Pest Analysis of Uae Banks

3884 Words May 5th, 2008 16 Pages
Executive Summary

In this report we did a meticulously researched investment products and financial services for Ms Prakesh, Regional Marketing Manager of MFS. We wrote about banks in the UAE and the tow main categories of banks that are local banks and branches of foreign banks. However the number of banks of both national and foreign banks reached 61 banks, which shows the success of the financial services in the UAE. We also analysis the external macro-environment that affects all firms of industry, PEST analysis is a short form of Political, Economic, Social, and Technological factors that should be considered for any foreign investment. We have analysis for Ms Prakesh all those factors and we found that the UAE is a very suitable
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Those factors are:

1. Gross Domestic Product (GDP).
2. Interest Rates.
3. Inflation.
4. Total number of workers.

Gross Domestic Product (GDP)
GDP purchasing power parity- $51 billion (2001) but it increased a lot that it becomes Dh246 billion (US$67 billion) in 2002. The GDP per capita was changing through the last 6 years that it was $18,839 in 1997 to $19,173 in 2002.
Interest Rates
The Central Bank is the bank that is manage and control all the banks in the country and issues the interest rate for them. Interest rate depend on the demand of shares and also the business activities.
Inflation Rate
The inflation rate in the UAE in 2000 is 1.5% to 2% and it get lower than the year 1999 that it was 3.1%.
Exchange rate
1 US Dollar = 3.67320 Utd. Arab Emir. Dirham
1 Utd. Arab Emir. Dirham (AED) = 0.27224 US Dollar (USD)
Total number of workers
The total number of workers in the UAE rose during 2000 by nearly 60 thousand compared to 1999, reaching 1.6 million workers.
Social Factors
The social factors are important data in the process of analyzing any market in the world. It includes the demographic and cultural aspects of the external macro-environment. It helps the organization to make the right decisions regarding customer’s needs. In general, the social factors in the UAE have a great impact in determining the size of the UAE labor force. There are some essential forces

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