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Paper Example: PEST analysis of the United Arab Emirates

3 pages
571 words
University of Richmond
Type of paper: 
Business plan
This essay has been submitted by a student. This is not an example of the work written by our professional essay writers.

Appendix A: PEST analysis

PEST analysis is an expanded framework for the SWOT analysis to include political issues, economic factors, social norms and attitudes as well as technological developments of the organization. Assessing the effect of the political, economic, socio-cultural, technology and other external factors is a great stage for any organization or individual planning to offer health services. This can be possible through distinctive PEST analysis. This analysis presents a way to diagnose any key issue that the medical industry may be facing. Actually, a comprehensive SWOT and PEST analyses help an organization to achieve its goals with aligning to the mission and vision. The PEST analysis is shown in table 3 below.

PEST analysis


-Tax guidelines.

-Political stability of a state.

-Safety regulations.

-Trade restrictions.

-Employment laws.


-Inflation rate

-Exchange rate

-Credit availability

- The rate of economic growth.

-Business cycle of a country


-Age distribution.

-Population growth.

-Cultural limitations


-Populations education. Technology

-Technological research and development.

-The role of the internet.


The importance of performing a PEST analysis for any organization is undisputable as it gives an in-depth understanding of the business' macro-economic environment (Lynch,2013). The results from both a PEST and SWOT analysis are to be used in decision making, identifying the right target market for the product as well as deciding on the best way to deliver the product in a bid to maximize on the opportunity(Post,2017). For instance, the exchange rate affects decisions about import and exportation of products across countries. In the medical industry, the age distribution is a vital factor to consider when determining what medical devices to introduce into the market ((Maresova, Penhaker, Selamat & Kuca, 2015)). Further, the internet plays a great role, especially in marketing and selling products. In the past decades, more and more people are opting to buy things online due to convenience. It is thus important to perform a regular PEST analysis to determine how best to run a business and what products would sell more within a particular region.

The political situation in the UAE is one of the factors that greatly affect the healthcare industry. The frequent conflicts with neighboring countries over oil reserves have led to political feuds that have affected businesses and pushed investors away (Bush,2016). Furthermore, the seven Emirates have individual government policies making government easier. Over 60% of the population in the UAE is in employment making the unemployment rate very low. The country also boasts a high GDP per capita, making the country's economy robust and creating good global trade relations. UAE has become a mix of cultures, creating a culturally diverse population with different needs. As such, it is paramount to understand the various healthcare needs of the diverse population to provide the best products. The UAE has also established itself as well equipped technologically,keeping its mainly youthful population up to date with new advancements ("Pest Analysis Of The United Arab Emirates Economics Essay", 2015). The government has also invested in technological research enabling the healthcare industry to have the most recent and advanced equipment and research.



Bush, T. (2016). A PESTLE Analysis of The UAE.

Lynch, J. (2013). Understanding Pest Analysis with Definitions and Examples.

Maresova, P., Penhaker, M., Selamat, A., & Kuca, K. (2015). The potential of medical device industry in technological and economical context.

Pest Analysis Of The United Arab Emirates Economics Essay. (2015).

Post, J. (2017). What is a PEST Analysis? Business News Daily.


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