The United Arab Emirates is a state of the Persian Gulf. The political structure of the state is the Federation of the Emirates. The UAE is considered to be one of the most developed countries in the region. The rapid economic growth is one of the criteria making the country attractive for investing. There is one more factor which should be taken into consideration. It is a political risk.
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The aim of this essay is to analyze the investment appeal of the UAE.
The government of the United Arab Emirates is represented by three branches: the governor of the state, the legislative authority, and the judicial authority. The legislative authority of the country is composed of the president, vice-president, the Federal Supreme Council, and the Council of Ministers headed by the prime-minister.
The president and prime-minister
Nowadays, the post of the president is taken by Khalifa bin Zayed Al Nahyan who governs the country. The post of the president is traditionally taken by the Emir of Abu Dhabi. It means that this post is factually descended. Mohammed bin Rashid Al Maktoum is the prime-minister of the country.
The communist democracy is a term which is, sometimes, applied to the political regime in China. Although the United Arab Emirates shows the rapid economic growth and is open for foreign investments so as China, the communist party does not govern the country. Therefore, we cannot say that the political regimes in the UAE and China are similar.
The index of economic freedom of UAE is 71.1 which is 1.8 more than the previous year (“United Arab Emirates” n.pag.). In the world rating, the country takes the 28th position (“United Arab Emirates” n.pag.).
“The rule of law is generally well maintained, but the ruling families exercise considerable influence on the judiciary” (“United Arab Emirates” n.pag.). The land in Abu Dhabi is government-owned and only the citizens of the country can carry out the transactions with mortgage property (“The United Arab Emirates” n.pag.).
The index of business freedom is 74.0. The average time needed for starting a business in the country is 30 days (“United Arab Emirates” n.pag.). Besides, there are no minimum capital requirements (“United Arab Emirates” n.pag.).
Freedom of press
The country takes the 112th position in the world rating of the freedom of the press (“Press Freedom” n.pag.). The country is considered to be the “enemy” of the Internet. There was a case of the imprisonment of the Internet blogger for his activity.
Freedom of corruption
The perceived 2012 corruption index is 44 out of 100. The country takes the 66th position in the world rating (“Corruption”n.pag.).
Muslims have more rights and privileges than the representatives of other religions.
Taking into account the information presented above, it should be said that the United Arab Emirates is the fast-growing country. The economic indicators prove the credibility of the national economy. However, the law of the country restricts certain kinds of foreign investments.
At the same time, the conditions for starting a business in the country seem to be favorable. The country also has problems with the freedom of speech. The law strikes at the rights of the representatives of the religions other than Islam. Overall, the success of the investments in the UAE depends on the sector of the economy.
“Corruption by Country/Territory” n.d. Transperancy.org. Web. 5 Nov. 2013. http://www.transparency.org/country#SAU
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“Press Freedom Index 2011-2012” n.d. Rsf.org. Web. 5 Nov. 2013. http://en.rsf.org/spip.php?page=classement&id_rubrique=1043
“United Arab Emirates” n.d. Heritage.org. Web. 5 Nov. 2013. http://www.heritage.org/index/country/unitedarabemirates