree, and each country has its own regulations.

Advertising is a tool of communication that has the ability to change a people's way of life and influence the way countries behave and react. At the same time, corporations and multinational companies must be sensitive and flexible in their means of advertisement as they seek to venture new markets. There are some impediments to companies conducting business in Dubai. For instance, in order for a business to operate in the UAE, fifty percent of the business must be owned by a citizen of UAE (Damyanova, and Singer, 89). This ensures that there is control and revenue to the local citizens and helps them in maintaining the values and traditions of their country. Foreign countries can approach the rule in two ways. First, a new business can look sponsorship and give them fifty one percent of their revenues. The second method which has become more popular in the recent years involves businesses looking for a citizen of UAE that is willing to sponsor them. In exchange for this sponsorship, the citizen is provided with a large sum of money and then gets to keep all the future revenue of the company.

There are difficulties in gaining citizenship in the UAE. Originally, expatriates could not own land in the OAE. This law was enacted for protection of Arab traditions and culture of Dubai because most of the UAE'S population is foreign born. Dubai is turning into a multicultural city whereby people of various nationalities are to discover familiar things. This is cosmopolitanism that offers a certain level of comfort that makes an expatriate business community feel contented and respecting Emirati culture at the same time. Consequently, there



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