United Arab Emirates Foreign Investment Regulations Essay
United Arab Emirates Foreign Investment Regulations
The United Arab Emirates (UAE) is a combination of seven countries and was formed the year 1971 immediately after the British withdrew from Gulf war. It has been known as the major exporter of petroleum in the world. In order to reduce over reliance on petroleum the national government has been trying to encourage the foreign investment in Information and communication technology sectors.
However various regulatory frameworks have been enacted by the national government to increase investment in the region. The national government assigns duties to federal government explaining how information and communication technologies are set up by foreign companies. Kuwait and United Arab Emirates have been recognized as centres where sophisticated technologies are found in the Middle East because of the policy of being a free trade zone.
In order to have a competitive ability or advantage in the world market the countries have established a foreign investment regulatory framework to enable them fit well in the information and communication technology market. The investment in ICT has been encouraged to avoid full reliance on petroleum as source of revenue to the national government. The regulatory framework has stimulated the growth of different business ranging from global ,regional to local small and medium Enterprises(SMEs).There have been laws governing the ICT ,foreign direct investment and technology transfer in the countries making them to enjoy competitive advantage in the business environment1 .
A good example of a regulatory law governing foreign investors is the Telecommunications Regulatory Authority (TRA).The law was established in the year 2003 to ensure that there is adequacy in the distribution of telecommunication services in the United Arab Emirates and Kuwait Land. The services to be provided should encompass quality and other elements that bring substantial development to the communication sector. The Telecommunication Regulatory Authority also issue new licenses to the operational Data Services providers (DSPs) and Internet Service Providers (ISPs).The new licenses issued by the TRA is aimed at ensuring development of the Telecommunication sector.
The other role played by the TRA in order to attract and protect young investors in the countries is inviting telecommunication engineering firms to submit their proposals on technical and financial evaluation so that they can help in taking the responsibilities in operating the telecommunications technical office. The Telecommunications Regulatory Authority therefore has contributed a lot in attracting foreign investors to develop the ICT firms due to low growth of information and communication technology firm in both United Arab Emirates states and Kuwait2..
The other Regulation enacted by the national government is the National Telecommunications Regulatory Authority(NTRA).The NTRA has come up with a new tariff offer with an objective of promoting healthy competition between operators so that development in telecommunication field can be enhanced3 .For instance there has been a contractual or agreement model of interconnection that makes it easy for an operator to buy a capacity of interconnection for a fixed tariff .This has been enacted to bring a substantial development in the countries.
The slow development in Information and Communication Technology sector in UAE and Kuwait called for enactment of various foreign investments regulations to enhance growth in the sector. The foreign investors in the communication field have been encouraged to invest so as to make the states have competitive advantage in the global market. It also aims at reducing full dependence on petroleum as the only source of revenue to the national and federal governments.
Christian Campbell and Editor Campbell .Legal Aspects of doing business in the Middle East.
London: Lulu 2006.
Elizabeth Fox Genovese.The Middle East and North Africa 2000.Middle East: Europa
World of Information .Middle East Review. The economic and Business report .London: Kogan
1 Christian Campbell and Editor Campbell .Legal Aspects of doing business in the Middle East. London: Lulu 2006
2 World of Information .Middle East Review. The economic and Business report .London: Kogan 2003
3 Elizabeth Fox Genovese.The Middle East and North Africa 2000.Middle East: Europa publications 2002.
University/College: University of Chicago
Type of paper: Thesis/Dissertation Chapter
Date: 19 March 2017
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