Abu Dhabi is one of the most significant of all the emirates of the United Arab Emirates. It has the second largest urban settlement in the country and acts as the capital for the all the emirates. Apart from being the most populous of the emirates, Abu Dhabi is known for being a major economic hub in the country.
The Department of Economic Development, an agency within the government, is the major promoter of export trade (DED, 2012). It provides support for firms that are involved in the export trade. It is the Division of Foreign Trade and Export Support that aids the firms in establishing export business. This department has established several programs in order to support export trade by foreign and local firms.
Foreign trade and export division has been holding seminars for the managements of companies in the emirates to educate them on the need for export and the benefit of exporting their products (DED, 2012). These seminars are aimed at minimizing the perpetual dependence of the firms on the local market.
In addition, the division concerned with exports endeavored to provide local companies with information regarding the nature of regional markets. Current trends and logistics regarding the expected conditions in the market are also available from the agency (DED, 2012). The division also holds meetings with banks to furnish them with information regarding the export market. This is intended to encourage the banks to finance projects initiated by the local companies in the foreign market.
Another effort towards promotion of exports is the organization of orientation visits to the neighboring countries by the export division. Representatives of local firms visit other countries in the region to observe and learn business practices prevailing in the particular countries.
The practices observed include the legal limitations that the companies may face while starting an export business in the specific countries (DED, 2012). Furthermore, the local firms get to learn of the opportunities that trade policies in the potential host countries offer to their businesses.
The export division provides customized services to businesses by investigating the international market for them. After completing the investigation, specific recommendations are made to fit the objectives of the particular organization (DED, 2012). This enables the firms to establish the scale of the chances of success in their operations in the new market. In addition, the firms are able to know the business trends and culture in the potential markets.
Government’s initiative to solicit for finance for the local firms to facilitate establishment of export trade is an important initiative. This strategy provides a means for the exporting firms to obtain capital from banks (Simerson, 2011).
It also furnishes the banks with information about foreign markets in order to win their trust. Due to this trust, the export firms are able to obtain essential funding. In the past, the financial institutions in the United Arab Emirates were not willing to fund export trade due to uncertainty about the foreign market.
The orientation programs organized by the export division also help the companies to familiarize with the legal environments of the foreign markets. Using this information, the firms are able to develop the strategic plans they use in establishing profitable export trade.
The provision of customized services is of critical importance. A firm with the intention of starting an export business has a reliable source of information for strategy formulation Knowledge of legal environment and social structure is essential in strategy development (Jansen, 2009). Furthermore, firms are able to use the information provided to outline their competitive advantages in relation to the potential markets (Jansen, 2009). This is an important aspect of strategic decision making for any firm.
References
DED, E. D. (2012, April 5). Export Promotion – Department of Economic Development. Home – دائرة التنمية الاقتصادية. Web.
Jansen, M. (2009). Knowledge is the organisation’s essential source of competetive advantage A discussion. München: GRIN Verlag GmbH.
Simerson, B. K. (2011). Strategic planning a practical guide to strategy formulation and execution. Santa Barbara, Calif.: Praeger.