Behavioral Corporate Finance” in UAE or Arab world

Behavioral Corporate Finance” in UAE or Arab world

Research questions

What are various changes that have impacted the Arab financial structure?

Which is the best financial structure that has been inherited with reliance to the corporate finance?

What are the key issues that have a major impact to the corporate finance within the UAE?

What are the economic issues and factors that have an impact to the corporate finance?

Are there expansion improvements for the financial structure in the Arab Emirate region?

Does the price of oil and gas within the export and import market impact the corporate financial structures?

Doe total market values of an economy have an impact to the corporate finance structure within the UAE region.

Literature Review

Changing Financial Structure in the Arab World: Some Implications for Oil and Gas

The article relates to various changes made in Arab financial structure as well as the financing patterns of oil and gas. Until the mid 90’s, the inherited financial structures indicated reliance process on the external official finances. Since mid 90’s, the government, the key borrower, shifted to the domestic and the private sources of finance, a shift that marked two broader changes (Alami, 2010). Firstly, within the global context, bilateral loans were over and private finances were more essential but they were not reliable. In the short and medium terms, capital flow for the developing countries were anticipated to be low as well as volatile, a sign of challenging credit supplies. Secondly, the entire region was experiencing a resize of the Arab states with programs that were enlarging and reforming the financial sectors (Alami, 2010).

It is worth to note that, the Arab oil and gas sectors were as well changing towards similar direction. There were in-house finances as well as export credits that remained crucial for the investment needs. They linked the sector with governmental balances as well as external debts (Alami, 2010). Currently, there has been an improved and expanded financial structure that has facilitated the use of diversified financial strategies. On domestic outlook, the sector has the capacity of now tapping the local level of savings via voluntary debts mechanisms and stock markets. Due to the underpinning condition, there may be stabilizing force where local investors have lesser capacities of reacting towards the rising level of uncertainties (Alami, 2010).

On the other hand, externally, there are implicit guarantee that has been offered by the hydrocarbon receivables, an attribute that is key towards assessment of the foreign finances. This attributes have assisted the sectors to assemble the new instruments (Alami, 2010). As well, the use of private sources on the new finance may re-define the aspect of sensitivity on political and country’s overall risks. This aspect added some weight on the essentiality of regulation and institution’s frameworks.

Arab oil and gas sector has to be more dependent towards the balanced development basically the improvement of all sectors. In case the aspect of financial availability on oil and gas improved responding toward the financial expansion, there are chances of responding positively towards the entire development. However, there is a current upsurge within the oil revenues that has been an ideal opportunity of financing the development with target of upgrading all resources among them human capital (Alami, 2010).

Import Demand Behavior of Arab Countries: Recent Trends and Influence of Geopolitical Events

Recently, there have been higher prices of crude oil as well as natural gas. The increase has caused purchasing power of all oil exporting Arab countries to rise causing competition for industrial countries for the exports of goods and services to be intensified. The industrial countries had to pay more for crude oil and oil products since 2000 (Habibi, 2010). When it comes to industrial countries, they were expected to pay considerable more crude oil than there before. As well, economic boom within the Arab countries such as Jordan, Egypt and Morocco have indirectly benefited through the economic linkages with some of the oil richer neighbors. As well, these countries have been able to enjoy high economic growth rate since 2000 and 2008 hence causing demand increase for the imports (Habibi, 2010).

According to the available import data about the Arab countries, total volume for the imports has increased sharply in the last ten years. As well, the relative market shares for the other trading partners have changed (Habibi, 2010). However, there have been fluctuation in the market shares and some of the countries have been able to gain market share at the expenses of other countries. Arab Middle East countries have been among the fastest growing markets in the recent times. Some of the major exporting countries have an interest towards identification of the core factors that cause an impact to the market shares within the import market (Habibi, 2010).

This article has analyzed the market share for the United States, Western Europe, Japan and China in the importation market of the Arab countries. First, there is tabulation and discussion of each exporter market shares to mark any time trends. As well, there is the use of statistical analysis that identifies the economic and non-economic factors that have significant impact to every exporting country and the regional market shares (Habibi, 2010).

Among the Arab countries, there is focus primarily on six members who are part of Gulf Cooperation Council (GCC). They include Saudi Arabia, Kuwait, Oman, Qatar, and Bahrain. These are among the countries that have fully benefited from the 2002-2008 oil boom as well as the country’s import markets that has experienced a sharp growth among the Arab countries in the recent times. Additionally, investigation about import markets for the individual GCC countries has been analyzed in terms of the market shares especially for the leading exporters within the aggregate imports for the GCC as the main trading bloc following similar analysis of aggregate imports within the Arab countries (Habibi, 2010).

The total value of imports for a given country is impacted by economic factors such as the case of the size of the domestic economy (GDP), import tariffs rates and exchange rate policy. As well, the relative market share for each trading partner within the total import has been impacted by economic and non-economic factors where in some situations, the non-economic will have to play the dominant role. Generally, the non-economic factors are essential mainly for the US trade relations with the Arab countries since it causes complex strategic as well as security relation among the US and the Arab countries (Habibi, 2010).

The United Arab Emirates Consumer: Behavior, Attitudes and Perception toward Food Products

The United Arab Emirate (UAE) is rooted in the Middle Eastern customs and has experienced cosmopolitan, massive infrastructure development, growth in multinational workforce; consumer oriented lifestyle as well as buoyed case by oil revenues. The new culture has been developed by unique export opportunities for most of the Canadian agriculture as well as agri-food industry. Generally, the UAE is a federation of seven states referred to as emirates that border the Arabian Gulf and surrounded by Qatar, Oman and Saudi Arabia. As well, there is Abu Dhabi, Dubai, Umm al-Qaiwain, Fujairah among others. Due to the location of the UAE, it has been a significant distribution hub for the Middle East countries, India, Eastern Africa and some of the European Countries (International Markets Bureau, 2010).

Generally, the region’s financial base has depended on the subsistence agriculture, pearling, fishing and nomadic animal husbandry. After discovery of the oil in 1960, there was dramatic alteration for the future of the area considering that revenue that is required to attract federation economy that is now second largest in the Middle East after the Saudi Arabia.

Empirical Methodology

Data related to Behavioral corporate finance issues may be collected via qualitative and quantitative methods. Data will be collected via the use of open-ended questions. On the other hand, research will be conducted with methods such as focus groups, interviews and group discussions. Methods of collecting data use systematic standardized approach that will employ methods such as surveys. Survey targets using crucial way of gathering large amount of data as well as providing broader perspectives. Survey about the research being undertaken may be administered via electronic gadgets, by mail, by telephone or face to face. Mail and other electronic surveys have a wider reach and tends to be cheap and information is standardized and maintenance of confidentiality level.

Interviews maybe conducted face to face or via telephone. Interview may range from in-depth, semi-structure and unstructured depending on the nature of information. As well, documentation and substantial description may be used to explore the issue further. This process will have to offer description with study participants with context and procedures and purpose of intervention and transferability. Documentation involves consideration of complexities that are experienced that assist in maintenance of data integrity.

Key Findings

There have been recent changes in domestic and external corporate finance within the Arab countries as well as nark of development of oil and gas sectors. According to the study, in the last few decades, Arab countries have marked various transformations within the financial and energy sectors depending on the nature and size of the state. The developments are in line with the global emerging trends that target deregulation and reforming of the financial sectors.

There has been a change on the official corporate finance to private sources of finance as well as from external to domestic funding. This has been caused by the heightened political turmoil that has affected the mix as well as availability of the finances. In addition, the oil and gas sectors have experienced transformations by various reforms as well as restructuring that incorporate corporatization and privatization process. Arab governments have taken part in running the economies especially due to the emergence of energy. Hence, there has been re-organization caused by border transformation process within the Arab states that mark a crucial departure due to state intervention.

Reference List:

Alami, R., (2010). Changing Financial Structure in the Arab World: Some Implication for Oil and Gas. Retrieved on 26th Nov, 2015, from:

Habibi, N., (2010). Import Demand Behavior of Arab Countries: Recent Trends And Influence Of Geopolitical Events. Retrieved on 26th Nov, 2015, from:

International Markets Bureau, (2010). The United Arab Emirate Consumer. Retrieved on 26th Nov, 2015, from:

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