Ms. Shima, an MBA a leading Business School from USA who returned to UAE after

5 years of working with leading global consulting frm (specializes in consulting online

businesses) in USA to take over her family business from her father. The family

business primarily involved in traditional trading of food products within UAE and

GCC countries. Recently the family business is suffering a loss due to mounting

competition from the competing companies within and outside of UAE. However, the

family business has a fund of around 50 million allocated for further investments. Ms.

Shima has a specialty in consulting online businesses to achieve scale and growth. Thus,

Ms. Shima intends to restructure the family business and wishes to enter online business

considering the tremendous growth potential for online businesses in UAE in the recent

years. UAE has 99% internet connectivity and houses most of the online companies for

the proportion its population (around 10 million as on 2022). UAE also witnessed 53%

growth with USD 3.9 billion in 2020 and expected to reach USD 11 billion in 2025.

UAE is expected to register annual growth of around 10% per year from 2021-2025

UAE has a stable governance and investor friendly regulations. UAE GDP bounced

back in 2021 amounting to USD 421 billion and expected to reach USD 501 billion in

2026. UAE houses diversified population from around 200 countries of the World.

UAE per capita income also bounced back in 2021 amounting around USD 43000. It

clearly shows the economic growth and buying power of consumers in UAE. UAB

houses one of the most technologically savvy population among the world. UAE. UAE

consumers embrace online businesses, which is evident from the previously mentioned

growth prospects for online businesses. Therefore, Ms. Shima intends to harness the

potential of growth in online businesses through entering into online businesses.

However, Ms. Shima needs to assess the present situation before commencing online

businesses.

3. Critically analyze the UAE as a potential destination for commencing online

businesses through using PESTLE analysis to decide on the appropriate strategy

for commencing online businesses in UAE (5 Marks) (SS: Analytical Skills)