Introduction to UAE

Agenda

� Demographics & UAE Consumption

� Economic Situation

� Relevant Local Aspects

Agenda

� Demographics & UAE Consumption

� Economic Situation

� Relevant Local Aspects

DemographicsSome Key Facts…

� Population in 2006: 5.63 million.

� Population � estimated for 2010: 7.557 million. Census will be conducted in April 2010

� Results from a survey conducted by Ministry of Economy in 2008 concluded that the average size of a household in the country in 2008 was 5.1 with UAE national households comprising 19.1%; expatriate households account for 80.9%.

� The Expatriate population mainly comprises of people from the Gulf region (Saudi Arabia, Yemen, Lebanon), Asian subcontinent (India, Pakistan, Bangladesh, Sri Lanka and Nepal), East Asian countries (China, the Philippines, Thailand etc) and Westerners (Europe, Australia, Britain etc.).

� UAE has been steadily witnessing low birth rate (2.56 children per woman). Life expectancy is now 76 years for women and 74 years for men.

Income and economy

� According to the Dubai Statistics Centre, Dubai's inflation rate stood at 4.1 per cent in 2009 as compared with 11.3 per cent in 2008. Housing, water, electricity and gas price growth, accounting for the largest share of the Consumer Price Index (CPI) weight, stood at 2.4 per cent in 2009.

� The average monthly income for national households (Emiratis) is Euro 7,089.12 and expenditure is Euro 4,472.56, while non-national household income (Expatriates) is Euro 2,932.74 and expenditure is Euro 1,876.53.

� The percentage of expenditure on housing and utility was 39.4% of the total income, while expenditure on food and beverages was 14.2%.

Some Key Facts…

Conversion rate: 1 Euro = 5.14 UAE Dirhams

Demographics and ConsumptionSome consumption facts

UAE

60.9%

200% +

59%(2004 data)

55.4%(Estimated for 2009)

PC / laptop at home

Mobile phone

Credit card

Car

The typical UAE citizens and residents

The typical Emirati citizen

� Most Emiratis still value traditional things, perceive themselves as a part of «We are Arabs» culture, whereas others adopted some western values: like focusing on career, success and independence.

� Women used to be in the subordinate positions, but it is changing now. The large proportion of the Emirati women prefer to work. Their importance in the family (decision making) is increasing.

� There is a change of values especially in young generation (those straight out of college or still in college) towards more individualism and acceptance of women as being career oriented and more

independent.

Values of the Society

The typical Emirati citizen

� The overwhelming majority of Emiratis are family-oriented people and many parents support their kids after they have reached majority.

� “To be happy” means to have children and growing family.

� Leisure time (after work) is dedicated to the family and friends or following sports.

� Generally, the Emirati society is characterized by strong family ties.

� In traditional households, women still have responsibility to maintain the household. Slowly, the family values are shifting where both the partners share responsibilities based on mutual understanding.

� The majority of the Emiratis see themselves as hospitable, although they also prefer preserving their own privacy.

Family, Household and Hospitality

The typical EmiratisWork and Career

� Family and stability are most important as well as loyalty toward the employer (often a governmental organization).

� They prefer regular working hours and value recognition and things like

� Social provision

� Accommodation provided by the state

� Attitudes towards work vary considerably among younger generation:

� They are constantly looking for a better position, are mobile and take risks.

� More and more young women becoming career-oriented.

� Young man and women highly appreciate:

� High evaluation of their efforts

� Self-realization

� Connections/networking is extremely important in all spheres of life.

Living conditions

� Housing in UAE is on a par with the most developed areas in the world.

� In Abu Dhabi alone, the government has built more than 35,000 apartments which have been given to citizens through long-term soft loans. The idea is that the citizens can lease the apartments in order to produce income.

� Housing at low- and controlled-rent has also been built all over the country for both citizens and expatriates.

� Electric power stations and desalination plants, often fuelled by gas from the country's oil fields, ensure a constant supply of water and electricity for residential, industrial or agricultural consumption.

Living conditions for Expats

� Most of the Expatriates live in Flats/ apartments in Dubai, ensuring a personal space for themselves and their loved ones.

� Expat Asian bachelors generally live in shared accommodation with colleagues or friends due to high cost of living

� Of course, there is different housing according to economical status of habitants:

Labor class living condition Luxury livingMiddle class home

Leisure activities

� Main activities are as follows:

� Barbeque, sheesha

� Socializing (meeting friends and relatives)

� Getaway from all other activities

� Shopping/ visiting malls

� Sports activities

Agenda

� Demographics and Consumption

� Economic Situation

� Relevant Local Aspects

UAE economy

Great oil finds since the 1960's has brought UAE wealth and progress. Still, over the last 20-30 years, UAE's success in the Middle East is largely owned to a national focus on developing alternatives to the oil industries.

This involves very successful programs to turn designated ports of the Emirates into trade centres, development of industries, refining of oil as well as land reclamation.

In order to accommodate foreign investments, free zones like Jabal Ali have permitted extensive rights to foreign investors, like the right to 100% foreign ownership, absence of taxes and duties.

UAE has 6 international airports. The busiest among them is Dubai, which served 18 million passengersin 2003, aiming at 30 million by 2010.

Tourism has been strongly promoted especially since the mid-1990's, the number of visitors passed 1 million in 1993.

Emirati dirham was introduced in 1973 and was fixed to the US dollar in 1997.

With the many young emirates graduating from higher education, a process of taking back the jobs to nationals is encouraged by the government. In particular have very few jobs in the private sector been on the hands of nationals.

Economic Situation 2009

� High assessment of UAE's economic strength on the country's extensive reserves of hydrocarbon resources, high per capita income and large holdings of offshore financial assets.

� The country's high GDP per capita of $36,000 (Dh132,228) is a key indicator of its economic strength and capacity to meet debt obligations.

� IMF expects UAE economy to return to growth in 2010 by 0.6 percent, as Dubai's economy continues to contract. That would compare with 6.1 percent and 5.1 percent in 2007 and 2008, respectively.

As on 30th December 2009

Other indicators of economy

� GDP composition by sector (2009 estimate):

� Services (50.2%),

� Industry (48.6%),

� Agriculture (1.1%)

� Inflation rate (consumer prices):

� 1.5% (2009 est.) and

� 15.8% (2008 est.)

� Unemployment rate:

� 2.4% (2001 est.)

Agenda

� Demographics and UAE Consumption

� Economic Situation

� Local Aspects

Local Aspects

� Dubai is the biggest of all the 7 emirates in UAE in terms of population size.

� The majority of residents (Expats) live in apartments or flats.

� The average income per one person in UAE now is:

� In private business: 1,500 $ per month

� In state organizations: 700 – 800$

Snapshot

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