Nations and sectors leading in shaping global trade

Throughout recent years, the scope of global business and international trade has seen optimistic improvements. Analysts and companies are becoming more and more confident with regards to global trade and opportunities overseas. This confidence perhaps, more importantly, is as a result of the global trade growth exceeding initial forecasts. It could also be as a result of the stabilization of China’s economy and demand.  These factors could be a pointer to the possibility of having a year without a major economic recession which has so far, been an elusive dream.

Why China is so important to the global economy

The Chinese economy is the largest contributor to the world GDP growth. This contribution is perhaps more so because the country is most likely unable to withstand a serious shock without toppling back into recession.

If the Chinese GDP grows to 7.0 percent in 2018 – in line with their official target – China will account for over 1.2 percent of the world GDP growth. The rest of the nations would contribute only 61 percent of the total.  This contribution, given their numbers and as opposed to China is not particularly impressive. For example, the UAE’s economic growth is expected to accelerate to 4.4 percent in 2018 driven by rebound in investment, trade, and manufacturing. This is enough to contribute only about 0.7 percent to the overall world GDP growth which is slightly above one-fourth of China’s contribution.

Shaping global trade

For the first time in history, the world’s leading economic activity has experienced a great shift. The service sector has now become the world’s main economic driver accounting for 64 percent of global wealth. This is against a backdrop of industries such as Agriculture, Manufacturing, and Mining, among others. As it stands, sectors like banking, health, shopping and social work control the majority of global wealth and trade.

As would be expected, the United States still leads when it comes to service exports contributing more than 30 percent of the world’s service exports per year. China ranks a distant second with a gap of over 10 billion dollars in services per year between them.

Yet, China makes the most exports in the world overall. Their economy is still recovering and they have, meanwhile, reported an increase in imports and exports. The rise in the rates of lending and the decrease in prices still leave China unscathed. Economists expect that in the months to come, China will experience a decrease in the rates of imports and exports, but there exists a strong and constant demand from the United States and the European Union which could be highly beneficial for the Chinese economy.

However, depending on the strategies applied by other governments, they stand a chance of taking for themselves a piece of the pie. Employing strategies that will improve the service industry sectors could propel them to just where they wish they could be and the UAE has never been better placed for this as it is now. What with projects such as the Expo 2020 and others that are in implementation.

The UAE economy has, after all, been resilient to the impact of the slump in oil prices. It has also benefited from the diversity of economy excellent infrastructure and political stability it has.

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UAE healthcare industry

The United Arab Emirates has witnessed a lot of changes in the healthcare sector in the recent years, most of which have propelled it to the limelight in global health care. The country now has a healthcare city and is home to some of the most prominent clinics and hospitals in the world. It has fostered many initiatives including Dubai medical tourism.

The UAE has a multinational population being home to people of differing cultural, religious and educational backgrounds. This presents a challenge for the government in regards to introducing a healthcare system that can effectively care for their needs. Over time, both the public and private sectors have been very much involved in addressing the healthcare needs of the community.

The healthcare market has continued to evolve and the government has spent over 2.5 percent of the GDP on healthcare. It has also been making good healthcare investments to attract expatriates and GCC nationals. Traditionally, these people traveled abroad for their medical care.

The Dubai Healthcare City (DHCC) has also been developed as a free zone that provides international health providers a wide range of clinics, hospitals, specialized centers and even a medical training center.

Public hospitals have also seen efforts to be affiliated with renowned international healthcare providers. One commendable milestone has been the establishment of the Abu Dhabi Cleveland Clinic. The private sector has also been involved in investment towards the growth and development of the sector.

In general, the Dubai healthcare industry is doing well and could serve as an example for other nations that want to be global leaders in healthcare.

Dubai has a market-friendly business environment and is transparent and stable in its regulations. This contributes to efficiency in the workplace and is the major attraction for investors in its healthcare sector in addition to its wealth of healthcare professionals.

Dubai recently introduced a mandatory health insurance policy which will see the increase in the utilization of public and private facilities. This will also help in attracting investment, especially when coupled with the government’s support for the healthcare sector as evidenced by the establishment of the Healthcare City free zone.

The main strength of the UAE healthcare industry lies in its ability to adopt new ideas which make it fertile for tangible outcomes. As a country, it has demonstrated its ability to welcome innovation and to implement rather quickly.

Even though the population they seek to serve is multinational, it is also small enough to be able to be managed easily and yet not too small to hinder big results. It is not a surprise that it is able to build a wealth of databases.

According to one industry expert, Dubai is a place where closing the loop is possible in regards to capturing personal information in a detailed manner from birth. Individuals trust the government with their data because the government sponsors the lifetime cost of healthcare. This is one of the drivers of their successful health projects.

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Registering a service business in Dubai

Starting a business in the UAE can be a legal nightmare if you do not have the right kind of information, but, once the legal procedures are sorted, it should take not more than a week to get everything done. This article explores the things to be considered to have the process run smoothly.

Consider the type of license

To register a company in Dubai, there are three kinds of licenses that are given. The commercial license is for companies that will engage in trading activities and the industrial license is for manufacturing companies. For a service business, you require a professional license which is normally issued to service providers, artisans, and other professionals.

Local Dubai company licenses are usually issued by the Department of Economic Development. It operates in different locations but the main office is near the clock tower and is where the businessman must go to get comprehensively served.

Business licensing requirements

For banks and other financial institutions, there must be the UAE Central Bank approval. Insurance firms must be approved by the Ministry of Economy and Commerce. Companies offering medical services must be approved by the Ministry of Health. In addition, to this, (and for all other service business types) business registration must involve the Dubai Chamber of Commerce and Industry.

Consider the legal business structures

The federal law defines seven legal structures for business organizations that include; general partnerships, partnership in commendams, share partnerships, public shareholding, private shareholding, limited liability, and joint venture. The best options for especially mid-sized service businesses and small ones are the shared partnership and limited liability.

Choosing a representative or branch office

If you are a foreign entity interested in setting shop in Dubai, you can own all of your business as long as you have a representative. The local agent must be a UAE national. The option for business registration in this regards is covered by the Commercial Companies Law.

To register a company, therefore:-

  • Decide who you want your local agent to be

Consider factors such as whether you want him to assist in dealing with government procedures or you need just his details. Also, consider the yearly fee you are willing to pay and whether you have a good rapport.

  • Get an activity approval from the DED and a name

You can apply for this on a standard application form that is submitted to the Department of Economic Development.

  • Look for premises and make a contract as a tenant

A business in Dubai must have premises and evidence of this is through a tenancy contract.

  • Formulate a Memorandum of Association (MOA) with the sponsor

You can have this made for you from any law firm. The document must specify the details of the agreement including a special arrangements and an ownership percentage (among partners) section.

  • Submit MOA and the License application at the DED together with the necessary legal requirements and tenancy contract

Charges and fees are paid at this stage. You should be able to get a license a week after this.

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