IRU/ TIR Business Case UAE

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PESTLE Analysis of IRU in the UAE market

The PESTLE analysis has been made for the UAE due to the fact that this analysis provides focus on the external analysis while carrying out a strategic analysis and provides an overview of various macro-environmental factors which has to be considered. This analysis is an essential tool to understand decline or growth of the market, direction of operations and business potential.

Political

The Business Planning Theory is adapted in order to cope-up with the political situation of UAE in which practical and organized approach is used to implement TIR systems (Olivier, 2010, pp. 32-57). There are many countries in the continent of Asia which have signed various agreements with many countries in Europe, USA, Asia-Pacific and amongst themselves in order to make sure that sustainable development and facilitation of road transport can be achieved and they are able to facilitate enhanced trade opportunities and political coperation including the growth of the IRU. This is the reason that these agreements have opened many doors to the world for UAE and have given convenient markets for expanding its network of TIR system. The support from the Government of Dubai is the main strength of the UAE and it makes sure that the development related to infrastructure of the road transport meets the growth of UAE.

The governments also ensures that equal opportunity is provided to all the services providers of road passenger transport system and comparison of GDP growth is performed in transparent manner. However, the overall political instability in the UAE region on the other side may be an obstruction for more expansion and growth of road transport system. Another important factor is that there is no organized political opposition either on the government level or different families ruling within the region. The UAE has been concerned similar to many Gulf neighbors regarding Islamic extremist groups rise in the region (Oxford Business Group 2010, 52-58). Complexity Theory is helpful in the strategic management of any corporation therefore; it can help authority of UAE to made effective transport system in the region (Olivier, 2010, pp. 32-57).

Economic

The authorities of UAE can use Macro-management for dealing with economic changes of the region because this theory is useful for managing overall economic factors on macro-basis. Since road transport system in UAE has been implemented on macro basis therefore, Macro-management is extremely useful in this situation (Olivier, 2010, pp. 32-57). The UAE has been developing its economy at a fast pace and countries of GCC particularly are becoming more sophisticated in different aspects of growth and development of their region. The government has been negotiating with many countries for improved economic cooperation and agreements of free trade in which basic focus is on facilitating and securing trade and international road transport by implementing TIR system in the 22 countries of the region.

This type of development will have a positive impact on the overall UAE economy and road transport system will also be further ...