Published on March 7, 2014
BUSINESS OPPORTUNITIES BECAUSE OF ENVIRONMENT IN UAE GROUP 7 - AJINKYA – KETAKI – SUHAIL – DIVYANGANA - TEAM
1. 2. 3. • How UAE transformed environmental adversity into business opportunity • Environmental Regulations and Policies • Outlook
GEOGRAPHICAL FACTORS • Area: 83,600 sq.km • Coastline: 1318 km • Population : 7.891 million (2011) • Population density : 45 per sq. km. • 78 % population lives in urban area
CLIMATE • Dry, Subtropical type of climate • Rare Rainfall • Hottest months: July – August • Average max temp: above 40˚C • Average min temp: between 10˚C and 14 ˚C
ENVIRONMENTAL ADVERSITIES •Arid region and hence no farming •People were concerned with water, food and provisions to make money •Nomadic Lifestyle
FIRST OPPORTUNITY-CAME FROM • The tribes started to settle down. • Survival pushed them to move from the desert to the seas • AND THEN THEY FOUND PEARLS! • They started trading in pearls and hence tapped their first business opportunity SEA
TRANSFORMING ADVERSITY TO OPPORTUNITY • Japanese invention of cultured pearl lead to loss their main source of earnings. The prior success in oil exploration in the region by US and UK prompted oil discovery in UAE in 1966 • Opportunity that led to a well established society and long lasting business in UAE •
THREAT LEADs to diversification •Oil is a limited source of energy •DIVERSIFICATION and UAE became more than just an OIL player
FAUNA • Falcons and camels were the fauna present in these deserts • Falcons were used to hunt for food • Camels were used as a mode of transport in the desert
•Falconry is a traditional sport and continues to mint a lot of money even today •Camel Racing was a traditional sport and extremely popular in the emirates. It continues to be a popular sport and there customized tracks for the same now
SIMPLE FRUIT EXOTIC IDEA • Dates are being cultivated in the region from 4500 years and used to provide staple food for people in the region • Main food during Ramadaan • Today , it is an integral part of the UAE heritage, and some date sellers are looking to diversify from the dry dates and BATEEL has made it a luxury product.
FROM PEARLS TO PORTS
RETAIL AND LOGISTICS • High demand of eatables and foreign goods • High population of expatriates • Lower internal transportation cost • Surrounded by Red Sea , Arabian Sea and the Persian Gulf • Accessible to rest of the world by waterways • Foreign retail giants entering the UAE market .
H2O+NACL Desalination H2O
LARGEST UNDERGROUND RESERVOIR • Fresh Water supplied by desalination plants • Initially only three days of fresh water back up supply. • Government uses the new technology to bring down the cost • To increase from three to 90 days, they build a underground reservoir. • Largest power and desalination plant opens at Jebel Ali : Capacity : 2060 MW Production: 140 million gallons per day
LEVERAGING THE SUN • High Electricity Demand • Extreme Temperature • Fully Air Conditioned Buildings, Malls, Offices • Desalination process consumes a lot of energy(electricity) • Untapped Solar Energy • Government promoting use of Solar Energy • Masdar City in Abu Dhabi
ENVIRONMENTAL REGULATIONS IN UAE
FEDERAL LAW NO. (7) OF 1993 FOR THE ESTABLISHMENT OF THE FEDERAL ENVIRONMENT AGENCY • The objectives for establishing the Agency shall be: • To protect and develop the environment within the State • To determine the necessary plans and policies to safeguard it from damaging activities, those affecting human health, agricultural crops, wildlife, marine life, other natural resources and atmosphere • To implement such plans and policies • To take all suitable measures and actions to prevent deterioration of the environment.
FEDERAL LAW NO 24 OF 1999, FOR THE PROTECTION AND DEVELOPMENT OF THE ENVIRONMENT • To protect and conserve the quality and natural balance of the environment; • To control all forms of pollution and avoid harmful immediate or long term adverse effect resulting from economic, agricultural, industrial, development programs aiming at improving standards of living; • To develop natural resources and conserve biological diversity; • To protect society and the health of human beings from activities and acts that impose harm to the environment; • To protect the UAE environment from the harmful effect of activities undertaken outside the state; and • To comply with international and regional conventions ratified or signed by the UAE in respect of the protection of the environment.
COMPLIANCE • Must apply for a license from the Federal Environmental Agency or other relevant competent local authority. • The application process involves an environmental impact assessment being carried out.
PENALITIES • • Federal Law sets the benchmark for penalties for non compliance . Penalties can be severe and include fines from AED 1000 up to AED 10 million and imprisonment. • Supplementary regulations or local orders for specific Emirates or free zones may detail their own penalties, therefore it’s important that an entity is fully aware of the specific regulations governing the area in which they propose to carry out an activity.
RECOMMENDATION 1: • Hospitality Industry
RECOMMENDATION 2: • Logistics and Retail
RECOMMENDATION 3: • Solar Energy
RECOMMENDATION 4: SUNGLASSES
NOT RECOMMENDED • Manufacturing firms
CONTD… • Real Estate owing to saturation
SOURCES • uaeinteract.com • euromonitor • nytimes.com • gulfnews.com
“It’s when the scared rats start running away from the sinking market that the true entrepreneurs come in. A true visionary.” - Tim Riggins
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