Free Trade and Industrial Zones in the UAE Research Paper

Free Trade and Industrial Zones in the UAE - Research Paper Example The establishment of free trade and industrial zones may well be considered as a unique step which other Middle Eastern countries have not yet emulated. The UAE has proven though that there are advantages gained for diversifying through such approach. Two very successful free trade zones, Jabel Ali Free Zone Area (JAFZA) and Dubai Airport Free Zone Area (DAFZA), have contributed significantly to the economy. Indeed, free trade zones are not without its share of problems and these also have negative impact to the economy. Nevertheless, the benefits far outweigh the costs. JAFZA has made very relevant contributions to the UAE’s economy since its establishment. In fact, its share in the Dubai’s economy is very strategic. It accounts for more than 25 per cent of the total trade being conducted in the city. In just 25 years, it saw the establishment of many companies in its vicinity. The year 2010 is considered as its most successful year. By the end of this year, there were 480 companies that set up facilities in the area. 55 of these are multinationals and were draw by JAFZA’s â€Å"customer focused value proposition that brings together products, all relevant services as well as value added benefits under one roof to form an ecosystem that is conducive to business† (Banga, 2011). The entry of such investments has, in turn, benefited the UAE in more ways than one. It is one of the entities that continue to fuel the country’s growth, resulting in UAE’s distinction as one of the countries in the region with the most stable economies. JAFZA has been a major factor in increasing the country’s gross domestic product. This is proven by information from the International Monetary Fund and the Dubai Statistics Department which says that â€Å"growth over the last 15 years in the number of companies at JAFZA are 3 times that of the  UAE  GDP, and that it outpaced the rate of growth of Dubai's GDP by nearly one and a hal f times† (AME Info, 2010). It is not just in the area of investments that the UAE has benefited from the operations of JAFZA. The Free Zone has also created thousands of jobs for the locals and for migrant workers. In 2001, there were about 40,000 people employed in the companies operating in it but this number further increase in meteoric fashion that by 2010, a workforce of 115,000 was achieved (Banga, 2011). JAFZA has definitely been very advantageous to the emirates. Despite the positive contributions though, the existence of JAFZA and free trade zones, in general, has negative repercussions as well. Per free trade zone rules, the companies that operate here are not required to comply with the laws of the UAE regarding visa requirements, employment, and labour market nationalization. With such freedoms, foreign investors can develop flexible labour schemes that may guarantee higher profits without fear of government intervention to protect the workers’ rights. Hence , this puts the workers in the free zones at a disadvantageous position. While the companies within the premises of the free zone earn bigger, they also enjoy tax holidays or exemptions. JAFZA, similar to other free trade zones elsewhere, guarantee that â€Å"multinational companies enjoy full ownership and profit repatriation within the confines of the free-trade zones† (Kanna, 2011, p.142). This means that the country does not get any share in the profits generated through the operations of the foreign companies existing in

Editi a paper Essay Example | Topics and Well Written Essays - 500 words

Editi a paper - Essay Example Moreover, since we dealt with employees in different companies in Saudi Arabia, a survey was the only possible way viable alternative to reach those employees. The survey consists comprised of 18 questions. A total of 43 people responded to it. 93% (40) of the respondents were male, and 7% (3) were female. The sample size was ample adequate to determine ascertain the real genuine needs of the above mentioned employees target group. The second (change this to â€Å"first question† if the mistake is not deliberate) question was about the employees’ highest level of education. This question included 4 subcategories: vocational certificate, bachelor’s degree, master’s degree, and doctoral degree; 32.6% (14) of the respondents have reportedly had a vocational degree, 7.0% (3) have had a master’s degree, 2.3% (1) have a doctoral degree, and the rest (58.1% or 25) have a bachelor’s degree. (See Figure#1) Since we are dealing this survey dealt with employees who rarely enroll in English courses due to the busy nature of their job their busy work schedules, another question asked seeking information regarding their enrollment in programs imparting English education was included in the survey design whether they still study English. The result revealed that 59.5% (25) are were enrolled in still taking English courses, and while the remaining 17 are were not. This The outcomes suggests highlights the participants’ need willingness to improve their English language skills. Although it is relatively difficult to derive accurate inferences regarding an individual’s aptitude towards a particular language a person cannot judge his or her level of proficiency in language due to owing to variable proficiency measurements, the specific questions designed to seek information regarding their proficiency level were included in this survey asked the employees about their proficiency level. The results indicated that 42.9% (18) considered their proficiency