Abu Dhabi - CzechTrade

Transcription

Investors Guide to
Abu Dhabi
Ease of Doing Business
www.abudhabichamber.ae
Investors Guide to Abu Dhabi
I.G.T.A.D / 2R
2nd Run
Publisher: Abu Dhabi Chamber of Commerce & Industry (ADCCI)
Copyright © Abu Dhabi Chamber
Abu Dhabi Chamber of Commerce & Industry PO Box: 662, Abu Dhabi U.A.E
: +971 2 621 4000
: +971 2 621 5867
‫ اإلمارات العربية المتحدة‬،‫ أبوظبي‬،662 ‫ب‬.‫غرفة تجارة وصناعة أبوظبي ص‬
: [email protected]
: www.abudhabichamber.ae
Index
1.0 Introduction ................................................... 09
2.0 Why Invest in Abu Dhabi.................................. 12
2.1 Abu Dhabi Economy.......................................14
2.2 Abu Dhabi Economic Vision 2030 .....................16
2.3 Abu Dhabi Major Projects................................18
2.3.1 Infrastructure........................................18
2.3.2 Economic Diversification..........................19
2.3.3 Real Estate & Hospitality..........................21
3.0 UAE Commercial Companies Law...................... 23
3.1 The Federal Companies Law.............................24
3.2 The Commercial Agencies Law.........................26
3.3 The Federal Industry Law.................................26
3.4 The Government Tender Law ...........................27
4.0 Type of Commercial Companies......................... 28
4.1 General Terms & Conditions.............................29
4.2 General Partnership........................................29
4.3 Public Joint Stock Company (PJSC)....................29
4.4 Limited Liability Company (LLC)........................30
4.5 Simple Limited Partnership...............................30
4.6 Joint Partnership (Venture)...............................30
4.7 Private Joint Stock Company............................30
4.8 Partnership Limited with Shares........................30
7.0 Banking and Finance....................................... 37
7.1 Commercial Banks.........................................37
7.2 Restricted License Banks..................................38
7.3 Investment Banks..........................................38
7.4 Finance Companies........................................38
7.5 Financial Investment Companies.......................38
7.6 Banking, Financial, Investment Consultation Activities..39
7.7 Money Exchanges..........................................39
7.8 Financial and Monetary Intermediaries...............39
7.9 Representative Offices of Foreign Financial Institutions..40
7.10 Banks located in Abu Dhabi Emirate.................40
8.0 Foreign Trade Procedures................................. 41
8.1 Imports.......................................................42
8.1.1 Clearance Procedures..............................42
8.1.2 Importers Tariff......................................42
8.2 Temporary Imports.........................................43
8.2.1 Import Required Documents.....................43
8.2.2 Import Procedures..................................43
8.3 Exports........................................................44
8.3.1 Exports Required Documents....................44
8.3.2 Exports Procedures.................................44
8.4 Re-Exporting.................................................45
8.4.1 Re-Export Required Documents.................45
5.0 UAE Labor Law............................................... 31
8.4.2 Re-Export Procedures..............................45
6.0 Company Registration Procedures..................... 31
9.0 ABU DHABI SPECIALIZED FREE ZONES................ 47
6.1 Setting Up An LLC In Abu Dhabi Emirate............32
6.2 Setting Up A Foreign Branch In Abu Dhabi Emirate...... 34
6.3 Activities That Require Prior Approvals................35
10.0 Abu Dhabi Chamber of Commerce & Industry... 48
11.0 Useful Contacts............................................. 52
H.H. Sheikh Khalifa bin Zayed Al Nahyan
President of the United Arab Emirates and Ruler of Abu Dhabi Emirate
H.H. General Sheikh Mohammed bin Zayed Al Nahyan
Crown Prince of Abu Dhabi and Deputy Supreme
Commander of the United Arab Emirates Armed Forces
Introduction
Foreign investment is a major contributor to Abu Dhabi Emirate economic growth and development. This guide
has been especially prepared for investors (companies and individuals) interested in exploring new investing
opportunities in Abu Dhabi Emirate.
This guide will provide investors with information on Abu Dhabi Emirate economy, brief on Abu Dhabi 2030
Economic Vision, UAE commercial law, company registration procedures, Banking and Finance, introduction to
specialized economic free zones, foreign trade procedures, and introduction to Abu Dhabi Chamber of Commerce & Industry (ADCCI) services and the major role it plays in the private and public sector.
Abu Dhabi Chamber welcomes all potential investors and is ready to provide them with guidance, market intelligence, and legal consultation in order assist them recognize the business environment, business opportunities,
and requirement for establishing their businesses.
DISCLAIMER
This guide is prepared by ADCCI, for the purpose of informing investors interested in investing in Abu Dhabi Emirate.
All the information given in this guide is subject to change from time to time, so the reader should double-check the information that is needed
with ADCCI and other Abu Dhabi governments.
It should be noted that ADCCI is always ready to provide further information or assistance to its investors without any obligation at
the following contact address.
Investors Guide to Abu Dhabi Emirate
10
Abu Dhabi Chamber
Abu Dhabi Chamber 11
Western Region
“Al Gharbia”
Abu Dhabi Chamber
2.0
HY INVEST IN
W
ABU DHABI ?
The Abu Dhabi Emirate is the capital city of the seven Emirates that compose the United Arab Emirates
(UAE) federation. The Emirate is made up of three regions, namely, Abu Dhabi, Al Ain, and Al Gharbia
(Western region). The total area of the Emirate is 59,402 square kilometers, which represents approximately
87% of the total area of the UAE.
The Emirate of Abu Dhabi is the wealthiest Emirate as it holds 90% of the UAE’s oil production, 10% of the
world’s oil reserve, and 5% of the global reserves of natural gas.
12
Abu Dhabi is one of fastest developing trade and industry centers in the Arabian Gulf and the Middle East
Region. Over the years, Abu Dhabi has been recognized as a key attraction by foreign investors due to its
stable and wealthy economy, and several reasons which some are summarized as follows:
• More
Morethan
thanUS$136
US$136billion
billionworth
worthofoffuture
futureproject
projectinvestments
investmentsby
byAbu
AbuDhabi
DhabiGovernment
Government
• Political,
Political,Economic,
Economic,and
andSocial
SocialStability
Stability
• Economic
EconomicDiversification
Diversification
• State
Stateof
ofthe
theArt
ArtInfrastructure
Infrastructure
• Multimodal
MultimodalTransportation
TransportationSystem
System
• Specialized
SpecializedEconomic
EconomicZones
Zones
• Free
FreeZones
Zones
• Low
LowLabor
LaborCost
Cost
• Member
MemberofofWTO
WTO&&GCC
GCC
• Zero
ZeroTax
Taxholiday
holidayon
onProfits
Profits
• Financial
FinancialServices
Services
• Gateway
Gatewayfor
forAsia,
Asia,Africa
Africa&&Europe
Europe
• Foreign
ForeignOwnership
Ownership
Abu Dhabi Chamber
2.1
Abu Dhabi Economy
In 2012, The value of GDP in current prices was AED 911.6 billion compared with AED 846.7 billion in 2011,
representing a growth rate of 7.7% over the period. The increase in GDP was driven by a rise in production
by all economic activities, which confirms the strength and resilience of the Emirate’s economy.
Accordingly, the annual GDP per capita amounted to AED 390.5 thousand in 2012, compared with
AED 391.7 thousand in 2011; causing a short decline in growth by 0.3%. The total fixed capital formation was AED 172.7 billion in 2012, while compensation of employees amounted to AED 164.1
billion in the same year.
GDP in constant prices shows how much goods and services were produced in volume terms and is measured by holding prices constant. GDP in constant prices increased by 5.6% in 2012 following an increase of
9.3% in 2011. The main activities contributing to economic growth in 2012 were “Mining and quarrying”
(including crude oil and natural gas), “Manufacturing “ and “Real estate” with increases of 3.8%, 9.7% and
16.7% respectively.
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Abu Dhabi Economic Variables (2010-2012)
Economic Activity
2010
2011
2012*
GDP at Current Prices (Million AED)
639,952
846,684
911,591
GDP at 2007 Constant Prices (Million AED)
587,107
641,831
678,049
GDP at Current Prices Growth Rate (%)
19.5
32.3%
7.7%
GDP at 2007 Constant Prices Growth Rate (%)
6.5%
9.3%
5.6%
Oil Share in GDP at Current Prices (%)
49.6%
57.3%
56.5%
GDP Per Capita at Current Prices (000 AED)
325.5
391.7
390.5
GDP Per Capita at 2007 Constant Prices (000 AED)
298.4
296.9
290.4
Gross Fixed Capital Formation (Million AED)
142,852
164,033
172,707
Oil, Gas and Oil Products Exports of the Emirate of Abu Dhabi (Million AED)
202,437
393,439
451,455
Non-oil Exports of the Emirate of Abu Dhabi (Million AED)
11,611
11,478
15,412
Re-exports through the Ports of the Emirate of Abu Dhabi (Million AED)
10,992
11,567
14,745
Imports of the Emirate of Abu Dhabi (Million AED)
86,574
116,379
118,972
3.1%
1.9%
1.1%
Inflation Rate (%)
Source: Statistics Centre – Abu Dhabi (SCAD)
*Preliminary estimates
Abu Dhabi Emirate economy is based primarily around its Oil & Gas production. While petrochemical sector has dominated economic development, a growing diversification in the Emirates’ economy has been evident in recent years as the
Emirate drives for a more sustainable and diversified economy as illustrated in its “ Abu Dhabi Economic Vision 2030” to
reduce the relatively high reliance on Oil & Gas production.
Abu Dhabi Chamber
2.2
Abu Dhabi
Economic Vision 2030
Abu Dhabi Economic Vision 2030, has been developed by Abu Dhabi Government in order to deliver upon the vision of His Highness Sheikh Khalifa bin
Zayed Al Nahyan, President of the UAE, Ruler of Abu Dhabi Emirate, for the
ongoing economic success of the Emirate.
The expectation is the creation of a long-term roadmap for economic progress for the Emirate through the establishment of a common framework
aligning all policies and plans and fully engaging the private sector in their
implementation.
The initiative builds upon the foundations set by the Abu Dhabi Policy
Agenda 2007/2008 and produced by a taskforce joining stakeholders from
the public and private sectors.
This will be achieved by broadening the sectors of economic activity, expanding the enterprise base, and growing external markets.
Furthermore, Abu Dhabi will also continuously enhance competitiveness and improve productivity. Delivering on such commitments will be translated, according to base case growth scenarios, into entrenched
sustainable development and significant levels of economic diversification by 2030.
Moreover, Abu Dhabi Government has committed itself to direct public policy, by focusing on four key priorities:
Key Priorities
Economic development through
Social and human resources development,
encouraging investment and entrepreneurial
ensuring high quality education
activity and legislative reform
and health services
Infrastructure development and
environmental sustainability ensuring
a professionally designed and will-managed
urban environment in towns and cities
Optimization of government operations
by improving the efficiency and accountability
of government departments
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Abu Dhabi Economic Vision 2030 aims to achieve effective economic transformation of the Emirate’s economic base and bring about global integration and enduring benefits to all. Abu Dhabi Emirate has a core
commitment to build a sustainable and diversified, high value-added economy by 2030.
From Abu Dhabi Policy and Economic Vision, the below sectors are expected to form the Emirate’s engines
of economic growth and diversification:
Financial Services and Insurance (Capital Markets Focus)
27%
Basic Industries & Mnufacturing
20%
Transportation & Logistics
18%
Petrochemicals & Plastic Products
8%
Tourism & Events
8%
Media
5%
ICT
5%
Oil & Gas Services
4%
Renewable Energy
5%
Civil Aerospace
2%
The complete Abu Dhabi Economic Vision 2030 and Abu Dhabi Policy Agenda, as well as Al Ain Plan, and Al Gharbia Plan can be
downloaded from www.abudhabi.ae
Abu Dhabi Chamber
2.3
Abu Dhabi Major Projects
With the involvement of the private sector, Abu Dhabi government has recently completed several major projects,
while other key projects are in the pipeline, covering different economic sectors. Abu Dhabi Economic Vision aims
to achieve economic transformation to Abu Dhabi Emirate’s economic base and bring about global integration
and enduring benefits to all. It draws up the framework and contents for the process of the development envisaged for the next two decades, and thus represents a roadmap for economic development of the emirate. Yet the
ambitions of Abu Dhabi go far beyond its size and traditional business role as it is venturing into the industrial,
tourism, and information technology fields.
2.3.1 Infrastructure
Khalifa Port
Relocation and redevelopment of the port facilities to Al
Taweelah and reclaimed offshore island located 4.6km from
shore with five development phases up to 2030. The initial
phase consists of 3.2km berth length with a 16 m draft and a
handling capacity of 2 million TEU’s (Twenty foot Equivalent
Unit containers) and 8 million tons of general cargo. There
will also be a dedicated bulk terminal for EMAL (Emirates
Aluminum). The final phase in 2030 will feature a 15 square
km port island with a capacity of 15 million TEU’s and 35 million tons of general cargo with a 26 km berth length.
More information can be found at: www.adpc.ae
Khalifa Port Industrial Zone (KIZAD)
The port is backed by one of the largest integrated industrial zones in the world with some 400 square km of
land allocated for development long term basic, midstream and downstream manufactures in industry clusters such as aluminum, petrochemicals, glass, and paper
will be among its features. The industrial zone will start
to be operational from 2013 and is milestone of the Abu
Dhabi Economic Vision 2030, playing a major role in the
emirates industrial and economic diversification.
More information can be found at: http://kizad.com
Abu Dhabi Airport Expansion Plan
The new expansion of Abu Dhabi Airport Company (ADAC)
will consist of a new 4,100 meter runway and control tower, over 50 gates and 121 check-in desks and self check-in
facilities. It includes a 630,000 sqm development, central
space size of three football pitches and 25,000 sqm of retail and F&B offerings. Opening capacity of 20m p.p.a will
be expanding to 40m p.p.a.
More information can be found at www.adac.ae
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2.3.2 Economic
Diversification
Masdar City
Masdar City is an emerging global clean-technology cluster located in what aims to be one of the world’s most
sustainable urban development’s powered by renewable
energy. This multibillion dollar free zone project is located about 17km from downtown Abu Dhabi will eventually be home to companies, researchers, and academics
from across the globe, creating an international hub for
companies and organizations focused on renewable energy and clean technologies.
More information can be found at www.masdar.ae
Advanced Technology Investment Company (ATIC)
ATIC is building a multibillion-dollar semiconductor fabrication plant and advanced technology ecosystem in
Abu Dhabi as part of the Emirate’s economic diversification and to tap the rising global demand for semiconductors. ATIC is building a skilled talent base in a capital
and knowledge-intensive industry, in alignment with
Abu Dhabi Economic Vision 2030.
More information can be found at www.atic.ae
Aerospace Cluster
Mubadala Development Company (MUBADALA) is creating an integrated, knowledge-driven aerospace industry
in Abu Dhabi that will establish the Emirate as a global
aerospace hub in the very near future, a sector that
promises to deliver unprecedented levels of growth over
the next two decades. This industry is being driven by
Mubadala Aerospace’s plans to become a full-scale global “Maintenance, Repair and Overhaul” (MRO) service
provider to the airline industry, a primary risk-sharing
partner to Original equipment manufacturer’s (OEM’s),
a high tech end-to-end manufacturing base, and develop an integrated pilot training academy that will sustain
the growing demand for pilots worldwide.
More information can be found at www.mubadala.ae
Abu Dhabi Chamber
Emirates Aluminium (EMAL)
A 50/50 joint venture between MUBADALA and Dubai
Aluminum Company (DUBAL). EMAL will be built in two
phases, on a 6sq km site in Khalifa Port Industrial Zone
in Al Taweelah, located between Abu Dhabi and Dubai.
Phase 1 of the project commenced production in 2009,
with production capacity of 750,000 tons per annum.
Upon completion of phase 2 in 2014, EMAL’s production
capacity will double to 1.5 million tons of aluminum per
annum, making it one of the largest, most productive and
most efficient aluminum smelters in the world.
More information can be found at www.emal.ae
Abu Dhabi Polymers Park
The First industry-specific cluster in Abu Dhabi. A 4.2km²
development located in the Industrial City of Abu Dhabi
phase II (ICAD II). The project will host more than 50 factories as well as relevant industry services with multibilliondollar investment. Products will serve the local and regional demand for construction goods as well as industrial and
consumer good packaging.
More information can be found at www.polymerspark.com
ADBIC Petrochemicals project
Abu Dhabi Basic Industries Company (ADBIC) petrochemicals plans to reinforce the existing petrochemicals industry in the UAE by identifying and investing in grassroots
projects that complement those of existing Abu Dhabi
petrochemical entities, including Borouge and Abu Dhabi
National Chemicals Company co.(ChemaWEyaat). ADBIC
approach is that a joint venture technology partnering in
specific petrochemical products. Using leading technologies, in cooperation with industry leaders, ensures Abu
Dhabi’s access to leading capital cost and operating cost
structures. Combining this with the Emirate’s strategic location and feedstock advantages.
More information can be found at: www.adbic.ae
Al Gharbia Tourism
Apart from Liwa and Sir Bani Yas, there are many other natural scenic spots and islands found in the naturally beautiful Al Gharbia (the Western Region of Abu Dhabi Emirate)
that are growing in popularity as part of eco-tourism. The
Western Region Development Council (WRDC) has been
promoting Al Gharbia since 2008. Al Gharbia is one of
the largest deserts in the world, a wild, natural landscape
ready and waiting to be discovered.
More information can be found at www.wrdc.ae
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2.3.3 Real
Estate & Hospitality
Capital District
The biggest single development project is the new Capital District. It is the symbol of an inspired vision for governance and community development. At its heart will be
a federal precinct, which will serve as the national seat of
government for the United Arab Emirates and will host
embassies as well as residential neighborhoods designed
to accommodate the various needs and desires of Abu
Dhabi diverse population. On 4,900 hectares, the plan
proposes a high degree of land use mix and diversity to
accommodate up to 370,000 residents connected with
three level of transit services.
More information can be found at www.upc.ae
Al Maryah Island
Is the heart of Abu Dhabi’s new Central Business District
(CBD) in plan Abu Dhabi 2030. Also classified as an investment zone, the 105-hectare island will have a diverse
mix attributes vital in the world’s leading CBD’s including
world-class feature such as:
Premium grade commercial real estate – Five star hotels
– unique residential neighborhoods and a variety of retail- community facilities – public amenities – pedestrianfriendly public realm – parks & open spaces – extensive
transport network including 13 new bridges and intergraded public transit system with both light rail and metro connecting to surrounding areas of Abu Dhabi.
More information can be found at www.almaryahisland.ae
Abu Dhabi Chamber
Saadiyat Island
A flagship project developed by Tourism Development &
Investment Company (TDIC) into a world-class leisure, residential, business, culture and tourism hub. Saadiyat Island will include seven unique districts offering a distinctive experience to visitors and residents. Iconic museums,
including Louvre Abu Dhabi, Guggenheim Abu Dhabi
and Zayed National Museum, will be the main highlights
built on the island’s Cultural District; while the Marina
District will be a major international business hub. Saadiyat Island will also include a number of hotels, and resorts, two marinas, a strong residential components of
villas and apartments and two golf courses. Saadiyat will
be home to 160,00 residents.
More information can be found at: www.saadiyat.ae
Yas Island
Home of Ferrari World and Formula One race track. Yas
Island is a major development by Aldar Properties, occupying a total land area of 2,500 hectares, of which 1,700
hectares will be claimed for development. Major Attractions on the island will include: world-class motor sports
racetrack – signature hotels Ferrari World Abu Dhabi
theme park – water park – Abu Dhabi destination retail
development of 300,000 sqm retail area – Links – Parkland golf courses - Lagoon hotels – Marinas, apartments,
villas and numerous food & beverage outlets that will create a unique international tourist destination.
More info can be found at: www.aldar.ae or www.yasisland.ae
Al Reem island
The development sits on a natural island just 600 meters
of the cost of Abu Dhabi main island. Spread across 6.5
million square meters the island is being built by three
major developers; Sorouh, Reem Investments, and Tamouh. This ‘mega development’ is one of the largest under construction in Abu Dhabi and will include a business
district, a commercial district and a residential district,
transforming the island into a ‘city within a city’. With
its incomparable facilities and features, it’s not surprising that some of the world’s biggest names have chosen
Reem Island as their home. The Paris-Sorbonne University
and The Four Seasons have already begun construction of
their premises. The island is expected to have a population of 200,000.
More info can be found at: www.sorouh.com
www.tamoouh.com - www.reeminvestments.com
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3.0
AE Commercial
U
Companies Law
Investors interested in practicing any business activity in Abu Dhabi Emirate and the UAE in general, must
be aware of the regulation on the establishment of business in the UAE which is shared at the federal
and emirate levels.
The four major laws affecting foreign investment in the UAE:
• The Federal Companies Law
• The Commercial Agencies Law
• The Federal Industry Law
• The Government Tenders Law
These laws, especially the Federal Companies Law, are being revised to attract businesses and FDI
to the country.
Abu Dhabi Chamber
3.1
The Federal Companies Law
The UAE Federal Law No. (8) of 1984 Concerning Commercial Companies (CCL) is a federal statue applicable to all seven emirates that constitute the UAE.
Federal Law No. (8) of 1984 or the CCL in the UAE, was issued by Late Sheikh Zayed bin Sultan Al Nahyan
and published in the Official Gazette No 137 of April 1984. The major amendments to this CCL include
Federal Law No (1) of 1984, Federal Law No (13) of 1988, Federal Law No (15) of 1998 and Federal Law
No (4) of 2000.
One of the latest and important amendments to this law was issued on August 10, 2009 by HH Sheikh
Khalifa bin Zayed Al Nahyan, UAE President abolishing the minimum capital requirement of AED 150,000
for setting up a limited liability company (LLC) in the UAE, which was widely seen as a significant step for
the small and medium enterprise sector.
The provisions of this law apply to commercial establishments that are either incorporated in the UAE or
have their activities based in the country. The law stipulates that the nationality of every company established in the country must be the UAE. Companies established in the free zones which are governed by
special rules and regulations related to special economic zones are exempt from the provisions of this law.
With the exception of acquiring the nationality of the country, the law does not apply to companies that
operate in drilling, excavation, marketing and transport of oil and companies that produce, transport
and market electricity, gas and desalinated water, as well as the companies which are excluded by the a
resolution.
The law defines a company as a contract under which two or more individuals commit themselves to contributing to a business venture aimed at making profits by providing their share of money or efforts or
run under a profit / loss sharing basis.
24
Articles of the Law
Some of the main articles of the Commercial Companies Law are detailed below.
Article (4)
A business venture, as per the Article (4) of this law, includes every commercial, financial, industrial, agricultural, real estate or other types of economic activities.
Article (5)
The company established in the country should take one of the following forms: General Partnership
Company, Simple Limited Partnership Company, Partnership Limited with Shares Company, Joint Participation Company, Private Joint Stock Company, Limited Liability Company and Public Joint Stock Company.
Article (8)
With the exception of Partnership Limited with Shares, the company incorporation agreement or any of
its amendment should be written in Arabic and authenticated by a public notary, otherwise the contract
or amendment will be null and void.
Article (14)
The partner’s share can be a certain amount of money (cash share) or a property (corporeal share). Except
for cases derived from the provisions of this law, the partner’s share can be his work and efforts, but
should not be in any case the reputation or authority he holds.
Article (17)
If it is agreed in the Memorandum of Association to exclude a partner from profits or losses, the memorandum will be null and void. However, the partner who contributes only with his efforts can be relieved
from the losses.
Article (19)
If the Memorandum of Association does not specify a certain percentage of profit or lose for a partner, his
share thereof will be proportional to his share of capital. If the Memorandum only specifies the share of
profit for a partner, his share in losses will be equivalent to his share in profits, and vice versa.
Other Provisions
The law also explains the definitions of various forms of companies and issues relating to their ownership,
capital requirements, management of company assets, distribution of profits and losses, responsibilities
and obligations of company manager, holding ordinary or extraordinary general meetings, role and responsibilities of auditors and supervisory board and arbitration, among others.
Opening a foreign company branch in the country, company re-organization and merger and company
termination and dissolution are other issues covered by the UAE commercial companies law.
Articles 322, 323 and 324 deal with inspection of companies and penalties for violating the law.
Abu Dhabi Chamber
3.2
The Commercial Agencies Law
The Commercial Agencies Law requires that foreign principals distribute their products in the UAE only
through exclusive commercial agents that are either UAE nationals or companies Wholly owned by UAE
nationals. (Now, this has also been revised). The foreign principal can appoint one agent for the entire
UAE or for a particular emirate or group of emirates. The law provides that an agent may be terminated
only by mutual agreement of the foreign principal can appoint one agent for the entire UAE or for a particular emirate or group of emirates. The law provides that an agent may be terminated only by mutual
agreement of the foreign principal and the local agent, notwithstanding the expiration of the term the
agency agreement.
3.3
The Federal Industry Law
The Federal Industry Law stipulates that industrial project must have 51 percent UAE national ownership.
The law also requires that projects either be managed by a UAE national or have a board of directors with
a majority of UAE nationals.
Exemptions from the law are provided for projects related to extraction and refining of oil, natural gas,
and other raw materials. Additionally, project with a small capital investment or special projects government by special laws or agreements are exempt from the industry Law.
26
3.4
The Government Tender Law
The Government Tender Law stipulates that a supplier or contractor, with respect to federal projects,
must either be a UAE national or a company in which UAE nationals own at least 51 percent of the
share capital or foreign entities represented by a UAE distributor or agent. Foreign companies wishing
to bid for a Federal project must, therefore, enter into a joint venture or agency arrangement with
a UAE national or company. Federal tenders must be accompanied by a bid bond in the form of an
unconditional bank bond guarantee for five percent of the value of the bid. UAE Federal government
entities often tender internationally.
A complete copy of the above UAE Commercial Laws can be found at:
Abu Dhabi Chamber
Department of Economic Development
www.adeconomy.ae
Ministry of Economy
www.economy.ae
Abu Dhabi Chamber
28
4.0
T ype of Commercial
Companies
Potential investors interested in commencing a professional/commercial business or industrial activity in Abu
Dhabi Emirate may do so through establishing a local or foreign Proprietorship, or may join other natural
individuals or legal entities willing to combine efforts, expertise and finance so as to initiate a joint company.
In this case, a type of companies from the Federal Law No. (8) of 1984 should be chosen that suits
their business. Article (5) of the said law provided for seven different types of companies in the
following section:-
4.1 General
Terms & Conditions
1) Any company incorporated in the Emirate of Abu Dhabi should hold the UAE nationality and have its
domicile in it. Of course, this should not necessarily entail enjoying the same rights and privileges entitled to nationals or confined to them.
2) Any company incorporated in the Emirate of Abu Dhabi should have one or more national partner
having a share or shares of not less than 51%. This is, of course not applicable in case of a General
Partnership which should have its capital purely and entirely national.
3) All partners in any company incorporated in the Emirate of Abu Dhabi should sign a pertinent memorandum written in Arabic language and duly authenticated by the Notary Public at the Court of Law.
However, testimony to prove a matter in variance or in excess of the stipulations in the company
memorandum should not be acceptable in case of any dispute arising between the partners.
4) Any company incorporated in the Emirate of Abu Dhabi should have its memorandum and any amendment thereto duly registered in the Commercial Register and the Companies Section at the Ministry
of Economy. Except for Joint Participation, companies should also obtain the Abu Dhabi Chamber of
Commerce & Industry Membership Certificate and the Department of Economic Development License.
5) Partners may not agree in the company memorandum on depriving any of them from receiving profit
nor on exempting any from suffering loss, otherwise the memorandum is to be considered null and
void by the force of law.
6) Any company incorporated in the Emirate of Abu Dhabi should be duly licensed by Department of
Economic Development. The license should be annually renewed.
7) The memorandum of any company incorporated in the Emirate of Abu Dhabi should contain the following particulars.
Each partner’s name; surname; title; nationality- date of birth and domicile. The company’s name; purpose; head office; capital; the share of each partner; lifetime; the commencement and end of fiscal year; the terms of profit / loss
distribution; dispute-solving party; terms of notification; terms of share assignment and value estimation; terms of
joining or leaving by a partner(s); terms of liquidation; partners liabilities and any other information or stipulations
agreed among partners who show willingness to include them in the memorandum, providing that such stipulations
should be in conformity with the established laws.
4.2 General
Partnership
Article (23) of Federal Law No (8) of 1984 concerning commercial companies defined the General
Partnership as being a company formed by two or more partners who are jointly liable, to the extent of all their assets, for the company liabilities.
4.3 Public
Joint Stock Company (PJSC)
Article (64) of Federal law No. (8) of 1984 concerning commercial companies defined a public joint
stock company as that whose capital is divided into equal value negotiable shares and in which a
partner is only liable up to the extent of his share in the capital.
Abu Dhabi Chamber
4.4 Limited
Liability Company (LLC)
Article (218) of Federal law No. (8) concerning commercial companies has defined the limited liability company as that in which the number of partners may not exceed fifty and should not be less
than two. Each partner should, only be liable up to the extent of his share in the capital, and partner’s participation should not be represented by negotiable deeds. In case the number of partners
is more than seven, a supervisory board should be formed of three partners at least to supervise the
company operation and manager.
4.5 Simple
Limited Partnership
Article (47) of Federal Law No (8) of 1984 defined a simple limited partnership as being a company
formed by one or more general partners liable for the company liabilities up to the extent of all
their assets, and one or more limited partners liable for the company liabilities up to the extent
of their respective shares in the capital only. All general partners in a simple limited partnership
should be holders of the UAE nationality.
4.6 Joint
Partnership (Venture)
Article (56) of Federal Law No. (8) of 1984 concerning commercial companies defined a joint participation as being a company concluded between two partners or more on sharing the profits or
losses incurred by a single or multiple business operations performed by one of the partners in his
or her personal name.
The law also provided that such a company should be confined to the relationship between partners
and may not be effective vis-à-vis any third party. However, the company existence may be proved
by all familiar means of evidence, whereas its pertinent contract should regulate the rights and obligations of each partner; the terms of profit / loss distribution and the capital amount. It is worth
mentioning here that the contract of a joint participation is neither subject to registration in the commercial register nor to the necessity of being publicized. Yet no municipality license may be issued for
such participation whose contract may, otherwise be authenticated before the Notary Public.
4.7 Private
Joint Stock Company
Article (215) of Federal Law No. (8) of 1984 concerning commercial companies defined a private joint
stock company as being that in which a number of not less than (3) three founding members may in
company among themselves a private joint stock company whose shares may not be floated to public
subscription, but they must fully subscribe to the total capital which may not be less than (Dhs. 2 millions).
4.8 Partnership
Limited with Shares
Article (256) of Federal Law No. (B) of 1984 defined a partnership limited with shares as being the company formed of general partners who are jointly liable, to the extent of all their assets, for the company
liabilities, and participating partners who are only liable to the extent of their shares in the capital,
whereas all general partners should be holders of the UAE nationality.
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5.0
UAE Labor Law
The UAE Labor Law is governed under the Federal Law No.(8) of 1980. The Labour law applies to protect both
interests of employers, and employees whether UAE nationals or expatriates and requires employment contracts to be locally compliant. The labor law covers issues such as visas, health insurance, termination gratuities
and repatriation upon termination of employment.
Work permits are required were expatriates must be sponsored by a UAE national or a company duly established in the UAE. A work permit is typically granted, in conjunction with a residency visa, by the employer
acting as sponsor and is valid for a term of period. The visa is renewable. A medical test (including a blood test)
must be passed before a residency visa can be issued.
For more information on the UAE Labor Law please visit the Ministry of Labor website at www.mol.gov.ae
6.0
ompany Registration
C
Procedures
As mentioned earlier in section three, investors interested in practicing any business activity, whether commercial/professional or industrial, should be done through establishing a legal entity, which requires choosing
one of the legal forms of a commercial company, which shall practice such activity. Once the legal form of a
company is identified; the following applications and documents should be gathered and completed in order
to complete the registration process at the Department of Economic Development (DED), The Center of Waste
Management–Abu Dhabi (CWM), the Abu Dhabi Chamber of Commerce & Industry (ADCCI), and the Ministry
of Economy (ME).
Many economic activities will require prior approvals from other government authorities to complete the
registration process with DED, CWM, ADCCI, and ME.
Abu Dhabi Chamber
6.1 Setting
Up An LLC In Abu Dhabi Emirate
Simple Four Steps:
Step 1: DED Trade Name Reservation
Requirements: Filling the “Trade Name Application” form in order to reserve a new company name and main business activity (company name should be related to main business activity) and submit it to DED membership department for approval.
The Trade Name application should include the following information and documents:
a) Suggested name(s) of new company, main trade activity (company name should be related to main business activity),
legal form, and license type.
b) Full name of the UAE partner, (min. 51% ownership) if a natural person. If the 51% ownership is a company (National
Company, 100% UAE Company); application should include company name, its nationality (UAE), and sharing type.
c) Full name of the foreign partner (max. 49% ownership) if a natural person. If the 49% ownership is a foreign Company; (with minimum two years proof of existence in foreign country) application should include foreign company
name, its nationality, and sharing type.
Required Documents for Trade Name Reservation:
1. Passport copies of all UAE and foreign owners and partner’s.
2. If a UAE national company: A signed and stamped letter of interest in setting up a new LLC from company’s board
of directors, copy of commercial license showing all company owners are 100% UAE nationals.
3. If a Non-UAE company: A signed and stamped letter of interest in setting up a new LLC from foreign company’s
board of directors. Letter to be stamped from public notary office, and the UAE Embassy. Copy of valid foreign company registration with minimum two years of existence proof, and commercial license that contains owners names
and business activities.
4. All Documents are to be available on a CD as soft copy.
Note: Investors can assign a power of attorney to represent them or their firm to complete the new company
registration process.
A copy of the power of attorney letter is to be attached with a passport copy of representative. All documents and
power of attorney letters must be translated into Arabic and stamped by a legal translation firm, and notarized.
Assigned power of attorney from a foreign company abroad, must sign and stamp the power of attorney by UAE
embassy and have it notarized by Ministry of Foreign Affairs of mother company’s country and translate it into
Arabic by a legal translation firm.
Step 2: DED Initial Approval
Once trade name reservation and main business activity of new company is obtained:
Requirements to obtain the DED Initial Approval:
- Company partnership agreement to be duly authenticated by the Notary Public. (UAE National(s) share should not
be less than 51%) and without prejudice to other provisions and requirements provided in the Commercial Company
32
Law in respect of the company type.
- A new corporate bank account must be opened at a national or international bank that have an existence in Abu
Dhabi Emirate, and minimum deposit of AED150,000 have to be deposited for initial approval and immigration purpose later on. Once bank account is set, a bank certificate of deposited amount is to be produced of the cash shares
listed in company’s articles of association.
- Foreign investors should submit approved trade name reservation form, bank certificate stating that initial company
capital is AED150,000 or higher, and notarized company article of association and MOU with passports to Immigration
& Naturalization Department’s for approval for an investor’s visa.
Note: If investor holds a valid UAE visa, a letter of no objection from sponsor is requested for submission as well.
Step 3: DED Commercial License
Requirements to Obtain DED Commercial License:
Once DED initial approval is obtained; an office lease contract involving the headquarters through which the activity
is intended to be practiced (minimum office area of 16m2), plus a signboard of company information placed outside
office, and no objection letter from The Center of Waste Management–Abu Dhabi (CWM) is required for commercial
license completion.
Various business activities will require other competent authorities’ approvals which are mentioned in section 6.3.
Once DED initial approval, company office lease contract, and letter of approvals from all competent authorities are issued
and submitted to DED membership department. A site visit will be made by DED officers to verify address and existence of
office location and upon completion of site visit, a new commercial license will be issued (To be renewed annually).
Step 4: ADCCI Membership
Requirements to Obtain ADCCI Membership:
Once the DED Commercial license has be obtained, a new ADCCI registration form must be filled with a copy of:
• Valid Passport of (owners/partners/authorized signatory)
• Valid Commercial Trade License from DED
• A lease contract (enclosing therewith an investment contract and powers of attorney related to the landlord/building’s owners)
• Specimen issued by the licensing authority
• Article of Association, commercial registration, resolution of Board Directors & Power of Attorney of the Partner of
a firm instead of an individual.
Must be submitted to ADCCI membership department in order to complete the company registration process and obtain the ADCCI membership which entitle the company to commence business
(To be renewed annually).
Step 5: Ministry of Economy
Requirements: Registration of partnership agreement duly authenticated by the Notary Public. Submission of a copy
from company Commercial Licenses from DED, Membership of ADCCI, and original copy of MOU.
Abu Dhabi Chamber
6.2 Setting
Up A Foreign Company Branch In Abu Dhabi Emirate
The Commercial Companies Law covers the formation and regulation of branches and representative offices of foreign company in the UAE and stipulates that they may be 100% foreign owned, provided a
local service agent is appointed.
A branch office, legally regarded as part of its parent company, is a fully fledged business, permitted to
perform contracts or conduct other activities as specified in its license. A branch office may only be engaged in activities similar to those of its parent company.
Only UAE nationals or national entities 100% owned by UAE nationals maybe appointed as local service
agent to companies with a foreign branch. Local Service agents – also sometimes referred to as sponsors
– are not involved in the operations of the company, but to assist only in obtaining visas, labor cards, and
administrative work and are paid lump sum fee per annum.
Companies which have a trading nature should have manufacturing units at their country of origin.
Simple steps to set up a foreign branch:
1. Submission of license application to Ministry of Economy
2. Name reservation at the DED
3. DED Initial Approval
4. DED Commercial License
5. ADCCI Membership
6. Submission of a copy from Commercial Licenses from DED, Membership of ADCCI, and original
copy of MOU to Ministry of Economy
Please refer to section 6.1 for more details on the requirements and documents requested to set up a branch office in
Abu Dhabi.
34
6.3
Activities That Require Prior Approvals
To engage in activities which requires obtaining approval of competent authorities mentioned herein below shall be a prerequisite for practicing the activities subsumed under each and every respective authority:
EXECUTIVE COUNCIL
Travel & Tourism - General Services - Charter Trading - Ship & Maritime Agencies - Car Clubs -Charter Air Transport - Foreign Company Branches.
MINISTRY OF INTERIOR
General Transport - Driving Schools - Stamp Making Key Cutting & Stamp Making - Fire Equipment, Alarm
& Safety Systems - Used Car Dealers - Used Auto parts - Car Painting & Denting – Rent–A–Car – Organizing
- Festivals and Festivities.
MINISTRY OF JUSTICE
Law Firms - Legal Translation - Legal Consulting.
MINISTRY OF LABOUR
Manpower Recruitment – Societies – Nurseries.
MINISTRY OF COMMUNICATION
Land Transport – Telecommunication Equipment and Maintenance (To be annually renewed).
MINISTRY OF ECONOMY
Insurance, Insurance Consultancy, Brokers, Inspection Experts, Damage / Loss Assessors.
MINISTRY OF CULTURE
Video & Cassette Library Shops - Software Import, Export, Distribution and Sales – Bookshops (Newspapers, Books, Magazines) - Cinema Houses & Theaters – Radio / TV / Drama / Movie Production &
Artistic Studios - Exhibition Organization, Management and Marketing - Printing Presses - Press Service Offices - Publicity & Advertising - Offices Sponsoring Art & Drama Troupes to Present Their Shows
Inside the UAE – Issuing Publications & Periodicals - Music, Lute and Ballet Teaching & Tuition - Printing Works - Visit & Greeting Cards – Logo & Gift Items-Advertising Printing - Printing Service Offices
(To be annually renewed).
Abu Dhabi Chamber
SUPREME PETROLEUM COUNCIL
Onshore-Offshore Gas & Oil-field Services - Onshore-Offshore Oil Drilling Operations.
GENERAL AUTHORITY FOR HEALTHCARE
Medicines - Medicinal Stores - Pharmacies - Private Medical Clinics - Scientific Offices & Medical Laboratories – Hospitals - Veterinarians’ Clinics - Veterinary Medicines - Requisites of Agricultural, Livestock &
Fisheries Production (To be annually renewed).
DEPARTMENT OF TRANSPORT
Shipping - Maritime Services & Transport - Shipbuilding, Maintenance and Inspection - Forwarding &
Clearing - Air Freight & Transportation.
ABU DHABI MUNICIPALITY
Metropolitan / City Landscaping Dept., Places for Contract Leases.
DED & TOWN PLANNING DEPT.
Civil Engineering & Architectural Consultancy (To be annually renewed).
HIGHER CORPORATION FOR SPECILIZED ECONOMIC ZONES
Establishment of Industrial Plants (To be annually renewed).
UAE CENTRAL BANK
Banks, Stocks & Bonds, Financial Investments - Financial Consultancy - Money Exchange - Banking Representation Offices (To be annually renewed).
GENERAL POSTAL AUTHORITY
Courier Services (To be annually renewed).
ABU DHABI TOURISM AUTHORITY
Travel, Tourism and Furnished Flats.
DEPARTMENT OF ECONOMIC DEVELOPMENT
General Trading – Representation of Companies- Trade Names – Public Joint-Stock Companies’ Licensing.
36
7.0
Banking and Finance
The UAE Central Bank was established in 1980 to direct monetary, credit, and banking policy. It maintains the
UAE government’s reserves of gold and foreign currencies, acts as the bank for banks operating in the UAE,
and serves as the state’s financial agent at international financial institutions.
The Central Bank is authorized to issue licenses and regulations for banks and other financial institutions
which are distinctly categorized into:
• Commercial Banks
• Restricted License Banks
• Investment Banks
• Finance Companies
• Financial Investment Companies
• Banking, Financial, Investment Consultation Activities
• Monetary Intermediaries
• Financial Intermediaries
• Representative Offices of Foreign Financial Institutions
Banks in the UAE are divided into two major categories: locally incorporated banks which are public shareholding companies licensed in accordance with provisions of Union Law No. (10) of
1980, and branches of foreign banks which have obtained Central Bank’s license to operate in the country as
per provisions of the said Law.
Banks in the UAE and Abu Dhabi Emirate are divided into two major categories; local banks and foreign
branch banks. The local banks are incorporated banks which are public shareholding companies licensed in
accordance with provisions of Union Law No. (10) of 1980; whereas the foreign branch banks have obtained
the UAE Central Bank’s license to operate in the UAE as per the provision of the said law.
7.1
Commercial Banks [locally incorporated and branch of foreign banks]
Banks in the UAE are divided into two major categories: locally incorporated banks which are public shareholding companies licensed in accordance with provisions of Union Law No. (10) of 1980, and branches of
foreign banks which have obtained Central Bank’s license to operate in the country as per provisions of the
said Law. Historically, national banks (with majority national shareholding) and foreign banks existed prior
to the establishment of the former Currency Board and, hence, before the Central Bank was created and
commenced its operations. Within such historical circumstances the number of banks and their branches
in the country and abroad increased very rapidly on obvious disproportion with the capacity of the local
market, hence, provoking the monetary authority at that time to withhold issuance of licenses to any new
bank and set about reducing the number of branches of a foreign bank to a maximum of eight branches.
Abu Dhabi Chamber
7.2
Restricted License Banks
A Restricted License Bank is a commercial bank, which is not authorized to accept deposits from residents
in local currency, but may receive deposits in foreign currencies.
Such bank may also extend credit facilities to residents and non-residents.
There is only one restricted license bank operating in the country at present, namely, Banca Commercial
Italiana.
7.3
Investment Banks
Federal Law No. (10) of 1980 defined Investment Bank is a bank that does not accept deposits whose maturities are less than two years, but may borrow from its head office, from local or foreign banks, or from
financial markets. There are two investment banks operating in the UAE at present, namely United Arab
Emirates Investment Bank (PJSC), and HSBC Financial Services (Middle East) Limited.
7.4
Finance Companies
Finance companies may conduct one or more of the following principal business activities:
• Extending advances and/or personal loans for personal or other consuming purposes.
• Financing small trade and small businesses, as well as opening letters of credit and issuing guarantees
on behalf of customers.
• Participating in the capital of projects and/or in the issuance of shares or bonds and/or Certificates
of Deposit.
• The finance company cannot conduct any other additional business activities without the prior approval of the Board of Directors of the Central Bank; such activities cannot be amended without the
approval of the Board of Directors of the Central Bank.
7.5
Financial Investment Companies
In order to organize and promote the business of financial investment companies to the appropriate internationally recognized standards and protect investors, the Board of Directors of the Central Bank issued Resolution No. 164/8/94 dated 18.4.1995. The resolution defines financial investment companies as those conducting
one or more than one of the following business:
• Opening investment accounts and managing portfolios on behalf of others, whether individuals
or companies.
• Preparing feasibility studies for projects and marketing allotments and stocks of shareholding companies.
• Establishing and/or managing investment trust funds.
• Establishing and/or managing other investment funds and act as trustee of funds entrusted to it by a trust
to manage on behalf of a beneficiary.
• Subscribing to companies’ capital and participating in syndicated loans.
38
7.6
Banking, Financial, Investment Consultation Activities
As per the UAE Central Bank Board of Directors’ Resolution No. 164/8/94, a natural or juridical person
licensed to offer banking, financial and investment consultations against a fee, may conduct one or more
of the following main activities:
• Preparing feasibility studies regarding investing in banking, financial or investment projects in financial markets and various securities.
• Designing various strategies, which aim at improving the performance level of existing banking,
financial and investment projects.
• Providing advice or opinion to a natural or juridical person, directly or in writing or through publications, regarding the value of securities or any other financial instruments, or regarding any banking
services available in the country or expected to be provided in the future.
• Recommending to a natural or juridical person, directly, in writing or through publications, to carry
out banking activities or to benefit from banking services, provided by banking institutions, or to
invest or show interest in securities or any other financial instruments, or to purchase or sell such
securities or instruments.
• Looking for technical investment methods with a better return, and providing general instructions or
directives regarding the development of banking services or investment programs.
• Issuing periodical or non-periodical reports with limited circulation regarding the banking system,
or available banking services or services which may become available in the future; or regarding securities or any other financial instruments which include, among other things, an analysis of and a
promotion for such instruments.
7.7
Money Exchanges
Money Exchange is a thriving business in the UAE owing to its demographic structure, which contains
large numbers of expatriates regularly transferring remittances to their families and relatives in their
home countries. The number of moneychangers operating in the country and volume of their transactions increased rapidly in recent years.
7.8
Financial and Monetary Intermediaries [Financial/ Stock Brokers]
As per the UAE Central Bank Board of Directors’ Resolution No. 126/5/95 and 153/5/97, a Financial/Monetary Intermediary means any natural or juridical person, other than the financial institutions, licensed
to conduct the business of financial and monetary brokerage activities. The business carried out by the
intermediary shall be confined to intermediating in the sale and purchase of domestic and foreign stocks
and bonds, currencies and commodities, as well as intermediating in money market transactions.
Abu Dhabi Chamber
7.9
Representative Offices of Foreign Financial Institutions
The Representative Offices should represent a bank or any other financial institution incorporated outside the country. A Representative Office can
undertake the following activities in the UAE:
• Representing the financial institution licensed to deal inside the country, including contacts on its
behalf with concerned agencies as well as promoting its services in the local market.
• Providing the head office of the licensed financial institution with data relating to economic developments in the country.
• Providing customers of the licensed financial institution with information on the local market.
• Providing data to local agency, which intends to develop its business at countries wherein the licensed
institution conduct its business.
• Providing customers with banking, financial and investment consultation services.
7.10
Banks located in Abu Dhabi Emirate
Local banks
Abu Dhabi Commercial Bank
Commercial Bank International
First Gulf Bank
National Bank of U.A.Q PSC
Al Ahli Bank of Kuwait
Bank Saderat Iran
El Nilein Bank
National Bank of Oman
Abu Dhabi Islamic Bank
Commercial Bank of Dubai
Invest Bank PLC
Noor Islamic Bank
Al Khaliji (France) S. A.
Banque Misr
Habib Bank A.G Zurich
Rafidain Bank
Ajman Bank
Dubai Bank
Mashreq Bank PSC
Sharjah Islamic Bank
Arab African International Bank
Barclays Bank PLC
Habib Bank Ltd.
Standard Chartered Bank
Union National Bank
Al Hilal Bank
Dubai Islamic Bank PJSC
National Bank of Abu Dhabi
Arab Bank PLC
BNP Paribas
HSBC Bank Middle East Limited
United Bank Ltd.
Al Masraf Bank
Emirates Islamic Bank
National Bank of Fujairah PSC
United Arab Bank PJSC
Bank Melli Iran
CitiBank N.A.
Janata Bank
Bank of Sharjah PSC
Emirates NBD Bank
National Bank of R.A.K (RAK Bank)
Bank of Baroda
Credit Agricole
National Bank of Bahrain
Foreign Banks
Arab Bank PLC
Bank Saderat Iran
BNP Paribas
Credit Agricole
Habib Bank Ltd.
National Bank of Bahrain
Standard Chartered Bank
Al Khaliji (France) S. A.
Bank Melli Iran
Banque Misr
CitiBank N.A.
El Nilein Bank
HSBC Bank Middle East Limited
National Bank of Oman
United Bank Ltd.
Arab African International Bank
Bank of Baroda
Barclays Bank PLC
Habib Bank A.G Zurich
Janata Bank
Rafidain Bank
40
F oreign Trade
Procedures
8.0
As a member of the World Trade Organization (the WTO) and member of other regional free trade agreements throughout the GCC, Abu Dhabi Emirate and the UAE has low duty rates of 5% on general goods
imported from outside the GCC.
There are no duty on exports, while import duties are normally charged on products imported into the UAE
(outside of the free zones), at rates which can vary according to the nature of the imported product (e.g.
higher duties apply to alcohol and tobacco products).
The duty may be alleviated by exemptions based on the importer’s status (e.g. free zone entity, majority
owned by a GCC national, etc.) or exemptions based on the type of product.
Following section will explain import, exports, and re-exports documents requirements and procedures
in more details.
Abu Dhabi Chamber
8.1
Imports
Any goods imported into Abu Dhabi Emirate must be declared at Abu Dhabi Customs in accordance with
the Gulf Co-operation Council law. In order to make such a declaration, the importer is required to be
present at customs with the documentation relating to the import consignment so that the details of the
import consignment can be verified, and any tariffs due can be paid.
It is recommended to assign a Customs Clearing Agent (or Broker) to proceed with Customs declaration
process. Clearing agents are registered as authorized Customs System Users (CSU) and can potentially
finish the declaration quicker.
In addition to capturing and submitting the consignment particulars into the CSU, importers are required
to submit the following documents:
1. Bill of Loading or Air waybill.
2. Delivery Order.
3. Commercial Invoice.
4. Certificate of Origin.
5. Packing List.
6. Manifest.
7. Import License and Release Order (Restricted Goods).
8.1.1 Clearance
Procedures
The particulars of the shipment must be captured onto the Customs’ Computer System (Dhabi), and submitted for processing. In addition to this, the documents described above must be presented to Customs
for verification.
Customs will advise whether the clearance has been accepted, whether it requires amendment by the
importer or whether an intervention such as an inspection is required. If an amendment is required, the
importer should amend the declaration and re-submit the information and documentation to Customs.
Customs will notify the importer of the amount payable on the shipment, at which point the importer can
select the method of payment to be used to settle the Customs liability. This liability may include tariffs
(duty) and certain transaction fees.
Once the payment has been verified, Customs will release the cargo.
8.1.2 Importers
Tariff
As of June 2006, tariffs are placed at:
1) 50% for all intoxicating liquors
2) 100% for tobacco products
3) 5% for all other products
The tariffs are calculated on the “Cost, Insurance and Freight” (CIF) value of the goods.
42
8.2
Temporary Imports
Temporary import (entry) of goods via customs inlets to the country temporarily (with guarantee of the
Customs duties value) for the purpose of manufacture and completing/finishing or repairing; or execution
of certain projects or for exhibitions, shows, and fairs; and henceforth, re-export.
8.2.1 Import
Required Documents
1. Letter from authority organizing the Exhibition/Show in some cases:
2. Proposal or original Border Crossing Certificate stamped by the customs centre of the country
of origin or neighboring country.
3. The importer shall submit a detailed statement of the consignment to be imported (No., item,
quantity, photos of some consignments such as gold and jewelry).
4. The original bill showing items and quantity of goods to be exported.
5. Packing list.
8.2.2 Import
Procedures
1. The importer must notify customs before clearance, of temporary import request.
2. Bills attached must include serial number for each item to enable customs to view, compare
contents with bills to facilitate the process of clearance.
3. After comparison, the importer keeps a copy of bills stamped by Customs along with remarks of
the customs officer (contents conforming to re-export, exhibiting, return).
4. Bodies importing for exhibitions shall apply from the Authority organizing the Exhibition to
facilitate entry, addressed to the General Director of Customs before importing the goods.
5. 6.0% of the goods value shall be paid (value of goods & shipping value + insurance + (1%) on
goods.
6. The customs official shall approve the customs statement, clear the consignment and refer the
transaction to Section with complete documents till re-export.
7. Goods will be granted a period of temporary entry of six (6) months only and in case of export
after expiry of this period the amount shall not be refunded.
8. In case the importer wishes to extend this period, he/she will have to apply to the General
Customs Administration before expiry of the insurance period (There are fees for extension of
insurance period).
9. To recover the insurance amount, the importer or the customs broker, has to notify the Customs to
compare the bills with the contents upon export in order to obtain clearance of the imported cargo.
10. Then Customs broker shall approach the Customs Admin. to submit the clearance in order to
recover the insurance amount.
11. Temporary entry is not allowed for spare parts, tires, batteries and otherwise consumable
items in the projects.
Abu Dhabi Chamber
8.3
Exports
The export procedures in Abu Dhabi vary depending on the type and volume of merchandise as the export of some goods is subject to periodic restrictions based on the local consumption and need. People
can also dispatch their personal belongings via Abu Dhabi ports for non commercial-purposes.
8.3.1 Exports
Required Documents
1. Original invoice
2. Packing list
3. Bill of lading
4. Original Certificate of Origin
8.3.2 Exports
Procedures
1. Obtain the necessary approval from concerned authorities for the shipment of goods that are
subject to export restrictions imposed on certain items and quantities. (For more details on prohibited and restricted goods, read section 5.5).
2. Prepare the documents required to complete the customs declaration process and submit them
to the customs officer for verification.
3. Submit the Original Certificate of Origin of goods intended for export to the customs officer for
checking its correctness.
4. The customs officer will view the items and their quantities.
5.Receive the customer copy of customs declaration form.
44
8.4
Re-Exporting
Re-export involves importing merchandise of foreign origin into the country and shipping it to another
destination in the same condition when it was imported or after reprocessing inside the country. The
documentation and clearance procedures are simple and largely in favor of businesses and take only few
minutes to complete if you have all the required documents.
8.4.1 Re-Export
Required Documents
1. Original Invoice.
2. Copy of declaration on temporary entry or import for re-export purpose.
3. Original Certificate of Origin.
8.4.2 Re-Export
Procedures
1. Make sure that there are no restrictions on the export or the quantities of certain items before
you approach the customs with your consignment and the required documents.
2. Submit your shipment to the customs officer who will check the number of consignments in each
item and the total number of consignments to be re-exported.
3. The customs officer will also verify the type and volume of the items to be re-exported and
whether the lead seal which is used to prevent unauthorized opening of goods under customs
control is intact.
4. After the officer prepares the customs declaration, obtain your copy.
Abu Dhabi Chamber
9.0
ABU DHABI SPECIALIZED
FREE ZONES
The UAE federal constitution, the federal laws relating to free zones and the powers reserved by the individual Emirates under the federal structure, permit each Emirate to set up “free zones” for general or industryspecific activities. The purpose of free zones is to encourage foreign direct investment into the UAE. Free zone
entities are not generally required to have any UAE nationals as owners/sponsors. This contrasts with most
companies incorporated in the UAE outside of the free zones, where UAE nationals are typically required to
own at least 51 percent of the company’s capital. Various free zones have been set up in the UAE, most of
which are in the Emirate of Abu Dhabi. Free zones are authorized to enact their own laws and regulations in
specific areas, which in some cases override federal and Emirate law on the subject matter.
Since the UAE first free zone established in 1980, the UAE have been successful in attracting foreign investment and technological expertise and developing the growth or re-exports and transshipment as a major
commercial activity which led all Emirates to create such free zones to attract inward investment, employment
generation, and significant economic growth.
Aside from the advantages already available to companies in the UAE customs territory of zero personal and
corporate taxes, freedom to repatriate capital and profits, and 100% of foreign ownership of companies, and
hence a full control over their business activities; each free zone has its own advantages based on individual
locations, facilities, areas of specialization, establishment and operating costs.
Abu Dhabi Emirate currently holds four major free zones specialized in different economic sectors. Abu Dhabi
Airport Free Zone (ADAFZ) is a business and logistics park of all light industries related to aviation sector offering world class services and facilities. Masdar City is specialized in clean renewable energy. Twofour54 free
zone concentrate on media and production.
46
SKYCITY - ABU DHABI AIRPORT FREE ZONE (ADAFZ)
Abu Dhabi Airports Company (ADAC), the owner and operator of Abu Dhabi International Airport is set to establish a logistics park next to the airport which is planned to operate as a free zone facility. Its creation marks
a milestone in Abu Dhabi’s plans to establish itself as a dynamic business centre. The logistics park will take
advantage of Abu Dhabi International Airport’s strategic geographical position on the crossroads between
East and West, and the large-scale economic development of the Emirate.
The Abu Dhabi Airport Business & Logistics Park serves a broad range of business sectors including:
• Aviation & Aerospace
• Telecommunications
• Logistics, Cargo & Freight • Food stuff and beverages
• Electronics and electrical
• Pharmaceuticals & medical equipments
• Consultancy and business development
• Cosmetics and perfumes
• Computers, internet and IT solutions
• Media and its related service
More detailed can be found on www.adafz.ae
MASDAR CITY
Established in 2006, Masdar is a commercially driven enterprise that operates to reach the broad boundaries of
the renewable energy and sustainable technologies industry – there by giving it the necessary scope to meet
these challenges.
Masdar City Free Zone in Abu Dhabi has recently begun accepting applications from companies operating
in the renewable energy and clean technology sectors. It is now possible to incorporate companies, register
branches of foreign and local companies, and carry on business in Masdar City Free Zone. This is good news for
international companies focused on these growing sectors in the Middle East.
More details can be found on www.masdarcity.ae
TWOFOUR54
Named after the geographical co-ordinates of Abu Dhabi, is a media focused free trade zone, offering attractive fiscal benefits for companies, 100% foreign ownership and an efficient and clear regulatory framework.
More details can be found on www.twofour54.ae
KHALIFA INDUSTRIAL ZONE ABU DHABI (KIZAD)
Khalifa Industrial Zone Abu Dhabi (KIZAD) is the region’s largest industrial free zone. Companies can have 100
percent foreign ownership – a first for Abu Dhabi, located halfway between Abu Dhabi and Dubai, KIZAD has
both a free zone and an international investment zone status. KIZAD offers three core benefits that make it
the industrial zone of tomorrow. Industries will have outstanding access to global markets, be subject to a low
operating cost environment, and benefit from the ease of doing business.
Furthermore, KIZAD offers free zone and non free zone options for companies, knowing that one size does
not fit all.
More details can be found on www.kizad.ae
Abu Dhabi Chamber
10.0
Abu Dhabi Chamber
of Commerce & Industry
The Abu Dhabi Chamber of Commerce & Industry (ADCCI) is an autonomous institution of public interest. It
enjoys its own legal status to represent the various services and productive activities of the private sector in
Abu Dhabi Emirate. According to the provisions of the Chamber law, all natural and legal persons - having
their headquarters, branch or representation office in the Emirate to exercise any commercial, industrial, vocational or professional activity in the Emirate - must join the ADCCI and obtain its membership certificates.
48
Hence, the Chamber is viewed to be the party concerned with patronizing the various activities of the private
sector. It is among its tasks and duties to render best services to member firms and companies. ADCCI Membership certificates are duly issued to such members who are kept updated on how to take the utmost advantages
of ADCCI services and available data and information. Through such data and information, they are also well
apprised of ADCCI regular and occasional functions and events, as well as of its tasks and duties in general.
To support its members, ADCCI Board of Directors issued a package of important decisions, which would bring
to bear the private-public partnership (PPP) for the purpose of socio-economic development in the Emirate,
leading it up to high horizons of welfare and prosperity by forming different Specialized Economic Committees to operate as a tool by means of which it would be possible to both grow continuously au courant with
the conditions of the private sector, its problems and obstacles and help find relevant down-to-earth solutions
with concerned entities. Add to this, conducting professional economic studies with a view to streamline all
activities of the private sector, bringing them up to the highest degree of economic efficiency.
Below is a list of the nine specialized economic committees. Such committees are chaired by ADCCI Board of
Directors and its members consist of ADCCI members (Businessmen) and affiliated parties working in these
varied sectors, along with members from different governmental organizations.
Abu Dhabi Chamber Committees
Economic Committee
Industrial Sector’s Committee
Real Estate Committee
Medical Sector Committee
Trade Committee
Tourism Committee
Construction & Building
Committee
Sheikh Khalifa Excellence Award
Committee (SKEA)
Commercial Convention
Committee
Abu Dhabi Chamber
ADCCI members can also benefit from the Business & Communication Sector that is responsible for
providing members with necessary data & information on the emirate’s business community beside
organizing various domestic and international functions/events where members can introduce their
companies, services or products. Through such interaction, ADCCI can have a much clearer vision on
their issues and obstacles they might be facing. Such issues are usually studied and discussed in a bid
to find the most appropriate solution to support the business community. Recommendations seeking a
solution to such issues are presented to competent authorities requesting required actions to be taken.
Additionally, ADCCI members can benefit from the Legal Consultation services that provides guidance
to investors related to commercial issues, online commercial directory, and service’s offered by ADCCI
subsidiary centers as summarized below:
Abu Dhabi Commercial Conciliation and Arbitration Center (ADCCAC)
The Commercial Conciliation and Arbitration Center (ADCCAC) is
accountable for settling national and international commercial disputes
through conciliation and arbitration. it is also responsible for promote
awareness about methods of arbitration and alternative dispute resolution through conferences, workshops, training courses, specialist publication and printed material and by other means.
http://www.abudhabichamber.ae
Abu Dhabi Business Women Council
The Abu Dhabi Business Women Council aims to maintain the leading
role played by Abu Dhabi Businesswomen and articulate their ambitions and requirements. Likewise, it provides distinguished services to
businesswomen to contribute to the national economy and promote Abu
Dhabi as as a global hub for economy and finance.
www.adbusinesswomen.ae
50
Abu Dhabi Center for Corporate Governance (ADCCG)
The Abu Dhabi Center for Corporate Governance (ADCCG)has been
established to effectively promote, and positively contribute towards
the development of the national economy, by encouraging and assisting the private and public sectors, to adopt the highest standards
and practices of corporate governance, by means of raising awareness, building local capacity, and providing assistance and advisory
services to businesses and government entities.
http://www.adccg.ae
UAE Academy
The UAE Academy is a center of excellence applying a holistic approach to
learning and development. It provides programs to equip individuals with
the skills, and knowledge necessary to compete in a knowledge - based
economy, placing equal emphasis on personal motivation and attitude.
http://www.uaeacademy.ae
Abu Dhabi International Centre for Organizational Excellence (ADICOE)
The Abu Dhabi International Centre for Organizational Excellence (ADICOE)
has been set up to serve organizations seeking to excel. It aims to promote
performance-related excellence at personal, interpersonal, managerial and
organizational levels in the UAE, regionally and internationally.
The Abu Dhabi Chamber of Commerce & Industry (ADCCI) is part and parcel of the all-out socio-economic development march incarnated in the Abu Dhabi Economic Vision 2030 adopted by our , Vision-driven wise and
prudent leadership that spares no effort to enhance the emirate’s image on the world map.
Abu Dhabi Chamber
11.0
Useful Contacts
Abu Dhabi Accountability Authority (ADAA)
www.adaa.abudhabi.ae
Abu Dhabi Urban Planning Council (UPC)
www.upc.gov.ae
Abu Dhabi Airports Company (ADAC)
www.adac.ae
Abu Dhabi Water & Electricity Authority (ADWEA)
www.adwea.ae
Abu Dhabi Authority for Culture & Heritage (ADACH)
www.adach.ae
Advanced Technology Investment Company (ATIC)
www.atic.ae
Abu Dhabi Chamber of Commerce & Industry (ADCCI)
Al Ain Distribution Company (AADC)
www.aadc.ae
Abu Dhabi Council for Economic Development (ADCED)
www.adced.ae
Center of Waste Management - Abu Dhabi (CWM - AD)
www.cwm.ae
Abu Dhabi Customs Administration (ADCA)
www.auhcustoms.gov.ae
Central Bank of the UAE (CBUAE)
www.centralbank.ae
Abu Dhabi Distribution Company (ADDC)
www.addc.ae
Centre for Regulation of Transport by Hire Cars (TransAD)
www.transad.ae
Abu Dhabi Education Council (ADEC)
www.adec.ac.ae
Critical National Infrastructure Authority (CNIA)
www.cnia.ae
Abu Dhabi Food Control Authority (ADFCA)
www.adfca.ae
Department of Economic Development (DED)
www.adeconomy.ae
Abu Dhabi Fund for Development (ADFD)
www.adfd.ae
Department of Finance (DOF)
www.dof.abudhabi.ae
Abu Dhabi General Services (Musanada)
www.musanada.co.ae
Department of Municipal Affairs - Al Ain City Municipality
Abu Dhabi Health Services Company (SEHA)
www.seha.ae
Abu Dhabi Investment Council (The Council)
www.adcouncil.ae
Abu Dhabi Judicial Department (ADJD)
www.adjd.gov.ae
Abu Dhabi Media (AD Media)
www.admedia.ae
Abu Dhabi Motors Club (Motors Club)
www.admc.ae
Abu Dhabi National Exhibitions Company (ADNEC)
www.adnec.ae
Abu Dhabi National Oil Company (ADNOC)
www.adnoc.ae
Abu Dhabi Ports Company (ADPC)
www.adpc.ae
Abu Dhabi Securities Exchange (ADX)
www.adx.ae
Abu Dhabi Sewerage Services Company (ADSSC)
www.adssc.ae
Abu Dhabi Sports Council (ADSC)
www.adsc.ae
Abu Dhabi Systems & Information Centre (ADSIC)
http://adsic.abudhabi.ae
Abu Dhabi Tourism Authority (ADTA)
www.abudhabitourism.ae
(AACM)
http://am.abudhabi.ae
Department of Municipal Affairs - Municipality of Abu
Dhabi City (ADM)
www.adm.gov.ae
Department of Municipal Affairs - Western Region Municipality (WRM)
www.wrm.ae
Department of Municipal Affairs (DMA)
www.dma.abudhabi.ae
Department of Transport (DoT)
http://dot.abudhabi.ae
Emirates Authority for Standardization & Metrology (ESMA)
www.esma.ae
Emirates Foundation (EF)
www.emiratesfoundation.ae
Emirates Identity Authority (EIDA)
www.emiratesid.ae
Emirates Integrated Telecommunications Company (du)
www.du.ae
Emirates Nuclear Energy Corporation (ENEC)
www.enec.gov.ae
Emirates Telecommunications Corporation (Etisalat)
www.etisalat.ae
Environment Agency - Abu Dhabi (EAD)
www.ead.ae
52
Executive Affairs Authority (EAA)
http://eaa.abudhabi.ae
Family Development Foundation (FDF)
www.fdf.ae
General Authority of Youth and Sports Welfare (YSW)
http://ysa.gov.ae
General Civil Aviation Authority (GCAA)
www.gcaa.gov.ae
General Directorate of Abu Dhabi Police (ADP)
www.adpolice.gov.ae
National Crisis and Emergency Management Authority
(NCEMA)
www.ncema.ae
National Media Council (NMC)
http://nmc.gov.ae
Regulation and Supervision Bureau (The Bureau)
www.rsb.gov.ae
Ruler’s Representative Court of the Western Region (RRCWR)
www.wrd.abudhabi.ae
General Directorate of Residence and Foreigners Affairs -
Securities and Commodities Authority (SCA)
www.sca.ae
Abu Dhabi (GDRFA)
www.dnrd.ae
Space Reconnaissance Center (SRC)
www.falconugs.ae
Health Authority - Abu Dhabi (HAAD)
www.haad.ae
Statistics Centre - Abu Dhabi (SCAD)
www.scad.ae
Higher Corporation for Specialized Economic Zones (ZonesCorp)
www.zonescorp.com
Supreme Petroleum Council (SPC)
www.adnoc.ae
Khalifa Fund for Enterprise Development (KFED)
www.khalifafund.gov.ae
Telecommunications Regulatory Authority (TRA)
www.tra.gov.ae
Masdar (Abu Dhabi Future Energy Company)
www.masdar.ae
The Abu Dhabi Quality and Conformity Council (QCC)
www.qcc.abudhabi.ae
Media Zone Authority (twofour54)
http://twofour54.com
The Federal National Council (FNC)
www.almajles.gov.ae
Military Survey Department (MSD)
www.uaesurvey.ae
The General Secretariat of the Executive Council (GSEC)
http://gsec.abudhabi.ae
Ministry of Culture, Youth and Community Development
The International Petroleum Investment Company (IPIC)
www.ipic.ae
(MCYCD)
http://mcycd.gov.ae
Ministry of Labour (MOL)
www.mol.gov.ae
Ministry of Presidential Affairs (MOPA)
www.mopa.ae
Mubadala Development Company (Mubadala)
www.mubadala.ae
Tourism Development & Investment Company (TDIC)
www.tdic.ae
Western Region Development Council (WRDC)
www.wrdc.ae
Zakat Fund (ZF)
www.zf.ae
Zayed Higher Organization for Humanitarian Care and
National Center of Meteorology & Seismology (NCMS)
www.ncms.ae
Special Needs (ZHO)
www.zho.ae
National Consultative Council (NCC)
www.ncc.ae
Zayed House for Islamic Culture (ZHIC)
www.zhic.ae
For a full Commercial Directory of Abu Dhabi Emirate please visit Abu Dhabi Chamber Online Directory at www.abudhabichamber.ae
where you can custom search companies by their; activities, location, name, legal status, nationality, etc…
Notes:
54
Abu Dhabi Chamber
Abu Dhabi Chamber
56
Abu Dhabi Chamber of Commerce & Industry PO Box: 662, Abu Dhabi U.A.E
: +971 2 621 4000
: +971 2 621 5867
‫ اإلمارات العربية المتحدة‬،‫ أبوظبي‬،662 ‫ب‬.‫غرفة تجارة وصناعة أبوظبي ص‬
: [email protected]
: www.abudhabichamber.ae

Abu Dhabi - CzechTrade

Transcription

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