The evolution of a company in the realm of the UAE economy presupposes facing a range of complicated choices. Although the UAE realm facilitates a certain economic advantage, it still poses a range of challenges to entrepreneurs. By aiming at achieving corporate and economic sustainability, a local organization may survive and even thrive in the environment of the UAE economy. Though the concept of sanctions, which is often viewed as the fastest and the most efficient one, doubtlessly has its advantages, it still seems inferior to the use of economic zones as a tool for information management and better cooperation.
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Policy Goals and the Reason for Their Choice
Locating the economic goals for the company in question and its ostensible allies, one must mention the fact that sustainability and consistent growth are the highest priorities on the agenda of the most advanced organizations nowadays for several reasons. First and most obvious, the fact that sustainability contributes to an impressive reduction of conflicts both within the workplace and between the company and its partners must be named.1 Defining the performance of an organization in a variety of ways and facilitating the development of employee motivation, the given phenomenon can be considered the ultimate goal of the organization in question as well. Seeing that the company will have to communicate with foreign partners, maintaining proper proficiency rates, and complying with the key principles of the ethical code is essential for avoiding conflicts between the company and its presumable partners2
Another essential goal concerns stakeholders’ satisfaction. The reasons for the choice of the specified policy are also obvious; as long as the organization keeps all those concerned consented with its choices, it will be able to retain its high position in the list of the UAE major entrepreneurship.
The concept of economic zoning, which has been chosen for the specified purposes, though not being related directly to the goals listed above, creates the premises for stakeholders’ satisfaction and the introduction of sustainability within a firm. Once the obstacles standing in the way of direct cooperation between different companies are removed, the firms are capable of avoiding any possible misconceptions and providing the product of better quality and in a much more expeditious manner at that. Moreover, the fact that the approach mentioned above allows for a major financial advantage may be interpreted as an opportunity for investing in the sustainable development of the organization, particularly investment into its staff and fostering efficient and experienced employees.
Designing Economic Tools: What Will Leave an Impact
Economic zones as the safest way of addressing the issue
Though practicing a regular profession was an obvious choice for an employee several decades ago, in the 21st-century environment, when freelancing has become outstandingly popular, priorities have changed. A range of companies employ the staff that considers the current job and even profession only a step in their evolution, and not the end of their professional road. Therefore, the necessity to consider a shift to the free zone economic principle becomes quite obvious for a UAE organization nowadays.3
The concept of economic zones, though having been in the project for quite long in the UAE, has not drained its creative potential yet. According to the recent statistical data, there are twenty-one economic zones in the UAE at present. Moreover, the fact that different types of economic zones are registered within the state allows for an assumption that the local entrepreneurship is provided with all elements required for their further growth4
It should also be noted that the specified scenario does not presuppose that the employees should require office space. This can also be considered an argument in favor of the chosen model. More to the point, the concept of zoning gives the company significant financial benefits, including a 100% import and export exemption. For an organization that deals with foreign companies, including foreign suppliers and trade partners, the specified financial benefit is of utmost importance, as it allows carrying out a variety of transactions for free and, therefore, saving for other essential elements of running a business, such as a brand promotion or insurance5
The fact that the company will be capable of repatriating both capital and profits fully also deserves to be listed among the reasons for the company to apply the economic zoning approach. As it has been stressed, though, the current method of managing a variety of business processes, including the trading and the financial ones, may need a better structuring and orderliness. More to the point, the idea of zoning means that the company will have to think its logistics strategy through in a very thorough manner and make the process of supplies or product transfer as less costly as possible. Indeed, in the light of the fact that the area of the company’s operations may be quite vast, the logistics approach, specifically, the transportation issues, must be elaborated on in a very thorough and detailed manner.
Sanctions as the least feasible way of improving the situation
On a range of occasions, the need to pressure economic partners into being cooperative emerges. In the realm of the UAE, where partnership on a global level occurs among the local organizations and their European or American partners, the necessity to ensure full compliance with the UAE trade principles and laws emerges. Otherwise, misunderstanding and even fraud may occur.
There is no need to stress that economic sanctions are often used as one of the most efficient tools in achieving economic statecraft and developing economic stability within the state. The given scenario, however, does not seem acceptable for the UAE, as the country thrives on the economic relationships with its partners, and the state leader will have an economy in a deadlock soon after approving of sanctions for its trade partners6
Indeed, seeing that a range of the UAE major entrepreneurship leaders has business partners abroad, encouraging sanctions based policy is most likely to disrupt the current process of integrating into the global economy. In case specific states express their hostility towards the UAE directly, the application of sanctions may be viewed as a possibility; however, at present, sanctions are not what the UAE economy needs.
Even though the tools chosen for the promotion of the organization in question can be viewed as flawed, they still allow for attaining the company’s key goals. Specifically, the fact that zoning promotes organizational sustainability within the global environment should be mentioned. However, apart from the characteristics mentioned above of the tools chosen, the possibility for cutting financial losses and using the obtained benefit for investment in the staff can be interpreted as a weapon for motivating the employees, therefore, increasing their motivation.
Alves, Ana Christina. “Chinese Economic Statecraft: A Comparative Study of China’s Oil-backed Loans in Angola and Brazil.” Journal of Current Chinese Affairs 42, no. 1, pp. 99–130.
Baldwin, David. “Techniques of Statecraft.” In Economic Statecraft by David Baldwin, 8–26. Princeton, NJ: Princeton University Press, 1985.
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Baldwin, David. “What Is Economic Statecraft?” In Economic Statecraft by David Baldwin, 40–50. Princeton, NJ: Princeton University Press, 1985.
Levien, Michael. “Special Economic Zones and Accumulation by Dispossession in India.” Journal of Agrarian Change 11, no. 4 (2011), pp. 454–483.
Nyarko, Yaw. “The United Arab Emirates: Some Lessons in Economic Development.” EconStor 11, no. 1, pp. 1–5.
Zhang, Keitan. Smart Bully – Explaining China’s Decisions to Impose Economic Sanctions. Austin, TX: The Annual Meeting of the International Security Studies Section of ISA, 2014.
1 David Baldwin, “What Is Economic Statecraft?” in Economic Statecraft by David Baldwin (Princeton, NJ: Princeton University Press, 1985), p. 45.
2. Ana Christina Alves, “Chinese Economic Statecraft: A Comparative Study of China’s Oil-backed Loans in Angola and Brazil,” Journal of Current Chinese Affairs 42, no. 1, p. 108.
3 Michael Levien, “Special Economic Zones and Accumulation by Dispossession in India,” Journal of Agrarian Change 11, no. 4 (2011), p. 458.
4. Yaw Nyarko, “The United Arab Emirates: Some Lessons in Economic Development,” EconStor 11, no. 1, p. 3.
5. David Baldwin, “Techniques of Statecraft,” in Economic Statecraft by David Baldwin (Princeton, NJ: Princeton University Press, 1985), p. 17.
6. Keitan Zhang, Smart Bully – Explaining China’s Decisions to Impose Economic Sanctions (Austin, TX: The Annual Meeting of the International Security Studies Section of ISA, 2014), p. 5.