Comprehensive Market Analysis of Non-Alcoholic Wines Industry in UAE

MAXWELL AMSTERDAM
GLOBAL MARKETING IN A DIGITAL ERA (HPMK440-1)
RESEARCH ASSIGNMENT (FA1)
A Comprehensive International Market Analysis of the Non-Alcoholic wines
industry in the UAE.

1.Introduction
The United Arab Emirates is a relatively new country, having been established as a
Federation on December 2, 1971. Prior to the creation of the UAE, the British
governed the seven Emirates that currently make up the Federation, and these
sheikhdoms were known as the Trucial States (DE MAN, 2020). Poverty and
socio-economic underdevelopment were present when the country was founded.
The UAE's subsistence economy, which was defined by agriculture, pearling
extraction, fishing, and trading activities, was still strongly impacted by its
subsistence economy in 1968, with a population of only 180,000 people.
Infrastructure was almost non-existent in the late 1960s, and the Trucial States – the
current United Arab Emirates – depended on foreign monetary help to begin its
illusive socio-economic growth. Despite this, the UAE was able to transform from a
subsistence economy to an innovation-driven economy in just 44 years (Alexandre,
Dias and Delgado, 2016).
Figure 1.1 Geographic Location of UAE (Jill Ann Crystal and Peterson, 2018).

According to official estimates, the UAE's GDP has grown approximately 36 times in
current values since it was founded in 1971 by seven Gulf emirates (gulfnews.com,
n.d.). This growth meant that the UAE is now ranked 18th globally when it comes to
exporting, (www.indexmundi.com, n.d.). The UAE also has an ease of doing
business rating of 16th globally which is the strongest rating in the region, of 80.9 out
of 100 (The National, 2019).
During this analysis, we will be looking at the market of Non Alcoholic beverages in
the UAE. Before even trying to infiltrate the market an important factor to consider is
the currency exchange, which is 4.1 Emirati Dirhams to 1 South African Rand.
2. International trade environment: SLEPTS analysis
SLEPT analysis is a methodology for evaluating the impact of the external
environment on an organization. It takes into account five macro-environmental
factors: social, legal, economic, political, and technological (Zigu, 2018).
● Social Factors: Health consciousness, education level, population growth
rate, gender distribution, socioeconomic classes, and other factors are all
considered (Zigu, 2018).
● Legal Factors: Antitrust laws, discrimination laws, intellectual property laws,
consumer protection laws, employment laws, regulatory mechanisms, and so
on are all included (Zigu, 2018).
● Economic Factors: Growth rates, inflation rates, interest rates, currency
rates, fiscal and monetary policies, credit availability, and so forth are all
included (Zigu, 2018).
● Political Factors: involves government policies and interventions in the
economy, such as the amount of corruption, government stability, trade