Unlimited Opportunities 2013

Transcription

UNITED ARAB EMIRATES
MINISTRY OF ECONOMY
WHY
Unlimited Opportunities
2013
MINISTRY OF ECONOMY
WHY
Unlimited Opportunities
2013
MINISTRY OF ECONOMY
©2013 All Rights Reserved by:
Ministry of Economy
P.O. Box 110555 Abu Dhabi, United Arab Emirates
Tel.: +971 2 626 5000
Fax: +971 2 621 5339
E mail: [email protected]
www.economy.ae
“
It is because of the rapid and
dynamic changes in the global economic
scene that our economy today needs
quality investments that bring modern
technology and high levels of technical
and managerial expertise that will
enable our economy and products to
compete globaly.
“
Khalifa Bin Zayed Al Nahyan
His Highness Sheikh Khalifa Bin Zayed Al Nahyan
President of the United Arab Emirates
“
Thanks God, we turned the dream
into reality and great achievements
that put the UAE on the spotlight and
attracted the largest multinational
companies that seek profitability,
security and future growth
“
Mohammed Bin Rashid Al Maktoum
His Highness Sheikh Mohammed Bin Rashid Al Maktoum
Vice President and Prime Minister of The United Arab Emirates,
Ruler of Dubai
I welcome you to the UAE, a country with an ever-renewed spirit and an ever-widening
base of opportunities that is today celebrating 40 years of a continuous and united race towards excellence.
“Being amongst the best nations in the world” is a promise that was made by our leaders not only to the
citizens of the UAE, but to the investors, businessmen, employees and families who chose to work and live
in it.
Around fulfilling this promise revolve our visions, aspirations, initiatives and mandates.
After 40 years of hard and diligent work, I stand proud of our achievements. I am also proud and
confident of the unique and well-structured value proposition that we today present to the international
business community.
Our unrivaled infrastructure, accommodating internationally-benchmarked laws and regulations,
cutting-edge technological environment and, above all, a determination to aim higher continue to make
us the location of choice for the most renowned multinational companies, international investors and wellqualified professionals.
No longer is the UAE only associated with the high production of oil and natural gas or with the world’s
tallest buildings or the world’s only seven star hotels. Those vital sectors are only some of the unlimited
opportunities that can be exploited in choosing the UAE. Today, the UAE is the de facto financial centre
between Singapore and London and the host of the world’s largest man-made port and some of the world’s
busiest airports. It also hosts the world’s first free zone dedicated to biotechnology and research and has
the world’s only capital connected with a fiber network, just to name a few of what our drive for innovation
has fruited.
In this challenging and fiercely competitive global economic environment, having a partner of trust and
a base from which operations can be conducted securely becomes more crucial than ever. That’s what the
UAE can offer you all. No matter what field your business operates in, the UAE is committed to provide a
tailor-made solution and business environment that will enable it to focus on its core business and overcome
its difficulties.
In these 40 years, we built, from the ground up, cities, seaports, skyscrapers, airports and international
companies, attracted most of the top Fortune 500 companies to setup in the UAE, became among the top 25
nations globally in competitiveness and among the leading nations in the quality of lifestyle. It is to share
this ambition and to take part in this success story that I invite you all.
In this book, titled “Why UAE?”, you can explore some of the reasons why this nation lying on the
shores of the Arabian Gulf is the location of choice to start a successful business. Through a comprehensive
overview of our resilient economy, diverse and ever growing base of opportunities, friendly and businessoriented legal environment and smooth procedures to register a business, you can construct a full picture of
the country’s promise and potential. Not to forget the openness embedded in our culture and the amazing
lifestyle that you and your family can enjoy. That’s what I can label as “The Emirati dream”.
I thank you all for taking the time and showing the interest to explore the country.
Regards
Sultan Bin Saeed Al Mansoori
Minister of Economy.
Contents
Chapter 1
The United Arab Emirates The Fundamentals
The UAE: Histories of Openness and Achievements
The UAE: Strategic Location and Diversified Terrains
The UAE: A Unique Demographic Structure
The UAE: A Unique Model of Integration
Abu Dhabi
Dubai
Sharjah
Ajman
Ras Al-Khaimah (RAK)
Umm Al Quwain
Fujairah
16
18
22
26
30
34
36
38
40
42
44
46
49
Chapter 2
Why UAE? The Layers of Uniqueness
Chapter 3
The United Arab Emirates A Sound and Resilient Economy
The UAE: A Strong Economic Heritage
The UAE Economy: A Unique Orchestration
The UAE Economy: The Pillars of Success
The UAE: A Story of Growth
The UAE: A Sound Macroeconomic Environment
A Bright Economic Outlook
The UAE: A Progressive Economic Policy
The UAE: an Open and Flexible Trade Policy
The UAE: A Visionary Approach
86
87
88
90
94
100
102
106
126
Chapter 4
The United Arab Emirates A World of Opportunities
133
A Gateway to Growth
An Inspiring Society and Spirit
A “Plug and Play” Solution
A Climate of Trust
A True Knowledge Economy
A Recognized Global Brand
Energy
52
58
64
68
72
78
85
135
[Oil and Natural Gas Exploration and Production, Petrochemicals, Utilities Infrastructure
Development, Renewable Energy, Mining and Quarrying]
Real Estate and Construction
153
[Real Estate Development and Investment, Construction, Infrastructure Development,
Property and Facility Management ]
Tourism and Hospitality
173
[Spas and Recreation Facilities, Tourism and Travel Services, Museums and Historical
Tourism, Events and Incentives Tourism]
Manufacturing
189
[Petrochemical Industries, High Tech and Heavy Industries, Light and Mechanical
Industries, Consumer Industries, Food Processing Industries]
Health Care and Pharmaceuticals
205
[Pharmaceutical Manufacturing, Hospitals and Clinical Treatment, Medical Tourism,
Medical Equipment and Technology]
Telecommunications, Media and Information Technology
[Telecommunications, Satellite Communications, Business Process Outsourcing,
Information Technology, Media]
217
Chapter 5
The United Arab Emirates Seven Pearls and Beyond
Chapter 6
The United Arab Emirates Accommodating Legal Environment
Abu Dhabi - Free Zones
Dubai - Free Zones
Sharjah - Free Zones
Ajman - Free Zones
Umm Al Quwain - Free Zones
Ras Al Khaimah - Free Zones
Fujairah - Free Zones
233
235
245
289
295
299
303
309
313
[The Constitution, Legislative Authorities, Judicial Authorities,
Characteristics of the Legal System, Civil Litigation Process, Arbitration]
Legal environment in Free zones Vs. Inland
Legal Topics Relevant to doing Business in the UAE
317
318
Commercial Transaction
Commercial Companies
Employment
318
Intellectual Property
Exchange of Securities & Commodities
Insurance
Telecom
332
Electronic Transactions & Commerce
344
Chapter 7
Setting Up a Business in the UAE Seizing The Opportunities
Chapter 8
The United Arab Emirates A Rooted Business Culture
Understanding the UAE Market
Establishing a Business in the UAE
Business Licensing Authorities in the UAE
Selecting a Trade Name
Selecting a Local Partner Sponsor or Service Agent
Selecting the Form of the Business Entity
Types of Business Licenses in the UAE
Third Party Approvals
Commercial Registration
Establishing a Free Zone Business Entity:
Employment in the UAE: Easy Regulations and Spirited Workforce
The Emirati Identity
322
328
334
340
342
349
352
353
354
356
358
359
370
374
378
380
384
387
389
[Modern Identity Burj Al Arab, Dubai Burj Khalifa, Dubai
The Palm Trilogy and The World, Dubai International Sports, Saadiyat Island
Abu Dhabi, Yas Island Abu Dhabi]
Down to Business
395
[The Emirati Perspectives, Interaction, Conversations, What to Wear]
Chapter 9
Relocating to the United Arab Emirates
Things to do Prior to Arrival
Housing and Accommodation
Banking Processes and Procedures
Essential Do’s and Don’ts
Education
Driving and Etiquette
Health Services on Offer
Lifestyle and Entertainment
Getting Around
401
403
408
410
412
414
415
417
418
421
Chapter 1
The United Arab Emirates
The Fundamentals
“
Rooted in its unique fundamentals of unlimited
ambition, flexibility and openness, the United Arab Emirates
succeeded to evolve to be the energetic modern civilization as
perceived today. The same cultural foundations that have built
the blocks of the nation along with the foresighted strategic
planning by visionary leadership have been driving the country’s
economy to a higher level.
“
16
Chapter 1
international commercial interests.
U
nlimitedness is the characteristic that
defines the fundememntals upon which
the United Arab Emirates are based. It was not
a coincidence that a country, born in the second
day of December 1971 is now a top global
investment and trading hotspot. Evidences
from different historical periods show that
the United Arab Emirates, through the
boundless opportunities it always presented,
has been an important location in the global
economic map, thus attracting significant
This unlimitedness, deeply rooted in its
culture, has also produced an embedded
openness that resulted in a very unique
demography throughout the history. Its portcities, from Jelfar to Dubai, have always been
points of attraction for those who seek growth
and for those with ambition. Recognizing
these unique fundamentals, the leaders of the
country’s most recent renaissance have chosen
the most flexible model to establish the basis
of the nation’s governance that will assure the
preservation of its fundamental values and
capitalize upon them to build a vibrant society
that will always reach the top.
UAE - Basic Information
Country
National Day
December 2,1971
The date the UAE was founded
Capital
Abu Dhabi
President
H.H. Sheikh Khalifa bin Zayed Al Nahyan
Vice-President
H.H. Sheikh Mohammed bin Rashid
Al Maktoum
Emirates
Abu Dhabi, Dubai, Sharjah, Ajman
Umm Al Quwain, Ras Al Khaimah
and Fujairah
Languages
Arabic - Official Language
English - Widely Spoken
Working Days
Sunday-Thursday
Time Zone
GMT+4
Religion
Islam
Currency
United Arab Emirates Dirham (AED),
USD = AED 3.6725
Why UAE ?
Because it is located in the centre of
the Gulf countries, Indian Sub-Continent,
Commonwealth of Independent States
(CIS) and Africa, the UAE enjoys a strategic
position that allows it to present unlimited
opportunities across a wide range of sectors.
The diverse and geographically-proximate
terrains that range from plains to mountains
and from deserts to beaches give the UAE a
distinguished competitive advantage. This
set of ever-present factors will continue to be
primary drivers and logical reasons to answer
the question: “Why UAE?”
1900
Population
25,000
Nationalities
Local Arabs
Business Activities
Pearl Diving
Herding
1950
Population
50,000
Nationalities
Local Arabs and
Western Asians
Business Activities
Trading
Fishing
Sea Faring
1980
Population
1.04 million
Nationalities
Arabs, Asians,
and a few Westerners
Business Activities
Trading, Services,
Manufacturing, and Oil
Production
2011
Population
8.6 million
Nationalities
A True Multicultural
Society with morethan
200 Nationalities
Business Activities
A Diversified Economy
The Unlimited Opportunities 2012
17
18
Chapter 1
The UAE: Histories of
Openness and
Achievements
As
indicated
by
excavations
and
archeological discoveries in different areas
of the country, the United Arab Emirates
has an ancient history that goes back to the
pre-historic times. Throughout the different
historical eras, the land has been the home
of active and rich civilizations that interacted
positively and effectively with other
civilizations in the neighboring Mesopotamia
and small Asian communities. It had been the
home of rich and important strategic resources
from diverse civilizations that inhabited the
ancient western Asia. This part of the world
has always been considered the main transit
point between the east and the west. Thus,
interaction with the outside world in the form
of foreign trade has been a recurring motif in
the history of the UAE.
The first known human existence on
the UAE can be traced as far back as 5500
B.C . However, its initial recorded contact
with the outside world, particularly with the
Why UAE ?
civilizations in the north of Persia and
Mesopotamia, was during the end of the
third millennium B.C. During that time, two
prominent civilizations flourished in the
country and were in contact with neighboring
civilizations. The first was Majan civilization
located in the area today shaping parts of
the Emirate of Abu Dhabi. The port of Umm
al Nar, now near the city of Abu Dhabi, was
a major trading port for this civilization. The
second was Milokha located in the central part
of the Emirate of Sharjah today. Foreign trade,
motivated by copper export, increased with
many parts of the world including Persia, Iraq,
the Indian sub-continent and even China.
The domestication of camels, around the
year 2000 B.C., further contributed to the
rise of the area’s trading activity with its
neighboring regions.
During the 1st century A.D., the port
of Omana – known today as Umm al-Quwain –
started its fundamental role as an alternative
sea-route to the Red Sea that was used for
centuries. During this stage, pearl diving and
trading flourished as a main source of income
for the region. Seafaring was also a common
business activity for the region. Dibba, a port
in the eastern coast of the UAE, was known as
a host of one of the major trade fairs where
goods coming from India, China and Africa
get traded with merchants from all over the
region.
In 630, Islam reached the region; people
converted without a battle. Moreover, Jelfar –
today Ras al-Khaimah – became a staging base
for Muslims to travel throughout the Indian
Ocean, spreading Islam to vast areas over
many centuries. As a result of the growing
political and commercial importance, city
turned into a very wealthy port. Throughout
the middle Ages, the regional sailors and
merchants dominated the most important
trade routes between the east and the west
running through the Indian Ocean, Arabian
Sea, the Gulf and the Red Sea.
and the people. Due to the stabilized
political situation, the pearling industry
flourished during the 19th and early 20th
centuries, creating more income and business
opportunities to the people of the Gulf region.
Unfortunately, this industry was smashed by
the economic depression of the late 1920s and
early 1930s coupled with the Japanese cultural
pearl invention as well as the new taxes
imposed by the government of India. Pearl
diving and trade completely disappeared in the
region by the start of the Second World War.
In the early 16th century, the Portuguese
succeeded in controlling the Indian Ocean by
invading and ruling the key port cities of India,
Oman and East Africa. This was preceded by
the historical event of exploring the spice
route to India by Vasco de Gama who was
helped by Ahmed bin Majid, a local navigator
from Jelfar. In 1650, local Arabs managed
to liberate the area from the Portuguese
influence. However, it became a target for
several competing European colonizing
powers. As a move to protect its Indian trade,
the British government invited the Sheikhs of
the region to sign a maritime treaty. In 1820,
the treaty was signed and the area was named
as the “Trucial States”.
In 1892, the relations between the United
Kingdom and the Trucial States became
stronger
in their signing of a Protection
Agreement. The British agreed to defend the
Trucial Coast against any foreign attack and
in return the Sheikdoms agreed not to enter
into relations with any foreign government
without their consent. However, the sheikhs
kept their control over their local jurisdictions
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20
Chapter 1
The times were hard on people of the
emirates. However, they continued, as was
the case throughout the history, to create new
ways of utilizing their resources and pursing
their role in bridging and facilitating trade
between India, Africa, the Arabian Gulf and
the surrounding region. In that particular
time, some visionary individuals sniffed the
opportunities lying ahead for the emirates
and the region. The late 1940s and 1950s
witnessed the birth of what’s today some of
the largest conglomerates not only in the UAE
but in the region at large.
Conversion
to Islam
Trading
and flourshing.
Domestication
of the camel
Interaction
with outside
world.
Copper Trade
exporting to Persia,
Mesopotamia
5500
BC
First known
human
occupation
Why UAE ?
3000
BC
2000
BC
1st
Century
AD
Seaborne
travel through port
of Oman,
Umm al-Qaiwain
today
630
1507
Portugese
Colonized the
region.
The decade of the 1960s was marked by
one of the country’s historical milestones,
namely the discovery and export of oil
from Abu Dhabi’s desert. A massive plan of
infrastructure development had been set to
transform the emirate when the late Sheikh
Zayed Bin Sultan Al Nahyan became the ruler
in 1966. Dubai ruler, the late Sheikh Rashid Bin
Saeed Al Maktoum, also started the journey
of a comprehensive building strategy as oil
revenues started its inflow in 1969.
Umm Al-Quwain, and Fujairah. The last Emirate
to join was Ras Al-Khaimah on February 1972.
With the visionary leadership and hard work
of the father of the new-born country, Sheikh
Zayed bin Sultan Al Nahyan along with the
other founding fathers, a revolutionary era
had began.
Since then, the nation and its seven
Emirates started their journeys of success into
building one of the region’s most modern and
developed nations and a global role model
for sustainable development and balanced
As the United Kingdom’s protection
relations with the whole world. After Sheikh
agreement with the Trucial Coast was
Zayed passed away in 2004, his eldest
approaching its end on December 2nd
1971, early calls of unifications were
son His Highness Sheikh Khalifa bin
The
made by the new fully independent
Zayed Al Nahyan was appointed as
federation
states’ Sheikhs. On December 2nd
the president of the UAE. Under
was formed;
1971, the United Arab Emirates
his leadership, the United Arab
Sheikh Zayed
was announced as a uniquelyEmirates continues to target and
president
of the UAE
modeled federation consisting of
reach new heights of success.
Abu Dhabi, Dubai, Sharjah, Ajman,
Discovery of oil.
Early calls of
Unification.
Peace Treaty
with British
Governement
1820
HH Sheikh
Khalifa bin Zayed
became
the president
of the UAE
1930
The Collapse
of pearl
industry
1960
1971
2004
Today
Still breaking
all of the world
records
21
22
Chapter 1
The UAE: Strategic
Location and Diversified
Terrains
The UAE: An Attractive
Location
Positioned in the heart of the old world,
the geographic location of the Middle East
is certainly very strategic. On this part of the
Earth, the earliest civilizations flourished, not
just because of its importance as the ideal
access point to the three continents but also
because of its wealthy natural resources.
Being located on the eastern entry point of
this strategic region,the UAE’s role as a vital
transit point between the east and the west
through its access to both the Arabian Gulf
and the Indian Ocean has been a competitive
advantage of the country since the ancient
times.
The country has a significant coastline on
the Gulf of Oman on its east and the Arabian
Gulf on its west and northwest. The UAE is also
located next to the southern lines of the Strait
of Hormuz, an essential passage for more than
40% of the world crude oil. This location has,
in some way, shaped the country’s history.
Contacts with ancient civilizations like the
civilization of north of Persia and Mesopotamia
during the third millennium B.C. were mainly
because of this ideal location. It’s for the
same reason the UAE ports and airports today
are ranked among the top choices for major
carriers when planning their routes from the
east to the west.
Area and Boundaries
Location
Southwest of Asia in the south of the
Arabian gulf and towards the
south-eastern edge of the Arabian
peninsula. Very Close to the southern
edge of the strait of Hormuz
Total Area
83,600 km1
Boundaries
Saudi Arabia 457 km
Oman 410 km
Geographic Co-Ordinates
Between 22° - 26.5° north latitude and
between 51° - 56.5° east longitude
In spite of it is small size and limited
area, the UAE is characterized by diversified
environment and rich landscape, adding an
extra advantage to its strategic location. Thus,
those two factors combined were important
fundamentals that contributed to shaping
the UAE’s history and its current and future
economic and demographic landscape.
Elevation Extremes
Sea level – 0.0m (lowest)
Jabal Jais in Ras Al-Khaimah 1737m
(highest)
Islands
More than 200
Coastline
Over 800 km on both the Arabian Gulf
and the Gulf of Oman
Why UAE ?
1-The UAE Government Official Portal
The UAE’s Diverse Terrains
The UAE’s diversified terrains are comprised
of flat, barren coastlines, vast deserts, and high
mountains. The beautiful coasts mostly consist
of clean salt pans. The five emirates, Abu
Dhabi, Dubai, Sharjah, Ajman, Ras Al Khaimah,
and Umm Al Quwain are located on the coast
of the Arabian Gulf, whereas Fujairah and a
part of Sharjah are on the coast of the Gulf of
Oman. Just a few kilometers from the coast
lay vast, rolling sand dunes that covers wide
areas of the south and the west of the country;
those dunes and vast desert areas shaped the
natural eastern edge of Ar-rub’-al-khali ( the
empty quarter), one of the largest desert areas
in the Arabian peninsula and the region. The
desert, however, is permeated by important
oases like “Liwa” and “Al Ain” that provide
the area with a great source of underground
water used for sustainable settlements and
permanent cultivation.
In the north, east and the southeast of
the UAE, bordering the Sultanate of Oman,
lay Al Hajar al Gharbi (Western Al Hajar)
Mountains. They rise in some places to almost
2,000 meters and extend southeastward for
about 150 kilometers to the southernmost
UAE-Oman border on the Gulf of Oman. The
sharp mountain slopes run directly to the
shore in many places. However, in Fujairah the
mountains do not approach the coast, only
sandy beaches. On the other hand, there are
small harbors at Dibba Al-Hisn, Kalba, and
Khor Fakkan on the Gulf of Oman.
This diverse yet proximate terrains base that
the UAE possesses provides not only for an
ecological richness, but shapes a solid ground
for the creating of a flourishing tourism
industry that provides visitors and business
travelers with a unique experience and variety
of choices for different interests.
23
24
Chapter 1
Climate
The UAE climate is an arid subtropical
climate because of its location within the
northern desert belt and as the tropic of cancer
passes through its lands. Its temperatures
slightly differ from a place to another as well
as from time to another due to diversified
geographical altitudes. In the mainly-desert
inlands of the western legions, for instance,
the daily temperature range is significantly
wider than the coastline cities and areas.
During summer, the UAE’s inland temperatures
are extremely high with dryness while it gets
a bit cooler in mountains. In contrast, the
climate on the coastal areas is known of its
high humidity. However, the UAE is considered
as one of the world’s best winter destinations
since its average temperature is 15 C - 26 C.
Humid southeastern winds, known as Al Kaws,
may also blow throughout the summer as rain
may fall in the coastal area, sometimes causing
floods in usually dry valley beds (Wadies). The
region overall is exposed to occasional dust
storms just like the rest of the GCC countries.
Flora and Fauna
The UAE is a home to a wide range of
native flora. Estimates show that the deserts,
mountains and islands of the UAE contain
more than 6,500 indigenous floras. A variety
of trees such as date palms, acacia and
eucalyptus grow in the oases, grasses, thorn
bushes, and many plants like peganum harmal,
heliotropium bacciferum and citrullus are
spread all over the desert. Many of these plants
are used conventionally and traditionally to
develop different pharmaceutical products.
Climate
General Weather
Hot and Humid (summer)
Moderate cool (winter)
Highest Temperature
48 °C
Lowest Temperature
14 °C
Hottest Months
July and August
Coldest Months
January and February
Islands
More than 200
The Average Annual Rainfall
120-350 mm
Why UAE ?
The UAE also has an indigenous fauna
and a rich wildlife. The famous Arabian Oryx
and leopards are just two examples of the
species that have their habitats in the UAE’s
rich ecological system. In addition, the UAE is
also rich in marine life and fisheries resources.
Some of the coastal fish that can be found off
the UAE coastlines are mackerel, perch and
tuna, as well as sharks and whales.
26
Chapter 1
from 680,000 in 1975 to reach 8.26 million as
of 2010 estimates.
Despite the consequences of recent
economic downturn, the UAE sustained a
strong annual population growth trend. With
an annual growth rate of 3.69%, the UAE
today is ranked the 1st internationally in this
category in 2009 5 . Among the GCC countries,
the UAE has the second largest population
The UAE: A Unique
Demographic Structure
Population
Since the declaration of the United
Arab Emirates in 1971, the strong
economic growth along with the
embedded openness of the society
and the business-friendly policies
and regulations implemented by the
government have been attracting
opportunities and success seekers
from around the globe to join the
development
renaissance
in
the
country.
This
attractiveness
has
resulted in an exponential growth in
the size of the country’s population
Demographic Indicators
UAE Population
8,264,0702
Population Growth Rate
3.28%
Population in Urban
3,489,9883
Male / Female Ratio
6.16 million males
2.10 million females1
Age Structures4
0-14 years - 16.8%
15-64 years - 81.9%
64+ years - 1.3%
Literacy Rate
91%
Labor Force
2,559,000
Language
Arabic (official), English,
Persian, Hindi, Urdu
Religions5
Islam - 96%, Others - 4%
Why UAE ?
UAE Population Growth
8,000,000
6,000,000
4,000,000
2,000,000
0
1970
75
80
85
90
95
2000
05
2010
in the region of which the majority is
urban residents. The largest portion of the
population lives in the three largest emirates;
Abu Dhabi, Dubai, and Sharjah. This high
urbanization rate has driven the country to
focus on building and providing efficient
public services, strong transportation system,
and
reliable
communication
networks.
Additionally, this urbanization has led the
drive to improve the business environment
and to create service sectors that are today
globally competitive.
The UAE’s population is predominantly
young. According to the National Bureau of
Statistics estimates based on a total population
of 8.20 million in the year of 2009, around 81.9
percent of the population is 15 to 59 years of
age, around 16.8 percent is less than 14 years
of age, and 1.3 percent is 60 years old and
older4 . The population is male dominant, with
males numbering 6 millions and females, 2
millions 6 . Studies have shown that there is a
correlation relationship between GDP growth
and the percentage of “15-64 years old age
group”. The UAE was among the first nations
to understand the strong relationship between
the young population and the economic
growth and in accordance it made policies to
maximize the benefits by providing them with
high knowledge, skills and comprehensive
education systems.
1-The UAE Government Official Portal
2-Estimates 2010, National Bureau of Statistics
3-Census Data 2005, National Bureau of Statistics
4-Analytical Report on Economic and Social Dimensions UAE
Education
The rapid rise in population has demanded
a significant investment in education. As a
response to the society’s call and derived
from the government’s strong belief on the
importance of good education as a major pillar
of the society’s overall continuing development
and progress, approximately 25 percent of the
total federal government spending has been
dedicated to education. New policies and
modern high advanced educational techniques
and programs have been enforced by the
Ministry of Education in order to prepare
Population by Emirates
33%
33%
20%
5%
1%
5%
3%
men and women to actively participate in the
society and to provide a reliable competitive
workforce.
Good education has been
providing the country great advantages to be
at the head of the nations by building more
competitive and comparative strengths. The
fast economic growth is greatly attributed
to the greater portion of the population
(91%) that attends or graduates from schools.
Business education in particular has been a
field of emphasis as stated by the Minister of
Higher Education and Scientific Research.
Population by Educational Status
Illiterate
Read & Write
15.63 Primary
17.90 Preparotary
25.93 Secondary
9.32
Abu Dhabi
Dubai
Sharjah
13.90
Ajman
Umm Al Quwain
Ras Al Khaimah
Fujairah
National Bureau of Statistics, Census Data 2005
5-CIA The World Factbook
6-Population Estimate 2006-2010, National Bureau of Statistics
Below University
University
1.50 Above University
0.10 Not Stated
4.01
12.50
National Bureau of Statistics, Census Data 2005
27
28
Chapter 1
Women in Workforce A lack of formal education had prevented
the majority of women from participating in
the development of the country’s economy
before the creation of the union. However,
under the leadership of the founding father of
the UAE, the late Sheikh Zayed bin Sultan Al
Nahyan, rapid actions were taken to promote
women’s education. Since then, women in the
UAE have been taking their roles in all political
and economic life. The Government, through
its policies and incentives, supports the
engagement of females to actively participate
in both the government sector and the private
sector and strongly believes on the importance
of empowering them through good education.
According to latest figures from Statistics Center
Abu Dhabi (SCAD), Emirati women workforce
grew by 24.6% between 2005 and 2008. They
make about 26 percent of the national labor
force. Women’s participation in the workforce
will continue to grow. Even though more
women prefer working in the public sector,
major indications show women’s share in the
private sector has been gradually increasing
due to the supportive strategies of the federal
Why UAE ?
and local governments. In order to encourage
the engagement of women in the private
sector, the policies implemented in work
environments are designed to be suitable
to their nature such as the maternity law.
Successful and hardworking women reached
greater heights in the UAE. Today, women
in the UAE are teachers, engineers, lawyers,
businesswomen, and even ministers. The equal
opportunities given to both genders by the
religion and implemented by the government
along with the women’s ambitions were the
main drivers of the obvious females’ successes
as perceived over all sectors and positions.
30
Chapter 1
responsibilities of both the federal government
and the local emirates’ governments.
The UAE: A Unique Model
of Integration
The evident success of the unity model of
the UAE has not only been a result of shortterm interests or wealth-related factors. On the
contrary, it has been a result of deeply rooted
historical ties between the different parts
of the region, the great economic similarities
and correlations as well as the close relations
between the different tribes living in the area.
In fact, many of the ruling families and key
tribes in then seven emirates are close relatives,
such as the ruling families of Abu Dhabi and
Dubai, (the comma used here is called a
serial comma and its use is essential to avoid
misunderstanding) and the ruling families of
Ras Al Khaimah and Sharjah.
However, the most important factor that
made the UAE one of the most successful
unification examples of the region is the
flexible, pragmatic and well-integrated
nature of governance and distribution of
authorities between the federal government
of the country and the local governments of
the individual member emirates. Since the
inception of the country in 1971, the founding
fathers have understood how a carefullyengineered decentralized union can offer a
great deal of efficiency in using the country’s
resources and can create a highly effective and
far-reaching nation. Therefore, the constitution
of the UAE clearly laid out the authorities and
Why UAE ?
In accordance to the constitution, the
federal government issues the policies and
legislations and retains executive control in
areas that impact the internal and external
sustainability of the country, including defense,
internal security, foreign relations, healthcare
and environmental planning and control,
labor market regulation and management,
telecommunications
and
inter-emirates
transportation, (the comma used here is called
a serial comma and its use is essential to avoid
misunderstanding) and utilities infrastructure.
By this, it assures the achievement of the vision
and objectives set by the constitution.
In order to maintain a unified rhythm to
the development process of the country, the
federal government also maintains legislative
control over major areas of activity, such as
civil and commercial transactions, banking
and monetary system control, protection of
agriculture and animal wealth, criminal law,
procedures of litigation, and intellectual and
industrial property protection.
Apart from the above, the constitution
gave the local governments the right of
controlling the natural resources in its lands,
such as oil and other mines. In addition,
they are responsible for municipal affairs
as well as licensing economic activities in
their territories. By this formula, each local
government will have the flexibility to
effectively plan its economic strategy that
goes in conjunction with that of the overall
federal level vision and plan, and yet to have
its unique, distinctive brand that enriches the
offerings of the whole nation.
The UAE’s Federal
Government: A Formula of
Efficiency and Effectiveness
Looking closely at the structure of the
federal government of the United Arab
Emirates, the model appears to allow for both
fast and effective decision making and sets the
ground for the development of well-planned
people participation. Thanks to the visionary
leadership of the founding fathers and the
wisdom of the current leaders of the country
under the guidance of Sheikh Khalifa Bin
Zayed Al Nahyan, the president of the United
Arab Emirates, that have always managed to
strike a balanced between the preservation
of the culture and traditions and the adapting
of the most internationally-recognized
standards for effective governance and
excellence in all governmental services. The
UAE’s Federal Government is structured into
four different branches that work effectively
yet independently. Those branches are the
Supreme Council, the Cabinet, the Federal
National Council and the Federal Supreme
Court.
The UAE is a presidential, elected system
that has a president, vice president, prime
minister and a cabinet. The president is elected
by the members of the Federal Supreme
Council, which includes the rulers of the seven
emirates constituting the federation. The
election of the president takes place every five
years. Currently, His Highness Sheikh Khalifa
bin Zayed Al Nahyan, the ruler of Abu Dhabi,
is the President of the Federation.
The Federal Supreme Council is the forum in
which general policy for the UAE is formulated
and by which all legislations, being Federal
Laws or other key federal decisions, are finally
ratified before being issued by the president.
It meets periodically to set the stage for the
future milestones of the federation and agree
on critical matters related to policies and
strategies. The council is also responsible for
the appointment of the Supreme Court judges.
31
32
Chapter 1
of action on that regard. Membership of the
council is distributed fairly and evenly between
representatives of the seven member emirates.
All laws and decrees are issued by the
president. The cabinet is the main executive
authority of the federation. It is headed by
a prime minister appointed by the president.
Currently, the vice president and prime
minister of the UAE is His Highness Sheikh
Mohammed bin Rashid Al Maktoum. Along
with his 22-members cabinet, the prime
minister overlooks the implementation of
the leadership vision for the country and
supervises the performance of the different
federal government bodies. The cabinet’s
responsibilities include budget proposal, of
legislations, driving and implementing federal
level strategies.
In accordance with the enablement strategy
embraced and announced by His Highness
Sheikh Khalifa Bin Zayed Al Nahyan, the
president of the UAE, half of the members of
the Federal National Council (FNC) are to be
elected by 129,274 UAE nationals in the seven
emirates in the next elections to be held in the
24th of September 2011. This will mark another
step towards greater people participation in
shaping the bright future of the country. The
other half of the FNC is appointed by the rulers
of the seven emirates based on experience and
capability.
The legislative part of the UAE’s Federal
Government is represented by the Federal
National Council, a 40-members parliamentary
body that serves as an advisor to the executive
government. The council’s role is critical to the
effective functioning of the government system
as it examines and suggests any amendments to
proposed federal legislations. In addition, it has
the right to question ministers on performance
of their ministries and gives alternative course
The Federal Supreme Court is the fourth
pillar of the Federal Government system. The
UAE’s constitution assures the independence of
the judiciary system. The system consists of the
Federal Supreme Court as well as courts of first
incidence. The president and the five judges of
the Supreme Court are appointed directly by
the federal supreme council of the UAE. (For
more details on the judiciary and legal system
refer to chapter 6 of the book)
Why UAE ?
President of the
United Arab Emirates
The Federal
Supreme Council
Consists of the Rulers
of the Seven Member
of Emirates
Cabinet
Federal National
Council
Consists of the Consists of
Forty Members, Twenty
Members are Elected
Federal
Supreme Court
President and
Four Judges
33
34
Chapter 1
Abu Dhabi
Archeological evidences have demonstrated
that Abu Dhabi has a rich history that has
been built-up since the third millennium B. C.
During that time, Majan Civilization inhabited
the area between Baynounah, a town
located in the west of Abu Dhabi, and Qatar
Basic Information
Translation
Father of Gazelle
Area
67,340 km (Largest in the UAE)
Population
1,826,673 (Largest in the UAE)
Ruler
H.H. Sheikh Khalifa bin Zayed Al Nahayan
borders. Through Majan’s capital and main
port, Umm Al Nar, foreign trade with other
nations emerged. The economy of the region
flourished due to the increased export of the
main product (copper) that was extracted from
Al Hajar Mountains. By the late 16th century,
a very influential Bedouin tribe known as
Bani Yas had moved to the area and made a
settlement off the Arabian Gulf’s coast after
finding great sources of underground fresh
water. More than 20 subsections came out
of Bani Yas tribe one of which is Al Bu Falah
that decided to migrate to the modern area of
Abu Dhabi. A section of Al Bu Falah subsection
known as Al Nahyan Family has been ruling
Abu Dhabi since 1761.
Crown Prince
H.H. Sheikh Mohammed bin Zayed
Al Nahyan
Geographic Location
South Central and Southwest of UAE
Main Towns
Al Ain, Madinat Zayed, Liwa, Al Marfa,
Dalma Island, Al Salaa, and Ghaithy
Main Tourist Attractions
Emirates Palace, Al Ain Museum, Sir Bani
Yas Island, Hafeet Mountain, Western Zone
Sand Dunes, Dalma Islands, Marina Mall
Ports
Abu Dhabi International Airport, Al Ain
International Airport, Zayed Port,
Al Bateen Executive Airport, Khalifa Port
GDP Contribution
USD 162.39 billion (60%)
(At current prices, 2009 estimates)
Average Monthly Household Income
USD 12,839 (Nationals)
USD 4,133 (Expatriates)
Average Monthly Household Expenditure
Official Website
www.abudhabi.ae
Why UAE ?
During the 19th and early 20th centuries,
the Emirate had been successfully developing
its economy by depending on pearling industry,
camels herding, fishing, and dates production.
However, the situation started to harden
when cultured pearls invaded the globe in
the late 1890s. Throughout the following
years, the residents of the emirate had faced
a lot of difficulties finding alternative sources
of cash earnings. By the British’s withdrawal
and the discovery of oil, the emirate began
its unprecedented growth era, driven by the
vision of the new ruler, Sheikh Zayed bin Sultan
Al Nahayan. Abu Dhabi started exporting oil
on 1962 and the Sheikh used the revenues to
fund the infrastructure projects.
Even though Abu Dhabi city is technically
an island, located less than 250 meters from
the mainland, it is connected to the mainland
by Maqta and Mussafah bridges and to other
islands by motorways-bridges as shown in the
illustration.
Being the capital of the country, Abu
Dhabi today is the home of the main offices
of the federal government as well as the
Remarkable Achievements
headquarters of many financial institutions
and leading organizations. Due to its ongoing
development and uprising urbanization, the
emirate has grown to be a multicultural city and
transformed to become the country’s centre of
political and economical activities. Currently,
Abu Dhabi produces 2.7 million barrels of oil
per day, positioning itself internationally as
one of the world’s largest producers. Despite
this fact, it has been putting forward steps
in the global non-oil sector through strategic
investments in financial services, tourism,
telecommunication, and real estate sectors.
According to Fortune magazine and CNN news
press, Abu Dhabi was the richest and 50th
most expensive city in the world in 2010.
The first Arab capital to host the headquarters of a United Nations specialized
agency – IRENA
One of the world’s richest cities
The world’s top-most in per capita GDP
The first capital in the world to be fully connected with fiber network
The location of the world’s first zero-carbon city – Masdar
35
36
Chapter 1
Dubai
Although little known about the ancient
history of Dubai, archeological traces that
were found on Al Qusais area, a suburb in
Dubai, show that the history of the city could
go back as far as 3000 years ago, linking it to
Basic Information
Translation
Baby Locusts
Area
4,114 km (2nd Largest in the UAE)
Population
1,770,978 (2nd Largest in the UAE)
Ruler
H.H. Sheikh Mohammed bin Rashid
Al Maktoum
Crown Prince
H.H. Sheikh Hamdan bin Mohammed
Al Maktoum
the mysterious Bronze Age Majan civilization.
During that time, the main trading exchange
depended on the export of copper extracted
from Al Hajar Mountains and pearls obtained
from Dubai Creek. Other excavations found on
Jumeirah, another suburb of Dubai, revealed a
6th-century A.D. caravan station, proving that
people kept trade routes well maintained.
In 1833, a dynasty of Bani Yas tribe known
as “Al-Maktoum” migrated from Abu Dhabi
to Dubai and settled down around Dubai’s
creek. Since then, Al Maktoum family has
been ruling Dubai. It has been a great gear
toward establishing Dubai as an important
business and leisure hub in the world. With
foresighted vision and supporting policies,
the founding father of modern Dubai, Sheikh
Rashid bin Saeed Al Maktoum, efficiently
Geographic Location
North Eastern of the UAE
Southwest of the Arabian Gulf
Main Towns
Bur Dubai, Deira, Al Awir, Al Hebab, Al
Madam, Hatta
The Dubai Creek, Dubai Museum, The
Historical Bastakiya, Hajar Mountains,
Sheikh Saeed’s House, Jumeirah Mosque,
Jumeirah Beach, Burj Khalifa, Bait Al
Wakeel, The Souks, and Burj Nahar
Ports
Dubai International Airport
Al Maktoum International Airport
Port Rashid, Jebel Ali Port
GDP Contribution
USD 80.09 billion (29.6%)
Official Website
www.dubai.ae
Why UAE ?
drove the development wheel and took Dubai
to the next level. In 1971, His Highness along
with Sheikh Zayed began the initial steps of
forming the federation.
By the 20th century, due to its strategically
located port, Deira, a major town in Dubai,
became the most important commercial city
on the coat of the Arabian Gulf. Merchants
from around the globe began coming in large
numbers and its economy was booming. The
emirate depended mainly like other emirates
on pearling industry that had collapsed in 1929
because of introduction of the artificial pearls.
The discovery of oil in 1966, however, had saved
the emirate from the depression and Sheikh
Rashid worked immediately into developing
infrastructures of schools, hospitals, roads,
ports, communications and transportations
networks, preparing Dubai to have one of the
most modern business environments in the
world.
Dubai is known of its cultural diversity and
welcoming people. Its shinning sun during the
whole year, mysterious desert, and wonderful
clean beaches, coupled with its luxurious
hotels and malls, historical architectures, and
prosperous businesses welcome millions of
tourists and business seekers from all over the
world each year.
Even though Dubai is distinguished by
its desert surface in the south, wonderful
vast sands dunes provide astonishing views
for visitors. The flat sandy desert gives way
to the Western Hajar Mountains, which run
alongside Dubai’s border with Oman at Hatta.
Characterized by its shallow waters and many
coral reefs, Dubai’s territorial water has been a
rich source of pearls and fish.
Where the world’s tallest building is located – Burj Khalifa
Among the top ten destinations cities in the world for business tourism with
7.9 million visitors in 2010
The builder of the world’s largest man-made island – Palm Jumeirah
The emirate that has the world’s largest man-made harbor – Jebel Ali Port
The host of the world’s largest shopping mall – The Dubai Mall
37
38
Chapter 1
Sharjah
Sharjah is a distinguished oasis off the
Arabian Coast that combines between the
nobility of the past and the pride of the
present by refined blending between the old
and the new in a unique contemporary style.
It is rich in many historical monuments that
are considered as a witness, demonstrating
the ancient city’s deep-rooted heritage. As
a reward for maintaining its unique genuine
traditions, the emirate was awarded as the
Cultural Capital of the Arab World by UNESCO
in 1998.
Basic Information
Translation
The Shinning State
Area
2,590 km (3rd largest in the UAE)
Population
882,000 (3rd largest in the UAE)
Ruler
H.H. Sheikh Sultan bin Mohammed
Al Qasimi
Crown Prince
H.H. Sheikh Sultan bin Mohammed bin
Sulthan Al Qasimi
Geographic Location
North of the UAE ,
between Ajman and Dubai
Main Towns
Sharjah City, Al Dhaid, Khor Fakkan,
Kalba, Dibba Al-Hisn, Islands of Abu
Mousa & Sir Abu Nuair
Al Qasbaa, Arabian Wildlife Centre,
Sharjah Art Museum, Expo Centre,
The Planetarium, & Sharjah Aquarium
Ports
Sharjah International Airport,
Port Khalid, & Hamriya Port
GDP Contribution
Official Website
www.sharjah.gov.ae
Why UAE ?
As a result of being an important
transportation point that connects Asia to
Africa and Europe for over 5000 years and as the
only emirate to have both exits on the Arabian
Gulf and Oman Gulf, Sharjah developed to
be one of the most prosperous towns in the
region for thousands years. In order to control
the most essential trading route in the history,
several dominating powers attempted to
conquer the area. The Portuguese during
the 17th century, and British during the 18th
century succeeded somehow to control a
part of the region but the Dutch failed. With
the coming of the ruling family “Al Qasimi”
tribe in 1727 that established the emirate as
an independent Sheikhdom, succeeded to
liberate the emirate. Since then, the emirate
made moves ahead toward modernization by
establishing the first school in the UAE in 1903
and the first journal in 1927. It also built the
first airport in the region in 1932. Following
the steps of its neighboring emirates, Sharjah
was the third to join the united federation
since its establishment on December 2, 1971.
The production of oil in 1972 with the previously
developed infrastructures was behind the
early business success of the emirate.
Even though the desert environment
dominates most of the countries in the region,
Sharjah features vegetarian seasonal cover in
addition to the many types of trees that are
considered safe haven for a large number of
animals. Sharjah has important oasis areas, the
most famous of which is Dhaid where a wide
range of vegetables and fruits is cultivated on
its rich and fertile soil. In addition, Sharjah has
several unique islands: Abu Mousa and Sir Abu
Nu’ayr located on the Arabian Gulf. Coastal
and marine environment also provide a great
variety of fish and marine animals that are
endemic in this environment.
A significant regional cultural hub, was chosen as the Arab cultural capital for 1998
The host of one of the most notable art exhibitions in the region - Sharjah biennial
The host of one of the top universities of the region - The American University of Sharjah
A manufacturing hub of the UAE, represents 48% of the UAE’s industrial production
39
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Chapter 1
Ajman
Ajman has an ancient history that goes back
to thousands years ago and a bright future that
is looking to pursuit to achieve more progress
toward modernization. Due to its strategic
location between the emirates of Sharjah and
Umm Al Quwain and to its closeness to Dubai,
Ajman has been witnessing an unprecedented
Basic Information
Translation
The Name is Related to an Ancient Tribe
Inhibited the Area
Area
259 km (7th largest in the UAE)
Population
224,000 (4th largest in the UAE)
Ruler
H.H. Sheikh Humaid bin Rashid
Al Nuaimi
Crown Prince
H.H. Sheikh Ammar bin Humaid
Al Nuaimi
Geographic Location
Northwest of the UAE
Main Towns
Ajman city, Masfut, Al Manama
Ajman Museum, Dhow Yard, Mowaihat,
and the Souks
Ports
Ajman Port
GDP Contribution
USD 3.78 billion(1.4%)
(at current prices, 2009 estimates)
Average Income
Average Expenditure
Official Website
www.ajman.ae
Why UAE ?
industrial, commercial, and architectural
growth. Major infrastructure projects have
been developed. With increasing ship
movements and trading activity through
Ajman port, that contains the largest ships
maintenance site in the world, the emirate is
defiantly heading to a growth over all sectors.
For these reasons and for the increasing
population of the neighboring emirates,
Ajman port, that contains the largest ships
maintenance site in the world, the emirate is
defiantly heading to a growth over all sectors.
For these reasons and for the increasing
population of the neighboring emirates,
Ajman’s population has been largely growing
for the last five years, demanding more
construction projects.
UAE was formed, of which Ajman was a founder.
Since then, the emirate’s leadership has been
putting forward steps toward developing
people’s life standards by implementing
major infrastructure plans and developing
commercial and touristic mega projects.
As the whole region’s history, Ajman’s
history goes back to the civilization of Majan
times, 5000 years ago. Throughout the ages,
people who lived in the region depended
mainly on fishing, herding, and cultivation.
The capital city, Ajman, preserves much of its
ancient history, and traces of the old town are
still visible. In 1803, the current ruling family
settled down in the area and established
Ajman as an autonomous state.
Ajman is the smallest emirate in the UAE
in terms of area. It is geographically located
on the coast of the Arabian Gulf; its coast
extends for 16 km. The emirate is comprised
of Ajman city and the towns of Masfut and
Al Manamah. Most of the population resides
in Ajman city, between the land protruding
between the Gulf and the creek. As for Masfut
and Al Manama, they are located on the east
side of the country and a small portion of the
emirate’s population lives there. These towns
are
environmentally-distinguished.
Their
mountains are rich in magnesium, chrome and
lime stones and their fertile valleys produce a
variety of crops each year.
Ajman was among the four emirates that
signed the General Treaty of Peace with the
British on January 8th, 1820. On 2 December
1971 after the withdrawal of the British, the
The host of globally recognized players in the ship and boat manufacturing industry
The host of one of the first and biggest private universities networks in the GCC region
41
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Chapter 1
Ras Al-Khaimah (RAK)
Ras Al Khaimah (RAK) has been an
incubation of several civilizations and a
settlement for human inhabitation for
more than 5000 years, as the archeological
evidences in the national museum of the
emirate demonstrate. Remnants of a major
Basic Information
Translation
The Top of the Tent
Area
2,478 km (4th largest in the UAE)
Population
Ruler
H.H. Sheikh Saud bin Saqr Al Qasimi
Crown Prince
H.H. Sheikh Mohammed bin Saud
Al Qasimi
Geographic Location
North of UAE
Main Towns
Old Ras Al Khaimah, Nakheel, and Jazirat
Al Hamra
The National Museum of Ras AlKhaimah,
Sheeba’s Palace, Dhaya Fort, Al Falaya,
Jazirat Al Hamra, the Old City, & Souqs
Ports
Ras Al Khaimah International Airport
GDP Contribution
Average Income
Average Expenditure
Official Website
www.rak.ae
Why UAE ?
civilization that inhabited the region, which
was the Umm Al Nar civilization that emerged
in the third millennium, were found on
different parts of RAK. The civilization had a
great impact on toward the development of
the emirate since there are strong evidences
proving the foreign trade with Mesopotamia
and Persia. During this period, RAK became
a very wealthy town that depended on the
export of high quality pottery. The emirate
then was known as Julfar and had played a
very important and patriotic role as a defense
stage of the country through its castles and
forts. Thus, today it is famous of its historical
ancient monuments that are linked to many
events in the region. The emirate has also
taken a strategic part for being a commercial
and economic role point during the Islamic
period on 630 A.D.. Through its extensive
trade network, RAK traders participated
greatly on the spread of Islam. In the early 18th
century, the Emirate’s ruling family tribe, Al
Qawasim, had settled in Ras Al Khaimah and
established it as an independent Sheikhdom.
On 11 February 1972, Ras Al Khaimah was the
last emirate to join the United Arab Emirates
federation.
RAK is located at the end of the northern
territory of the UAE. It has a strategic
geographical location, being the entry gate of
the Arabian Gulf, neighboring three emirates
Sharjah, Fujairah, and Um Al Qaiwain, and
bordering the Sultanate of Oman. The emirate
has also a variety of terrains from low sand
plains that are connected to the Gulf from
the west, and a chain of mountains that go
along the Gulf from the northern part to the
southern. It has also a number of valleys and
Sulphuric water sources like Ain Khat.
When RAK decided to join the federation, it
sat its vision into becoming a major industrial
producer. Toward implementing its economic
pillars, RAK built the first cement company in
the UAE in the early 1970s and today after a
long consistent hardworking coupled with
Sheikhs’ support and intelligence, it became
the largest cement producer regionally. It
has as well established the world’s largest
ceramics producer and became a leader in
pharmaceutical industries.
The First and Largest Cement Producer in the UAE
The World’s Largest Ceramics Producer
The Region’s First Pharmaceuticals Producer
43
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Chapter 1
Umm Al Quwain
Umm Al Quwain is the most ancient
emirate in the country. Archeological traces
show strong evidences of the emirate’s
relations with Mesopotamia that existed
during the 3rd millennium B.C. Seminomadic tribes settled down in the region
Basic Information
Translation
Mother of Two Powers
Area
777 km (6th largest in the UAE)
Population
and began copper trade during, 3000 B.C.
The metal was sent to all prominent ports on
the Gulf, Umm Al Nar was one of them, and
exported mainly to Mesopotamia. Not only had
the copper trade flourished during the Bronze
Age but also agriculture and pottery. AlDour, the largest pre-Islamic site in the region
that was located in Umm Al Quwain, was an
important port used by several civilizations.
In order to defend itself against any foreign
attacks, the emirate started building its forts
and castles. The emirate was also known as the
haven for Arab ships that escaped the foreign
attacks.
Ruler
H.H. Sheikh Saud bin Rashid Al Mu’alla
Crown Prince
H.H. Sheikh Rashid bin Saud Al Mu’alla
Geographic Location
North of UAE, between Ajman and Ras
Al Khaimah
Main Towns
Umm Al Quwain, and Falaj Al Mu’alla
Umm Al Quwain Fort, Islands of
Umm Al Quwain, Al-Dour, Old Harbor
Dreamland Aqua Park
Ports
Umm Al Quwain Port
Umm Al Quwain Airport
GDP Contribution
Average Income
Average Expenditure
Official Website
www.uaqcci.com
Why UAE ?
However, the modern history of the
emirate began when Al Ali tribe moved due
to limited water sources from Al-Sinniya Island
and established an independent Sheikhdom
in Umm Al Quwain. The current ruling family
is a dynasty of Al Ali tribe. Similar to other
emirates, Umm Al Quwain signed the General
Maritime Treaty with the British in 1820.
Because of its distinguished location on the
route to India, the United Kingdom’s province
at that time, the emirate’s import and export
trade thrived. On December 2nd, 1971, the
emirate joined the United Arab Emirates union.
Since then, the emirate made effective efforts
to provide a decent life for the people of Umm
Al Quwain. By focusing on industrializing
the emirate by attracting foreign capital to
provide all possible facilities, the emirate
has been witnessing a comprehensive revival
resembled by the impressive achievements
culturally, socially, and economically.
Umm Al Quwain enjoys great touristic
elements which include the availability of
different facilities, beautiful beaches, various
archeological sites, and distinguished islands.
The emirate is technically positioned between
two creeks: Khor Al-Baida and Khor Umm Al
Quwain and is divided into two parts the first
part is salty which is adjacent to the coast,
while the other part is sandy. Despite its small
size, its islands: Al Sinniya, Jazirat Al Ghalla,
Al Keabe, Al Sow, Al Qaram, Al Humaidi, Al
Chewria and Al Harmala make a great portion
of its area. Al Sinniya is about 90 km2 and
blessed by several environmental privileges.
It contains the third largest colony of Socotra
Cormorant in the world, ubiquitous green
turtles, remarkable black tip reef sharks, and
archeological sites that date back to the
beginning of Islam in 630 A.D. Between the
island and the mainland runs Khor Al-Beida,
an extensive area of sand and mud.
The host of the world’s largest Aqua park – Dreamland
45
46
Chapter 1
Fujairah
Fujairah’s historical importance goes back
to 3000 B.C. when the area was inhibited by
herders and fishermen. It was then named as
the Land of Titans “Ard Al Jababerah”. It was
the home for people who were migrating
from the southeastern part of the Arabian
Basic Information
Translation
The Name Derived from a Spring of Water
that comes Underneath a Mountain
Area
1,450 km (5th largest in the UAE)
Population
Ruler
H.H. Sheikh Hamad bin Mohammed
Al Sharqi
Crown Prince
H.H. Sheikh Mohammed bin Hamad
Al Sharqi
Peninsula, which was later known as
Phoenicians. Throughout the ages, the area
had been a matter of dispute among several
local dominating powers because of its
strategic location. The ruling family descended
from tribes which migrated from Yemen after
the collapse of the Marib Dam. It settled down
in the region on 1808, and established Fujairah
as an independent state. During that time, the
settlement and development evolved around
Fujairah’s fort which was built on 1500 and
used as a defense stage against any attack.
Since then, the emirate has been enjoying
a state of peace and began to focus on its
development. It was the last state to join the
Trucial States after the singing the General
Maritime Treaty with the British in 1902. On
2 December 1971, Fujairah joined the United
Arab Emirates. The ruling family has been the
driving force behind the commercialization of
the emirate’s economy.
Geographic Location
East of UAE
Main Towns
Fujairah City, Dibba Fujairah, Masafi, Al
Bedieh, Gidffa, and Al Bathna
Fujairah Fort, Fujairah Museum
The Heritage Village
Ports
Fujairah International Airport
Fujairah Port
GDP Contribution
Average Income
Average Expenditure
Official Website
www.fujairah.ae
Why UAE ?
Fujairah is distinguished from the other
emirates in several aspects. It is the only
emirate located entirely on the Gulf of
Oman while others are on the Arabian Gulf.
Its astonishing beach extends for about
70 km2 Fujairah does not have a desert
like Dubai and Abu Dhabi and it is mostly
mountainous, covered by Al Hajar Mountains
that separate the emirate from the rest of
the country. The high percentage of rainfall
comparing to other emirate allows the farmers
to grow more crops each year. Due to its sunny
beaches, and pleasant weather, the emirate
is one of the most convenient places in the
world for water sports like swimming, sailing,
water skiing, and fishing; thus, it was given
the name “the Jewel of the Middle East”.
The business-friendly procedures and the
excellent infrastructures had played key-roles
to support investors in order to build, develop
and diversify business activities.
The emirate’s economy depends on cement,
stone crushing, and mining industries. The
establishment of the newly free zone has
moved the economy and created a vibrant
business environment in Fujairah. Its
outstanding geographic location gave an ease
of communication with the major shipping
ports in the world. More than 40 giant oilvessels pass the port. The port is also one of
the most important livestock shipping ports in
the world, where the largest cattle station in
the Arabian Peninsula was created.
One of the world’s top three Bunkering Destinations
47
Chapter 2
Why UAE?
The Layers of Uniqueness
“
Its appeal does not only come from its strategic
location at the heart of the emerging world nor from its
unrivaled business-readiness. It’s an effect of a wellblended, hard-to-resist combination of unique layer
that makes the UAE the ultimate base for businesses
and ventures that are ‘built to last’
“
50
Chapter 2
T
he late years of the first decade and the
first two years of the second decade of
the 21st century has brought about a new realm
that changed the way business is done around
the world. Subsequent to a global economic
downturn that has not been witnessed for just
under a century, a larger number of nations are
competing to attract capital that has become
more risk averse and selective. Drastic changes
have taken place in the way international
investors think and make investment choices
and decisions. Investors, whether individual
or institutional, are now highly cautious when
selecting a country or a market to invest in. In
addition, the level of awareness in the global
investor circle is highly increasing due to easy
access to information and the accumulation of
experience during boom time, raising the level
of cautiousness among those investors.
Along with those significant changes
in investors’ behavior, there has been an
increasing level of competition among the
world’s developed and emerging nations to
attract a greater share of the global flow of
foreign direct investments and to increase their
nations’ competitiveness in international trade.
To achieve those objectives, countries come
up with various polices to encourage Foreign
Direct Investment (FDI) inflow including
investment incentives, investment-friendly
legislations and different forms of investment
promotion activities. This competition has led
to a further level of complexity in the process
of making the right investment decision due to
the increased choices for investors and traders
wishing to enter a specific geographic region
or to seize certain economic benefits and to
the perceived similarity in the offerings and
benefits presented by each nation or region.
Why UAE ?
At the center of all trade and investment
promotion efforts of any country is coming
up with a unique “value proposition” that
translates the specific features and elements
offered by the nation into tangible benefits
for potential investors and trade partners. This
differentiated value proposition is what helps
to answer the question “Why invest in this
specific country or region?” For the UAE, the
answer for the question “Why UAE?” would
be summed up in two words: “uniqueness”
and “partnership”. The nation continues to
promise investors a fruitful partnership that
will help them realize potential and growth
through the different economic cycles using
all the innovation, resources and capabilities
required to do so. What is good for business
is always the best for the UAE and the trust
and growth for investors and businessmen is
an
integral
objective in
the nation’s
strategy.
th
w
o
r
to G
ay
w
irit
e
t
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S
G
A
an d
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g
n
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i
An Insp
tion
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o
S
”
d Play
n
a
g
u
l
A “P
Trust
f
o
e
t
a
m
i
l
AC
A True Knowledge Economy
A Recognized Global Brand
51
52
Chapter 2
way
e
t
a
AG
owth
to Gr
ion
Reg
g
n
i
v
Thri
to a
y
a
my
ew
cono
A Gat
E
e
h
nt
ence i
Confid
bility
is of Sta
An Oas
Policy
Open Door
A Gateway to Growth
A Gateway to a Thriving Region
Throughout its ancient and modern history,
The UAE has been able to successfully and
effectively exploit its ideal geo-strategic
location at the crossroads of Asia, the Middle
East, Africa and Europe to connect buyers with
merchants and suppliers across the different
sectors and then to quickly and conveniently
deliver goods to the vast and expanding
consumer markets. As such, the country’s
location allowed it to become the de-facto
and most important business hub not only for
Gulf region, but also for Europe, Middle East,
South West Asia, Africa, and Russia and even
the Caucasus and Central Asian States.
It is important to note that a potential
market of more than two billion people live
within four hours traveling time from the UAE,
which makes it the ultimate base for export
and re-export activities as well as service
providing for companies that seek to exploit
this favorable demographics advantage. The
good news is that the population growth
trend that this region is witnessing is expected
to continue for years to come. This will mean
an increase not only to the number of young
consumers of products and services, but to the
pool of talents that companies, based on the
UAE, can access as employees and knowledge
workers.
In the last decade, the region surrounding
Why UAE ?
the UAE, including the Middle East, North
Africa and South Asia, have been witnessing
an unprecedented economic renaissance.
Aided by a growing hydrocarbons price, a
booming demographic growth trend and huge
investments in infrastructure, the economy of
the region is soaring compared to many other
developed economic blocks. Even at the peak
of the Global Financial Crisis in 2008-2009, the
region maintained a positive growth trend
of 1.9% according to the World Bank. Soon,
the region rebounded and recovered quickly
from the effects of the global downturn to
have a combined growth rate of 4.4% in 2010.
Countries across the region are opening up
its economies and creating real opportunities
for investors, service providers, financial
institutions and goods exporters from around
the world to tap into their rapid expansions
and growing demand potential.
The strategic location was actually
complimented with a matrix of infrastructure
developments, logistics facilities and flexible
exporting regulations. Billions of dollars have
been invested, in recent years, to develop the
warehousing and transportation infrastructure
in major cities with the construction of new
projects such as Khalifa Port and Industrial
Zone, Dubai Logistics City and Al Maktoum
International Airport as well as the expansion
to current developments such as Jebel Ali
Port, Dubai Cargo Village and Zayed Port.
ground and back office services due to the
volume of cargo.
With its welcoming nature and easy access
from around the globe, the UAE has also
developed a proven ability to bring together
buyers and sellers from different parts of
the world. Combined with the country’s
enrollment in a wide range of bilateral trade
agreements and economic blocs, the UAE has
become a favorite choice for traders looking
to penetrate certain regional markets or to
launch regional distribution operations.
These investments will ensure that sufficient
capacity exists in order to continue the high
growth trajectory.
Most of these projects were actually
designed to provide a close proximity between
a company’s warehouse and the transportation
port. The Al Maktoum International Airport,
for example, is at the skirts of Jebel Ali
Free Zone, Jebel Ali Industrial Area, Dubai
Investment Park and Dubai Industrial City
to name a few. In addition, it’s been a
national norm to provide mega projects with
connectivity between sea and air transport
allowing for goods to be transferred from the
former to the latter in less than one hour.
Operation wise, the country has a strong
base of regional and international logistics
companies that can transport all types of goods
in a cost effective manner, complimented
with dedicated warehousing areas for all
types of products as well as consolidated
The UAE’s neutral and balanced regional
and international relations have been one
of the most enabler for the country to
attain this distinguished regional economic
status. The UAE is an active member in the
Gulf Cooperation Council (GCC), enabling
companies registered within its jurisdiction to
benefit from the customs union and the gulf
common market that allow export of goods
and opening of branches of companies in
different GCC states with no restrictions or
customs duties. The UAE have also signed a
significant number of treaties to avoid double
taxation and to protect investments within
a number of countries around the world. In
simple terms, this means enabling companies
and investors who choose the UAE to explore
the opportunities around them with an
advantageous position.
One of the reasons why companies decide
on the UAE for regional distribution of both
locally produced and imported good is in
fact the absence of direct taxes on corporate
profits or personal income along with the
minimal customs duties on imports of 5%.
Full repatriation of capital and profits is
also permitted, with no controls on foreign
exchange.
Consultants, service providers, contractors
and expert houses have been also taking
the advance of the UAE’s flexible and
internationally-benchmarked
regulatory
environment, lavish business amenities,
facilities and ultra-modern lifestyle to use it
as their base for their operations across the
region. The ability to fly to the destination
of interest, get business done and come back
most of the time in the same day is one of the
pros that set the country aside from the rest
of the region.
53
54
Chapter 2
Confidence in the Economy
Because the UAE economy was structured in
a healthy manner, it boosts further confidence
from various stakeholders both inside and
outside the country. In addition, the country’s
economy was able to quickly emerge stronger
from the aftermaths of the Global Financial
Crisis in 2008-2009 due to its solid pillars and
strong foundation.
The head of Middle East and North Africa
Department at the International Monetary
Fund (IMF) has declared in August 2011 that the
UAE economy has been steadily performing
positively and has continued to attract
foreign direct investments. According to IMF,
this is only a reflection of the international
confidence in the Emirati economy.
Moreover, the embedded nature of
diversity is another factor that increases the
levels of confidence in the country’s economy.
The government’s policy has been to widen
the diverse base of the economy and push
to increase the contribution of the non-oil
sectors to the national GDP. In fact, there
are two boosting players here. The high oilbased income provides a guarantee against
market turbulences in many aspects, while the
diversification builds up the trust of foreign
and local investors in the national economy
as it provides them with lucrative and stable
opportunities to thrive in.
The continuous influx of foreign direct
investment is another sign of the level of trust
in the UAE’s national economy. In August 2011,
First Capital Bank of Switzerland announced
the launch of a fund with a capital of USD 500
million for health services covering hospitals
and labs in the United Arab Emirates. Another
fund with a capital of USD 500 million was to
be established in the precious metals trade.
Why UAE ?
The two funds were scheduled to begin
operations in the final quarter of 2011 and
are just two examples reflecting the interest
of international financial institutions in taking
part in the success story of the UAE economy.
It is not strange here to recall the fact that in
2008, the UAE, represented by the emirate
of Dubai, was the top global destination for
foreign direct investments, attracting more
than USD 21 billion of investment capitals to
its rich base of projects and opportunities.
It is also important to notice here the
significance of the UAE government’s move
towards stimulating small and medium sized
enterprises (SME’s). These projects serve the
national economy and create jobs for young
citizens. Representing around 60% of the
total number of enterprises in the economy,
the growth and healthiness of this sector will
revive the market and solve any potential
liquidity issues. It will also help in diversifying
the sources of national income and stimulating
entrepreneurship that’s the guarantor for the
continuous pulse of change in the UAE.
Of particular interest here is the real
estate sector, which is currently witnessing a
renewed interest by foreign investors. Despite
all the negative hype, the UAE’s real estate
sector did not experience the same extent of
downturn seen in other countries. Real estate
regulations in Dubai and the other emirates
have given investors confidence to return as
the government took speedy measures to
save the sector from the adverse effects of
the global credit crunch. Local and foreign
banks were encouraged to lend and were
given the right guarantees. In additions, new
development and investment opportunities
are emerging in different parts of the country
with end user demand and vast potential for
growth, including the western region of Abu
Dhabi, Umm Al Quwain and other parts of the
country. This promises a new dawn for this
sector that has for long shaped a main pillar of
confidence in the national economy.
Consumer confidence is also gearing up.
A recent report by the The Nielsen Company
shows the UAE as one of the countries on the
world’s top-10 consumer confidence list in the
first half of 2011 moving up 12 ranks from the
year before.
55
56
Chapter 2
An Oasis of Stability
The UAE has successfully maintained a
stable political scene even in the middle of a
turbulent region. Thanks to its modest policy
and wise leadership, the country managed to
stay away from the various cases of political
turmoil in the region surrounding it. Instead,
the UAE’s positive politics and neutral position
have always enabled its business sector to play
a savior role in the peace building process in
each of the war-torn countries. The UAE is
now one of the largest donors to developing
countries across the world and is
also a big contributor to UN peace
keeping operations in various areas.
The Federal National Council, which represents
the country parliament, is now half elected
by an electoral college and is playing an
increasingly important role in the assisting the
executive branch to further boost the national
aspirations. This is happening in parallel lines
with what is called ‘popular majlis democracy’
or open-door policy, which enables national
citizens to communicate directly and openly
with both the rulers and government
executives and which has been in effect for
decades in this part of the world.
To a certain extent, the majlis democracy has
been also functional for expats who can meet
with senior sheikhs and government executives
without prolonged bureaucratic procedures
when they wish to make suggestions or
At the federal level, the country’s
clear political system coupled with a
systematic decision making process
and the right diversified economic
model have allowed the federal
government to function efficiently
to serve the society while building
a sustainable growth model that is
self dependant and less affected by
regional turbulences.
Local governments in each of the
seven emirates have also applied a
similar model that keeps the local
scene least affected by foreign factors, while
maintaining a stable relationship with the
public. The tribal system has positively played
an essential role in building and enhancing the
mutual trust between national citizens and
the ruling families.
Modernization of the political life has
been steadily taking place since the formation
of the UAE as an independent state in 1971.
Calculated and well-planned steps are being
put in action to avoid sudden and unbalanced
jumps that may lead to unwanted results.
Why UAE ?
discuss government decisions affecting their
businesses.
As a result of political stability, the UAE is
one of the safest countries in the world with
powerful security systems and a very low crime
rate. Mugging and street crimes are reportedly
of the lowest rates in the world. In addition,
the cultural and religious tolerance that is
widely applied, encouraged and promoted
across the country has effectively minimized
any possibility of ethnic or religious tension
between the various components of the UAE
expat community. Many enterprises in the
UAE have successfully utilized this peaceful
harmony to build multicultural teams and
harness its benefits in exclusive sales to various
demographics.
Open Door Policy
If one country in the Middle East is to be
described as the sole free trade nation in
the region, that would be the United Arab
Emirates and that’s for valid reasons. This is
evidenced by the country’s tax-free status,
world-class infrastructure, low tariffs and 100
per cent ownership for foreign investors in free
zones, making it the ideal location for setting
up new businesses. UAE is also appealing to
investors thanks to its world-class free zones,
100% repatriation of capital and profits, and
being in close geographic proximity to the top
European and Asian markets.
In fact, while the UAE follows global best
practices and creates a conducive environment
for businesses to operate, and presents ample
opportunities for both investors from the
region and around the world, the government
encourages the private sector in a free trade
regime with low tariff barriers and minimum
legal hurdles.
At the political level, the UAE, a member
of the World Trade Organization (WTO) since
1996, supports open trade and has stable trade
relations with countries throughout the world.
Thanks to its open economy, attractive business
environment and continued economic growth,
the UAE has emerged as a key international
trading hub between East and West. The WTO
has named it the leading Arab economy in
terms of global trade and one of the top 30
nations in the world. The UAE Government’s
free-market policy and flexible economic and
commercial laws are the prime factors in the
country’s rise as a regional and global leader.
In terms of imports and exports, the
country applies a liberal trade regime with
tariffs based on the GCC tariff structure.
Customs procedures are largely computerized
to facilitate trade, which in the case of several
emirates includes a large re-export industry.
No federal income tax legislation is imposed
for general business. Each emirate has enacted
income tax decrees, but in practice, the
enforcement is restricted to foreign banks and
oil companies. Personal incomes, including
all forms of salary and capital gains, are not
subject to taxation in any emirates. Expats
and foreign travelers are free to move money
legally with only a few limitations concerning
travelling with large amounts of cash money.
While the law guarantees free exchange
of good, it also maintains minimal lists of
prohibited and restricted imports. UAE’s
trading with the USA would be a good example
of how functional this liberal economy is.
According to US official numbers, the UAE is
currently America’s 41st largest goods trading
partner with US12.8 billion in total (two way)
goods trade during 2010. Goods exports
totaled USD 11.6 billion; Goods imports totaled
USD 1.1 billion. The U.S. goods trade surplus
with United Arab Emirates was $10.5 billion
in 2010. The five largest import categories
in 2009 were: Special Aluminum (USD 195
million), and Iron and Steel Products (USD 148
million), Mineral Fuel and Oil (crude) (USD
79 million), and Precious Stones (diamonds)
(USD 68 million) and others (returns) (USD 314
million). U.S. imports of agricultural products
from the United Arab Emirates were USD 22
million in 2010.
57
58
Chapter 2
Ent
g
pirin
s
n
I
An
& Spirit
y
t
e
i
c
So
ene
re p r
ursh
ip
ance
Toler
l
a
r
u
t
Cul
ess &
Openn
ture
ness Na
e
v
i
t
i
t
e
Comp
n Business
Creativity i
An Inspiring Society
and Spirit
Entrepreneurship
If the modern UAE could be described
in one word, no doubt it would be
“entrepreneurship”. Ever since the country was
formed in 1971, entrepreneurship has been at
the core of almost every government initiative
to further empower the economy and the
society. Started with a federal policy in the
1970s that encouraged citizens to establish
their own business entities even if they work
for the government to provide the basis for
a modern economy, the rhythm continued
with country-wide initiatives that ease up
on regulatory affairs and business doing
requirements.
Over centuries, Abu Dhabi and the rest
of coastal cities developed a rich tradition of
pearl business and entrepreneurship as the
major source of income that kept this part
of the world alive. The history of Sharjah
and Ras Al Khaimah tells us of a strong
kingdom that controlled both banks of the
Straight of Hermes and regulated trade
While this trend sounds a bit modern, it is in
fact rooted in the history of what is now known
as the UAE. The people of the federation have
inherited from their descendants the spirit of
entrepreneurship that saw them diving for
pearl as far as African shores and changing
their small towns to a regional center for
merchants across the region.
movement through this
strategic marine passage.
A story in the National Geographic
magazine in 1954 described how Dubai with
its 15,000 residents was the centre of trade
exchange for the whole Arabia and beyond.
Merchants and traders from across the region
used to travel to Dubai for business.
In effect, a country with such a rich history
of trading, exploring opportunities and
developing stories of success had emerged
40 years ago to embark on a new journey
towards regional leadership and business
entrepreneurship.
Why UAE ?
internationally
The country is now widely looked at as an
example of an entrepreneurship-promoting
economy with an active social policy that
harnesses entrepreneurship and encourages
both nationals and expats to utilize the
business friendly environment to thrive for
further success.
of Emirati women entering higher education
institutes has outnumbered local men
pursuing higher education degrees. Both
government and private sector organizations
employ national women at various vertical
roles reflect the advanced level played by
women in the UAE’s business scene.
One interesting aspect here is the support
shown to women. The UAE has been at the
forefront of regional efforts to enable women
entry to the entrepreneurship market with
various active initiatives that both empower
women and create opportunities. Number
While
most
countries
limit
their
initiatives to local entrepreneurs, the UAE
has developed many initiatives to provide
lucrative opportunities for expat and foreign
entrepreneurs to start their own success stories
in the land of hard work and good rewards.
59
60
Chapter 2
Openness and Cultural
Tolerance
Although the people of the UAE are not that
big, their combined expertise and the human
interaction they got over ages is realistically
rich and is reflected in the way their modern
society has evolved to a tolerant and culturally
open society.
With around 200 nationalities living and
working in the country; an average UAE
national would have met people from all
cultures; faiths and backgrounds before he
reaches the employment age. This has enabled
national Emiratis over years to develop their
own model of understanding and tolerance.
Their unique ability to accept the other has
been deeply reflected in many legislations
and regulatory procedures that allow for the
expats to feel at home while doing business
and living in the UAE.
Combined with the authentic Bedouin
traditions to welcome and respect strangers
and guests; the country’s national populations
has been known of being expat-friendly; which
allowed for expats to integrate easily within
the multi cultural mix of the UAE without
having to dissolve or dismiss their original
character. Even while doing business; it has
been much easier to start certain exclusive
or ethnic businesses than in other places
because people simply don’t have to give up
who they are in order to integrate here. The
good point is; even though you may start an
ethnic business; it is not necessarily targeted at
that particular ethnic audience. Yuga centers;
ethnic restaurants and spice shops are just
examples.
In addition, the presence of businesses
from around the globe; including many
multinational corporations, has helped
develop an internationally oriented corporate
citizen identity for most of the people in this
Why UAE ?
country; whether nationals or expats. By
that, we refer to the ability to communicate
fluently in business matters with everybody
else; regardless of geographic boundaries. It
is also characterized by maintaining the same
level of business traditions and corporate
culture as Western countries and other
industrial nations.
However, the only effect local traditions
may have here is that, if time is available,
meetings will generally commence with some
polite and friendly conversation, before the
host turns to the topic at hand. This is to be
expected mainly when dealing with Emirati
businessmen, and in certain settings it could be
considered impolite to dismiss this small talk by
going straight to the formal agenda. Showing
appropriate respect for all participants in a
meeting is also considered important, and UAE
Nationals may prefer to listen to all possible
options before making a final decision.
A good thing to remember here is that
this cultural mix has developed its own rules
of etiquette that shows respect to various
cultural; religious and personal factors.
Most UAE government portals and business
directories provide hands on tips on what is
polite and what is more polite in dealing with
locals; various expat groups; but the general
role of thump is mutual respect and friendly
language.
Competitiveness Nature
The UAE business practice is actually built
around a unique blend of competitive values
that spreads the culture of excellence and
distinction not only among citizens but also
among businesses and business people of all
nationalities. The culture of excellence was
embedded in government practices, both
at local and federal government levels in a
manner that made it an essential part of the
day to day practice. Government and private
sector initiatives were also complimented
with a parallel drive to inject higher standards
of excellence in education and supporting
services such as health care; municipal and
public works.
Due to the adoption of the free market
economy, competition has become an
essential component of business cycle in the
country. Therefore, excellence in production
and services has become one of the major
requirements of survival in such a highly
competitive market. Whether operating
locally or exporting outside the country, UAE
businesses have always relied on excellence
and good business practice as a major
competitive edge in their market entry and
survival. Encouraged by strict standardization
policies, the manufacturing community as well
has been at the forefront of the excellence and
distinction face of the country making sure
that whatever carries the ‘Made in the UAE’
label is always linked to quality.
In order to orchestrate all the national
efforts
for
excellence,
the
Emirates
Competitiveness
Council
was
formed
comprising of representatives of the federal
government: the private sector and each of
the seven emirates’ own excellence bodies.
Working together in partnership with the
public and private entities the council enacts
policies and undertakes actions to drive the
UAE’s competitiveness agenda and unite the
country towards achieving the nation’s vision
for sustainable growth and prosperity.
One of the results of these efforts was
certified by a global partner. The World
Economic Forum’s Global Competitiveness
Report 2011/2012 ranked the UAE 27th globally
for competitiveness. The UAE was classified
as an innovation-driven economy. This is the
highest stage of economic development that
a country can achieve. The classification is
based on factors that promote innovation
in economic development.
According to
the report, the UAE has ranked among the
top ten countries in more than 20 global
competitiveness indicators.
A significant part of the UAE’s approach
of excellence and competitiveness is injected
in the business community and the public
administration alike through a series of
excellence awards at both the national and
local levels. Government offices, business
entities and free zone companies across the
country have the opportunity every year
to apply their credentials to one or more
royal sponsored awards that measure each
segment’s excellence criteria and reward the
best achievers.
In addition,; quality promotion programs
have been launched country-wide, to
educate the wider business about embedded
quality and good business practice and their
significance to business continuity. Dubai
Quality Group, which was established by the
Dubai Chamber of Industry and Commerce, is
a leading provider of such services. In parallel,
the Dubai Quality Award focus on best quality
practices in management and production in
Dubai private sector entities.
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Chapter 2
Creativity in Business
Business
innovation
and
creativity
in operation are two essential pillars of
sustainable growth and international success.
Both government officials and business leaders
agree that the UAE’s march of development
and progress has always been based on
economic creativity, constructive initiatives
and determination. From a strategic point of
view, the country has effectively utilized the
opportunities in this rapidly changing regional
and global environment to achieve the
national aspirations of its people in building
a modern state that promotes the best ideas
from all over the world while preserving its
heritage, values and principles.
Current federal and local strategic plans
focus on the importance of innovation, planning
and economic, human and technological
development as the foundation of prosperity,
progress and sustainability. Such strategic plans
form the framework ofgovernment work and
regulations over the new couple of decades.
In addition, several initiatives were launched
to recognize creativity-based excellence and
quality practices. Both the President and
the Vice President sponsor annual events to
celebrate winners of all business segments
who compete on a bundle business excellence
and performance quality awards. In the vast
majority of the cases, creativity is the winning
factor. The private sector is also moving in the
same direction with more and more training
schemes being introduced on embedded
quality and the benefits of creativity to various
business models.
Why UAE ?
While encouraging local businesses to
embed innovation into their business models,
the UAE has also provided legal and regulatory
protection for foreign companies, which
allows them to harvest the fruits of their
creative minds and inventive solutions.
The UAE has been the first country in the
Middle East to launch a series of creative
rights protection as early as 1992, when a
set of federal laws were enforced to protect
intellectual
property
rights,
computer
software, industrial designs and patents as well
as copyrights and trademarks. With intellectual
protection spanning such a wide array of
industries, the country was able to provide
both local businesses and foreign investors
with suitable means to protect their respective
rights and encourage creativity to become a
widely practiced business behavior.
Government tenders are increasingly
playing an additional role in promoting
creativity and excellence in the private
sectors. It is becoming increasingly requested
that business entities applying or registering
with certain government departments for
procurement purposes should meet particular
administrative and accounting procedures and
certification. Tender and service procurement
in many local government departments is now
widely based on creative thinking and new
ideas rather than lower price basis.
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Chapter 2
Play
&
g
Plu
es s
Busin ment
ron
Envi
p
-Sho
p
o
t
S
Onetives
Initia
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t
a
r
e
to Op
Ready
tion
ed Loca
d
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A
e
Valu
ide Marketing
Region-W
Plug and Play Business
Environment
One-Stop-Shop
The One-Stop-Shop concept, while it applies
at the national level, is actually a synonym
of how combined government efforts are
working together to facilitate business needs
from registration to exportation. Not only does
the UAE provide all the practical requirements
handy for a successful entrepreneurship, it
also guarantees that the investor has the
freedom to harness the results of his success
back to his homeland. This is reflected in the
ease of procedures across the country and the
absence of complications even when making
inter-emirate applications and exchanges.
Moreover, because business registration
and the majority of the related procedures
are mostly done at the emirate level, things
get extremely easier. The One-Stop-Shop or
the unified application processing window, is
present in all of the economic departments
in each emirate which sometimes have more
than one site in the concerned city. That means
investors, regardless of being local or foreign,
will deal with only one contact point for all
issues related to their company formation
and incorporation. With the introduction of
e-government services in the country, that’s
supposed to be the last time they visit the
concerned economic department.
Why UAE ?
The rest, especially annual renewals, is
done electronically.
Free zone companies can enjoy a step
ahead of such ease of service. Since free zones
operate as self-contained ‘offshore’ areas, each
free zone authority maintains its own system
of providing services to its member businesses.
Instead of going to and from separate
government departments, businesses working
within a free zone deal almost exclusively with
the free zone authority. For example, when
hiring a new employee, a free zone company
will obtain that employee’s visa through
the free zone authority, not through the
Department of Naturalization and Residency.
Some free zones may go a step further
providing services like customs clearance,
municipal services & building certification as
well as third country visa applications.
Because most of the free zones also act
as landlords to rent or sell their offices and
business spaces/factories, investors end up
dealing with the very same people for all their
official paperwork. In fact, even telecom issues
are usually handled by the same office. This
could be time-saving especially for a startup
who wants to start as soon as possible and focus
on the business potential one is looking for.
Ready to Operate Initiatives
An essential part of the UAE business
readiness drive is to be able to shorten the
period between company formation and the
actual start of business. Thanks to its advanced
and versatile infrastructure, this is not an
issue anymore for the UAE. In fact, various
components of the country’s infrastructure
work together to facilitate immediate runtime for new businesses and minimal time
to production in case of fabrication or
manufacturing included.
Whether you are in a free zone or the
rest of the country, the amount of available
office space makes it a matter of a couple of
days before you are completely set up and
running. In free zones, it can even get better.
While waiting for the big space or for an
interim period, you can always choose to start
operation from a desk or a single executive
office. For free zones where manufacturing
and storage facilities may be needed, one
would only need to ask. If what you need is
not available immediately, in most of the cases
it can be arranged for as soon as possible.
To save more time, you can even start the
leasing or buying process at the same time your
license and visa are being processed, although
formal signing may need to wait until you get
the official going. All of the free zones can
offer you furnished offices to start from, but
you can always rely on the quick timely delivery
of ready or custom made furniture available
all over the country from international brands
to local labels. In addition, the wide spread
high speed internet and telecom connectivity
makes it possible to get fully connected in less
than 24 hours maximum all around the country.
Residential
solutions,
whether
for
individuals or groups, are just a matter of
hours away. You can even shop for available
flats online before you are actually in the
country. The country enjoys a wide range of
residential solutions that caters for all tastes
and capabilities. However, there are certain
areas known to match particular demographics
so you may like to check out these if you are
interested in living in a familiar environment.
While language was never a barrier in the
UAE, you may need certain linguistic support
if you are working at the regional level.
Cultural communication is one of the fastest
growing segments across the UAE and in many
language pairs.
One of the most useful ways to start your
business and life right away in the UAE is to
check the wealth of online resources abut
the country. Looking for leads? Check the
many online directories covering thousands of
business across the country. Local chambers of
commerce even provide you with studies and
reports on lucrative opportunities inside and
outside the country.
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Chapter 2
Value Added Location
The UAE has proven it is the ideal location
for businesses that require rapid access to
markets for high value, low volume cargoes.
But businesses are now discovering new ways
to capitalize on the country’s value added
location and make big money out of it.
Geographically speaking, the UAE is a
time zone bridge between the Far East and
Europe on the East-West axis and the CIS and
Africa on the north-south axis which makes
the country a gateway to a large market that
can be characterized with the UAE’s well
established trading links with the greater than
1.5 billion people in the neighboring region
covering the Arabian Gulf, Middle East/Eastern
Mediterranean, CIS, Central Asia, Africa and
the Asian sub-continent.
This has in effect made the country in
whole and Dubai in particular the distribution,
logistics and re-export hub of the whole
region. So whatever region of these you want
to reach from a central location, that location
for you is the UAE.
Thanks to its developed air and marine
transportation lines complimented with a
series of ground transportation solutions,
the UAE has been able to utilize this central
location to serve the whole region in a smart
way. Every UAE free zone is actually located
near a transportation hub that reduces
the times needed for cargo and shipping.
Jebel Ali free zone, for example, is coupled
with its famous port, the largest artificially
made port in the world, and is very close to
Dubai’s premium cargo airport, Al Maktoum
International.
Why UAE ?
This is complimented by the fact that
Dubai is also the regional headquarters of all
major air couriers and freight forwarders who
use the city as their regional assembly and
classification point for inbound and outbound
shipments. In result, if you ship anything with
them from Dubai to outside the region, it
gets everywhere at least one day earlier, and
your shipment is only 24 hours away from any
country in the region.
Dubai is also a regional hub for air traffic
and passenger transportation. The emirate’s
airport has become a focal point between the
East and the West. That’s besides the obvious
fact that is a regional center for shopping,
which means that if your product makes a
penetration in the emirate’s shopping malls,
it will definitely prevail everywhere else in
the target region. Starting a business in the
UAE enables you to utilize and harness many
unique advantages related to the country’s
location that no other country in the whole
region can offer.
Region-Wide Marketing
If you are coming to the Middle East to
work on a regional level, you cannot afford
not to be in the UAE for a very practical reason.
This is the only place where you can market
to the whole region from the warmth of your
office without any boundaries.
The United Arab Emirates has been for at
least the last two decades the ultimate centre
of the Middle East in everything regional,
whether it is marketing, sales, business
development, or trade shows. Everywhere
else it is a local effort, targeting only that
particular local market. But in the UAE, and to
be specific in Dubai, it’s regional even when
you target the local UAE market.
In terms of advertisement, you cannot place
a single in two or more different countries
without passing through an agency in Dubai.
Public relation agencies who work in other
countries usually hire a Dubai based firm when
they want to do a regional job.
Dubai has dominated the regional
marketing and business development scene
since early 1990s for both practical and logistical
reasons. Since most of the multinational and
regional companies are headquartered in the
city, it would be easier to have their marketing
agencies including advertisement buying
agents and public relations firms in the same
proximity.
the region. Outdoor advertisement is a good
example, which became popular first in Dubai
before the industry found it would be more
profitable to apply the same model in other
countries.
In addition, almost every week there is at
least one major regional trade show taking
place in the UAE. In some weeks the number
may exceed 10 regional happening either
concurrently in Dubai alone, or simultaneously
in Dubai, Abu Dhabi and Sharjah.
Regional integrated marketing campaigns,
including those adopting new and social
media, are mostly drafted and approved by
regional headquarters in Dubai. With the
huge number of outlets and agencies in the
city, they are most likely to be executed here
as well giving the concerned marketing team
an accessible way to monitor and measure the
return on their marketing investment.
Many multinational companies have
recently started to base their international
marketing or business development teams in
Dubai, both for cost and accessibility reasons,
even if they’re covering the rest of the world
outside North America and Western Europe.
With direct flights connecting Dubai on
daily basis to major US, UK, Japan and Australia
cities, multinational teams can travel the world
at ease while conducting their daily business in
such a beautiful and relaxed environment.
In the same period of time, Dubai was
gradually becoming the centre of the regional
media scene. This was further consolidated
with the formation of Dubai Media City and
then Dubai Media Production Zone and Dubai
Studio City. Currently, Dubai is home to over
500 publications and some 300 TV channels
covering the region between Pakistan and
India in the east and Morocco in the west.
There is a valuable marketing potential one
can generate from being just a call away from
all of these media outlets.
The Dubai regional advertisement hub
has been instrumental in the development
of individual advertisement markets across
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t
f Trus
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t
a
A Clim
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A
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e
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Princip
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t Rule o
Inheren
for Skills
A Magnet
A Climate of Trust
Partners in Success
Facilitation is one of the basics that govern
the relationship between the UAE government
and the private sector. The principle was
once summarized by His Highness Sheikh
Muhammad bin Rashid Al Maktoum, UAE Vice
President, Prime Minister and Ruler of Dubai.
He said that the government’s role is to create
opportunities for the private sector.
Whether it is for the federal government
or the seven local governments, private sector
initiatives have always been a continuous part
of each government’s strategy for the future.
It is not only about regulations but also about
the spirit. Simply put, the main difference is
hidden in the mentality behind the decision
making process.
The UAE looks on the private sector not just
as a tax payer but as partners. It has developed
the vision to deal with the private sector as
a strategic partner therefore counting on
successful continuum of partnerships to boost
the economy, create new jobs and help the
country advance further. This is widely reflected
when drafting new laws and regulations that
affect the private sector and various businesses.
The norm is that the government works
hand in hand with the concerned business
representatives to come up with policies and
regulations that benefit both sides.
Why UAE ?
In addition, the growing involvement of
the private sector in economic activities has
created cost efficiency in most new enterprises.
The public-private partnership is working
perfectly well in places like Abu Dhabi and
Dubai and gone are the days of inefficient
public undertakings gobbling up resources.
Abu Dhabi has made its partnership with
the private sector a part of its strategic plan
of development. The strategy is based on
both the enhancement of the economic
structure and the diversification of income
sources through nurturing the non-oil
sectors, strengthening the public-private
partnership (PPP), encouraging the direct
foreign investment (DFI), as well as entering
into joint ventures hinged upon comparative
advantages. The essence for Government is
to become the regulator of services delivered
to its people, and for the private sector to
become the provider of those services.
On the other hand, the Dubai Economic
Council was established in 2003 comprising of
representatives of both the government and
established private sector organizations. Its
objective is to serve as a think-tank and policy
advisory forum for the Dubai Government.
Principled Approach
Business
integrity
and
corporate
governance are essential not only for a
corporation’s image but also for a healthy
business environment and to insure foreign
investors all doors are open the right way.
The UAE’s business integrity drive deals
with three components equally, with more
education combined with strict legal handling
in the same time. Corporate governance,
transparency and anti-corruption culture are
three pillars the UAE is promoting as the new
frontier of business integrity and the one of
basics of legitimate commercial practice in
the country. While these pillars are essential
to maintain the investor’s confidence in
the country, they are also instrumental in
developing healthier business practices and
promoting fair competition in this free trade
country.
Of the UAE’s first efforts to boost
transparency and disclosure took place in April
2007 when the Securities and Commodities
Authority issued the Regulation for Corporate
Governance and Institutional Discipline
Standards for public joint stock companies. The
authority allowed for a transitional period of
three years before making the implementation
of these standards obligatory for all concerned
companies.
The decision is aimed at boosting investor
confidence in the UAE’s capital markets. It
also provides for increased transparency and
accountability. Hence the listed entities were
given a strict notice period to adopt the new
protocols.
As part of this commitment, the country’s
Ministry of Economy is in the process of
preparing a set of new laws that include a
unified foreign investment law, an auditor’s law
and a new company law with a sophisticated
corporate governance framework to protect
shareholders, achieve transparency and
disclosure of financial results and reports.
Anti corruption efforts are making progress
across the country as well. Starting in 2008,
Dubai launched a major anti-corruption
campaign against officials in big realty and
financial companies. The campaign was
aimed to prevent officials from abusing the
economic capabilities of the country, and to
execute international standards to protect
and guarantee the rights of investors. The
campaign was considered to be a “correction
movement.” At the same level, the emirate
launched a similar campaign that included
strict and prompt action against any acts of
bribery within the emirate, whether in private
or public sectors.
Nonetheless, the country is still positively
applauded by the international community. In
late 2010, Transparency International, a Berlinbased monitoring organization, said the UAE
remains one of the most investment-friendly
countries in the region. The annual study
from Transparency International awarded the
Emirates a score of 6.3 out of a possible 10.
The survey aggregates perceptions of publicsector corruption among business people and
experts.
Recently, the UAE Ministry of Economy
announced that they were in the process of
developing a whole series of new laws which
seek to promote efficiency and impose greater
transparency in order to improve investor
confidence. The new laws are part of a bid to
enhance the business environment in line with
the UAE’s Vision 2021; which aims to promote
the UAE, particularly as a global business
centre and investment destination.
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Chapter 2
Inherent Rule of Law
Since the UAE is a federation, each emirate
is authorized by the UAE Constitution, to have
its own laws and judicial authority when not
conflicting with the federal laws. Hence, the
UAE has federal and local laws and courts.
Local and federal courts apply UAE federal
laws and the laws, regulations and decisions
passed by the local rulers of each emirate. In
general, the UAE follows a civil law system
with is the primary source of law heavily
influenced by French, Roman, and Egyptian
law. However, there is no reason to worry
of any conflicting procedures or legislations.
Laws are clear, stable and publicized, the
government does not expropriate without
adequate compensation and government
regulations are effectively enforced.
All commercial disputes are heard by the
civil, criminal and labour courts. The practice
in both federal and local courts is the referral
of matters to court-appointed experts for
findings of facts involving various issues such
as financial, accounting and technical matters.
While expert’s reports are not binding and
may be challenged by the parties before
courts, nevertheless, they are given persuasive
weight by the courts.
Although civil courts are the main forum for
recourse in commercial disputes, arbitration
is becoming progressively more popular. The
Dubai International Arbitration Center (DIAC)
and the Abu Dhabi Commercial Conciliation
and Arbitration Center provide world-class
arbitration for local business and commercial
disputes serving both local and foreign parties.
The state of law in the country was even
certified by some of the world most authentic
references on the rule of law and the flexibility
and transparency of the judicial system. The
UAE garnered the first slot in the Middle East
Why UAE ?
and North Africa (MENA) and the 13th rank
globally in the World Justice Project (WJP) Rule
of Law Index which covers 66 countries.
According to the index, which is based
on eight key factors, the UAE came ahead of
the US, which ranked 20th. The WJP’s Rule
of Law Index is a new tool developed and
administered by the WJP to measure countries’
adherence to the rule of law in practice and
provides new data regarding a variety of
dimensions of the rule of law. This is the first
index to cover the rule of law comprehensively.
The Index is designed to provide governments,
businesses, NGO’s, and civil society, with a tool
to plan targeted, effective reforms, and will
show incremental change over time.
In order and security, the UAE scored
90, absence of corruption 82 and effective
criminal justice 84. The UAE also earned top
score in access to justice as people can access
to legal counsel, and afford civil courts under
due process of law.
The report described the government as
accountable and its powers are limited by
the judiciary. It also mentioned the absence
of corruption in the judicial and executives
branches as well as in police and military. In
the security and fundamental rights, the index
said people do not resort to violence to redress
grievances and noted the fundamental labor
rights, freedom of belief and religion, freedom
of opinion and expression, equal treatment
and absence of discrimination and right to life
and security of the person.
A Magnet for Skills
Due to its close proximity to various
countries that provides skilled yet efficient
labor, the UAE has managed to provide its
industrial and business base with suitable
workforce without limitations. The added
value of being in the UAE besides the fact that
you’re in the heart of the region’s shopping
centre, comfortable living environment and
travel destination, is that one gets a unique
work experience that only few other countries
in the whole world can offer. The UAE is now
a compulsory resume component for many
professionals looking to pursue an advanced
career in an increasingly globalized job market.
Surrounded by countries each with a rich
pool of workforce and limited employment
the UAE becomes a natural choice for
investors looking for a healthier investment
environment with easy access to such a large
human capital. Furthermore, as the country
emerges as a regional hub for top-tier
universities, more well-equipped Emiratis are
also entering the job market as a significant
option to tap in. About 330,000 nationals
are already part of the labor force, and the
number is expected to grow to about 450,000
by 2020. By 2050, that figure is expected to be
about 600,000, according to data from Towers
Watson, a human resources consultancy.
Nearly 60 percent of businesses in the
UAE are looking to hire at managerial and
professional levels, up from 46 percent in the
first quarter of the year, according to a survey
from Antal, an international recruitment
company with an office in Dubai. This further
indicates the healthiness and recovery of the
economy from the adverse effects of the
global financial downturn.
At the government level, the UAE assures
to meet the international standards in terms
of labor related legislations. Striking a fair
balance between the protection of the basic
rights of workers and the smooth and
flexible business operations for employers
is at the center of the UAE’s labor law
and the procedures implemented by the
country’s Ministry of Labor. With the rapid
growth of the country’s manufacturing and
construction sector, introduction of modern
labor accommodation facilities has been
pivotal. The concept of residential cities has
been introduced by Abu Dhabi’s ZonesCorp in
2006 to provide a safe and stable environment
which in turn helps workers in maintaining a
positive work attitude and motivating them
to provide their best efforts. The Ministry
of Labor is at the service of businesses and
workers to address any issues and hurdles
they may face to maintain a healthy employeremployee relation through friendly disputeresolution channels.
Workers from Indian Sub-continent, South
East Asia and the Middle East countries are still
pouring in to the UAE mostly for professional
and middle-class jobs. In addition, the high
unemployment and stagnant wages in Europe
and North America have made it much easier
to hire Western nationals. Newer trends are
also emerging with many companies now
exploring the Chinese talent pool, as shown by
a recent report from GulfTalent. The growing
presence of major Chinese corporations in
the UAE has increased the representation of
Chinese workers in the region.
As the UAE aims to facilitate the operations
of businesses and to remove obstacles on their
path to growth, the country is committed to
continuously fuel its attractiveness for talents
and creativity, sustain its flexible approach to
regulating the labor market, and addressing
the ever-changing human requirements of
businesses.
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A Tru dge
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Know y
om
Econ
al
tion
u
t
i
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Ins
mic &
o
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Ec
ucati
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E
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a
echnic
High-T
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Innovat
unications
IT & Comm
A True Knowledge
Economy
Economic Incentives
and Institutional Regime
As part of its drive to consolidate its
knowledge economy, the UAE government
has, over the past few years, been working
to strengthen its already strong businessenabling environment and institutional
framework towards improving the country’s
competitiveness and promoting innovation.
In 2010, the UAE was ranked as one of the
world’s top five business reformers by the
widely referenced World Bank Group’s Doing
Business Report. It was also ranked 33rd out of
183 countries for overall ease of doing business
in the 2012 report.
By
institutionalizing
the
country’s
competition laws, economic frameworks and
regulatory policies, the country‘s economic
and institutional regime is increasingly
injecting further incentives for the efficient
use of existing and new knowledge and the
flourishing of entrepreneurship. While many
existing initiatives have already made the
UAE conducive to entrepreneurship, the new
policy adopted at both federal and local levels
aims at raising the bar when it comes to new
investments and what they bring in. Therefore,
a new thinking is now governing the economic
planning and regulating process towards
knowledge-oriented investors.
Why UAE ?
For example, the federal government has
made it a strategic goal to extend and enhance
the ease of doing business nationwide through
various measures such as supporting SME
development by creating the proper legislative
environment that stimulates and promotes
SMEs, and developing and promoting
entrepreneurial mindsets. The government is
also implementing new policies to attract and
retain talent by facilitating the attraction and
retention of highly qualified workers.
Of particular interest here is the federal
government’s new model of international trade
which prioritizes high value-added industrial
sectors and encourages their exports through
modern and effective policies. In terms of
institutional regime, the federal government’s
aim is to enhance the regulation of key existing
sectors and encourage emerging sectors by
strengthening the regulatory framework of
key existing sectors, and supporting high
value-added economic sectors.
Moreover, the government of Abu Dhabi
is starting a new policy as part of its strategic
plan to encourage mobility of talents and the
open circulation of ideas through meritocratic
incentives, both monetary and in kind. The
emirate is putting in place a comprehensive
innovation policy that will bring practical
changes to many aspects of the economic
regulations.
Dubai, with its pioneering knowledge
economy, is leading the way in terms of both
regulations and incentives. Under the general
umbrella of “What’s good for business is good
for Dubai”, the emirate’s series of clusterbased free zones have made it much easier
to capitalize on knowledge at various levels
of profitability. The ease of doing business
in Dubai has been remarkably linked to
its dynamic regulations and government
openness as well as the first hand incentives
provided at several investment locations to
both local and foreign investors alike.
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Chapter 2
Higher and Technical Education
In order to truly develop its human capacity
and create a workforce with the skills and
talent that will drive a knowledge economy,
the UAE realizes the need to ensure quality
education at every level from pre-school to
post graduate studies. Currently there are
nationwide reforms underway to improve the
quality of teachers, curriculum, and assessment
at primary and secondary education levels to
enhance the country’s educational outcomes.
In higher education, curricula are being
upgraded to improve competencies that
ensure creativity and innovation.
Both federal and local governments
realize that education is the cornerstone of
the knowledge economy as it supplies the
necessary skills and talent. The objective of
UAE current educational policy is to create
a society of skilled and creative people,
with opportunities for quality education,
employment or self-employment, and the
chance to participate fully in the country’s
development.
In addition, the UAE is partnering with
some of the world’s leading educational
institutions to fortify the country’s education
sector. This substantial investment to bring
world-class education and strong research
capabilities into the country is an important
step in developing a workforce with the right
skills to generate growth and in increasing the
country’s research output. In order to keep
pace with global developments, there is still a
need to develop a critical mass of specialized
research institutions and highly-skilled
knowledge professionals, including scientists
and engineers. By strengthening its capacity as
a centre for education in the region, the UAE
can leverage its position as a knowledge hub
and serve as a talent pool, while competing
globally.
Why UAE ?
To cater for the need to upgrading the
country’s innovation system, the UAE has
launched a series of initiatives to strengthen
the nation’s innovation drive. Key to fostering
innovation will be the establishment of
stronger ties between education, industry,
trade, services, enterprises and entrepreneurs.
Strengthening the motivation for innovation
among individuals and firms is also critical
to fostering a culture of innovation and
entrepreneurship.
While the UAE currently boasts of several
state universities and double the number
in private sector, it is important to highlight
the example of the Higher Colleges of
Technology (HCT) which is evidently the
largest institution of higher education in
the UAE. In the academic year 2009-2010,
this MIT-like institute had 11,700 female and
6,500 male students enrolled at 17 campuses
and 92 programs throughout the country.
What is noteworthy is the type of education
offered here which includes post-secondary
degrees in business, education, engineering
technology, information technology, applied
communications and health sciences. In
particular, the HCT places a strong emphasis
on an innovative, project-driven and studentcentered curriculum. English is used as the
medium of instruction, with faculty
recruited from around the world.
Of particular importance here
is CERT (the Centre of Excellence
for Applied Research and Training),
which is the commercial arm of
the Higher Colleges of Technology,
developing
and
providing
education, training and applied
technology for public and private
sector clients. The Wharton
Center for Family Business and
Entrepreneurship Research for the
Middle East is based at CERT. The
University of Waterloo, Canada,
offers dual degrees in collaboration
with HCT through CERT.
But most significant is the role
CERT played in bridging the gap
between the academy and the
various industries present in the
country. CERT’s success has also
encouraged the University of
the UAE, in Al Ain, to establish a
similar center which is now widely
applauded for the essential role it
plays. Similar initiatives are under
way by the Khalifah University
for Science & technology, the
American University in Dubai,
Zayed University and the American
University of Sharjah.
75
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Chapter 2
Innovation
Being the only Arab country to have an
innovation-driven economy, the UAE has
been developing and upgrading its system of
innovation as part of its drive for a knowledgebased economy. The country has been recently
named by INSEAD, the leading business school
in Europe, as the most innovative country in
the Middle East, citing its robust technology
infrastructure and high-quality education
system. According to INSEAD’s annual Global
Innovation Index (GII) report, the UAE rose
by two spots in 2011 to rank as the 24th most
innovative country in the world.
For many observers in the country, that was
not a surprise. There’s a lot of creativity and
innovation happening in different ways than
what’s commonly thought of. Although the
country might not be ready yet to produce
patentable technology innovations, what is
being done at Abu Dhabi’s Saadiyat Island and
Dubai’s various knowledge clusters is actually
creating value-adding changes in society at
large.
The Global Innovation Index uses a
broader definition of innovation, other than
just looking at investments in research and
development (R&D) or the amount of patents
published. The UAE scored high marks in the
index’s technology infrastructure, investment
in education, and knowledge application
rankings, finishing eighth, 15th and third
worldwide respectively. In effect, that means
the country is moving into more knowledgebased sectors. The UAE has made a similar
progress on the Innovation Efficiency Index,
which examines how economies leverage
their enabling environments to stimulate
innovation results.
Meanwhile, the UAE has put a lot of effort
to create enabling conditions for innovation,
such as regulations or scientific institutions,
and make them pretty strong nationwide,
which guarantees that the production of
innovative output is going to continue.
There are efforts underway to strengthen
the UAE’s innovation drive. Strengthening the
motivation for innovation among individuals
and firms is also critical to fostering a culture
of innovation and entrepreneurship. Currently,
in the Small & Medium Enterprises (SME)
sector, there are business support program
including efforts by the Sheikh Khalifa Fund,
the Mohammed Bin Rashid Establishment
and Ruaad to encourage entrepreneurship
by smaller-sized businesses. Going forward,
a challenge will be to provide incentives to
large multinational companies to anchor their
Research & Development (R&D) functions in
the UAE to encourage valuable knowledge
transfer. Other schemes to change the
regulatory structure of how to start a business,
as well as new bankruptcy legislation, are
being introduced gradually.
The latest initiative in this regard is the
“Majid Bin Mohammed Innovation Center
in5” which was launched in October 2011 to
promote entrepreneurship and technology
innovation in the UAE. Located at Dubai
Internet City (DIC), the center will focus on
the five key objectives of accelerating the
development of new start-ups and SMEs,
fostering entrepreneurship, driving technology
innovation, contributing to shaping an ICT
ecosystem and, most importantly, promoting
Dubai as an ideal location for tech start-ups.
The UAE is also known for its zero-tolerance
policy in intellectual property violations while
in the same time applying effective regulations
for proper patenting, copyrighting and trademarking.
Why UAE ?
Information & Communication
Infrastructure
The importance of a dynamic information
and telecommunication infrastructure in
enabling a knowledge economy is undeniable.
With a clear view to use ICT to facilitate
effective
communication,
dissemination
and processing of knowledge, and have a
particularly important role in the dissemination
of scientific and technical information, the
UAE has already developed an impressive ICT
sector with a demonstrated commitment to
providing its people and businesses with access
to the latest technologies. The UAE is rated as
the leader in the MENA region for ICT and a
solid performer internationally. According
to the World Economic Forum’s Global
Information Technology Report 2009-10, the
UAE ranked 23rd globally making it among
the world’s most networked economies. Out
of 138 countries, UAE is ranked 24th in the
report’s Networked Readiness Index (NRI) in
a continuation of its impressive performance
throughout the previous editions of the NRI.
The UAE is also keen to use ICTs as a
vehicle for the promotion of culture and
national identity. There are several initiatives
for the development of Arabic content such
as applications for learning, development
of Arabic media and digitization of scientific
content. The Mohammed bin Rashid Al
Maktoum Foundation has an initiative to
translate and digitize masterpieces in science
and culture at the rate of one book per day,
and make them available online thereafter.
Both federal and local governments are
widely using e-government to offer more and
more services to the public which in return have
raised the percentage of Internet penetration
both vertically and horizontally. In addition,
the federal government and the governments
of Abu Dhabi, Dubai and Ras Al Khaimah are
available through mobile gateways for easy
access on the move.
In terms of national infrastructure, the
UAE places building a national fiber networks
as part of the national agenda. For UAE, the
aim of having a fiber network is to “improve
the country’s image, making it appear quicker
to adopt new technologies than competing
nations and so more attractive to foreign
investors”. This is confirmed by Fiber To The
Home (FTTH) Council which ranks the UAE
“fourth among all economies in FTTH market
penetration, positioned ahead of all European
and Americas economies and behind South
Korea, Japan and Hong Kong”.
First of its kind in the Arab world, an ICT
Fund was initiated in 2005 with a key objective
to drive the strategic development of the
country’s ICT sector in order to strengthen the
innovation and knowledge capital level of the
market by providing research, education and
entrepreneurial opportunities.
To cater for ICT security needs, The
UAE Computer Emergency Response Team
(aeCERT) was established in 2008 to facilitate
the detection, prevention and response of
cyber security incidents on the Internet, hence,
supporting a safe cyber environment for the
residents of the UAE. Police departments also
have specialized units to fight cyber crimes.
77
78
Chapter 2
AE:
The U gnized
co
A Re
Brand
l
a
b
o
Gl
The UAE: A Recognized
Global Brand
A business entity established in a country
does not only mean it carries its own trade
name, but it also means it agrees to bear the
country’s brand. Today, thousands of business
entities are operating from the UAE, indicating
the strong willingness of global entities to
associate their businesses with the UAE Brand.
However, what does the UAE brand stand for?
Making the UAE a globally-recognized
business brand can’t only be attributed to a
single factor. The main drivers that positioned
the UAE brand in the active worldwide
business arena may include the government,
the UAE-based companies with their individual
brands, products and services, regional and
international agreements and treaties, and
innovative business concepts.
Why UAE ?
tion
s Na
s
e
n
Busi
ned
w
o
n
A Re
iness
c Bus
i
l
o
b
Sym
adors
Ambass
ioned Brands
Well-Posit
A Renowned Business Nation
Since its establishment on December 2nd
1971, the founding fathers of the UAE have
pictured the young country as one of the wellknown nations in all fields. They have started
setting up the physical and mental bases by
building the infrastructure of roads networks,
seaports, airports and business hubs, and
by propelling all kinds of positive signals
attracting not only the local people but also
the world to join the development cycle in the
UAE.
The late Sheikh Rashid bin Saeed Al
Maktoum, the founding father of Dubai, was
the first one to introduce the concept of free
zones when he launched Jebel Ali Free Zone in
1985, one of the most recognized free zones
in the globe today. By creating a positive stir
the third fastest growing city in the world,
behind Dublin and Las Vegas, due to these
simple reasons.
among international entrepreneurs, he
succeeded in spreading the UAE as one of
the most-welcoming investment destinations.
By then, businessmen and investors realized
the sincerity and commitment of the UAE
into becoming a truly investment home. The
UAE is currently housing more than thirty
five free zones of which some are purposelybuilt and dedicated to serve a specific sector
such as Dubai Media City and Dubai Internet
City. These zones along with specialized
business zones played a very important role
in establishing the UAE brand since they offer
great incentives for international investors.
ive
ort
p
p
Su
tive
ova
n
In
The government considered a stable
monetary policy, a resilient fiscal policy and
strategic trade policies. It has also realized
the importance of concluding regional and
global agreements. In order to strengthen
its position as an open economy and establish
a global presence in all assemblies, the UAE
signed the GATT treaty in 1994 and became a
member of the World Trade Organization in
1996. The UAE also holds various Free Trade
Agreements (FTAs) with different countries.
Throughout the history, the UAE has
been taking the lead in supporting the
needy nations. It has an active presence in
the development of housing, education and
infrastructure worldwide, thus enabling the
ed
min
r
e
t
De
Wise
Caring
The steps of the founding fathers were
followed by their visionary sons, Sheikh
Khalifa bin Zayed Al Nahyan and Sheikh
Mohammed bin Rashid Al Maktoum, showing
their commitment to continue the path
of success. They legislated free, open and
encouraging business environment where
international investors can own 100% of
their businesses, face easy procedures, costeffective setting up setting up fees and
transparent market data in a highly demanded
emerging market. In the 1990s, Dubai became
recipient countries to steadily grow their
economy. Abu Dhabi Fund for Development,
the UAE Red Crescent Authority, Dubai Cares,
the Al Maktoum Foundation and Sharjah
Charity Association are a few examples of the
actively involved charities in the world.
With a wise ambitious leadership, the UAE
managed to obtain high rankings in most of
the global-recognized indices. To name a
few, it is the first Arab Country in the Global
Enabling Trade Index, Human Development
Index, Networked Readiness Index, Global
Financial Development Index, Prosperity Index
and Corporate Social Responsibility Index.
Moreover, the government believes of hard
work and commitment to provide the most
competitive and being recognized globally in
order to maintain its prestigious position.
79
80
Chapter 2
Symbolic Business Ambassadors
The trust with the world that has been
built by the local and UAE-based international
businessmen since the early days of pearl
industry is significantly contributing to the
structure of the UAE brand today. Foreign
banks agreed to trade gold with local
businessmen with no need for guarantees
and business transactions with Indians traders
were also carried with no guarantees needed.
Reaping the advantages of the UAE
regulatory business environment and basing
on the characteristics and reputation of the
UAE brand that has been built up for decades,
the existing UAE-based companies did not only
flourish in the region but also in the wider
world.
Today, the UAE has a foot in all countries
across all sectors. Abu Dhabi Polymers Company
(Borouge) established a manufacturing plant
in Shanghai, China to serve the Asian growing
market. Rakeen, a real estate developer,
developed a mixed-use luxurious development
in the Georgian capital Tbilisi, offering stateof-the-art residential and commercial facilities.
Arabtec, a UAE-based global construction
company, successfully completed the iconic
Russian project “Okhta Centre”. Al Hilal Bank
started operating in the UAE in 2008 and
swung its wings over the Kazakhstani market
in 2010. UAE Exchange, a global leader in
remittance and exchange services, today, is
benefiting the whole globe from its services
. The examples of the UAE-based companies’
success are unlimited.
Why UAE ?
These companies did not halt operating in
the international arena but they are also keen
to place the UAE name visibly on different
assemblies. In 2009, Etihad Airways, the Abu
Dhabi-based national airline of the United
Arab Emirates, signed a three-year deal to
be the official shirt sponsor and partner of
Premier League side, Manchester City FC to
have the Etihad Airways brand logo appear
on Manchester City shirts from the summer to
promote the company. Etihad means “Union”,
representing the name of the country.
DP World, one of the largest marine
terminal operators in the world today with
49 terminals and 12 new developments across
31 countries and serving customers in some of
the most dynamic economies in the world, has
chosen the UAE flag as its official logo.
In line with the international standards,
the UAE-based companies and organizations
always
seek
to
obtain
international
recognitions such as ISO. Dubai Cable Company
“Ducab”, was among the first organizations
to achieve the ISO 9001 certification and the
first in the region to achieve the ISO 14001
environmental certification. Furthermore,
they compete to obtain international awards
and prizes. For example, in 2009 the Etisalat
y
rth
o
st-W
Tru
rial
neu
e
r
p
l
re
ssiona
Ent
Profe
Competitive
Social
Responsible
group received seventeen industry awards,
including three for innovation and three for
customer service. It has been named ‘Best
Overall Operator’ in the Middle East six times
since 2006 and was named ‘Best International
Carrier’ at the World Communications Awards
in 2008.
As the UAE-based companies seek for
greater heights in terms of enlarging their
business operations and jurisdictions, they
also seek to socially contribute to the societies
where they operate.
81
82
Chapter 2
Well-Positioned Brands
Operating from the UAE means that
the business entity, through its operations,
products and services, carries the UAE brand
on its shoulders. Characterized as high quality,
competent, reliable and cost effective, the
UAE products and services have been vital
marketing tools, raising the UAE name globally
and actively contributing to the development
of the UAE brand.
The UAE government issued the regulations
that assure the quality of its products and
services in order to match international
standards and measurements. The UAE Federal
Law No. 28 of 2001 specifies the standards of a
material, product or service in order to ensure
its safety, quality, reliability and compatibility
with international recognized codes. Al Islami
Luncheon Meat from Al Islami Foods, a pioneer
food producer in the region, successfully
passed the European Union regulated tests
while all other brands tested positive for traces
of pork. Thus, it was recognized with an award
for the best luncheon meat.
Emirates Airline, the largest airline in the
Middle East and the sixth-largest airline in
the world in terms of international passengers
carried and largest in the world in terms of
scheduled international passenger-kilometers
flown, operating over 2,400 passenger flights
per week, from its hub at Dubai International
Airport Terminal 3 to 111 cities in 62 countries
across six continents, has successfully
represented the UAE brand through its
superior services and defiantly deserved to
be the UAE’s top brand. Emirates has received
Why UAE ?
numerous awards over the years for the
quality of its in-flight cuisine, the breadth of it
in-flight entertainment, and the excellence of
its overall service.
In Addition, the UAE products are
environment-friendly,
supported
by
government policies to be environmentallyresponsible. Dubal, a major aluminum
manufacturer in the region, has won a number
of international awards for its environmental
performance. Products of Arabian Packaging
Company follow environmental standards
for its sourced raw material to guarantee
complete compliance with the safety of the
environment.
Due to the UAE’s prestigious brand that
has been built by various factors as mentioned,
many international companies have chosen
the UAE as their main headquarter. Renowned
media providers like CNN international,
Bloomberg and BBC World have chosen the
UAE as a main headquarter to cover the Middle
East and North Africa region. The International
Renewable Energy Agency (IRENA) chose Abu
Dhabi as its main headquarters. According to
Business Intelligence – Middle East Unit, 90% of
French Companies choose the UAE for setting
up regional headquarters. Today, the UAE has
defiantly become the location of choice by
international investors and businessmen due
to its globally-recognized brand.
83
Chapter 3
A Sound and Resilient
Economy
“
No matter what was the size or structure of
a nation’s economy, its ability to withstand the years
of drought and ride the economic downturn cycles
successfully is the real test of its resilience. In the UAE,
the storms and turbulences were seen as challenges, like
finding water in the vast desert. As usual, the country
was up to it.
“
86
Chapter 3
The UAE: A Strong
Economic Heritage
The Trucial States, as the seven emirates
used to be called until 1971, were famous
for their business culture and embedded
multicultural values throughout the history.
Commencing from the third millennium B.C.,
Umm Al Nar, the capital of Majan Civilization
that flourished in the lands of the UAE, was
a major hub that exported copper to the
neighboring nations. In the modern history
of the country (19th century), Dubai began
its essential role as a regional hub for goods
going to the upper Gulf, Iraq, Persia, eastern
Africa and even beyond. Other cities like
Sharjah, Ajman and Dalma island also played
a major role as markets, each in its own
specialized field.
Historians demonstrate that by the end of
the 19th century, the ruler of Dubai made a
radical decision by exempting foreign traders
Why UAE ?
from paying taxes. Ever since then, the city
became a destination for merchants, investors,
and businessmen from all around the world
looking to make a breakthrough in this part
of the world.
Since its establishment in 1932, Sharjah
Airport Station rapidly grew up to become
Arabia’s first specialized cargo airport and a
centre for regional logistics; a role that was
later complimented and enhanced by the
establishment of Dubai International Airport
in late 1950s.
Abu Dhabi’s early discovery of the nation’s
largest oil reserve in the early 1960s marked
a turning point in the history of the Trucial
States and transformed the whole nation
to a new era in almost every aspect of life.
Although the oil fortune was mainly used to
upgrade the public infrastructure nationwide,
boost education and health services and
empower the new federation, it also played
an essential role to energize the economy and
fuel its multi-faceted growth in the years after
the federation was formed. Dubai, Sharjah
and Ras Al Khaimah followed the same policy
with their oil revenues.
The UAE Economy:
A Unique Orchestration
As a key international player and a
responsible energy provider, the United Arab
Emirates has designed its economy in a way
that integrates productively in the regional
economic scene while providing residents with
the essential requirements for a prosperous,
generous life.
Even though the federation was formed
merely 40 years ago, tahe pillars of its current
socio-economic stability were deeply rooted
in the country’s historic trade traditions
over centuries. Entrepreneurs from the UAE,
with their embedded high cultural values,
were behind the good reputation that
the economy is known of today. In 1960s,
international business transactions between
foreign companies and local merchants
were mainly based on trust, no papers
signed and no bank guarantees. From gold
manufacturers in Europe and auto parts
manufacturers in the United States of America
to spice suppliers in India, trust was accepted
as the main guarantee to deal with the UAE
merchants. That trust was also reflected on the
domestic market when banks gave loans and
construction companies built houses based on
trust.
For the present generation, the pearl-diving
grandfathers with their friendly personalities,
left both rich business traditions and fruitful
partnerships across the region that were
successfully utilized to build a unique blend
for the UAE’s emerging economy back in the
1970s and beyond.
The image, today, sounds even more
promising. With the success each and every
Emirate had over the past four decades,
the United Arab Emirates has emerged as
an important, responsible contributor to
the world’s economy, backed by a strong
national economy with solid macroeconomic
components.
In 2010, the UAE ranks 3rd regionally and
27th globally in terms of the quality and
attractiveness of its business environment.
87
Chapter 3
region relies on one country; the United Arab
Emirates.
The UAE Economy:
The Pillars of Success
The farsighted vision of the founding
fathers of the UAE was essential to the success
of the local economy and its expansion abroad.
The late Sheikh Zayed bin Sultan Al Nahyan
and Sheikh Rashid bin Said Al Maktoum had
a clear view of the role the UAE federal and
local governments should play to motivate the
newly formed national economy.
The view from the top was pretty sharp
and clear; instead of building a controlled
state-run economy, they provided the healthy
grounds for it to grow. The new government’s
task was to act as a facilitator for business
and free trade. Both government bodies and
business entities started a de facto partnership
that successfully built what we know today as
the UAE leading economy.
With such a healthy economic environment,
it was natural for the private sector to flourish.
The strategic decision not to rely completely
on hydrocarbons opened the door to many
economic sectors to grow and compete. Local
businessmen and women were encouraged
to start new types of businesses, bring in new
international brands; they were even offered
government finance as startups. With this
winning formula, the UAE has successfully
maintained its position as the region’s hub
of international trade in almost all products
and services. From financial institutions to
information technology and from shipping
and logistics to primary re-exports, the whole
Diversification has been and will continue to
be the main pillar of the UAE economy. Today,
40 years ahead, the non-oil economy of the
UAE contributes over 68% of the nation’s GDP.
Both the federal and the local governments are
still making effective plans to increase the nonoil contribution even more.
In line with its vision 2021 and its federal
strategy 2011-2013, the UAE is taking strategic
initiatives in order to establish a knowledgeled economy. Strengthening small and medium
enterprises (SMEs) to efficiently provide
advanced, creative and innovative technologies
is the prime contributor to the evolution of the
transition.
In addition, to the initiatives offered at the
federal level, the UAE has several economic
initiatives working in integral, parallel harmony.
The federal government runs the overall
operations, especially in terms of external trade
and nationwide monetary and fiscal policies.
Meanwhile, the local government in each
emirate thrives to inject as much incentives and
competitiveness into their offerings to further
motivate the local economy and businesses.
The healthy levels of inter-emirate competition
have been instrumental in attracting a lot of
foreign direct investment while helping local
businesses grow from small shops to multibillion-dollar conglomerates.
Local initiatives vary from one emirate to
another, but they all adopt open market and
healthy competition policies. Free trade is
protected by law and each emirate has several
free zones to facilitate specialized business
parks that serve the UAE and beyond.
Why UAE ?
Entrepreneurial
Adapting and
Resilient
Enabling
Trust-Based
GDP IInd Largest
in the GCC
Balanced Focus
At the Cutting Edge
Diversified
A Sound and Resilient Economy
Free, Robust
and Open
88
90
Chapter 3
The UAE:
A Story of Growth
Throughout the last four decades, the
UAE managed to leap
the hypothetical
development ‘stages’ that most developed
countries seem to have experienced. It has
successfully reached the stage of modernity
and became one of the most successful
emerging economies in the world. Not only
the high mass of oil revenues enabled the UAE
to short-cut the usually difficult and lengthy
process of saving and capital accumulation
necessary for economic development but
also the creativity in devising innovative
policies and visions to cope with the resources
scarcity’s challenges, either human or nature,
and mitigate the sever hardships, has played
an important role in shrinking the long process.
These policies have contributed in building a
creative – spirit economy with a vast pool of
historical experiences and practices.
In conjunction with the rapid growth of
the UAE’s population and domestic needs, the
economy size has exponentially grown from a
GDP of USD 21.10 billion in 1972 to USD 297.5
Why UAE ?
billion in 2010 at current prices. However, such
a huge growth couldn’t have been possible
without the fundamental components of the
UAE’s economic policy that kept providing
the market with motivational strengths and
enough liquidity. The stable macroeconomic
components, increasing domestic and foreign
investments, liberal financial and trade policies,
the availability of the skilled labor and the
access to the MENA and Africa region have
been and will always be the strong drivers of
the UAE economy.
Since the early days of independence, the
UAE adopted a dual track approach to grow up
its economy; both federal and local (emirate
level) factors have been instrumental to this
growth. Figure 1 below shows clearly that
while the overall performance of the economy
was growing steadily, its non-oil components
were also being enriched in order to reach a
situation where the whole country can live
prosperously without any oil contribution to
the GDP and the state funding.
However, the oil fortune was rightfully
used to boost the infrastructure across the
country. Oil revenues made %58 of the
national GDP in 1975; which was the year
that witnessed the first federal budget. The
government of Abu Dhabi, which produces
over 90% of the country’s oil, contributed some
The UAE GDP Growth by Sectors at Current Price (Millions Per USD)
Sector
1975
Agriculture , Live Stock and Fishing
Mining and Quarrying
Crude Oil and Natural Gas
2010
315
2,610
33,387
94,009
33,294
93,618
93
391
Manufacturing Industries
531
28,925
Electricity , Gas and Water
270
7,617
Construction
8,961
34,660
Wholesale Retail Trade & Repairing Services
8,864
38,097
Quarrying
6,292
Restaurants and Hotels
Transports , Storage and Communication
1,847
26,942
Real Estate and Business Services
2,543
29,510
453
7,060
1,300
20,230
884
13,573
39
1,125
-1,081
-13,105
Social and Personal Services
The Financial Corporations Sector
Government Services Sector
Domestic Services of Households
Imputed Bank Services (Less)
297,546
58,313
Gross Domestic Product total
Included in the above item.
Non Oil sector
24,926
203,927
% Non Oil GDP
42.7%
68.5%
share went down by 30% in 2009, while Abu
80% of that budget. Keeping in mind that
Dhabi’s share became 60% (from 48% in
Abu Dhabi is actually the largest emirate and
2002). The other emirates maintained a stable
occupies over 85% of the country’s map, the
contribution in the remaining 10%.
significance and magnitude of its contribution
to the federal budget and
GDP/Non Oil GDP (Millions per USD)
economy
can
be
easily
understood, while building
and maintaining its pre- 300,000
federation economy.
Dubai, the second largest
emirate in the country, built
its own unique business model
in terms of re-exports and
services, therefore its share
in the GDP went from 25% in
1975 to over 40% in 2002. Later
on, because of the surge in oil
prices and the consequent
credit crunch, Dubai’s GDP
250,000
200,000
150,000
100,000
50,000
0
1975
1980
1985
1990
1995
2000
2005
2010
91
92
Chapter 3
A closer look at the GDP contributing
activities in the UAE shows that the country’s
economy is highly dependent on the external
sector as reflected by the trade ratio (exports
and imports). Consequently the external
sector plays a major role in the performance
and evolution of the UAE economy. The UAE’s
trade balance in 2009 decreased by 33.1 per
cent from USD 62.9 billion in 2008 to USD 42.1
billion.
This decrease was largely due to a 19.8 per
cent decline in the value of exports and reexports. The country’s free zones also decline
in 1.3 per cent in exports, which reached USD
26.2 billion in 2009. Meanwhile, re-exports
reached USD 79.9 billion in 2009.
Although the private sector expenditure
plays an essential role in the UAE’s economy
with over three quarters of the GDP, the
government sector is still an important player.
The UAE maintains a successful partnership
between the government and the private
sector.
But with a clear path to the future, optimism
is a daily practice in the UAE. The Ministry of
Foreign Trade forecasts that the country’s
external trade will reach USD 200.14 billion in
the year of 2011, increasing by 11% compared
to 2010. Foreign direct investment FDI in 2010
grew up 13% to USD 15.03 billion.
Why UAE ?
Important Stages of the
UAE Economy
1900-1930: Pearl Industry Era
The UAE became a commercial centre linking
Indian with Arabian waters by supplying pearls
resources to the world. This economic activity
provided employment and income to the majority
of the population, transformed the traditional
economy of the tribal population and made the
UAE’s ports as major trading ports in the region.
The worldwide economic depression that erupted in
1930s and the Japanese discovery of the cultured
pearl spelt disaster for the Gulf’s pearling industry.
The UAE, because of its creativity economic spirit,
was able to recover fast by using its ports on trading
other goods across the region.
1958-1980: Discovery and Production of Oil
An economic significant era began in the early
1970s with the establishment of the UAE and the
production of oil. The rapid transformation from
a desert region to one with a booming economy
was possible by gaining massive revenues from oil
exports. The UAE was the only GCC oil producer
country to keep foreign partners on a productionsharing basis at that time. This policy proved its
viability in giving the country a technological edge
over fellow producers in the Gulf. The period
1970-1980 saw high growth performance when the
government used the surplus of its oil to develop its
infrastructure.
1980’s: Diversification Strategy
The government committed itself from the
beginning to allow and accept diversification of its
economy by allowing foreign investment and issuing
open and encouraging policies for companies
to flourish. The UAE positioned itself as a main
international trading hub and a major regional
financial centre.
1985’s: Inventing Free Zone Concept
A totally new business concept was introduced in
Dubai by establishing Jebel Ali Free Zone Authority
(JAFZA). Little attention and great criticism were
received at the beginning. Day after day, the free
zone concept has proved its success when hundreds
of domestic and international companies joined that
attracting zone that grants them with exceptional
privileges like 100 percent foreign company
ownership and exceptions from taxes and customs.
Today, free zones have become integral parts of the
UAE economy and contributes more than 15% of
the national GD.
1990’s: Advancing the Diversification Scheme
The uninterrupted growth over the previous ten
years allowed the country to focus on developing its
non-oil sectors like tourism sector, real estate and
re-exports sectors. The contribution of the non-oil
sector increased. The economy transformed from
an oil dependent economy to a more diversified
economy.
1998’s: Surviving the Oil Price Crunch
The GCC countries were faced with the
challenges imposed by the oil downturn cycle
in the late nineties. As a response the UAE
government increased its spending, deepened its
non-oil initiatives and maximize the private sector’s
participation in the strategic sectors like energy and
heavy industries. The UAE through its diversified
initiatives and with each emirate focusing in a
specialized economic portion were able to absorb
the downturn and as a result the diversification
scheme was fortified.
2007-2009: Global Financial Crisis
The challenges that the UAE has gone through
because of the recent economic cycle were faced
by expansionary monetary and fiscal policies by
the government. The interest rate was lowered
and banks were given about USD 19 billion facility
to enhance economic growth and consumer
expenditure (see … to read about how the UAE
dealt with the crisis in details)
2009 end’s: Regaining Growth Mode
National GDP increased by 1.3% in 2009, driven
by consumer demand. The astonishing increase
of this indicator by 72% since 2005 proves the
successful transformation of the UAE economy
from an oil-driven economy to a consumer- driven
economy.
1998’s: Aggressive Diversification Strategy
The oil sector is still a major contributor to the
total GDP. The UAE is also still supporting the nonoil initiatives and developing encouraging policies in
that regard.
1999-2007: The Second Boom
Furthering the diversification and growth
strategy, the UAE and its seven Emirates started
to seek for competitive positions in the new fronts
of the world economy, in the period between
1999-2008, the country maintained a remarkable
economic growth rate of 9%, being among the
top league of the fastest gorwing world economies.
with the launch of initiatives in the scale of Dubai
internet city, Dubai Media City, DIFC, Dubai Health
care city and twofour54 Abu Dhabi, the country have
established itself as a major global destination for
ICT, Media, Financial services, healthcare and other
major knowledge-based economic sectors. this
period also witnessed great development of iconic
projects in the areas of real estate and tourism that
put the country in the world’s record book, starting
with the launch of Burj Al Arab, the world’s only
seven-star’s hotel to the creation of Yas Island, one
of the world’s most luxorious tourist destinations.
Real Estate developments peaked during he early
years of the 2000’s, resulting in 30% of the world’s
crains to reside in the UAE and in more than 750
skyscrapers decorating the UAE’s landscapes
With all the developments taking place in the
country and with the hard and deligent efforts of
the government and the private sector, the UaE
turned into a brand synonymous with development,
ambition, luxury and prospertity. This resulted in
a great interest and influx of people to the land of
the UAE to ripe the fruit of what people called “The
Second Boom”
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Chapter 3
The UAE: A Sound
Macroeconomic
Environment
The global economy was affected by the
recent economic distress. The UAE, an important
economic player in the region, had faced these
not-avoided challenges, a fact that can’t be
ignored. However, the sound macroeconomic
fundamentals of the UAE driven by high oil
revenues and government spending were able
to gain back the confidence of the local and
international businessmen and investors and
therefore achieve a steady and sustainable
growth when most economies stumbled in the
darkness of the turmoil. The prudent policies
by the government were mainly behind the
remarkable restored macroeconomic figures
as shown in the tables.
Gross Domestic Products (GDP)
of the UAE
The ongoing efforts by the federal
government to diversify its economy and
reduce the dependency on the hydrocarbons
sector are achieving good results each year. In
2010, thirty percent of the national GDP came
from mining and quarrying sectors, a relatively
low share compared to other GCC countries. As
for the non-oil sectors, the services sector was
the major contributor with more than 35% as
the below table demonstrates. Data issued by
the National Bureau of Statistics show that
the total GDP at current prices grew by 10.1%
in 2010, whereas the non-oil sectors grew by
6.2%.
Abu Dhabi, the producer of 90 percent of
crude oil and natural gas in the UAE, remains
as the strategic contributor to the national
GDP. Currently, the emirate is the major
contributor in the mining, agriculture, utilities,
government and social services sectors. In 2010,
Abu Dhabi contributed 60% of the federal
GDP. Its share is expected to increase because
of the diversification plans that were set by
Abu Dhabi vision 2030.
Dubai, the second largest emirate,
contributes 30% of the federal GDP and 41% of
the non-oil GDP. In fact, the role Dubai plays in
the national economy has gradually increased
since the federation. When theemirate started
its flagship Jebel Ali Port (and consequently
Key Economic Indicators
Gross Domestic Product (GDP) at Current Prices (2010)
USD 297.54 billion
GDP per Capita (2010)
USD 36,000
GDP (at Current Prices): Average Annual Growth
Rate (from 2002 – 2010)
13.08%
Balance of Payment (2009)
USD 7.85 Billion
Government Spending (2010)
USD 24.54 Billion
Inflation Rate
1.6% (2009)
Consumer Price Index (CPI)
11.4% (2009)
Why UAE ?
GDP at Current Price Per Sectore (Millions Per USD)
Sector
The Non Financial Corporations Sector
2009
2010
249,229.2
275,722.0
2,608.1
2,610.4
78,552.4
94,009.2
78,177.6
93,618.3
374.8
390.9
27,314.0
28,924.8
Electricity , Gas and Water
6,483.3
7,617.0
Construction
31,921.0
34,660.0
Wholesale Retail Trade & Repairing Services
36,353.7
38,096.8
5,635.2
6,292.2
Transports , Storage and Communication
25,173.6
26,941.8
Real Estate and Business Services
29,039.7
29,510.0
Agriculture , Live Stock and Fishing
Crude Oil and Natural Gas
Quarrying
Restaurants and Hotels
6,148.3
7,059.8
19,555.5
20,229.9
Government Services Sector
13,013.5
13,573.3
1,161.2
1,125.0
-12,717.8
13,104.5
Total
270,241.6
297,545.6
Total of Non Oil Sectors
192,064.0
203,927.3
Domestic Services of Households
Imputed Bank Services (Less)
the free zone and industrial city around it), it
was consolidating its centuries-old tradition
of serving as a regional hub of re-exports.
In 2009, Dubai alone contributed 64% of the
country’s wholesale & retail trade and repairing
services sector.
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Chapter 3
The Figure below is important to
understand how each emirate contributes
to the national GDP per economic activity.
Because of the liberal policies and the free
market competition model, each emirate was
able to build its own competitive edge and
use it to promote its own micro-economy.
The cited income differences between the
emirates are generated mainly by the variations
in their natural resource endowments. The
most important resource the UAE possesses is
hydrocarbons (oil and gas). The UAE’s proven
oil reserves stood at 97.8 billion barrels at the
end of 2008, and its proven gas reserves at
227.1 trillion cubic feet.
Distribution of Gross Domestic Product by
Economic Activities 2010 At Current Prices
2.37
6.80
4.56
Government Service Sector
0.38
Domestic Service of Households
4.40
Less: Input Bank Services
0.88
Agriculture, Live Stock & Fishing
31.59 Mining and Quarying Sector
9.72
2.56
Electricity, Gas & Water
11.65 Construction
12.80 Wholesale, Retail & Repairing
Why UAE ?
2.11
Restaurants & Hotels
9.05
Transport, Storage & Communication
9.92
Real Estate & Business Services
GDP by Economic Activities and Emirates (2009)
1
2
3
4
5
6
7
8
9
10
Abu Dhabi
11
Dubai
12
Sharjah
Ajman
13
Umm Al-Quwain
14
Ras Al Khaimah
Fujairah
In spite of the challenges posed by the
recent economic turmoil, the UAE also
maintained a positive balance of payment
with a surplus of USD 7.85 billion according
to data issued by the National Bureau of
Statistics. A main driver behind sustaining
the positive growth trend in the UAE is the
government’s continuous investment to
improve the countrya’s infrastructure. In
2010, its spending reached USD 24.54 billion.
Ranking 7th on government spending
efficiency by World Economic Forum (WEF) in
the 2010-2011 Global Competitiveness Report
for the second consecutive time proves the
strong commitment of the government to
continue the outstanding performance of
diversifying the economy by pumping cash into
the different sectors.
1 - Agriculture, Live Stock and Fishing
2 - Crude Oil, Gas and Mining
3 - Manufacturing Industries
4 - Electricity, Gas and Water
5 - Construction
6 - Wholesale, Retail & Repairing Services
7 - Restaurants and Hotels
8 - Transports, Storage and Communications
9 - Real Estate and Business Services
10 - Social and Personal Services
11 - The Financial Sector
12 - Government Sevice Sector
13 - Domestic Services of Households
14 - Less imputed Bank Services
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Chapter 3
table “Main Expenditure Groups of the CPI”.
The data also show that the “communications
group” slowed down the rise of the index
when the prices of its items dropped down by
5.79% in 2010 compared to the end of 2009.
GDP per Capita
The growth of the UAE
economy over the last forty
years has allowed it to
achieve one of the world’s
highest GDPs per capita
that stood at USD 53,400 by
2008, ranking 35th out of
179 countries in terms of the
UNDP Human Development
Indicators. This performance
was not only a result of the
sectors expansions but also
of the open and encouraging
policies that allowed investors
and businessmen from all
around the globe to flourish
growing markets.
Emirates GDPs Growth (Millions per USD)
200,000
2007
2008
2009
150,000
100,000
50,000
0
Abu Dhabi Dubai
Ajman
UAQ
RAK
Fujairah
in the UAE’s
Consumer Price Index (CPI)
The consumer price index (CPI), which
measures the changes in the price level of
consumer goods and services purchased by
households shows that the average rise in
consumer prices in the UAE at the end of 2010
increased by 0.88% compared to its value
at the end of July 2009. The relative change
shows how much change occurred in 2010 as
compared to 2009. For example, the prices of
the items in the Food and Soft Drinks group
have increased by 4.46 %, as shown in the
Why UAE ?
Sharjah
Inflation
Rental costs and goods and services
prices are still the main driving causes of the
inflationary pressures in the UAE. The official
inflation rate is calculated by measuring the
percentage change in prices of a representative
basket of goods and services consumed by the
average household throughout the UAE. As of
the end of August 2011, the rate was calculated
at -0.14% per cent: a figure that is considered
low in global economies.
Dubai is the eighty-first most expensive city
in the world in 2011, an important improvement
on its previous ranking of fifty-fifth in 2010.
Consumer Price Indices (2010)
Main Expenditure Groups of the CPI
2009 (CPIs)
2010 (CPIs)
Relative Change %
Food and Soft Drinks
117.20
122.42
4.46
Alcohol Beverages and Tobacco
114.78
116.23
1.26
Textile, Clothing and footwear
114.06
108.40
-4.96
Housing
113.90
113.56
-0.30
Furniture and other items
113.56
118.86
4.67
Medical Care
106.18
105.26
-0.86
Transportation
110.79
114.54
3.38
Communication
104.15
98.12
-5.79
Recreation and culture
104.40
109.33
4.72
Education
119.25
128.89
0.09
Restaurants and hotels
129.70
130.84
0.88
Miscellaneous goods and services
115.68
117.31
1.40
Total
114.00
115.00
0.88
Abu Dhabi also made a progress from its
previous ranking as the fiftieth in 2010 to
become the sixty-seventh in 2011. The survey of
all the world’s major cities by Mercer Consulting
takes into consideration monetary value,
consumer confidence, investment, interest
rates, exchange rates of the country’s currency,
and housing costs. Mercer also issued a report
in 2010 stating that Dubai became the city with
the best quality of living in the Middle East
and Africa, followed by Abu Dhabi in the third
place in the region, after Mauritius as second.
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adoption of sound policies and legislations
that stimulated the developments across all
sectors.
A Bright Economic
Outlook
Since the beginning of 2010, the UAE
economy has been gaining its growth
momentum and showing strong recovery signs.
The above mentioned indications demonstrate
the country’s resistant potentialities in
overcoming the worst situations that had
severely impacted the development’s progress
at all levels. This success was not a coincidence
or a result of a temporary effort, it was the
fruit of the sound visionary and thoughtful
planning, supported by the attentive followup of the UAE leadership to release the hidden
potential in the economy and stress the
openness to foreign investment through the
Why UAE ?
Packages
of
incentives,
favorable
procedures and sound economic legislations
were introduced to stimulate the investment
environment. New and modified laws
on foreign investment and competition
protection in addition to amendments to
laws on intellectual property, patents and
industrial designs protection were passed.
These adapting measures did not only mitigate
the crisis’s challenges but also have become
essential factors for the future growth.
The strong economic performance has
been embodied in various estimations and
projections which have wildly shared the
conviction that the positive economic growth
has become a fact on the ground, rather
than an expression of wishful thinking. The
table below shows a variety of projections by
different sources.
HSBC Bank
Economic Forecasts
The UAE Ministry of Economy
The National GDP is expected to grow 3% to
3.5% in 2011. Inflation will be balanced between 1
to 1.5 per cent.
The UAE Central Bank
Driven by the rigorous diversification strategy of
economy, rapid industrialization, small and medium
enterprises increasing contributory role, and
expansionary shares of infrastructure, trade, service
sector and tourism, economy is forecast to grow by
4-5 per cent in 2011. Inflation will be lower than 3
per cent.
International Monetary Fund (IMF)
The UAE’s overall economic growth will remain
steady in 2011 at 3.25%. A closer breakdown
suggests a pickup in the UAE’s non-oil GDP growth
of 3.25 % in 2011, compared to 2% in 2010, driven
by strong tourism, logistics, and trade in Dubai and
large public investment spending in Abu Dhabi.
Standard Chartered Bank
The UAE economy is gaining the growth
momentum and will grow at 4 percent in 2011. The
main contributors to GDP will be hydrocarbons
(29.2%), ‘other services’ (13%), manufacturing
(16%), construction (11%), trade (9%) and financial
services (6%). Dubai’s services and trade sectors to
drive growth in 2011, while infrastructure plans in
Abu Dhabi will boost the construction and services
sector.
Reuters
The UAE economy is expected to expand by 3.4
per cent in 2011 and annual inflation to be 2.5 per
cent in 2011.
Institute of International Finance (IIF)
The turmoil in the Arab world could indirectly
boost the UAE’s economy through channels such
as higher production of crude oil; larger revenues
due to a spike in oil prices; and a diversion the
regional trade, transportation, tourism and finance.
Dubai’s economy is expected to recover significantly,
growing by 3.5 per cent in 2011 compared to 1.7
per cent in 2010. The UAE’s current account was in
a surplus of USD 22 billion or 8.6 per cent of GDP
in 2010 due to an increase in oil exports resulting
from higher oil prices and a modest increase in
production.
The UAE’s recovery is building momentum and
it’s clear the new growth cycle is underway. The
UAE’s Purchasing Managers Index rose by 2.8%
m/m reaching an unprecedented 57.5 in April 2011,
its highest level ever. The m/m increase was driven
by a sharp rise in current output and new orders,
while employment grew at the sharpest rate for 16
months.
Roubini Global Economics (RGE)
Growth is gradually picking up in the UAE as
credit growth unlocks and global growth supports
Abu Dhabi’s oil and Dubai’s re-export trade. Thus, a
modest further expansion from the 3.2% preliminary
growth in 2010. Regardless, recent macro indicators,
including the PMI, export data and retail proxies
point to a gradual improvement in output. The pace
remains well below that needed to spark a robust
recovery. The UAE growth is expected to remain
below potential (about 4.5%) through 2012.
Economist Intelligence Unit (EIU)
The UAE real GDP is expected to record a growth
at 3 % in 2010, getting up to 4 % in 2012, and 6% in
2013 and 2014, respectively. Various sectors include
travel and tourism, financial services, professional
services, transport and logistics, trade and storage
and construction are identified as vertical building
block sectors. Efforts to boost trade using for
example Jebel Ali Port and Jebel Ali Free Zone are
keys mechanism to achieve this objective.
Major macroeconomic indicators and
meriting certificates by global financial and
economic organizations show that the UAE
enjoys a stable and sustainable economy. Its
society is articulated and well-educated; it
enjoys world-in-class facilities of education,
health, housing and law and order. Its culture
is dynamic with full of life that combines
traditions with modernity. It has become
a global hub of foreign direct investments,
trade, services and tourism. The successful
implementation of Government Strategy 20112013 and the UAE Vision 2021 will bring all the
desired results in the coming days.
The resilient macro-economy of the United
Arab Emirates endorses the wise policy
initiatives of its leadership. Throughout the
years, the UAE economy proves to be dynamic,
vibrant, diversified and based on strong and
solid foundations.
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have already being sending the positive signals
of the UAE’s economic growth, proving that
the country is placing itself on the right path
to achieve all the MDGs prior 2015.
The UAE: A Progressive
Economic Policy
The formation of the fundamental
economic policies has always been a unique
feature of the UAE economic model. They are
formulated in a way that can be described as a
road map that takes into account the changing
economic, political and social circumstances.
This efficient methodology has and will always
be a main pillar of the UAE economy.
The global financial crisis has not only laid
some challenges in the domestic economy
but also stimulated the UAE policy makers
to reshape and modify the long–adapting
diversification strategy to be more focused on
well-defined and selected economic sectors
which would serve as engines for a sustained
growth on the long run.
Diversified but integrated policy measures
were initiated to achieve the UAE’s Millennium
Development Goals (2015). As a result, local
and global indicators, rankings and forecasts
The Policy of No Tax
In general the UAE has been following
a non-tax policy. All free zones therefore
benefit from zero income tax. Individuals
and organizations are also exempted from
paying taxes to the government except the
foreign banks that operate in the country. The
income tax exemptions policy, as one of the
major economic policies in the UAE, remains
and will always be a preferential policy by the
government. Its role as a part of the UAE’s
supportive fiscal policy is very significant in
terms of increasing foreign direct investments
(FDI) and consumer spending and developing
a more vibrant private sector.
Fiscal Policy and the Global
Financial Crisis
The stabilization of the macroeconomic
environment mainly depends on the fiscal
policy of the country. The global economic
distress did not only affect the growth of
the developments but also influenced the
government’s strategy. As an immediate
response, the UAE aimed its current fiscal
policy at restoring confidence in the economy,
in addition to the continuing diversification
strategy and increasing private sector
employment.
As a response to the challenges imposed
by the crisis, the government issued a
set of measures to anchor its fiscal policy
management and to improve coordination
between the various levels of government.
As a regulatory response to the crisis, the
UAE Central Bank offered a set of financial
packages to help the banking sector to stand
in the face of the crisis. An overdraft facility
of USD 13.6 billion, a CD swap facility, and
discounting of government bonds were
offered. In addition, USD 19 billion was injected
by the Ministry of Finance into the Local
Banks. The government has also guaranteed
all deposits at banks that are licensed
Why UAE ?
and operating in the UAE for 3 years.
At the emirate level, the government of
Dubai established Financial Support Fund
in 2009 to provide financial support and
liquidity to Government and GovernmentRelated Entities (‘GREs’) that are undertaking
projects of strategic importance within Dubai
that contribute towards the overall economic
development of the Emirate. A USD 20 billion
bond program was initiated to provide GREs
with loans on a commercial basis.
Even though, the constitution grants the
right for each emirate to exercise power in all
matters that are not assigned to the jurisdiction
of the federal government which among
them are the fiscal policies of the emirates,
they have to go in conjunction with the
consolidated federal fiscal policy. To serve this
purpose, the Ministry of Finance launched the
Department of Co-ordination of Fiscal Policies.
Some of its responsibilities are collection
and preparation of consolidated financial
statements on revenue and annual federal
and local expenditures for the State of the
United Arab Emirates, study the consolidation
of fiscal policy in the macroeconomic
framework medium-term at the State level
and Follow up the implementation of the
decisions of the Co-ordinating Council of the
financial policies.
How the UAE Controlled
Inflation
The fiscal policy has played a very critical
role in achieving the delicate and complicated
objective of a balanced growth to be neither
hyper nor cooled one, yet to be more sustained
and de-inflated.
At the time of the crisis, the UAE has
accomplished a unique profile of moderate
growth in parallel with low inflation rate. This
profile enhances the attractiveness of the
investment climate in terms of maximizing the
profits and minimizing the costs. The results
can be easily perceived by comparing the
estimates of growth and inflation rates before
and during/after the crisis. The last two years,
they ranged between 2.5% and 4% for growth
rates, and 1.5% and 3% for inflation rates.
Prior the crisis figures went beyond 8% for
economic growth and 11% for inflation rate.
The fulfilment of such a profile has been a
natural outcome of the various measures that
were employed to curb the global financial
crisis pressures.
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Steady Spending in Infrastructure
Projects
The government’s investments in the
infrastructure projects have protected the
sector from the adverse effects of the global
credit crunch. Thus, it has continued its growth
with normal rate, heading and driving the
growth of the entire economy.
infrastructures in the city. Dubai’s planned
investment of USD 2.04 billion in 2011, which
constitutes a 23% of its total budget share, will
definitely stimulate the economic growth and
create a financial stability.
Government Expenditure
and Revenue
The private investment in the project
activity went down in 2009. The reason drove
the public sector to increase its share in order
to preserve the growth pace. According to a
report issued by MEED, an economic media
house, in the first half of 2011 that the project
portfolio in the UAE remained large, estimated
at USD 1.9 trillion.
The above mentioned trend has been
embodied in the consolidated expenditure of
the UAE government which increased from
USD 69.2 billion in 2008 to USD 78.8 billion in
2009 or by 14%. This increase in government
expenditure occurred at a time when
government revenue dropped by 35% from
USD 122.7 billion in 2008 to USD 78 billion in
2009, mainly due to the fall in the oil prices.
These large expenditures and the concurrent
drop in government revenue completely
wiped out the budget surplus in 2009.
Abu Dhabi and Dubai are continuing
the developments of their infrastructure at
all fronts with generous budgets; USD 15
billion has been planned by Abu Dhabi to
be invested to enhance and established new
The figure on Public Revenues Stream
Growth show the growth of the public
revenues streams from 2001-2009 and the
latest available breakdown of the revenues
streams (2007).
Why UAE ?
Public Revenues Streams Growth (Millions per USD)
70,000
60,000
50,000
Customs
40,000
Other Tax Revenue
30,000
Oil and Gas
Enterprises Profits
20,000
Other Non-Tax Revenue
10,000
0
2001
2002
2003
2004
2005
Public Revenues (2007)
2006
2007
Public Expenditure (2007)
2.54%
Other Tax Revenues
77.06%
Oil and Gas
13.31%
Domestic
1.51%
Foreign
10.81%
Development
13.31%
Wages & Salaries
2.54%
Enterprise Profit
Other Non Tax
Revenues
22.18%
2.54%
Goods & Services
13.31%
Subsides & Transfers
2.54%
Customs
13.31%
Other
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Chapter 3
The Exchange Rate
Currency and Monetary
Policy: A Strong Dirham
for a Healthy Economy
The monetary policy is a powerful
economic tool, especially when used in
coordination with a solid fiscal policy. The
UAE provides a good example.
Ever since the federation was formed in
1971, the UAE considered a stable monetary
policy essential for a strong, sustainable
economy. A well designed approach was
put in place to replace the previous multicurrency system and come up with a new
national currency. A national currency was
introduced in 1973, when the UAE dirham
(AED) began circulating. The dirham replaced
the Qatari Riyal, Dubai Riyal and Bahraini
Dinar, which were variously used as legal
tender in the several emirates until that date.
In 1980, the UAE Central Bank was founded
and tasked with the “organization of the
monetary, credit and banking policy and the
country.” the bank was in fact established to
replace the UAE Currency Board; which served
a need as a currency issuer for the new state.
Why UAE ?
The UAE Central Bank (CBUAE) has
maintained a stable, conservative monetary
policy that, at all stages, helped both the
government and the private sector plan for the
future in a healthy manner. By adopting the
dollar peg in as early as 1981; a fixed exchange
rate for the dirham against the US dollar (at
AED3.6725 equal to one US dollar), which
consequently provided a stable environment
for all dollar-based external transactions.
Three decades later, the decision is still
proving to be right, especially that it has
stabilized the value of the UAE dirham.
Between 1972 and 1980, the exchange rate
has declined from AED4.386 to the US dollar
to AED3.707 to the US dollar.
The business community comprising of
traders, industrialists and entrepreneurs has
widely harvested the benefit of strategic
financial planning in the context of a stable
currency exchange rate. With the fact that the
majority of UAE’s foreign trade is being paid in
US dollar, it becomes clear why the dollar peg
is crucial for a country such as the UAE.
In fact, given the features of the UAE
economy, three factors - small economy,
openness and nominal domestic shocks
resulting from large monetary expansion - call
for a fixed exchange rate regime for dirham.
While this is only a primary element of the
monetary policy, it reflects the way this policy
is being implemented nationwide and how
helpful it becomes across all industrial and
commercial sectors. It simply complies with the
UAE’s fundamental principle of the facilitating
government.
Currently, UAE has adjusted itself to shifts in
international financial turmoil, and it keeps its
currency steady against the dollar. This state
of affairs should continue for a few more years,
even though increasing diversification of its
economy, especially towards financial business,
will increasingly warrant a switch to flexible
exchange rates. It is also important that as
the bulk of UAE`s export income is so typically
concentrated in a single area, managing a
floating-currency regime would be pretty
awkward.
What Does CBUAE Do?
Federal Law No. (10) of 1980 has given the
Central Bank wide authorities, among which
are: organization of the monetary, credit
and banking policy and the supervision of
its implementation. This has lent support
to national economy and led to stability of
currency. See Table 1 for further details.
In addition, the Central Bank is responsible
for implementing other monetary tools
that help stabilize the economy and provide
businesses with subtle measurements of the
global trends and how they affect the local
business community.
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Chapter 3
Other Monetary Tools
The Central bank also observes a selection
of monetary indicators and tools to guarantee
the health of the monetary and banking
system in the UAE. For example, the CBUAE
requires all banks operating in the country to
reserve at the Central Bank without interest;
14% of their current, savings and call accounts,
and 1% only on time deposits. Controlling the
level of such reserves is traditionally one f the
tools used to manage the country’s monetary,
which in turn will impact the amount banks
provide in loans to the economy.
In addition, banks are required to keep at
the Central Bank 30% of their Dirham deposits
abroad with non-resident banks (including
their Head Office and branches in the case of
foreign banks). The ratios on local customer
deposits apply uniformly to Dirham and other
foreign currencies.
Also, the capital adequacy ratio has
been closely managed and UAE banks are
Why UAE ?
now well capitalized with respect to Basel I
requirement. The capital adequacy ratio in the
UAE should not be less than 10% according to
CBUAE’s requirement, compared to 8% Basel
requirement, which was increased to 11%
starting September 2009 and 12% starting
June 2010.
The CBUAE also manages a plethora
of tools necessary to maintain a healthy
monetary market. These include an active
Dollar/Dirham swap unit to provide banks with
Dirham liquidity when needed, an advances
& overdraft facility for banks, a prudential
regulation and CBUAE issuance of Certificates
of Deposits and Repo facilities on Certificates
of Deposit (CDs) held.
However, and because central banks are
usually looked at as the friend when needed,
the CBUAE started a new division back in 2008.
The Liquidity Support Facility was set up in
September 2008, when banks were facing a
shortfall in liquidity due to the global financial
crisis. Under this facility, a bank can submit its
portfolio of securities to the Central Bank of
the UAE for evaluation. The Central Bank will
accept those securities as eligible which satisfy
its guidelines and assign a line to the bank
based on the value of the eligible securities
after adjusting for haircut applied to each such
accepted security. The bank can then access
Central Bank funds on a weekly rollover basis
for as long as they need the facility.
The Healthy Results
The UAE’s sound monetary strategies has
led to the establishment of a strong and sound
banking system which is among the best
banking systems in the world. The fast growth
of the country’s economy was reflected in the
great expansion in the activities of the banks
operating in the country, which provided an
added challenge to the monetary bodies.
As a result, cash in circulation increased
from US$ 572 million in December 1980 to
US$13 billion in December 2010. Similarly,
Money Supply (M1) increased from US$1.99
billion to US$63.4billion and private domestic
liquidity (M2) from US$6.4 billion to US$214
billion during the same dates.
Credit facilities granted to the private sector
by banks operating in the country increased
from US$6.8 billion at the end of December,
The UAE Central Bank is Authorized to:
1980, to US$265 billion at the end of December
2010. Similarly, foreign assets increased from
US$5.3 billion to US$63.6, monetary deposits
from US$1.42 billion to US$53 billion, capital
and reserves from US$1.5 billion to US$74.3
billion during the said dates. By the end of
2010, total assets/liabilities of the balance
sheet exceeded US$438 billion.
Issue currency per the provisions of the federal law no 10 of 1980;
Ensure support for currency and its stability inside and outside the country as well as
its free convertibility into foreign currencies;
Ensure a credit policy that helps in achieving balanced growth of national economy;
Organize and develop banking as well as monitor the efficiency of the banking system;
Function as the Bank of the Government;
Offer monetary and financial advice to the Government;
Maintain government reserves in gold and other currencies;
Act as bank for banks operating in the country;
Act as financial agent of the government to the International Monetary Fund and
World Bank as well as other Arab or international monetary institutions and funds;
Handle all state transactions with such parties.
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Chapter 3
The UAE: an Open and
Flexible Trade Policy
The UAE has adopted several trade policies
that tone with the international standards
and guarantee the rights for both consumers
and traders. They are in line with the strategy
of the UAE government to create an enabling,
fair and balanced trade environment that is
conducive to economic growth. The policies
are not intended to control traders but to
generate an atmosphere of transparency
in the market, end monopoly policies and
prevent practices aimed at jeopardizing the
country’s economy.
With a clear objective to promote a
progressive economic model, the UAE
always aim at harmonizing its standards
and simplifying its trade procedures. To
complement its investor-friendly fiscal and
monetary offerings, the UAE has early
adopted a trade policy that facilitates
business activities at various levels and helps
corporations expand and profit.
Why UAE ?
Although an effective trade policy has
been in place since the federation back in 1971,
the Ministry of Foreign Trade was formed in
2008 to play the role of a national hub for all
trade activities and be the contact point for
international parties looking to do business
with the UAE. The Ministry’s mandate also
includes negotiating, approval and signing of
trade agreements with international partners.
(See next chapter).
In 1994, the UAE became a contracting
party to the General Agreement on Tariffs
and Trade (GATT), and subsequently became
a member of the World Trade Organization
(WTO) in April of 1996. This engagement
with international organizations stems from
the UAE’s commitment to international trade
and its obligations under the multilateral
trade policy regime. Today, the UAE has
various regulations in place at both the local
and the federal levels that aim to strengthen
the country’s position as an open economy,
one that welcomes international trade and
competition.
In order to establish a free market
environment, the UAE has adopted a series
of trade regulatory initiatives to facilitate
business exchange and growth, both locally
and beyond borders. As briefed below, various
frameworks of the trade policy are actually
designed in a way that removes the hassles of
bureaucracy while enforcing business friendlyregulatory practice.
Competition and
Consumer Protection Law
Anti-competitive practices are dealt with by
the Ministry of Economy, in accordance with
the Consumer Protection Law of 2006 and its
Implementing Regulations of 2007. The law
No: 6 of 2006 covers and tackles issues relating
to the rights of consumer, responsibilities
and liabilities and specifying penalties to be
imposed on people for selling substandard
goods. The Regulations deal in greater detail
with anti-competitive and monopolistic
conduct, with the focus so far being on
abnormal movements in prices resulting from
certain prohibited practices. The Consumer
Protection Department is empowered to take
the necessary actions and measures against
prohibited monopoly practices and dealings
that cause damage to the national economy or
the consumer interest.
In order to protect consumers from
unjustified price increases, the government
has just introduced new tough measures
against market manipulation. The new federal
law for consumer protection, enforced on
July 1, 2011, contains fundamental changes
to the previous law. The new changes are
intended to restrain market offences and
boost confidence between consumers and
traders. Up to USD 272 thousand as a plenty
can be charged in case of monopoly of certain
products occur or trading in counterfeit items
in the country.
In principle, the UAE market should be
highly competitive given the low import
duties and the absence of non-tariff barriers.
However, rather than encouraging vigorous
competition, the UAE has historically
adopted, and to a large extent still does
adopt, a cautious and conservative attitude
as evidenced the protections afforded to local
registered agents under the UAE Commercial
Agencies Law. Although intra-competition
is not completely covered here, a bundle
of various laws serve this need. The Labour
Law for example prohibits companies from
acquiring staff from competitive entities.
The Ministry of Economy monitors the prices
of 15 goods, mainly food products, in order
to contain the negative effects of cartels and
other anti-competitive practices. The federal
and emirate governments have a role in the
price determination or approval of a number of
services, including telecommunications, postal,
and medical services. Electricity, water, and
gas prices are set by state-owned companies at
the emirate level.
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Chapter 3
such as the Dubai Financial Center, Dubai
Multi Commodities Centre and the Media
Production Zone.
Smooth Licensing and
Foreign Ownership
To be able to do business in the UAE, a valid
trade license is mandatory, and is usually carried
out at emirate-level economic departments.
It’s a norm now to perform all registration and
renewal procedures electronically across the
country. The UAE Commercial Companies’ Law
provides flexible regulations regarding the
type of business entities and the formulation,
with added flexibility varying from one
emirate to another.
Under the law, the trading license can
be obtained by either majority-owned
UAE companies or by 100% foreign-owned
branches of foreign companies. However, a
large percentage of imports take place under
the Trade Agencies Law, whereby the trading
license is held by exclusive commercial “agents”.
Usually, a local agent is required to distribute
imported products in each emirate.
However, a large percentage of business
and trading activities, including exports
and re-exports, is done in free trade zones;
which offer 100% foreign ownership among
other benefits.
Practically, each emirate
has at least one free trade zone for general
trading purposes. Dubai, in addition, has
a plethora of special-purpose free zones,
Why UAE ?
Standardization Law
The UAE Federal Law No. 28 of 2001
specifies the standards of a material, product
or service in order to ensure its safety, quality,
reliability and compatibility with international
recognized codes. In this regard, all imported
and domestically produced goods that are
to be sold in or imported to the UAE have to
comply with the official standards as approved
by the Emirates Authority for Standardization
and Metrology (ESMA). Manufacturing units
also have to obtain quality accreditation.
ESMA was established 2001 as the sole
standardization body in the UAE. It focuses
on developing and promoting the application
of standards and compliance in industry and
products in the UAE. In addition, ESMA has
a clear mandate to conformity assessment
as well as catering for health, safety and
environmental protection through the strict
implementation of these regulations.
The priority is to align national standards
on international norms. ESMA has over
2000 standards in place, of which 95% are
based on GCC standards that are generally
based on international standards, and 5%
are UAE standards. About 30% of the 2000+
standards in force in the UAE are compulsory
(technical regulations). In
national standards on any
suppliers may declare
internationally accepted
declaration is accepted.
the absence of
type of products,
compliance to
standards; self-
While ESMA oversees the whole country,
the organization has recently authorized
Dubai Central Laboratory to be the designated
national “laboratory” for calibration and
to serve as a reference point for national
measurement of quantities of mass, length,
pressure and temperature. Established in
1997, DCL acts as the Government of Dubai’s
watchdog over all goods and products
imported to the emirate.
To gain information on standards and
specifications in details please go to the
regulator website: (www.esma.ae).
Rules of Origin
The UAE applies a mixed approach in terms
of Rules of Origin that works to the best of
its diversified trading and manufacturing
activities. By combining both non-preferential
and preferential rules of origin, the country is
able to sufficiently serve the diverse needs of
its growing exports and re-exports sector to
both regional and international markets.
As part of its obligations under the GCC
customs union, the UAE applies the same nonpreferential rules of origin as the other five
GCC members with respect to imports from
other countries. Under the non-preferential
scheme, products are generally considered as
originating from the country where they are
wholly obtained or where they underwent
substantial transformation, with at least 40%
of local value added. The UAE’s preferential
rules of origin are also generally based on a
value-added content criterion.
In 2009, the Ministry of Economy (in
cooperation with the concerned chambers of
commerce) issued over 139,000 certificates
of origin, and a growth rate of over 12% in
2010; the momentum is actually consolidating
the strong position of the country’s trade and
industry sector.
According to Ministryof Economy, there are
10 types of these certificates associated with
various industries and standards. The Ministry’s
figures also reflect active distribution of
exporting activities over the seven emirates
spanning the various types of certificates.
The Abu Dhabi office issued 19,916
certificates including 2,598 certificates for
Arab nations, 15,390 for Gulf countries,
and 1,958 certificates for foreign countries.
Dubai issued 8123 certificates of Arab origin
and 51,464 for Gulf, with a total of 59,587
certificates. Ras Al Khaimah issued 3232
certificates issued for Arab countries, 24,714
for Gulf, and 5,197 globally, marking a total
of 33,143. Sharjah, Ajman, Um Al Quwain and
Fujairah contributed a total of 13,259, 10,285,
2,541 and 362 certificates respectively.
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Chapter 3
Tariffs
Customs Procedures
As part of the UAE’s commitment to
promote fruitful economic cooperation with
its trading partners, the country grants at
least most-favored-nation (MFN) treatment
to all its trading partners. In addition, it has
implemented all of its commitments as a full
member of the WTO in terms of customs
valuation.
As a member of the GCC, the UAE has been
applying the “single port of entry” principle,
therefore items imported in the UAE (or any
other GCC State), and destined for another
GCC market, are subject to customs duty only
at the first point of entry into the GCC. Customs
procedures and the required documentation
are the same for all GCC members.
Practically speaking, The UAE has a low
and simple MFN tariff; all rates are ad valorem
(except on tobacco), and there are no tariff
quotas, no nuisance rates, and no other duties
and taxes on imports. Its tariff is based on
the GCC’s Common External Tariff (CET),
which consists of an across-the-board rate
of 5% together with a list of 421 tariff lines
that are duty free amongst GCC countries,
mainly agricultural raw materials and basic
food products, pharmaceutical products, and
other products including certain papers, books
and magazines, unwrought precious metals,
vessels and airplanes; in the case of the UAE,
alcoholic beverages are subject to a 50% tariff;
and the alternate tariff on tobacco products
is 100% or AEd100 (~$30) per 100 sticks of
cigarettes or AED800 (~$218) per kilogram of
raw tobacco, whichever is higher.
Nationwide, although each emirate has its
own customs authority, customs procedures
are the same throughout the UAE, and customs
requirements are kept to a minimum so as
not to impair the UAE’s active transshipment
and re-export business. Recent figures show
that over 80% of UAE imports are cleared by
Dubai Customs and approximately 10% by Abu
Dhabi Customs. At both Dubai and Abu Dhabi
Customs, the entire customs declaration can
be made electronically.
To maintain the UAE’s supportive attitude
towards various businesses, the UAE’s tariff
displays positive escalation, from first-stage
processed products, with an average tariff of
4%, to semi-finished goods, with an average
rate of 4.9%, and fully processed products, on
which tariffs average 5.4%. Even with such a
small-margin tariff, the purpose is to further
empower UAE-based industries and processing
operations.
Furthermore, industrial inputs such as
equipment, spare parts, raw and semimanufactured
materials,
and
packing
materials necessary for industrial production
are exempted from duty under a federal
law relating to industry assistance. Duty and
tax concessions are also granted under the
“import for re-export”, “temporary admission”,
or “transit” regimes.
Why UAE ?
Import Control
It is essential to realize that although the
UAE is a liberal country with a free trade
economy, it still shows respects to certain
legal and moral boundaries when it comes
to imports. Absolute import prohibitions are
maintained for various reasons, including
international conventions, environmental
protection, health and safety, as well as
religious and moral considerations.
They cover all kind of drugs; asbestos; used
pneumatic tires; industrial waste; forged and
duplicate currency; “Habara” falcons; ivory
and rhinoceros horn; live camels; any printed
material that does not adhere to religion or
morals that is aimed at causing corruption
and disorder; or materials prohibited under
any law in force in the country. In addition, all
imports from Israel are prohibited.
Since 1992, the UAE applies a strict zero
tolerance policy against copy rights piracy and
intellectual property rights violations. Aset
of federal laws were enforced in the year of
1992 to protect intellectual property rights,
computer software, industrial designs and
patents as well as copyrights and trademarks.
With intellectual protection spanning such a
wide array of industries, the country was able
to provide both local businesses and foreign
investors with suitable means to protect their
respective rights.
In fact, the intellectual properties laws
provide for measures aimed at preventing
violation of intellectual property rights,
including preventive seizure, confiscation,
removal or destruction of products and
equipment, as well as elimination of the
effects of the illegal acts, and compensation.
In addition, Punitive Law No. 3 of 1987
specifies imprisonment of up to three years
for IPR violation. Customs is entitled to
take measures at the border to prevent any
violation of intellectual property rights, in
accordance with the above-mentioned laws
as well as under Customs regulations. These
measures can be taken upon demand of the
right holder based on a judicial order.
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Chapter 3
projects to preserve its global stand in the
global trade market.
Foreign trade’s value includes the values
of non-oil export, re-export and import of
the goods between the UAE and the world’s
countries.
Foreign Trade
The growth rate of the
Foreign Trade (Billions per USD)
UAE’s Foreign Trade has been
steady for the last ten years
except in the year of 2009
when the global foreign trade
dropped by 13% due to the
economic turmoil. The year of
2010, however, saw a strong
coming-back up-trend when
the UAE’s total foreign trade
increased by 14 percent, a
value of USD 25.6 billion, to
reach to USD 205.42 billion.
2001 02
03
04
05
06
07
08
09 2010
The continuing growth in
foreign trade reflects the
strong commitment of the country through its
The UAE reported a balance of trade surplus
free trade policies and encouraging innovative
equivalent to USD 50.9 billion in 2010. The main
Foreign Trade (Billions per USD)
250,00
200,00
Export
150,00
Re-export
Import
100,00
Total Foreign
Trade Value
50,00
0
2000
01
02
03
04
05
06
07
08
09
2010
Export
Re-export
Import
2000 01
Why UAE ?
02
03
04
05
06
07
08
09 2010
Top Ten Trade Partners (2010)
Other’s 40%
UK 3%
KSA 3%
Iraq 3%
Japan
4%
21%
India
7%
China
6%
US
5%
Iran
Germany 4%
Switzerland 4%
trade deficit countries were China, the U.S.A.
and Germany while the main trade surplus
countries were Iran, Iraq and Afghanistan.
Understanding the most important
trade partners and markets for the UAE is
very essential to the decision makers of the
foreign trade policies. The foreign trade
structure shows that there are controlling
commodities that affect the overall goods
movement of the UAE. These goods are gold,
diamond and precious stones. The largest
trade partner of the UAE is India, with a
share of 21.7 percent of the total foreign
trade with the UAE. However, India ranks
sixth if gold is excluded and China becomes
the first, the rest remains the same.
Major Trade Partners
Export to
Import From
Re-export to
India
India
India
Switzerland
China
Iran
KSA
USA
Iraq
Brazil
Germany
Afghanistan
Iran
Japan
Bahrain
Norway
United Kingdom
KSA
Pakistan
Italy
Qatar
Oman
France
Hong Kong
Qatar
South Korea
Belgium
Kuwait
Saudi Arabia
Kuwait
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118
Chapter 3
a 27% increase from 2009. It is important to
mention that the average annual growth rate
since 2001 is 30.67%.
Export
As a major component of the UAE foreign
trade, export’s share has been increasing
from 5% in 2000 to 11% in 2010. This increase
is not only attributed to the growth of the
export’s value but also to the changes that
occur to the other components, import
and re-export. In 2010, the value of the
UAE’s export reached USD 22.63 billion,
Main Export Commodities (2010)
Jewellery Precious Metals 51.70%
Total of Remaining 17.66%
Articles of Iron / Steel 1.80%
Salt, Sulphur & Cement 1.80%
Copper & Articles 2.20%
Mineral Fuels / Oils 2.20%
Iron & Steel 2.69%
Aluminium Articles 2.69%
Sugar & Confectionary 3.09%
Ship, Boats & Floating 7.09%
Plastic & Articles 7.09%
Why UAE ?
50 percent of the goods exported from the
country are gold and precious stones which
are mainly exported to India and Switzerland.
Other main export commodities are crude oil,
natural gas, dried fish and dates.
The UAE export penetrated 198 markets
around the globe in 2010. However, more
than 77% (USD 17.32 billion) of it was
concentrated in 12 major markets, as shown in
the figure. These twelve markets have been
playing a significant role in the development
of the UAE export. 92% of the growth in
the UAE export in 2010 is attributed to the
growth of export in these markets. India
and Switzerland remain as the largest two
markets of the UAE export.
Re-Export
Main Re-export Commodities (2010)
1.37
Optical Instruments
1.17
Articles of Iron / Steel
1.08
Cereals
17.77
Total of Remaining
Jewellery Precious
Metals
39.64
The re-export sector, the second most
important component in the UAE’s foreign
trade with a constant share of 25%, reached a
value of USD 50.54 billion in 2010. This steady
growth is a result of the government’s ongoing
support to this vital sector through a variety
of different initiatives. Major indicators such
as Customs Procedures, Import and Export
Cost and the infrastructure of the seaport and
airports, have shown the high competitiveness
that the UAE enjoys. Today, it is a major global
player in this industry, ranking first among
Arab countries and sixth globally.
The growth rate of this sector has been
fluctuating especially in the last five years. It
grew 26% in 2010 while in 2006 it was -6% and
in 2009 -9%. This irregular movement is driven
by the irregular demand of the international
market.
The main re-export commodities are
diamond, vehicles, gold, platinum, jewelry and
telephones.
11.61
Vehicles / Parts
11.01
Neuclear / Machinary
9.03
Electrical Appliances
3.57
Aircraft / Parts
1.97
Rubber & Articles
1.79
Man-made Articles
119
120
Chapter 3
increased to USD 251.22 billion in 2008. As a
result, the import in 2008 year grew by 46%.
Import
It is clearly noticeable that the UAE’s import
makes up to 64 percent of the UAE’s total
foreign trade in 2010. The high percentage
is mainly due to the high demand by the
increasing population and to the important
role of the UAE as a major re-exporter in the
region. In 2010, import value had an increase of
8% reaching to USD 131.87 billion comparing
to USD 121.53 billion in 2009.
The UAE has experienced some sudden
growth periods in its import as shown in the
diagram (). These sudden jumps are mainly
attributed to the growth of the national GDP,
credit facilities’ volume and money supply. In
2007, the national GDP grew by 23%, credit
facilities’ grew by 47% whereas money supply
Main Import Goods
Why UAE ?
2.70
Articles of Iron / Steel
2.20
Plastic & Articles
1.60
Mineral Fuels / Oils
30.40
Total of Remaining
28.70
Jewellery Precious
Metals
11.10
Machinery
8.30
Vehicles / Parts
8.30
Electrical Appliances
3.90
Aircraft / Parts
2.80
Articles Iron / Steel
The 2008 economic crisis had negative
effects on the variables that correlate with
the import activity. However, the federal
government immediately acted smartly to
preserve the growth trend of the national
economy by increasing the money supply
through its different entities. The 8% increase
of the import’s value, therefore, was a result of
these strategic decisions.
In terms of goods imported, gold and
precious stones make 29% percent. Other
main import goods are machinery, transport
equipment, chemicals and food.
Trade in Services
The UAE’s foreign trade strategy is focused
on the development of the trade in services
sector. The value of commercial services that
were trade in 2010 reached USD 53 billion,
(USD 42 billion for imports and USD 10 billon
for exports) according to the World Trade
Organization report.
Foreign Direct Investment (FDI)
The National Bureau of Statistics, the federal
centre responsible to issue socioeconomic and
economic data, issued a report in April 2011
stating that the total FDI reached USD 120,717.5
million in 2008, an increase 6% from 2007. The
total FDI, according to that report, is divided to
three groups: FDI, other Foreign Investments
and Foreign Investments in Portfolios. The
table below shows the contribution of each
group to the total FDI in the years of 2007 and
2008 (USD, million).
2010), the UAE has become ideal and
attracted more than USD 73 billion as foreign
direct investment (FDI) since it was created
nearly four decades ago to emerge as the
second top capital recipient in the region.
Cumulative FDI flow into the UAE was totaled
around USD 73.4 billion. Investment, business
and people’s friendly policies are contributing
positively to seek greater inflows of the FDIs
in the country each year. Due to its popularity
as a foreign direct investment destination,
Dubai has been named as “Middle East City
of the Future 2010-11” by fDi Magazine. Abu
Dhabi and Dubai were also ranked as the
most favorable destinations of choice for
FDI by the AT Kearney FDI Confidence Index
Report. These rankings prove the strong
economic fundamentals that the country
enjoys from the right infrastructure for all
sectors to flourish to the flexible businessfriendly policies that adapt with the current
state of the economy.
Banks and financial institutions sector
was the leading attracting sector in 2008, a
share of 57%, followed by electricity, gas
and water production
and distribution sector
Type of Investment
(10%) and construction
FDI
sector (8%). The table
below shows the FDI
Other Foreign Investments
per sector.
Foreign Investments in Portfolios
According to UN
statistics
(December, Total
Foreign Direct Investment (FDI) per Sector (2008)
2007
2008
36,492.04
45,283.32
74,989.52
72,998.23
2,122.53
2,435.94
113,604.08
120,717.49
57.7%
Financial and Insurance
Institution
10.0%
Electricity, Gas and Waters
0.7%
Hotels and Restaurants
9.6%
Real Estate and Professional
Services
4.2%
Manufacturing Indusries
3.5%
Exctraction Industries
0.1%
8.1%
Construction
4.3%
Real Trading
1.7%
Transport, Storage and
Communications
0.04%
Agriculture and Hunting
0.01%
Health
0.0%
Education
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122
Chapter 3
UAE: A Distinguished Global and Regional Position
Indicator
Organization
Rank
Why
Friendly doing-business policies
33 (Globally)
Government Supported Initiatives
2 (Arab
Countries)
Simple property registration
procedures
rd
Doing Business
2012
The World Bank
nd
Different options of acquiring credit
Global
Competitiveness
Index (2010
World Economic
Forum
27th/139
(Globally)
3rd(Arab
Countries)
Quality infrastructure
Innovation and efficiency driven
economy
Stable macroeconomic environment
Ability to finance
Efficiency of customs, export and
import procedures
Global Enabling
Trade Index
(2010)
World Economic
Forum
16th (Globally)
1st (Arab
Countries)
Availability and quality of transport
infrastructure and services
Availability and use of ICTs
Attractive and encouraging business
environment
Domestic and foreign market access
Good Physical Security
Human
Development
Index 2010
32nd (Globally)
UNPD
1st (Arab
Countries)
Better GDP per capita
Good health and education systems
Quality Information Technology
infrastructure
ICT friendly-market environment
Political and regulatory framework
Networked
Readiness Index
(2010-2011)
World Economic
Forum
24th (Globally)
High government and business
readiness
1st (Arab
Countries)
High individual readiness and usage
High ICT penetration rate
One of government prioritized
sectors
Quick market to adapt new
technologies
Why UAE ?
Indicator
Organization
Rank
Why
A significant improvement in the
assessment of its cultural resources
A strong affinity for Travel & Tourism
Travel and
Tourism
Competitiveness
Index (2011)
World Economic
Forum
30 th (Globally)
1st (Arab
Countries)
Quality tourism business and
Infrastructure (airports)
The government’s prioritizing the
sector and carrying out very effective
destination-marketing campaigns
Rules and regulations adjusted
to better support the sector’s
development
Financial stability driven by banking
stability
Global Financial
Development
Index (2010
World Economic
Forum
21st (Globally)
Manifestation in credit default swap
spreads
1st (Arab
Countries)
Supporting institutional, legal and
business environment
Favorable tax regime
Corporate, retail and end-users
financial access
World
Competitiveness
Yearbook (2011)
28th (Globally)
IMD
2nd (Arab
Countries)
Steadily-growing economic
performance
Government and business efficiency
Competitive overall infrastructure
Continuing economic growth
Prosperity Index
Legatum Institute
30 th/110
(Globally)
1 (MENA
Region)
st
Good citizens’ quality of life and
satisfaction of economy’s state and
political landscape
Innovative activity is substantial in
the UAE, and the environment for
entrepreneurship is excellent
Satisfaction of education and health
systems
High levels of safety and security
Per Capita GDP
Ranking (2010)
International
Monetary Fund
(IMF)
5th
Steadily growing economy due to
the diversification scheme
A major oil producer
123
124
Chapter 3
Indicator
Organization
Rank
Why
Encouraging government’s trade
regulations and business environment
Global Trade
Confidence
Index (2010)
HSBC
6th (Globally)
High private sector’s optimistic
outlook
2nd (Arab
Countries)
Secured trade products’
High level of intra-regional trade
Great connectivity with the emerging
markets
Resident
Satisfaction
(2010)
Foreign Direct
Investments
Recipient (2010)
Gallup’s Global
Survey Data
UNCTAD
16th (Globally)
1st (Arab
Countries)
2nd (Arab
Countries)
Residents are the most satisfied with
their lives due to economic and
social stability
High average income level
Attracting investment promotion
policies that reduce investing
obstacles and grant incentives to
investors
Setting-up Business-friendly policies
Sustainable economic growth
MasterCard
Worldwide Index
MasterCard
of Consumer
Confidence
Government
Spending
Efficiency (2010)
Investor
Attitudes Index
(Investment
Confidence)
(2011)
Corporate Social
Responsibility
Why UAE ?
World Economic
Forum
4 (Middle East)
th
7th (Globally)
1st (Arab
Countries)
Consumers are optimistic about the
economy and regular income
Consumers are satisfied of the
quality of life in the UAE
The strong commitment by the
government to continue supporting
the different initiatives across all
sectors
Attracting investment market
conditions and strategies
Friends Provident
International
(FPI)
1st (MENA
Region)
1st (Arab
Countries)
A variety of investment instruments
Increasing willingness to invest in
gold and bonds
Indicator
Organization
Rank
Why
Excellent business climate and
investment policies
Economic
Freedom Index
(2011)
The Heritage
Foundation and
The Wall Street
Journal
47th (Globally)
Liberal trade regime
5 (Arab
Countries)
High government spending
th
Low level of corruption
Attracting property rights
The strategic initiatives introduced
by the government across all sectors
Quality of Life
Index (2010)
TI Corruption
Perceptions
Index (2010)
Global Peace
Index (2011)
Quality of Living
Index (2010)
Economist
Intelligence Unit
Transparency
International
Vision of
Humanity
World Trade
Organization
15th/160
(Globally)
1st (MENA
Region)
28th/178
(Globally)
2nd (MENA
Region)
Impressive civic development and
administration
Outstanding GDP growth
Quality healthcare, safety and
security services
Highly integrated anti-corruption
measures
Laws that eradicate poverty
Transparency and accountability’s
strict measures to restore trust
44th/149
(Globally)
Political and social stability
3rd (MENA
Region)
Safe and secure society
19th
(Globally)
2ND (MENA
Region)
Less crimes
Tax exemptions
International trade agreements
signed
The strategic location of the country
Best-in-class infrastructure
Dubai 1st
FDI Confidence
Index (2010)
AT Kearney
Abu Dhabi 2nd
(Middle East)
Business-friendly policies
Access to qualified human resources
High standard of quality of life
Advanced logistics facilities
Safe environment
125
126
Chapter 3
The UAE: A Visionary
Approach
Since the establishment of the UAE, its
founding leadership realized the defining
points upon which the nation shall grow
and provide a prosperous life for its people.
Thus, they introduced effective policies and
initiated numerous mega projects. At present,
the leadership has continued the march of
growth by following the steps of their fathers
and preserving the identity’s principles of the
UAE. A visionary approach was applied to
strategy and planning in order to provide its
residents with every possible basic needs of
life. The UAE Government Strategy 2011-2013
and the UAE Vision 2021 are the main two
policies that draw the steps and moves toward
the development of the macroeconomic
environment. They are very comprehensive and
take into account the social, cultural, health,
schooling, infrastructure, communications,
and rural development; they also deal with
the enhancement of the integration between
federal and local governments and entities.
With the aim of building a modern and
progressive nation, the UAE Vision 2021 sets
the guidelines for preserving and developing
the pillars of success to be among the best
countries in the world by 2021. Empowering
people, actively integrating the federal and
local governments, creating a diversified
economy, and developing world-class health
and education systems are the key goals of
the Vision.
The UAE Government Strategy 2011-2013
lays the foundations to achieve the UAE
Vision 2021. It forms the basis upon which
the Federal Entities develop their strategic
and operational plans, and consists of
seven general principles, seven strategic
priorities, and seven strategic enablers. The
strategic priorities and enablers are not fully
comprehensive but comprise the major focus
areas for the government.
Why UAE ?
“
As we look to the future and embark on
a journey of empowerment at all levels, we must
steer a course among challenges on many fronts
with confidence, optimism and determination.
There will be challenges to the family ties that bind
together the strong fabric of our cohesive society;
challenges to our economic competitiveness,
challenges to our national identity, challenges
to our health, education, environment and wellbeing. An ambitious nation like ours can’t achieve
its goals by relying on its past achievements. We
must work harder, be more innovative, more
organized, and more vigilant in examining the
trend and challenges will face us.
“
H.H. Sheikh Mohammed Bin Rashid Al Maktoum
127
128
Chapter 3
providing financial and human resources and
infrastructures are the essential requirements
of arriving to the desired position and vision
of the emirate and the country overall, as set
by the Plan.
Abu Dhabi
In line with the UAE strategic road map, Abu
Dhabi’s Economic Strategic Plan (2008-2012)
has focused on the motivating sectors that
will achieve the ambitious economic growth
and maintainable diversification, as stipulated
in its long-run strategic thinking “Economic
Vision 2030”. It sets the implementation
stages of the diversification process by
supporting initiatives in sectors like renewable
energy, basic industries, tourism, media, IT,
communications and others. Identifying
the needs of these sectors to grow, creating
attractive legislative environment,
The five-year plan has also addressed several
issues; the foremost of them is maximizing the
capital inflows to the targeted sectors either
in form of local or foreign capitals, or through
local and foreign loans to meet its financial
needs. In addition, it has indicated that the
emirate’s economy will witness a rapid and
substantial growth throughout the upcoming
years. Abu Dhabi’s Economic Vision 2030 aims
to significantly expand the non-oil sector by
2030 to reach a balance between oil and nonoil trade by 2028. The government intends to
foster the non-oil GDP growth at a higher rate
than that of the oil sector.
The UAE Vision 2021
United
in
in
Responsibility
Prosperity
in
Destiny
Upholding the legacy of the
nation’s founding fathers
Safe and secure nation
Enhanced international standing
in
Knowledge
Long and healthy lives
First-rate education
Well-rounded lifestyles
Well-preserved natural
environment
Harness the full potential of national
human capital
Sustainable and diversified economy
Confident and socially responsible Emiratis
Cohesive and prosperous families
Strong and active communities
Vibrant culture
Why UAE ?
Knowledge-based and highly-productive
economy
esive society and pre
Coh
ser
ve
di
de
glo
ba
nt
i
ty
Stro
ng
knowledge eco
n
Firs
t-ra
te
om
y
ed
u
ca
t io
ns
em
yst
ble
ina
iary
a
t
dic
u
j
ir
class healthcar
fa
rlde
Wo
ing
ti v e
e ti
d infrastructu
ent an
re
ronm
i
v
en
nd
ta
ls
mp
Co
The UAE
Governement
Strategy (2011-2013)
Strategic
Priorities
129
Safe
Su
pu
s
b
l
ic a
nd
130
Chapter 3
Dubai
The sector-driven economic development
approach is also a cornerstone of Dubai
Strategic Plan 2015. The diagram below shows
the principles of the plan. It is expected to
occupy this prominent status in its coming
version which will take into account the impact
Why UAE ?
of the global economic downturn. For the
future DSP 2015 has identified certain sectors
as important for a strategic thrust as building
block which include travel and tourism,
financial services, professional services,
transport and logistics, trade, storage and
construction. These sectors have witnessed
rapid growth from 2000 onwards. In terms of
magnitude, this growth has been led by trade,
construction and real estate sectors.
Other Emirates
All emirates have paved their path toward
developing selected sectors based on the
existing resources and the emirates’ ambitious
visions. The overall strategy shows a picture
of an economic diversification. Ajman, in its
Strategy 2030, aims to boost its developmental
projects. It strongly encourages local and
international investments in order to achieve
social and economic prosperity. The emirate
is looking forward into developing tourism,
health and education sectors, meeting the
demands of its growing population.
Umm Al Quwain Strategy 2011-2013 focuses
on reaping the fruitful benefits of its natural
resources to boost important sectors like
tourism. The emirate will also use its strategic
location to facilitate establishing businesses
and attracting local and foreign investments.
Umm Al Quwain enjoys a unique historical and
natural heritage, islands and natural habitats.
Thus, it will work on developing the concept of
nature tourism in the country. These plans are
accompanied with the developmental plans of
the government’s efficiency and the emirate’s
infrastructure.
131
Chapter 4
A World of Opportunities
“
Because its ambition is continuous and
increasing, and with the word impossible being ruled
out, the UAE is determined to be a top global and
regional choice across a wide range of industries,
believing that one success is always the gateway to
another.
“
Chapter 4
Why UAE ?
Energy
“
It was easy for the UAE to rely on its dominant
global position as a producer of oil and natural gas.
But its firm belief in sustainable technology and future
energy is leading it to explore new horizons of energy
investments.
“
136
Chapter 4
to position itself as a global leader in the
adaptation of renewable and environmentallyfriendly resources and technologies.
T
hroughout its history, the UAE has been
recognized for its rich natural resources.
Since the times of Majan Civilization that was
flourished in the area between Abu Dhabi and
Qatar, people of the UAE mined copper and
exported it to the flourishing surrounding
nations, Mesopotamia and North of Persia.
Since then, various minerals have been also
explored and utilized such as phosphate, sulfur,
and salt. In the 1930s, the initial signs of the
existence of crude oil under the soil and water
of the emirates began to attract international
attentions. Rights for exploration of oil were
granted by the rulers of the emirates to
reputable international companies.
In 1958, oil was discovered in commercial
quantities in Umm Al Shaif field off the coast
of Abu Dhabi. Four years later, the first oil
shipment left Das Island, marking a historical
milestone and a new era for the entire country.
The discoveries and export of oil from Dubai,
Sharjah, and Ras Al Khaimah also followed in
1960s and 1970s.
Today, the UAE’s stunning energy and
mining sector comprises of strong oil and
natural gas industry, a growing petrochemicals
sector, a demand-driven utilities production
sector, and attractive mining opportunities.
Approximately, USD 94.0 billion (31.6%
of total GDP in 2010) is attributed to the
revenue of this sector. The UAE also aims
Why UAE ?
The entire oil and gas sector remains state
controlled. However, the constitution of the
UAE guarantees the right of ownership of
natural resources for each emirate. Thus, there
is no federal energy policy on exploration and
development of energy and other mineral
products. The Ministry of Energy represents
the country in the international petroleum
community and specialized inter-national
and regional organizations to which the
UAE belongs. The UAE has been a member
of the Organization of Petroleum Exporting
Countries (OPEC) since 1974 and of the
Organization of Arab Petroleum Exporting
Countries (OAPEC) since 1970.
Since the formation of the country in
1971, building a reliable electricity and water
infrastructure that satisfies the growing demand
dictated by rapid development has always
been a priority for the federal government.
Energy Sector - Major Indicators
Indicator
Global Ranking
Actual Figure
Contribution to GDP
USD 94.0 billion (2010)
Proven Oil Reserves
97.8 billion barrels (2009)
6th
Crude Oil Production
2.2 million barrels daily (2009)
6th
Oil Consumption
682 thousand barrels daily (2011)
Proven Natural Gas Reserves
6.0 trillion cubic meters
Natural Gas Production
51 billion cubic meters daily
14th
Natural Gas Consumption
60.5 billion cubic meters daily
15th
Electricity Capacity
20,696 megawatts
18th
Electricity Production
88,184 gigwatts per hour
44th
Electricity Consumption
84,404 gigawatts per hour
41st
Installed Desalinated & Ground
Water Capacity
1,235.51 million gallon daily
Water Production
372,369 million gallon annually
Water Consumption
344,082 million gallon annually
Federal Regulator
Ministry of Energy
The UAE has achieved remarkable milestones
in that regards, building a current electricity
production capacity of 20,696 megawatt and
a water production capacity of 1.2 billion
gallons. While the federal government sets
the strategy for this sector and supplies the
northern emirates with the needed utilities,
Abu Dhabi, Dubai and Sharjah have their own
state-controlled electricity and water suppliers.
Projects of expansion and improvement of the
utilities supply are well underway to meet the
future demand.
35th
6th
The UAE is also leading the regional
countries in adapting newer and cleaner
energy sources to meet the growing demand.
It was the first country in the GCC and the Arab
region to establish a nuclear program in 2009
that aims to generate a significant part of the
country’s energy needs. The country is also
engaging in other mega renewable energy
projects to utilize its rich natural resources and
solar exposure. Masdar initiative provides a
clear example of how the UAE is determined
to pursue its renewable energy goals.
137
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Chapter 4
Oil and Natural Gas
Exploration and
Production
average of USD 80.1 per barrel. As of January
1, 2010, oil and natural gas revenues accounted
for 31.3% of the country’s total GDP based on
real terms.
Since the discovery of oil in 1958, this
sector has been witnessing an extraordinary
growth, spurring the national economy to
reach greater heights. Will its contribution
continue to shape a significant part in the
national economy and in what way?
The UAE is a very important global producer
of oil and natural gas. As of mid-2011, it ranks
the 6th in terms of oil production and 14th in
terms of natural gas production. Data issued
by the Organization of Petroleum Exporting
Countries (OPEC) shows that the UAE has
97.8 billion barrels of proven oil reserves (the
seventh largest reserve in the world) and 6.2
trillion cubic standard meters of proven natural
gas reserves (the fourth largest reserve).
The majority of oil and natural gas reserves
are in the emirate of Abu Dhabi (92.2 billion
barrels, 198.5 trillion cubic feet), followed by
Dubai (4 billion barrels and 4 trillion cubic feet),
Sharjah (1.5 billion barrels and 10.7 trillion
cubic feet), and Ras Al Khaimah (100 million
barrels and 1.2 trillion cubic feet). The country
is currently producing 2.8 million barrels per
day (bbl/d), 4.6% of world crude oil produced
daily, and 5.1 billion cubic feet per day of
natural gas, 4.4% of the world natural gas
production.
According to data issued by the National
Bureau of Statistics, oil and natural gas
contribution to the country’s GDP has dropped
from USD 116.4 billion in 2008 to USD 78.3
billion in 2009, and USD 93.6 billion in 2010
mainly due to the unprecedented increase of oil
prices during 2008 and the country’s attempts
to enlarge its non-oil sector contribution
to the national economy. The average price
during 2008 was USD 96.55 a barrel, while it
dropped down to USD 62.5 a barrel during the
economic crisis in 2009. However, international
demand for oil, supported by the partial
recovery of the global economy, increased by
1.3 million barrels per day in 2010. The demand
has triggered oil prices to bounce back to an
Why UAE ?
The country’s policy is mainly carried out by
the Supreme Petroleum Council (SPC) which
was established to lay down Abu Dhabi’s
petroleum policy and objectives in all sectors
of the petroleum industry through Abu Dhabi
National Oil Company (ADNOC), and to issue
resolutions and follow up their implementation
until all aspired goals and results are achieved.
Dubai also launched its energy regulator “the
Dubai Supreme Council of Energy” to oversee
the development of oil and gas sector. Sharjah
has set up its state-owned oil entity, Sharjah
National Oil Corporation (SNOC), in November
2010 to carry out operations in the upstream
and downstream markets, as well as investing
in other firms engaging in similar activities The
remaining emirates also established their own
petroleum departments to issue policies and
regulate activities in this vital sector as well as
to invest in all parts of the oil and gas industry.
ADNOC is the main local player in the oil
and gas sector since it is granted more than
60% of the petroleum and gas projects in the
emirate of Abu Dhabi. Its portfolio includes
14 wholly owned companies that operate
in a well-defined field of specialty. The
most noteworthy is Abu Dhabi Company for
Onshore Oil Operations (ADCO). Other local
players in the market are Dana Gas, a natural
gas producing company based in Sharjah, RAK
petroleum, a growing oil and gas exploration
and production company.
The UAE gives the opportunity for
international oil and gas companies to operate
on both downstream and upstream operations.
The main international companies working in
the country are British Petroleum, Shell, Total,
ExxonMobil, REX oil, schlumberger and Partex.
In 2008, Occidental Petroleum was given the
right to explore and develop two oil and gas
fields Jarn Yaphur and Rahman in the emirate
of Abu Dhabi. The company operates and holds
a 100% interest in hydrocarbons output from
the fields. Furthermore, ADNOC partnered
with Shell, Total and Partex to form Abu Dhabi
Industries Limited (GASCO) to be responsible
for the processing of associated and nonassociated onshore natural gas production. In
June, 2011, REX Oil was given the right by the
Government of Sharjah to explore and produce
oil for the offshore territories of Sharjah on
the Gulf of Oman.
Thailand, and South Korea. Abu Dhabi National
Tanker Co. (ADNATCO) is the sole company
responsible for the transporting the UAE’s oil
to the world. National Gas Shipping Company
Ltd. (NGSC) was also established to transport
liquefied natural gas (LNG) on behalf of Abu
Dhabi Gas Liquefaction Company (ADGAS).
The country’s crude oil is mainly shipped by a
fleet of oil tankers and exported mainly to Japan,
139
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Chapter 4
Even though the economic, environmental,
and safety considerations have necessitated
the increasing need for diversifying the energy
sources, oil remains as the most cost-effective
demanded source for energy for most countries.
The UAE is a member of the Organization of
Petroleum Exporting Countries (OPEC), and as
a result it is bound to the regulations, policies,
and limits of the organization. Presently, it is
allowed to export 2.2 million (bpd) as crude
oil. However, the government has asked the
organization to further increase its quota. Oil
production is expected to reach four million
barrels per day by 2015. It has also set its vision
to increase its oil tankers and carriers as well
as building more pipelines, and refineries’
capacity.
Natural gas, on the other hand, is the
main source for electricity in the UAE. The
domestic consumption has outstripped
production for the first time in 2007. Demand
has been rising gradually due to the increased
population, and economic expansion, driving
the government to produce more volumes or
find alternative routes. The country’s current
capacity, which is supported by natural gas
Oil Reserves by Emirates
Why UAE ?
and few coal-fired power plants, can only
meet around half of the estimated 40,000MW
domestic demand for power by 2020. Natural
gas production is expected to increase to 6.5
billion cubic feet daily.
Entry Points
The UAE Ministry of Economy
The planned USD 3 billion refinery at Fujairah
is a priority in the UAE investment strategy. The
new refinery will be integrated with Abu Dhabi
Crude Oil Pipeline to secure the feedstock
delivery. The refinery will have a capacity to
process 150,000 to 200,000 barrels per day of
crude oil. Great opportunities for suppliers and
technical expertise providers are present in all
phases of the project. In April 2011, Shaw Stone
& Webster, an American engineering services
company, was awarded the project management
consultancy. Foreign engagements are in the
form of partnerships with local companies.
Oil Tankers
The UAE’s main oil transporter, ADNATCO,
is in the process of expanding its shipping
fleet. Strategic contracts for the construction
of 6 oil tankers and 7 bulk carriers are in
place. Its current fleet includes 7 bulk carriers,
Gas Reserves by Emirates
94.27%
Abu Dhabi
92.58%
Abu Dhabi
4.09%
Dubai
1.87%
Dubai
1.53%
Sharjah
4.99%
Sharjah
0.10%
Ras Al Khaimah
0.56%
Ras Al Khaimah
Key - UAE Oil Field
Emirate
Producing Company
Oil Field
Capacity (bpd)
Zakum Developement
Upper Zakum
Company (ZADCO) (60%)
Japanese Oil Development Co. (JODCO)
550,000
ExxonMobil (40%)
Bu Hasa
Abu Dhabi
Murban Bab
Sahil
Abu Dhabi Company for Onshore
Oil Operations (ADCO)
1,400,000
Asab
Shah
Umm Shaif
Lower Zakum
Abu Dhabi Marine Operating
Company (ADMA-OPCO)
520,000
Dubai Petroleum Establishment
100,000
Fateh
Dubai
Southwest Fateh
Falah
Rashid
Sharjah
Mubarak
Crescent Petroleum
3 chemical tankers, 2 crude tankers, and 2 Ro/
Ro vessels. ADNATCO is certified by Lloyd’s to
the ISM Code (International Safety Management),
the ISO 9001 (Quality Standards) and the ISO
14001 (Environmental Management Standards).
60,000
of the EOR advanced technologies since
additional millions of barrels can be generated
using this technique.
Enhanced Oil Recovery (EOR)
The UAE’s current oil and gas strategy
focuses on preserving its reserves by depending
on modern technologies such as enhanced oil
recovery (EOR) technologies that could also be
used to explore more fields and by rationalizing
the current consumption. The federal and local
regulators are recommending the utilization
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Chapter 4
Petrochemicals
The petrochemicals products spectrum
has been witnessing an unprecedented
growth in the MENA region. How does the
UAE form its petrochemicals strategy in
order to meet domestic needs and mark its
fingerprint in the global arena?
The giant oil and natural gas producer aims
to boost its downstream activities by enlarging
its current capacities in the petrochemicals
industries and stepping into new fields of
specialties. Therefore, huge investments
have being pumped in strategic initiatives to
increase the sector’s portion in the total GDP,
then decreasing the dependency on the export
of the raw materials. The country’s current two
classes of petrochemicals, olefins and aromatics,
products’ range includes but not limited to
ammonia, polyethylene, polypropylene, and
urea. Figure () shows the current production
capacity of each component.
The growth rate of 4.4% achieved in the
petrochemicals sector in the year of 2010,
according to data revealed by the Ministry
of Foreign Trade, reveals the success of the
sector and proves the continuous demand.
The average growth rate of international
demand is 6% annually. During 2005, the UAE
contributed 6% to the total GCC petrochemical
Why UAE ?
production. The government has made massive
plans to boost the performance of this sector.
Within the five coming years, the total UAE
investment expected to reach USD 10.3 billion
in order to develop and diversify the outputs of
petrochemicals.
In 1998, ADNOC established, in a jointventure with Borealis, one of Europe’s
largest polyolefin (plastics) producers, to
be a leading provider of polyethylene and
polypropylene. The current manufacturing
capacity of Borouge is 2 million tons per year.
In mid-2011, the second phase of its massive
petrochemicals complex at Ruwais industrial
zone has enabled it to reach full operational
capacity. The company is also planning to
increase its capacity to reach 2.5 m tons per
annum by 2013 to meet the increasing local
and international demand. ADNOC has also
established Ruwais Fertilizer Industries (FERTIL)
with a capacity of 1,000 tons of ammonia and
1,500 tons of urea per day. It signed a USD 1.2
billion contract with Samsung Engineering to
construct a new fertilizer complex, increasing
its urea capacity to 3,500 tons per day. Both
companies are located in Al Ruwais Industrial
Zone and are looking forward to expand their
production capacity by installing more plants,
increasing utilization, and depending on new
advanced technologies. Borouge and FERTIL’s
expansion plans have been attracting local and
international investors who are been actively
participating in the construction of chemical
plants, storages, processing and treating units,
and other related projects like cooling systems.
Abu Dhabi’s petrochemicals’ strategy has
been shifting from the basic products to enduser products. It has been establishing itself
as one of the major petrochemicals producers
in the world. Strategic International and
local investors have been invited to join the
development convoy in petrochemicals.
According to BMI’s latest petrochemicals
report, the profusion of feedstock in the
UAE gives it a great potential for growth in
this subsector. “Development of a domestic
petrochemicals industry is now gathering
pace, which could significantly enhance the
growth of small and medium enterprises
(SMEs)
sector.”
Thus,
international
petrochemicals
companies
have
been
headquartering in the UAE. The strategic
location as in the heart of the Middle East and
the business-friendly policies and regulations
have made the country the ideal place to
start a petrochemical business. In 2010, Global
“Cabot Corporation”, a US-based petrochemicals production company, inaugurated
the first-of-its kind factory at Jebel Ali Free
Zone by investing USD 20 million. The plant has
an initial production capacity of 25,000 metric
tons of masterbatch per year with provision to
expand to 75,000 metric tons in the future.
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Entry Points
The Giant to Come: Chemaweyaat
In November 2008, Abu Dhabi National
Chemicals Company “Chemaweyaat” was
established to enhance the involvement of Abu
Dhabi’s chemicals industry production’s holdings.
Its plants are planned to be operating by 2015
with a total capacity of 1.5 million tons per year.
The company has called international contractors
to submit their bids to build the central ethane
cracking unit for the petrochemicals complex
‘Takamul’ that will turn naphtha to other chemical
products.
A Global Petrochemicals Hub
As Abu Dhabi enters its second phase of
modernization guided by vision 2030, developing
a globally-competitive petrochemicals industry
based is one of the main economic pillars to
achieve the desired position. Not only dose Abu
Dhabi invests heavily in creating petrochemicals
conglomerate but also it opens its door and
provides the necessary business infrastructure
and environment for international investors to
establish ventures at all levels of the industry
value chain. Abu Dhabi Basic Industries
Company’s (ADBIC) polymer’s park project
is a clear example of the emirate’s strong
commitment to attract international players. Abu
Dhabi Polymer Park will span 4.1 million m2 with
Why UAE ?
Petrochemical
Production Capacity
Ammonia
695
Ethylene
500
Ethylene Glycol
Propylene
Urea
2000
800
1250
up to 1 million tons/yr conversion capacity of a
wide range of resins.
Sajaa Gas Private Limited Company
To efficiently utilize its production of natural
gas resources, the Government of Sharjah,
Crescent Petroleum, a Sharjah-UAE based oil and
gas company, and six prominent investors from the
G.C.C. region have invested in Sajaa Gas Private
Limited Company (SajGas), a company established
to build, own and operate a gas sweetening plant
at Sajaa in Sharjah. The project is will be one of
the most significant petrochemical plants in the
country. Opportunities are obtainable in all levels
of development and supply of equipments and
know-how.
Refineries
The UAE’s significant capacity of crude oil and
natural gas production validates the feasibility
of refining the raw materials in-house. Since
Key - UAE Petrochemical Refineries
Emirate
Refinery
Capacity (bpd)
Refined Products
Operating Company
Abu Dhabi
Ruwais
145,000-Crude oil
280,00-Condensate
Kerosene, Light gas
oil, Heavy gas oil,
Straight run residue
Abu Dhabi
Abu Dhabi
88,000
LPG, Naphtha, Gas oil
Abu Dhabi Oil
Gasoline, Kerosene
Refining Company
Straight run residue
(Takreer)
& Liquid Sulphur
Dubai
ENOC
Jebel Ali
120,000
LPG, Naphtha, Jet
fuel, Diesel & Fuel oil
Emirates National
Oil Company
(ENOC)
Sharjah
Sharjah Oil
Refinery
71,000
LPG, Naphtha, Jet
fuel, Diesel & Fuel oil
Sharjah Oil
Refining Company
Fujairah
Metro Oil
90,000
1976, it has been building its set of refineries to
serve the domestic and the global market. Today,
its five refineries, with a combined capacity
of 0.64 million barrels per day (Table ), made
the country a sizable net exporter of refined
Abu Dhabi Oil
Refining Company
(Takreer)
products. By building its sixth refinery in Fujairah,
the added capacity of 150,000-400,000 barrels
per day as well as the expansion plans of the
current refineries will increase the production by
at least 30%.
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Chapter 4
Utilities Infrastructure
Development
and water production sector, ADEWA accounts
for half of the total capacity. While ADEWA,
DEWA, and SEWA function on their designated
emirate, FEWA is headquartered in Ras Al
Khamiah and supplies the Northern Emirates
(Ajman, Umm Al Quwain, Ras Al Khaimah and
Fujairah) with power and water.
Due to its ever-increasing population,
and in order to meet its economic ambitions,
the UAE is demanding more electricity and
water but will its current infrastructure be
able to meet this demand?
The Annual Electricity and Water Report
(2009), issued by the Ministry of Energy, shows
that the UAE has an electricity generation
capacity of 20,696 megawatts and an installed
desalinated and ground water capacity of
1,235.51 million gallon per day as of 2009.
However, the current total generated energy
is 88,184 gigwatts per hour (GWH) and the
current total water production is 372,369
million gallon per year (MIG/Y) (1,034 million
gallon per day). The UAE’s annual energy
consumption has reached 84,404 GWH and
its total water consumption has arrived at
344,082 MIG/Y.
More than 85% of the generated electricity
is obtained from gas turbines that use natural
gas as a main feedstock. The remaining is
produced by diesel engines and steam turbines.
While desalinated water makes up 93% of
the total produced water, limited ground
water resources produces the remaining
7%. Comparing to 2005, the total energy
consumption has increased by 56% and the
total water consumption has increased by 35%.
According to all estimates, this will continue
to rise for the near future. In the GCC region,
the UAE records the highest projected increase
in demand, which is expected to continue
growing at a minimum rate of 10 per cent per
annum. Currently, Utilities contribution to the
country’s GDP has reached USD 6.11 billion in
2009 (2.32% of the real GDP), according to
data issued by the National Bureau of Statistics.
Abu Dhabi Water and Electricity
Authority (ADWEA), Dubai Electricity and
Water Authority (DEWA), Sharjah Electricity
and Water Authority (SEWA), and Federal
Electricity and Water Authority (FEWA)
are the major players in the electricity
Why UAE ?
Abu Dhabi became a regional benchmark
in 1997 when it launched its privatization
program that allowed private companies to
take over the construction, operation, and
maintenance of power and water plants. For
instance, all Independent Water & Power
Plants (IWPP) are engaged in this program on
the basis of the BOO “build, operate and own”
formula, designed according to partnership
agreements made between ADWEA and a
number of international companies.
The high dependency on gas coupled with
increased population and economic expansion
forms the government strategy that is aiming
now to source greater volumes of natural
gas and use alternative sources to power
on its country. In 2000, a major project to
connect and share power among all emirates
was launched. ADWEA and DEWA’s power
grids were connected in 2006. Infrastructure
developments are also taking place in order
to connect other emirates. The national
electrical network is also being connected
to its neighboring country, Oman, in a step
toward connecting the GCC’s grids. In order
to provide the UAE with sufficient volumes of
natural gas, a strategic energy initiative, the
Dolphin Project, is being developed to ship gas
from Qatar’s North Field, Al Tawailah.
The UAE is not only focusing on increasing
the import of natural gas and preserving
the consumption of electricity energy
by connecting to regional grids, it is also
constructing its strategy of diversifying the
energy resources. In 2009, Korea Electric Power
(KEPCO) was given the green light to begin
the construction of four nuclear reactors in
Abu Dhabi. The plant will have a production
capacity of 5,600 megawatts; the first reactor
is expected to start generating in 2017. As a
result, the country will be able to export its
natural gas or use it as a feedstock to maximize
its water gas-fired desalination plants’
production. The country will also be able to
supply the region with enough electricity
power through its already developed network.
Major opportunities were being given to
international energy companies so the country
participates in all energy frontiers. Total and
Spain’s Abengoa Solar will run the Shams-1
geothermal plant in Abu Dhabi. Abu Dhabi
plans to generate 7% of electric power from
renewable sources by 2020.
In 2007, Fisia Italimpianti, a subsidiary of
the Italian construction and civil engineering
Impregilo Group, won an order worth USD 256
million to build a desalination plant in Dubai
for the Dubai Electricity and Water Authority
(DEWA).
Electricity Production Consumption
Entry Points
GCC Power Grid
The increasing demand of power due to
population growth and economy expansion has
driven the GCC countries to look for alternative
solutions. The GCC Power Grid is one of those
strategic projects. GCC Interconnection Authority
(GCCIA) was found to build, run, and maintain
the connecting grids. Investments opportunities
in the mega project are unlimited and can be in
the form of tendering contracts, public, private,
partnerships, and technical, and consultancies.
The GCC grid is also planned to be connected to
the European, Pan-Arabian, and Mediterranean
grids.
Investing in Power Capacity
Building new power plants is a critical need
for the future growth of the UAE. Federal
government and local emirates governments
are determined to put in place all the necessary
resources to increase their power capacity.
Massive projects are planned or undergoing in
all parts of the country. Shuweihat project in
Abu Dhabi, with a capacity of 1,500 mega watts
for its second phase, and Hassyan project, with
a combined capacity of 9,000 mega watts are
some of the key projects in this sector. Expanding
power capacity in the Northern emirates is also
in the drawing board. The Federal Electricity and
Water Authority already commenced building
new power plants in that region such as the
Fujairah F2 power with 2,000 mega watts.
Water Production Consumption
500,000
100,000
400,000
80,000
60,000
300,000
40,000
200,000
20,000
2005
2006
2007
2008
2009
Total Electricity Generated (GWH)
Total Electricity Consumed (GWH)
100,000
2005
2006
2007
2008
2009
Total Water Production (MIG/Y)
Total Water Consumption (MIG/Y)
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Chapter 4
Renewable Energy
A country that falls within the northern
desert belt, enjoys one of the highest sun
exposure in the world, and experiences
frequent storms and winds, is able to mainly
depend on renewable energy. However,
have the oil and gas great reserves blocked
the ways of renewable energies from
flourishing in the region?
The current energy capacity can only meet
half of the demanded energy by 2030. For this
reason, tapping into new sources of energy
has become an absolute economic necessity in
order to cope with the increasing population
and economic expansion. The UAE today is
focusing on renewable energy due to several
reasons: the long duration of sun exposure
and the frequent winds and storms, the high
percentage of greenhouse gases produced
from oil and gas extractions, the high quantity
of oil and natural gas used to produce
electricity. The UAE’s energy strategy aims to
diversify the sources of energy generation and
secures the UAE’s prestigious position in the
future energy realm.
To initially declare its committed intention
of diversifying its energy sources, the UAE
government published the policy of the country
on the evaluation and potential development
of peaceful nuclear energy, which outlines
the government’s fundamental principles for
its work in this area. In 2009, the UAE joined
International Atomic Energy Agency (IAEA).
Another significant milestone of the UAE
in the renewable energy was marked in 2009
when the Preparatory Commission of the
International Renewable Agency (IRENA)
designated Abu Dhabi as the headquarters
of the agency. Since then, strategic projects
to achieve its goal have been initiated.
Emirates Nuclear Energy Corporation (ENEC)
was launched to deliver safe, clean, efficient
nuclear energy to the United Arab Emirates,
with a target of delivering electricity to the
UAE grid in 2017. By 2020, it is projected that
nuclear energy will produce nearly a quarter
of the nation’s electricity needs.
Why UAE ?
ENEC
partnered
with
international
reputable energy companies to construct its
nuclear plants with the highest international
standards. In December 2009, the UAE
government awarded a USD 20 billion contract
to Korea Electric Power (KEPCO) to build four
nuclear reactors. A partnership with Areva,
Total and Suez to build a 1600 MW EPR unit in
the UAE was also signed. The output is to be
partly used for the desalination of water.
Masdar
In April 2006, the Abu Dhabi Future Energy
Company (Masdar) was established to reach
the broad boundaries of the renewable
energy and sustainable technologies industry.
Masdar integrates the full renewable and
clean technology lifecycle - from research
to commercial deployment – with the aim of
creating scalable clean energy solutions. To
achieve that it works with global partners
and institutions to integrate new research
with proven technologies to produce efficient
systems and processes that can be replicated
globally. Masdar operates through five
integrated units: Masdar Power, Masdar
Capital, Masdar Carbon, Masdar City, and
Masdar Institute.
Masdar Power is a developer and operator
of renewable power generation projects.
In building a portfolio of strategic utilityscale projects, Masdar Power makes direct
investments in individual projects in all areas
of renewable energy, with a focus on
Concentrating Solar Power (CSP), photovoltaic
solar energy and on- and offshore wind
energy. In a joint venture with Abengoa Solar
and Total, Masdar Power is developing the
100MW Shams 1 CSP plant in the Western
Region of Abu Dhabi, set to be the largest
CSP plant in the world. It is also developing a
30MW wind farm and a PV array on Sir Bani
Yas Island. Through these and future projects,
the unit will contribute to Abu Dhabi’s goal
of generating 7% of its energy needs from
renewable sources.
Entry Points
Renewable Energy Projects in Dubai
Turning Excessive Heat into Power
International renewable energy experts
classified the UAE as one of the most favorable
locations to generate solar power because of the
high level of sun exposure. Encouraged by the wise
environmental policy of the government, demand
for solar panels and other means of obtaining
solar power has significantly increased over the
past few years. Properties developers and building
owners are increasingly using the solar panels to
decrease energy consumption. In addition, streets
lights and telecom towers use solar panels to get
the sufficient energy supply. Great opportunities
lay for investors and traders who supply the solar
equipments and invest in developing new solar
power plants across the UAE.
Prospects exist for investing in Dubai’s
solar power and renewable energy sector. As
controlling emissions becomes an increasingly
important issue worldwide, these technologies
and projects could experience increased demand
in Dubai. Strategic projects in this sector are to
be executed. Dubai Solar and Wind Power was
contracted to the Greek Portland Group, a marine
and financial solutions company, for USD 130
million. The company will develop solar plants
in the UAE, aiming to turn Dubai as a leading
renewable energy provider. Dubai Thermal solar
power plant is also been planned and negotiated
with contractors.
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Following the discovery of oil and the
creation of the union, Mining and Quarrying
sector emerged as a new domestic
production field. Realizing the short period
of discovery, are the mineral resources well
discovered in the UAE? Are the potential
opportunities in this sector well realized ?
Since its formation in 1971, the UAE has
been identifying its economic pillars that
structure the overall economic picture.
Mining and quarrying sector in fact began
when the country decided to diversify its
economy. To attract the global investors’
minds, the government declared its avoidance
of using the traditional methods of research
and exploration that have been used for
a long time and decided to use the latest
scientific technologies methods instead.
Detailed geographic academic studies, aerial
photographs, and geological maps have
proved the richness and the diversity of the
UAE’s mineral resources.
Today, the UAE produces a wide range
of minerals that include but not limited to
copper, gypsum, natural and cultured pearls,
silver, gold, and precious stones. The figure
below shows the latest minerals discoveries
found on the UAE and the location of each
mineral. The land of the UAE is very rich in
terms of the diversity of minerals. However,
the commercially-viable minerals range
is comprised of gypsum, salt, copper, and
marble. The capacity of gypsum found in the
UAE is enough for self-sufficiency for the GCC
countries.
The total export of precious metals has
reached USD 11.72 billion in 2010, achieving a
growth rate of 30% comparing to 2009. The
most exported precious metal was crude gold
that makes up about 89.2% of the total export,
jewelry, pearls, and silver share the remaining
2%. More than 41 countries imported the
UAE’s precious metals last year.
Quarrying subsector’s GDP contribution has
been steadily increasing. In 2009, its revenue
Why UAE ?
has reached USD 456.39 million (0.17% of
the total real GDP), a 56% growth increase
since 2005. Fujairah has 74% of the quarries,
followed by Sharjah, and Ras Al Khaimah;
other emirates do not have quarries. Quarrying
is expected to experience a growing trend
within the coming years driven by the UAE’s
policies, one of the main factors behind the
sector’s growth by attracting FDIs.
Developments in mining are gathering
pace in the UAE. In 2009, the UAE formed a
joint venture with GSL limited, an Indian
steel manufacturer, to explore for chrome
ore. ASCOM, an Egyptian mining company
specializing in the management of quarry
operations for the cement industry as well
as the exploration of precious minerals, has
been operating in the UAE since 2004. Ras
Al Khaimah Minerals and Metal Investment
(RMMI), a global mining company in precious
metals such as copper, cobalt, silver, and gold
has multi-activities in the UAE.
Local
and
international
recognized
operators in the sector of quarrying are
Turkish Gulf Quarry, Global Crusher, Gulf Rocks
Co. Shawkah Crusher, Lootah Crushers, and
Fujairah Building Industries.
Saltpeter and Barite
Opportunities in
Sir Bani Yas Island
Huge amounts of salt with a purity reaches
91.6% of sodium chloride lays in the forms
of amorphous pink rocks tinged with a small
quantity of sulfur and iron impurities. The
commercially-viable quantities of salt and
the cost-effective and simplicity of extraction
methods provide attracting investment
opportunities for both local and international
investors.
The mineral can be used to manufacture
different types of chemical compounds such as
Sodium hydroxide (caustic soda) and chlorine.
It can be used also in the manufacture of soap,
laboratories’ and chemical plants solutions,
and petrochemicals industries. Salt can also be
used to conserve fish and other foods.
Throughout history, Sir Bani Yas has been
a source of salt. An old mine was found
in the northern part of the island where
Key - UAE Mineral Source
Mineral
Location
Copper
Northern Emirates particularly between Masafi
and Fujairah
Chromites Ore
Northern Emirates particularly in Manama,
Masfut, and Alsijy
Radioactive Minerals
(Uranium, Radium, and Crude Bitumen)
Ornamental Stones
Al Ain particularly in Al Fyadhah Spring Water
(Marble, Granite, Serpentine, Schist Tablets
and Limestone)
Northern Emirates particularly in Al Faya Mountains
Masfut, Masafi, and Hafeet Mountain
Rock wool
Masfut and Fujairah
Saltpeter
Sir Bani Yas
Gypsum
Al Ain particularly in Hafeet Mountains, Dubai
and Western Region
Barite
Dhanna Mountain, Sir Bani Yas, Hafeet Mountain,
and Hormuz series
salt deposits were found on the land surface.
These are just a small fraction of the large
deposits that lay underneath. Other sources of
salt in the emirate of Abu Dhabi are marshes,
buried blocks, and sea salts that contain various
other salts such as calcium sulfate, magnesium
sulfate, sodium sulfate, and potassium chloride,
and calcium carbonate.
Around 4% of the island is also covered with
the mineral of barite. Its deposits are located on
“Fars Al Adna” area and on the series of Hormuz.
The sparse barites are found in the form of
crystals that result from the rocks interaction
with the natural forces. The mineral is mainly
used in the drilling processes of oil wells as well
as in the manufacture of dyes. The barite is
also found on the mountain of Dhanna, Dilma
Island, Arzanha, Zakorah, and the eastern side
of Haffeet Mountain but with small quantities.
GDP Contribution (Millions per AED)
1,750
1,500
1,250
1,000
750
500
2005
2006
2007
2008
2009
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Chapter 4
Why UAE ?
Real Estate
and Construction
“
With the world’s tallest building, the largest
man-made island, the world’s largest man-made marina
and many other icons, innovation appears as the most
unique character of the UAE’s real estate sector, giving
it an edge that will assure its long-term attractiveness
to investors and developers.
“
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Chapter 4
T
he human settlement in the area called
today the UAE was first recognized in
5000 B.C., as archeological evidences have
demonstrated. Throughout that time, each
tribe was living in a designated area and it
might have moved to another place searching
for water and food resources. Recording
or registering property ownerships did not
exist then. However, verbal agreements and
understandings between the Sheikhs of the
tribes solved every possible conflict in that
regard. In the early 1960s, laws of registering
and owning lands and properties started to
take a place in the UAE.
In addition, the building materials
that made up people’s dwellings at that
time were very simple and came straight
from the nature like palm leaves, animal
skins, and stones. The situation started to
Why UAE ?
change after the discovery of oil which
triggered peoples’ migration from rural areas
to more developed cities like Sharjah and
Dubai in the late sixties. The Realization of
the importance of a property or a land and
initial signs of the growth of the economy
drove many to start accumulating lands, which
created the beginning of the real estate sector.
The following years, prices of properties
had been gradually increasing, forced by
demand and supply. Because lands and natural
resources are owned by the local governments,
as granted by the UAE constitution, each
emirate created its real estate authorizing and
regulating entity to manage and organize this
activity.
The years 1970-2000 witnessed a historical
renaissance in the construction sector in the
UAE. Large cities came out of the desert and a
state-of-the-art infrastructure was built across
the country. Buildings from skyscrapers, lavish
villas, large shopping malls and luxurious
hotels began to decorate the landscape of the
emirates.
Real Estate and Construction Major Indicators
Contribution to GDP (2010 Estimates)
USD 64,183 million (21.57%)
Contribution to Gross Fixed Capital
Formation (2010)
23.81%
Ministry of Public Works
Abu Dhabi Real Estate Regulatory Authority
Federal and Local Regulators
Dubai Real Estate Regulatory Authority
Sharjah Real State Regulatory Agency
Ajman Real Estate Regulatory Authority
Ras Al Khaimah Real Estate Regulatory Authority
Total Number of Buildings (2005)
335,487
Total Number of Housing Units (2005)
722,859
Total Worth of Projects Under
Construction (2011)
USD 930 billion (45% of projects in GCC region)
An important transformational change
occurred in the real estate sector during the
following years. Freehold property ownership
in designated areas was introduced to
international investors by Dubai in 2002,
followed by Ras Al Khaimah, Ajman, and Umm
Al Quwain. The capital and Sharjah have also
passed their laws, allowing a 99-year leasehold
for non-GCC nationals (expatriates, foreign
individuals, and foreign owned corporations).
The result was significant in the coming years.
Another remarkable step was the issuance of
Dubai’s property law.7 2006, being one of the
most comprehensive regulations of the real
estate sector not only in the UAE but also in the
whole GCC region. This freeing law and the
following regulations by other emirates have
helped to establish a base of trust that will
continue to attract international investments
into this vital sector.
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Chapter 4
the Ministry of Foreign Trade in the annual
trade policy report.
Today, a well-established real estate
development and investment, a solid
construction sector, a growing property and
facilities management sector, a demanddriven infrastructure development sector,
(this coma is called a serial comma used to
omit readers’ misunderstanding) and a real
estate consultancy and urban planning make
the UAE’s superb real estate and construction
cluster. The UAE’s aim in the realm of real
estate is determined and clear which is to
position itself as an attractive global place
for investment. According to the Ministry of
Economy, the real estate, business services
and construction sector contributed around
22% per cent (USD 64,183 million) to the
country’s GDP in 2010. The bulk of foreign
direct investment has been mainly directed
into real estate projects, as demonstrated by
Why UAE ?
The real estate development and
investment sector is the first stage and
the most important one in the real estate
industry. Projects initiated by developers and
investors pull the rest of the sectors. A massive
expansion of developments was witnessed in
Abu Dhabi and Dubai as the decade of the new
millennium was approaching. The number of
buildings in Dubai alone rose to 97,953 upon
the end of 2009. More than USD 163.4 billion
is also planned to be pumped in the real estate
development line by Abu Dhabi to effectively
reach its urbanization ambitions plan by
2030. Other Emirates, Ras Al Khaimah, Ajman,
Sharjah, Umm Al Quwain, and Fujairah are
also investing heavily in the sector to supply
reliable real estate outputs for its residents.
The UAE, today, is the largest construction
market in the GCC with a value of $930
billion of projects under construction. It has
also announced the development of a great
number of residential housing communities,
commercial units, and industrial districts
across all emirates.
Rapid actions were taken to implement
the priorities of the UAE’s strategy since its
creation. All emirates have been effectively
working to construct strong infrastructure of
roads, ports, airports, and sewage systems. A
high quality highway network comprised of
about 4,000 Km asphalt paved roads, 15 large
commercial ports, 6 international airports,
and a state-of-the-art sewage public system
marked the notable milestones achieved in this
regard. The emirates continue expanding their
infrastructure by upgrading and remodeling
their roads networks, airports and seaports
as well as establishing new facilities, meeting
the demands of the growing population and
economy.
Facilities management started to emerge
as a new market in this industry due to the
increasing number of buildings and housing
units that require continuous care and
maintenance. The demand for mechanical,
electrical and plumbing engineers, cleaners,
security guards and landscapers are growing
as the construction projects in the UAE are
growing. International FM companies are
viewing the country as one of the most
favorable locations in this industry in the world.
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Chapter 4
Real Estate Development
and Investment
The rally that was witnessed in Dubai’s
real estate development gave a unique
example of success to follow not just for
other emirates but also for the whole world.
What are the real estate strategies of the
emirates and how they are implementing
them?
then. The massive commercial and residential
developments such as Jumeirah Palm, Burj
Khalifah, Burj Al Arab, and Dubai Marina are
only some of the accomplished projects by
region’s real estate developers. Emaar, the
leading properties developer, has launched
more than 50 projects in 2010. The major
constructions have placed Dubai as one of the
most attractive and growing real estate hub in
the world map. Dubai is also developing of a
number of outrageous construction projects
and villas complexes.
The demographics fundamentals of the
UAE, the mass available lands planned for
urbanization and the encouraging properties’
ownership regulations are forming the new
picture of the real estate sector. Dubai, Ajman,
Umm Al Quwain, and Fujairah designated
specific lands to be developed where the
expatriates can have freehold ownership over
their properties, while Abu Dhabi and Sharjah
gave the green light for 99-year leasehold law.
More attracting regulations are expected to
be passed during the next coming years.
Real estate development and investment
contribution to the country’s GDP has reached
USD 29,514 million in 2010, an increase of
52.3% since 2005. The astonishing real estate
development projects that are planned or
underway are capable of increasing the sector’s
share in the GDP. All the emirates are putting
their hands together on the development’s
wheel to take the real estate sector to a higher
niche.
The emirate of Abu Dhabi is witnessing a
historical growing period in its real estate
sector. An estimated of USD 562 billion worth
of projects are under construction or underway.
Its current high hotels occupancy rate of over
than 72% is giving a positive and secure
feeling to local and international investors to
continue investing in this vital industry.
Greater heights of real estate development
were reached in Dubai, encouraging the
emirate to issue more attracting regulations.
In 2006, Dubai Freehold Law 7 was passed
in March 2006 which legalized foreign
ownership of property in designated areas.
Foreign capital has been flooding in since
Why UAE ?
Sharjah is also developing its residential
and industrial areas. Building approximately
5,000 homes for nationals in Rahmania and
Seouh, tow suburbs of the emirate, and a new
town in al Juwaiza that houses around 2,000
plots for villas and low-rise residential and
commercial buildings are a few of the notable
residential projects that are aimed to meet the
increasing number of residents of the emirate.
The industrial real estate has also been under
the emirate’s focus. The plan is to reconstruct
some of the existing industrial areas and
building new industrial complexes. Emirates
Industrial City is the major industrial initiative
in the emirate.
After liberalizing its real estate sector by
granting expatriates the right of leasehold,
Ajman is heading forward with the
development of its real estate atmosphere.
Developing mixed-use, residential, commercial
and industrial construction projects as well
as infrastructure development are a priority
of Ajman’s real estate strategy in order to
transform the emirate to a modern urbanized
city. Some examples of these mega projects
include Al Hilal Tower, Al Ameera Village and
Ajman One.
The Government of Umm Al-Qaiwain is
committed to the development of real estate
projects and has linked up with Emaar to create
a new development surrounding a purposebuilt marina. Umm Al-Qaiwain Marina will be
a vast, master-planned waterfront community
located on the shore of Khor al-Beidah.
Resort and hotel rooms as well as parks and
recreational areas, retail facilities, schools and
community centers are planned.
Ras Al Khaimah is also undergoing an
ambitious phase of development including
investments in infrastructure improvement,
tourism, property, shopping, and efforts to
attract industrial and commercial enterprises.
USD 27 billion worth of residential and
commercial projects are currently in various
stages of development across the emirate.
Emaar, a leading real estate developer,
has been developing a number of real
estate projects that will surround the new
purpose-built marina, Umm Al Quwain
Marina, located on the sore of Khor Al Beidah.
Hotels, parks, recreational areas, retail facilities,
schools, and community centers are planned.
The eastern emirate, Fujairah, has also launched
several strategic real estate developments
that are concentrated on the shore of the
Gulf of Oman coastline. The Fujairah Dana,
a combination of villas and hotels, Fujairah
Paradise, a multifaceted project, are being
planned. Furthermore, the emirate is planning
to build a large number of residential units as
well as commercial buildings.
All emirates have their own authorizing
entities. Abu Dhabi Real Estate Regulatory
Authority, Dubai Real Estate Regulatory
Authority, Sharjah Real Estate Regulatory
Agency, Ajman Real Estate Regulatory Agency,
RAKIA Real Estate Regulatory Authority,
Fujairah Real Estate Regulatory Agency, and
Umm Al Quwain Real Estate Regulatory Agency
have the responsibility to oversee and regulate
the real estate activity in their designated
jurisdiction.
EMAAR Properties PJSC is one of the largest
property developers and one of the leading
premier lifestyles providers. The company
has accomplished recognized properties and
master-planned communities in both markets
domestically and globally. It is the prime
mover of Dubai’s real estate and construction
sector. Burj Khalifah, the tallest free-standing
structure in the world, is the most noteworthy
project accomplished by Emaar.
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Nakheel properties, a Dubai-based land
reclamation and residential projects creator,
is also a main player in the real estate
development. By establishing imaginary
projects like the World, the Universe Islands,
and Palm Islands, it has driven the real estate
market. Sorouh Real Estate, Al Qudrah Real
Estate and Al Dar Properties are the largest
real estate developers in Abu Dhabi. Other
regional’s important players are Deyaar
Development PJSC, Rakeen Development PJSC,
RAK Properties, Aqaar and Burooj Properties.
International companies have been
attracted by the great potential lay within
all emirates. International Trident Holdings
succeeded to develop number of projects
such as its signature project “Waterfront”,
Marinascape, and Bayside Residence. Best
Homes, a Canadian-based international
real estate developer, has also managed to
develop number of excellent projects like the
Global Residencia, Rescom Tower, and others.
International leading real estate developers
are working together with local companies
to develop properties in all emirates to meet
the growing demands by the increasing
population and economic expansion.
Sharjah and Ras Al Khaimah
Developing Industrial Areas
To become the ideal industrial hub in the
UAE, Sharjah is developing one of its largest
industrial projects in the Saja’a district. The
mega industrial initiative, Emirates Industrial
City, is designed to accommodate the dramatic
influx of industrial enterprises into Sharjah
providing world class infrastructure and
support in an easily accessible location. The
master plan of the industrial area is built over
a total of 8.3 million square feet divided into
8 sectors to support different projects in the
areas of industrial plots, warehouse projects,
commercial/industrial,
and
residential/
commercial.
Ras Al Khaimah Investment Authority, the
emirate’s investment arm, is also developing
a mega industrial area “Al Ghail Industrial
Park”. With a zone of 23 square km, several
manufacturing units will be housed in the
park. Incentives such as low registration fees
and long licensing period are to be granted
for local and international companies that will
operate this park.
Building Local House
Communities
Due to the increased rate of marriage in the
UAE, the government is reforming its strategy
of granting lands to the UAE nationals and
planning to build residential communities
and sell the community houses instead. The
new way will play a great role into organizing
the communities. Contracts between the
government of Abu Dhabi and several
Why UAE ?
Real Estate Developement in Emirates
Emirate
Main Developments
Abu Dhabi
Khalifa City, Saadiyat Island, Al Raha Beach Development, Masdar City,
Ghantoot Green City, Najmat Abu Dhabi, Al Reem Island, Lulu Island,
Abu Dhabi Airport Expansion, Mohammed bin Zayed City, Between
the Bridges, Gate Project, Yas Island, A large number of mixed-use
communities and residential units
Dubai
Villas Complexes (the Villa in Dubailand, Veneto in Dubai Waterfront,
Al Furjan, Jumeirah Gulf Estates, Al Barari, Al Badrah, Dubai Silicon
Oasis, and Victory Heights), Hydropolis (an underwater hotel, Dubai
Sports City, Dubailand, Burj Al Alam, Falcon city of Wonders,
Mall of Arabia, Business Bay, Hotel for Emirates Airline,
Sharjah
Emirates Industrial City, Villas Complexes in Seouh and Rahmanih,
Nujoom Islands , Al Juwaizh Project
Ajman
Emirates City, Al Hamra Village , Al Ferdus District, Falcon Towers,
Meeza Villas, Ajman One, and Emirates Modern Industrial Area
Ras Al Khaimah
Mina Al Arab , Julphar Towers, RAK Tower, Julphar Residence
Umm Al Quwain
Umm Al Quwain Marina
Fujairah
The Fujairah Dana (Pearl), Fujairah Paradise
properties developers like Sorouh were signed
to develop a number of communities for
Emirati families. Similar projects are expected
in all emirates. Government-backed properties
are being preferred by many developers since
they provide excellent liquidity especially
during real estate crisis. Through public-private
partnerships, international companies can
engage on the development of the planned
house communities.
and local government offices and embassies.
The city is expected to be completed by 2030.
Another gigantic construction project is the
Yas Island Development which a touristic
development that will house hotels, marinas,
resorts, and others. Abu Dhabi is on the top of
the most demanded construction destinations
in the world.
Abu Dhabi Promising Market
In 2008, the construction of major real estate
projects in Abu Dhabi worth USD 208 billion
namely Khalifa City, Yas Island Development,
Saadiyat Island, Masdar City, Al-Raha Beach
Complex, Ghantoot Green City, Al-Reem Island
development, Abu Dhabi Light Rail project and
MGM Grand Hotel was announced. Khalifah
City, The massive amount of investment by
the government and private investors as well
as the great works needed from construction
companies grabbed opportunities-seekers’
attention to engage in this UAE’s vital industry.
Khalifa City, one of the largest planned
projects, will comprise all federal ministries
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Construction
During the construction boom witnessed
in the emirate of Dubai in 2004, its share
of the UAE’s construction sector GDP flew
to over 50%. In 2009 Abu Dhabi occupied
the top in the construction sector by 65.1%.
What are the under construction projects
that were behind this dramatic shift and
how will the under planned ones shape this
figure?
The global economic distress had, in fact,
slowed down the growth of the construction
sector in the UAE in the late 2008. However,
signs of the economic recovery are now very
visible to the UAE visitors and residents.
The sharply-decreased prices of lands and
construction materials began to shape new
obtainable opportunities to properties
developers in order to get back to the
development track. The UAE government
has also announced its strong willingness of
investing in the infrastructure development
sector by initiating strategic projects such
as the building of the union rail system, the
roads’ networks connecting Fujairah to Dubai,
and Jebel Al Jais of Ras Al Khaimah to Emirates
road, and other multiple massive projects. The
government’s announcement along with an
overall economic stimulus plan has caused a
positive stir among the construction companies
and has also being playing an important
role toward lifting up the real estate and
construction sector. . In addition, the resulted
low prices of sales and rents achieved demand
for long terms.
Committed to its vision of making the
UAE as one of the most desirable investment
locations in the world, approximately USD 930
billion worth of projects are currently under
construction in the UAE.
Real estate developers and construction
companies are shifting their premier focus
from private to public sector schemes due to
increase number of the governmental projects.
This trend is expected to continue due to the
massive infrastructure projects as stated by
all emirates. Abu Dhabi had announced its
Why UAE ?
ambitious plan of boosting its infrastructure,
residential, and commercial properties. The
largest construction and infrastructure
projects by value in the GCC show that five
of the region’s 10 biggest schemes planned
or under way are in Abu Dhabi. The UAE was
ranked as the most buoyant property market
in the world.
The construction sector’s contribution to
the country’s GDP has reached USD 34,664
million in 2010 (11.6% to the UAE GDP in
2010 at Current Prices). It has been gradually
growing, with an average annual rate of 15.5%
at interval 2001 - 2010. The mega projects that
are underway or under the planning phase
will significantly increase its share in the next
coming years. Across all sectors and over all
emirates, opportunities in the construction
sector are countless.
The
rapid
economic
diversification
strategy is guiding the new directions of the
construction sector. The ranges and types of
projects planned include but not limited to
infrastructure, residential, commercial, and
governmental.
In order to achieve social stability for
both the national and expatriate population,
the UAE has announced a number of
residential
housing
communities.
The
expansion of Arabian Ranches, Porto Dubai
Al Furjan, Al Warsan, Emirates Hills and give
a clear indication of how the residential
construction subsector is boosting not only in
Abu Dhabi and Dubai but also in all emirates
that are committed to develop state-of-the-art
residential and communities. The estimated
value of residential projects in the UAE was
more than double in 2010 due to many
projects in pipeline after a delay in projects
during 2009.
The Emirates is also developing its
commercial and touristic units to cope with
the rapid growth incurred in this sector. High
rise developments are being either planned
or under construction. Establishing power
plants, water desalination plants, road and
rail network systems are been under the
development’s microscope of the government.
The massive expansion plan of the UAE’s
rail system is one the largest infrastructure
projects in the country. The plan is to develop
three rail schemes across all emirates from
Fujairah to Abu Dhabi.
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Many
local
construction
companies
existed before the real estate boom in 2004.
However, some of them have managed to
take a full advantage of it to become leaders
in this sector. Arabtec Construction LLC, a
regional and global leader in the construction
sector, accomplished a range of notable
diversified projects such as Burj Khalifa, Burj
Al Arab, Jet Fuel Farm in Dubai International
Airport, Mubarraz oil and gas island, and
other luxurious residential and commercial
developments. In order to perfectly
complete its projects, Arabtec engages with
other international specialized companies
through partnerships and subcontracts.
BelHasa
Engineering
and
Contracting,
Why UAE ?
Khansaheb Civil Engineering, Lootah Group of
Companies, Overseas AST, Al Naboodah Group
and Bukhatir Group are some of the leading
conglomerates in construction sector in the
UAE.
Foreign construction companies have
also placed their prints across the different
fields of the sector. Monolith Constructions,
an international engineering and contract
services provider, successfully constructed a
number of residential housings in Fujairah
and currently working on a commercial project
in Al Jerf, Ajman. ACTO General Contracting
Company,
a
multinational
company,
successfully completed various set of projects
in all emirates and from power stations to
basic villas. ACTO is considered as one of the
leading companies in this sector.
Entry Points
Abu Dhabi Rail System
Great efforts have been spent by the
government of Abu Dhabi to successfully reach
its desired heights that were set by its 2030
vision. Establishing a reliable rail system is one
of the emirate’s main goals toward creating a
sustainable transportation system. The metro rail
system will run approximately 131 kilometers. The
system is also planned to connect the mainland
with its islands Yas, Reem, Sowwah, and Saadiyat.
The International Association of Public Transport
(UITP) Charter on Sustainable Development was
signed by Abu Dhabi, raising the bar higher in
public transportation with Mott MacDonald was
appointed as the main project consultant. UITP
acts as the point of reference and a centre of
best practices for the public transport sector. The
project is expected to be completed by 2016.
A More Promising 2011 to Come
The UAE is experiencing one of the highest
unprecedented growths in the number of
construction projects in the world. Abu Dhabi
and Dubai share the majority of these projects.
Other emirates are also going through a
development move in terms of types and quantity
of projects. International construction companies
are viewing the UAE market as one of the most
attracting markets in the world due to the strong
commitment of the government to level up its
infrastructure over all sectors and to the strong
attendance by international investors who seek
opportunities in the real estate sector.
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Infrastructure
Development
During the harsh times of the economic
downturn, the government’s spending on
infrastructure succeeded to give an enough
confidence to investors in the UAE market.
What are the undergoing infrastructure
projects that will showcase the government’s
commitment into building one of the most
advanced and modern infrastructures in the
world?
The UAE is one of the fastest growing
infrastructure markets in the world. The
planned infrastructure projects are aimed to
meet all the essential needs in all aspects and
parts of the country. The country is not only
planning to develop new infrastructures but
also to maintain, advance, and reconstruct
the old utilities that are unable to support the
growing economy and the population. The
highly modern and sophisticated infrastructure
of the UAE includes ports, airports, a network
of roads and rail system, and multiple business
parks.
The government’s spending on the
development of its infrastructure is planned
to reach USD 2.04 billion in the year 2011,
23% of the total government spending. The
existing modern and sophisticated network
of ports and airports did not only advance
the economy of the country but they have
also become central to the entire region,
driving the government of the UAE to invest
more in this subsector. Currently, the UAE
has eleven operating ports. Mina Zayed, the
main gateway for container and general cargo
vessels, Musaffah Port, located in the heart
of the industrial city, and Freeport are the
operating ports in Abu Dhabi. Dubai’s ports
include Jebel Ali Port, a large and rapidly
expanding deep seawater port infrastructure,
and Port Rashid that is 13 meters deep and has
a capacity of 1,500,000 twenty-foot equivalent
units. Sharjah also has two ports, Sharjah Port
and Khorfakan Port, while other emirates have
one port each.
Why UAE ?
All emirates are planning to increase the
capacity of their ports. Fujairah Port has been
increasing its terminals’ capacity due to the
increased demand by petroleum companies
such as Gulf Petroleum, Oil Marketing &
Trading group, and the Singaporean oil
company Chemoil.
The UAE has six international airports.
Dubai Airport, one of the busiest in the region
with over 112 airlines Dubai, has become the
main aviation hub in the Middle East. Dubai
has also been developing its second airport
“Jebel Ali Airport” since 2005, with an area
covering 140 km2 . The new airport will be the
largest air-sea transportation centre in the
Middle East. While the Dubai Civil Aviation
Authority controls and operates Dubai airports,
Abu Dhabi International Airport, Al Bateen,
and Al Ain airports are operated by Abu Dhabi
Airports Company (ADAC). Also,a Sharjah and
Ras Al Khaimah have emergent airports due
to the increasing activities by RAK Air and Air
Arabia. In addition to advancing the seaports
and airports network, strategic initiative have
been also taken to enhance and develop the
roads inter- and intra- networks. In 2006,
the UAE established the National Transport
Authority (NTA) with the task of developing a
licensing system pertaining to land transport
and granting licenses to relevant transport
bodies covering all modes of Land Transport
for federal inter emirates transport and
international transport in accordance with
UAE relevant Laws and Regulations. Since then,
the land transport sector has been witnessing
a growth transition period. The UAE, currently,
has a high quality highway network comprised
of about 4,000 Km asphalt paved roads that
connect the all emirates as well as the country
to the Sultanate of Oman and Saudi Arabia.
Abu Dhabi Transport Department itself has
announced its willingness of investing USD
68.1 billion in the transport sector (roads and
Rails) in the emirate.
In order to reduce the dependency on
emissions-producing vehicles, Dubai started
building its Metro in 2005. 10 stations were
launched in 2009 and 29 stations are expected
to be operating by 2011. Abu Dhabi also has
set up its plans to develop its metro, covering
130 km and connecting major areas of the
emirate. Another railway system is under
planning to link all the northern emirates
with Dubai and Abu Dhabi Railway. Major
construction companies are seeking the great
opportunities.
Wastewater treatment and solid waste
disposal sectors in the UAE are as well growing
with the increased production of desalinated
water and the solid waste generated by the
increased numbers of UAE residents. The UAE
is one of the three highest per capita producers
of solid waste in the world. Most urban and
industrial areas and all new development
projects are connected to the public sewage
system. Solid waste disposal is run by the
municipalities and is well developed in the
UAE. Plans of developing a sewage system
in the emirates of Ajman, Fujairah, and Ras
Al Khaimah have been announced. Through
tenders, and partnering with the public sector
or local companies, international companies
can participate to seize the benefits of these
great opportunities.
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The UAE was among the first nations that
established specialized free zones with unique
infrastructure designed to suite a specialized
sector. The UAE has 47 free zones, with some
dedicated for specific services subsector such
as Dubai Media city and Dubai Healthcare.
Recently, a number of free zones have been
established to encourage trade and investment
in all emirates like Himriyah Free Zone, Fujairah
Free Zone, and Ajman Free Zone. In May 2004,
the emirate of Abu Dhabi has established
the Higher Corporation for Specialized
Economic Zones in order to provide an
integrated infrastructure, a suitable business
environment, and professional services
through the establishment and management
of special zones in Abu Dhabi. The planned 4
million square meters free trade zone in Abu
Dhabi Airport, and other 12 free zones are
planned to be developed.
Entry Points
Northern Emirates
The Federal Government put the plan of
improving the infrastructure of Northern Emirate
in the top of its priority list. It is initiating massive
projects in order to improve the quality of life of
its residents. USD 1.6 billion worth of projects
are expected to be pumped to upgrade the
water and electricity networks by building mega
power stations and water desalination plants in
Ajman, Ras Al Khaimah, Umm Al Quwain, and
Fujairah. Major roads and networks are planned
to be connecting the whole area.
An Integrated High-Speed Rail System
In order to reduce emissions produced by
conventional transport infrastructure, reduce the
traffic jams in the heart of the cities, and meet
the demand by the growing population, the UAE
is taking strategic initiative to build an integrated
high-speed rail system. With a capital of USD
272 million, the UAE’s national railway will cover
1,500 km, connecting the vital populated cities in
the UAE as well as being a part of the proposed
larger GCC railway network. Great investment
opportunities lay for international investors
to partner with local companies or establish a
specialized company in this field.
Why UAE ?
Major Infrastructure Projects in UAE
Emirate
Abu Dhabi
Ports
Khaleefa Port
Airports
Abu Dhabi
International Airport
Al Bateen Airport
Al Ain Airport
Al Ain International
Airport
Dubai Airport
Al Maktoum
Freezones
Abu Dhabi Airport Free Zone
Higher Corporation for Specialized
Economic Zones
Industrial City of Abu Dhabi
Khalifah Port and Industrial Zon
Dubai Airport Free Zone (DAFZ)
Dubai Car and Automotive City Free
Zone (DUCAMZ)
Dubai Flower Center Free Zone at
Dubai International Airport.
Dubai Gold and Diamond Park
Dubai Health Care City (DHCC)
Dubai Industrial City (DIC)
Dubai International Financial Centre
(DIFC)
Dubai Internet City (DIC)
Dubai Knowledge Village (DKV)
Dubai Media City
Dubai Multi Commodities Centre
(DMCC)
Dubai Gold and Commodities
Exchange (DGCX) - part of DMCC
Dubai Silicon Oasis
Dubai Technology and Media Free
Zone (TECOM)
Economic Zones World (EZW)
Jebel Ali Free Zone (JAFZ)
Dubai
Jebel Ali Port
Sharjah
Khalid Port
Ajman
Ajman Port
Umm
Al Quwain
Ahmed bin
Rashid Port
Umm Al Quwain
Ahmed bin Rashid Free Zone
Ras Al
Khaimah
Saqr Port
RAK Airport
RAK Free Trade Zone
RAK Investment Authority Free Zone
Ras Al Khaimah Media Free Zone
Fujairah
Fujairah Port
Fujairah International
Airport
Fujairah Free Zone
Fujairah Creative City
Sharjah Airport
Hamriyah Free zone
Sharjah Airport International Free
Zone
Ajman Free Zone
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Property and Facility
Management
Property Management
The demand for property and facilities
management will continue to increase as
the economy of the UAE is growing. The
companies and residents are demanding
better serviced and managed buildings.
How does the UAE plan to boost this new
sector to meet the desired expectations?
The historical witnessed growth in the
number of existing properties in the UAE
demanded real estate developers and
buildings’ owners to hand over the leasing and
sales operations to specialized agencies called
property managers. The volume of these
existing residential, commercial, and industrial
properties and the undergoing projects
necessitate the property management sector
to be sufficient in term of quantity and quality.
Between 2000 and 2005, the UAE
experienced an unprecedented properties
growth. The total number of buildings reached
335,487. In the late 2005, USD 35.42 billion
worth of projects were under construction,
dominating the construction sector in the
GCC. The high demand drove the prices to a
suddenly-uptrend move. However, the prices
declined as all the global market suffered due
to the economic downturn in 2008 and late
2009. Early signs of recovery began to appear
in the early 2010 and prices of properties
started to take a new correction move. The
liberalizing real estate regulations encouraged
the emergence of property managers. Since
then, the market has been experiencing a
historical transformational move from “driving
effect of pure investors market towards
greater emphasis on owner-occupier and enduser demand market.”
National and international property
management
companies
are
greatly
benefiting from the unique pulling attracting
opportunities in the UAE. Union Properties, a
subsidiary of Emirates Bank, manages a great
Why UAE ?
number of existing and under construction
landmark
residential
and
commercial
developments in Dubai such as Al Wasl Villas,
Creekside Residence, and the Control Tower
TM, Burooj Properties, Deyar Properties, RAK
Properties, and Northern Emirates Properties
are also regional leaders in this sector as well.
The attracting opportunities in the
property management subsector have pulled
the attentions of the global companies. After
realizing the great potential in the UAE market,
Asteco Property Management LLC and Better
Homes, international property management
companies, established offices in the UAE.
Facilities Management (FM)
Property managers, household owners,
landowners, and real estate developers in
the UAE began to realize the importance of
investing on the maintenance of the facilities
of their buildings in order maximize their
life’s expectancy and to attract tenants and
buyers in a competitive market. The demand
for facilities management is gradually
growing due to the realization progress of
its importance, the existing growth in the
construction, and most importantly the harsh
environmental conditions of the UAE that
could reduce the capacity of the facilities. The
new facilities management laws have also
been contributing to the increasing demand
for FM services. They require buildings under
construction as well as existing buildings to
follow the guidelines set by the government
that coincide with the globally-recognized
green buildings regulations.
In addition, these new enforced regulations
are playing a great role into enlightening both
developers and owners of existing properties
of the benefits that can be reaped of a
sustainable facility such as energy consumption,
water use, and waste management. The
huge ever-increasing demand in the UAE
in particular and in the GCC region overall
has called international FM organizations
attention to join the attracting market. Today,
FM companies do not only operate after the
completion of the project, they also cooperate
with the developers from the drawing
phase. By implementing FM guidelines, the
developers are ensured that their buildings
will match the intended purpose which will
certainly reduce the cost of maintenance and
maximize the buildings efficiency.
Some of the leading providers of integrated
facilities management solutions in the UAE,
are Imdaad, Edama, Al Shirawi FM . The latest
signed agreements between Imdaad and the
Dubai Roads and Transportation Authority
(RTA) and the Abu Dhabi General Services
Company lined some of the company’s
achievements in 2010.
One of the leading international
companies in the UAE’s facilities management
field is Drake & Scull International PJSC. The
originally British company has successfully
completed a great number of projects in
Abu Dhabi and Dubai across all sectors such
as providing mechanical, electrical and
plumbing (MEP) services for Abu Dhabi
National Exhibition, Rashid Hospital, and
International Airport Terminal. The company
has over than 30 ongoing projects in the UAE
itself. Other recognized names in the realm of
FM are Hitches & Glitches, a subsidiary of the
Pakistani conglomerate Dreshak Group.
Entry Points
Property and Facilities
Management Software
The uprising number of existing buildings
requires a sophisticated methodology that
is able and reliable to keep track of building
owners, property locations, commercial and
residential units, and tenant’s information.
Suppliers of such technologies are as much
needed as the existence of the highly advanced
facilities management companies.
Northern Emirates Require
Sophisticated Property Managers
In order to reduce emissions produced by
conventional transport infrastructure, reduce the
traffic jams in the heart of the cities, and meet
the demand by the growing population, the UAE
is taking strategic initiative to build an integrated
high-speed rail system. With a capital of USD
272 million, the UAE’s national railway will cover
1,500 km, connecting the vital populated cities in
the UAE as well as being a part of the proposed
larger GCC railway network. Great investment
opportunities lay for international investors
to partner with local companies or establish a
specialized company in this field.
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Why UAE ?
Tourism and
Hospitality
“
Already an established location in the world’s
top visited destinations map for leisure, business and
alternative tourism, the UAE is continuing to enrich its
offerings to tourists and open new avenues for innovative
tourism concepts.
“
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respond to wealthy consumer’s preferences,
such as the shopping festival, prestigious horse
races, tennis tournaments, car rallies, and
other highly-prized sports events.
Hotels and Hospitality
Travel and tourism is one of the fastest
growing industries across the world and the
UAE government is increasingly embracing the
sector as a core part of its growth strategies.
Global travel and tourism is projected to grow
from USD 6.0 trillion in 2011 to USD 7.2 trillion
by 2015. The share contribution of tourism
to gross domestic product (GDP) is set to
strengthen in the next five years, especially in
the Middle East with the UAE largely behind
the rapid growth of the sector in the region.
The UAE travel and tourism sector contribution
to Gross Domestic Product is set to significantly
outperform the global and the Middle East
percentage.
This growth could be attributed to large
public investment in airports, airlines, and
other transport infrastructure, making it
possible to travel to the UAE easily, large
investments in hotels, and large and
varied sports and leisure projects that
Why UAE ?
In the past ten years the UAE has committed
substantial resources into the development of
tourism and that effort is already paying off.
According to Dubai Property Group, in 2008,
8.5% of the total jobs in the UAE were travel &
tourism related and the proportion of tourism
related jobs was projected to grow to 9.1% of
total jobs by 2016. Travel and tourism has also
become a notable contributor of the country’s
exports – with 10.4% of the UAE exports being
tourism driven .
In 2008, the World Tourism and Travel
Council (WTTC) recognized UAE’s spectacular
achievements in tourism and ranked the
country 18th on international tourism
competitiveness . The World Tourism and
Travel Council (WTTC) uses the following
criteria in benchmarking a country on
international tourism competitiveness: safety
and security, health and hygiene, infrastructure,
information and communication, technology,
price
competitiveness,
human
capital,
cultural and natural resources, air and
Travel & Tourism Total Contribution to GDP
Comparison
Year
Contribution (USD Billion)
Real Growth (%)
2011
31.43
5.2
10.3
2012
33.451
6.4
10.4
Arab
2013
36.192
8.1
10.6
Emirates
2014
39.399
8.8
11
2015
42.188
7
11.2
2011
159.482
3.7
8
2012
167.118
4.7
8
2013
175.211
4.7
8
2014
183.864
4.8
8
2015
192.784
4.7
8
United
Middle
East
World
Share (%)
2011
5,991.94
3.8
9.1
2012
6,294.51
4.8
9.1
2013
6,609.80
4.7
9.2
2014
6,920.08
4.4
9.3
2015
7,232.94
4.2
9.3
ground transport policy rules and regulations.
The tourism and hospitality industry sector
is an integral part of the UAE business strategy.
While oil and gas still dominated the UAE
economy as evidenced by the 2008 GDP results,
other sectors are increasingly becoming
prominent and the hotel and restaurants
sector is amongst them. In 2008, hotels and
restaurant posted a 15.1% growth, 7.7% ahead
of the overall UAE GDP growth.
The investment the UAE is projected to
plough into the development of travel and
tourism in the next five years demonstrates
the country’s commitment towards making
itself a leading tourist destination. World
Tourism and Travel Council (WTTC) predicts
the UAE’s investment to be proportionally
five times higher than the global average and
three times higher than that of the overall
Middle East region.
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Chapter 4
in terms of the number of inbound tourists
expected to arrive in 2010. Dubai expects to
draw 7.9 million international visitors in 2011,
representing a notable growth rate of 17.3
per cent when compared to 2010. MasterCard,
a global financial institution, has indicated
that, Dubai’s international visitor spending is
expected to surge 24% to USD 7.8 billion in
2011 from USD 6.3 billion in 2010 and USD 5.2
billion in 2009 MasterCard .
According to the UAE Yearbook 2010, the
UAE is determined to attract foreign direct
investment into commerce and tourism and
is therefore offering an unrivaled business
base across the region. The country has an
open market system which is supported by a
world-class infrastructure and service culture
where the UAE government acts as a facilitator
for business and free trade. International
companies setting up in the UAE can avail
business advantages that are generally
unmatched across the world. For instance,
the highly successful UAE business free zones
allow companies full ownership and control of
their businesses, flexible investment options
and non-payment of customs excise duty
among others.
The Abu Dhabi Tourism Authority expects to
see an increase of 15.5 per cent in international
visitors with the total tourist spending
growing 21.8 percent to USD 2 billion this year.
Abu Dhabi’s hotel guest figures also hit record
highs recently with occupancy levels up from
nine per cent to 65 per cent. Abu Dhabi is one
destination that has highest number of hotel
rooms under active pipeline in the GCC.
Dubai has made impressive accomplishment
in travel and tourism. CB Richard Ellis, a leading
commercial real estate company, ranks Dubai
as the world’s ninth global tourist destination.
The emirate was set to outperform New York,
Amsterdam, Kuala Lumpur and Shanghai
The Northern Emirates have also made
notable progress in tourism development.
In 1998, The World Tourism Organization
crowned Sharjah, the “Cultural Capital of the
Arab World” due to its remarkable museums
that advance the Arab culture and heritage.
Why UAE ?
Fujairah has made important initiatives in
the protection of the environment –advancing
the ideals of ecotourism particularly in the
protection of the mountain reserve that spans
nearly 220 square kilometers . Ras Al Khaimah
has a landscape and the golden beaches
that offer unique scenery in the region and
therefore its potential to grow into a notable
tourist destination is boundless.
The growth potential of luxury and
budget hotels, and student accommodation
in the UAE, can be assessed by looking at
developments in each emirate, particularly,
in Abu Dhabi, Dubai and Sharjah. The three
emirates are the largest and account for more
than three quarters of the country’s GDP. Ras
Al Khaimah has also made significant strides
in this regard.
Capital Investment in Travel and Tourism
25%
20%
15%
10%
5%
0%
2011
2012
2013
2014
2015
United Arab Emirates Share (%)
Middle East (%)
World (%)
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Chapter 4
like F1 Etihad Airways Abu Dhabi Grand Prix
which attract high-end visitors and therefore
its continued focus on high –end hotels.
In 2009, Abu Dhabi was ranked the second
most expensive city for hotel rooms in the
world after Moscow. Abu Dhabi has since
added more hotel rooms and the rates have
since dropped by 15% (from an average of USD
301 to USD 256). The city is now ranked 24th
on being expensive and has in a way become
a more competitive tourist destination. The
latest data shows that Abu Dhabi would have
more hotels added on the high-end market
and this should add further pressure on the
rates. Most of the hotels in the pipeline in
next coming months are high-end. Recently,
a few of them have opened their doors to
tourists like the Monte-Carlo Beach Club in
Saadiyat, The St. Regis Saadiyat Island Resort
and The Jumeirah Al Etihad Towers.
Abu Dhabi’s main source of guest has
traditionally been the UK and Germany. However,
visitors from Russia and Saudi Arabia are on the
increase. The later have significantly boosted
the 10% jump in guests over 2011. The Emirate
holds some of the Global premium sports events
Why UAE ?
Another segment that could be given
attentions is the budget rooms as India is also
becoming an important source for visitors and
the majority could be low to mid-segment.
Abu Dhabi therefore needs to ensure that
it has the right balance of low to high- end
hotels .
Abu Dhabi expects to see an increase of
15.5 per cent in international visitors with the
total tourist spending surging 21.8 percent to
USD 2 billion in 2011 .
Dubai has made remarkable achievements
in the hospitality industry.
CB Richard
Ellis ranked Dubai within the top-ten most
popular business cities. Dubai’s success can be
attributed to the emirate’s ability to promptly
adjust to the needs of the market and provide
a balanced portfolio of accommodation that
caters for all categories of customers –from
low-end to high-end. The introduction of
low cost airlines has seen a jump in demand
for budget rooms-which the emirate should
continually address. According to MasterCard
Dubai’s international visitor spending is
expected to surge by twenty four per cent to
USD 7.8 billion in 2011 up from USD 6.3 billion
in 2010 and USD 5.2 billion in 2009 .
Sharjah, the third largest Emirate of the
UAE, has made huge milestones in developing
culture related ecotourism. The emirate’s hotel
network is biased towards low to mid end
segment and, with the introduction of budget
carriers like Flydubai, demand continues to
grow in the budget traveler segment.
There are a number of initiatives to address
the growing low to mid segment market.
Rotana Hotels, a popular hotel group, has
partnered with Air Arabia, a budget air carrier,
to launch a low- cost hotel brand called Centro,
mainly targeted towards budget travelers.
The number of guests at Sharjah’s hotels
and hotel apartments in April 2011 stood at
143,341 — 80,459 hotel guests and 62,882
hotel apartment guests — compared to
129,046 guests in April 2010, recording a steep
eleven per cent growth .
Entry Points
Providing Budget Hotel Rooms across
all Emirates
The introduction of the budget carriers has
led to the growth of the low-mid segment
arrivals which has in turn increased the demand
for budget rooms across Dubai, Sharjah and Abu
Dhabi. Rotana Hotel Group has partnered with
Air Arabia to provide budget hotels in Sharjah.
Such partnerships can be replicated across all the
emirates.
Investment into Hotels on Saadiyat Island to
Support Abu Dhabi’s 2030 Vision
The Abu Dhabi 2030 vision seeks to establish
the emirate as a regional centre of culture
with a global capital city as its hub. A massive
infrastructure has to be put in place for this
vision to be realized. Hotels are part of this
infrastructure development. A number of hotels
are planned for Saadiyat Island and this offers
opportunities for investment into Government
backed programs.
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Chapter 4
Spas and Recreation
Facilities
The word spa has become a familiar global
term. According to Susie Ellis, the president
of SpaFinder Inc., a global resource group that
publishes yearly reports on Spas Worldwide,
the word “spa” has captured people’s
imagination and is now a term that people
can relate to positively. The Middle East has
registered a substantial 34% yearly growth
in spa facilities in the past few years . The
region’s wellness and Spa industry is estimated
at USD680million of which about 40% comes
from the United Arab Emirates.
the growing regional market which registered
nearly 10 per cent growth in the number of
exhibitors and visitors from last year.
In a report by the Gulf News in 2008, the
UAE shows to be well ahead of its Middle East
and North Africa counterparts in terms of the
number of spa facilities in the country and in
revenue.
For the majority of people in the UAE
personal wellness is at the center of visiting
a spa. The days have become busier and
crowded and hence stressful for most people
and a spa treatment brings some welcome
relief. Spa facilities have become an integral
part of the service offered by malls. Obesity
is observed to be a growing occurrence in the
region. Many spa facilities now offer specialty
treatments to help people get into shape.
The Dubai Chamber of Commerce attributes
the growth of the wellness and spa industry
in the UAE to two annual festivals; the Dubai
Shopping Festival and the Dubai Summer
Surprises which are said to be directly raising the
annual sales trends. In May 2011, Dubai hosted
yet another successful Beauty world Middle
East Specialist Exhibition which hosted over
700 exhibitors from 44 countries . The strong
participation in the exhibition is a testament to
The UAE is also a home for some of the
world’s most innovative theme parks and have
attracted a number of leading international
brands to bring about recreational facilities
that have drawn a large influx of tourists who
enjoy such activities.
Details of Spas in Middle Eastern Region
Country
Estimated Number of Spas
212
267.9
Saudi Arabia
96
52.4
Qatar
19
19.9
Oman
25
32.1
Bahrain
24
27.4
Kuwait
33
22.2
Egypt
146
43.7
Tunisia
41
86.2
Morocco
79
39.8
Why UAE ?
Total Revenue (USD Million)
Entry Points
Specialized Wellness and Spa Treatments
In the larger Middle East and North Africa
regions, obesity has been observed to be an
increasing problem among the population.
Wellness and Spa is a business that can help
people look good through engaging in regular
exercising and specialized treatments to address
this weight problem. Because UAE is the de facto
tourism hub, establishing specialized wellness
spas that provide these treatments can be a
lucrative business opportunity. The country’s
diverse natural scenery, developed health care
sector and ability to attract international brands
in this field are strong competitive advantages
that will serve this niche to flourish.
Partnerships with Hotels to Provide Spas
to Meet Increased Demand
People across the UAE now have larger
than ever disposable income. For many tourists
investment in their health is a natural way to enjoy
their leisure time. The UAE also has the longest
pipeline of hotels under construction across the
GCC. Hotels have to have a spa for them to be
seen as offering a full service.
Spa Academies Offering Formal Training
and Qualifications
A number of people working in Spas do not
have formal training and qualifications. Spas have
become an integral part of community health
and should be manned by qualified personnel.
Need for academies to provide formal training
and qualifications would further increase as more
of these facilities open each year.
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Chapter 4
Tourism and Travel
Services
With the variety of touristic offering that
the UAE presents and the ambitious tourism
sector development plans embraces by the
country, the establishment of capable tour
operators and travel service providers is vital
to complete and complement the tourism
industry value chain.
Continuously, new
innovative ways can be developed to utilize
the country’s offerings and news concepts can
be pioneered to further attract tourists from
around the world to enjoy the UAE experience.
Currently, tour companies offer tailormade services to help visitors discover the UAE.
Organized tours range from a half-day city
tour to one- or two-night desert and mountain
safaris plus daily programs for desert driving,
shopping tours, camel riding, canoe trips, sand
boarding, sand skiing, dune buggy driving,
theme park tours and water park adventures.
Special interest packages can also be arranged
to suit the visitor’s specialized hobby or sport
such as diving, deep-sea fishing, cultural tours
or bird watching.
Tour operators are licensed via the different
tourism development authorities across the
seven emirates (refer to chapter 7 for more
details). In general, tour operators wishing to
organize in-bound tours are required to have
qualified and licensed tour guides. Abu Dhabi
Tourism Authority (ADTA), Dubai Department
of Tourism and Commerce Marketing and
Sharjah Commerce and Tourism Development
Authority offer comprehensive trainings
programs in this field. Tour guides should
have at least a recognized college degree and
should have decent knowledge about the UAE
history, geography and culture.
As the global economy is regaining
momentum, the inflow of tourists will receive
a positive boost. The United Nations World
Tourism Organization forecasts tourism related
revenues to hit a high of USD 2 trillion by year
2020. Global tourism expected grow from 1.06
billion travelers in 2010 to 1.56 billion in 2020
.Meanwhile the number of tourists travelling
to the Middle East is expected to reach 136
million by 2020 .
Today, the biggest tour operators in the
UAE are Emirates Holidays and Dnata, both
owned by Emirates Airlines. Both of the
Emirates Airlines tour operators serve the
high–end segment of the market given the
airline’s position as a leading global carrier.
In addition, Etihad Airway and Air Arabia
formed their own tour operators and are
servicing their own respective markets. In the
UAE market, major tour operators are either
owned by airlines or linked to major operators
outside of UAE. However, one should not
underestimate the role of the locally-owned
tour operating companies, such as Net Tours,
Arabian Adventures among many other small
and medium-sized operators.
With budget carriers like Flydubai and Air
Arabia recording phenomenal success in the
budget traveler segment, a number of tour
operators are eyeing opportunities in this
sector. Flydubai plans to add a holiday division
and bring in new routes as it targets a 140
Why UAE ?
per cent rise in passengers in 2011 compared
with 2010 . Holiday Factory, a Germany owned
company, launched in the budget traveler
segment early 2011 in Dubai promising
affordable and competitive package deals for
the mass market.
of outbound operator services provides several
opportunities given UAE’s long coastline and
large number of ports.
Tour operators come in three categories:
overseas operators, inbound and outbound
tour operators. A number of operators provide
both inbound and outbound services. Inbound
tour Operators offer a number of possibilities
like Shopping tours in Dubai hailed as the
shopping centre of the world with around
twenty shopping malls, water sports like water
surfing, skiing, kayaking, helicopter and hotair balloon tours give the tourist a bird–eye’s
view of the of the cities and the desert, and
Mosque tour for non-Muslims to promote
cross-cultural understanding.
Capitalizing on the Sports Niche
The UAE market of outbound tourist is
very diverse and therefore offers huge niche
marketing opportunities for tour operators. A
number of services offered in UAE can also be
offered in other GCC countries as the countries
have geographic features and cultures
similarities to the UAE.
Abu Dhabi Tourism Authority (ADTA) and
MSC Cruises signed a landmark co-operation
agreement that will see the world’s fastest
growing cruise operators deploy one of
its its top vessels to the UAE capital on a
homeport basis from October 2011. This form
Entry Points
The UAE is renowned for having some of the
best sporting facilities across the world therefore
the country attracts major sports events. The
Yas Marina Circuit annually hosts the Etihad
Airways Abu Dhabi Grand Prix in November.
The event will attract upper-end travelers with
diverse needs from across the world creating
opportunities for niche tour operators. The circuit
can accommodate 50,000 spectators. The Dubai
Duty Free Tennis Championships and the Capitala
World Tennis Championship are other major
sporting events expected to attract thousands of
high income travelers who can be targeted with
customized tours suiting their interests.
Targeting Budget Travelers
UAE airlines are consistently adding new
destinations.
Flydubai, one of the budget
carriers, wants to add a holiday division and open
more as it targets a 140% rise in passengers. The
carrier is expected to link up with tour operators
and hotels to create budget-themed holiday
packages for UAE residents seeking short breaks
throughout the region, as well as international
tourists looking to stay in the Emirates.
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Chapter 4
Museums and Historical
Tourism
The UAE founding father, the late Sheik
Zayed once commented that ‘He who does
not know the past cannot make the best of
his present and future for it is from the past
that we learn .’ The present UAE government
has continued to uphold this philosophy. The
best places to witness the initiatives the UAE is
taking to preserve and understand its past are
the museums and the historical sites around
the seven emirates. Each emirate manages its
own set of museums and heritage sites. Dubai,
Abu Dhabi and Sharjah have a more established
network of heritage sites and museums when
compared to their counterparts.
Abu Dhabi has developed 15 sites to serve
as historical tourism destinations. For instance
Delma Island showcases the nation’s pearling
history while Al Ain is popular for its forts
and castles. There are major museum and art
pavilion developments underway at Saadiyat
Island meant to turn the Island into one of the
major global cultural centers.
The
Tourism
Development
and
Investment Company (TDIC), as part of this
humongous cultural development, has
undertaken the project to develop Louvre
Why UAE ?
Abu Dhabi in partnership with the world
renown Louvre Museum in Paris. The Museum
is intended to be completed in 2014. Two
other museums, namely the Zayed Museum
in partnership with the British Museum, and
Guggenheim Abu Dhabi in cooperation with
the Guggenheim Museum in New York are also
underway.
Sharjah has 17 museums and cultural
centers. The museums are dedicated towards
showcasing the different aspects of the
country’s past, such as literature, archaeology,
natural history and the pearl trade tradition.
Dubai’s main archeological sites are located
in Jumeirah and Al Sufooh. The Dubai Museum
is located in Al Fahidi Fort, built around 1787.
There are also other specialized museums and
historical areas that have been established
and refurbished traditional houses such as
the Sheik Saeed’s house, the main house of
Sheik Saeed Al Moktoum who ruled Dubai
from 1912 to 1958, Traditional Architectural
Museum, Bastakiya Historical Area, and the
Hatta Heritage Village.
The emirate of Ras Al Khaimah has an
interesting heritage. The emirate also has
its own national museum and has a number
of ancient buildings and archaeological sites
including the Queen of Sheba Palace and the
“Tal Al Sanam” ancient sun-worshippers temple.
Although these sites are not yet tourist-ready,
the government of Ras Al Khaimah is seeking
serious partnerships to restore these sites are
turn them into tourist destination.
Entry Points
Saadiyat Island: Contributing to
a Future Cultural Hu
Saadiyat Island Development is at the core
of the Abu Dhabi 2030 Economic and Cultural
Vision. The Island will be the host for seven mega
projects including the three major museums:
the Louvre Abu Dhabi, Sayed Museum and the
Guggenheim Museum. All of these projects
With diligent efforts and sound value
proposition, the government of Abu Dhabi
succeeded in securing key international
partnerships with topnotch museums that will
provide some of its top-tier collections and
will transfer technical know-how and expertise
in this field to the young generation of talent.
The first of these museums is to be completed
in 2014.
While Abu Dhabi is undertaking the
investments of these strategic projects, qualified
local and international suppliers, and expert
houses are invited to contribute to different
aspects of the projects and infrastructure
developments including facilities construction,
technical consultancy, curation, international
marketing, and interior design among other
areas. The Tourism Development and Investment
Company (TDIC) has been given the mandate to
oversee these major development projects and
is the point of contact for interested suppliers.
Restoring Historical Jewels
All over the world, viable commercial
opportunities have been realized out of the
restoration and effective marketing of sites with
historical significance. Throughout the forty
years of the nation’s federation, efforts have
been made by the federal and local governments
to renovate a number of historical sites including
forts, mosques, old souks and old houses, and
to turn them into attractive tourist destinations.
However, there are still several sites that required
joint efforts by both the government and
private sector for rehabilitation and commercial
development such as the Queen Sheba’s Palace
in Ras Al Khaimah and Al Bidya Mosque in
Fujairah. Opportunities are also available
across the seven emirates to develop innovative
concepts centered on the facilities and historical
sites that have been renovated. For instance,
the old houses in Al Bastakiya Historical Area in
Dubai are available to be used as a venue for
projects that can attract tourists and shoppers
visiting or living in the country.
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Chapter 4
Events and Incentives
Tourism
The Events and Incentives Tourism Sector
is a significant driver not only of the UAE
economy but also of the global recognition of
the brand UAE. The country has become known
as a host some of the leading international
events and conferences, exhibitions, and
trade fairs spanning different industries and
attracting both retail and corporate visitors
and delegates thanks to the state-of-the-art
conference and exhibition facilities across the
seven emirates, and the country’s position
as a global airline hub that connects to the
world’s different continents. Recent estimates
indicate that 65% of the current exhibition
space available in the GCC is situated in UAE
indicates that the country has been able to
capitalize on its strategic crossroads location
between Europe, Africa and Asia.
The UAE is today one of the leaders in the
international exhibition industry hosting some
of the largest and most significant exhibitions
across different sectors globally. Some of the
notable annual exhibitions held in the country
include International Defense Exhibition and
Conference (IDEX), one of the biggest shows
for defense equipment and services, Gulf
Information Technology Exhibition (GITEX),
one of the world’s largest information
technology related exhibition, and Gulfood,
the world’s largest annual food stuff related
exhibition. Furthermore, the biennial Dubai
Airshow is today one of the must-attend
events for the global industry leaders being
the third largest aviation exhibition in the
world. It is noteworthy that number of visitors
to the Dubai International Convention and
Exhibition Centre (DICEC) and Dubai Airport
Expo Centre has increased by 10% in 2008
reaching a total of 1.2 million business visitors.
With its ability to conceptualize and attract
such caliber of exhibitions, the UAE now has
50% market share in the total Middle East
exhibitions industry.
Why UAE ?
Moreover, the country has also become
a destination of choice for conventions,
conferences and international organizations’
meetings. Today, With 31 international
association meetings held in Dubai 2010, it is
ranked by International Congress & Convention
Association (ICCA) as the 51st destination
globally in this category . Annually, the major
cities of the UAE host hundreds of regional
and international conventions, conferences,
forums and summits that draw professionals
from different industries and with a wide
variety of domain expertise.
In 2003, Dubai orchestrated the Annual
Meetings of the World Bank Group and the
International Monetary Fund. Held on the
custom-built Dubai International Convention
Center, the event was remarkably successful,
strongly re-enforcing the brand of the city
and the country in the international business
tourism arena. The annually held Abu Dhabi
Future Energy Summit, pioneered in 2010
by MASDAR and attended by presidents
and royalties, is another signal of the
foresightedness of the UAE in bringing
together thought-leadership from around the
world to strategize the road ahead in one of
the most critical issues for humanity.
The Arab Strategy Forum, Arab Health
Congress, Leaders in Dubai and Middle East
Communications Exhibition and Conference
(MECOM) in Abu Dhabi are some of many
other leading events organized that take
place regularly in the country. More of these
accomplishments in this domain have been
attained in keeping the UAE as one of the
most preferred destinations for top-tier
international convention organizers.
Each Emirate manages its own exhibitions
and conference facilities. Abu Dhabi launched
the Advantage Abu Dhabi in 2009 in view
of promoting conference and exhibition
initiatives. The Emirate has a number of
projects underway, one of which is an AED 8
billion (about USD 2.2 billion) capital centre
development, fully integrated community
project which is part of the Emirate’s vision
for 2030. This huge development will include
provisions for large exhibition halls and
a number of state-of-the-art conference
facilities. Currently, Abu Dhabi National
Exhibition Centre, with a total area of 73,000
square meters, serves as the main venue
for major international exhibitions and
conventions held on the capital.
Over the past three decades, Dubai has
continued to upgrade its exhibition and
conference facilities to be at the top-most of
the global standards. The Dubai International
Conference and Exhibition Center has evolved
to be one of the largest and most advanced
conference and exhibition facility in the MENA
region providing a total area of 93,900 square
meters. Some other notable conference and
exhibition facilities in Dubai include Dubai
Airport Expo, Madinat Jumeirah Conference
Centre, DIFC Conference Center and
Knowledge Village Conference Centre among
a wide choice of venues in Dubai’s well-known
luxurious hotels and spacious buildings.
Entry Points
Capital Centre Development in Abu Dhabi
The Capital Centre Development surrounds
the Abu Dhabi National Exhibition Centre
(ADNEC). It is considered to be a fully integrated
project that will house a business and a
residential micro city of 23 towers, including 7
hotels, a shopping mall and restaurants. The
project is government backed, while the project
development and management is undertaken
by ADNEC. Consultants, concept developments,
interior design experts and specialized firms
in the planning and development of exhibition
and conference facilities can find interesting
opportunities to participate in this strategic
project.
Placing Fujairah in the International
Incentives Tourism Map
The emirate of Fujairah is on the path of
becoming a significant hub in the international
logistics among other emerging industries.
The government is determined to increase
the significance of the emirate in the business
tourism arena through hosting international
trade fairs and notable industry events. Currently,
Fujairah has one exhibition facility with three
halls, however, the emirates is in need for new
concepts and ideas of exhibition and conference
facilities that can host larger events and position
the emirate higher in this growing branch of
tourism.
The other emirates of the UAE have also
joined the caravan, developing their own
state-of-the-art exhibition and conference
facilities to aid the realization of their
economic vision. The Expo Centre Sharjah and
the Ras Al Khaimah Exhibition Centre are some
examples of some of these well-established
facilities. Projects are underway in the other
emirates to upgrade and develop new venues
that would enable them to increase their share
in the incentives tourism arena.
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Chapter 4
Why UAE ?
Manufacturing
“
With the ideal climate for export and one of
the most flexible employement regimes, the UAE is at
the verge of promising industrialized future.
“
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Chapter 4
water and electricity is handled by the Abu
Dhabi Water and Electricity Authority. Three
more phases are either under construction or
at the planning stage.
E
ver since the coastal line of the UAE
was inhibited by pearl divers and tribal
fighters, the roots of basic manufacturing
started to flourish with traditional weaponry
and diving dhows. With the establishment of
the modern state, the UAE’s manufacturing
sector grew to become the 2nd strongest
economic growth driver among non-oil
sectors. In terms of its GDP contribution, it has
made 10.11% share in 2009 and 9.7 % in 2010.
Motivated by the nation’s desire to diversify
the economy and the sharp increase of the
population, manufacturing at various levels
of industries has been at the core of heavy
government investment spanning the seven
federated emirates. Most emirates have also
gone a step further by launching innovative
policy initiatives that supported the growth
of free zones and dedicated industrial cities
to cope up both with the demand and the
vision of being the world’s most dynamic
manufacturing hub. By the third quarter
of 2008, an official report placed the total
cumulative industrial capital value of all nonoil and gas industrial projects in the UAE to be
exceeding US$20 billion, accounting for about
290,000 jobs. This new wave of manufacturers
are catering for the ‘new economy’ providing
machinery and tools for industries related
to construction, shipbuilding, infrastructure,
power generation and even retail and
consumer related industries.
Abu Dhabi has been successful with its
Industrial City of Abu Dhabi operations. The first
Industrial City of Abu Dhabi (ICAD 1) includes
economic zones for base metals, building and
construction products, electronics, plastics
manufacturing and automotive industries
and has already attracted US$2.99 billion in
investment. ICAD 2 has already attracted nearly
US$1.63 billion with new projects including
air conditioning water chillers, architectural
hardware and aluminum windows and
doors manufacturing. The ICAD zones have
been built in a public-private partnership
model that includes the cost of roads and
sewerage and irrigation systems. Separately,
Why UAE ?
A USUS$2.17bn industrial zone in the Abu
Dhabi desert for construction and building
materials firms is one of a host of projects the
Government is planning to industrialise the
emirate. The 34-square-kilometre Al Fayah
Industrial Zone, being constructed by the
Higher Corporation for Specialised Economic
Zones (ZonesCorp), reflects the Government’s
latest efforts to create industrial clusters to
boost economic growth and diversify away
from oil revenues. The location, 75km east of
the capital, is also a sign of efforts to relocate
industries away from residential areas and
relieve congestion.
In Dubai, pulling its weight alongside the
burgeoning number of free zones that support
manufacturing in Dubai is the Dubai Industrial
City. DIC is targeting US$2 billion in investment
over the next five years. So far DIC has invested
US$177 million and will build more than 500
factories for light and medium industries by
2015. Still, this doesn’t replace the six hyper
active industrial zones that operate inside the
city under regular licensing procedures.
Factories per Emirates in the UAE
326
Abu Dhabi
1718
Dubai
1210
Sharjah
616
Ajman
143
Ras Al Khaimah
140
Um Al Quwain
66
Fujairah
Energy Sector - Major
Manufacturing
Major Indicators
Indicators
Contribution to GDP (2010)
USD 28,935 million (14.18% of non-oil GDP)
Federal and Local Regulators
Ministry of Economy (Federal)
Local Dept of Economic Development (Each Emirate)
Respective Free Zone Authority (Each Free Zone)
Total Number of Factories (2010)
4960
Volume of Investment (2010)
USD 27.553 Billion
Most significant in the last year was the
rapid progress of the manufacturing sector
in the emirate of Sharjah. Sharjah’s Economic
Development Department reported that its
industrial GDP amounts to 48 percent of the
UAE’s total industrial GDP.
In addition, the whole country is moving
forward to ease up on regulatory affairs, and
primarily raising the foreign ownership stake
in industrial projects registered outside the
free zones.
much lower than in the services sector, and
equally productivity is much higher – reasons
for which labor import policy is likely to
remain liberal for the manufacturing sector,
allowing the sector to grow further.
Rental and operational costs are also still
competitive compared to Europe and the
US; which adds another advantage; when
combined to location and entry markets.
Employment is one of the key advantages
of the UAE over other spots. In fact, the UAE
is still better positioned in terms of cost of
employment compared to Western countries.
Though U.A.E. has high income and wage
levels as in the West, the U.A.E. economy can
still rely upon a reservoir of low cost labor from
Asia (unlike Western countries which follow a
strict policy against importing labor).
Of particular interest here is the
empowerment of new ideas and innovative
industries.
Both
local
and
federal
governments have launched a series of
parallel initiatives that recognize industry
distinction and business excellence. The Dubai
Quality Group, for example, is a voluntary
corporate body that helps companies embed
quality in their overall production process
and then consolidate it in terms of revenues
and ROI.
This
actually
enables
domestic
manufacturing to grow further, unlike
the West where manufacturing is now
stagnating in face of competition from
China and other low labor cost countries.
Labor demand by U.A.E. manufacturing is
Intellectual Property is a serious issue here
and the government has a zero-tolerance
policy regarding any violation of patent piracy
and fake branding. the same regulations are
applied regardless of whether the concerned
company is a free zone company or not.
Development of the Manufacturing Sector (2004-2010)
Year
No. of Factories
Volume of Investment (USD)
No. of Workers
2004
3036
17,149
231275
2005
3294
18,577
245707
2006
3567
19,176
264719
2007
3852
19,778
288180
2008
4219
20,979
317841
2009
4644
22,100
347269
2010
4960
27,553
382296
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Chapter 4
Petrochemical Industries
The UAE is slowly graduating into the next
phase of petrochemical product development
– branching into specialized products instead
of ‘just the commodities.’ And with this
transformation, there seems a growing
emphasis on generating local consumption
of these specialized plastics too. The driving
logic behind the momentum is to pump out
crude form beneath the surface, add value by
converting it into plastics and then export it a
few days later.
Despite emerging as major plastic raw
material producer, for a host of reasons, the
contribution of the downstream plastic industry
to the nation’s GDP is yet to prevail. However,
the government wants this to move faster;
which is why there are some major initiatives
to attract investment in the downstream
plastic industry. Abu Dhabi embarked upon
the Polymer Park concept; while other
emirates; especially Dubai, are alsoopening
up for downstream petrochemicals for both
production and marketing operations.
While the Abu Dhabi Polymers Park is
focusing on providing value-added services
specifically to the plastics converters the
overall offering; country wide, is opening
the door for five major industries to leverage
the
country’s
downstream
resources;
including automotive, consumer appliances,
plastic packaging, construction and metals
processing.
From an investor’s point of view, feedstock
and logistics are the top two cost components
of petrochemicals products; the UAE enjoys
an advantage over Asia and Europe on both
accounts. First, feedstock cost is lower in this
part of the world, owing to its rich oil and gas
reserves. The UAE procures ethane at US$1.5
per million BTU (mmbtu), compared with a
minimum US$3.20/mmbtu in Europe and the
US. As ethane is expensive and scarce, Asian
and European firms use naphtha as a major
feedstock. Secondly, the GCC’s closeness to
demand clusters – specifically India and China
– offers a significant logistic cost advantage
(second largest cost component after
feedstock).
Logistics wise; the UAE is in fact the
only GCC country that doesn’t face the
bottleneck problem known to hinder
petrochemical exports the region. The country
has early realized that supply chain in the
petrochemicals industry is a very important
factor for success, as maintaining a feedstock
advantage requires a reliable and cheap way
Why UAE ?
to transport the product to end users too. Abu
Dhabi National Oil Company (ADNOC); the
main and largest oil operations company in
the country; has its own fleet of carriers and
container ships that cater for the needs of its
investment partners. Ports of Abu Dhabi and
Dubai; although the busiest in the region; are
far from any bottlenecks. Additional setup
is also being built in Fujairah; at the Indian
Ocean; to provide an alternative route to the
global markets.
Of particular interest here is the new
government sponsored initiative to develop,
as a first phase, one of the world’s largest
grassroot integrated Chemical Complexes in
the newly planned Chemicals Industrial City
at Khalifa Industrial Zone at Taweelah (Abu
Dhabi). The project will be one of a number
of complexes globally to combine aromatics,
olefins and fertilizer production.
The
Chemicals
Industrial
City
(or
Chemaweyaat) is investor-oriented with a
clear goal to help international business opt
in to develop the emirate’s industrial and
downstream industries, create a sustainable
petrochemical and chemical hub and deliver
joint benefits for both the industrial zone and
port.
While the direct objective is to speed up
Abu Dhabi’s plans to develop a plastics-based
industry for domestic and export purposes,
the indirect objective to utilize crude-derived
naphtha as feedstock rather than ethane. This
will free up ethane supplies which are in high
demand from the power sector and utilize Abu
Dhabi’s more abundant supply of naphtha,
thus guaranteeing future feedstock supply.
The underlying success factor behind all
of these initiatives is in fact the outcome
of Borouge; which since its inception back
in 1998 as the Abu Dhabi sole operator in
petrochemicals, has been actively expanding
its portfolio in order to attract further
investments to fully unleash the petrochemical
potential as outlined in its 3 project phases so
far.
Even with some global slow down, Borouge
has solid reasons for investment optimism. The
Abu Dhabi-based petrochemicals converter
and plastics solutions provider reported a
strong second quarter of 2011, overcoming
the slowdown in market growth that was set
to continue through second half. Its net profit
reached US$229.3 million, bringing its total for
the first half to US$465.5 million, up 133.6%
year-on-year.
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Chapter 4
The estimated cost of the Borouge III
expansion, currently under construction,
is US$4.5 billion. The project is seen fully
operational by the middle of 2014 with the
project completion due by end 2013. Upon
completion of phase III, the production
capacity at Borouge would increase to 4.5
million metric tons a year.
Currently, the combined capacity of
Borouge I and Borouge II, located in Ruwais, is
two million tons a year. There are two crackers,
one olefins conversion unit, five polyolefin
plants — which include two polypropylene
and three polyethylene units. Borouge II,
which started operations last in 2010, was
built at a cost of about US$5 billion. With the
introduction of 2.5 million tons by mid 2014,
the annual capacity of the plant will be further
expanded to 4.5 tons.
companies have been opting to JAIA since
mid 1980s as a regional manufacturing base
for polymer-based chemicals and hydrocarbon
derivatives. Thanks to its positions, just off
Jebel Ali Port and next to Al Maktoum Cargo
Airport; this industrial area is well-positioned
for manufactures looking to reduce imports/
exports overheads. The port itself is equipped
with the Middle East largest liquid chemicals
storage facilities; which serve the needs of the
many chemical plants operating in the Jebel Ali
Free Zone and Industrial Area; such as Jotun
Polymer’s 10,000 b/d unsaturated polyester
resin plant or Middle East Packaging plant
that produces 600 tons/month of polystyrene
sheets and 300 t/m of polypropylene sheets.
Moreover, and to provide an additional
push to the nation’s supply of petrochemicals;
Borouge revealed it was investing in an
innovation centre in Abu Dhabi scheduled
to be ready by the end of 2011. The step
will localize the firm’s own research and
development
(R&D)
capabilities
after
decades of relying on its European partner.
For investors, Borouge can play a dual
role; firstly by providing raw petrochemical
polymers that can be used in further processing
and manufacturing; and secondly by providing
the plastics solutions themselves that can be
utilized in the development of other plasticsbased solutions and products. According to
the company; its unique Borstar process and
catalyst technology enables a differentiated
range of polyethylene and polypropylene
innovative plastics solutions for infrastructure
applications (including pipe systems, and
power and communication cables), automotive
components and advanced packaging.
Moving north in the country, Dubai
sounds like another hub for petrochemical
downstream production. Although it’s not
as big as Abu Dhabi’s; the petrochemical
industry in Dubai has been so lucrative that a
manufacturing giant such as BASF of Germany
has built its construction chemicals plant in
Jebel Ali Industrial Area (JAIA) to cater for its
market across the Middle East. Petrochemical
Why UAE ?
Meanwhile; the Dubai Multi Commodities
Centre (DMCC) provides a unique marketing
platform for petrochemical and plastics
producers to operate freely and run their
business development activities. In mid 2011,
DMCC; which is actually a free zone, has
successfully attracted three international
petrochemical makers to start their Middle
East operations from the center; a feature that
can be easily utilized by UAE based companies
in conjunction with a manufacturing presence
in the nearby Jebel Ali zone.
Entry points
The Abu Dhabi Polymer Park
In an attempt to provide investors with a
dedicated industrial zone for polymer and plastic
conversion, the Abu Dhabi Basic Industries
Corporation established in 2008 a US$4 billion
Abu Dhabi Polymer Park; which is located at
the Industrial City of Abu Dhabi (ICAD). The
main purpose of the park, which hosts up to 60
plastic product manufacturers, is to provide for
downstream production and integrate with the
mid- and up-stream players in the UAE and the
region.
The project comes as part of The government
of Abu Dhabi’s initiative to support and develop
strategic industries such as petrochemicals
through providing the basic needs capitalizing on
the abundance of energy sources, the advanced
infrastructure, and the strategic location.
The 4.5 square kilometer park, which had 30%
reservation upon launch in 2009, was expecting
over US$4 billion of investments in its first phase
from both local and foreign investors. The park
is expected to reach full capacity by end of 2012.
Facilities include warehousing, laboratories as
well as training and vocational institutes.
In average, the PolymerPark will consume an
annual average of one million tons of polymer
to be supplied by Abu Dhabi National Oil
Company’s Borouge.
Chemical Fertilizers
The chemical fertilizer industry of the UAE
plays a significant role in the country’s economy
with daily production of 1,500 metric tones of
urea and 1,050 metric tones of ammonia. The
state-owned Ruwais Fertilizer Industries (FERTIL)
is the largest of its kind in the GCC region. It
actually provides a clear idea of international
investment in the local fertilizer market, as it
was formed in 1998 as a 36:64 joint venture
between SQM of Chile and Abu Dhabi National
Oil Company (ADNOC).
Although this complex produces an annual
capacity of 40,000 tones of granular compound
and water soluble fertilizer, along with 200,000
tones of suspension and liquid fertilizers and has
capacity of 200,000 tones, the market is still
in demand of further production, especially for
exporting business. Many investors have opted
to use Jebel Ali Industrial Zone as their base
for chemical fertilizer manufacturing for this
purpose. Jebel Ali is well-know for its logistics
and shipping center; which makes it much easier
to distribute to a wide array of countries with
ease.
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Chapter 4
High Tech and
Heavy Industries
The UAE’s drive to focus on high tech
industries was primarily motivated by the
country plan to switch to high income industrial
activities at the long run. Abu Dhabi was in
fact the first emirate to adopt this policy when
Mubadala was formulated few years back. The
company currently owns and operates several
high tech industrial initiatives including the
manufacturing of airplanes and advanced
processing chips among other disciplines.
While this particular segment is yet to
contribute to the local GDP, it is foreseen as
one of the future power sources of income
that comply with Abu Dhabi’s long term
strategic development plan. Abu Dhabi
has set a goal to reduce its oil-based GDP
from 65% to 36% of the overall GDP.
A good example of such a thriving
investment approach is Mubadala Aerospace 2
; which announced earlier in 2011 it would
capitalize on its partnership with Ferrari and
Tata to produce the first UAE-made medium
size business jet by 2018. In fact, this is going
to be one of four streamlines in the aerospace
industry Abu Dhabi has defined as potential
revenue generators. The other three include
commercial and military airplane maintenance,
manufacturing of airplane parts and high level
training.
Why UAE ?
Senior officials and market experts both
agree Abu Dhabi has such a good potential
to excel in the aerospace segment for three
realistic reasons. Firstly, such a segment
requires huge financial assets which are not
a problem for the oil-rich emirate. Secondly,
this type of industry requires a lot of energy,
which can be provided by Abu Dhabi at
competitive rates. The third factor is related
to the human capital, as high tech industries
usually relies heavily on expert systems and
robotics rather than a huge workforce. With
the active educational system applied in the
emirate, Abu Dhabi will be able to provide this
industry with the required skills based on its
highly trained national workforce.
Another high income segment is the
manufacturing of advanced processing chips.
Abu Dhabi has acquired the flagship processor
company Advanced Micro Devices, best known
as AMD. The company is now partnering
with The Advanced Technology Investment
Company (Atic) ; the technology unit of the
Abu Dhabi government’s investment fund
Mubadala, and Global Foundries to build a
US$6 billion semiconductor factory in Abu
Dhabi. Although it is just the beginning, the
step is expected to generate further financial
sustainability for the shareholders as well as
generating more investment opportunities for
the various stakeholders.
Meanwhile, Dubai Silicon Oasis provides an
interesting opportunity to setup and establish
high tech industries and to use the dynamic
emirate as a regional launch pad. Over the first
half of 2011, DSO has achieved over USD 88
million in revenues; a 4% increase compared
to the same period in 2010.
Figures also show the high-tech free zone
has witnessed a 32% increase in company
registrations, taking the total number of
entities operating at the technology park to
482 . DSO’s client portfolio currently comprises
65% of technology companies, ranging from
IT and electronics to telecommunications,
semiconductor
and
energy
companies.
Engineering and the retail sector represent 6%
each of the total number of companies, while
25% encompasses diverse businesses.
European and American companies make
up 47% of the total number of companies
operating at DSO. Asian and MENA companies
make up 19% and 34% respectively. To further
empower its partners with well-prepared
employees, DSO has recently opened Rochester
Institute of Technology (RIT), which is now
located inside the free zone enabling it to
accommodate the fast pace of growth in the
number of students, with new applications
expected to register an increase of over 50%.
While high tech industries are an emerging
segment in the UAE, heavy industries are not
and still provide compelling opportunities
for many. The growing demand for marines
carriers have encouraged international
partnerships to build dry docks for the
built-up of large vessels that can be used for
various cargo and transportation purposes.
Boat and yacht industry is another promising
segment comprising both full manufacturing
and partial assembly. There are currently few
companies involved in this segment but the
market is growing, especially as the dollarmillionaire count in the UAE has now jumped
over 50,000. The segment is also a promising
export business. At least one of the UAE yacht
makers has an active export base in the USA.
In addition, Jebel Ali Free zone has been
home to several investments in the assembly
and configuration of transportation buses,
ambulances as well as firefighter vehicles. The
ambulance and firefighter vehicle market is
actually dominated by one company but the
market is far from closed, for either local sales
or regional exports.
A newly emerging segment is the assembly
of heavy vehicles and machines for various
uses. A recent study by Dubai Industrial City
estimates the market for heavy machinery in
the GCC countries to exceed 1 million new
machines every year. In particular, some
investors have shown interest in assembly of
vehicles used for mining, mountainous road
works and construction mega projects
Entry points
The Logistics Zone of Al Ain Airport
A lucrative opportunity is emerging at Al Ain
Airport, in central Abu Dhabi, for aerospace
and logistics companies to establish their own
logistics, maintenance and spare parts services
and manufacturing plants.
Abu Dhabi Airport Company, which owns
and operates several airports in the emriate, has
said it has opened the door for foreign investors
and big international companies in the new Al
Ain Airport.
Foreign companies and investors will be, for
the first time, allowed to build projects in the
airport and the surrounding development area.
The airport is scheduled to re-open in its new
form before the end of 2011, and is expected
to draw big demand by foreign investors and
companies working in aviation, air cargo and
logistics sectors.
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Chapter 4
Light and Mechanical
Industries
The rise of light and mechanical industries
in the UAE was mainly affected by the diverse
economic scene along with the large business
infrastructure in the country. Companies
that manufacture business supplies, building
materials, hardware accessories, etc have found
refuge in the nation’s wealth of opportunities
derived from the unprecedented infrastructure
boom over the past two decades.
In addition, the country’s open and
dynamic export-friendly economy gave these
companies the added value of reaching out to
the neighboring nations and even to the rest
of the world. For example, Dubai is now home
to the world largest producer BoPP and CPP
films for packaging purposes. The same can
be said about many factories based in the UAE
serving both local and global demands.
With the fact that most surrounding
economies are oil-centric, that are in the same
time having a boom in their infrastructure,
UAE-based light and mechanical industries
got an additional golden chance to grow and
profit.
The glass industry is one of the ever
appealing segments in this regard and one
Why UAE ?
that has hugely benefited from the
infrastructure and construction boom. Glass
is an essential factor in the GCC construction
scene due to its role in heat reflection. Solar
reflective glass is highly demanded as an
external covering of towers and buildings for
the protection it provides from conducted
heat-gain
(air-to-air)
when
ambient
temperatures are high during the summer.
The local demand for glass sheets is growing
at a fast pace, although it slowed down during
over 2008/2009, but now it is bouncing back
with the resumption of construction projects
and the launch of newer ones.
There are four key factories in UAE,
manufacturing glass sheet products for
buildings. Installed capacity is roughly 850
thousand square meters.
The products
include high performance solar control and
thermal insulation glass, tempered glass, heat
strengthened glass, single and double glass,
laminated and architectural glass. Roughly
30% of the output is exported to countries
such as GCC, other Arab and African countries.
Virtually, all countries in the region depend on
imports to meet their demand, and it is easier
for them to import from U.A.E. than from far
away sources like USA, Europe, Russia and
China (the key global exporters).
A similar success story has prevailed in the
manufacturing of steel bars and rods which
exceeded US$2 billion in 2006, and is in position
to export to regional markets. The segment
has also developed a niche market of its own;
which the recycling of steel rods and bars.
The
advantages
that
drove
such
success were taken in consideration at the
international level as well. In 2006, a group
of Korean investors teamed up to establish a
Dubai based auto-technology manufacturing
plants for the production of light items that
do not require heavy employment. One of
the factors behind their decision was the
facilities provided by Dubai Airport Free Zone
and the cost effective equation they found in
terms of energy, transportation and premises.
Dubai Airport Free Zone is actually an
example of the local initiatives that cater
for this level of investments in order to
help them maintain a steady return on
investments and reduce the operational
overheads. By combining flexible regulatory
affairs with centric location and lucrative
markets, these initiatives became ideal for
many manufacturers who want to penetrate
the regional market and beyond. However,
businesses outside the free zones are in good
shape too. Both federal and local authorities
continue to ease up on many issues to facilitate
growth.
Of particular interest here is the light steel
industry; other than bars and rods, which
actually operates from outside the free zones,
and have reported huge success. The segment
has an active export portfolio that even
includes the United States as one of the top
ten importers in this regard.
Entry points
Power and Telecom Cables
The current total demand for power cables
is more than US$272 million1 . Approximately
2.5% of the value of a building comprises the
value of cables used in these buildings. More
than 60% of the demand for power cables is for
installation in new buildings. Demand for power
cables remains high despite recent technological
changes which have seen the emergence of
optical fiber cables. Domestic manufacture,
three factories in Dubai and Abu Dhabi, is for
power cables only.
Local production of power cables also caters
for regional needs as the U.A.E.’s exports of all
kinds of cables has reached US$3 million per
annum. Cables are being exported to Saudi
Arabia, Yemen, Jordan, Iran, India, East Africa
and the Levant Arab countries. Power cables
with a 10mm cross section for 300-1000 Volts
form the greater part of exports. A particular
successful effort has been to supply cables to the
Delhi Metro project in India.
An important opportunity here is to cater
for the fiber optics need of cables. Currently,
the national need of optical fiber cables is
entirely imported. Optical fiber cables are
overwhelmingly used in telecommunications.
Since it’s becoming the norm in all mega projects
across the region, such an investment sounds
lucratively feasible.
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Chapter 4
Consumer Industries
The consumer industry sector spans a wide
range of products that cater for day to day
needs for both domestic and business needs.
While a large portion of the country’s annual
consumption is imported,
the consumer
industries sector has grown up at a fast speed
for two main reasons; the sharp increase in
population over the past two decades and the
consolidation of the UAE as a regional hub for
export-oriented manufacturing complimented
with re-export-oriented partial manufacturing.
In fact, one of the main drivers in the success
of UAE as a hub for consumer manufacturing
is the centric position it plays as a regional
logistics and exports hubs, which enables
manufacturers to reach their target markets
at ease. In addition, the country has become a
world destination for shopping tourism; with
an estimate of 10 million passengers arriving
in the emirate of Dubai alone every year. The
country’s shopping malls and duty free shops
are some of the busiest destination year round.
With such a lucrative market, it’s no wonder
that many international manufacturers have
established production and fabrication units
in the country to help dominate the regional
market.
A recent study by Jabal Ali Free Zone (JAFZA)
reported that JAFZA outbound consumer
and cosmetics trade has grown over the past
decade to exceed US$3.6 billion by the end of
2010. Over 444 companies are operating from
the zone in this segment. Market leaders such
as Uniliver, Procter&Gamble and L’Orial as well
as some local brands do actually have their
regional production plants in JAFZA. Moreover,
the wide spread of industrial zones across
the country allowed for further presence of
various types of consumer industries including
contract manufacturing facilities that serve
local and international labels alike.
As a case study, the cosmetics industry
provides some interesting indicators of how
appealing this country can be for consumer
manufacturers. In terms of the domestic
Why UAE ?
market, the wide demographic spread within
the UAE means that the demand for cosmetics
is widespread and across the price spectrum.
Along with the strong demand for high-end
luxury products, there is also a robust market
for the everyday, reasonably-priced product
lines, making the UAE an attractive market
for cosmetic manufacturers and suppliers
of all kinds. A recent study by Euromonitor
International shows that the consumption of
facial and eye make-up, lip care and nail care
products will continue to grow at a healthy
pace over the next few years in the United
Arab Emirates (UAE) to reach US$141 by 2014.
Exports wise, although neighboring
countries have developed some local cosmetics
labels, the main selling factors is actually
international labels which they all depend on
the UAE market to cater for, thus providing an
additional momentum for the industry here.
Jewelry and gold design, perfume
manufacturing and ethnic hair products are
just examples of the new niche markets the
consumer industry is embracing in the UAE.
However, the higher end of the industry
is also showing positive signs of attraction.
For example, the local footwear industry is
worth around USD354 million, namely the
demand for its products in 2010 based on net
import figures. Since there is a large demand
for footwear products unique to the region,
namely Gulf Arab sandals for men and women,
a significant footwear manufacturing industry
has developed, based on a niche demand
specific to regional styles.
According to the UAE Industrial Bank, the
demand for local style sandals is too large to be
entirely manufactured in distanced factories,
and this has opened room for domestic
manufacture with advantages of reduced lead
times, lower inventory, customized orders –
even though the raw material and labor is
imported.
There
are
7
reported
footwear
manufacturers in U.A.E., two are located in
Dubai, three in Ajman and one in Sharjah and
Al Ain each. The first factory was set up in 1988,
and the others in the nineties. The estimated
capacity is above 250,000 pairs per annum.
Entry points
Paper Tissues
The paper tissue industry belongs to the
second wave of industrialization in U.A.E. which
roughly dates back to the late eighties and
nineties, and was more focused on consumer
products. While a couple of paper converting
factories had established by mid 1980s, the
larger part of capacity was added in the nineties
and in the 2000’s.
According to the Emirates Industrial Bank,
U.A.E. is now a substantial exporter of paper
tissue products. However, exports have been
growing steadily and are now close 28 thousand
tons a year. This is roughly half of the total
production which is quite impressive. Exports
destinations are firstly in the neighboring region;
i.e. GCC countries, Iran, Indian subcontinent and
Eastern Africa, and also far away in industrial
countries such as Australia, UK and Singapore.
Tissue production is in jumbo rolls from
mostly virgin pulp for final products such as
facial, toilet, kitchen towels, napkins, C-fold
and carrier tissues. The country has now over
21 paper tissues factories, and the demand is
growing.
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Food Processing
Industries
Food processing and manufacturing
constitute 46% of the UAE’s non-oil industrial
sector as per government records; which
highlights the potential hidden as a major
growth opportunity for processed food
manufacturers. The sector posted annual
growth of over 11% since 2005, when
foodservice providers spent about $1.43bn on
foods and ingredients bought at wholesale
outlets.
By definition, the Food Industries segment
include meat processing, dairy products,
vegetable oils, sugar refineries, bakeries,
deserts, bottled water, etc. Until the end
of 2005, total investment in this segment
reached over US$8.4 billion (56% of total
manufacturing investment). Although the
surge in the investment (from US$0.82 billion
in 2001) was mainly caused by new investments
in bottled water, the hidden indicator here is
the huge increase in the population; which
tripled the size of main market for all food
products in the country.
At the socio economic level, there are
various factors that make the UAE’s food
market a unique investment opportunity
for many reasons. With its immigrant guestworker based economy an estimated 75% of
the UAE’s population is made up of single men,
a fact that has shaped the food industry in the
region and led to increased demand for fast,
easy-to-consume, low priced meals.
The sharp increase in the population
has is an added opportunity by itself. The
population has increased from 4.3 million in
2007 to over 11 million by the end of 2010,
which was reflected in an increased demand
on food supplies. These sociological changes
are not only expanding the area’s food market,
they are also changing consumer habits, and
consequently opining the door for fresh ideas
on day to day basis.
While the country imports 90% of its
US$4 billion food market (for both local
consumption and re-exports), there are two
Why UAE ?
potential areas for foreign investment that
are bound for growth; to increase the local
production catering for the growing demand
in the UAE and to utilize the country’s central
position for regional production. A recent
study by the Arab Forum for Food Industries
reveals that the UAE produces only 36% of its
food consumption; a gap that highlights the
hidden potential in this segment. Agricultural
production, meat and poultry and processed
food are just examples of what this gap is
awaiting for.
Recent figures from the Ministry of Economy
show that Food Industries account for 46%
of the nation’s total non-oil manufacturing
investments with 150 companies operating in
the segment.
The meat market is growing exponentially
due to various social traditions combined with
high individual purchasing power. While the
prime business in this segment is livestock
imports, it actually leaves the door open for
a huge process and packaging business that
caters for the needs of working families and
individual expats. Currently the Jabal Ali
free zone plays an essential regional role for
this segment due to logistical reasons. Major
companies that were based in Saudi Arabia
and Kuwait have moved to Jebel Ali over the
past decade to utilize its strategic position and
easier access to manpower. The well-known
meat packaging company; Americana, is now
based in Jabal Ali.
Furthermore, the establishment of privatesector slaughterhouses inside the country’s
free zones allowed for many companies to
import their own livestock and consequently
start fresh meat processing lines for regional
distribution. The overall meat processing market
across the GCC is estimated at US$18 billion with
a booming growth rate year on year.
An essentially emerging factor is the
franchising and branding of food products.
With roughly three-quarters of the population
foreign born, international food products are
in high demand and represent a major growth
opportunity.
International brand owners are now using
Dubai as a manufacturing base to establish
their regional presence in an attempt to get
a larger slice of the Gulf’s $12bn food sector
and to cater for the local demand of their
franchised products as well.
The demand for internationally branded
food items is also boosted by the UAE’s
booming tourism sector.
Two years back, and on the eve of the
international economic challenges, Nestlé
has opened a 100,000 square-metre factory
in Dubai’s Jebel Ali Free Zone to provide a
regional center for its products.
The rise of private label with its fast growing
market is proving a tough challenge for branded
food manufacturers, says Americana. More and
more local businesses are gaining wider market
shares both locally and regionally. Al Ghurair
Foods, one of the leading investors, has recently
opened a huge oats mill that caters for the oats
markets in the Middle East, Sub-continent (India,
Srilanka, Pakistan, Bangladesh etc) and African
countries. In addition, the rise in the number of
hotels and conventions across the country has
created a bigger demand for catering services;
which is now becoming one of the fast moving
food services segments. The UAE currently
has more than 400 hotels operating across
the seven emirates and at least one major
convention center in each emirate. Dubai hosts
at least two regional exhibitions/conferences
each week, year long. Abu Dhabi and Sharjah
have a relatively similar count.
Entry points
Date Products
The UAE is a regional for innovative
manufacturing of date based products; such
as coffee, chocolate, drinks etc. However, the
market is still virgin and has a growing potential
with many people across the region embracing
date products as a healthier alternative to sugarbased products. In addition, with the large
number of palm trees in the country, the potential
is always strong for palm oil investments. Palm
oil production is currently the fastest growing
vegetable oil business in the world.
Ethnic Food
Ethnic food industries provide an interesting
opportunity to pay attention to. The region
has a majority of expats from various parts of
the world with different ethnic and cultural
backgrounds; which reflects in their dietary
needs. The large expatriate Asian population is
driving demand for Asian products, particularly
Indian and Pakistani foods, while European and
American foods appeal to Western emigrants
and the local populace alike.
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Chapter 4
Why UAE ?
Healthcare and
Pharmaceuticals
“
Becasue human comes first to for the UAE, investment
and healthcare was made a priority by the country’s government.
A productive citizen can only be a healthy citizen.
“
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Chapter 4
infrastructure, including the privatization of
publicly owned healthcare facilities and the
introduction of compulsory private health
insurance.
A
lthough healthcare as an industry is an
emerging economic activity in the UAE,
it has proven over the past decade to be one
of the segments with high growth potential
and lucrative opportunities for long term
investments.
This particular industry was highly
stimulated with the sharp increase in the
population which doubled the country’s
residents in less than ten years combined
with the fact that UAE has become one of
the leading travel destinations globally for
holiday makers and shopping enthusiasts. The
modern tourism infrastructure and the touristfriendly environment have even opened doors
for appealing opportunities in health and
clinical tourism as well.
Until recently, the UAE has been a major
consumer rather than provider of healthcare
services. Now, there are first indications to
reverse this trend. The rising interest in the
healthcare sector is largely due to the UAE
Government’s initiatives to modernize the
healthcare systems. Progress is being made by
focusing on improving and building healthcare
Why UAE ?
Although in terms of GDP contribution,
healthcare expenditure is low, the UAE is
actually among the top 20 highest in the
world in terms of per capita spending. The
overall health expenditure is estimated at USD
5.4 billion in 2009, equal to 2.6% of GDP , per
capita spending is at USD 926. The growth rate
of health expenditure in the UAE is expected
with 6.7% annually. Due to its very dynamic
nature, the UAE healthcare market is expected
to grow from USD 3.2 billion in 2005 to USD
11.9 billion in 2015 .
From a structural point of view, the
healthcare industry includes pharmaceutical
manufacturing,
hospitals
and
clinical
treatment, wellbeing and plastic treatment,
health tourism, medical supplies and medical
education & MICE. While operating in the UAE,
healthcare and pharmaceutical businesses may
need to obtain proper licensing from both
the federal Ministry of Health as well as the
concerned emirate’s Health Authority in Abu
Dhabi and Dubai.
The public healthcare services are run by
different authorities: The Health Authority of
Abu Dhabi (HAAD), the Dubai Health Authority
(DHA), the Ministry of Health (MOH) and the
Armed Forces, and Police Medical Services.
While each entity has its separate autonomous
operation authority and runs independent of
each other, they all share the same national
goal of excellence in healthcare.
opportunities in the sector are in specialized
healthcare delivery and supporting services.
The establishment of health related free
zones has increased the interest of global
healthcare players. This has encouraged such
players to set up regional centers in the UAE,
so as to expand their presence in the MENA
region. The Dubai Health Care City (DHCC) is
one of these free zones and is looked at as
part of the Government efforts to develop
medical facilities that will attract patients to
Dubai from other regions. Another initiative
is DuBiotech which enabled many companies
and universities to establish their own research
facilities in the country which in effect helps
pharmaceutical companies eager to penetrate
the region to further understand various
environmental and local issues associated
with the development of region-specific
medications.
The government of the UAE, at both the
federal and local levels, has shown commitment
to expanding access to medical services and
healthcare facilities including pharmaceuticals.
The country boasts strong and high-quality
healthcare provision, with the government
planning further investment in such resources.
To this end, the UAE is building multiple
healthcare facilities, expecting demand for
healthcare to more than double by 2025.
Furthermore, the UAE has USD 2.9 billion
worth of healthcare related projects currently
underway and an additional 100 hospitals in
the planning stage. Key drivers for growth in
the coming years are growing health insurance
penetration, rising per capita income, and
increased health awareness, coupled with an
increased incidence of lifestyle diseases and a
favorable demographic profile.
In terms of foreign investment, the UAE is
the second largest recipient of foreign direct
investment in the Gulf region. The UAE received
USD 66.2 billion of FDI from 1998 to 2008,
representing 19% of total foreign investment
in the region. According to investment experts,
some of the biggest opportunities are likely to
be found in healthcare projects, which have
already attracted major global companies such
as General Electric and Siemens, both of which
have large infrastructure businesses as well
as being major suppliers of healthcare IT and
diagnostic imaging technologies. Initiatives
such as the creation of free zones, including the
two free zones mentioned earlier, are expected
to increase FDI in general and investment in
healthcare research in particular.
In addition, the country has become an
attractive market for foreign investments in
the medical technology sector given that it is
only at the “grass roots stage” of its potential
capacity, and many companies are willing to
become early adopters of new technology.
There are plentiful business opportunities for
international medical equipment investors.
One of the more lucrative investment
More opportunities will arise in health
insurance, which until now has been a
relatively underdeveloped sector in the region.
In addition to the market for healthcare
products, there will be a growing market for
regulatory consultancy services as the region’s
Governments struggle to adapt international
best practices to local organizational,
legislative and legal frameworks.
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Chapter 4
Pharmaceutical
Manufacturing
The United Arab Emirates may not be the
largest pharmaceutical market in the Middle
East and Africa (MEA), but it possesses several
advantages that make it an attractive prospect
to have the largest pharmaceutical industry
in the region. Over the next 10 years, BMI
forecasts that sales of prescription drugs and
over-the-counter (OTC) medications will grow
from USD 1.59 billion in 2010 to USD 3.27
billion in 2020, representing a compound
annual growth rate (CAGR) of 7.5%.
Drivers of growth include increasing public
and private wealth fuelled by the oil boom, and
a strong healthcare infrastructure that ensures
high-tech treatments are always available. A
friendly regulatory environment and absence
of significant local competitors are other
factors influencing a growing number of small
research firms locating to the country.
The government is keen to attract foreign
investment and diversify the country’s
economy, which is highly reliant on oil. To
this end, the pharmaceutical and healthcare
industries have been identified as important
industries to develop. Among the reasons
behind such a step is the fact that local
production is way behind the level that caters
to local consumption. Presently, domestic
producers only account for around 20 per cent
of the market by volume.
Some experts believe that the sector
should grow at the same speed as the fast
developing biotech and healthcare sectors.A
wealthy population with a preference for
novel therapies ensures there is a high
demand for patented drugs. In addition, the
regional demand is a successful factor where
the country’s strategic position as a logistics
hub can be utilized. Julphar, the UAE’s
largest domestic player, exports over 93% of
its production capacity to the neighboring
countries including the GCC and beyond.
Interestingly, a recent study by Dubai
Chamber of Commerce and Industry found
that pharmaceutical exports outpaced imports
over the last 7 years. Since 2003, imports of
pharmaceutical products have risen by 275
percent from USD 218 million to USD 817
million in 2010 while exports too have risen by
300 percent from USD 27 million to USD 109
million over the same period.
Meanwhile, the UAE continues to lead the
region in terms of investment in its homegrown pharmaceutical sector. According
to a recent report by Gulf Organization
for Industrial Consulting, UAE companies
have invested USD 64 million in eight local
production facilities. Domestic production
is almost exclusively of non-patented drugs,
which have been identified as a key growth
area if the industry is to survive the entry of
foreign generics, even if these are subject to
price controls.
However, the growing local demand versus
limited domestic production is only one of
several marketing and regulatory factors that
made the pharmaceutical industry increasingly
attracted to the UAE. Major international
players such as GlaxoSmithKline, Novartis,
Abbott Laboratories, Pfizer and Johnson &
Johnson have also expanded their operations in
the country, attracted by major developments
such as the USD 400 million DuBiotech and the
US$3 billion Dubai Healthcare City.
Why UAE ?
Both initiatives are part of the authorities’
plan to attract foreign investment. DuBiotech
is aimed at developing the UAE’s biotech
industry, while Dubai Healthcare City (DHCC)
should enhance the country’s healthcare
system and should enhance the UAE’s
reputation as a centre for premium healthcare,
encouraging growth as a medical tourism
destination. Some of the world biggest names
have already started ghost manufacturing of
some of their popular medications in the UAE
to cater for the regional demand and to gain a
faster time to market.
Industry experts say that there is potential
for further growth in the pharmaceutical
products sector in the light of the changing
lifestyle dynamics in the region which is based
on an increasingly Westernized disease profile
with non-communicable diseases such as
obesity. Areas of growth for manufacturers
include targeting the overweight and obese
residents of the UAE.
of the UAE’s pharmaceutical production. The
Dubai Chamber of Commerce and Industry
expects the segment to become “one of the
key sectors in the UAE” when foreign majority
ownership will be granted under a liberalized
ownership law, which is under preparation.
Current rules specify that overseas investors
can own up to 49 percent of most businesses
in the country. Foreign investors can only hold
full control of companies in government-run
free trade zones, such as DuBiotech, which are
predominantly located in Dubai. The new law
was welcomed by local drug producers, who
would benefit through an influx of investment
and technology.
Other diseases associated with a relatively
sedentary lifestyle such as increased heart
disease and diabetes will likely remain the
mainstay of growth for patented drug
manufacturers. New areas for pharmaceutical
product growth could also include tapping the
rising demand for medical tourism connected
to these changes in lifestyle.
Other regional drivers for growth are
access-related. The UAE is proving to be an
efficient re-export regional hub and several
regional markets are proving to be lucrative
for companies that are establishing operations
in Dubai. This is compounded by the fact that
profitability for pharmaceutical products also
remains high because they are, in comparison
to other sectors, relatively light-weight in
distribution and highly profitable at retail
despite their regulated prices.
At the regulatory level, the UAE has been
widely known for its strict and zero-tolerance
policy with intellectual property issues.
Also, provisional data issued by the World
Intellectual Property Organization (WIPO)
has revealed that, international patent filed
by the UAE under WIPO’s Patent Cooperation
Treaty were 29 in 2010, despite the challenging
economic conditions.
Another regulatory factor is believed to be
a major decisive factor in foreign penetration
Entry points
Venture Capital
The Pharmaceutical production sector in
the UAE is in fact in need of greater access to
venture capital (VCs) in order to help it develop
and expand and to encourage start-ups in fields
such as biotechnology and R&D. Large-scale
projects, such as DuBiotech and the Dubai
Healthcare City, will help raise the profile of
the UAE’s drug industry and should help to
secure greater foreign investment. There are
several VCs operating in the country now, but
they mostly focus on soft businesses rather
than manufacturing, leaving the door open for
manufacturing oriented VCs to penetrate.
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Chapter 4
Hospitals and Clinical
Treatment
The demand for hospital beds across the GCC
is expected to rise, with the UAE registering
the highest projected growth in demand for
hospital beds at 160% by 2025 . Motivated
by both the surge in the population and the
development of the country as a medical
tourism hub, the UAE is rapidly moving toward
a higher than even demand for hospital beds
and relative clinical services.
There are now approximately 68 hospitals
in the UAE. Dubai Healthcare City (DHCC)
alone comprises of 9 hospitals and 1,100 beds
and is due to be fully operational in 2017. By
2015, the need for hospital beds will more
than double to about 165,000 and treatment
demand will rise by 240%. This will push up
health care costs fivefold to USD 60 billion.
Well on the path to becoming a regional
medical centre, DHCC added 17 hospitals with
2,325 new beds in 2010, according to Grant
Thornton’s Healthcare Guide. This follows a
fast-track industry expansion which saw 61
hospitals set up in the UAE to add to the 7 that
existed in the 1970s.
In particular, Dubai Health Authority
started a plan to invest around USD 999
million in healthcare projects until the end
of 2012. The planned projects will see DHA’s
bed capacity increase by 650 beds, while the
private sector projects will also increase bed
capacity by an additional 500 beds.
Abu Dhabi is also gearing up. Abu Dhabi
Health Authority says the emirate needs 1,0001,500 new hospital beds in the next 5 years
to meet demand as the emirate’s population
expands. ADHA plans to increase spending
10-15 percent annually and was looking to
boost private sector investment by privatizing
government assets.
Abu Dhabi and Dubai are planning
children’s hospitals, the Danat Al Emarat
Women and Children’s Hospital and Al Jalila
Bint Mohammed Bin Rashid Al Maktoum
Hospital, respectively, each with about 200
beds.
At the federal level, a wide range of public
health facilities are run by the Ministry of
Health, including hospitals, Primary Healthcare
Centers, School Health and Maternity & Child
Health Units. In addition, there are facilities
run by other public sector bodies, including
the police and the armed forces.
In mid-2011, a press release by the Ministry
of Health has revealed that a number of
specialised hospitals will be built across the
UAE over the next two years that will cost
nearly USD 272 million. The largest of the
hospitals will be the 200-bed, Saqr Hospital in
Ras Al Khaimah, which will cost USD 136 million
and is scheduled for completion in 2013. In
addition, a specialized psychiatric hospital for
patients in Dubai and the northern emirates
will also be built. The 200-bed, Amal Hospital,
will cost USD 163 million, and is currently in the
design phase.
A few of these hospitals are specialized in
one field. Mafraq, for example, is known for
being a cardiac center. Corniche Hospital is a
maternity hospital. Tawam Hospital specializes
in radiotherapy and cancer treatment
being the first hospital in the UAE to install
radiotherapy systems.
However, it seems the private sector is yet
to jump to speed in this regard leaving an
immense room for new investments. Industry
resources estimate that there is currently
Why UAE ?
a shortage of 9,000 hospital beds in the
UAE’s private sector, which provides a huge
investment opportunity. The standard in
healthcare is one hospital bed per 250 people,
while in the UAE the number is one per 555,
leaving a large gap in supply.
With Abu Dhabi government declaring
private insurance mandatory, the demand
has gone up, when previously, patients would
travel out of the country for cheaper treatment.
Private clinics across the country have shown
tremendous growth and are participating
well to the primary care of the population
that some international players are showing
interest. The market has proven lucrative even
to a giant such as JP Morgan; which owns
a strategic share in the Dubai-based Gulf
Healthcare International (GHI). Operating at
a regional level for few years now, GHI has
unveiled a USD 27 million program to expand
affordable healthcare facilities in the UAE. The
healthcare provider plans to open six Amber
Clinics in Dubai and Abu Dhabi over the second
half of 2011.
The first Amber clinic was opened in Dubai
in September and it actually gives an idea of
the target audience such an investment will
be dealing with. The new 22,000 square feet
facility will offer a wide range of medical
services to middle to higher income groups of
all nationalities. Staffed with medical experts
across fifteen specialties and primary care
departments, they are as diverse as the local
community with European, Indian, Arabic and
Filipino doctors. The investment company says
it’s looking at over 500,000 patients by early
2012.
Entry points
Diabetes and Cardiovascular Diseases
Future trends have something to say about
the potential in clinical treatment in the UAE.
By 2025, diabetes is expected to affect one
quarter of the population. One third of Emiratis
are overweight. Of those 36% are obese. 17%
of UAE nationals have high blood pressure. In
the UAE, there are 260 known genetic diseases
ranging from blood disorders to cancers.
In addition, treatment for cardiovascular
disease is expected to account for 24% of the
total healthcare expenditure in 2025 compared
to less than 12% of the total expenditure today.
This will be followed by significant spending on
infectious diseases, digestive diseases, maternal
and prenatal conditions, genetic disorders,
cancer and other diseases.
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Chapter 4
Medical Tourism
Demand for medical tourism has escalated
over the years, driven by deteriorating national
healthcare services in many Western countries,
exorbitant medical costs and long waiting
lines. This has contributed to strong demand
for affordable medical treatment performed
by highly trained medical specialists in stateof-the-art facilities.
The UAE has been able to provide medical
services at a lower cost – when compared to
North America and European counterparts in
the private sector – with no waiting times in
modern, fully equipped facilities. These factors
provide significant incentives to patients who
would otherwise face extensive queues for
treatment in public healthcare facilities in their
home countries. In addition, the UAE is hoping
to become an ideal alternative for patients
from neighboring GCC countries who prefer to
stay at a reasonable proximity of their families
in a culturally similar environment.
Easy accessibility for some elective surgical
procedures is another attraction, compared to
between two to three months waiting time in
Canada for a knee surgery. Geographically, the
UAE is an ideal medical destination for those
coming from the US and Canada as coming
here is still affordable compared to the high
cost of medical care in their countries. Some
resources also mention privacy as an important
factor for choosing the UAE as a health tourism
destination. The UAE authorities apply a zerotolerance policy regarding privacy breaching
incidents especially when it concerns celebrities
and dignitaries. Government and private
sector initiatives alike are actually targeting
these two segments though the competition
is not with low-cost Asian markets, but with
the rocketing costs in the Western hemisphere.
Among the significant initiatives to cater
for GCC nationals is the newly announced
Cleveland Clinic Abu Dhabi. As part of Abu
Dhabi’s push to expand its healthcare facilities,
Cleveland Clinic Abu Dhabi was announced as
a joint venture between Mubadala Healthcare
and the Health Authority-Abu Dhabi (HAAD).
The 364-bed hospital on Sowwah Island has a
target market of residents of the Gulf.
Initiatives introduced by Dubai such as the
USD 3 billion Dubai Health Care City have
succeeded in attracting international health
care brands including Mayo Clinic and Great
Ormond Street Hospital as well as leading
pharmaceutical and medical technology
suppliers such as Johnson and Johnson,
Novartis and Novo Nordisk. When fully
operational, the Dubai Health Care City will
continue to attract a large number of patients
from the Middle East and particularly the GCC
who would travel to the West in the past. DHCC
was built to become a state-of-the-art “centre
of excellence” for clinical and wellness services,
medical education and research. The emirate
has also teamed up with Harvard Medical
School to operate at DHCC. Dubai Healthcare
City, which includes 90 medical centers, and
more than 2,000 specialists, received more
than 400,000 patients in 2010, compared to
220,000 in 2009.
In addition, reforms such as the
introduction of an international accreditation
and certification organization, the Joint
Commission International (JCI), is increasing
confidence in the market internationally. The
JCI has now accredited 16 hospitals in the UAE;
the latest of which is Shaikh Khalifa Medical
Centre in Abu Dhabi.
Why UAE ?
The UAE’s Ministry of Health is at the
forefront of developing the necessary
infrastructure to attract medical tourists.
According to the Ministry, the country is ready
to receive medical tourists coming with their
families, whether for plastic surgeries, knee
replacements or treatment of cardiovascular
diseases. For the Ministry officials, the UAE has
managed to reverse the equation when people
would go to London for shopping with their
families and receive a check up or undergo a
small operation. Now Dubai is ready for this
and has so much to offer now, with certified
hospitals from international agencies.
In fact, the UAE is quickly gaining popularity
as a medical tourism destination due to its
low cost, English speaking medical staff, and
virtually no queues for treatments.
In terms of treatment, the country offers
a myriad of first-class medical treatments
including
cochlear
implants,
diabetes
treatments, orthopedics, cardiology, oncology,
obesity surgery, neurology, plastic & cosmetic
surgery, physical therapy, dermatology,
rheumatology,
ophthalmology,
lung
treatments, and urology.
In addition to the healthcare level, the UAE
is relying on its tourism excellence in attracting
patients from different parts of the world.
Being the leading shopping destination in the
Middle East, Africa, Central and Southern Asia,
it is much easier for many people especially
wealthy patients to bring in family members
to enjoy a holiday in Dubai while being treated
at one of the country’s hospitals.
Private sector hospitals are active in this
field as well. Dubai was for years the chosen
destination for treatment of American
government officials located in the GCC and
neighboring regions. Plastic surgeons and
cosmetic clinics in Dubai are known to be a
favorite destination for many people in Europe
and even Russia.
Entry points
Self Venturing
One of the appealing opportunities that
specialty hospitals in Europe and the US should
consider is to establish their own ventures
in the UAE to cater for their share of medical
tourism. Whether it is for driving new business
or to follow up on old patients, such a move
would benefit the concerned hospital of further
international reputation as well as higher
profitability by operating in a wealthier region.
Working with the right insurance company on
plans for medical tourists from US would also
give such hospitals a competitive edge to be the
tourists’ choice while enjoying their holidays in
the UAE.
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Chapter 4
the UAE: Diagnostic equipment, therapy
and rehabilitation equipment, disposables,
monitoring equipment, medical aids and
surgical tools and devices.
Medical Equipment
and Technology
Despite the economic downturn, the UAE
has retained its status as an attractive market
for medical equipment in search of near-term
returns with a high potential. In 2009, the
UAE’s medical devices market size was USD
600 million, the second largest in the GCC after
Saudi Arabia. The medical device expenditure
per capita in the UAE is USD 128.
The UAE imports of medical equipment
account for an estimated 96.6% of the market
in value terms. Due to a strong demand and
the country’s limited domestic production
capability, growth is expected to remain
strong over the next years. UAE’s major
trading partners in this segment include Italy,
France, Germany, US, UK, Sweden, Japan
and China. The high percentage of imports
highlights the necessity of local production of
either complete medical devices, components
or spare parts and maintenance services in
additional to specialized training.
The medical equipment market is projected
to grow at an average 6.4%, reaching USD
819 million in 2014. The accelerating growth
is actually motivated by several factors
that include increasing public and private
wealth fuelled by the oil boom, strong and
strengthening
healthcare
infrastructure,
approvals of more medicines, internationally
recognized medical education institutions and
a friendly regulatory environment.
Public spending has its share in the
development of this segment as well.
Approximately, 5% of the Ministry of Heath
budget is spent on medical machines, tools,
and supplies. The budget share allocated
to the MOH in 2010 is USD 762 million, an
increase of about US$38 million over year
2009 budget.
While the medical equipment market
is growing at a speedy rate in general,
the following sub sectors have shown
promising signs of accelerated growth in
Why UAE ?
However, one of the emerging segments
that deserves paying attention to is the prehospital care equipment such as ventilation
and resuscitation equipment which keep
people alive on the way to hospital, whether
for use in police and ambulance vehicles or at
home. These devices are gaining popularity
among local citizens and expatriates alike as
part of every home’s first aid kit.
For a country with one of the highest
diabetes patients in the world glucose
monitoring devices, insulin pump, insulin pen,
and insulin syringes are becoming a significant
segment of the market.
Another interesting growth segment is
mobile medical devices (also referred to as
mHealth), which allow medical professionals
to manage many patients remotely. These
devices can monitor their conditions in real
time and pass on vital statistical information
between the healthcare provider and the
patient.
Mobile medical devices represent a new
and booming trend in the healthcare industry,
and are set to become a trillion dollar industry
allowing the delivery of better healthcare
while positively impacting the bottom line
across the range of stakeholders in the
healthcare industry.
Currently, 94% of physicians are using
mobile health consulting apparatus while
on the job and 63% of physicians are using
personal devices for mobile health solutions
that aren’t connected to their practice . At
least one mobile phone operator in the UAE
has started a business unit to support the
mHealth market and facilitate its integration
into the country’s healthcare scene.
At the sides of this segment lies the
healthcare information and technology
(IT) sub-segment which is rapidly growing
since the country itself is the region’s sole IT
capital. The market for IT solutions in the UAE
healthcare sector has been driven by several
factors including the worrying rise of several
chronic diseases in the region, most notably
diabetes. While the medical industry is gearing
up to address this disease, particularly type
one and type two diabetes, the aim is to obtain
solutions for the facilities - the technical and
back-end operations - to improve the overall
care for the public.
Both international and local firms operate
in the healthcare IT market although local
companies are more involved in localization
and integration of systems to match both
cultural and regulatory requirements. Of
particular interest here is the rise in hospital
and clinic oriented Customer Relationship
Management (CRM) applications. There is a
growing demand on Arabic-based hospital
and clinic management applications especially
for use with public sector entities.
Hospital Technical Services is an emerging
business line but it is yet to prevail to its full
potential. The transformation taking place is
to move from hospital cleaning services, as it
was in the past, to a more technical role that
helps with various technologies and devices.
Entry points
Local Manufacturing
The local production of medical equipment
in the UAE is limited and accounts for only
7.5% of the market for medical equipment and
supplies. In 2008, only 4% of imports and locally
produced medical supplies were reexported. So
far, most local manufacturers produce medical
consumable items such as syringes for the
government sector. With the expanding economy
and the growth of the population it sounds a
wise move to inspect industrial opportunities in
this segment. The advantages are not limited
to the local market, though, especially with the
country’s strategic position as an exporting hub
for the region.
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Chapter 4
Why UAE ?
Telecommunications
Media and
Information Technology
“
Rooted in its unique fundamentals of unlimited
ambition, flexibility and openness, the United Arab Emirates
succeeded to evolve to be the energetic modern civilization
asperceived today. The same cultural foundations that have built
the blocks of the nation along with the foresighted strategic
planning by visionary leadership have been driving the country’s
economy to a higher level.
“
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Chapter 4
The International Data Corporation (IDC),
the global market intelligence forum
for the information technology and
telecommunication industries, forecasts that
IT spending in the UAE to reach USD 1.8 billion
by 2013.
S
ince the establishment of the economic
foundations of this country, the UAE
Government has always been focusing into
diversifying its sources of income, significantly
increasing the non-oil sector contribution
to the national GDP. Plans of establishing
knowledge-based
industries
across
all
emirates were implemented. The Information,
Communication, and Media Technology
industry sector which makes the higher
portion of the knowledge-based industries has
particularly received a significant importance
from the federal and local governments. Thus,
the incredible growth of it is clearly noticeable.
Government spending is continuing to boost
this growing industry in order to take its place
that suits the UAE in the global economic map.
The UAE’s information technology and
communications sector is one of the most
advanced industries not only in the region
but also in the world. This success was mainly
attributed to the strong commitment by the
national government to develop an efficient
advanced communications network. In 2006,
USD 2.5 billion was invested to develop and
maintain the telecommunications network
in the UAE.
Further investment was also
made in 2007 by the emirate of Abu Dhabi
to develop its two first satellites. The
government support coupled with the strong
demand for telecommunications and satellite
communications by government entities,
different organizations and individuals give
Indicators
Global
Ranking
Mobile Penetration Rate
1
Government Procurement of
Advanced Technology Products
2
Government Capacity to
Promote Information Systems
and Communications Sector
2
Modern Technologies
New Licenses Rate
4
Why UAE ?
According
to
Telecommunications
Regulatory Authority (TRA), the Federal
Communication Regulator in the UAE,
mobile’s subscriptions rate has exceeded
200% upon the end of 2009. The Existing
Regulative and motivating environment that
best reflects the country’s vision of becoming
one of the best competitive communications
markets along with the high demand for
advance telecommunications services were
the main drivers that positioned the country
as a regional telecommunications provider.
Telecoms sector is currently among the
leading sectors attracting the Foreign Direct
Investments.
To best represent the continuing growth of
this sector, TRA conducts studies and surveys
in regular basis. The table below shows the
latest figures in this sector.
The media sector has also accomplished
remarkable achievements, growing from a
small number of broadcasters to a different
variety of television and radio channels,
hundreds of newspapers and magazines and
a growing number of publishing houses. The
media industry in the UAE is the leading
market in the Middle East. Renowned
media broadcasters like CNN international,
Bloomberg and BBC World have chosen
the UAE as a main headquarter to cover the
Sector’s Main Information
Institution
Contact Informations
Communications
Regulator
Telecommunications Regulatory Authority (TRA)
P.O. Box 26662, Abu Dhabi
Tel. +971 2 6269999, Fax. +971 2 6118209
Email. [email protected], Website. www.tra.gov.ae
Media Regulator
National Media Council (NMC)
Tel. +971 2 404 4333, Fax. +971 2 404 4368
Email. [email protected], Website. uaeinteract.ae
Telecom Operators
Emirates Telecommunications Corporation (Etisalat)
Emirates Integrated Telecommunications Company (Du)
Professional Communication Corporation (Nedaa)
Satellite
Communications
Operators
Thuraya Telecommunications Company
Yah Sat
Al Yah Advanced Satellite Co.
Star Satellite Communications Co.
Major Events
and activities
GITEX (www.gitex.com)
MECOM (www.mecomexpo.com)
Arab Media Forum (www.arabmediaforum.ae)
CABSAT (www.cabsat.com)
Media and Marketing Show (www.dubaimediashow.com)
Dubai International Film Festival (www.dubaifilmfest.com)
Abu Dhabi Film Festival (www.abudhabifilmfestival.ae)
Mobile Active Subscribers
11,086,704
Number of Fixed Lines
1,731,659
Internet Subscribers
1,420,701
Middle East and North Africa region. This was a
result of the strong fundamentals of the sector
in the UAE. Business parks designed as media
clusters like Dubai Media City, twofour54 zone
and Creative City have been playing a great
driver of the media sector.
Government spending in the Industries
of Information Technology (IT) and Business
Process Outsourcing (BPO) gave a strong
thrust to this growing sector in the year of
2011 when a total of USD 3.5 billion were
invested in IT services and products. As a result
of these continuing contributions by both the
public and private sector, the UAE ranks the
first among the Arab countries in terms of
ICT utilization. Policies that protect IT services
against piracy played an important role in
promoting innovative and creative contents.
Free zones have also contributed to the success
of the IT and BPO sectors.
Great investment options lay within these
industries, boosted by the government’s
commitment to enlarge knowledge-based
industries contribution to the national GDP.
Realizing the infrastructure and supportivepolicies, existing and new coming companies
understand the feasible reasons of positioning
in the UAE which does not only serve the
domestic market but also serve the whole
MENA region.
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Chapter 4
Telecommunications
During the year of 2009, the UAE has
achieved the highest mobile penetration rate in
the world, with 200% active subscribers. As of
April 2011, there are 11,086,704 million mobile
active subscribers in the country, an increase
of 12.68% comparing to 2009. Accordingly,
the TRA has defined an ‘active subscriber’ as
having placed or received a call or SMS within
a 90 day period. Mobile penetration rate has
been growing modestly from 166% in 2007
to 199% in 2011. The rate is expected to grow
not only due to the high level of tourism and
the continual of population but also because
mobiles today cover a wide range of advanced
services that goes beyond voice and text
services to services like data transfer and TV
streaming. Fixed line subscriptions have also
achieved a 10% increase at the end of 2010
comparing to the end of 2007.
In addition, the number of internet
users at the end of 2010 increased by 160%
from the end of 2005, reaching 1.4 million
subscribers. The UAE has one of the highest
broadband penetration rates in the MENA
region. Offering new technologies for
internet access with competitive tariffs have
been considered by telecom companies. The
telecommunications industry as a whole has
evidenced substantial total growth in recent
years due to the significance growth of the
population and of the number of tourists. The
UAE’s telecommunication is also rated as one
of the highest GDP per capita (USD 43,859)
in the world. The growth of the ICT sector
reached 45.7 billion including revenues and
investments, with estimated contribution to
GDP touching 4.9% at the year of 2009 (up
from 4.4% in 2008).
The telecoms sector in the UAE is regulated
by the Telecommunications Regulatory
Authority (TRA). The TRA has full authority
for issuing and implementing regulations for
telecom services and all licensed operators.
It is also responsible for the management of
the frequency spectrum, for establishing and
implementing standards for type approval
of equipment, and for national numbering
policy. TRA has not announced any intentions
of giving a third license in the UAE in the
near future, allowing the second operator
in the country “Du” to fully establish its
infrastructure and secure its market share.
The sole players of the telecommunications
sector are Emirates Telecommunications
Corporation (Etisalat) and Emirates Integrated
Telecommunications Company (Du). Etisalat
is one of the largest telecommunications
companies not just in the region but also in the
world with a market value of approximately
USD 25 billion and 100 million active
Why UAE ?
subscribers across 18 countries. It still controls
the majority of the market share (80%) in the
UAE. Etisalat is currently owned by the UAE
Ministry of Finance (60%) and 40% is publicly
traded on the Abu Dhabi Exchange (ADX).
Du, in contrast, commenced commercial
operations in 2007, ending Etisalat’s near 30year monopoly on the provision of telecom
services in the UAE. Du has a market share of
30% and 4.5 million active users by March 2011.
It is 39.5 per cent owned by the UAE Federal
Government, 19.75 per cent by Mubadala
Development Company, 19.5 per cent by
Emirates Communications & Technology
Company LLC and the remaining stake by
public shareholders. It is listed on the Dubai
Financial Market (DFM).
International telecom companies can
penetrate the telecom sector in the UAE by
partnering with the main telecom providers,
Etisalat and Du, or through applying
for tenders and obtaining projects. In
collaboration with Tata Communications and
Cisco, Etisalat launched its virtual broadrooms
in Dubai in 2010. The process of transforming
Etisalat’s conventional infrastructure to fiberoptic next generation infrastructure has also
engaged participation of international telecom
companies. During 2004, Techcorp, a Pakistanbased company, won a contract with Etisalat
for construction of GSM towers over two years.
Entry points
Supplying Telecom Providers
Telecom companies in the UAE obtain a great
number of tenders offered by Etisalat and Du.
Upgrading telecom exchange sites, supplying
and installing Ac and Dc cables, installing and
testing plant cable network, and installing and
operating antennas site, towers fabrication
works are a few examples of these tenders.
Supplying the service provider with high and
efficient technology in order to solve the
recurring issues like the short coverage in some
remote and indoor areas.
Fiber-Optic Next-Generation
Infrastructure
Realizing the benefits of fiber-optic technology,
Telecom operators in the UAE are developing
their networks using this efficient technology.
A study conducted by Etisalat showed that the
amount of carbon dioxide produced could be
cut by approximately 85% and that the energy
required by the network could be slashed by up
to 73% when using this technology. The study
also showed that by using fiber-optic networks
data are transported over greater distance.
Advantages are great. Thus, Etisalat established
its new infrastructure using this technology.
However, more stations and networks are to
be built and other telecom operators are also
building their new infrastructure.
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Satellite Communications
Driven by its ambitious aim of positioning
itself as a global distinguished location in terms
of offering advanced communications services
of all kinds, the UAE has been actively building
its satellite communications infrastructure.
Currently, it has five satellites and is planning
to launch another two by 2012, maximizing
its capacity to not only meet the domestic’s
demand but also to serve the whole MENA
region by providing high advanced solutions
in this realm.
The
Telecommunications
Regulatory
Authority (TRA), the communications’ regulator
in the UAE, issued new regulations and policies
in order to create a balanced competitive
environment, thus encouraging more satellite
services providers with innovative technologies
and competitive solutions to emerge in this
young market. In 2009, the TRA issued four
additional licenses authorizing GMPCS and
PAMR services as well as mobile television
and satellite communications. Governmental
and
local
and
international
private
companies have been established to meet the
growing demand for satellite imagery and
communications services. International space
and satellite manufactures have been closely
Why UAE ?
observing the UAE’s initiatives and considering
them as attractive opportunities to form
partnerships, contracts and alliances for the
design and building the satellites as well as the
infrastructure of the launch’s bases.
Driven by its vision, Abu Dhabi has made
strategic initiatives to become a global satellite
communications leader in 2007. Mubadala,
established by Abu Dhabi to facilitate the
diversification of its economy, incorporated its
satellite communications company “Yahsat”.
USD 1.58 billion was invested to develop two
satellites.2 Partnerships with EADS Atrium
and Thales Alenia Space, world-class players,
were made for the design and construction of
these two satellites. Yahsat 1A was launched
on April 2011 by Arianespace and Intelsat
New Dawn telecommunications satellites, the
fifth satellite sent by the UAE into space for
communication purposes. Partnerships with
Arianespace and International Launch Services
(ILS) were also made to launch Yahsat 2A
satellite by the end of this year.
Furthermore, the TRA granted tow satellite
communications services licenses for a period
of ten years for Al Yah Advanced Satellite
Communications Company and Star Satellite
Communications Company in July 2010. Both
companies are subsidiaries of Yahsat. Services
are mainly provided for military entities as
well as for the commercial sector in the Middle
East, Africa, Europe and South West Asia. The
satellites control is operated from Yahsat’s
gateway in Abu Dhabi.
The realization of the great demand for highresolution Ariel images by the government to
efficiently develop its infrastructure and urban
planning as well as by the commercial sector
drove Dubai to take the initiative of launching
the first Earth observation satellite program
in the country “DubaiSat-1”. The launch took
a place in July 2009. Partnership with Satrec
Initiative, a pioneer satellite manufacturing
company in South Korea, was made to design
and develop the satellite. Dubai is also
planning to launch its second imaging satellite
“DubaiSat-2” in 2012.
Thuraya Telecommunications Company, the
first UAE’s satellite communications company,
ramped up commercial operations in 2001.
Through its three geo-mobile satellites into
orbit, the company continues providing a
wide range of voice and data solutions via
satellites. Since its inception, the company
has been singing numerous Service Providers
agreements with more than 40 countries
across the world.
The different satellite communications
services like call transfers, data and video
images, tracking and locating vehicles, tankers
and naval vessels are among the mostdemanded services not only in the UAE
but also in the whole region. Realizing this
fact, SmartSat, an alliance of Jordanian and
Kuwaiti companies, was launched in Dubai as
the MENA’s first company specialized in the
satellite industry in 2009.
Entry points
Supplying the Service Providers
International companies can engage by
initiating strategic relationships with the satellite
communications service providers by supplying
them with the equipment, electronic programs,
control systems, maintenance and repairs. The
demand by local and regional maritime and oil
and gas companies, where telecommunications
services can not function, is growing as the
whole economy of the region is growing.
Providing Satellite Communications
Services in the Remote Regions
The lack of telecommunications infrastructure
in most of the remote areas provides an excellent
opportunity for satellite communications
providers.
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Chapter 4
these zones is Dubai Outsource Zone (DOZ)
which was established in 2004.
Business Process
Outsourcing
Business Process Outsourcing (BPO) services
have been growing in the Middle East and
North Africa region especially in the UAE and
Egypt. According to Frost and Sullivan, a global
consulting firm, the outsourcing industry
is expected to grow at a compound annual
growth rate (CAGR) of approximately eight
percent for the period 2009-2016 with market
revenues touching USD 2.69 billion.
DOZ currently hosts a number of companies
in diverse sectors such as banking and finance,
accounting, IT, payroll processing, engineering,
research and development as well as design.
Current companies operating in DOZ include
Nokia Siemens Networks, Emirates airline,
AXA Insurance, du, Mashreq Bank, Arab Bank,
First Data, Cupola, Larsen & Toubro Infotech
Ltd, Al Futtaim Willis, and the Jumeirah Group.
Due to the competitive compensation cost,
a growth in the quality of its management
schools and an improvement in the literacy
rate, the UAE has successfully become the
second largest market for the outsourcing
industry in the MENA region in 2010. Many
multinational corporations have chosen the
UAE as their main headquarters functions and
services.
Due to the great benefits gained as a
result of outsourcing noncore businesses,
many companies and government entities
are taking that approach. Abu Dhabi Water
and Electricity Authority (ADEWA) is studying
plans to outsource administration. ADEWA
has already signed a USD 81.74 million
contract with Injazat Data Systems, a leading
company in outsourcing services in the region,
awarding it a ten-year Information Technology
(IT) outsourcing contract to manage all
of ADWEA’s IT requirements. Etisalat also
outsourced maintenance work in telecom
to third parties in several projects as a costsavings plan.
The UAE was among the first countries
in the region that felt the importance and
realized the potential growth of this market in
the MENA region. Accordingly, it established a
number of specialized zones that are equipped
with BPO infrastructure and issued a number
of policies and regulations to organize and
monitor the progress of this activity. Among
Understanding the demand of this
industry in the MENA region, international
BPO companies have been considering the
potential growth. In 2009, Sundaram Business
Services, the Business Process Outsourcing arm
of Sundaram Finance Ltd. has formed a joint
venture with ETA Group of Dubai to start a first
BPO outlet in Dubai, targeting the GCC region.
Why UAE ?
Call centers which makes a great part of BPO
services are becoming integral to the UAE
business sector. Contact and customer services
activities of many banking, insurance, telecom
and consumer goods sector are outsourced.
Entry points
Operating the Non Core Businesses for
Government Entities
The principle of outsourcing the non core
operations has become the accepted industry
norm in the UAE. The federal government
and local private entities began to understand
and realize the benefits they can reap when
they outsource their noncore businesses. The
UAE Federal and Local Governments are
focusing on conducting their core business
and at the same time assigning parts of their
non core Information and Communications
Technology (ICT) to a third reliable partner.
Penetrating the MENA Market
Through DOZ
Dubai Outsource Zone (DOZ), one of the first
free zones dedicated to outsourcing companies
the region, has been significantly contributing to
the performance of this industry not only in the
UAE but also in the whole region.
Dubai Outsource Zone is one of the places
where activities such as Business Process
Outsourcing, HR Outsourcing, IT Outsourcing
and back office thrive. The facility offers
an environment that allows companies and
individuals to operate with collective synergy
and freedom.
Companies based in Dubai Outsourcing Zone
enjoy Free Zone benefits including 100% business
ownership and exemption from taxes as well as value
added services such as networking opportunities,
venue management services, industry awareness
programs and government services.
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Chapter 4
Communication Technology (ICT) Fund was
formed in 2011. ICT Fund is the first of its kind
in the Middle East.
Information Technology
IT market, which represented around
1.2% of the UAE’s GDP in 2009, is expected
to grow to reach USD 4.1 billion in 2013 .
This estimation was based on the planned
government’s investment of USD 1.828 billion
in this growing sector by the end of 2013.
The UAE overall spending on IT services and
products is forecasted to reach USD 3.5 billion
by the end of 2011. The UAE currently ranks
24th in the world and first among the Arab
countries in its utilization of ICT to enhance its
competitiveness and development according
to the Global Information and Technology
Report 2010-2011 that was released by the
World Economic Forum.
However, the main driver behind the
success of the information technology
sector in the UAE is the strong belief of the
government on the power of innovation. This
was evident and reflected on the latest figures
released by TRA (mentioned in the overview
of this sector). In order to fuel innovative
research and development projects within the
UAE ICT sector by giving financial support for
firms and individuals, the Information and
Why UAE ?
Software, hardware and IT services are the
pillars of the UAE’s IT sector. The UAE is a key
market for software companies. Applications
from desktop accounting packages to ERP,
CRM and HRM solutions are demanded by the
UAE’s software growing market. IT Software
within the GCC Government’s sector spending
has reached USD 2.6 billion this year. In
addition to the steady growing demand by the
public and private sectors, the UAE is leading
the way in terms of software piracy level in the
whole region. In fact, the UAE has posted the
lowest piracy rate in the region for the past
ten years.
The IT services market in the UAE is also
growing significantly. A new study by market
research and analysis firm International Data
Corp (IDC) shows that IT services market may
touch USD 2.3 billion by 2012. Sector like
government sector along with agriculture,
construction and mining sectors are the main
demand drivers now.
Free zones have been providing exceptional
opportunities for international IT companies.
Dubai provides three highly-sophisticated
zones
equipped
with
advanced
ICT
infrastructure. These are Dubai Internet City
(DIC), Dubai Outsource Zone and E-Hosting
Datafort.
DIC, one of the largest information and
communications technology clusters in
the Middle East and North Africa (MENA)
region, has been providing a strategic and
cost effective platform for ICT companies
targeting emerging markets in a vast region
extending from the Middle East to the Indian
subcontinent, and from Africa to Central
Asia. Today, DIC is the home for more than
1,400 companies ranging from Microsoft, Dell,
Intel and IBM to Canon, General Electric and
Cisco. Other Fortune 500 technology giants
such as Oracle, HP, Samsung, Nokia, RIM
(BlackBerry), Yahoo, Google, IBM, Symantec
and AT&T have also planted roots in the DIC
with new permanent regional headquarters
in Dubai. Dubai Silicon Oasis (DSO) is another
technology park established in 2006 to host
technology-based companies.
The capital, Abu Dhabi, is also developing
its 3 square kilometer technology cluster
near Abu Dhabi International Airport. This
development is an implementation of its 2030
comprehensive vision that plans to transform
the city to an IT globally-recognized hub. The
park is expected to host the first microchip
factory in the Middle East that will be built by
2015. This initiative is carried out by Advance
Technology Investment Company (ATIC), a
regional leader in the semiconductor industry.
Entry points
Enterprise software (EAS)
The expansion of the enterprise software
industry, also known as enterprise application
software, in the UAE is mainly contributed to
the increasing focus of government entities
and organizations to maximize its efficiency.
Healthcare, education, retail and public sectors
are among the growing EAS spenders. The
targets of these tailored applications as there is
no single software works for all types of entities
are very wide and can penetrate any industry.
The UAE is currently the second largest EAS
market in the GCC.
Providing Cloud Services
The UAE’s General Information Authority
(GIA) is leading efforts to provide cloud services
to federal government entities. This new way of
computing, which involves the use of Internetbased services and intelligent clients and devices,
is not new only to the UAE but also to the
global IT market. Cloud services are central to
the Emirate’s e-Government strategy for the
next three years. International Data Corporation
(IDC), a premier global market intelligence
firm, estimates that cloud services could add
more than USD 4.2 billion in net new business
revenues to UAE’s economy between the end of
2009 and the end of 2013.
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Chapter 4
Media
Specialized zones established to solely
serve the media sector along with businessfriendly regulations and a strategic location
in the heart of the GCC, the UAE is definitely
the ideal central place to serve not only the
domestic market but also to provide high
quality media services including advertising
and marketing, publishing, broadcasting
and media consultancy to the whole MENA
region.
The substantial growth in the media sector
since 1999 when there was a counted number
of broadcasters is a result of the country’s
commitment to position itself as a global media
hub. The UAE today is the home of more than
twenty five national television channels, ten
national radio stations, morethan two hundred
satelite TV broadcasters,a large number of
conventional and online newspapers and
magazines. Through fostering innovation
and high quality in its emerging media sector,
the UAE has been attracting global media
companies from all over the world.
As an efficient step toward developing
a globally-competitive media sector, the
National Media Council (NMC) was established
in 2006 to oversee media development in the
country and to support media initiatives. The
council’s mission of providing an integrated
regulatory environment for media sector has
been setting up a clear vision of how the
nation is really committed to build up a worldclass industry.
Why UAE ?
Establishing
an
efficient
technical
broadcasting
foundation
has
always
been a priority of the UAE. In 2006,
Telecommunications Regulatory Authority
acquired rights to 225 digital channels at the
ITU Regional Radio Communication Conference
to allow more channels to be carried across
fewer airways by converting from analogue
broadcasting to digital broadcasting.
By locating in the UAE, the TV and radio
broadcasters can have access to different
regional markets that speak multiple
languages and with various interests and
needs. They can easily source the talents for
this form the local and neighboring countries.
Provided the accommodating regulatory
environment and the supportive climate for
innovation and given the multicultural nature
of the society, the UAE is well in the position
to continue its leadership role as a regional
broadcasting hub. Already, the UAE is now
the host of the largest number of TV and
radio channels that are free to air in the Arab
world; they operate out of the different media
business parks that are scattered around the
country. The country dose not only provide
the infrastructure and attract, with its liberal
culture and business-friendly policies, and
the right talents to vitalize this sector, but
it also creates the needed facilities that
enable broadcasters to use the cutting-edge
technology to enhance their reach and quality.
The UAE’s print industry has also achieved
a growth in terms of number newspapers
titles, increasing from 9 titles in 2003 to 14
in 2009. Given the various interest of the
region’s population, the UAE has also fostered
the creation of a regional magazines and
journals industry. The number of magazines
that are operating from the UAE has reached
over than one hundred magazines. Although
the UAE is a relatively small market with
limited reach, most of the magazines look
at the larger picture, making the UAE its
hub to distribute its copies, digitally and
via print, throughout the region.
The
newspaper and magazine publishing industry
makes efficient use of the relatively low cost
of printing in comparison to other countries
of the region to make economic gains.
Recognizing the significance of the
modernized, standardized and cost effective
printing industry to the growth of a healthy
and competitive media cluster, specialized
business parks and infrastructure has been
established that allows the creation of a
regional printing hub. The International
Media Production Zone (IMPZ) was
established in 2003 to as a specialized media
production zone to develop a business
environment that is uniquely geared towards
the needs of graphic art, printing, publishing,
and packaging and media production
companies.
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Chapter 4
It is also one of the fastest growing
countries in terms of advertising in the GCC
region. Revenues of this vital media segment
have been increasing since 2003. According
to data released by Pan Arab Research Centre
(PARC), the UAE has an overall spend of USD
349 million during the first three months of
2011; accounting 12 per cent of the all overall
spend of the Middle East in the first quarter
of 2011.
In spite of the relative downturn that was
experienced in the advertising spend due to
the general economic conditions caused by the
global economic and financial crisis, the UAE’s
advertising industry is well on the way to
recover and is undergoing a major shift in the
means and in the industry structure. Digital
Why UAE ?
media and social media are now dominant
means for marketing and advertising in the
region, leading to the need to use different
skill sets and production resources. The UAE is
today the host of the top-notch international
names in the international advertising industry
agencies and is truly the regional capital for
the advertising and promotion industry.
A range of well-established free zones
and business parks was built to provide all
necessities that a media company could ask
for. Dubai Media City, Fujairah Creative City,
twofour54 zone in Abu Dhabi and RAK Media
City are only a few examples of the strategic
locations for setting up a media company in
the UAE.
Dubai Media City, an initiative of the
Dubai Technology Electronic Commerce and
Media Free Zone Authority was established
in 2000 to provide an advanced high-tech
infrastructure and a supportive environment
for media related businesses to enable them
to operate globally out of Dubai. The Dubai
Media City is the place where every kind
of media business, especially broadcasting,
publishing, advertising, public relations, music,
news media, production and post-production
will thrive. Very well-known media groups
like MBC media group that has the highest
viewership’s rates in the region have chosen
DMC as their headquarters.
Media sector in the UAE is rich of world-class
media companies. Abu Dhabi Media Company
(ADMC), established in June 2007 to revitalize
the media industry in the UAE’s capital, has
already established itself as a leading multiplatform media and entertainment provider
in the MENA area. ADMC owns and operates
three television channels, four radio stations,
three newspapers, three magazines and a
press. The company is also planning to enlarge
its portfolio by investing USD 1 billion to
develop and produce 40 feature films.
Dubai Media Incorporated (DMI), another
media giant in the UAE and the region, has
under its umbrella six television channels, three
newspapers, a press and two radio stations. In
order to diversify its portfolio, DMI plans to
launch a magazine and a radio station.
Entry points
A Fertile Environment for Television
and Radio Broadcastings
Positioning in the UAE does not only mean
the company is serving the domestic market.
Using the advantageous location of the country
as a central location to serve the MENA region
as well as other regions has given major media
groups the fruits they have expected. In 2009,
Orbit Showtime Network (OSN), after the merger
of Showtime and Orbit, chose the UAE as the
main headquarter. OSN, with over 75 television
and radio stations, is the major Arabic paytv player. The UAE has also given exceptional
privileges to renowned media groups, proving its
commitment toward positioning itself as a media
hub in the globe.
English Television Channels
Even though the majority of the television
viewers in the Arab region prefer TV in Arabic,
the UAE has the highest number of those who
prefer TV in English. According to Arab Media
Outlook conducted by Dubai Media Press in
2009, 22% of TV consumers in the UAE prefer
watching English channels. The large number
of English speakers in the country has been and
will continue to be the primary factor behind this
result. The demand, thus, is relatively high.
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Chapter 5
Seven Pearls and Beyond
“
It is not only because of the unbeatable
incentives and state-of-the-art facilities offered by the
UAE’s free zones and special economic parks that their
success can be inferred to; the reasons of their evident
achievements go beyond than that.
“
234
Chapter 5
Abu Dhabi
Why UAE ?
I
n 1962, the first oil commercial shipment
left Mina Zayed, bringing with it a new
bright future not only for the emirate of Abu
Dhabi but also for the UAE. For the last four
decades, the oil industry has been the main
engine behind the unprecedented economic
growth in the capital city of the UAE. As of
2010, official data show that Abu Dhabi has 98
billion barrels of proven oil reserves, making it
the sixth in the globe. Its daily oil production
has reached 2.7 million barrels. More than USD
90 billion comes from the oil revenues yearly.
Over the past decade, Abu Dhabi has
become one of the world’s fastest growing
economies. Real GDP growth reached 15.9%
in 2010 and was as high as 19.4% in 2004. In
2009, it contributed around USD 162.39 billion
to the national GDP which makes 60% of the
total national GDP.
Oil has been playing a vital role in the
development of the emirate and the country
economy. From day one, the huge revenues
from oil were invested in the key areas of the
economy in order to diversify its economic
profile for a more sustainable prosperity.
Abu Dhabi economic priority today is to
build a sustainable economy while ensuring
social and regional growth despite its huge
capacity of oil and hydrocarbons. The Main
economic sectors in the diversification strategy
are sustainable energy, manufacturing,
communications, technology, media, tourism
and education. Various strategic plans have
been carried out by the different bodies of the
emirate in order to implement its ambitious
2030 vision that simply aims to reduce the
dependence on the hydrocarbons sector and
creates a diversified economy.
The current plans in the energy sector indicate
the emirate’s great interest in diversifying
its energy resources. In 2006, it established
Masdar, seeking to leverage the emirate’s
substantial resources and experience in the
renewable energy sector. It also established
Emirates Nuclear Energy Corporation (ENEC) in
2008, maintaining its leadership position in an
evolving world energy market.
The technology sector was boosted by
the launch of the Advanced Technology
Investment Company (ATIC). The company
was mandated to focus primarily on the global
advanced technology sector. ATIC is a whollyowned subsidiary of Mubadala Development
Company, an investment arm of Abu Dhabi
government.
Established and owned by the Government
of Abu Dhabi, Mubadala is a catalyst for the
Emirate’s economic diversification, managing
long-term, capital-intensive investments that
deliver strong financial returns and tangible
social benefits to the region.
Abu Dhabi has also been creating an
environment where industrial activities can
flourish, as it believes that the Industrial sector
must be a pioneering economic sector that
adequately contributes to the diversification
strategy. Three main industrial zones in Abu
Dhabi are Abu Dhabi Industrial City, Khalifah
Port and Industrial Zone and Industrial area in
Mussafah.
The plan of developing a diversified
economy consisted also of building a number
of economic and special zones where attracting
competitive incentives are offered. Towfour
54 free zone is aiming to make Abu Dhabi the
home of the media content development in
the Arab region.
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Chapter 5
Abu Dhabi Free Zones
Masdar City
Year of Establishment
2007
Licensing Authority
Masdar City Authority
Sectors Targeted
Renewable Energy, Energy Production,
Energy Storage, Cleantech and ICT,
Marketing and Events and General (Service
providers and Consultancy)
Legal Forms Licensed
• A branch of a foreign company or UAEbased company (including companies
incorporated in other UAE special economic
zones)
• A special economic zone limited liability
company with corporate shareholders
• A special economic zone limited liability
company with individual shareholders
Annual License Fee
AED 20,000 (USD 5,446)
Key Clients
Siemens, Mitsubishi Heavy Industries, General Electric, Schneider Electric, Bayer Material
Science
President
Ahmed Ali Al Sayegh
Senior Management
C.E.O. : Dr. Sultan Ahmed Al Jaber
Director: Alan Frost
WHY
Masdar City?
•The first-of-its-kind global business
location that places companies at the
heart of the dynamic and thriving clean
technologies and renewable energy
clusters
•Features
a
world-class
research
university specialized in renewable
energy and clean technologies studies
(the Masdar Institute)
•An emerging international cluster with
many international companies operating
or have the intention to operate from
Masdar city.
•An established clean technologies and
renewable energy community where
research and development, pilot projects,
technology testing, and construction of the some of the world’s most sustainable
buildings are taking place.
•Every aspect of operating in Masdar
City has been designed to allow partner
organizations to focus all their energies
on their core activities. Masdar City’s
One-Stop Shop can handle the rest –
from government services to visas to
numerous business services, such as travel
arrangements.
•0% import tariffs and 0% taxes on
companies and individuals
•No restrictions on capital movements,
profits or quotas
•100% foreign ownership
•No currency restrictions
•Hiring of expatriate staff
•Gateway
to
the
vibrant
market
opportunities of the Middle East and Asia
•Outstanding
logistics
network
incorporating air, sea, road and eventually
rail
•A safe, friendly working environment
Why UAE ?
Facilities and Services Offered
•Registration, incorporation and licensing of
new entities
•ICT connectivity and services
•Issuance and renewal of lease agreements
•Insurance Services
•Pre-registration approvals from Abu Dhabi
Department of Economic Development
•Utility Bill Payments
•Company Name registration with the
Department of Economic Development
•Employee Visa Services – new, renewal and
cancellation (Entry Permit, Residence Visa
Stamping, Visit Visa, Dependent Visa, etc)
•Post Box set up – new and renewal
•Customs Administration – Assist with
securing Import Code and Customs Clearance
•Translation Services
•Travel Services (Visa, Air-ticket booking,
Hotel booking)
•Car Rental Services
Contact Details
Business Development Department
Masdar City, Abu Dhabi, Khalifa City “A”
opposite Presidential Flight
•Other government services (driving license, car
registration, health card issuance)
Tele.: +971 2 653 3333
•Approval of fit-out / retrofit activities
Email: [email protected]
•Effective facilities and asset management
Website: www.masdarcity.ae
Fax: +971 2 653 1006
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Chapter 5
TwoFour54
2007
Licensing Authority
Media Zone Authority – Abu Dhabi
Sectors Targeted
A/V Production Firms (TV Programs, Children’s
Animation etc.), Broadcasting Firms (TV and
Radio), Publishing Houses (Books, Magazines,
Newspapers etc.), New Media Firms (Mobile
App Developers, Digital Content Producers
etc.), Advertising or Marketing Services,
Public Relations, Events, Print Publishing,
Information & Data Services, Business Support
Services, Film, Training, Mobile content,
Gaming,
Entertainment
Devices,
Web
Publishing & services
• A free zone limited liability company
(FZ-LLC)
• A branch of an existing company
• or license as a freelancer
Incorporation Fees
Company Creation – AED 2,500
Initial Payment for PO Box – AED 1,250
Key Clients
ADMC, Charisma, Sky News Arabia, Fox,
Financial Times, CNN and Turner
Senior Management
C.E.O.: Tony Orsten
C.O.O.: Wayne Borg
Why UAE ?
WHY
Towfour54 ?
•Strategic location: in the heart of one of
the fastest growing cities in the world and
a gateway to Arabia; a vast, young and fast
developing market.
•A
campus-style
environment:
Where
networking and strategic alliances with other
creative professionals and businesses can
easily be established and are encouraged. We
facilitate these partnerships by bringing the
right people together at the right time for our
partner companies’ projects.
•A supportive and fiscally beneficial
environment: Businesses are entitled to 100%
ownership, cost-effective set up, currently
a full exemption from corporate taxation
and ongoing support from the Abu Dhabi
Government.
•A transparent licensing and cost structure:
A world-class regulatory frameworkwhich
protects IP rights, ensures compliance with
laws, promotes strong governance and a clear
transparent pricing structure to ensure there
are no hidden set up or operational costs.
•A comprehensive one-stop shop: 3 integrated
business pillars, offering world-class training;
project funding and support; HD production,
post-production, media asset management,
digital archiving, play out and broadcast
facilities; enabled with on-the-ground logistical
business set-up and support.
•Being part of the regions’ leading content
creation community.
•Efficient and clear regulatory framework
including an enabling company law
environment for investors.
•Competitive rents and business services
(government related, travel services etc.)
•Training Services: media courses, that are
both world-class and practical, and that
immediately improve participants’ media
working performance
•Support Services: finance and support
businesses and individuals targeting the Arab
media and entertainment industry
•Production Services: state-of-the-art facilities
for production services
•Government Services: a one-stop-shop, a team
was established to liaise with government
authorities and ministries
relating
to
visa applications, residency procedures,
government licensing and filming, event
permits and more
•Residential Services: a team can work with
businesses to source a furnished or unfurnished
home at a variety of locations across Abu
Dhabi
•Office Space management: the office space
solution available to partners includes serviced
offices, fitted-out offices and core and shell
offices
•Hospitality: catering services suitable for
all occasions, including training courses,
conferences, office parties and meetings.
•Retail: The retail facilities include a convenience
store, café, digital printing, ATM and laundry
services
•Travel Services: From commercial and
business air travel to car rental and hotel
accommodation
Available Business Premises
•Serviced Office
1 Desk – AED 8,950 per month
2 Desks – AED 13,250 per month
4 Desks - AED 20,700 per month
•Fitted – out office – AED 4,550 per square
meter per annum
•Core and Shell – AED 3,450 per square meter
per annum
Contact Details
Khalifa Park, Abu Dhabi
Tel.: +971 (0)2 401 2454 /
Fax: +971 (0)2 401 2345
Website: www.twofour54.com
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Chapter 5
Khalifa Industrial Zone
2010
Licensing Authority
Khalifa Industrial Zone Authority
Sectors Targeted
Vertically Integrated Clusters, Aluminum,
Food, Steel, Petrochemicals & Chemicals,
Pharmaceuticals & Healthcare Equipment,
Paper, Printing & Packaging , Trade & Logistics,
Engineered Metal Products, Mixed Use and
Other Industries
• Branch
• Free zone Establishment (FZE)
• Free zone Company (FZCO)
Incorporation Fees
Application fee: AED 5,000
Key Clients
WHY
Kizad ?
•Centrally located with equal distance from
Jebel Ali Port and the city and the airport
of Abu Dhabi, both providing easy access
market and resources promising rapid
growth potential
•Multimodal connectivity with an integrated
port (Khalifa Port), access to future rail
network development and proximity to
Abu Dhabi International Airport
•One Stop Shop business services to deliver
value and convenience by facilitating
relationships with Government and
Licensing Authorities as well as utility
companies to ensure rapid processing and
approvals aimed at helping businesses
speed up the process of obtaining the
necessary permits, licenses, approvals and
clearances
•Business efficiency, easy access to various
markets, low-cost operational environment
and other essential support to achieve
long-term competitive advantage.
Emirates Aluminum (Emal)
Chairman
Sultan Al Jaber
Senior Management
Khaled Salmeen Al Kawari
Executive Vice President, Industrial Zones
Abu Dhabi Ports Company
•Advice and practical assistance for setting up
a business quickly and easily
•Fulfilling Human Resources and immigration requirements
•Providing utilities connections, waste
management,
logistics
and
facilities
management
•A dedicated Relationship Manager, based
in the Zone, always on hand to provide
answer and assistance that a business may
require and to ensure timely processing of
paperwork to obtain all necessary licenses,
clearances and permits in a swift and
efficient manner
Why UAE ?
• Built-up area Factory
• Warehouse
• Office
• Utility Storage
• Open Land
Contact Details
Business Development Department,
Al Taweela Island, P.O. Box 54477 Abu Dhabi
Tel: 800 10 20 30
Tel: +971 800 10 20 30 Outside UAE)
Fax: +971 2 695 2030
Website: www.kizad.ae
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Chapter 5
Abu Dhabi Airport
Free Zone
2009
Licensing Authority
Abu Dhabi Airport Free Zone Authority
Location
Close to Abu Dhabi International Airport
Section Targeted
Aviation & Aerospace, Logistics, Cargo & Freight,
Electronics & electrical, Consultancy and
business development, Computers, internet
and IT solutions, Telecommunications, Express
Transportation and 3PLs, Pharmaceuticals and
medical equipments
•A Branch of a Foreign Company
•Free Zone Establishment
•Free Zone Company
WHY
Abu Dhabi Airport Free Zone?
• Take advantage of Abu Dhabi International
Airport strategic geographical position
on the crossroads between the East and
the West, and the large-scale economic
development of the Emirate of Abu Dhabi
•World-class business facilities and services
•All required amenities under one cluster
•Conferencing facilities
•Business centers
•Banking and insurance facilities
•Hotels & restaurants
•Food courts
•Duty free shops
•Postal services
•Travel agencies
•Clinics
•Petrol station
•24 hours security
Key Clients
In progress
Chairman
Khalifa Al Mazrouei
Senior Management
Executive VP – Business Development:
Ramy Jallady
•Advice and practical assistance for setting up
a business quickly and easily
•Fulfilling Human Resources and immigration requirements
•Providing utilities connections, waste
management,
logistics
and
facilities
management
•A dedicated Relationship Manager, based
in the Zone, always on hand to provide
answer and assistance that a business may
require and to ensure timely processing of
paperwork to obtain all necessary licenses,
clearances and permits in a swift and
efficient manner
Why UAE ?
Contact Details
• Commercial offices
Abu Dhabi Airport Company
• Light industrial units
Tel: +971 2 505 3425
• Serviced lands
Fax: +971 2 575 8300
Website: www.adafz.ae
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244
Chapter 5
Dubai
Why UAE ?
A
tiny fishing and trading settlement
located in the coast of the Arabian Gulf
managed to create a brand synonymous with
luxury, multi-billion dollar real estate ventures
and 10 million visitors in 2010. Dubai has
undergone an impressive transformation for
the last four decades. The commencement of
the development cycle started in 1968 with the
widening of Dubai Creek in order to contain
larger ships and the creation of Jebel Ali Port in
1972. This was followed by the introduction of
the free zone concept, allowing international
businessmen within the jurisdiction of these
zones to fully own their businesses and
operate in state-of-the-art infrastructure with
excellent facilities and a close proximity to the
seaport.
Since its establishment, Dubai realized that
it had a limited supply of oil and gas reserves
comparing to its neighboring states. Thus,
through a thought-out development strategy,
it managed to build an outstanding non-oil
profile, mainly depending on trading, services,
tourism and finance. Dubai strongly encourages
the private sector activity. This encouragement
is felt through its business-friendly regulatory
environment, its entrepreneurial initiatives
and purpose-built economic and free zones
that are scattered over its different parts.
These business hubs have been actively
participating in the development of the city’s
GDP generally and the export sector especially,
40% of the emirate’s total export economy in
the first half of 2011.
Dubai’s GDP has been significantly
increasing over the past two decades, mainly
driven by the non-oil sectors. Since 2000,
real GDP of Dubai has been growing at a
compounded annual growth rate of about
15%. The growth was largely driven by nonoil sectors, a unique differentiator in a region
where economies are dependent on oil incomes.
Major drivers of economic growth include
manufacturing, construction, real estate,
financial services and transport storage and
communications. In 2009, it contributed USD
80.09 billion, 29.6% to the national GDP, less
than 2% of its GDP came from oil sectors.
Dubai is a unique blend of East and West;
rich local culture, a bustling metropolis
where 195 nationalities live side by side, and
growing investment on a daily basis. Dubai
offers some of the best education, healthcare,
shopping, sport and leisure opportunities in
the world. It is also a leader in travel, tourism
conference and exhibition industries, and
offers outstanding infrastructure, a stateof-the-art telecommunications network and
unparalleled connectivity.
Dubai is a preferred choice for
international companies to establish their
regional headquarters. According to Economic
Intelligence Unit – Middle East, 90% of the
French companies prefer to establish their
regional headquarters in Dubai. Its strategic
location between Europe and Asia, and close
to both wealthy countries in the Gulf as well as
the Indian subcontinent is providing companies
based in the emirate an access to a market of
over two billion people. Its speedy and costeffective incorporation procedures along with
the implementation of latest technology in
most government services are vital grounds
for choosing Dubai.
The emirate’s government is continuing its
economic diversification strategy. Its current
focal point though is over the subsectors of
the non-oil sectors such as sports, exhibitions
and shows in the tourism sector. Technology
and education are among the government’s
supported sectors. This support is not only
limited through easy procedures but it also
extends to offering funding for specific
initiatives in these fields. In addition, Dubai
is constantly working to introduce dynamic
regulations that aid the formation of small
and medium enterprises (SMEs).
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Chapter 5
Dubai Free Zones
Jebel Ali Free Zone
2007
Licensing Authority
Jebel Ali Free Zone Authority (JAFZA)
Sectors Targeted
Licenses companies related to industrial,
Logistics, trading, services and other sectors
• Free zone establishments (FZE)
• Free zone companies (FZCO)
• Branch Companies
• An Offshore Company as a non-resident
company, with a corporate legal entity
Incorporation Fees
Registration fee: AED 3,510
Commercial License: AED 15,010
Key Clients
Unilever, P&G, GE, Sony, LG, Shell, BP, 3M,
ExxonMobil, Johnson & Johnson, ColgatePalmolive, Xerox, Pepsi, Kraft, Ford, Goodrich,
and Goodyear
Chairman
Hisham Abdulla Al Shirawi
Senior Management
CEO: Salma Al Hareb
Deputy CEO: Ibrahim Mohammed Al Janahi
WHY
JAFZ ?
•Excellent location between the region’s largest
sea port and airport, both located in Dubai
•The oldest and most established free zone
in the MENA Region with more than 6,400
companies
•A recognized global brand with more than
120 of the Global Fortune 500 companies
operating in the free zone
•Ability to register branches in main land Dubai
to take advantage of the GCC customs union
•A multi-national business environment with
firms representing the six continents of the
world
•An investor-friendly environment, world-class
infrastructure complemented by value-added
services and incentives, expanding facilities
convenient regulations, a customer-centric
business policy
•Easy and efficient access to a potential market
of over two billion people in the greater
Middle East region
•The free zone has developed a red-tape
free, efficient and dynamic system including
the ‘one-stop- shop’ concept, which allows
investors to set up businesses at the free zone
at an incredibly fast pace.
•JAFZ offers its clients many incentives to enable
them to do business with greater ease and
profitability. These incentives include 100 per
cent foreign ownership, 0 percent corporate
tax for a period of 50 years (a concession that
is renewable), transfer of capital as required, 0
percent import or re- export duties, 0 per cent
personal income tax, no currency restrictions,
and no restriction on hiring foreign employees.
•An integrated industrial and logistics
community with a port, container terminal,
factories, warehouses,
labor and staff
accommodation and recreational areas in close
proximity
Why UAE ?
•One Stop Shop: Customers are offered all the
services required to establish and operate
a business in the free zone, thus saving time,
effort, and cost, giving them the advantage
to focus on their business rather than dealing
with multiple entities whenever they need to
carry out a transaction.
•Integrated solutions from on site residences
(staff accommodation) to recreation, medical
facilities and food courts.
•Advisory and updating: Jafz assists customers
in setting up a business and selecting desirable
sites or locations for their ventures. The free
zone also helps them to determine operational
requirements and, additionally, keep them
updated on various developments in their
specialized business sector.
employees. Its proximity and facilities such as
recreational activities,
supermarkets and
restaurants provide an ideal environment for
company employees.
•Hotels: Jafz also offers economical hotel
facilities through its joint venture named Easy
Hotel, A budget hotel (2 stars) with 216 rooms.
The hotel offers absolutely first class “sleep
and shower” experience at an affordable price
for visitors to the free zone.
• Core and Shell Offices
• Standard Warehouse
• Land
• Build-to-Suit Warehouses
•Business Matching: This service helps companies
leverage opportunities of joint ventures and
other mutually beneficial partnerships in the
local and international market.
• Business Centre Offices
•Dubai Trade: Through a single bilingual
portal (DubaiTrade.ae), Jafz offers customers
24/7 secure access to all services. The portal
consolidates all the services of complementary
organizations including DP World and Dubai
Customs and gives customers the added
convenience of a single logon.
Contact Details
•On Site Residential facilities: Jafz offers onsite accommodation within Jafz for company
• Showrooms
• Retail
JAFZA Commercial Sales
Jebel Ali, Dubai
Telephone: 800-Jafza (52392)
Fax: +971 4 8815001
Website: www.jafza.ae
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Chapter 5
Dubai Maritime City
2007
Licensing Authority
Dubai Maritime City Authority (DMCA)
Sectors Targeted
Maritime services, maritime management,
vessel and yacht registration, vessel and
yacht ownership and charter, maritime and
educational research, vessel and yacht design
and building, maritime shipment organization,
maritime exhibition, conferences, training and
workshops, maritime tourism
• Registration Fee – AED 15,000 (FZCO),
• AED 10,000 (FZE)
• AED 8000 (Branch)
• License Fee – AED 10,000
Incorporation Fees
Key Clients
United Arab Shipping Company Services,
Emirates Shipping, APM Terminals AMI
Management DMCEST, MUR Shipping DMCCO
and Middle East Shipbuilding DMCCO
Chairman
Khamis Juma Bhuamim
Office Premises
Why UAE ?
WHY
DMC ?
•The world’s first purpose-built maritime centre
•The first choice for maritime businesses not
just because of the facilities provided, but
also because of the trategic location, it unique
integration of maritime players around the
globe, the fame of lifestyle and infrastructure
of Dubai and its renowned financial clout.
•The Maritime Centre is designed to be a vibrant
thriving community unique not only in terms
of sea-based location but also in the enduring
maritime ambience it creates.
•Houses the Middle East’s first ship registry
office
•A superlative environment for workplaces
withthe highest standards of service and
excellent amenities.
•A world-class maritime
regulatory body
legislative
and
•100% foreign ownership, exclusive maritime
activities & customer friendly service and
process
•Exclusive maritime authority in the emirate of
Dubai
•Proximity - very close to the central business
district Facilities and Services Offered
•Registration and licensing of maritime related
companies
•Dedicated ship registry
•Visas
•Residential facilities
•Health Services
•Postal Services
•Spacious car parking facility
Contact Details
Communications Department
North of the main city center and creek
area business district
Telephone: 04345 5545, Fax: 043452234
Website: www.dmca.ae
Dubai Cars and
Automotive Zone
(DUCAMZ)
2000
Licensing Authority
Jebel Ali Free Zone Authority (JAFZA)
Sectors Targeted
Automotive trading, sales and some services
such as insurance, banking, repair and
maintenance of automobiles
• Trading license for a branch of foreign
company (including offshore company)
• Free Zone Company
• Free Zone Establishment
Incorporation Fees
WHY
DUCAMZ ?
•An easy access to all airports and seaports
in the region. The automobiles can
be reloaded onto feeder vessels for
easy transport via a modern network of
highways linking all the neighboring countries
in the Middle East and beyond
•Strategic location with unique concept
•Providing all services in the space of
one building and the Space for all the
Facilities needed by the Auto trade,
Export & Import Client
•No import/export duties and no restrictions on
maximum import of automobiles
All services related to the Government
entities associated with the Auto Trade,
Import and Export Client are located
within the same area.
•Dubai Customs Inspection
Licensing Fee – AED 5,500
•Dubai Customs Operations
Registration Fees – AED 10,000 (EZE),
•Dubai Ports Documentation
AED 15,000 (EZCO), AED 5,000 (Branch)
•RTA Department
Chairman
Hisham Abdulla Al Shirawi
Senior Management
•Shipping Agencies
•Bank
•Money Exchange
•Workshops
CEO: Salma Al Hareb
•Insurance
Deputy CEO: Ibrahim Mohammed Al Janahi
•Restaurants
Office Units
Warehouse
Workshops
Showrooms
•Supermarket
Contact Details
Marketing Department - JAFZA
Ras Al Khor, Dubai
Tel: +971 4 333 5000
Fax: +971 4 333 7871
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250
Chapter 5
Dubai TechnoPark
2003
Licensing Authority
Economic Zones World
Sectors Targeted
Technology, Telecommunications, Engineering,
Health, Water, Logistics and Mobility, and
Energy
• Limited Liability Company
• A Branch of a local or a foreign company
Incorporation Fees
Key Clients
Trox Group, 3M, Nestle, Harsco, Baker Hughes,
Sika, SunEdison, Nestle Water, Culligan, Park
Water Co, Metito, Torishima Pump, Pacific
Control Systems, Voith, Emro Armaturen,
Tencate, Proclad Group, Oil States, Geepas,
Basf, Woods Hole Group
Chairman
Hisham Al Shirawi
Why UAE ?
WHY
TechnoPark ?
•The nucleus of new technology, where
ideas become reality, training creates
excellence and research unearths new
understanding
•The only research and development
technology park in the region
•Located in the heart of the Middle East
region’s international business hub
•A hub that enables research partners
to access the resources of academic and
research institutions, and i n t e r n a t i o n a l
associations worldwide
•An advanced communications network, a
full range of administration services
•As a special economic zone, it offers 100%
foreign ownership, 0% corporate tax rate,
etc.
•A
prestigious
networking
and
research partners’ profile that includes
International Association of Science Parks
(IASP), World Association of Industrial
and Technological Research Organizations
(WAITRO), Fraunhofer- Gesellschaft (FhG),
Boston University and others
•Covers 21 million square meters of land,
about 30 percent of which is open space
areas.
•Brings the most advanced organizations
in the world together, fostering shared
understanding through research into and
development of new technologies.
•Aims to
cultivate greater knowledge
for the future, by promoting continuous
innovation and progress.
•Consultancy services in evaluating
selecting water technologies
and
•Mega mall, retail outlets, showrooms, business
class hotels and two 8-storey office buildings
•Staff Accommodation Facilities
•Specialist Medical Research Centers and
Educational Facilities
•Residential
areas
with
sports
and
entertainment centers, as well as retail shops,
health care and civic amenities
•Government Services window: including visas,
RTA services, etc.
• Commercial Offices
• Light Industrial Units
• Showrooms
• Open land
Contact Details
Commercial Sales Department Al Qouz
(west Jebel Ali Free Zone), Dubai
Telephone: +9714 881 4888
Fax: +9714 8811444
For Enquiries: http://pilot.dubaitrade.ae
ezwemext/ enquirysetup.do
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252
Chapter 5
Jumeirah Lake Towers
Free Zone
2002
Licensing Authority
Dubai Multi Commodities Centre Authority
Section Targeted
Commodities, Finance, Shipping, Recruitment,
IT, Advertising, Fashion among other economic
activities
•Branch, Free Zone Establishment (FZE)
•Free Zone Company (FZCO), Subsidiary
•Representative Office
Key Clients
Alcan Middle East DMCC, Antwerp Diamond
Bank,
Clarksons DMCC, Conoco Phillips
International Trading PTE LTD, Continental
DMCC, Dhamani, Emirates Gold,
Harley
Davidson, Hudson, Louis Dreyfus Commodities
MEA Trading, LVMH, Lukoil, National Shipping
Co Saudi Arabia, Posco Steel & Alloys DMCC,
Reliance Industries (Middle East) DMCC, Rosy
Blue DMCC, RWE Supply & Trading GmbH,
Talent Partners, Topaz, Unilever
Chairman
Ahmed Bin Sulayem
Senior Management
CEO: Malcolm Wall
WHY
JLT ?
•Close proximity to the Dubai Logistics
Corridor, the world’s largest multimodal logistics platform linking sea,
land and air, makes JLT an ideal location
for internationalcompanies seeking to
establish regional headquarters in Dubai.
Dubai has a considerable logistics network
ensuring fast transportation of goods.
Moreover, JLT is around 45 minutes away
from Abu Dhabi and is adjacent to an
extensive road network that links Dubai
with the other Emirates and surrounding
countries.
•Different licenses: DMCC offers a secure
regulated environment and licenses a full
range of business activities.
•A one-stop-shop Licensing Authority:
DMCC offers its members services ranging
from registration and licensing to general
services that ease the process of setting up
a business in JLT.
•Quality commercial and residential
properties with lease or buy option:
With 60 completed residential, office and
mixed use towers, JLT offers a variety of
property types that are as distinctive as
each tower design. There is a choice of
shell and core space for companies who
want to design their own workspace,
fitted out offices, short term serviced
offices, virtual offices and flexi desks.
Spaces offered also include different sized
land plots for development as well as
office floors and units in DMCC developed
and third party developers’ buildings.
•Invaluable business incentives: As a free
zone, JLT offers a guaranteed 50-year tax
holiday on personal and corporate tax.
100% foreign ownership, JLT does not
restrict foreign exchange and allows 100%
capital repatriation.
Why UAE ?
•Secure regulated environment with a full
range of business activities
•Commercial office space - units and entire
floors to lease or buy
•100% business ownership
shareholders are permissible
•Serviced offices/Flexi desks /Virtual Offices
and
sole
•Quality commercial and residential properties
with freehold or lease options
•Guaranteed 50-year tax holiday
•100% capital repatriation
Incorporation Fees
License Fee – AED 22,030 (new company)
AED 20,020 (branch)
•Business Centers / Workshops / Retail space
•Land plots for development
Contact Details
Client Service Centre
Almas Tower, Jumeirah Lakes Towers,
Dubai Telephone: Inside the UAE 800
DMCC (3622)
International inquiries: +971 4 424 9600
Fax: +971 4390 3897
Website: www.dmcc.ae
253
254
Chapter 5
Dubai Textile City
2005
WHY
Dubai Textile City ?
Trading in Textiles
•The first free zone dedicated to facilitate
the storage of textile fabrics for long
periods without customs duty, which is 5%
currently. It was established to help traders
who are mainly in re-export business. It is
estimated that 85% of the goods imported
to Dubai are re-exported, at one time or
another.
•Long lease period +15 years (30 years
initially, renewable thereafter)
Licensing Authority
Jebel Ali Free Zone Authority (JAFZA),
Trakhees
Section Targeted
• A Branch of a Foreign Company
Key Clients
Royal Traders, Kabul Textiles, Maladar Textiles,
Rajhans Trading, Far East Trading, Deepak,
Kaysones Plaza, Neelam Khamas, Rajneesh
Traders, Renoka Textiles, Sona Textiles,
Kessuma Jaminal, Sataym Trading, Ratti
Trading
Chairman
Ashok Sawlani
Senior Management
C.E.O.: Lakhi Ramchandani
•Better costing due to the absence of
intermediaries
•Better business turn over due to new
markets being introduced as a result of
global publicity
•Lower administrative cost. As much as 35%
savings on the cost when compared to the
present working system
•International media publicity
•Dubai Textile City, which sits at the center
of a 1.4 billion booming consumer market
extending from the CIS to Africa and the
Indian subcontinent, has emerged as one
of the most modern and profitable trading
points in this region’s commercial map.
•Exemption from the payments of custom
duties
•Option to sublease the premises
•Option to transfer goods to the city
without customs duty
•Stability and discipline is anticipated in
DTC, a smart and integrated complex.
Why UAE ?
•Warehouse: Rent-free period first 15
years, only ground leases payable AED
0.90 (90 fils) per square feet per year.
From 16th to 20th year AED 3.50 and
21st – 30th year, rent as per market price
less 50% with a minimum of AED 8.5
per square feet
•DTC has the full support of Dubai Ports and
Customs, the Customs authority will help
processing visa requirements of DTC members.
•Offices
Contact Details
•Showrooms
•Meeting and conference facilities
•Maintenance and Security
Texmas Sales Department Al Awir Free
Zone, Dubai
Telephone: +971 4 3531551
Fax: +971 4 3530257
Website: www.texmas.com
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256
Chapter 5
Dragon Mart
2004
Licensing Authority
Trakhees
Sectors Targeted
wholesale and retail trade of a variety of
Chinese products including home appliances,
stationery, office appliances, communication
and acoustic equipment, lamps, household
items, building materials, furniture, toys,
machinery, garments, textiles, footwear and
general merchandise
Trade license for Chinese Nationalities only:
WHY
Dragon Mart ?
•The prime gateway for Chinese products in
the Middle East
•Strategically located to maximize the
retail opportunities within and around the
MENA region
•The largest trading centre for Chinese
products outside mainland China
30,000 square metres of warehousing
2,500 parking spaces
In house post office
One-stop-shop government service
•Warehouses
Incorporation Fees
•Retail Shops
Similar to mainland Dubai licensing fees
•Offices
(refer to Chapter 7)
Key Clients
Chinamex Middle East Investment, Trade
Promotion Centre, Auchan
Senior Management
Acting Director: Omar Khoory
Marketing Executive: Aisha Al Kindi
Contact Details
Marketing Department International City
Al Warsan area- Dubai
Telephone: +971 4 4336 200
Fax: +971 4 4336 199
Website: www.dragonmart.ae
Why UAE ?
257
258
Chapter 5
Dubai International
Financial Center (DIFC)
2004
Licensing Authority
DIFC Authority
Section Targeted
Banking Services (Investment Banking,
Corporate Banking & Private Banking), Capital
Markets (Equity, Debt Instruments, Derivatives
and Commodity Trading), Asset Management
and Fund Registration, Insurance and Reinsurance, Family Offices and Islamic Finance.
Key Clients
Standard Chartered Bank, Bloomberg, Dutche
Bank, Credit Suisse, UBS, HSBC, AIG, Standard
Moodies, Delloitte, DME, EFG Hermes, Saxo
Bank, SMBC, Kingdom Hotel Investments, ES
Bankers, ICICI Group
Governor
Abdullah Muhammed Saleh
Senior Management
CEO: Abdullah Al Awar
Head of Insurance and Business Entities:
Hana Al Herz
Head of Financial Services:
Kevin Berkett
Head of Corporate Communications:
Maryam Al Falasi
Leased offices
Serviced offices and meeting facilities
Why UAE ?
WHY
DIFC ?
•DIFC is the first world class,international
centre serving the region which includes
the Middle East, East and North Africa, the
Caspian states and the Indian Subcontinent.
It is a region of 1.8 billion people (about
a third of the world population) and a
combined economy worth $1.5 trillion in
terms of GDP, growing at an annual rate in
excess of 5 per cent a year.
•DIFC is designed to span the time zones not
covered by New York, London and Hong
Kong. It will complete the missing quarter
in the 24 hour, 7 day week, global financial
system. DIFC will act as a catalyst to the
region’s economic development-just as Wall
Street, the City of London and Hong Kong
have contributed to the growth of the US,
European and Asian economies.
•A regulatory framework built on the best
practices found in those leading jurisdictions
•Dubai satisfies all of the conditions that
banks and other financial institutions look
for. It is a cosmopolitan, first world city with
a long history of political and social stability.
It has a large highly educated, multi-lingual,
multi cultural work of skilled professionals.
It has excellent communication links within
the region and to other financial centers.
It has a proven record over 30 years of
delivering ambitious business projects such
as technology, trade, sport, travel and
tourism. It has a very supportive government
and an un-bureaucratic approach to
business, with some of the best tax and
other financial incentives anywhere in the
world. Its sophisticated lifestyle and safe
living conditions make it a popular place
to locate for business executives and their
families. The fact that 120 of the Fortune
Global 500 companies have located in
Dubai is proof of this.
A centralized client-servicing model
•
that delivers a breadth of services that
would involve numerous uncoordinated
counterparties in other jurisdictions
1.Retail Entities: Limited Liability Company,
Company Limited by Shares, Foreign Organized
Company
2.Non Retail Entities: Limited Liability Company,
Company Limited by Shares, General
Partnership, Limited Liability Partnership,
Protected Cell Company, Investment Company,
Foreign Recognized Company, Recognized
Limited Liability Partnership, Recognized
Partnership, Spura Company
3.Dubai Mercantile Exchange: Limited Liability
Company, Company Limited by Shares,
Limited Liability Partnership, Dubai Mercantile
Exchange (DME) – Recognized LLP, DME Foreign Recognized Company, DME – General
Partnership, DME – Recognized Partnership,
DME – Limited Partnership
•One-Stop Shop government services
•Fast-track fund registration services
•International Arbitration Center in partnership
with London Center for International
Arbitration (LCIA)
•Independent Laws and Courts
Incorporation Fees
1. Retail Outlets
•Application for Reservation of Name – USD
340
•Application for Incorporation of a Limited
Liability Company USD 3,400
•Commercial License fee (payable upon
incorporation and annual renewal) USD 5,100
2. Non Retail Outlets
•Application for Reservation of Name USD 800
Liability Company USD 8,000
incorporation and annual renewal) USD
12,000
3. Dubai Mercantile Exchange
•Application for Reservation of Name US$ 800
Liability Company US$ 8,000
incorporation and annual renewal) US$
12,000
Contact Details
•Hotel
Corporate Communications
•Art Gallery
Dubai International Financial Centre
Authority, The Gate, Level 14
•Restaurants
Tel: +971 4 362 2222
Fax: +971 4 362 2333
Website: www.difc.ae
259
260
Chapter 5
Dubai Airport
Free Zone
1996
Licensing Authority
Dubai Airport Free Zone Authority (DAFZA)
Section Targeted
Aerospace, Aviation and related services,
Automobiles and Vehicles, Computers,
Internet & IT Solutions, Consultancy &
Business Development, Cosmetics and
Perfumes,
Electronics
and
Electrical,
Engineering & Building Materials, Engines
and Machines, Food, Beverages & Tobacco,
Home and Office Appliances, Jewellery,
Watches& Precious Stones, Logistics & Freight,
Luxury items, Oil &Natural Gas Products and
Services, Packaging and Printing Materials
and Equipments, Pharmaceutical, Nutritional
& Medical Equipments, Plastic, Chemicals &
Petrochemical Products, Telecommunication
• Branch
• Free zone Establishment (FZE)
WHY
Dubai Airport Free Zone ?
•
DAFZA’s integrated infrastructure and
proximity to the facilities of Dubai
International Airport with 120 airlines and
over 210 destinations mean, investors, their
employees and clients will find travelling to
and from the investor’s office simple and
straightforward
•Businesses can operate around the clock
and offer a 24-hour customs service and
rapid cargo clearance through a dedicated
logistics center
•State-of-the art facilities and location
•Hassle-free procedures
•
A one-stop-shop with office space
requirements, registration, licensing and
visa
•Worldwide certificates
•Very competitive financial agreements with
clients
•Security of an established and well-run free
zone with the zone’s emphasis on service,
facilities and incentives that has attracted
over 1,450 companies to the Dubai Airport
Free Zone, which all enjoy the excellent tax
& investment incentives packages
• Free zone Company (FZCO)
Incorporation Fees
Registration fee – AED 10,000 (FZE)
•Office Units
AED 15,000 (FZCO)
• Light Industrial Units (LIU )
Chairman
Sheikh Ahmed bin Saeed Al Maktoom
Senior Management
Managing Director: Dr. Mohammed Al
Zarooni
Director of Sales: Mr. Mohammed bin Swailim
Why UAE ?
• Business Enabled Offices
•Modern facilities and superior logistics services
•Employee Sponsorship (Employment residence
sponsored by the free zone)
•Online transactions processing for all services
(Tas’heel)
•24 hours security service
Key Clients
Airbus, Boeing, Rolls Royce Engines, Bombardier,
NEC, Sandisk, Sumitomo, Burns &McDonell, TNT,
DHL, Heinz, Irish Dairy, Hershey, Actavis, The
Himalayan Drug Company, Johnson & Johnson,
Fossil, Rivoli Group, Kawasaki Heavy Industries,
Mitsubishi, Audi VW, Maserati, Ferrari, Chevron
Philips, BP, Clarins, Chanel, Estee Lauder
•Housekeeping and Building Maintenance
•Government Services: Immigration, Customs,
Chamber of Commerce
Contact Details
•Post, Telecommunications & Banking facilities
Sales Department
•Food court with a wide range of restaurants
and cafes
Al Twar, Next to Terminal 2
•Business centre, conference room, business
lounge and lecture room
Telephone: +9714 2027000
•Travel Agent, Car Rental
•Catering
Website: www.dafz.ae
Fax:+9714 202 7766
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262
Chapter 5
Dubai Silicon Oasis
2004
Licensing Authority
Dubai Silicon Oasis Authority
Section Targeted
Mobile Technologies, Internet, Data Centre,
Arabization / Localization Technologies,
Software / Software-As-A-Service (SAAS),
Semiconductor
• A Branch of Foreign Company
• Entrepreneurial and Startups
Incorporation Fees
License Fee – AED 15,000
Key Clients
Fujitsu, Siemens, Schneider, Wacker Chemie
AG, Porsche and Western Digital
Chairman
Sheikh Ahmed Bin Saeed Al Maktoum
Senior Management
CEO: Dr. Mohammed Al Zarooni
Why UAE ?
WHY
DSO ?
•The only technology park in the region
that provides both a living and working
integrated community
•A full package of incentives and benefits
includes 100% foreign ownership, 100%
repatriation of capital, Zero income and
corporate tax, and more
•State of the art IT infrastructure and facilities
with tier 3 data centre
•Fast-track business set-up & licensing
•
Dedicated business support services
including integrated online E-Business
system offering tenants fast and efficient
services at the touch of a button
•Access to regional pool of talented technical
and engineering professionals
•Access to consumer markets of 5 billion
people (Middle East, North Africa and
Indian subcontinent)
•A hi-tech ecosystem that offers businesses
a plethora of advantages including a stateof-the-art infrastructure, in-house business
services and strong business support such
as technology investment incentives for
large enterprises, entrepreneurial support,
an incubation centre and venture capital
funding
•A dedicated ICT fund to finance promising
start-up companies
•Conference Facilities
•Commercial offices
•Shops, restaurants and amenities
•Multiple-use warehousing and manufacturing
•In-house government services
•Land for development
•IT services
•Dedicated client support
•A range of Mentorship programs designed for
startups and entrepreneurs
•Advice on market strategy & business planning
•Introduction to large DSO network facilitating
business development and relationships
Contact Details
Company Establishment & Affairs
Dept & Sales Department
Emirates Road, Dubai
Tel: +971 4 501 5000
•Support and protection for IP development
Fax: +971 4 501 5030
•Incubator program and facilities
Website: www.dsoa.ae
263
264
Chapter 5
Dubai Flower Centre
(DFC)
2004
Licensing Authority
Dubai Airport Free Zone Authority
Sectors Targeted
Floriculture, Horticulture, Fruits & Vegetables
• A Branch
Incorporation Fees
WHY
DFC ?
•Strategically located at Dubai International
Airport
•the Dubai Flower Centre is a new hub of
growth for the floriculture industry in the
21st century
•With the explosive growth in global trade
of flowers and perishables, there is an
increasing demand for innovative logistics
and commercial solutions to enable the
industry to reduce transit times, improve
quality and grow profits
•The latest technology to ensure
maintaining the cool chain throughout the
handling process
•5% service charge and 9% water and
electricity charge on top of annual rent apply
•Attractive business incentives including
100% foreign ownership, a corporate tax
holiday for 15 years, no personal income
tax, freedom to repatriate both capital
and profits and no currency restrictions.
Key Clients
•Registration fee – AED 10,000
Fujitsu, Siemens, Schneider, Wacker Chemie
AG, Porsche and Western Digital
Chairman
• Business Units – AED 1,278 per square meter
• Office Units – AED 1,825 per square meter
• Warehouse units – 75 AED per square feet
Senior Management
Director Manager: Dr. Mohammed Al Zarooni
Director of Sales: Mr. Mohammed bin Swailim
Contact Details
Sales Department
Telephone: +9714 2027000
Fax:+9714 202 7766
Website: www.dafz.ae
Why UAE ?
•Customs, Phytosanitary Inspection
•Conference and Meeting Facilities
•Handling and Logistic Services
•Data and Telephone Sockets
•Air conditioning, with individual thermostat
control
•Carpeting and Lighting
•Refrigerated dollies capable of carrying an
entire aircraft pallet from airside to facility
•Automated handling equipment that moves
pallets from airside to facility quickly and
efficiently through airlocks placed at the
entrance
•Segregated storage chambers with varying
temperature zones to suit the optimum
temperature requirement
•Hermetically sealed bays for meat, fish and
ethylene producing products
•Vacuum cooling and forced air cooling facilities
•
Landside security systems include access
control systems such as 50 CCTV Cameras,
Video Over IP (VOIP) security systems, scanners
and walk through metal detectors
265
266
Chapter 5
Dubai Internet City
(DIC)
WHY
DIC ?
2000
Licensing Authority
Dubai Technology and Media Free Zone
Authority (DTMFZA)
Sectors Targeted
Software,
Internet
&
multimedia,
telecommunication & networks and allied
services.
• Free Zone Limited Liability Company
• A Freelance Permit
Key Clients
Microsoft, IBM, Google, Yahoo!, Oracle, Cisco,
HP, Canon, Dell, Nokia, MasterCard, AT&T and
Sony Ericsson
Chairman
Senior Management
CEO: Abdullatif Al Mulla
Managing Director: Malek Sultan Al Malek
Why UAE ?
•One of the largest Information and
Communications
Technology
(ICT)
clusters in the world, hosting over 1400
companies
including
multinationals,
growing enterprises, entrepreneurships
and ventures.
•Founded on solid fundamentals of stateof-the-art infrastructure and a unique
technology-oriented community, DIC is
firmly established as the most lucrative
platform in the region for ICT companies
with regional and global perspectives.
•DIC is home to companies specialized
in software, Internet & multimedia,
telecommunication & networks and allied
services.
•As a Free Zone, DIC offers 100% tax-free
ownership, 100% repatriation of capital
and profits, no currency restrictions,
easy registration and licensing, and solid
intellectual property protection.
•DIC’s modern facilities, state-of-theart infrastructure and ICT value chain
advantages have attracted global giants
•Opportunities for business interaction and
networking, opportunities for channel
and market development
•DIC is also the Winner of the “Best Free
Zone in the Middle East” by Financial
Times in 2007 and 2009.
•Licensing,
Registration,
Immigration,
building and fit out permits are offered as a
one-stop-shop facility
•Commercial Offices
•Business Centre Offices
•communications infrastructure based on
next-generation technologies
•Digital voice and high-speed data services
offered at competitive rates
•Conveniences such as restaurants, banks,
supermarkets, travel agencies, beauty and
fitness centers
•courier services, 24- hour security, prayer
areas, WIFI access, Conference and meeting
room facilities
•Facilities management services, events
venues and promotional areas for
advertisement (kiosks, roll ups, bus shelters,
outdoor branding banners, lake branding).
Contact Details
Dubai Internet City is about 25 kilometers
south of downtown Dubai city, on Sheikh
Zayed Road between Dubai and Abu Dhabi.
It is located adjacent to Dubai Marina.
Tel: +971 4 391 1111
Fax: +971 4 391 3991
Website: www.dubaiinternetcity.com
267
268
Chapter 5
Dubai Outsource Zone
(DOZ)
WHY
DOZ ?
2004
Licensing Authority
Authority
Sectors Targeted
Business Process Outsourcing (BPO) services
like customer contact centre support,
accounting and billing, sales and business
development, human resources, payroll
processing to Knowledge Process Outsourcing
(KPO) like research & development, science
and technology, engineering as well as Legal
Process Outsourcing (LPO).
•The first Free Zone in the world dedicated
to the outsourcing industry
•Ideally located to benefit from the growing
market demands of the outsourcing
industry
•DOZ provides a comprehensive purpose
built infrastructure to both captive and
non-captive companies looking to set
up in the region, control costs and gain
efficiently by leveraging the talents,
technology and expertise in the UAE.
•DOZ offers 100% tax-free ownership,
100% repatriation of capital and profits,
no currency restrictions, easy registration
and licensing, and solid intellectual
property protection.
•Companies set up in DOZ enjoy an
environment that attracts different
elements of the value chain from Banking
and Finance, Insurance, IT, Legal to Airlines
and Hospitality.
Key Clients
Nokia Siemens Networks, Emirates Airlines,
AXA Insurance, Du, Mashreq Bank, Arab Bank,
First Data, Cupola, Larsen & Toubro Infotech
Ltd, Al Futtaim, Willis, and Jumeirah Group
Chairman
Senior Management
Managing Director: Malek Sultan Al Malek
Contact Details
Dubai Academic City Road, Dubai
Tel: +971 4 367 6666
Fax: +971 4 367 0400
Website: www.doz.ae
Why UAE ?
•Licensing,
Registration,
Immigration,
•DOZ retail outlets provide the business
support services a business needs to cater
to daily requirements of dining services,
banking, courier service
•DOZ provides residential units for workers in
the Business Parks
Incorporation Fees
Registration fee: AED 3,500 for FZ-LLC/
branch; not applicable for freelancer
License fee: Average AED 15,000 for FZ-LLC/
branch, AED 10,500 for freelancer
Commercial Offices
Open Land
•Parking facility to accommodate over 1000
cars conveniently located at the zone
269
270
Chapter 5
Dubai Media City
(DMC)
WHY
DMC ?
2001
Licensing Authority
Authority
Sectors Targeted
Advertising & Communication, Media &
Marketing Services, Media Support Services,
Event Management, Event Support Services,
Media Consultancy, New Media, Business
Information, Freelancers, Association (Non
Profit)
•The largest regional media hub
that provides advanced commercial
infrastructure and supportive business
environment for companies to operate
globally out of Dubai
•A thriving media community comprising
leading international and regional
companies and hundreds of freelance
media professionals
•In 2010, DMC was recognized for the
‘Best FDI Promotion Strategy’ in FDI’s –
Global Free Zones of the Future 2010/11
(FT Business) ranking. DMC also includes a
Business Centre to promote SME, talent &
entrepreneurship in the region.
Incorporation Fees
Registration fee: AED 3,500 for FZ-LLC/branch;
not applicable for freelancer
Key Clients
CNN, BBC, MBC, Al-Arabia, Showtime,
Spacetoon and CNBC Arabiya, Thomson
Reuters, Lowe, Associated Press
Senior Management
`Managing Director: Muhammad Abdulla
Contact Details
Al Sufooh Road, Dubai
Dubai Media City is about 25 kilometers
south of downtown Dubai City, on Sheikh
Zayed Road between Dubai and Abu Dhabi.
It is located adjacent to Dubai Marina.
Tel: +971 4 3914555 /
Fax: +971 4 391461
Website: www.dubaimediacity.ae
Why UAE ?
•Shooting location management services
•Accelerated approvals for publishing and
distribution of publications
•Licensing,
Registration,
Immigration,
•Communications infrastructure based on
fitness centers
•Courier services, 24- hour security, prayer
room facilities
•Loft Offices
•Boutique Villas
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272
Chapter 5
Dubai Studio City
(DSC)
WHY
DSC ?
2005
Licensing Authority
Authority
Sectors Targeted
Broadcasting
TV,
Broadcasting
Radio,
Broadcast Support Services, Broadcast Service
Providers, Animation, Film Support Services,
Production (Film/TV and Radio), Production
Support Services, Music and Entertainment.
•DSC fosters the growth of the television,
film and music sectors in the MENA region.
•DSC
offers
world-class
industry
infrastructure to meet the needs of
companies offering services in production,
sound stages - TV and film, back lots and
sets, water tanks, recording studios,
production offices, ancillary services like
green room facilities, catering facilities,
modeling and casting agencies, post
production facilities, labs and telecine,
printing facilities, online and offline
editing suites, animation and SFX studios,
specialised sound studios, set construction
workshops, stunt shops and Warehouses.
•Through the department of Location
Approval Services (LAS), DSC also provides
a single window service for obtaining
filming/shooting permits in Dubai.
Incorporation Fees
License fee: Average AED 25,000 for TV or
Radio Broadcasting, AED 40 for TV network
or Radio Network, other activities AED 15,000
Key Clients
MBC, Endemol, NBC Universal and Spacetoo
Chairman
Senior Management
`Managing Director: Jamal Al Shareef
Contact Details
Department of Location Approval Services
(LAS)
Al Qudra Road, Dubai Land, Dubai
Tel: +971 4 3914664
Fax: +971 4 3909905
Website: www.dubaistudiocity.ae
Why UAE ?
•Services in production
•Sound stages - TV and film
•Back lots and sets
•Water tanks
•Recording studios
•Production offices
•Ancillary services like green room facilities,
catering facilities, modeling and casting
agencies
•Post production facilities
•Labs and telecine
•Printing facilities
•Online and offline editing suites
•Animation and SFX studios
•Specialised sound studios
•Set construction workshops
•Stunt shops and Warehouses
•Loft Offices
•Boutique Villas
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274
Chapter 5
International Media
Production Zone
(IMPZ)
WHY
•An unparalleled, eco-friendly and flexible
production and service environment in
Dubai meeting the needs of the printing
and publishing industry in the world
2003
Licensing Authority
Authority
Sectors Targeted
Printing Machinery and Printing Consumable
Manufacturing, Printing Press, Packaging
Machinery and Consumable Manufacturing,
Publishing, Graphic Arts Support Services,
Support Services, Storage and Design.
IMPZ ?
•The growth in the media production
sector particularly in the printing and
publishing segments
•The world’s largest Media Production
Zone
•Diverse industrial, commercial and
residential community projects with eco
friendly policies
•IMPZ provides a pro-business work
ambient, sophisticated technology and
state-of-the-art community infrastructure
to support and foster the growth of
media production focusing on the Graphic
Art, Printing, Publishing and Packaging
sectors.
Incorporation Fees
• Registration fee: AED 3,500 for FZ-LLC/
• License fee: Average AED 15,000 for FZ-LLC/
branch, AED 10,500 for freelance
Key Clients
ITP, Xerox and McGraw Hill
Chairman
Senior Management
`Managing Director: Muhammad Abdulla
Contact Details
Emirates Road, Dubai
IMPZ is located 30 kilometres from Dubai
International Airport and 25 kilometres
from Jebel Ali Port
Tel: +971 4 3613501
Fax: +971 4 3918067
Website: www.impz.ae
Why UAE ?
•Custom built warehouse facilities that can
house publishing and graphic production
offices
•In-house customs offices to facilitate logistics
handling
•Centrally located plots for building, printing
and packaging facilities
•Licensing,
Registration,
Immigration,
courier services, 24- hour security, prayer
room facilities
•Offices
•Business Center Offices
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276
Chapter 5
Dubai Knowledge
Village (DKV)
2003
Licensing Authority
Authority
Sectors Targeted
HR Development, Executive Search, Content
Development, Assessment and Testing,
Linguistics,
Research
&
Development,
Academic Service Provider, Human Resources
Consultancy,
Freelancers
Professional
Associations (non-profit)
Legal Forms of Business
Entities Licensed
WHY
DKV ?
•DKV is the world’s only Free Zone
area dedicated to Human Resource
Management and learning excellence.
•DKV is a unique hub that offers the
best selection of Human Resource
Management, Consultancy, Training and
Personal Develoment programs on a
picturesque 1km long campus in the heart
of Dubai.
•A trusted business partner (450 business
partners) and a centre of excellence for
professional development
•With the aim of developing the region’s
talent pool and establish the UAE as
a knowledge-based economy, DKV is
offering
competitive
incorporation
procedures.
• Non-profit Association
Key Clients
Gallup, Towers Watson, Hays, Hewitt and
Innovative HR Solution
Chairman
Senior Management
`Managing Director: Ayoub Kazim
Director of Business Development: Leigh Ann
Jones-Khosla
Contact Details
Business Development Department .
Al Sufooh Road, Dubai, Dubai Media City
is about 25 kilometers south of downtown
Dubai City, on Sheikh Zayed Road between
Dubai and Abu Dhabi. It is located
adjacent to Dubai Marina.
Tel: +971 4 3901111
Fax: +971 4 3901110
Website: www.kv.ae
Why UAE ?
•DKV offers a state-of-the-art campus with
fully-equipped conference halls, classroom,
computer laboratories and meeting rooms.
room facilities
•A variety of facilities including a food court,
coffee shops, restaurants, supermarkets and
other retail services are also available on site.
•Facilities management services, events venues
and promotional areas for advertisement
•Licensing,
Registration,
Immigration,
fitness centers
Incorporation Fees
•Registration fee: AED 3,500 for FZ-LLC
/ branch; not applicable for freelancer
•License fee: Average AED 15,000 for FZ-LLC
/ branch, AED 7,500 for freelancer
•Offices
•Business Center Offices
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278
Chapter 5
Dubai International
Academic City (DIAC)
2007
Licensing Authority
Authority
Sectors Targeted
Higher Education Providers, Academic Service
Providers, Online Universities, Education
Services Providers, Non-Academic Support
Services, Freelancers
Key Clients
Michigan State University, University of
Wollongong, Hult International Business
School, Heriott Watt University, Murdoch
University and the University of Bradford,
Cambridge University, SAE Institute
Registration fee: AED 3,500 for FZ-LLC /
License fee: AED 100,000 for Higher Education
Provider or Branch university, AED 50,000 for
Post Graduate Providers only, AED 7,500 for
freelancers
Chairman
Senior Management
`Managing Director: Ayoub Kazim
Director of Business Development: Leigh Ann
Jones-Khosla
Why UAE ?
WHY
DIAC ?
•DIAC is the world’s only Free Zone dedicated
to Higher Education, aiming to develop the
region’s talent pool and establishing the
UAE as a knowledge-based economy.
•An established higher education cluster
with 27 Academic institutions including
world-renowned universities
•DIAC currently hosts over 18,000 students
from more than 100 nationalities. Students
have access to over 300 Higher Education
programs, including Undergraduate and
Post Graduate programs, from fields such
as Engineering, IT, Media, Business, Fashion
Design, Healthcare, Mass Communications,
Media and many more.
•Centralized campus management and
partner relation approach: DIAC offers its
partner institutions a centralized way to
manage the campus facilities and provides
a dedicated department for student
services and programs that enables multiinstitutional activities and programs,
and assists in finding the right academic
programs, interships and careers.
•DIAC is committed to developing a
sustainable, environmentally responsible
campus. Recently DIAC Phase III achieved
a “Green” status and was awarded Silver
LEED certification.
•Located on an 18 million sq ft. campus with
modern facilities
•Licensing,
Registration,
Immigration,
fitness centers
room facilities
•Dedicated department for student services
and programs.
•Special student visa scheme built-in for
universities to sponsor their students while
enrolled
•Shared classrooms, computer laboratories
and event halls for multi-purpose use.
Land for lease
Offices / campus / Business Center Offices
Contact Details
Al Ruwayyah / Ruwaya off the Dubai Al Ain
Road
Tel: +971 4 3602060
Fax: +971 4 3604886
Website: www.diacedu.ae
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280
Chapter 5
Dubai Biotechnology
and Research Park
(DuBiotech)
2005
Licensing Authority
Authority
Sectors Targeted
Therapeutics, Food, Agricultural, Forestry,
Horticulture, Environment, Medical/Scientific
Devices or Equipment, Specialty Supplies,
Diagnostics and Analysis, Life Science Services,
Life Science Associations (non-profit)
Incorporation Fees
Key Clients
Pfizer, Amgen, Maquet, National Reference
Lab and Firmenich
Chairman
WHY
DuBiotech ?
•Proximity to customers and suppliers –
DuBiotech is geographically sited close
to the Middle East, Central Asia, Africa,
the Asian Subcontinent and the Eastern
Mediterranean. These regions have a
population of over 2 billion people and a
combined GDP of around US$ 7 trillion.
•Strong regulatory frame work
•Excellent networking opportunities in the
cluster
•Sustainable
and
environment
favorable
business
•Worldwide recognition of the cluster
•One-stop shop services including licensing
and visas
•Commercial, residential, educational and
recreational facilities
•Special facilities tailored for the Life
Sciences industry to support the rigorous
requirements of research and development,
manufacturing, distribution and high
added value services
•All DuBiotech buildings are classified
as LEED certified ‘green’ buildings. This
extends to the laboratory complexes,
warehousing facilities and community
services buildings. The BIO headquarter
Towers, once completed, are expected
to be one of the world’s largest ‘green’
buildings.
•Business-friendly company laws and legal
framework
Executive Director: Dr. Marco Baccanti
•One-stop–shop services
that provides
business partners with a variety of
government services , including licensing,
visa, traffic and postal services
Managing Director: Murwan Abdulazeez
•24-hour visa service
Senior Management
•Quick access to Knowledge Workers due to
fast-track immigration process
Why UAE ?
•The park enjoys a strategic location with
a world-class infrastructure and offers
services for business centers, regional
headquarters, Research & Development
(R&D)
laboratories,
biotech-related
educational and research institutions,
light manufacturers, logistic operators and
other service providers.
•DuBiotech is the ultimate business park
for life science companies to set up Middle
East operations, offering a wide range of
products ranging from office, laboratory,
pre-built to land plot for sales and
marketing, distribution, manufacturing,
after-sales services and R&D operations.
•The cluster has provisions for hotels, retail
facilities, a hospital, schools, safety and
security measures, and residential facilities
to ensure a convenient quality lifestyle
within the park.
Contact Details
Business Development Department,
between Al Khail and Emirates Road
highways in Dubai It is just 10 minutes
from Dubai International Airport and 60
minutes from Abu Dhabi, the capital of the
UAE
Tel: +971 4 3902222
Fax: +971 4 3908444
Website: www.dubiotech.com
•Cluster specific infrastructure suiting the
needs of the biotech industry
•Ability to participate in regional and global
industry and business development events
along with other partners from the cluster
•Business friendly environment
•Licensing,
Registration,
Immigration,
fitness centers
room facilities
outdoor branding banners).
•Shared laboratories and research area
.Available Business Premises
Warehouses for light manufacturing, logistics,
and showrooms Nucleotide Complex: Core
and shell commercial office and laboratory
space Business Centre: Fully fitted-out, plug
& play commercial offices
Land for lease or for sale
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282
Chapter 5
The Energy and
Environment Park
(ENPARK)
WHY
•ENPARK provides a comprehensive support
system to ensure the success of its Business
Partners.
2007
Licensing Authority
Authority
Sectors Targeted
Renewable Energy, Energy Generation,
Energy Storage, Energy Transmission and
Distribution, Energy Efficiency Equipment, Air
and Environment, Water and Waste Water,
Recycling and Solid Waste, Transportation,
Green Building, Organic Products, General
Consultancy, Regional Headquarters
• Association
Key Clients
Veolia, Averda, PTL Solar and Etap Lighting
Chairman
Senior Management
Managing Director: Murwan Abdulazeez
Commercial Dept.: Mr. Ismail Al Hammadi
Investor Relations: Mana Al Zarooni
ENPARK ?
•ENPARK provides an enabling platform for
sustainable business operations through
the integration of eco-friendly policies,
standards, education programs and
technologies, combining environmental,
social and economic elements to reflect
Dubai’s benchmark forz sustainable
development.
•Proximity to customers and suppliers –
ENPARK is geographically sited close to
the Middle East, Central Asia, Africa,
the Asian Subcontinent and the Eastern
Mediterranean. These regions have a
population of over 2 billion people and a
combined GDP of around US$ 7 trillion.
•Strong regulatory frame work
•Excellent networking opportunities in the
cluster
•Sustainable
and
environment
favorable
business
•Worldwide recognition of the cluster
•One-stop shop services including licensing
and visas
•Commercial, residential, educational and
recreational facilities
•Special facilities tailored for the Life
Sciences industry to support the rigorous
requirements of research and development,
manufacturing, distribution and high
added value services
•Business-friendly company laws and legal
framework
•One-stop–shop services
that provides
business partners with a variety of
government services , including licensing,
visa, traffic and postal services
•24-hour visa service
Why UAE ?
•Quick access to Knowledge Workers due to
fast-track immigration process
•The park enjoys a strategic location with
a world-class infrastructure and offers
services for business centers, regional
headquarters, Research & Development
(R&D)
laboratories,
biotech-related
educational and research institutions,
light manufacturers, logistic operators and
other service providers.
•ENPARK is the ultimate business park for
life science companies to set up Middle
East operations, offering a wide range of
products ranging from office, laboratory,
pre-built to land plot for sales and
marketing, distribution, manufacturing,
after-sales services and R&D operations.
•The cluster has provisions for hotels, retail
facilities, a hospital, schools, safety and
security measures, and residential facilities
to ensure a convenient quality lifestyle
within the park.
Contact Details
Investor Relations
Business Bay Area, Dubai
•Licensing,
Registration,
Immigration,
fitness centers
room facilities
outdoor branding banners).
Incorporation Fees
Registration fee: AED 3,500 for FZ-LLC / branch;
License fee: Average AED 15,000 for FZ-LLC /
AED 25,000 for all manufacturing activities
.Available Business Premises
Tel: +971 4 3613512
• Warehouse
Fax: +971 4 4447205
• Neucleotide Laboratory Complex
• Business Center Offices
Website: www.enpark.ae
• Land for sale or lease
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284
Chapter 5
Dubai HealthCare City
(DHCC)
2002
Licensing Authority
Dubai Healthcare City FZ LLC
Sectors Targeted
Conventional
Medical
Services,
Complementary and Alternative Medicine,
Medical Education and Research, Healthcare
Commercial Services, Hospitals, Diagnostic
Laboratories, Support Services
• Branch of a Foreign Company
• Branch of a UAE Company / Establishment
WHY
DHCC ?
•The world’s first healthcare free zone that is
a home of two hospitals, over 90 outpatient
clinics and diagnostic laboratories with
over 2,000 medical professionals
•Low operating costs
•State of the art facilities
•Flexible real estate design to suit the
industry
•Integrated healthcare community providing
specialized first-class medical care
•Access to network of regional healthcare
professionals
•Attractive investment opportunity and
financial return
•Increased brand exposure
• Free Zone Limited Liability Company (FZ LLC)
•Hassle-free company registration and legal
framework
Key Clients
•Fast track immigration process
American Academy of Cosmetic Surgery
Hospital, The City Hospital, Dubai Bone &
Joint Center, German Medical Center, London
Centre for Aesthetic Surgery, Magrabi
Eye Hospital, Moorfields Eye Hospital
Dubai, Nicolas and Asp University College,
AstraZeneca, Novartis, Novo Nordisk, Sanofi
Aventis, and Wyeth Pharmaceuticals – Pfizer,
Dr. Sulaiman Al Habib Medical Center
•Flexible real estate to suit different business
needs
•Specialized health care facility management
providers
•In-house,
facilities
fast-track
staff
registration
•World-class quality control for health
services
assuring
top
international
standards
Chairman
HRH Princess Haya Bint Al Hussein
Senior Management
Managing Director: Dr. Ayesha Abdullah
Executive Director:
Dr. Abdulkareem Sultan Al Olama
Contact Details
Oud Metha Road, Bur Dubai, Dubai
Telephone: +971 (04) 324 5555
Fax: +971 4 362 4775
Website: www.dhcc.ae
Why UAE ?
•On-site, one stop shop for government
services (such as visas and permits)
•Assistance with clinical services planning and
design
•Strong regulatory framework to maintain
Dubai Healthcare City’s reputation for
quality and safety
•Relationship manager to assist with any postsetup relations
•Integrated community with on-site facilities
such as restaurants, banking and minimarket
Incorporation Fees
•Parking facilities
•As a professional community, Dubai
Healthcare City also offers many value-added
services including access to a wide network
of healthcare professionals, networking and
knowledge sharing events to encourage
patient referrals
•Special interest seminars to promote
professional standards and business growth
•Core and Shell
•Average unit size: 1,500 feet2.
•Average annual rent: AED 150 AED/feet2
•Land for lease and sale
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286
Chapter 5
International
Humanitarian City
(IHC)
WHY
IHC ?
•IHC enables humanitarian organizations
through its global reach, infrastructure and
custom designed services to facilitate aid
and development efforts across the globe
2007
Licensing Authority
International Humanitarian City Authority
Sectors Targeted
Aid distribution and storage by
international
aid
organizations
community
the
and
•Branches
of
international
nonprofit
organizations and commercial companies/
subsidiaries
Incorporation Fees
Registration Fee – AED 5,000
License Fee – AED 8,000 (service license), AED
5,500 (trading license)
Key Clients
ACTED, Aga Khan Planning and Construction
Management,
Al
Basar
International
Foundation, Al-Muntada Al-Islami, All As
One, Automotive Management Services FZE,
Bukkehave Global Spareparts (BGS) FZE, Child
Foundation, Children’s Hope Foundation
Chairman
HRH Princess Haya Bint Al Hussein
Senior Management
CEO: Ms. Shaima Al Zarooni
Why UAE ?
•IHC provides nonprofit organizations,
companies,
donors,
volunteers,
governments and those striving to save lives
with a common ground for collaboration.
•IHC
offers
commercial
companies
the opportunity to operate from a
highly strategic location in a free zone
environment that is adapted to their
particular industry, while benefiting from attractive incentives and an array of valueadded services
•Exemption from tax and custom duties from
imported and re-exported aid equipment
and supplies
•A community of local and international
humanitarian nonprofits and commercial
suppliers
•A fully integrated one-stop-shop, with
access to procurers, suppliers and business
partners and fast multi-modal logistics
capabilities
•Increased visibility
opportunities
and
networking
•A platform for humanitarian information
and knowledge exchange
•A
socially
environment
responsible
operating
•Facilitated access to job seekers, volunteers
and CSR endeavors
•Customized warehousing solutions
Commercial Offices
•Facilities
Management:
security and leasing
Warehouses
Maintenance,
•Conference and meeting facilities
•Government Services
•Press Office: Publication of IHC members’
latest news on the IHC website
•IH Media watch: Online news monitoring
services, including daily e-mail alerts
•Recruitment e-Portal: Access to online CV
Database and posting Job Openings
Contact Details
Sales Department
Oud Metha Road- Dubai- UAE
•Volunteer e-Portal: Access to online
Volunteer Database and posting Volunteer
Appeals
Telephone: +971 4 3680202
•Pro Bono e-Portal: Access to online Pro Bono
Database
Website: www.ihc.ae
Fax: +971 4 3681099
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288
Chapter 5
Sharjah
Why UAE ?
T
hroughout the history, the people of
Sharjah depended on fishing, pearl
diving and trading as main sources of incomes.
These three economic activities were supported
by its busy port that has always played a vital
role connecting the trading routs between
the East, particularly India, and the west. As a
result, it has become one of the most important
ports on the lower Arabian Gulf since the
nineteenth century, turning Sharjah to be one
of the most important modern commercial
and trading centers not only in the UAE but
also in the region. The wise leadership has also
boosted the emirate’s economic performance
by adopting a diversified economic strategy
while sustaining and maintaining its cultural
heritage. Today, the key economic sectors
in the emirate are tourism, manufacturing,
trading, energy and real estate.
The tourism sector started its official takeoff in the emirate’s economic map when the
first Airport was built in Sharjah in 1932. In
addition, the natural and geographical diversity
has given Sharjah an additional advantage
to develop its tourism sector. Sharjah City,
the capital, overlooks the Arabian Gulf. The
central region of the emirate combines lush
green oases, gravel plains and rolling red
sand dunes. To the east the emirate reaches
the Gulf of Oman coast where the landscape
changes to a spectacular rocky coastline
backed by mountains. Furthermore, Sharjah
is prominent throughout the Arab world for
its commitment to art, culture and heritage.
It was named the Capital of Islamic Culture
for 2014 in recognition of its contribution to
preserving and promoting Arab culture.
These entire factors along with the
government’s promoting campaigns that
target global fairs and trade events indicate
the potential growth of the tourism sector.
In 2010, more than 1.55 million tourists
visited Sharjah, an 8% increase on 2009
performance, according to data issued by the
Sharjah Commerce and Tourism Development
Authority (SCTDA). In 2009, tourism sector
contributed around 11% of the GDP which is
considered relatively high.
Sharjah also is a manufacturing hub,
responsible for 12% of the UAE’s total
industrial production. In 2009, 19.5% of its
GDP came from the manufacturing industry.
To further boost its position in this vital sector,
the government has been executing plans
to expand its industrial base by attracting
FDIs, granting them more privileges and
constructing purposely-built industrial zones
equipped by advanced facilities and support
services. Due to these factors, Sharjah-based
international manufacturers have already
shown a growth in their performance. Sharjah
Economic Development Department recorded
a 7.1% increase in the number of new and
renewed business licenses in 2010 compared to
the previous year. Among the overall increase
in new licenses, which saw growth of 18.4%
there was solid rise in the number of industrial
permits issued, up from the 78 of 2009 to 97
in 2010.
Sharjah is also home to 5% of the UAE’s
gas reserves, which are located offshore
and in the interior desert area. Moreover, it
enjoys a steady real estate market. All these
growing sectors make Sharjah the third largest
contributor to the national GDP. In 2009, its
GDP reached USD 16.59 billion, 6.1% of the
country’s total GDP, recorded annual growth
rate of 11% over the last seven years.
In line with supporting foreign investments,
Sharjah Airport International Free Zone
(SAIF - Zone) and Hamriyah Free Zone were
established, offering a range of competitive
incentives in highly sophisticated business
centers.
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290
Chapter 5
Sharjah Free Zones
Sharjah Airport
International Free
Zone
1995
Licensing Authority
Sharjah Airport International Free Zone
Authority
Sectors Targeted
Trading, Manufacturing, Services and Aviation
Incorporation Fees
Registration fee – AED 10,000 (FZE and FZCO),
AED 5,000 (A Branch)
License Fee – AED 7,500 (Trade, Industrial and
Commercial), AED 15,000 (General Trading)
Aviation License – AED 15,000
Freight Forwarding – AED 8,500
Key Clients
Air Arabia, Sky Plan FZC, KMart Gulf, Asia
Today LTD, Zee Telefilms Int’l LTD, Aramex
Chairman
H.E. Sheikh Abdulla bin Mohammed Al Thani
Director General: Taryam Matar Taryam
Why UAE ?
WHY
SAIF Zone ?
•SAIFZ is built adjacent to the Sharjah
International Airport, a key hu b for logistics
and air cargo in the region
•Easily accessible to seaports on the Indian
Ocean (Port Khor Fakkan) and the Gulf (Port
Khalid)
•One of the oldest and largest Free Zone in the
UAE in terms of number of companies, housing
more than 4,530 companies
•SAIF-Zone offers its patrons extremely
attractive incentives such as modern premises,
equipped with the latest facilities and a secure
environment that ensures maximum returns
for the investor.
•Flexible short and long lease options for offices
and warehouses
•Licenses issued within 24 hours
•Sponsorship and visas for all staff
•Simplified procedures and competitive
structure of fee, property and management
•A strategic location in the Emirate of Sharjah,
an emirate that centers its economic plans
around the development of the industrial
sector
•SAIF-Zone is the symbol of efficient operations,
the better alternative for business ventures in
the UAE and beyond
•Temporary Storage Area
•Offices
•Container Parking Area
•Executive Desk: AED 15,000
•24 hour hotline for equipment and provision
of labor
•Executive Offices: AED 34.500
•Bunkers
•Warehouse
•Land on Lease
•One site Labor Accommodation
•Back up services provided by the Sharjah
Chamber of Commerce and Industry and the
Sharjah Expo
Contact Details
Market and Sales Department
•Post Office, Pharmacy, SAIF-Zone Medical
Clinic (FZC), Municipality Clinic, Travel
Agencies
Telephone: +9716 5570000
•Licenses issued within 24 hours
Fax: +9716 5571010 / +9716 5571131
•Sponsorship and visas for all staff
Sharjah Airport, Sharjah City
Website: www.saif-zone.com
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292
Chapter 5
Hamriyah Free Zone
WHY
Hamriyah Free Zone ?
1995
• The 2nd oldest and 2nd largest Free Zone in
the UAE in terms of number of companies,
housing more than 5000 companies from
more than 150 countries
Licensing Authority
Hamriyah Free Zone Authority
Sectors Targeted
Trading, Manufacturing, Logistics across
wide industry sectors with special focus on
seven strategic clusters comprising of oil and
gas,petrochemical,steel, construction, timber,
maritime, and perfume
• An integrated seaport that is capable of
handling petrochemical exports and cargo
containers
• Proximity to control labor accommodation
facilities
• Access to UAE and GCC markets
• No red tape or bureaucracy
•Branch of a Foreign Company
•Branch of a UAE Company / Establishment
•Free Zone Limited Liability Company (FZ-LLC)
Office: AED 17,000 – 70,000
Executive Suite office Packages
Incorporation Fees
General Trade License: AED 12,00 per year
Trade License: AED 2,750 per year
Warehouse: AED 65,000 – 110,000
Open Land: AED 30 per square meter
Commercial/industrial License: AED 3,750
General Service fee: AED 5,000
Key Clients
Unger Steel,
Petroleum
Metito,
Mamutt,
British
Senior Management
Khaled Bin Abdullah Bin Sultan Al Qasimi
Director General: Rashid Al Leem
Contact Details
Sales and Marketing Department
Hamriyah, Sharjah
Tel: +97155263333
Fax: +9716 5263555
Website: www.hfza.ae
Why UAE ?
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Chapter 5
Ajman
Why UAE ?
T
he economy of Ajman has mainly
relied on maritime (shipbuilding and
fishing) and trading sectors. The economic
performance of the emirate today does not,
however, rely on these two. Tourism, real
estate and manufacturing sectors began to
take larger portions of the emirate’s GDP.
In 1977, Ajman Chamber of Commerce and
Industry was incorporated to enhance the
emirate’s economic position and exploit its
capabilities within different sectors. The
young visionary leadership has also given
the instructions to the competent bodies
of the government to remove all obstacles
hindering business activities, paving the way
for realization of remarkable achievements on
the economic front. As a result of these efforts,
Ajman’s share in the national GDP increased by
200% since 2001, reaching USD 3.78 billion in
2009 (1.4% of total national GDP). The major
contributors were manufacturing (39.5%),
construction (14.5%) and real estate (10%).
Today ranked third among the emirates for
industrial development, Ajman houses more
than 550 plants and factories with investments
value reaching approximately USD 407.62
million in 2010. The light industry segment
makes the majority of this growing sector. The
establishment of well planned industrial areas
such as Ajman Industrial Area which has been
provided with all the services and utilities to
accommodate various industrial and business
activities, the lucrative rents of real estate and
land, and the freehold property laws were
the main grounds that manufacturers choose
to operate from Ajman. It is important to
mention that Ajman has the biggest group of
textile industries in the UAE.
Ajman’s vision to become a realty destination
came as a result of the uprising prices of
properties in the neighboring emirates and its
central position to the other cities in the UAE.
Thus, it passed property freehold legislations
in 2004 and commenced the development
of mega multi-purpose projects, calling the
attentions of local residents and international
investors. Since then, the real estate and
construction sectors have been steadily rising,
leading other sectors as well to flourish in the
emirate. Ajman City now has the third largest
property market in the UAE. Construction
and real estate contributed more than 24%
in the emirate’s GDP in 2009, according to the
National Bureau of Statistics.
Boosted by the growth witnessed in the
multi-purpose built developments such as
Ajman Marina and the One, tourists were
attracted to come to Ajman. In addition,
Ajman Festival has a great role in flourishing
the trade movement and tourism. The diversity
of presentations and programs of the festival
and its suitable prices for all have led to the
attraction of a great number of visitors from
inside and outside the Emirates. The opening
of Ajman’s China Mall in 2010 attracted
foreign investments as well as tourists from
around the world.
In addition to the growing different sectors
especially manufacturing and real estate, the
establishment of Ajman Free Zone in adjacent
to Ajman seaport which houses the greatest
ship maintenance workshop has also driven
the Emirate’s economy in recent years. Since
it provides many incentives and advantages,
more than 3000 companies are now operating
from the free zone.
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Chapter 5
Ajman Free Zone
Ajman Free Zone
1998
Licensing Authority
Ajman Free Zone Authority
Sectors Targeted
Trading, Logistics, Services and Manufacturing
Incorporation Fees
License Fee (Annual) – AED 3,900 (Trading),
AED 9,100 (Industrial), AED 6500 (Professional)
Key Clients
Meridian VAT Reclaim, Abdolasons Trading,
Hanifa Motors, Ranco Impex, United Bottling
Company
Chairman
Ahmed Bin Humiad Al Nuaimi
Senior Management
Director General:
Mahmoud Khalil Al Hashemi
Head of Investor Relations:
Obaid Al Matrooshi
WHY
Ajman Free Zone ?
•The only downtown Free Zone that is
strategically located in the UAE i.e. close to
major commercial cities providing an excellent
access to the other Emirates (12 kilometers
away from Dubai and 2 kilometer away from
Sharjah)
•The liberal economic climate in Ajman has
been specifically designed to welcome
foreign business and investment to encourage
production, provide incentive for trade,
develop international commerce, and above all
promote industrial activity.
•20 years land contract is renewable for another
20 years guaranteeing 40 years tax free
operations
•100% Business Ownership
•Competitive pricing on premises
•No hidden fees, no hidden charges and cheap
energy
•The most economical wage structure and easy
access to vast work force
•Total exemption from all import and export
duties and total elimination of all service
charges and hidden fees
•Exceptionally low handling charges
•Lowest lease prices
•World class infrastructure
•Single Window
Immigration)
Clearances
(Licensing,
Contact Details
Investor Relations Department
Rashid Bin Saeed Al Maktoum Street,
Ajman, Opposite to Ajman Port,
Al Bustan, Ajman
Telephone: +971 6 7011555
Fax: +971 6 7429222
Why UAE ?
•Business Facilities (Conference Room and
Business meeting rooms)
•Electronic Office Centre – AED 18,000
annually
•24 hours Security Services
•Executive Offices – AED 25,000 annually
•Bank services
•Warehouses – AED 300 per square meter
annually
•Postal services
•Access to Ajman Port Facilities
•Open Lands – AED 20 per square meter
annually
•Smart Office – AED 14,800 annually
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298
Chapter 5
Umm Al Quwain
Why UAE ?
S
imilar to the other emirates that are
located on the coast of the Arabian Gulf,
Umm Al Quwain, one of the smallest emirates
in the UAE, has always relied on agriculture,
livestock and fishing as the key sources of
earnings since the ancient times. This sector is
still vital, contributing about 10% of its GDP
yearly. However, the accumulated expansion
of the national economy has significantly
contributed to the rise of other sectors not
only in Umm Al Quwain but also in all emirates.
The real estate, construction, manufacturing
and tourism sectors were the main sectors
that started to appear more on the economic
sphere of Umm Al Quwain.
Despite its tiny area and lack of oil and gas
reserves, Umm Al Qaiwain contributed USD 63
million to the national GDP in 2009, entirely
depending on the non oil sectors. The main
economic contributors are real estate and
business services sector with 19.4%, transport,
communication and storage (12.53%), trading
(11.24%) manufacturing industries (8.99%)
and government services sector (17.72%).
In 2009, the manufacturing sector
contributed USD 77.83 million to the emirate’s
GDP. The cement, light petrochemicals
products like rubber and plastics and
aluminum industries are making the largest
portions of this steadily growing sector, a 44%
increase since 2001.
According to the latest data released by
the economic department of Umm Al Quwain,
the number of business licenses increased by
84% in 2008 comparing to 2007 due to the
economic and population growth the emirate
has experienced. Using its strategic location
and natural capacities, the emirate has been
focusing to strongly facilitate businesses
through e-services and granting privileges,
thus attracting local and foreign investments.
Umm Al Quwain through its Strategy
2011-2013 specifies real estate and tourism as
economic directions of the emirate. Future
economic growth, as indicated by the Strategy,
is based on the development of antiquities
and heritage, infrastructure, and public sector.
Developing multi-use projects like Al Salam
City and Umm Al Quwain Marina are drawing
more FDIs and tourists traffic.
The rich historical and natural heritage of
the emirate that includes plenty of monuments,
natural reserves and islands are also capable of
improving the tourism development. Besides
preserving the natural and cultural heritage,
the government of Umm Al Quwain initiated
many tourism developments such as the
Dreamland Aqua Park, the largest Aqua Park
in the UAE, and supported touristic activities
such as sky diving. These initiatives have played
a role in terms of attracting tourists not only
from the UAE but also from the region. Today, a
UAE visitor does not leave the country without
paying Umm Al Quwain a visit.
Although the traditional occupations of
fishing and date cultivation are still important
in Umm Al Quwain, a mariculture research
centre, port and economic free zone have
boosted investment and business in the
emirate. Umm Al Quwain was among the
first emirates that established a free zone,
realizing the important role of free zone on
the development of the local economy. In
1989, Ahmed bin Rashid Free Zone launched
in adjacent to the active port of the emirate,
allowing foreign business ownership.
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Chapter 5
Umm Al Quwain Free Zone
Ahmed bin Rashid
Free Zone
WHY
•Easy connectivity to international markets
1989
Licensing Authority
Ahmed Bin Rashid Port and Free Zone
Authority
Sectors Targeted
Manufacturing and Trading
•A Branch of a foreign company
Incorporation Fees
License Fee (Annual) – AED 3,900 (Trading),
AED 9,100 (Industrial), AED 6500 (Professional)
Ahmed bin Rashid Free Zone ?
•845 meters of quay wall with 400 meters
capable of handling ocean-going vessels, and
118,000 square meters of land reserved for
light Industrial development. It also provides
a comprehensive administrative and logistic
support to the tenant.
•A one-stop-shop for all government related
and procurement related activities
•State of the art communications, infrastructure
and networks
•Excellent logistics management and cargo
handling services
•Standard services of water, electricity,
communications and labor accommodation
are all available.
Key Clients
Meridian VAT Reclaim, Abdolasons Trading,
Hanifa Motors, Ranco Impex, United Bottling
Company
Incorporation Fees
License Fee - AED 2,000 (Industrial License),AED
5,000(General Trading License), AED 5,000
(Management & Consultancy)
Contact Details
Office Units – USD 6,812 per annum
Sales Department
Open Land – USD 5.45 per square meter
Umm Al Quwain - Adjacent to Ahmed bin
Rashid Port
Telephone: +971 06 7655882
Fax: +971 06 7651552
Why UAE ?
301
302
Chapter 5
Ras Al Khaimah
Why UAE ?
L
ocated on the coast of Arabian Gulf, at
the crossroad of the east and the west,
the emirate of Ras Al Khaimah was among
the first towns that best utilized its strategic
location throughout the history. Not only the
strategic location that pulled international
investors to choose RAK but also its excellent
infrastructure, strong government support
towards the private sector, and not to mention
its unmatched natural beauty. Ras Al Khaimah
has become a growth-driven emirate with an
increased focus on manufacturing, services,
real estate, construction and tourism.
An economic diversification strategy
was adopted by RAK government, primarily
focusing on industry, trade, tourism and
real estate. International investors were
attracted by the business-friendly policies
and its strategic location. Recently, it was
rated the best investment destination by the
FDI Magazine, Financial Times, and London.
Ras Al Khaimah has been witnessing an
outstanding economic growth due to its
diversification strategy. In 2009, USD 4.30
billion was contributed to the national GDP
by Ras Al Khaimah. Despite the global crunch,
the financial sector in RAK has shown strong
returns, indicating the wise management of
its visionary leadership. The main economic
growing sectors in the emirate include trading
and repair services, mining and quarrying,
real estate and business services, agriculture,
livestock and fishing and manufacturing.
Dominated by three main industries, cement,
ceramics and pharmaceuticals, the industrial
sector in RAK has been one of the pioneering
sectors in the UAE. RAK is the largest cement
producer in the region, the largest medicine
producer in the UAE and one of the largest
ceramics producers in the world. In order to
best organize and support the industrial sector,
Al Hamra Industrial Park was established in
order to provide state-of-the-art facilities to
this vital sector.
RAK is planning to increase the contribution
of the tourism and real estate sectors. Massive
construction projects such as Mangroves Island
and Mina Al Arab are taking place in order to
cope with growing population. By utilizing its
rich natural capabilities of beautiful beaches
and mountains, RAK is aiming to attract
2.5 million tourists by 2012. To do so, it aims
to increase the number of its hotels and
apartments. The tourism sector was boosted
by creating a dedicated Tourism Development
Authority in 2011.
The establishment of economic and free
zones has been a target of the government.
RAK Free Trade Zone and RAKIA Zone are
among the most growing zones in the UAE.
RAK FTZ is currently housing more than 5,000
active companies, reaping the advantages and
incentives that are offered by the business hub.
RAKIA free zone has also shown a good growth.
It licensed about 800 new companies in the
first half of 2011, a 31% increase comparing to
the same period of last year.
According to Oxford Business Group, small
and medium-sized enterprises (SMEs) have
been playing a growing role in RAK’s economy,
benefiting from the advantages offered by
the emirate and its free zones. About 95% of
the registered business entities in RAKIA up to
2010 were SMEs.
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Chapter 5
Ras Al Khaimah Free Zones
Ras Al Khaimah Free
Trade Zone (RAKFTZ)
WHY
•One of the most cost effective free zones
in the region that specifically targets small
and medium businesses aiming to seize the
opportunities in MENA, Asia and beyond
2000
Licensing Authority
RAK Free Trade Zone Authority
Sectors Targeted
Services, Industry, Aviation, Technology,
Media and Education
• A branch of a foreign company
Incorporation Fees
License Fee (annual) – AED 3,650
(Commercial), AED 5,000 (Industrial),
AED-7,500 (Professional), AED 15,000 (General
Trading)
Registration Fee – AED 7,000
Services Fee (annual) – AED 1,200
Key Clients
Oranci Steel, Brochot, Micro Cdp, Ramjet,
Rak-German, Dolphin International, Birla
Institute of Technology International Centre
(BITIC), Western International College–
University of Bolton, Royal College of Applied
Science and Technology, and Ras Al Khaimah
Medical and Health Science University
Senior Management
Faisal Bin Saqr Al Qasimi
CEO: Oussama El Omari
Deputy Director General:
Maryam Al Murshedi
Why UAE ?
RAKFTZ ?
•A fast and flexible registration process
allowing businesses to start operations
with a minimal requirement
•Facilities and virtual offices in different
emirates (Dubai and Abu Dhabi) allowing
smooth and productive business activities
for the Free Trade Zone clients
•Ability to register off-shore companies for
non-resident entrepreneurs
•An established education, technology and
media cluster environment
•More than 5000 SMEs from 106 countries
•RAK
FTZ
provides
business
and
entrepreneurs to enter the Middle East,
and with the UAE gateway between
Europe, Asia and Africa, investors have
direct access to emerging markets.
•Open door economic development policies
that gained the confidence of investors
from across the globe
•100% tax free and 100% foreign ownership
•Customized investment packages
Services and Facilities
•Affordable value-added services can be
selected either during the initial startup phase, or at a later date which include
Insurance, Creative Design, Advertising,
Procurement,
Event
Management,
Recruitment and Training
•a variety of affordable courses in Training
delivery, Training materials/books, Library,
University placement services, ICDL, TOEFL
iBT, Microsoft Prometric testing, Event/
Program
organization,
Venue
rental,
Training resource rental and Corporate
needs assessments
•Offices spaces, warehouses and land
required to setup a manufacturing unit
•Issue of visas for investors and staff
•Availability
of
accommodation
executive
and
staff
•Facilitation in obtaining services from
utilities such power and water supply, gas,
telephone connections
• Standard Offices – AED 31,000 per annum
• Executive Offices – AED 26,00 per annum
• Warehouse – AED 200 per square meter per
annum
• Temporary Warehouses – AED 2,000 for 15
days
• Land for Development – AED 50 per square
meter
• Virtual offices
Contact Details
Sales Department
Al Nakheel Area, Ras Al Khaimah with
facilities in Al Hamra Area and virtual
offices in Dubai and Abu Dhabi
Tel: +971 7 2041111, Fax: + 971 7 2077120
Website: www.rakftz.com
•Staff Accommodation
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Chapter 5
Rakia Industrial Park
WHY
Rakia Industrial Park ?
2005
Licensing Authority
RAKIA Industrial Park
RAK Investment Authority (RAKIA)
Sectors Targeted
Plastics,
glass
and
rubber
products
manufacturing, Fabricated metal product
manufacturing,
Non-metallic
mineral
product manufacturing, Automobile and
Auto components, Chemical products, Food
processing
• Industrial Licenses
• Trading Licenses
• Commercial Licenses
• Consulting/ Service Licenses
• Media License
Key Clients
Arc International Middle East LLC, Ashok
Leyland (UAE) LLC, Duscholux Emirates,
Guardian Glass, JBF RAK LLC, Mahindra
Armoured Vehicles FZ LLC, Mitsui Japan,
Mabani Steel LLC, Middle East Specialized
Cables (MESC) LLC, Becker Industrial Coatings
LLC
Chairman
Sheikh Saud Bin Saqr Al Qasimi
Senior Management
•Ease of setting up a business due to
availability of a single window clearance
for all matters relating to establishment
of the company, which includes licensing,
office/ land lease and processing of
investor as well as employee visas.
•Low setup costs due to competitive lease
rentals, with industrial land available for
as low as AED 10/ sqm.
•Rapid company formation, with licenses
as well as office/ land lease agreements
processed within 2 working days
•Assured supply of electricity and water:
RAKIA has installed dedicated power
plants in the industrial parks at Al Hamra
and Al Ghail as well as a desalinization
plant.
•Land, air and sea connectivity from RAK to
major markets in the UAE and Middle East
•Access to finance from Banks, as RAKIA
has Memoranda of Understanding in place
with HSBC and Bank of Baroda, the two
leading banks in the emirate.
•Developed
networks
infrastructure
and
road
•Ease of recruiting manpower
Contact Details
Opposite Al Hamra Mall, Near Exit 119 on
Emirates Road,
Ras Al Khaimah
Telephone: +971 7 206 86 66
CEO: Dr. Khater Massaad
Fax: +971 7 243 44 64
Executive Director: Serge Guillaume
Website: www.rak-ia.com
Why UAE ?
•Offices spaces, warehouses and land
required to setup a manufacturing unit.
• Commercial Offices
•Issue of visas for investors and staff
• Warehouses
•Availability
of
accommodation
executive
and
staff
• Desk Space
• Land for Lease industrial Facilities
•Facilitation in obtaining services from
utilities such power and water supply, gas,
telephone connections
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308
Chapter 5
Fujairah
Why UAE ?
F
ujairah, the mountainous emirate, is
the only emirate located in the Eastern
Coastline of the UAE along the Gulf of Oman.
Its economic performance has witnessed
a remarkable growth due to its perfect
utilization of its strategic location and natural
and heritage capabilities.
Its strategic location as a gateway to the
major shipping routes of the world has made
it a preferable choice over its sister emirates
in the shipping industry. Major local and
international companies have been benefiting
from this geographic location. International
Petroleum Investment Company (IPIC), an
investment vehicle of Abu Dhabi, ordered
the construction of a 360-kilometer oil export
pipeline to transport up to 1.5 million barrels a
day of crude to Fujairah in order to reduce oil
transportation through the Strait of Hormuz,
the narrow waterway through which Arabian
Gulf oil producers ship their crude exports.
Even though it is currently one of the top
three bunkering destinations in the world,
this mega project has caused a positive stir
among international attentions, indicating
the potential growth the emirate enjoys.
The tourism sector is one of the most
important targets of the government since
Fujairah has historical monuments . Tourism
programs including family entertainment,
cultural tourism and marine tourism are the key
tourism segments in the emirate. As stated by
the local officials, the current number of rooms
is not enough to accommodate the growing
numbers of the visitors, inviting foreign and
local investors to take advantage of this rising
sector in the emirate. More than 50 touristic
ships visit Fujairah each year. Fujairah Tourism
Bureau was established in 2009 to create a
comprehensive tourism industry by stimulating
different tourism activities and creating a
business-friendly regulatory environment.
Its soil is fertile and irrigated by rainwater
from the Hajar Mountains, making it ideal
for farming. As a strategic initiative to best
utilize the valleys’ water in the emirate,
Fujairah Municipality is giving the order to
construct 16 dams and one aquatic channel in
2011. Fujairah is home to the world’s largest
livestock shipping companies, which use its
port as a holding station for sheep and cattle
destined for the Arabian Peninsula. Other local
industries include mining and stone crushing,
which have benefited from the recent boom in
construction in Dubai and Abu Dhabi.
Fujairah’s government has implemented
several strategic initiatives to stimulate the
economic performance of the emirate. It plays
a supervisory role in issuing legislation, which
organizes the functioning of the various
economic sectors while causing no hindrance
to the business activities. The Fujairah Free
Zone, adjacent to the Port of Fujairah, was
established to promote foreign investment in
banking, trade, manufacturing and logistics.
The commercial activity since then has seen a
remarkable growth not only in the free zone
but also in the emirate. In the first half of 2011,
Fujairah Municipality has issued 171 economic
licenses and renewed 1,173 licenses. In 2009,
Fujairah’s contribution toward the national GDP
has reached USD 2.54 billion in 2009. However,
its share is expected to rise due to the growing
sectors especially trading and tourism.
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Chapter 5
Fujairah Free Zones
Fujairah Free Zone
WHY
Fujairah Free Zone ?
1987
Authority
Fujairah Free Zone Authority
•One of a few free zones located on the
Gulf of Oman providing direct access to
the Indian Ocean
•Strategically located on the world’s most
busy routes for oil transportation with
state-of-the-art bunkering facilities
Trading, export and import, logistics,
•Adjacent to Fujairah Port, one among
the three most significant bunkering
destinations in the world
manufacturing and warehousing
•Liberal commercial policies
Sectors Targeted
• Branch of a Foreign Company
• Free Zone Company (FZCO)
Incorporation Fees
Chamber of Commerce (p.a.): AED 3,020
Commercial License:
Formation Fee (for FZCO): AED 5,000
Free Zone Utilities: AED 500 (one time charge)
Key Clients
•Within a maximum of 48 hours after
application’s submission, the license will
be granted
•Exemption of customs duties on imports
of all commodities and finished products
for the purpose of export and re-export
outside the UAE. Clients need not pay
duties on factory machinery or raw
material used in production
•Availability of establishing an offshore
business
•Multi-access to neighboring and global
markets by land, sea and air.
•Variety of investment fields.
Enoc Bunkering, Microsol International,
•Investor-oriented policies
Eagean, Atlantic Marina
•Efficient and cost-effective investment
facilitation
Chairman
Saif Bin Hamed Al Sharqi
•Full investment security
•Served by Fujairah Port and the Fujairah
Senior Management
Director General: Sharief Habib Al Awadhi
Managing Director: Muhamad Natafji
Contact Details
Adjacent to Fujairah port, Fujairah
Tel. : +9719 2228000
Fax : +9719 2228888
E-mail : [email protected]
Website : www.fujairahfreezone.com
Why UAE ?
•Prompt assistance in obtaining service
from related Federal Ministries with regard
to driving license, registration of cars,
notarization of legal documents, entry
permits, residence visas, transit and visit
visas for investors and employees
Pre-built manufacturing unit:
• AED 220 per square meter
• Warehouse: AED 220 per square meter
• Virtual office: AED 12,000 annually
• Open land: AED 12 per square meter
•Recruitment services for personnel at all
levels
311
The United Arab Emirates An Accommodating Legal Environment
Chapter 6
An Accommodating
Legal Environment
“
Toned with international recognized standards and
customized to derive from the local enriched culture and
tradition, the legal business framework of the UAE forms a
very unique system that is compelling to accommodate and
facilitate all types of business activities.
“
314
Chapter 6
the said Provisional Constitution came into
effect, introducing the current Constitution.
O
ne of the key pillars to the UAE being
a pulling and attractive market for
international trade and investment is the
accommodating and business friendly legal
environment. This fact supported by the
policies of transparency and good governance
keenly overseen by the state organs, sets the
UAE aside from many of its peer countries in
the surrounding region.
The development of the legal framework
regulating business in the UAE has gone a
long way in the path to match the highest
international standards in many areas.
Specialized and well-drafted legislations have
made the UAE a first in the region in many
areas.
The Constitution
The first UAE constitutional document was
the Provisional Constitution which was passed
in July 1971. Later, in 1996, a law amending
Why UAE ?
Just like other modern states, the UAE
Constitution serves as the wide legislative
umbrella that supersedes over and orchestrates
the different organs of the state in terms of
roles and responsibilities, at both federal and
local levels.
It also sets and defines the general guidelines
of governance and the constitutional relation
between the seven member Emirates, as well
as Freedoms, rights and public duties; the
fundamental social and economic basis of the
union, security and armed forces, among other
typical constitutional issues.
Legislative Authorities
A legislative body; ‘the Supreme Council’
was formed by the Constitution and given
the authority to pass federal laws; mostly
presented by the National Assembly (the
Parliament) or the Federal Council of Ministers.
In addition, the individual Emirates have a
right under the constitution to issue decrees
and regulations concerning their internal
matters.
Existing local courts (Dubai and Ras Al Khaima)
apply the federal laws in addition to the local
legislation that is laid down by the concerned
local authority. These courts follow the same
system as the federal courts; allowing three
stages of litigation.
Characteristics of the
Legal System
The UAE is considered to belong to the
family of the states which adopt the Civil Law
system (Latin) that represents, together with
the common law, the main systems found in
today’s modern world.
Judicial Authorities
The Constitution of the UAE assigns a well
defined scope of judicial authorities to the
federal court system, which is divided into
three levels of litigation: the Court of First
Instance, the Court of Appeal, and the Federal
Supreme Court.
Courts are divided into the following
sections:
Civil Courts: with jurisdiction over all civil
issues e.g. disputes arising from commercial
transactions, property related disputes, and
recovery of debts
Criminal Courts: with jurisdiction over
criminal matters e.g. theft, assault.
Shari’a Courts: concerned with personal
status and family laws matters e.g.
inheritance, marriage and divorce.
The flexible federal model adopted in
the structure of the union of the Emirates is
well reflected in the Constitution, as it allows
the member Emirates to have their own
legislations and judiciary.
Although
this
license
could
have
represented a window for a contradiction
between the federal and local authorities;
this was cautiously and effectively avoided
throughout the walk of the legal development
that the individual Emirates were undergoing.
In fact, the risk factor highlighted above
was turned into an advantage with the
positive complementary role that the existing
local courts have been playing, in support of
the federal judiciary.
The Egyptian law, which has its basic source
in the French law, has an obvious influence
on UAE legal system. Also, the Islamic Shari’a
is normally another component of the UAE’s
legal system. Shari’a is not a codified law, but
an Islamic jurisprudence consisting of many
schools of thought. In the presence of a
written code or legislation, there is no room
for applying Shari’a principals.
On the other hand, provisions of
international treaties to which the UAE is a
party are strictly applied by the courts. It is
important to state here that a set of factors
have contributed in creating a unique school
of application of the Civil Law System.
The UAE, being the attractive regional
and international hub that, it is continuing
to represent a desirable market for highly
qualified legal professionals from various Arab
countries as well as the west.
The positive impact of this fact can be easily
seen in the evident capability of members of
the Judiciary seated in the UAE different courts,
as well as the strong presence of the most
prominent international law firms; especially
those originated in the UK and the US.
This diversified legal environment has
helped in enriching the arena of legal
interpretation and jurisprudence, providing a
chance for continuous improvement.
Within this context, it is also to be
highlighted that the responsive attitude
and mentality tended to be adopted by the
legislative authorities and the judges has
also helped to lean the restricted, sometimes
hindering characteristics of the Civil Law
System as applied in other jurisdictions.
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Chapter 6
Civil Litigation Process
Litigation proceedings typically start by
the submission of the defendant’s pleading
(memorandum) explaining his case, together
will documents supporting his the claim. For
submissions to be processed and considered as
a case, certain fees, depending on the value
and nature of claim, are to be paid.
Thereafter, the court serves a notice to the
defendant(s) including the plaintiff’s name,
and the time scheduled for the first hearing, on
which (or at a later time decided by the court)
defendant would respond by submitting his
defense pleading.
Once litigants have exchanged submissions,
the court sets a date to deliver its judgment.
A party who is not happy with the outcome
of the proceeding may refer the case to the
court of appeal, after fulfilling the procedural
requirements.
It is a common practice by the UAE courts to
refer issues involving technical knowledge to
experts, with a mandate to study the parties
claims and submit a report. Hearings are
conducted in Arabic language, which is the
official language of litigation.
Arbitration
In addition to the Judicial system, the UAE
has shown a lot of respect to parties’ decision
to resort to ADR methods.
Currently, the legal community in the
UAE awaits the issuance of the new federal
arbitration law, which is expected to complete
the legal infrastructure of commercial
arbitration.
Till the new law is fully operative, the issue
of arbitration remains to be governed by
the Civil Procedure Law of 1992 (“CPL”). Said
law deals on different sections: about the
framework of arbitration, the enforcement of
foreign judgments and the relevant procedural
aspects.
Since 1982, The UAE has been a member
of the Convention on the Settlement of
Investment Disputes between States &
Nationals of Other States (ICSID). Also, it has
in November 2006 formally acceded to the
New York Convention on the Recognition and
Enforcement of Foreign Arbitral Awards of
1958.
In line with the rapid growth in the number
of arbitration cases taking place in the UAE, the
presence of arbitration centers have witnessed
a similar progress. Currently, the list includes:
The Dubai International Arbitration Centre
The DIFC-LCIA Arbitration Centre
The Abu Dhabi Conciliation and Arbitration
Centre
The Sharjah International
Arbitration Centre
Ras
Al-Khaimah
Arbitration Center
Why UAE ?
Commercial
Commercial
and
Legal Environment in
Free Zones Vs. Inland
For most companies incorporated outside
the free zones, no restrictions on the
repatriation of capital and profits and freedom
from currency restrictions and import duties.
The UAE accommodates a large number of
free zones, which are partially exempted from
the application of the UAE federal and local
laws. This exemption is particularly relevant to
areas of business set-up formalities, tenancy
and labor relations.
The most advanced step in the direction
of diversifying the legal environment in the
UAE was the establishment of the Dubai
International Financial Centre in Dubai (DIFC).
The rationale behind that is to allow free
zones a wider span of liberty in order to attract
foreign investors. One of the most appealing
features that most free zones make available
is the acceptance of 100% foreign ownership
of businesses, compared to 49 per cent in the
UAE inland.
DIFC is a world class financial centre that has
its own laws which are heavily influenced by
the common law system; courts and arbitration
centre. The legal infrastructure available in
the DIFC is considered to be matching the best
international practices adopted in the major
financial centres.
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Chapter 6
Legal Topics Relevant to
doing Business in the UAE
Commercial Transaction
In the early 1990s, when the world started
to look at the UAE as a potential major player
in the regional market, the legislature has
positively responded to the pressing need
for a separate law to govern the commercial
activities. Before that, such activities were
only regulated by the Civil Transactions Law
(Civil Code).
This development was a landmark in the
advancement of legal literature and practice
in the area of business laws. It actually
had a considerable influence on the legal
environment that accommodated the UAE
boom which started in the second half of the
1990s.
The
Commercial
Transactions
Law
(CTL) defines the scope of activities that
are considered as commercial, and then
deals with a wide array of relevant issues,
such as trade name (goodwill); unfair
Why UAE ?
competition; mortgage and international
sale of goods. Additionally, CTL places the
basic concepts and definitions for commercial
activities such as brokerage, commercial
agency and transportation by different means.
It extends also to cover areas of banking
activities; commercial papers and bankruptcy.
Definition of ‘Trader’
Broadly, a trader is every person who works
in his own name and for his own account in
commercial activities and has the proper
qualification when taking on such activities
as his occupation. This definition expands
to include any company which undertakes
a commercial activity or has adopted one of
the legal forms defined by the Commercial
Companies Law, even if such an activity
whereof civil nature.
Commercial activities were defined by the
law as those activities which are carried out
by traders in the normal course of their trade
affairs. That includes those activities carried
out by a person, though not a trader, with the
intent of realizing profit. However, certain
activities were specifically defined by the law
as commercial whether by their nature or
when practiced as profession (please refer to
tables below).
Commercial Activities (By Nature)
The purchase / hiring of commodities and other material and non-material movables with
the intention of leasing out/selling them at a profit, whether in the same condition or after
processing or manufacturing them.
The banking, exchange, stock markets and investment companies operations, trust funds,
financial establishments and all kinds of other financial brokerage operations.
All kinds of transactions related to commercial papers, irrespective of the capacity of the
concerned persons therein or the nature of the transactions for which such operations are
carried out.
All kinds of sea and air navigation activities, including construction, sale, purchase, chartering
or taking on charter, repair or maintenance of vessels and aircrafts, as well as sea and air
shipment and carriage. b. The sale and purchase of vessel and aircraft supplies, tools and
materials and supplies thereof; loading and unloading activities; maritime and air loans;
employment contracts for commercial vessel and aircraft captains and pilots.
Formation of companies, current accounts, all kinds of insurances with the exception of the
cooperative insurance.
Public auction sale premises, hotels, restaurants, movie halls, theaters, play grounds and
amusement centers activities.
Publication of newspapers and magazines with the intent of making profit through the
publishing of advertisements, news and articles, post, telegraph and telephone activities; and
broadcasting, television, recording and photography studios activities.
Water, electricity and gas distribution activities, and the activities of public warehouses and
mortgages on property deposited therein.
Commercial Activities (By Profession)
Water, electricity and gas distribution activities, and the activities of public warehouses and
mortgages on property deposited therein.
Brokerage, commercial agency, commission agency, commercial representation, Supply
contracts, purchase and sale of lands or real-estates with the intent of making profit by selling
there in their original condition or after transforming or dividing
Land transport, real estate activities at times when the Contractor undertakes to supply the
materials or the workers.
Industry; and the income from extraction industries of natural resources.
Tourism, travel, export, import and customs clearing activities, as well as the activities of
services and recruitment offices.
Printing, publishing, photography, recording and advertising activities.
Special Commercial Transactions
Commercial Transactions Law puts clear
regulations to organize certain types of
commercial transactions. That includes public
auctions, sale of goods by installments, sale of
goods at reduced price usually conducted by
chain and department stores.
The spirit and view in which the law deals
with these transactions, is very balanced, as it
considers giving the public authority a room
to supervise the market, without jeopardizing
the freedom of trade nor the duty to protect
the public.
International Sale of Goods
The law includes a chapter that adopts a set
of frequently used and predefined forms of
commercial terms (incoterms) used to identify
responsibilities with regards to the costs
associated with sale of goods (transportation,
insurance etc...).
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Chapter 6
The mortgagor shall have priority right to
collect his debt- principal, interests and
expenses incurred in his claim of it - from the
price resulting from the sale.
Commercial Mortgage
CTL defines the special provisions
pertinent to commercial mortgage, where
a party surrenders the possession of a
movable property to another, in security of a
commercial debt.
Once the mortgaged item passes to the
custody of the mortgagor or such other
agreed upon third part, then the mortgagor
is bound to take all the necessary measures
to safeguard the mortgaged article and
undertaken maintenance thereof.
Where the mortgagee fails to pay on the
date of maturity of the debt secured by the
mortgage, the mortgagor may, after the
lapse of seven days from the date of service of
notice on the debtor to pay, submit a petition
to the Court to the effect of authorizing him
to sell the mortgaged item. The petition shall
be looked into promptly and without delay
and the Court shall determine the mode of
payment.
Brokerage and Commercial
Representation
As one of the very common activities in the
world of trade, brokerage contracts whereby
a broker undertakes to another person to
look for and mediate in the negotiations with
a second party in order to execute a specific
contract in consideration is also covered by the
law. This covers a great deal of potential areas
of dispute, such as the broker’s scope and
limits of responsibility, and the time in which
he is entitled to his remuneration.
Carriage
The law does apply on dealings relevant
to all types of carriage with the exception of
carriage by sea; a domain that is covered in
detail by the provisions of the UAE Maritime
Law.
Good to Know
When you wish to transport goods that, owing to their nature, need special preparations
(packing or wrapping), you shall have to take such precautions as would protect the goods
from perishing or being damaged and would not expose other persons or goods carried with it
to injury or damage respectively.
The carrier’s liability shall cover his acts and those of his subordinates (employees) when such
acts are committed by them in the course of rendering their services. All persons employed
by the carrier for the performance of his obligations under the carriage contract shall be
considered as his subordinates.
The carrier shall be responsible for the safety of the goods during the performance of the
carriage contract.
No persons other than a U.A.E. nationals may practice trade in the, unless he has one or more
U.A.E. partners according to the conditions and within the limits stipulated by the Commercial
Companies Law.
Professionals (e.g. engineering consultant cannot import building materials) may not practice
import and export activities.
As a trader, you would be under a legal obligation to keep correct and orderly books of accounts
of your business.
+ UAE law recognize the use of software to keep record
+UAE laws recognize lenders’ right to claim for interest over commercial loans with
a cap of 12%.
Why UAE ?
Commercial Agencies
Commercial activities like distribution of
goods and services are usually conducted by
appointed local agents. Such activities often
introduce certain challenges that require
special attention by the authorities in charge
of legal regulation in any given country. The
UAE legislature has responded to this fact by
issuing the federal Commercial Agencies Law,
1981 (“COML”), which has been subject to
several updates, the latest of which was issued
in 2010.
COML defines a commercial agency as:
“The representation of a Principal
by an Agent on the distribution, sale offer
or presentation of commodities or services
within the UAE”
Features of Commercial Agencies
under COML:
Hereunder is a brief overview of some of the
important features of commercial agencies
under COML:
For a local agent to be legally recognized, he
must be either a UAE national or a company
wholly owned by UAE nationals.
All commercial agencies must be registered
at the Ministry of Economy.
Principal-Agent relationship must be
exclusive in relation to territory or to a specific
product and foreign principals may appoint
a sole agent to be their representative in the
UAE, or appoint several agencies in any or
each of the emirates.
A commercial agent is entitled to receive
commissions on sales activities in the
designated areas, no matter whether such
sales are made by or through the agent.
Commercial Agency Committee:
Before resorting to competent courts,
disputes arising between principals and
commercial agents are to be brought before
the /commercial Agency Committee, of
the MOC The Committee’s decision can be
challenged before a competent court within
30 days of the date of the Committee’s
decision, otherwise, the Committee’s decision
shall be deemed final.
Termination:
Provisions of COML relevant to terminating
a commercial agency have been subject of
several amendments. Currently, for a foreign
principal to terminate or refuse to renew
an agency, it is required to show a material
reason justifying its termination or nonrenewal, e.g. failure to meet sales target.
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Chapter 6
Commercial Companies
All matters relevant to commercial
companies, starting from formation till
winding-up are regulated across the seven
Emirates by the provisions of the Commercial
Companies Law, 1984 (CCL) as amended.
Although the CCL is applicable on the federal
level, individual Emirates has the powers
to issue local supplementary regulations.
Orchestrated by the federal Ministry of
Economy, Local authorities are also entitled to
oversee and regulate the formalities relevant
to companies within the respective Emirate,
including setting-up, transfer of shares, and
winding-up.
Nationality and Corporate
Identity
A company registered under the CCL is
considered to be domiciled in the UAE and
have its nationality. However, this would
not necessarily entitle such a company to
privileges reserved only to U.A.E nationals,
such as purchase of immovable property
outside permitted zones, and being given the
right to have a registered commercial agency.
Except for joint-ventures, companies
shall attain their respective corporate
entity (legal capacity), and shall perform
their functions only after being registered.
However, during establishment, a company
would enjoy a corporate entity to the extent
that allows registration procedures to be
completed. For example, companies have
the right to open bank accounts even before
obtaining the official license, in order to
facilitate registration formalities.
Shareholding
Partners of a company may settle the value
of their shares by way of an allocated fund (cash
share) or in kind (corporeal share). Within this
context, even efforts undertaken to be exerted
by a partner may be acceptable as a value for
his shares. However, it is not permitted for a
partner to contribute in the shareholding
of a company against his reputation or any
authority which such partner may have.
Profits and Loss Allocation
Usually, parties’ profits and losses are linked
to the percentage of shares they hold. However,
if the parties are in a lawful agreement to
adopt another allocation methodology, that
would be permitted.
Good to Know
A company’s purpose must be lawful with due consideration given to standardization and
specialization of its main objectives.
Companies taking any permitted form other that joint venture have to have a written and duly
notarized memorandum and articles of association.
Unlike the case in UAE free zones, 51% of the shares of an inland company shall be held, as
a general rule, by one or more UAE national.
Why UAE ?
Foreign Companies
Provisions of the CCL are applicable on
foreign companies who are licensed to do
business in the UAE.
Shareholding
CLL recognizes and permits certain types of
companies. Any company that takes another
form is considered void and liabilities arising
out of its dealings shall be born be the person(s)
dealing in its name. Recognized forms are:
General Partnership (GP):
A general partnership is a company
comprising two or more partners who
are jointly and severally liable (meaning
individually and mutually) for the obligations
of the company. Such liability extends
to partners’ personal assets. This type of
companies is restricted to UAE nationals.
Name of a GP company shall be composed
of the names of all or part of the partners
together with what may show the existence
of company, or it may simply have a special
trade name of its own.
In a GP company, shares may be assigned
either by approval of all the partners or in
the manner prescribed by the memorandum
of association, which is required to include
particular details covering the main areas of
partnership e.g. company’s capital, shares
and rate of profit/loss distribution.
Limited Partnership (LP):
A limited partnership company comprises
general partners together with one or more
silent partner(s). Liability of general partners,
who are involved in company’s dealings with
third parties, is similar to partners of a joint
venture company i.e. they are individually
and mutually liable for the obligations of
the company, while those sleeping partners
is limited to the value of their shares in the
company.
Unless the parties agree to the contrary,
decisions in this type of companies are to
be made by ammoniums agreement. CCL
puts restrictions on the position of general
partner, as it is only allowed for UAE nationals,
although non-UAE nationals may participate
as sleeping partners.
Name of an LP company shall be composed
of the names of all or part of the partners
(except silent partners) together with what
may show the existence of company, or it may
simply have a special trade name of its own.
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Chapter 6
company’s shares and 45% at maximum.
All essential elements defining the partners’
relationship are to be spelt out in the JV
agreement, including their entitlements and
obligations, the manner of distribution of
obligations, profit and loss. Unless the parties
agree to the contrary, decisions in this type
of companies are to be made by ammoniums
agreement.
After the required approvals are granted,
invitations for public subscription shall be
announced to the public. In addition to a
summary of the Memorandum and Articles
of association, the announcement shall
contain all details relevant to payment, shares,
board membership requirements and any
other matters affecting the entitlements or
obligations of the shareholders. Management
responsibilities of a PJSC are to be borne by
a board of directors (3-15) members, and
the financial affairs of the company are to
be audited by an accredited auditor. CCL
defines the framework of managing PJSCs
in a reasonable detail, so as to ensure sound
management of shareholders funds invested
in the company.
Public Joint-Stock (PJSC):
Private Joint-Stock (PrJSC):
With few exceptions, all companies
interested in the business of banking,
insurance, or investment of funds is to take
the form of a PJSC. In a PJSC, capital must
be adequate for the achievement of its
objectives, and in all cases may not be less
than USD 2.7 million.
PrJSC is another option available for investors
under the CCL. Number of founders in this
type of companies shall not be less than
three, and shares shall not be offered for
public subscription. Founding partners may
subscribe to the full amount of the capital
which is to be USD 0.54 million or more.
Capital is to be divided into negotiable
shares of equal value. It is important here
to mention that founding members are of a
PJSC are required to hold at least 20% of the
Except for provisions concerning public
subscription, all provisions contained in the
CCL with regard to public joint-stock shall
apply to private joint-stock companies.
Joint – Venture (JV):
A JV company is an association between
two or more partners to share profit or loss
of a commercial business or businesses carried
out in the private name of one of the partners,
while is other remain undisclosed to third
parties.
Why UAE ?
Steps for Setting-up an LLC
Selecting a commercial name and have it approved.
Preparing the Memorandum of Association and have it notarized by a Notary Public.
Getting approval from the Economic Department in the desired Emirate and apply for
entry in the Commercial Register.
Enrollment in the Commercial Register.
Issuance of the license by the Economic Department.
Registration with the Chamber of Commerce and Industry.
Limited Liability (LLC):
An LLC is an association of a maximum
number of fifty and minimum of two partners.
Partners in an LLC are liable only to the extent
of their shares in the capital.
Orderly books of accounts are to be maintained
by the management of an LLC, and the annual
statements of accounts are to be audited by an
accredited auditor.
LLCs are noticed to be the preferred vehicle
of doing business by expatriates, for the great
deal of flexibility it provides. Notably, this
option gives an opportunity for the expatriate
partner to assume full management of a
business, as well as agreeing on a methodology
for profit/loss distribution that does not
necessarily follow the percentage of shares.
LLCs are also recognized as offering a suitable
structure for entities interested in developing
a long term relationship in the local market.
With the exception of banking, insurance
and investment of funds, an LLC may practice
any lawful activity. Capital of an LLC should
not be less than USD 47,850 (81,700 in Dubai),
and is to be divided into equal shares of a
value not less than AED 1000 each (USD 272).
Managers (1 to 5) shall be appointed to
assume management responsibilities. With
regards to managers, there is no restriction on
the nationality status i.e. it is not mandatory
for managers to be of UAE nationality.
Good to Know
One of the requirements for a branch to a foreign company to operate in the UAE is to have
a local agent, who must be a either a UAE national or a company that is 100% owned by UAE
nationals.
Local agents are not involved in running the business. They just liaise in issues similar to
obtaining visas, labor cards, etc and are usually paid a lump sum and/or a percentage of profits
or turnover.
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Chapter 6
Partnership Limited with Shares (PLS):
A PLS is an association comprising two
types of partners: general partners (must be
UAE nationals) who are mutually liable, to
the extent of their personal assets, toward
the company obligations; and shareholding
partners who are liable only to the extent of
their shares in the capital of the company.
The capital of a partnership limited with
shares shall be not less than AED five hundred
thousand (USD 136,147), and is to be divided
into negotiable shares of equal value. The
name of one or more general partners shall
be reflected in the name of the company. In
many aspects, such as establishment, issuance
of stocks, functions of directors, accounts and
alike, a PLS is to follow the same provisions
applicable on PJSCs.
Why UAE ?
The company management shall be
assumed by one or more general partners.
Name and scope of responsibility of such
manager(s) are to be mentioned in the
memorandum and articles of association of
the company.
Branch and Representative Offices of
Foreign Companies:
CCL also regulates with formation and
regulation of branches and representative
offices of foreign companies in the UAE. It
is important to understand that a branch
does not have a legal identity and is, legally
speaking, considered as part of the parent
company.
Branch offices have a restricted status,
as they are not allowed to directly engage
in the UAE market, save to representation
and marketing of the parent company, and
provision of services similar to maintenance.
Bankruptcy
A bankruptcy or insolvency law was
promulgated by the UAE as early as 1973, which
was later amended under the UAE Federal
CTL. Rules governing bankruptcy in the UAE
aw similar to those applied internationally. By
the declaration of a debtor as bankrupt by
the court, a notice is issued to all creditors to
register their claims.
Emirati creditors of a bankrupt merchant
must register their claims within 10 days of
publication of the notice. Foreign creditors
staying outside the country must register
their claims within one month of the
announcement.
The judge of the bankruptcy court will verify
the documents submitted by the debtor and
will reschedule debts and lodge them as per
the court’s instructions. A copy of the schedule
along with a statement of the amount that the
court intends to accept as debt will be sent to
every creditor and the bankrupt entity.
The creditors could object to the amount
stated by the court and the judge supervising
the bankrupt merchant or company will decide
whether to accept or reject the objection
It is important to state that one of the
major consequences faced by those who
are declared as bankrupt will not be able to
carry out businesses. As well, the bankrupt
merchant cannot leave the country without
informing the court.
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Chapter 6
Employement
All matters relevant to employment
relationships in the UAE are regulated by the
provisions of the federal Labour Law, which
was issued in1980 (LL). That was only the
beginning for many significant developments
in the regulation of the area of employment.
Scope
The EL covers all the employees, regardless
of nationality, and contains a wide definition
of “employee”, which includes all persons
who, for wage of any kind, are in the service
or under the management or control of an
employer.
Definite Contract
Due to the special nature of their activities
and professions, EL excludes employees of the
federal and local government, members of the
armed forces, police and security, domestic
servants employed in private households,
and the like, as well as farming and grazing
workers, other than those working in
agricultural establishments that process their
own products, and those who are permanently
employed to operate or repair mechanical
equipment required for agricultural work.
Employment Contract
The EL defines the employment contract
as any agreement, concluded between an
employer and an employee, whereby the latter
undertakes to work in the employer’s service
and under his management and control, in
return for a certain wage that the employer
undertakes to pay.
Indefinite Contract
Shall not exceed four years.
Indefinite.
may be renewed by mutual Agreement
Does not need to be renewed.
Renewal shall be deemed as an extension of
the original term and shall be added thereto
when calculating the employee’s total
period of service.
Why UAE ?
Employee’s total period of service starts
from joining till termination of service.
Employment contract is considered as ‘Indefinite’ if it:
Is not written if it concluded for an unspecified period.
If it was originally written and concluded for a definite term but both parties, without a written
agreement between them, continued to perform it after its expiry; or
Was originally concluded for the execution of a specific work that had no specific duration or
that is recurrent by nature, but the contract continued after completion of that specific work.
Employment contract shall be written in
duplicate, with one copy to be delivered to
the employee and the other to the employer.
Contract shall particularly specify the date of
its conclusion, the date on which work is to
begin, the type and place of the work, the
duration of the contract, (if definite) and the
amount of the wage.
An employment contract may be for a
definite or indefinite term. Below table
summarizes the differences between the two
types, as follows:
Probation Period
EL recognizes inclusion of a condition
of a non-renewable probation period not
exceeding six months in employment contracts.
During such a period the employer, without
notice or severance pay may terminate
employee’s services. An employee shall not
be placed on probation more than once with
the same. Where an employee successfully
completes the period of probation and
continues in employment, said period shall be
calculated as part of his period of service.
Employment of Non-UAE
Nationals
As the UAE is considered a preferred
destination for professionals and skilled human
resources from over the world, it was necessary
that the EL outlines the legal framework for
employment of non-UAE nationals.
Non-Nationals may not be employed
without the prior approval of the MOL and
before first obtaining an employment permit
in accordance with the revealing procedures
and regulations such permit shall not be
granted unless the following conditions are
fulfilled:
That the employee possesses professional
competence or educational qualification
the country is in need of.
That the employee has lawfully entered the
UAE and satisfied the conditions prescribed
in the residence regulations in force.
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Chapter 6
Employment of Children and
Women
In line with the public policy of the
UAE, EL lays down several measures that
aim at the protection and regulation of
employed children and women. That includes
determination of the minimum age for a child
to be employed (15 years) and limiting the
working hours for children to six a day.
Additionally, EL prohibits employment
of women and children in jobs that are
hazardous or detrimental to health, or at night
shifts except in very restricted conditions. Also,
female employees are entitled as per the EL to
maternity leave with full pay, and child nursing
time within working days.
Wages
EL differentiates between ‘total wage’
comprising the whole package payable to
employee (including for instance travel,
Why UAE ?
accommodation, medical insurance and any
other benefit) and ‘basic wage’ which does not
include any allowances.
Understanding the difference between
basic and total salary is particularly important
for both employers and employees as the basic
wage is the one to be taken into account when
calculating a gratuity for end-of-service.
Working Hours
The maximum normal working hours for
adult workers are eight hours a day, 48 a
week. For certain types of establishments, this
may be increased to nine hours a day (hotels,
cafeterias, security services etc…).
Safety & Protection
Each employer shall provide appropriate
safety measures to protect employees against
the hazards of occupational injuries and
diseases that may occur during the work and
also against fire and other hazards that may
result from the use of machines and other
work tools.
Termination
Employment contracts terminate in any of
the following cases:
By mutual agreement of the parties,
Upon expiry of its term, unless it has been
expressly or implicitly extended;
For the convenience of either party to an
indefinite term contract.
Termination by the Employer:
An employer may dismiss an employee without
notice if and only if the employee:
Assumes a false identity or nationality or
submits forged certificates or documents.
Is engaged on probation and is dismissed
during or at the end of the probationary
period;
Commits a fault resulting in substantial
material loss to the employer
Disobeys instructions on the safety of
work or workplace, provided that such
instructions are in writing and posted at a
conspicuous place and are communicated
verbally to the worker, in case he is
illiterate;
Defaults on his basic duties under the
contract and fails to redress such default
despite a written interrogation and a
warning that he will be dismissed if such
default is repeated;
Is finally convicted by a competent court of
a crime against honour, honesty or public
morals;
Reveals any confidential information of his
employer;
Is found in a state of drunkenness or under
the influence of a narcotic drug during
working hours;
Assaults the employer, the manager in
charge or any of his workmates during
working hours; or
Absents himself from work without a valid
reason for more than 20 non-successive
days in one single year, or for more than
seven successive days.
Where an employment contract is for a
definite term and the employer revokes it
for reasons other than those specified above,
he shall be required to compensate the
employee for any damage the latter sustains.
Said compensation shall in no case exceed
the aggregate wage of three months or the
remaining period of the contract, whichever
is shorter, unless otherwise stipulated in the
contract.
An employee may abandon his work without
notice in either of the following cases:
If the employer fails to honour his
obligations towards the employee, as
provided for in the contract or in the EL.
If he is assaulted by the employer or the
employer’s legal representative.
Where a contract is revoked by an employee
for reasons other than those specified above,
he shall be required to compensate the
employer for any damage the latter sustains
as a result, provided that the amount of
compensation shall not exceed half a month
wage for three months or for the remaining
period of the contract, whichever is shorter,
unless otherwise stipulated in the contract.
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Chapter 6
Cooperation Treaty; WIPO Convention and
WIPO Copyright Treaty.
Protection of Intellectual property rights is
one of the areas that the UAE has considered
as vital to achieve its ambitious economic
plans. Historically, Ras Al Khaimah was the
first among the Emirates to enact a law to
regulate the registration of trademarks.
Later, numerous laws regulating the rights
considered as intellectual has been enacted.
In 1992, the federal Trademark Law
was issued, introducing a modern reliable
trademark protection system for the business
community. In the same year, the Copyright
Law was also enacted. The latter was repealed
in 2002, by the Copyright and Related Rights.
In 2002 another relevant law was passed which
is the one regulating the industrial property
rights for patents, designs and models.
The UAE is a committed party to a member
of international intellectual property treaties,
like the Agreement on Trade-Related Aspects
of Intellectual Property Rights (TRIPS); Berne
Convention for the Protection Literary
and Artistic Work; Paris Convention for
the Protection Industrial Property; Patent
The UAE also adopts the International
Classification of Goods and Services under the
Nice Agreement, 1957. Additionally, the UAE
has agreed with other members of the Gulf
Countries Council on the adoption of a unified
trademark law.
Trademarks
Registration of a trademark extends
protection for renewable period of 10
years from the date of filing of application.
Trademarks eligible for registration include
names; signatures; letters; numbers; drawings;
symbols and pictures.
Applications for trademark registration are
to be submitted to the Ministry of Economy
(MOE); the government body in charge of the
trademark registers in the UAE. Application
is to be accompanied by all relevant
documentation like labels of the mark desired
to be registered, and a duly notarized power
of attorney, if the application is submitted by
an agent.
Once the application for registration is
approved, the trademark shall be published in
the official trade mark bulletin as well as two
newspapers. The purpose of publication is to
allow any party that claims interest or right
on the trademark to oppose the registration,
and such oppositions, if any, are to be decided
upon by the MOE and the competent court. If
no opposition is successful, the MOE shall issue
a registration certificate in the name of the
applicant.
Copyright and Related Rights
Copy right and Related rights Law governess
the protection given to authors on their
intellectual works like books and other forms
of written materials, computer softwares,
music pieces, audio and video productions,
drawings, paintings, photographs and alike.
However, some materials cannot be registered
due to their nature, like laws, materials which
enters the public domain.
Rights granted include both moral rights
(such as use for the first time), as well as the
Why UAE ?
of commercial use of the material subject to
intellectual property rights.
Such protection is granted for 50 years
for the lifetime of the author, and 50 years
thereafter. As to applied arts the protection
period is 25 years, and 20 for broadcasted
materials.
Protection of copyrights is granted
regardless of the fact that the material was
registered at the Ministry of economy or not.
However, it is advisable to register intellectual
works and materials as this would make the
process of evidence much easier in case any
conflict arises.
Industrial Property Rights for
Patents, Designs and Models
The important area of intellectual property
rights relevant to inventions and industrial
know how and models is also covered by
the UAE laws. In broad terms, for such kind
of intellectual works and materials to enjoy
protection, they are to be new, and do not in
violation of the law and public policy.
Rights over inventions are granted to the
inventor himself, unless the invention was
a result of the inventor’s work as part of his
duties as an employee, where in such a case,
the rights pertinent to the invention will be
granted to the employer.
Enforcement actions
The UAE legal system provides an extensive
protection to intellectual property related
rights, including very efficient enforcement
actions whether through the civil court, or the
police or the public prosecutor.
Certain government departments have
also the authority to take some immediate
actions against proven cases of infringement
of intellectual property rights, like seizing
and even destroying counterfeited goods and
impose fines.
It is important to highlight that, during
the past decade, the UAE has very much
increased its cooperation with regard to
enforcement with WIPO, the International
Anti-Counterfeiting Coalition.
The role of government departments in
charge of customs is being played by local
authorities at local level. Within this context,
it is important to state that the UAE is
extensively co-operation with the members
of the Gulf Cooperation Council as well as the
World Customs Organization in this area.
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Chapter 6
(“ADX”); NASDAQ Dubai; and most recently
Dubai Gold and Commodities Exchange
(“DMCC”).
Exchange of Securities
& Commodities
In its quest to actualize the vision of being
the preferred destination in the region for
financial institutions and attract corporations
and investors involved in the sector of financial
services and stock exchange, it was vital
for the UAE to carefully set-up its legal and
institutional platform.
The first step in that direction was the
enactment o the Securities and Commodities
Exchange Law (“SCEL”) in 2000. Under the
law, a federal authority called the Securities
and Commodities Authority (“SCA”) was
established,
to
undertake
regulatory
authorities over the exchange markets
As soon as the law came into effect, the
Dubai Financial Market (“DFM”) started
trading, followed by Abu Dhabi Exchange
Why UAE ?
Since then, these markets have witnessed
considerable growth and expansion in terms of
trading, which made them on top of the list of
regional stock exchange markets in the region.
In order to understand the legal framework
under which the DFM and AD… operate, it is
necessary to give a brief account of the main
features of the SCEL, including its objectives
and the regulatory body it created.
The SCA
SCEL was intended to serve as the umbrella
of rules governing the stock exchange
activities within the UAE, leaving a room for
local legislations and regulations issued by the
respective exchange markets.
To that end, it created SCA which was
assigned the mandate of providing the
opportunity for investment of savings and
funds in securities in a manner that servers the
national economy and ensures accuracy and
soundness of transactions, further to
assuring interaction of supply and demand
factors with a view to fix prices with a view
to fix prices and protect investors through
consolidating proper and fair transacting
principals among the various investors.
Additionally, the authority was sought to play
a role in developing investment awareness by
conducting studies and recommendations to
the concerned authorities, as well as to seek to
insure financial and economic stability.
the SCA, the law gives the latter powers to
suspend the dealings of any market or in the
shares of any company in case exceptional
circumstances that threaten the progress or
regularity of occur.
Scope of the SCA
The SCEL envisages the establishment of
markets for negotiation of securities and
commodities, either in the form of a local
public institute, or a public corporation.
Such markets are to be licensed by the SCA,
and are to operate under its supervision.
The SCEL also requires markets operating
in the UAE to display prices of securities and
commodities in the manner prescribed in
the regulations that are issued to detail its
provisions.
To enforce the regulatory authority of
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Chapter 6
Disclosure and Transparency
Understanding that transparency is a
corner stone in the stability of securities
and commodities exchange markets, SCEL
dedicated a whole chapter to place the rules
that shall govern this area. For that purpose,
a wide range of powers is given to the SCA,
including:
To conduct investigations deemed to be
necessary in the course of applying the Law
To publish any information that may affect
the prices of securities pertinent to any
company
To order any firm whose securities are
listed in the market to publish explanatory
information regarding its position and
activities in a manner that would guarantee
safe dealing.
Brokers
As per the SCEL, transactions in exchange
markets within the UAE are to be undertaken
by licensed brokers only. Being positioned
in this particularly sensitive role, the Law
required brokers to act honorably and comply
with its provisions, as well as the terms and
regulations issued by competent authorities.
Under the Law, brokers are also to refrain
from involving themselves from any
practices which may be in any way harmful
to the markets in which they operate; or the
investors, with specific emphasis on fictitious
transactions not actually leading to transfer of
securities or funds.
Good to Know
Foreign companies applying to list in the UAE must exist for more than two years prior to
application, their capital must exceed AED 40 million (USD 10,900) and the number of registered
shareholders in the company must exceed 100.
All stock brokers must be registered in the Register of Brokers. There are separate licenses
for brokers dealing with domestic shares and bonds and foreign shares and bonds.
Listing is restricted to the following:
Shares in joint stock companies incorporated in the UAE or those whose head office is
located in the UAE.
Shares of companies not holding the nationality of the UAE which are approved for listing
by the Board of the respective institution.
Bonds and debt instruments which the Board resolves to list.
Any other securities approved for listing by the Board
Why UAE ?
Securities and Commodities
Exchanges
Abu Dhabi Exchange (ADX)
ADX was established on 15 November 2000.
Functions assigned to the Abu Dhabi Exchange
include:
Provide opportunities to invest savings
and funds in securities in order to benefit
national economy.
Ensure the soundness and accuracy of
transactions and to ensure the interaction
between demand and supply in order to
determine prices.
Protect investors through establishing fair
and proper dealing principles between
various investors.
Impose stringent controls over securities
transactions to ensure sound and conduct
procedure.
Develop
investment
awareness
by conduction studies and issuing
recommendations in order to ensure that
savings are invested in productive sectors.
Ensure financial and economic stability
and develop trading methods in order to
ensure liquidity and stability of prices of
Securities listed on the market.
Moreover, ADX has the authority to
establish centers and branches outside the
Emirate of Abu Dhabi. To date it has done
so in Fujeirah, Ras al Khaimah, Sharjah and
Zayed City.
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Chapter 6
Dubai Financial Market (DFM)
DFM is operating as a secondary market
for trading of securities issued by public
joint-stock companies, bonds issued by the
Federal Government or any of the Local
Governments and public institutions in the
country, units of investment funds and any
other financial instruments, local or foreign,
which are accepted by the Market. The Market
commenced operations on 26 March 2000.
Objectives of the DFM include.
Regulating the process of trading in securities
ensuring the protection of investors from
unfair and improper practices.
Creating
highest
liquidity
in
the
marketplace through the interaction of
Why UAE ?
supply and demand based on fair and
equitable trading practices between
investors.
Organizing the transfer of securities
ownership
through
the
Clearing,
Depository and Settlement Department,
which operates an electronic system
ensuring efficiency and timeliness of
transfers.
Implementing rules of professional conduct
and discipline between brokers and DFM
staff to maintain a high level of integrity
and provide them with proper training.
Collecting data and statistics about
securities and issuing reports based on this
information.
Dubai Gold & Commodities Exchange (DGCX)
NASDAQ Dubai
Formerly called the Dubai International
Financial Exchange, or (DIFX), NASDAQ Dubai
started operation on Sept 26, 2005. NASDAQ
Dubai is located in the Dubai International
Financial Centre (DIFC); the Dubai dedicated
financial free zone. Financial activities in the
DIFC are governed to international standards
by an independent regulator, the Dubai
Financial Services Authority (DFSA).
NASDAQ Dubai has recently taken a giant
step by outsourcing its key market operations
functions for equities to Dubai Financial
Market (DFM). The outsourcing is considered
an important step in exchange consolidation
in the GCC.
DGCX commenced trading in November
2005 as the region’s first commodity derivatives
exchange and has become today, a leading
derivatives exchange in the Middle East.
DGCX has a fully operational Compliance
Department which, in liaison with ESCA,
ensures that Members maintain strict
adherence to the relevant laws and by-laws in
place.
In addition, all DGCX Broker Members that
are licensed by ESCA are required to apply
robust ‘Know Your Customer’ (KYC) disclosure
procedures to their clients’ account opening
formalities. Furthermore, they are required to
conduct their business with clients to DGCX in
accordance with the international ‘best’ code
of practice and standards observed on other
major exchanges around the world
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Chapter 6
Insurance Authority
Insurance
Insurance activities in the UAE are
regulated by the provisions of the Insurance
Law 2007 (“IL”). Said law replaced the
Insurance Companies and Agents Law, 1984,
and it applies on national and international
insurance and re-insurance companies licensed
to carry on business in the UAE. IL provisions
also regulate roles, liabilities and relationship
of different parties involved in insurance
operations including insurance agents, brokers
and loss adjusters.
Insurance Categories
IL divides direct insurance operations into
three categories, as follows:
Life assurance and funds accumulation
operations
Properties insurance
Life liability insurance
Why UAE ?
By virtue of IL, a federal regulatory
authority; the Insurance Authority (“IA”) was
established. The IA is aimed to take charge
of organizing and overseeing the insurance
sector in a way that would ensure suitable
environment to develop it and enhance
the role of the insurance industry to secure
lives, properties, and liabilities against risks
in order to protect the national economy;
collect, develop, and invest the national
savings to sustain the economic development
of the State; encourage fair and effective
competition; provide the best insurance
services in competitive premiums and coverage,
and Emiratize the insurance markets jobs.
Insurance and re-insurance operations are
reserved to be carried out by public stock
companies established in the UAE; branches
of foreign insurance companies and insurance
agents, who are duly registered and licensed
by the IA. The IL also provides for that
insurance companies licensed to operate in
the free zones shall not carry on any activity
outside these zones other than the activity of
re-insurance.
Insurance Policies
Protective Measures
Any insurance contract concluded by a
company not duly registered according to the
provisions of the IL is deemed invalid and any
party affected by such unregistered insurance
company may claim compensation by reason of
so invalidation.
To protect the public, the IL obliges
insurance and re-insurance companies to
observe rules of disclosure and transparency
in their dealing with their patrons and in
respect of all the documents, papers, bulletins,
advertisements, propaganda and articles and
scientific materials of their issue.
Insurance policies are required to be written
in Arabic and a translation into another
language may be attached therewith.
As it is a common practice by insurance
companies to include in insurance policies
clauses that are intended to limit their liability,
IL provides for that such clauses shall be
written in bold letters, different color and
endorsed by the insured.
The Authority is also required by the IL to
conduct periodical inspection of the insurance
and re-insurance companies to ensure safety
of the financial situations, observance of the
provisions of the law and the technical basis
of conducting the insurance and re-insurance
operations.
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Chapter 6
the UAE Telecommunications Regulatory
Authority (“TRA”) was established.
Telecom
Since its early days, the UAE has given much
of importance to the Telecommunication
sector. The first relevant law to be issued was
the Wireless Telecommunications & Devices
Law, 1973, followed by the establishment
of
the
Emirates
Telecommunications
Corporation (Etisalat).
Said corporation was assigned all
regulatory authorities over this sector,
including the licensing of telecommunication
devices of all types and purposes. Additionally,
the corporation was granted an exclusive
license to plan, develop, construct and
operate telecommunication networks within
the UAE.
In 2003, a further step into developing the
sector was taken by the federal government
by enacting the Telecom Law, under which
Why UAE ?
This structural reform was intended to
prepare the ground for new players to join
the market as telecommunication network
operators, which made it necessary to assign
the regulatory authorities to an independent
body. That resulted in
The TRA
The mandate assumed by the TRA includes
Grant of licenses related to the operation
of telecommunication networks and use of
telecommunication devices;
Ensuring
that
up-to-date
telecommunication services are available
across the UAE, by overseeing the operators’
adherence to the quality standards and
policies, as stipulated in the licenses;
Facilitating
and
overseeing
the
interconnection between operators and
networks and parties compliance to
interconnection agreements.
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Chapter 6
shall be collectively referred to as the “UAE
ETC Laws”.
Objective
Electronic Transactions
and Commerce
As in many other fields, the UAE was
the first country in the region to recognize
and regulate the electronic documents and
transactions. An early sign to the sensitivity
and responsiveness to the rapid growth
in the reliance on electronic means can be
seen in the UAE’s Commercial Transactions
Law where the legislature adopted and
recognized commercial and financial records
produced and kept in electronic forms.
The first major step to regulate the use
of technology in business transactions was
taken by Dubai in 2002, when the Emirate
issued its law on the subject. The federal
government took a similar path in 2006.
These developments were highly praised by
the local business community as it allowed
the use of the many flexible features and
advantages that today’s technology makes
available.
As both Dubai and the federal laws
referred to above are very similar in terms
of structure and topics covered, the below
overview shall cover them both, where they
Why UAE ?
UAE ETC Laws made a clear statement as
to their objectives, which, broadly speaking
revolve around regulating, encouraging and
facilitating electronic commercial transactions
and communications by means of reliable
electronic records, while ensuring the rights
of persons doing business electronically are
maintained, and their obligations are clearly
determined.
Said laws also aim at facilitating
and eliminating barriers to electronic
commerce and other electronic transactions
resulting from uncertainties over writing
and signature requirements, and to
promote the development of the legal
and business infrastructure necessary to
implement secure electronic commerce
Considerable attention is also given by the
UAE ETC Laws to facilitate the electronic filing
of documents with governmental and nongovernmental agencies and departments and
promote efficient delivery of the services of
such agencies and departments by means
of reliable electronic communications. To
that end, it is also aspired that uniform
rules, regulations and standards for the
authentication and validity of Electronic
Communications.
Scope
UAE ETC Laws focus on providing definitions
and regulations relevant to electronic signature,
as well as electronic records or documents that
are created, stored, generated, copied, sent,
communicated or received by electronic means.
However, certain transactions and documents
were excluded from the scope covered by the
UAE ETC Laws, namely:
Transactions and issues relating to personal
law such as marriage, divorce and wills;
Deeds of title to immoveable property;
Negotiable instruments;
Transactions involving the sale, purchase,
lease (for a term of more than 10 years) and
other disposition of immoveable property
and the registration of other rights relating
to immoveable property;
Any document legally required to be
attested before a notary public; and
Any other documents or transactions
exempted by special provision of law.
Important Definitions
Electronic Record or Document:
A record or document that is created, stored, generated, copied, sent, communicated or
received by electronic means, on a tangible medium or any other Electronic medium and is
retrievable in perceivable form.
Electronic Signature:
Any letters, numbers, symbols, voice or processing system in Electronic form applied to,
incorporated in, or logically associated with a Data Message with the intention of authenticating
or approving the same.
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Chapter 6
‘attestation certificate’, issued by
messaging and IT service providers.
Electronic Signature
An electronic signature is one of the
key tools used in the domain of electronic
transactions and commerce. It is very similar
in terms of value and reliability, to the regular
signature.
Electronic signature can be made in
many electronic forms like letters, numbers,
symbols, voice or processing systems that are
incorporated in, or associated with a data
message, with the intention of authenticating
or approving the same.
With such a flexible definition, many tools
provided by the modern technology can
contribute in ascertaining that a certain data
message has been produced by a particular
person.
However, such reliance requires some
sort of assurance in order to mitigate any
manipulation. The most common verification
tool to electronic signature is called
Why UAE ?
data
UAE ETC Laws did not leave this sensitive
area to be a grey one, as it puts strict
obligations on such service providers, to
ensure accuracy and reliability of attestation
certificates. Even more, activities of service
providers involved in this type of service are
being overseen and controlled on the federal
level.
A person may rely on an Electronic
Signature or Electronic Attestation Certificate
to the extent that such reliance is reasonable.
In determining so, the following factors are
to be considered, including:
The nature and value of the transaction
that electronic signature was intended to
support;
Examination of whether the parties to
the transaction in question had taken
appropriate steps to determine the
reliability of the electronic signature
Any agreement or course of dealing
adopted in general or by the parties to the
transactions.
Requirements for Electronic
Transactions
Under the UAE ETC Laws, deals, contracts
or agreements that are concluded or
performed, in whole or in part, through
electronic communication means e.g. e-mail,
are legally recognized.
That includes contracts and deals made for
example by two traders living and practicing
business in two different countries, or simply
between banks and their customers using
their ATM machines.
Some key considerations that should
be taken into account while using electronic
means to communicate in commercial
transactions:
If you wish to rely on electronic
documentation, then you have to make
sure that proper documentation and
document retention system is in place.
In case of electronic correspondences, you
will have to keep the messages retained
in a way that enables identification of the
origin and destination of the message.
As long as it is considered as legally reliable,
electronic signature has the same value as
regular signature.
Good to Know
UAE Laws does not restrict recognition of electronic signatures and attestation certificates to
those issued in the UAE.
Many UAE government departments do:
Accept the filing, submission, creation or retention of documents in the form of Electronic
Records;
Issue any permit, license, decision or approval in the form of Electronic Records;
Accept fees and other payments in Electronic form;
Put out tenders and receive bids relating to Government procurement by Electronic means.
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Chapter 7
Setting Up a Business in the UAE
Seizing The Opportunities
“
The ease of doing business through the
simplified incorporation procedures and the various
government services channels is one approach of the
government’s strategy toward creating an encouraging
competitive business environment in the UAE.
“
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Chapter 7
T
he UAE government always aims at
encouraging the establishment of new
businesses by providing easy incorporation
procedures and reducing the bureaucratic
steps that an investor may face in other
countries, in addition to the government’s
grants given to support selected initiatives.
According to the World Bank’s Doing Business
report 2011, it only takes 15 days to set up a
new business in the UAE while it may take up
to 60 days in other countries across the region.
established government entities contact the
various government bodies involved. Whereas
this process is time consuming in most of the
countries by running from a government entity
to another, it only takes 20 to 30 days to pick
up the new industrial license in Abu Dhabi.
Making business entry easier has always
been a target for the UAE government. In this
regard, a one stop-shop was introduced in
some emirates. These one stop-shops either
serve a type of business or a location where
the entity to be established. Abu Dhabi and
Dubai, for example, established separate
industrial licensing authorities as a “onestop-shop” where investors and businessmen
can submit all the required documents and
obtain industrial license easily. These new
E-Govt Official Portals
Federal Government
www.uae.gov.ae
Abu Dhabi
www.abudhabi.ae
Dubai
www.dubai.ae
Sharjah
www.sharjah.gov.ae
Ajman
www.ajman.ae
Umm Al Quwain
www.uaqcci.com
Ras Al Khaimah
www.rak.ae
Fujairah
www.fujairah.ae
Why UAE ?
The continuous efforts in Dubai extended
by initiating strategic decisions including
incorporating Trakhees, a business licensing
authority to serve selected business locations
such as Dragon Market and Atlantis. Tas’heel,
an online government system, was also
launched to simplify all labor related processes,
improve output volume and increase
efficiency. It allows companies to make online
transactions and payments to Ministry of
Labor. In addition a service called “Enjaz” was
initiated by Dubai Department of Economic
Development to facilitate the renewal and
cancelation of commercial licenses from
the workplace without the need to visit the
authority.
The abolishment of the minimum capital
requirement condition in establishing an
LLC company in the UAE has also stimulated
growth in small and medium enterprises sector.
This new decree also reduced the bureaucratic
hurdles like producing a bank certificate
showing the required capital.
Committed to excellence in service quality
and higher levels of convenience for investors
and businessmen, the UAE’s different
authorities have insured the availability and
accessibility of the services offered in all parts
of the country through conventional and
digital channels. The different government
entities established customer service centers
and offices in key locations to be around the
cities near its clients.
Superior customer-service has always
been a key figure of the performance of the
government efficiency. In April 2011, the Prime
Minister of the UAE launched the Emirates
Program for Excellence in Government
Services. Under this program government
service centers will be classified using a 7-starratings system, with the quality of service
determining the number of stars awarded. The
rating is based on the level of customer care
and the ease of process the entity has achieved
or was able to achieve. Various government
excellent programs were also launched in all
emirates across the UAE to encourage the
simplification of processes and to establish a
culture of quality and customer-orientation.
These strategic initiatives have caused a
positive stir among government entities and
their employees, driving them to provide
the best possible services to all investors and
businessmen in the country.
In realizing the UAE’s vision to become the
location of choice for investors around the globe
and taking forward its promise to simplify the
business set-up and run businesses, local and
federal entities have established various digital
channels through which its clients can obtain
their services at any time and in any location.
Not only clients today can find offices and
branches of government entities easily, but
they can also contact the concerned authority
by dialing free toll numbers around the clock.
As the world is moving virtual, the UAE
government is always at the cutting edge
by providing the latest of electronic and
mobile services to investors, businessmen
and residents. The UAE is currently ranked
2nd in e-Government Readiness Index 2010,
proving the government’s strong commitment.
Today, most of the procedures for licensing
and registering businesses can be conducted
within a mouse-click through the different
government entities e-portals. All documents
required can be submitted and verified
electronically from all over the world. For
example, checking the availability of a trade
name and reserving it can be done over the
internet. In fact, gaining the initial approval
for setting up a new business entity is easily
done by using the departments of economic
development web portals.
Furthermore, Government entities have
gone the extra mile by introducing convenient
and user-friendly applications that can be used
over the different smart phones’ platforms.
For example, all immigration procedures
can be pursued through a state-of-the-art
application over iPhone. Potential investors
can also browse all the laws and regulation
related to business by using phones and iPad
devices. Social Media tools have also been
used efficiently as an integral part of different
government entities’ communication strategy.
Most government entities today are ready
to address stakeholders’ issues and queries
directly on facebook and twitter. For example,
Dubai Department of Economic Development’s
news can be followed on
Samples of Government Entities’ Customer Communication Channels
Ministry of Labor
800 665
Ministry of Economy
60 052 2225
General Directorate of Residency and Foreigners Affairs Dubai (DNRD)
800 5111
Ministry of Environment and Water
800 3050
Abu Dhabi Government Contact Centre
800 555
Dubai E-Government Contact Centre
70 004 0000
Sharjah Contact Centre
800 8000
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Chapter 7
and transparent statistics. National Bureau
of Statistics Centre was established in 2009
as the national statistics centre that provides
comprehensive social and economic data.
Understanding the
UAE Market
A vital tool in succeeding any business in
the world is understanding its market: its
conditions, demand and supply. Providing
the historical and today’s in-depth data
allows investors to draw the conclusions of
tomorrow’s success and therefore value the
presented opportunities. Since the success of
businesses partially indicates the growth of
the country’s economy, the UAE government
is keen to provide transparent up-to-date
information through its statistics centers and
by encouraging the establishments of business
intelligence units.
Obtaining updated economic information
has become relatively easy with the
establishment of official statistics centers,
the coming of internationally-recognized
consulting firms and the rise of young business
intelligence houses. The advancement in
technology has also boosted the methodology
of presenting the figures. This enabled
investors and businessmen to obtain
secondary-research data from various sources
at a convenient time.
National Statistics Centers
The UAE is among the first nations that
realized the importance of providing updated
National Bureau of Statistics
www.uaestatistics.gov.ae
Statistical Centre – Abu Dhabi
www.scad.ae
Dubai Statistics Centre
www.dsc.gov.ae
Ministry of Economy
www.economy.ae
Ministry of Foreign Trade
www.moft.gov.ae
Why UAE ?
Attracted by the economic expansion
and the productive business environment,
international
business
and
industry
intelligence units headquartered in the UAE to
not only serve the country’s market but also
to provide data that cover the MENA region.
Examples of the most noteworthy these
units are Pan Arab Research Centre (PARC),
Nielsen, CB Richards, Jones Lang LaSalle and
Zaway. In addition, growing local business
intelligence units such as Medialogy, an
intelligence house that provides tailored and
customized business intelligence solutions for
firms that are interested to operate in various
emerging sectors within the UAE, are taking
their appropriate positions today’s emerging
market.
The UAE is the home for some of the top
global tier consulting firms that are prepared
to assist investors and entrepreneurs for
setup and best advice with strategies to
utilize the opportunities in this growing
region of the world. Not only do consultants
provide business planning services but many
consultants also can help investors projectmanage their business setup process and
facilitate in the process of employing new local
or expatriate staff, finding good premises,
the best jurisdiction and office rent. Names
like Price Water House Cooper (PWC), KPMG,
Mckinsey & Company and Deloitte based their
entire Middle East and North Africa offices in
the UAE. Many small growing consulting firms
also exist to serve investors and businessmen.
Outside Free Zones
Select the Bussiness
Location
Inside Free Zones
(Refer to Page -380)
Establishing a Business in
the UAE
In order to operate a business in the UAE,
the business entity must be registered and
licensed by the authorizing body. There are
two main locations where to establishing a
business in the UAE: establishing a business
outside free zones and establishing a business
in a free zone. They differ in the government
authorizing entity, forms of business entities,
types of business licenses, procedures and fees.
Free zones are districts arranged by the
government to encourage investors and
businessmen to do businesses in selected
sectors such Dubai Media City, Ras Al Khaimah
Creative City, with exclusive incentives and
privileges for foreign investors. A Business
entity established in a free zone must comply
with the regulations and follow the procedures
of the free zone. For example, a company
that intends to be established in Dubai Media
City (DMC) must follow the regulations and
procedures of DMC (refer to chapter 5 for more
information on free zones).
In contrast, a business entity established
outside free zones is treated as a fully Emirati
entity and can operate within the jurisdiction
of the emirate. They must comply with the
regulations of the Federal and local licensing
authorities.
353
354
Chapter 7
Contact the
Local Emirate’s
Licensing Authority
Establishing
a Business Outside
Free Zones
Follow the Processes
Business Licensing
Authorities in the UAE
Investors and businessmen wishing to
establish a new business in the UAE (outside
free zones) should contact the licensing
authority of the emirate. Each emirate has its
own business licensing authority that grants
commercial, industrial and civil licenses (as
indicated in the table below).
Abu Dhabi and Dubai established separate
industrial and tourism licensing authorities
to best sever their clients and enhance
government’s efficiency.
Abu Dhabi
Abu Dhabi Department of Economic Development
Tel.: +97126727200, Fax: +97126727749
Website: www.adeconomy.ae
Abu Dhabi Higher Corporation for Specialized Economic Zones
Services
To Establish a Commercial
Business Entity in
Abu Dhabi
P.O. Box: 36000 Abu Dhabi, Toll free number: 80096637
Tel.: 00971 (2) 5500000, Fax: +971 (2) 5500550
Website: www.zonescorp.com
To Establish an Industrial
Business Entity in
Abu Dhabi
Abu Dhabi Tourism Authority
To Establish a Tourism
Business Entity in
Abu Dhabi
P.O. Box: 94000,Toll free number: 800 555
Tel.: +971 2 444 0444, Fax: +971 2 444 0400
Email: [email protected], Website: www.abudhabitourism.ae
Why UAE ?
Dubai
Dubai Department of Economic Development
P.O. Box: 13223 Dubai,
Tel.: +971 4 4455555, Fax: +971 4 4455554
Email: [email protected],
Website: www.dubaided.gov.ae
Dubai Department of Tourism and Commerce
Services
To Establish a Industrial
Business Entity in
Abu Dhabi
P.O. Box: 594 Dubai, Toll free number: 800 70 90
Tel.: +(9714) 2821111, Fax: +(9714) 2821131
Website: www.dubaitourism.ae
To Establish a Tourism
Business Entity in
Abu Dhabi
Dubai Trakhees
To Establish any Type
Business Entity in Designated
Areas in Dubai (Dragon
Market, Atlantis and Ibn
Battuta Zone)
P.O. Box: 17000 Dubai
Tel.: +971 4 3636888, Fax: +971 4 3636858
Website: ww.trakhees.ae
Sharjah
Sharjah Department of Economic Development
Call Centre: 600 567777,
Tel.: +971 6 5122222, Fax: +971 6 5287999
Email: [email protected], Website: www.sedd.ae
Ajman
Ajman Municipality
P.O. Box: 3 - Ajman, Tel.: +971 06 7422331, Fax: +971 06 7457566
Email: [email protected], Website: www.am.gov.ae
Umm Al Quwain
Umm Al Quwain Department of Economic Development
P.O. Box: 1333 Umm Al Quwain
Tel.: +971 06 7652200, Fax: +971 06 7653322
Ras Al Khaimah
Ras Al Khaimah Department of Economic Development
P.O. Box:
Tel.: , Fax:
Email: , Website:
Fujairah
Fujairah Municipality
P.O. Box: Fujairah - 7, Tel.: +971 9 2227000, Fax: +971 9 2222231
Email: [email protected], Website: www.fujmun.gov.ae
Services
To Establish any Type of
Business Entity in Sharjah
Services
Business Entity in Ajman
Services
Business Entity in
Umm Al Quwain
Services
Business Entity in
Ras Al Khaimah
Services
Business Entity in
Fujairah
355
Chapter 7
Selecting a Trade Name
Before the new business entity can operate
in the UAE, a trade name must be selected
and registered at the “Licensing Authority” of
the emirate. Checking the availability of trade
names and reserving them is now accessible
online through the websites of the licensing
authorities (in Dubai and Abu Dhabi).
Trade license regulations are similar
throughout the UAE. The licensing authority
of each emirate provides detailed trade name
registration conditions which are also available
on their websites.
The registration of the Trade Name shall be
subject to the following conditions :
1. The name should not have been previously
used or registered in someone else’s name for
the same category of activity or for a similar
type of activity that might cause ambiguity.
2. A unique name not commonly used in the
type of activity to be employed for, unless the
trade name was composed of the person’s
name or title or was similar to a trade name that
was already registered with the Department, in
which case an addition must be made to the
name in order to make it distinctly recognizable
in order to avoid any potential ambiguity.
3. The individual trader or the company must
clearly display the trade name on the façade
of the establishment, and in case the latter
is a branch, the displayed trade name must
highlight this fact accordingly.
Why UAE ?
Processes of License
Trade Name Reserved
Pay Trade Name Fees
Trade Name
Reseve a Trade Name
356
4. The name must be compatible with the
required type of activity and legal status.
The registration of the Trade Name shall be
denied in the following cases:
1. If the name depicted Allah Almighty’s Names,
religious or denominational names, governing
authorities names or names or logos of local,
Arab and international bodies, institutions and
organizations.
2. If the name was identical or similar to a
registered local or international trade name,
knowing that such names may be registered by
their owners or attorneys thereof.
3. If the trade names stood in violation against
public law and order.
4. If the trade name was misleading to the
consumer with regard to the type of business it
depicted or its importance, size, etc.
By selecting the appropriate trade name
that fits the business activity to be conducted,
fees must be paid. Fees might slightly differ
from an emirate to another. As illustrated
in the fees table which represents the fees
involved in establishing a business entity in
Dubai, AED 100 is charged for reserving a new
trade name.
After selecting and reserving a trade name
either online or at the licensing authority, an
investor will be given a receipt which should
be kept to be submitted with other required
documents for initial approval.
www.adeconomy.ae
www.dubaided.gov.ae
357
Chapter 7
Select the Type of
Business License
Select the Form of the
Business Entity
Select a Local Sponsor
or Service Agent
Business License
Recieved Trade Name
358
Selecting a Local Partner
Sponsor or Service Agent
Establishing a new business entity outside
a free zone in the UAE requires having a local
(UAE national) sponsor/partner or service
agent. This depends on the entity’s business
license (refer to “Types of Business Licenses in
the UAE” section). The sponsor national is a
silent partner.
Finding a local partner or service agent
mainly depends on personal contacts.
Searching on newspapers and magazines
advertisements as well as the web may provide
some results.
The table provides a clear distinguishing
between the local sponsor and the service
agent:
Local Sponsor/Partner
Local Service Agent
Required for
In all Commercial Licenses can
be in Professional Licenses
In all Professional Licenses and
Branches or Representatives
Offices of foreign companies
Ownership status
At least 51% of the company’s
capital
None. But for civil works
company, the agent must have
percentage of the company’s
capital even if 1%.
Role
Assisting in obtaining visas,
labor cards, and issuing the
license and can have other
operation and managerial role
as agree upon the partners
Assisting in obtaining visas,
labor cards, and issuing the
license
How much is paid
As agreed in the Articles
of Association
A lump sum and/or a percentage
of profits or turnover.
Procedure
Why UAE ?
Selecting the Form of the
Business Entity
Once the Trade Name is reserved, investors
and businessmen are then allowed to choose
from a variety of forms of business entities that
exist under the UAE federal legal system, after
complying with conditions and requirements
as illustrated in the diagrams. The Federal
Commercial Companies Law and the UAE Civil
Transactions Law regulate the formation and
functioning of professional, industrial and
commercial companies. These two codified
legislations are applicable throughout the
UAE. The most common business forms are
shown in the diagram below and explained
The definitions of business forms and
process of incorporation are almost similar to
all emirates. However, the licensing body (refer
to “Licensing Authorities section”), third party
approvals required and the setting up fees may
slightly vary. The below process charts explain
those procedures and requirements. More
details can be obtained from the competent
licensing bodies within the emirates.
Pr
Shar ivate
eh
Com olding
pany
General
Partnership
Company
Forms of
Business Entities
in the UAE
or a
anch itive
r
B
A
t
esen
repr ce of a ny
offi ompa
C
ign
r
o
F e
Pr
op
int
Jo ture
n
Ve
Lim
Part ited
ne
Com rship
pan
y
S
rie ole
to
rsh
ips
Civil
Company
d
ite ty
Lim bili ny
Lia mpa
Co
Pa
lim rtne
ite rsh
sh d w ip
ar ith
es
ic
Publ ding
o
eh l
Shar pany
Com
in more details in terms of ownership, legal
requirements, minimum capital levels and
incorporation procedures. All foreign business
entities wishing to operate in the UAE, in
districts other than free zones, must have a
local partner or a local sponsor or local service
agent depending on the legal form of the
business entity. The role of the local partner
or sponsor or agent may vary from a business
entity to another (illustrated in the below
diagrams when needed).
359
360
Chapter 7
Form
Limited Liability Company (LLC)
Ownership
Minimum of two and not more than 50 persons
Shares can be transferred between partners or to third parties
Foreign equity in the company may not exceed 49 percent
No public subscription to make up capital
Liability
Each shareholder is liable to the extent of his share capital
Management
Not more than 5 managers and the method of operation for each manager must be specified
An expatriate may be a manager and carry out full authority to manage the affairs of the company
Minimum Capital
No minimum capital required
Shareholders have the right to determine the share capital of the company and the company
must have sufficient capital to achieve its objectives.
Documents Required for Initial Approval
The “General Documents” for initial approval
The Company’s Board of Directors resolution to subscribe to the new company if the Partner
is an existing corporate entity in UAE or abroad (the resolution must be attested by UAE
Embassy / Consulate or by a GCC State Embassy / Consulate and UAE Ministry of Foreign
Affairs, and duly translated into Arabic).
Photocopy of the director’s passport, and no-objection letter from the director’s current sponsor.
Documents Required for Final Approval
The “General Required Documents” for final approval
Memorandum of Association authenticated by Notary Public
Certificate of Capital Contribution from A bank
Auditor’s Certificate for all shares
Fees
General Fees
AED 230 (Dubai)
Commercial Register IssuingLLC Incorporation Application (Ministry of Economy)- AED 3000
AED 500
Partner Addition FeeSpecial Requirements
“Company with limited liability” must be added to the company name
Capital must be stated
Mandatory to appoint auditors on an annual basis
An LLC can not be formed for professional activities
Note
Most preferred choice for expatriates since it allows them full management control of the
Company
Business performing banking, insurance and investment Activities can not form an LLC
Why UAE ?
Form
A Branch or a Representative office of a Foreign Company
Ownership
100% foreign owned but must appoint a local service agent
A part of the parent company and does not have a seprate legal identity
The UAE national sponsor does not own shares
Liability
The parent company holds the liablitiy of the brnachs or the representitive offices
Management
An expatriate may be a manager and carry out full authority to manage the affairs of
the company
The Local Agent can’t perform any management role nor hold any share of the company
Minimum Capital
AED 250,000 (in Abu Dhabi)
“General Documents Required” for Initial Approval
Company Registration Certificate from the Ministry of Economy (for commercial license only)
The Company’s Board of Directors’ Resolution authorizing opening of the branch
Power of Attorney to the representitive
Parent Company’s Memorandum of Association
Photocopy of the main company’s certificate of Incorporation
Financial Statments for the past two years
Contratual Agreement with the local sponsor authenticated by the Notary Public
Details of the national sponsor
Fees
General Fees
Incorporation of a froeign company branch- AED 5000
Ministry of Economy registration feesAED 10000
Service Agent FeeAED 700
Special Terms
A UAE national must be appointed as a “Local Service Agent”
The office may only carry out the name and activities of the parent company and not permitted
to carry out commercial activities
Account must be audited annually
Note
Popular form for foreign companies to benefit from 100% foreign ownership
The representitive office is more limited than the branch
361
362
Chapter 7
Form
Public Joint Stock Company (PJSC)
Ownership
A minimum of ten founding members unless incorporated by the government
Local equity in the company must be a minimum of 51 percent
Liability
Each member is liable to the extent of his respective share value
Management
Board of Directors (3 to 15 directors) manages the company
The Chairman of the Board must be a UAE national
Minimum Capital
AED 10 million, a minimum of 25% and a maximum of 45% of the share capital of the
company can be listed
General Documents required for Initial Approval
Memorandum and Articles of Association
Project’s Feasability Study
Approval of UAE Securities and Commodities Authority
Photocopy of the director’s passport, and no-objection letter from the director’s
current sponsor.
The General Documents for Final Approval
Fees
General Fees
Partner Addition Fee – AED 500
Special Terms and Conditions
10% of the net profit must be retained as a statutory reserve until it makes half
of the capital
Note
Preferred choice for local and foreign investors since it raises a huge a mount of capital
Why UAE ?
Form
Private Joint Stock Company
Ownership
A minimum of three founding members who fully subscribe to the company’s capital between them
Shares cannot be offered to the public unless conditions met
Liability
Each member is liable to the extent of his respective share value
Management
Board of Directors (3 to 15 directors) manages the Company
The Chairman of the Board must be a UAE National
Minimum Capital
Not less than AED 2 million
General Requirments for Initial Approval
Memorandum and Articales of Association
Project’s Feasability Study
Photocopy of the director’s passport, and no-objection letter from the director’s current
sponsor.
General Documents Required for Final Approval
Certificate of Capital Contribution from A bank
Auditor’s Certificate for all shares
A written contract between the partners
Fees
General Fees
Special Requirements
10% of the net profit must be retained as a statutory reserve until it makes half of the capital
Note
May be converted to a PJSC after a period of not less than the expiration of two financial years.
363
364
Chapter 7
Form
Partnership Limited with Shares
Ownership
Owned by one or more general patners and one or more participating partners
General Partners must be UAE nationals and Participating Partners may be non-UAE nationals
Liability
General Partners are jointly liable to the extent of their assets for the company liabilities
Participating partners are liable only to the extent of their shares in the capital
Management
General Partners take the mangement role
Limited Partners can take internal management roles
Minimum Capital
AED 500,000
The capital of Partnerships Limited with Shares shall be divided into negotiable equal shares
General Documents Required for Initial Approval
Memorandum of Association (MOA)
Fees
General Fees
(MOA) must be signedby general partners
Capital must be divided into negotiable shares of equal value
Must have a Board of Supervisors
Account must be audited annually
Why UAE ?
Form
Limited Partnership Company
Ownership
Owned by one or more general patners and one or more limited partners
General Partners must be UAE nationals and Limited Partners may be non-UAE nationals
Liability
General Partners are jointly and severally liable to the extent of all their assets for the liabilities
of the company
Limited partners liable for the company liabilities to the extent of their respective shares in
the capital only
Management
General Partners take the mangement role
Limited Partners can take administrative roles
Minimum Capital
None
Memorandum of Association
Simple Liability Contract or “Partnership agreement”
Fees
General Fees
365
366
Chapter 7
Form
Joint Ventures
Ownership
Two or more foreign and local partners agree by contract to share the profits and losses of one
or more enterprises
One or more partners will carry out the the commercial enterprise in thier names while other
partners will remain undisclosed to third parties
Liability
Each shareholder is liable to the extent of his share capital
Profits and losses can be prescribed
Management
An expatriate can carry out the management role
Minimum Capital
None
The General Requirments for Initial Approval
The General Documents for Final Approval
Fees
General Fees
The joint venture should be disclosed to third parties
Note
Practically, a joint venture is a preferred form for companies working together on specific
projects
The Contract of Joint Participation is formed bewteen the partners and regulates the rights
and obligations of the partners and the distribution of profits/losses
Does not have to be registered or declared
Existance of Joint Venture may be proved by any method of proof
Why UAE ?
Form
Sole Proprietorship or Individual Establishment
Ownership
Owned by a sole proprietor
Can be 100% foreign owned only in professional licenses and must appoint a “local service agent”
Liability
The proprietor shall be responsible for all its financial obligations to the extent of his assets
Management
An expatriate can the role of management
Minimum Capital
None
Appointment Contract of Local Services Agent
Fees
General Fees
Service Agent Fee – AED 700
The role of the local service agent is to assist in obtaining licences, visas, labour cards, etc.
The local service agent shall not own any share in the company’s capital.
Note
A preferred choice by many expatriate since no sponsor or partner needed to operate this form
of company
367
368
Chapter 7
Form
Civil Company or Civil Works Company
Ownership
A number of partners
Can be 100% foreign owned, however must appoint a “Local Service Agent”
Liability
Partners are jointly or severally liable to the extent of their personal assets for all of the
liabilities of the company
Management
Can be 100% foreign managed
The local service agent has no direct involvement in the business and is paid a lump sum
and/or percentage of profits or turnover
Minimum Capital
None
The General Requirments for Initial Approval
Contract of Civil Works Company authenticated by the Notary Public in the emirate
Appointment Contract of Local Services Agent
Fees
General Fees
Partner Addition Fee – AED 500 or Service Agent Fee – AED 700
The role of the local service agent is to assist in obtaining licenses, visas, labour cards, etc.
The local service agent shall not own any share in the company’s capital.
Activity must involve the use of intellectual faculties such as consultancy, research, medicine
Activity to be liscened must not be commercial
Note
Prefered by foreign investors since it gives them 100% ownership
Why UAE ?
General Partnership consists of two or more
partners. All partners are jointly and severally
liable to the extent of all their assets for the
company’s liabilities. This type of company
is confined to UAE national as most assets of
foreign investors are located outside the UAE.
The General Documents Required for all forms of Business Entities
General Documents Required for Initial Approval for all business entities
A proof of reserved trade name (not applicable for branches or representative offices of
foreign companies)
Photocopy of applicants’ passports (with residence permit / visa details for non-GCC
nationals)
Photocopy of applicants’ naturalization identification for UAE nationals only.
Non-objection letter from the applicants’ current sponsor for non-GCC nationals.
Authorization of signature form (not applicable for establishments and civil works
companies)
Permission from the court to practice business, for applicants under 21 years.
Approval issued by other Government authorities according to the type of activity (if
needed).
General Documents Required for Final Approval for all business entities
Initial Approval receipt.
All documents submitted before in order to get the Initial Approval
Lease/A copy of valid lease contract in the name of the business entity
All foreign documents should be translated into Arabic by a Legal Translator, attested by the Ministry of
Justice and attached to the file submitted.
369
Chapter 7
Types of Business Licenses
in the UAE
By selecting the legal form of the business
entity, a business license must be obtained
from the same licensing authority. In general,
three different business licenses exist in the
UAE: commercial, industrial and professional.
In addition, a new business license – tourism
– was lately introduced by Abu Dhabi and
Dubai in order to best organize the business
Recieve
Initial Approval
Pay the Fees for Initial
Approval
Initial Approval
Obtained
Initial Approval
Submit the Required
Documents for Initial
Approval
370
activity. The below diagrams identify these
different types and its classifications in terms
of documents needed, special requirements
and examples of business activities that fall
under the respected license type.
As explained previously, these licenses are
all issued by the business licensing body of the
respective emirate (please refer to “Business
Licensing Authorities in the UAE page ).
Commercial
License
Professional
License
Types of
Business Licenses
in the UAE
Industrial
License
Why UAE ?
Tourism
License
Commercial License
License Type
Commercial License
Issued for
Business entities wishing to practice commercial activities in the UAE
Examples
Import, export, sell, distribute or store items
Banking and insurance
Hotels and transport
Commercial companies (e.g. LLC) must register the company Articles of Association in
the Ministry of Economy commercial registry
Industrial License
License Type
Industrial License
Issued for
Business entities wishing to practice industrial activities in the UAE
Examples
Discover natural resources
Transform raw materials in terms of its structure or appearance into manufactured or
semimanufactured products
Transform the semi-manufactured products into fully manufactured products by using
mechanical power, and segregate the products, filling,
Assembling or packing
A minimum capital of AED 250,000
371
372
Chapter 7
Professional License
License Type
Professional License
Issued for
Issued for business entities wishing to practice professional or artisan and service activities in
the UAE
Examples
Accounting and Marketing
Consultancy Services (law, medicine, engineeting and research activities)
Special Requirments
The number of staff members shall be limited
Can be 100% foreign owned if conditions met (check sole pro and civil companies in Business
Forms Section of this chapter)
The most common form of civil entity used by foreign investors
Tourism License
License Type
Tourism License (Only apply in Abu Dhabi and Dubai. In other emirates, tourism activities fall
under the commercial license.)
Issued for
Issued for business entities wishing to practice tourism activities in the UAE
Examples
Hotels and Restaurants
Travel Agencies and Tour Operators
Recreational and cultural activities – pictures and libraries
Sporting Activities – Adventure sports and amusement parks
Commercial companies must register the company Articles of Association in the
Ministry of Economy commercial registry
Why UAE ?
Previous procedural steps including
submitting the required documents as
indicated in the forms of the business entities
and the general documents section, and paying
the fees (for trade name reservation and initial
approval). This segregation is needed to best
organize the formation of business entities
and give investor the different options of
incorporating.
Some activities require an approval
from a third party, other than the licensing
authority of the emirate. The third party
could be a ministry, a national department or
a relevant local authority. The following step
is considered the most important procedure
in order to obtain a business activity, keeping
in mind that the larger portion of business
activities does not need an approval from third
parties such as trading.
373
Chapter 7
(Procedure Ends)
Final Approval
Pay Fees for Final
Approval
Submit the Documents
Required for Final
approval
Final Approval
Obtain Third Party
Approval if Needed
374
Third Party Approvals
By selecting the business license and the
legal form of the business entity wished
to be established in the UAE (outside free
zones), investors and businessmen should be
aware that some business activities require an
approval from third parties such as ministries
and other authorities. The chart below lists
the most common business activities in the
UAE and the third party approval needed
for each activity. For a detailed list of third
party approval, please refer to the website of
Why UAE ?
the licensing body of the emirate or the web
portals of the third parties bodies.
Obtaining a business activity that needs
an approval from a third party depends on
meeting the conditions set by the authority
such as the location of the business, the
technical staff requirements, the minimum
capital needed, etc. To obtain the procedures,
fees and regulations for each activity,
businessmen are strongly recommended to
visit the websites of the relevant authority.
Business Activity
Third Party Approval Authority
Banks, Money Exchange & Transfer,
Financial Consultancies
The Central Bank of the UAE
Insurance and Related
UAE Insurance Authority
1) Ministry of Economy and
All Industrial Activities
2) The Environment Department
of the Emirate
Hospitals, Private Clinics & Practices, Medical
Laboratories, Pharmacies
Ministry of Health
Car Rental Activities
Relevant Traffic and Transportation
Department of the Emirate
All Media Related Activities:
Advertising & Publicity Office, Drawing &
Scripting, Computer Trading, Digital TV &
Cable Services, Publishing, Broadcasting,
Distribution of Publishments
National Media Council
Accounts Auditing, Foreign Companies
Branches
Ministry of Economy
Babysitting Services, Nurseries
Ministry of Social Affairs
Labor Services
Ministry of Labor
Plant Nurseries, Farms, Cattle & Bird Trading
Fish Trading, Seeds & Fertilizers Trading
Quarries, veterinaries
1. Ministry Environment & Water
2. The relevant Environment Department
Organizing Hajj and Omrah Campaigns, Quran
Recital Centers
Islamic Affairs and Awqaf
Law Firms
Ministry of Justice
Private Schools, Kindergartens, Educational
Institutions, Gymnasiums
Ministry of Education
Air Transport, Air Cargo
1. Department of Civil Aviation
2. General Civil Aviation Authority
Telecommunications Equipments
Telecommunications Regulatory
Authority
Engineering and Construction
The Relevant Municipality of the Emirate
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Chapter 7
Check the availability
and Reserve a “Trade
Name” at the “Licensing
Authority”
Register the “Trade
Name” at the “Licensing
Authority” of the
Emirate
Select a Local
Sponsor or a Local
Service Agent
Pay Initial
Approval Fees
Trade Name
Reserved
Submit the License
Application and the
“Documents Required”
for Initial Approval at the
Licensing Authority
Select the “Type
of License” to be
Conducted
Select the “Legal Form”
of the Business Entity
Initial Approval
Granted
Select the “Activities”
to be Conducted
Obtain the “Third Parties
Approval” Depending of
the “Business License”
and “Activities”
Submit All the “Required
Documents” at the
“Licensing Authority”
for Final Approval
Pay the “Fees”
Final Approval
Granted
Why UAE ?
Pay Trade
Name Fees
Prepare all the
“Required Documents”
Depending on “Type of
License” and “Form
of Company”
Inscripte in the
Commercial Register if
Commercial Company
Trade Name Reservation fee
Trade Name Reservation
AED 200
Fees
If Trade Name Not-Arabic
AED 2000
Businessmen and investor come across
a different range of fees prior and after
incorporating their business entities. Most
of them are paid to the licensing authority
while some are paid to other authorities such
the relevant municipality. The fact box below
differentiates between the fees that are paid
for trade name reservation, initial approval
fees and final approval fees from those that
are applied once the entity is established.
If Trade Name Arabic
AED 1000
The provided fees underneath are for
establishing a business entity in Dubai.
However, Fees might slightly differ from an
emirate to another. To review a detailed list
of fees in each emirate, website of licensing
authorities are the best relevant source.
Initial Approval Fees
Preliminary Approval Fee
Registration Fees / Activities
(Percentage of the Activity fees)
Special Services Fees – VIP
(optional)
AED 100
100 %
AED 1000
Final Approval Fees
Commercial License Fee
AED 480
Professional License Fee
AED 440
Industrial License Fee
AED 600
Manager Insertion Fee
AED 500
Issuing Fee
AED 500
(Only for Commercial Companies)
Improve Services Fees
25%
(Percentage of the Activity Fees)
Market Fee
5%
(Percentage of Rental Charges)
Local Fees
AED
--
Cleaning Fees
AED
--
Advertising Sign Fees
AED
150
Activity Addition Fee
AED
500
License Renewal Fee
AED
500
Activity Change Fee
AED
500
Company Name Change Fee
AED
500
Legal Form Change
AED
500
Register Fees
AED
200
License Transfer Fee
AED
500
Legal Form Amendment Fee
AED
500
Temporary Advertising
Sign Boards
AED 1,100
Issue License of General
Trading
AED 15,000
Merger Fee
AED
Final Approval Fees
500
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Chapter 7
Commercial Registration is a condition
that precedes the operating of the business
activity. Within two months from the
date of establishment and preceding the
commencement of the business of a company,
every merchant, branch manager, managers
of commercial companies’ agents of foreign
companies must inscribe their companies in the
Commercial Register of the licensing authority
in accordance with the terms and conditions
determined by the law. Commercial Companies
and Branches of Foreign Companies must be
inscribed in the Register and Companies that
practice professional services are not subject
to this inscription.
Appointing a Commercial
Agent: An Alternative Form of
Investment
Carrying out business activities in the UAE
does not require foreign investors to maintain
a physical presence. Investors have the choice
to appoint a commercial agent to represent
their interest in the country. The Agencies
Law regulates and governs the appointment
of commercial agents, sales representatives
and distributors. According to this federal
legislation, a commercial agency is defined as
“any arrangement whereby a foreign company
is represented by an agent to distribute, sell,
offer, or provide goods or services within the
UAE for commission or profit”.
Commercial Agencies Requirements in the UAE
Must be a UAE national or a Company wholly-owned by UAE nationals
Agent must be registered at the Ministry of Economy as a commercial agent in order to gain the
protections of the Agency Law
Commercial Agency agreement must be written, notarized and registered in the
Ministry of Economy
Agent entitled to receive commissions on the sales he makes
The agency must be exclusive
Must be a UAE national or a Company wholly-owned by UAE nationals
Why UAE ?
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Chapter 7
Establishing a Free Zone
Business Entity:
Where some conditions are viewed
by foreign investors and businessmen as
restrictions in establishing a business entity
outside free zones, free zones in the UAE
were established to compete on attracting
foreign investments by providing outstanding
privileges and incentives especially for
international
entrepreneurs
who
seek
opportunities and grave for business success
and prosperity.
Over 50 free zones are scattered all over the
emirates. Some are designed as purposebuilt zones to serve a specific sector like
Dubai Health Care City and Fujairah Creative
City; and some were built to best utilize the
geographic location such as Jebel Ali Free
Zone. Since some free zones are dedicated to
serve a particular sector such as Dubai Internet
City, which a unique free zone dedicated to
IT and e-business companies, they only allow
the establishment of the business that fit their
specific categories.
Overall, free zones are united on two
main pillars; reducing bureaucratic steps and
allowing foreign ownership.
Before operating a business in a free
zone, the business entity must be registered
and licensed by the free zone authority.
Businessmen must choose the legal form and
type of license they will practice business
activities under.
Free Zones Incentives
and Benefits
A “one-stop-shop”
100% Foreign Ownership
0% Corporate Tax
Free Capital Transfer
0% Import and Re-export Duties
0% Personal Income Tax
Unlimited Foreign Employees
No Currency Restrictions
Low Operating Costs
State-of-the-art Facility
Effecient Communication Infrastructure
Why UAE ?
Forms of Business Entities
within a Free Zone
The below types of business forms are
generally offered in freezones. A free zone
does not have to offer all types. Some free
zones offer only one type such as FZCO. Please
contact the relevant freezone authority.
Free Zone Establishment
A Single
Shareholder
Free Zone Company
(FZCO)
2-5 Shareholders
Branches of Foreign
Coms.
Freelance Permit
Not a Separate
Legal Entity.
Not Offered by all
Free Zones.
Must follow the
Parent’s Company
Activities.
Only can Perform
a Freelance
Professional
Branches of Foreign
Coms.
Freelance Permit
Types of Licenses
Prior establishing a business in a free zone,
it is necessary to obtain a license from the free
zone’s authority. The license must relate to
the business activities the business entity will
undertake.
Mainly, there are four types of licenses
issued in the freezones.
Free Zone Establishment
Issued for
businesses that
wish to import,
export, distribute
and store items
specified on the
licence.
Free Zone Company
(FZCO)
Issued for
businesses that
wish to import raw
materials, carry out
the manufacture of
specified products
and export the
finished product to
any country.
Issued to businesses
wish to provide a
service like business
management,
marketing,
consulting, IT
within the free
zone.
Issued to industrial
companies
registered within
or outside the UAE,
provided they meet
the conditions of
having at least
51 percent GCC
equity and their
local production
accounts for at
least 40 percent
value added
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Chapter 7
Procedures and Documents
Selling Outside Free Zones
The procedures of establishing businesses
in the UAE free zones are very similar. The
following procedures and documents required
are shown only for demonstration purposes.
To obtain detailed procedures, documents
required and fees, please contact the free
zone authority.
In order to sell products outside free zones,
the business entity must appoint a UAE official
agent. Other, a 5 percent customs duty is
applied on most goods. However, obtaining
services and products from and within the UAE
is not confined to this restriction.
Documents Required for Business Entity in a Free Zone
Business Plan
Company and personal details (passport copy, etc.)
Certificate of Registration or Certificate of Incorporation or Certificate of Good
Standing of the Mother Company
Memorandum of Article and Association
Board of Resolution calling to establish a branch in the UAE (for establishing branches
only)
Appointment of Negotiator of Legal Representative (optional) Power of Attorney,
Specimen of his/her Signature and valid Passport Copy
Applicant’s Personal Details/Profile, Specimen of Applicant’s Signature and valid
Passport Copy
All documents must be notarized and attested
Why UAE ?
Fill out an Application
from the Relevant
Free Zone Authority
Select Type and Form
of Business Entity
Submit “Required
Documents”
Pay the Fees
A Legal Identity
Established
Select Business
Activities
Acquire a Lease
Premises
Obtain Operating
License
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Chapter 7
businessmen can select from a relatively
large number of either fresh graduates or
experienced employees.
Employment in the UAE:
Easy Regulations and
Spirited Workforce
Amid the developmental factors that
contributed to the evident growth in the
UAE across all fields, the role of the colleges
and universities could not be ignored. It
is the government’s belief on the human
factor as the prime pillar of consistent
development that drove the rise of the
universities and colleges in terms of number
and specialty. More than forty higher
educational institutes in the UAE pump the
market with qualified manpower. Today,
Register and Open a File
at the Ministry of Labor to
Recruit Staff
The labor law, generally, governs the
relations
between
employer/employee
relations such as working hours, termination
rights, medical benefits and repatriation.
The nationality is important when it comes
to employment. Employing a GCC-national
(Saudi Arabia, Kuwait, Bahrain, Qatar, the
UAE and Oman) does not require issuing an
employment visa. Expatriates, however, must
be sponsored to obtain a visa in order to
work in the UAE. The issuing authority differs
based on the location of the business entity.
The Ministry of Labor is the legal government
entity to be contacted for businesses
established in the UAE (outside free zones). In
contrast, businesses established in free zone
should contact the free zone authority to
apply for a visa for their employees.
Submit an Application at
the Ministry of Labor
An Emplyoment Visa is
Issued
Labor Card Issued by
Ministry
Why UAE ?
Employee goes Under a
Medical Test
Employment Visa
An employment visa is issued by the
immigration department of the emirate.
Approval must be obtained from the Ministry
of Labor, allowing a foreign national to work in
the UAE. Sponsorship is required to obtain the
visa. A business entity can sponsor a non-GCC
national in order to obtain an employment
visa.
Working Hours
The UAE Labor Law sets the maximum
working hours at eight hours per day, or forty
eight hours per week. However, for certain
industries such as retail trade, hotels and
restaurants, this extends to nine hours per day.
During the holy month of Ramadan, normal
working hours are reduced by two hours.
Under the same law, Friday is an official
day off but the government sector and many
organizations in the private sector give two
days off weekly which are Friday and Saturday.
The official working hours in both sectors
may vary depending on the emirate and the
department.
Holidays
There are eight days of public holidays
(paid) in the year, as shown in the table “Public
Holidays in 2012”. In private sector, annual
paid leave is usually 22 working days or 30
calendar days
Public Holidays (2012)
New Year’s Day
Jan 1, Sun
Prophet Mohammed’s
Birthday
Feb 5, Sun
Ascension of the Prophet
Jun 17, Sun
Eid al-Fitr
(End of Ramadan)
Aug 22,
Wed
Arafat (Haj) Day
Oct 25, Thu
Eid al-Adha
(Feast of the Sacrifice)
Oct 26, Fri
Al-Hijra
(Islamic New Year’s Day)
Oct 25, Thu
UAE National Day
Dec 2, Sun
Generally, they can be summarized as:
Government Sector:
7:30 am – 2:30 pm
Private Sector:
8:30 am – 4:30 pm
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Chapter 8
A Rooted Business Culture
“
Embedded openness, ingrained hospitable nature,
highly responsible manners, and continues drive for excellence
are characters carved in the Emirati personality. Those are the
ingredients making up the essence of the UAE’s success story.
“
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Chapter 8
T
he United Arab Emirates’ present-day
make-up is a balanced combination of
tradition and modernity. From the world’s
tallest skyscraper in Dubai to one of the
world’s spectacular mosques in Abu Dhabi,
both the Islamic heritage of the country and
the adopted global ethos sit happily side
by side, creating an indomitable cultural
society that offers the best of both worlds
to all who function within it. While the UAE
might be viewed as a more liberal society in
comparison to other countries in the region,
many present-day laws are rooted in Islamic
principles. Thus, a general overview of what
is acceptable in a Muslim society will help the
UAE’s newcomers to successfully integrate
into the local community.
Why UAE ?
The Emirati Identity
A lot has changed for the original
inhabitants of the UAE. In its earliest days,
the area now joined under the banner of the
United Arab Emirates was a split culture that
consisted of desert-oriented Bedouins and
seamen who dealt in trading and pearling,
across seven small, separate emirates. Despite
being individual entities though, the emirates
were interdependent with similar subcultures
that relied economically, socially and
politically on one another, casting somewhat
of a unifying web that allowed them to share a
common culture and, to a degree, a communal
social identity.
This remains true to this day. Each emirate
still has its own unique flavor, but the overall
feeling is one of unity and familiarity. Bedouins
may be a thing of the past and pearling may be
nothing more than an admired re-enactment
of days gone by, but the culture in the UAE
is still very much thriving, having adapted to
the global revolution better than any other
Middle Eastern country. Today, visitors can
spot an Emirati wearing jeans at a shopping
mall as easy as finding an Emirati wearing a
traditional kandoorah and ghetrah. Times
have changed, but traditions and customs are
still valued. A plenty of ways to experience
them are amidst the modern surroundings.
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Chapter 8
Modern Identity
The heritage of the UAE may go back
centuries, millennia even, but it is the cities
that are standing today that draw the most
attention. Think of Dubai and what comes to
mind? A glittering metropolis of extravagance,
entertainment and enjoyment, where living
is easy, business is good, and the sun shines
nearly every day of the year. Things in the other
Emirates are not so different; Abu Dhabi, for
example, is no less glittering than its sister city,
what with hosting the Formula One being only
one of the latest feathers in its multi-plumed
hat. This is where the old meets the new,
where the UAE is playing it smart and keeping
up with the times by creating a name for itself
by going above and beyond what would have
been expected from a Middle Eastern country
not so very long ago. It is undeniably modern,
but with a definite Arabian twist.
Why UAE ?
Burj Al Arab, Dubai
The Burj Al Arab dominates the Jumeirah
coastline, an impressive sail-like structure that
is repeatedly voted the most luxurious hotel
in the world and has been described as being
‘seven-star’. Popular with celebrities and others
affluent travellers, room rates aren’t cheap
– but you can get a peep inside by paying a
minimal fee.
Burj Khalifa, Dubai
Another record-holder for Dubai, the Burj
Khalifa is the tallest building in the world. Part
of the Downtown Dubai project, attached
to it is the world’s largest shopping and
entertainment destination, the Dubai Mall,
which even has its own aquarium – with the
world’s largest viewing panel.
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The Palm Trilogy and
The World, Dubai
These man-made islands are renowned the
world over and have sparked a regional craze,
if not an international one, for their innovation
and creativity. The Palms, consisting of The
Palm Jumeirah, Deira and Jebel Ali, and The
World, could quite possibly be considered the
ultimate symbol of how the UAE is bolstering
its appeal to the world, by demonstrating not
only its wealth, but its ingenuity too.
International Sports
A plethora of sporting associations hold
major events in the UAE every year. The
International Cricket Council has settled
in Dubai and Formula One is one of the
more recent additions at the Yas Marina
Circuit in Abu Dhabi, but the Dubai World
Cup has drawn in international horseracing contenders for years (champion
jockey Frankie Dettori now calls Dubai home)
Why UAE ?
no need for the part in brackets, several
high-stakes golf tournaments attract the top
sportsmen in that field, and the Dubai Duty
Free Tennis Championships call in the big
names… and that’s just to mention a few.
Saadiyat Island, Abu Dhabi
Yas Island, Abu Dhabi
Although it’s not yet complete, Saadiyat
Island, expected to be entirely finished in 2020,
is set to become the UAE capital’s cultural
hub. Alongside the residential and commercial
sectors there will be a Guggenheim Museum,
designed by Frank Gehry, a Louvre, a New
York University campus and an 18 hold
championship golf course and academy,
designed by Gary Player.
The go-to spot for, well, just about
everything, Abu Dhabi’s manmade island is
no small feat. It is currently home to the Yas
Marina Circuit, which hosts Formula One races,
Ferrari World (a theme park dedicated to the
car manufacturer) and the Yas Arena where
some of the biggest names in music have
performed, and soon to come are a whole host
of other attractions, including a Warner Bros.
Theme Park.
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Chapter 8
Down to Business
You may have fathomed the traffic systems
and got to grips with the weather, but do you
know how to walk the walk and talk the talk?
The Emirati Perspectives
It is essential to have at least a basic
understanding
of
the
concepts
and
perspectives that make the UAE society tick, as
many notions are held in a very different light
to how the Western world perceives them.
Religion
Very important. Religion is the key to life,
and everything is done by the will of God.
All mention of religion should be done in a
respectful manner.
Family
Very important. Families are a patriarchal
structure, and ties between family members
tend to be strong – even with distant cousins.
Honour
The honour of a family is often held
in higher regards than the wishes of the
individual; it is considered vital to maintain a
good reputation.
Shame
Shame is avoided as much as possible,
especially when it comes to family. Much as
with honour, it is more important to protect
the family honour than to acknowledge the
individual’s wishes. Slights against the family
are taken to heart.
Friendship
Considered important, but not valued as
highly as family, which will always come first.
Society
Family comes first. Islam encourages acts
of charity, and so most Muslims are generous
to those in need, especially when it comes to
human causes.
Respect
Very important. Respect is paid to elders,
with a special focus on age, wisdom, and, to a
degree, wealth.
Time
Very laid back. Don’t be surprised if an
appointment turns up late; time is considered
a rough guideline as to when something
should start.
Government
Laws are mostly secular and based on
Islamic beliefs.
Justice
Muslims believe that equality and justice
should be held in equal regard, and justice is
considered important.
Tradition
Held in high regard, even if it is being
overtaken by modern advances in some cases;
this can lead to a conflict of interests.
Why UAE ?
Interaction
While the UAE tends to be a lot more
welcoming of foreign customs than its fellow
GCC and Muslim countries, it is also important
to remember that the UAE is an Islamic nation,
which means that certain normalities that are
applicable in the rest of the world are not as
well accepted. Obviously the rules of common
decency will apply wherever you are in the
world, but bear in mind some of the points
mentioned in the following section, and
remember that being conservative is the best
way to behave.
How to Behave with Women
Women are respected in Islamic societies
for being the ones who give birth to and
raise the next generation.
In the UAE and even in other GCC countries,
they are very much a prominent part of the
workplace.
How to Deal with Government Authorities
Most expatriates appoint an Emirati to
handle ministerial-related matters, as they
are able to use contacts and know-how to
get the job done quicker.
Remember that English is spoken as a
concession, not a necessity.
Time runs on a different scale in the UAE to
the rest of the world.
Manners are important; you’re more
likely to be seen quicker if you’re patient
and respectful, than if you’re angry and
demanding.
Good to Know
The general reaction to someone losing their
temper or an overly serious situation is laughter,
as a way of clearing the air; it definitely isn’t
intended to anger you further!
(This depends on the personality of an individual)
Remember to respect a woman’s privacy.
It is best not to approach or speak to an
Emirati professional woman, unless it is for
business reasons.
Only shake hands if they offer their hand
first.
Be aware of boundaries; do not flirt, touch,
hug or maintain eye contact – definitely
don’t stare!
Some men may find it offensive if you ask
as to the well-being of the female members
of their family.
How to Get a First Meeting
You may find it difficult to establish initial
contact with someone on your first phone
call or email, especially if you haven’t met
the person previously.
Speaking to a secretary or personal
assistant will not necessarily land you a
meeting; most do not have the authority
to schedule their boss’s time, and will need
to seek his or her approval before doing so.
Due to the naturally hospitable trait of
emiratis, setting up a first meeting might
not be difficult Its advisable to make an
effort to contact the person one is trying
to visit through phone or email before
showing up.
If you already know someone, it is an
expected courtesy that you will call in to
visit them if you’re in their area. Be aware
that they will likely do the same for you
though.
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How to Give and Receive Gifts
You’ll find that giving and receiving gifts is
an important part of Emirati culture.
Be wary of the circumstances in which
you give a gift; offering one to a boss or
superior without due cause may look as if
you are trying to bribe them.
Different
Arab
nationalities
prefer
different gifts, on top of personal
preferences; a little bit of research can go
a long way!
A general rule of thumb is to always buy
the best quality gift within your budget,
from a reputable brand – and local is good,
too!
A well-received gift is traditional perfume,
which is as much a status symbol in the UAE,
though this should only be gifted to men
as it may be considered an insult for a man
to proffer it to a woman.
Incense is also popular, such as oud, but
again be sure to pay special attention to
the quality of the product.
Chocolate is always a popular choice, as
are traditional sweets such as baklava. It
is common for someone celebrating (a
wedding, birth, purchase of a new home
or car and so on) to bring in treats to share
with their colleagues.
What not to give: jewelry, silk garments
(for men; both are considered effeminate
items and should only be gifted to women),
alcohol, pork or pig products, overly
personal items, images containing nudity –
even artistic forms.
When receiving a gift, it is impolite to
refuse. Common courtesy applies; show
appreciation for the giver having gone out
of their way to find something for you.
Why UAE ?
How to Address Someone
While it may be fine to call someone by
their first name in the West, it is best to
start out relationship by using last names,
with a title affixed. There is no equivalent
to Mr. or Ms., however Sayed or Sayeda,
followed by the first name (for example,
Sayed Mohammed) will suffice.
An alternative is the use of the Kunya, or
a teknonym; Abu for men, or Umm for
women, which literally means ‘father/
mother of’. This will usually be followed
by the eldest son’s name (for example, Abu
Khalifa, or Umm Hussain).
Royal family members should be addressed
as in the West, using ‘His/Her/Your Highness’
Samu al-Emir, in Arabic, and Ministers and
Ambassadors should be ‘Excellency’.
Other titles that can be used are Doctor,
Shaikh (meaning ‘chief’; use Shaikha for
women), Mohendes (meaning ‘engineer’),
or Ustadh (meaning ‘professor’). Don’t be
surprised if colleagues working under you
call you Shaikh, as it is a sign of respect
and an acknowledgement that you are
in charge. Shaikh may also be used in the
same manner as ‘Sir’ (as in knighthood)
is used in the United Kingdom – always
followed by a first name only, e.g. Shaikh
Ibrahim.
It is the host’s place to set the topic of
conversation.
Conversations
You’ve got your first meeting, or you’re
about to go to a business lunch with new
colleagues, acquaintances or potential
business partners… but what do you talk
about? Here are some guidelines to help you
pick acceptable conversation topics – and to
let you know what to avoid.
A conversation will always begin with
platitudes – these may go on for some
time, and, in the case of two Arab
nationals greeting one another, will likely
be accompanied by kissing on the cheeks.
Pleasantries such as inquiries into health,
business and home country are more than
acceptable, as is a handshake – bear in mind
though that handshakes in the Middle East
are far softer than those used in the West,
so don’t just someone on the strength of
their grip!
If you arrive and there are already guests
in place, then you will be enlightened on
the topic of conversation and asked to
contribute to it.
Remember to always be polite. Being
forthcoming is fine, and a reasoned,
intelligent argument is welcome – so long
as it is presented in a courteous manner,
and does not fall into quarrelling or
bickering.
Provoking
feedback
through
your
conversation will place you in good stead
– so long as the feedback isn’t the result of
angered emotions.
Do not be afraid to disagree with an
opinion, bearing in mind the abovementioned points, as the object of raising
controversial subjects is to spark a debate
that isn’t for winning, but for enlightening
one another to views which may not
otherwise be known.
It’s considered more valuable to have a
conversation in which all parties involved
learn something.
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It is always safer to err on the side of being
too conservative.
What to Wear
The UAE’s weather is hot most of the year
– and very hot in the summer. Bear this in
mind when choosing clothing. Lighter
fabrics and natural materials, like cotton,
are most suitable.
While it may be hot outside, air
conditioning means that most interiors are
cool, sometimes to the point of being cold.
If possible, carry a wrap or a shawl in case
it gets too cold.
Remember that the UAE is a multicultural
society and therefore many forms of
national dress are visible on a daily basis.
Certain institutions (such as government
offices and places of worship) have stricter,
more conservative dress codes than
elsewhere. If in doubt, call ahead to check
what is acceptable.
Acceptable Dress Code in the UAE
Ocassion
Men
Women
Acceptable casual dress could vary
according to situation and place.
For example, wearing shorts during
excersicing is acceptable but it may
not be so in malls in some areas.
However, wearing longer trousers
or skirts and sleeved tops is more
advisable at all places.
Casual
Casual Western dress is sufficient.
Formal
Wearing an evening gown is fine,
though bear in mind the location
and the people who will be there.
Showing a little more skin is
National dress, tuxedoes, dinner
acceptable if you’re going to a
suits.
predominantly Western-attended
function or a ladies-only event, but
take a shawl with you to cover up if
needs be.
Business
Avoid figure-hugging clothing,
short hemlines, and plunging
necklines as much as possible.
Dependent upon the office, this
Trousers or a long skirt with a shirt
could be anything from suit and tie
(if it’s a light shirt, wear a vest
to shirt and jeans.
underneath to avoid underwear
showing through) will be suitable,
though office standards may vary.
Why UAE ?
Useful Arabic Phrases
English
Hi / Hello
Arabic
Salam / Asalaam Alaikum
(Peace be upon you)
Response:
Wa Alaikum Asalaam
(And peace be upon you)
Marhabah
Response:
Marhabta’n
Sabah Al Khair
Good morning
Response:
Sabah Al Nor
Good afternoon /
Good evening
Masah Al Khair
Response:
Masah Al Noor
Ahlan Wa Sahlan
Welcome
(Greeting)
How are you?
Response:
Ahlan Beek (to a man)
Ahlan Beech (to a women)
Ahlan Beekum (to a group)
Kaif Halek?
Response:
Al Hamdulillah, Bi-khair
(Praise be to Allah (well)
Ana Bikhair, Shukhran
(I’m fine, Thank you)
And you?
Wa Ant? (to a man)
Wa Anti? (to a women)
Goodbye
Ma’Salaamah
Response:
Fi Aman Allah
See you tomorrow Ashoofuk Bukhrah
Good to Know
When complimenting someone or something,
you can use ‘Ma’ashallah’, which means ‘What
Allah wishes’. This is especially used for health
and when complimenting beauty or success.
English
Arabic
Do you speak
English?
Titakellem Ingleezi?
I don’t speak
Arabic
Ana la atakellum Al Arabi
I speak Arabic /
Atakellum Arabi / Ingleezi
English
Thank you
(very much
Shukran (jazeelan)
You’re welcome
Afwaan
Yes
Na’am
No
La
Please
Min fudluk
No problem
Ma’afi mushkil
Sorry
Aasif
Excuse me
Afwaan
Today
Il youm
Tomorrow
Bukhrah
Hopefully
Inshallah
Congratulations
Mabrook
0- Seffr
1- Wahid
2- Ithnain
3- Thalatha
4- Arba’a
5- Qamsah
6- Sitta
7- Seba’a
8- Thamaniyah
9- Tissah
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Relocating to the
“
When the easy and cost-effective residency
procedures combine with an environment that is set
to incubate different cultures and nationalities from
all around the globe, the relocating process becomes
a tranquil and enjoyable experience.
“
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Chapter 9
it is a great place to raise a family or to further
careers, due to the ample job opportunities
and a decent standard of living on offer.
A
s much as its pulse peaks with the Burj
Khalifa, it also knows when to bow
down to culture and tradition – striking a
balance so unique that over 200 nationalities
have made the UAE their home away home.
Dubai and Abu Dhabi may have put the
United Arab Emirates on the world map.
However, with its contrasting landscapes, a
skyline that boasts the world’s tallest tower,
state-of-the-art facilities, a safe and welcoming
tax-free environment, the most coveted hotels
and designer brands, some of the world’s
largest shopping malls, upscale infrastructure
and technology, and an effortless blend of
modern meets traditional, there are many
aspects to this nation that set it apart from the
rest of its GCC cousins.
The world is watching the UAE. Its meteoric
progress and developments have made this
very young nation the envy of the region and
showcase to the world just what’s possible
with vision and an intelligent use of resources.
Most expatriates are lured by the fact that
Why UAE ?
Additionally, considering the fact that
there is no personal income tax, it is the ideal
place to save and repatriate money back home
too. This also facilitates shopping for goods at
tax free prices – one reason why the world’s
most recognized and sought after brands are
available here.
With nearly eighty per cent of people living
in the UAE being expatriates, there is an ample
choice of lifestyle, food and cultural options,
making it a great place to mix or match. This
is helped by the fact that the UAE is centrally
located which makes it an easy access point
from anywhere in the world – one reason why
it is a convenient place to relocate for most
since home is just a flight away.
Also, when moving out of one’s comfort
zone, a safe and secure environment is an
important factor for many. UAE’s low crime
rate and political stability ensure just that, as
do many other factors which will be explained
at length in this chapter.
However, it would be advisable to understand
the entry requirements and regulations to make
the move as stress-free as possible.
UK Citizens
Things to do Prior to
Arrival:
British citizens are eligible for a free visa on
arrival, which is valid for 60 days and can be
renewed for an additional 30 days by paying
an extension fee of Dh500 (US$ 137). Failure
to pay the fee or exit the country once the
extension period is over can result in a fine.
Obtain a Visa
Others
As with all developed nations, there are
certain criteria in place to procure entry into
the UAE. However, a well-equipped and
updated immigration system facilitates this.
While there are some categories and citizens
from certain nations that do not require prior
approval, others are required to follow a stepby-step process to secure a visa to the UAE.
Besides the UK, there are 33 other countries
whose residents enjoy similar privileges. These
include France, Italy, Germany, the Netherlands,
Belgium, Luxembourg, Switzerland, Austria,
Sweden, Norway, Denmark, Ireland, Greece,
Cyprus, Finland, Malta, Spain, Monaco,
Vatican City, Iceland, Andorra, San Marino,
Liechtenstein, United States of America,
Canada, Australia, New Zealand, Japan, Brunei,
Singapore, Malaysia and Hong Kong.
This depends on the type of visa one is
looking to procure, nationality, purpose of
the planned visit and its duration, and other
essential factors.
Regulations do change from time to time.
However, the basic criteria remain the same.
It is best to check with the travel consultant
and regional UAE embassy or consulate
prior to making any arrangements. The most
important factor to keep in mind is that one’s
passport must be valid for at least six months
- beyond the end of intended stay – before
applying for any type of visa to the UAE.
Essentially, there are five types of visas
namely residence visa, visit visa, family visa,
tourist visa and transit visa. Here, their purpose
and requirements is explained at length.
Obtaining on Arrival Visa
GCC Citizens
Citizens of Bahrain, Kuwait, Qatar, Oman,
and Saudi Arabia – better known as the Arab
Gulf Co-operation Council (GCC) member
states - do not need a visa. Expatriates from
the aforementioned countries are eligible for
a non-renewable 30-day visit visa upon arrival.
Visit Visa
This is the most sought-after type of visa,
especially by tourists who wish to spend more
than 14 days in the UAE. There are two types
of visit visas and both are non-renewable. The
long-term visit visa allows visitors to stay in the
UAE for 90 days, while the short-term visa is
valid for only 30 days.
Key Points to Remember:
The visitor must have a spouse or relative
who is a legal resident of the UAE - in order
to sponsor the visa.
Proof of marriage or justification for the
visit must be furnished prior to applying for
a visit visa.
The sponsor would be required to deposit
Dh 1,000 as a financial guarantee. This will
be refunded once the visitor exits the UAE.
Individuals with a visit visa will only be
allowed to re-enter the UAE if he or she has
stayed out of the country for a minimum
period of one month.
For Further Information for Visa
Abu Dhabi
UAE Federal Government
www.eg.ae
Tel:+971 6 00522222
Dubai
Naturalization and Residency Department
www.dnrd.gov.ae
Tel:+971 4 398 0000
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Chapter 9
cost - are issued only if a passenger has a valid
ticket for an onward flight.
Tourist Visa
Citizens of all other nationalities – from
countries not included in the aforementioned
list – would need to be sponsored by a resident
of the UAE, hotel, travel agency, or company,
in order to enter the UAE.
Tourist visa for a relative or friend can only
be sponsored by a legal resident of the UAE
who earns over Dh4,000 per month. Hotels
can also sponsor a tourist, only if the visitor
stays at the hotel. Laws in the UAE require
foreign guests to hand over their passports
when they check into a hotel. It is a normal
practice for hotels to take a photocopy and
return the passport to its owner. However,
some hotels insist on keeping the passport
until all payments are cleared.
Transit Visa
Certain UAE airlines offer to sponsor a visa for
their passengers as an additional facility. Also
known as a transit visa, this allows a passenger
entry into the UAE for a maximum period of 96
hours or four days. Such visas – normally free of
Residence Visa
Also known as an employment visa, such
visas are provided by an employer of the
individual. UAE employers may ask foreign
employees to deposit their passports with the
company as part of their terms and conditions
of employment. While this is not an unusual
practice, it is illegal under UAE labour law.
A visit visa can be transferred into a residence
visa by either re-entering the country or
facilitating the transfer at the Immigration
department.
A residence visa is valid for three years
from the date of issue, following which the
individual will have to undergo a medical
test for the visa to be renewed.
This will provide an individual with a health
card at a cost of Dh300 (US$ 82).
The health card - issued either by the
Ministry of Health or a recognized private
hospital - needs to be renewed every year.
Proceduer:
Fill out a visa application form and submit it to the sponsor along with copies of the valid
passport pages.
A tourist visa costs Dh650 (US$ 178) and requires seven days to be issued.
The tourist visa must be deposited at the relevant airport’s immigration counter at least one
hour before the visitor’s arrival.
Why UAE ?
Overstaying
Visitors who overstay without securing the
required permission or paying an extension
fee would incur a fine of Dh25 - Dh100 per day.
Exit Requirements
Family Visa
This type of visa is required if an expatriate
intends to bring a member of their family to
the UAE for an indefinite period of time.
A family visa can be acquired based on the
following criteria:
Cancel the visa before permanently leaving
the country. Failure to do this will result in
the individual being listed as an absconder
and could even lead to arrest on re-entry.
If the expatriate is subject to a travel ban,
is involved in legal proceedings, has unpaid
debt or are a child subject to a custody
dispute, they may be prevented from leaving
the country.
Expatriates or residents (also known as
sponsors) earn a minimum monthly salary
of Dh4000 or Dh3000 + accommodation.
A short term visa, valid for 30 days, can be
acquired for an application fee of Dh620
+ typing fees, while Dh1,120 + typing fees
needs to be paid for a long term visa which
is valid for only 90 days. Neither of the visas
can be extended beyond this period.
A deposit of AED 1,000 needs to paid,
which can be refunded after the relative
has left the country.
Documents Required:
A typed application form entailing personal
details.
Copies of the sponsor’s and family member’s
passports.
Passport sized photograph of the family
member.
Marriage contract attested by the Ministry of
Foreign Affairs or UAE Embassy in case the
expatriates wish to sponsor a wife or husband.
The birth certificates need to be attested in
case children are being sponsored.
Attested documents in case the relationship
cannot be proven in the sponsor’s or relative’s
passports. An attested work contract is also
required if the sponsor is working in a private
company or a salary certificate if he/she is
employed by the government.
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Visa Formalities for Parents
UAE expatriates with valid resident visas
must earn a minimum salary of Dh6,000 per
month with accommodation or Dh7,000 per
month without accommodation. This will
allow them to get a one year renewable
resident visa.
The expatriate would need to sponsor both
parents, but only after providing proof
that he/ she is the sole provider.
Documentary proof is also required if
the parents are divorced or either one
is deceased. The expatriate would also
need to obtain a medical insurance policy
for each parent that extends a minimum
coverage of Dh600 per year.
Documents Required for Parents Visa:
A typed application form that clearly entails all personal details.
Original passport of the sponsor.
Passport copies of the parent/s alongwith their passport size photographs.
Proof of relationship from the respective embassy/consulate, with proof that he/she is the sole
provider for their parent/s.
Copy of the employment contract and/or salary certificate from their employer.
The expatriate would also need to provide a copy of their water and electricity bill (authenticated
by the Dubai Water and Electricity Authority) and their tenancy contract as proof that they
have adequate space for their family members in their place of residence. This would need to
be stamped by the Land Department, certifying that the expatriate resides in a minimum two
bedroom apartment. In case the tenancy contract fails to mention this, an affidavit from the
landlord would need to be submitted.
Once all the documents are ready, these would need to be submitted to the residency
department of the respective emirate that one is a resident of.
A safety deposit (which varies from one emirate to another) would need to be provided, which
will be refunded when the visa is cancelled or in case a parent dies.
Once the parents enter the UAE based on the entry visa, the sponsor must convert it to a
residency visa in no later than 60 days from the date of entry.
Why UAE ?
Hiring a Maid
Domestic help is one of the most sought after
services in the UAE mainly due to the fact that
many expatriates can afford housemaids to do
their home chores or take care of their children
for very little money. There are guidelines
designed to make the process more transparent
for maids and sponsors. Unlike other types of
visas, domestic staff is subject to a different
sponsorship and visa approval system.
The sponsor needs to provide a salary certificate
in Arabic (in case they are employed by the
government) or a labour contract (in case they
are private employees), alongwith a tenancy
contract of a two-bedroom apartment.
A typed application form from an authorized
typing office.
Copies of the sponsor and maid’s passports.
Minimum three passport-sized photographs of
the maid.
An affidavit from the respective embassy/
consulate certifying that the maid and sponsor
are not related, especially if they are from the
same country.
Once all documents are in place, approach the
respective residency department for a ‘domestic
worker identity card’.
A refundable deposit of AED2,000 (about USD
545) needs to be paid which will be returned
once the housemaid permanently exits the
country.
Domestic workers do not have a labour card as they are not covered by the Ministry of Labour.
They must be personally sponsored by an individual who is usually male and the head of the
family and earns a minimum salary of AED 6,000 (USD 1,634) a month or AED 5,000 (USD 1,361)
plus accommodation. Bachelors cannot sponsor a maid.
The only countries from which domestic staff can be employed are Sri Lanka, Indonesia, India,
Ethiopia, Bangladesh and The Philippines. As per regulations set by their respective embassies,
an Indian or Filipino maid must be older than 30, but not more than 60 years of age.
Minimum wages for housemaids have been set by the embassies of their respective countries.
However, the monthly salaries differ for various nationalities. An Indian maid, for example,
must be paid AED 1,100 (USD 300) per month, while the minimum salaries for maids from the
Philippines and Sri Lanka are atAED 1,400 (USD 381) and AED 825 (USD 225) respectively. The
minimum wage limit for Indonesian maids is AED 800 (USD 217), while Bangladesh has set AED
750 (USD 204) as the salary limit for its nationals. All employers are encouraged to pay more
than the minimum.
Every housemaid is bound by a contract for one or two years – approved by the residency
department of their respective emirate - which is renewable. Once the contract expires, the
maid is free to leave and does not have to pay any severance charge to her employer.
Prior to applying for a residency visa, sponsors must ensure that the housemaid undergoes
certain medical tests, at least 30 days before her arrival in the country. These tests will screen
the maid for HIV/Aids, pregnancy, Hepatitis B, Syphilis, tuberculosis and leprosy.
Employers are obligated to provide a one-way ticket once the contract ends and the worker is
repatriated. Additionally, during the period of employment, a two-way ticket must be provided
to the maid once every year.
Employers can cancel their maid’s visa at any time. They can also report the maid in case she
absconds, following which a ban may be placed on the individual in the event of a breach of
contract or illegal activity. If a ban is placed because of a contract breach, it cannot be appealed
by the maid. The sponsor, however, can have this nullified at no particular charge.
Employers who indulge in hiring maids that do not have a valid visa/passport or are illegal can
be subject to a USD 19,061 fine, imprisonment for a month, followed by the deportation if the
employer is an expatriate. It is advisable to approach registered agencies to hire part-time help.
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Chapter 9
Housing and
Accommodation
Individual taste and preference is what
turns any house into a home. When moving
to the UAE, finding an ideal place to live –
in a community that reflects one’s needs
and requirements – is a major concern for
most. Fortunately, the UAE’s housing and
accommodation sector ensure that there is
something to suit every budget and lifestyle.
Many companies advertise rental
accommodation options, including private
villas and luxury apartments, in the classified
sections of local newspapers. Moreover,
specialized housing agents are always on
hand to assist with relocation and house
hunting. There are no limitations for
expatriates looking to purchase a property
as part of their relocation plan to the UAE.
Should an individual wish to take more time
before buying an apartment or villa, a wide
variety of options including five-star, fourstar, three-star, budget hotels, furnished
and semi-furnished hotel apartments help
facilitate this.
Additionally, when renting a property,
there are various mortgage options to
finance a purchase. However, it is advisable
to study residence options as per budget,
travel convenience and other individual
factors before finalizing a property to
rent. Having said that, it’s easier and more
convenient to rent an accommodation rather
than purchase a property.
Before deciding on whether to rent or buy a
property, it is best to rule out the following
points first:
How much is the rent or installments – is it
paid weekly, monthly, quarterly or yearly?
Research the seller, the area and community,
neighbours, market value and best areas to
reside in.
An individual is required to pay annual
rent in advance either with post-dated
cheques or cash. The number of cheques
or installments to be paid varies from one
landlord to another.
A refundable security deposit will also be
required at the time of agreement.
Once the terms and conditions of a
tenancy contract have been decided upon,
it is imperative that all lease agreements
are registered with RERA (Real Estate
Regulatory Authority) as otherwise neither
party can assert their claim in case of a
dispute.
Property agents who act as middlemen
between the tenant and landlord usually
charge a commission.
Documents Required:
A valid passport.
A valid residence visa.
A salary certificate – this is a testament of an
individual’s income, his or her employment
and financial status.
Why UAE ?
Freehold Property Purchase
This option is available on almost all
developments in the UAE, with a mixture of
freehold and a 99-year leasehold property in
some cases. Expatriates with a valid residence
visa and even overseas investors can purchase
property in the UAE.
After thorough research – which can either be by liaising with authorised property agents or by
scouring on the internet - decide on a budget and secure financing before choosing a property.
Expatriates can only purchase property in areas that are specifically designated for them.
There are a wide variety of mortgage options to choose from. This includes local and international
lending facilities. While most overseas banks do not directly provide such facilities for purchase
of UAE properties, arrangements can be made with favourable international interest rates, if
one has assets overseas.
It is best to secure a loan as most banks require the amount to be repaid from an insurance
policy, in case of emergencies.
The payment terms are usually at an average deposit of between 10 and 20 per cent of the
price. This would need to be paid during the contract-signing stage for all new development
properties.
Once the initial payment has been made and based on the agreement between the buyer and
the seller, other stage payments would follow through to completion.
An investor does not need to have a local bank account to buy property in Dubai, especially
since most banks extend an easy funds transfer facility from their client’s current account to the
necessary developer, landlord, or real estate agency in the UAE.
It is advisable to consult a lawyer before finalizing any property deal or when buying property
from the second hand market to avoid any unforeseen circumstances or legal tussles in the
future. Reputed developers, however, do not pose any such threat.
UAE charges a minimal development fee for maintenance and landscaping. This service charge
varies from one development to another and based on facilities offered.
Once purchased, an owner can rest assured that he or she will not be required to pay a
government tax against the property. However, there is no Capital Gains Tax on the property
either. Once a title is registered by the Dubai Lands Department, owners will be required to pay
a 1.5 per cent registration charge based on the purchase price of their property. In case of a
mortgage, the payment would be 0.25 per cent of the total value of the loan.
Investors do not require a residence visa to purchase property in the UAE. On the contrary, an
investor becomes eligible to apply for a residence visa on the purchase of a freehold property.
However, the purchase of a property is not the sole reason for an individual to be granted a
residence visa – this is based on the sole discretion of the immigration authorities.
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Chapter 9
representative offices of foreign banks. Both
Islamic (Sharia’a-compliant) and regular banks
are all governed by the Central Bank of the
UAE.
Banking Processes and
Procedures
Banks in the UAE offer varied choices
that are at par with international standards.
There are both locally incorporated as well
as foreign banks, both commercial/retail and
investment. In most cases, the foreign banks
also offer non-resident accounts to be opened
if it has a presence in the account holder’s
home country. The UAE is also home to several
renowned Islamic or Sharia’a-compliant
banks and institutions, including Dubai
Islamic Bank, the world’s first Islamic bank. At
present, the number of commercial banks in
the UAE is close to 47 including both locally
incorporated and foreign ones, aside from nine
Documents Required:
Passport with residency (original and copy)
The individual has to personally carry their
original passport with copies of the same
with the residency visa stamped
A letter of no-objection or NOC from the
employer/sponsor
Procedure:
The required documents must be taken to
the choice of bank and in most cases, an
account will be functional within 48 working
hours, while the cheque book and ATM/
Debit Card could take up to a week.
NOC
The “Letter of No Objection” or a “No
Objection Certificate” (NOC) from the
employer or in the name of the company
signed by the authorised signatory and
stamped. The letter should stipulate salary
and date of joining. Some banks require
tenancy agreement to establish the account
holder’s residential address. Additionally,
the employee should have completed 3 to 6
months in the company to be eligible to open
an account. The employee’s dependants or
immediate family can open an account with
the individual’s signed permission, is the
employee is their sponsor.
Why UAE ?
Initiating Accounts
Opening a commercial bank account for
individual purposes in the UAE requires very
simple procedures, but sometimes these
vary from bank-to-bank and account type.
Expatriates must have a valid residency visa
with an expiry date of not less than 1 month
to open an account.
Accounts
Largely, the main types ofaccounts that can
be opened are Current, Savings and Deposit
Accounts. Current Accounts Offer a cheque
book facility, but require a minimum account
balance while Savings Accounts have no
cheque book facility and in certain case, only
an ATM car and no minimum balance required.
The Deposit Accounts vary according to the
fixed savings/amount, tenure and interest
accrued.
Deposits and Withdrawals
There are ample ATMs located across the
UAE for cash withdrawals, which can also be
used for making utility bill payments, while
the same also house Cash Deposit Machines
(CDMs) for credit card payments and account
deposits. Overdrawing on the accounts is done
only with prior application and approval from
the bank.
Issuing Cheques
The layout of cheques is similar to UK or
American cheques and these can be easily
filled with information listed in both English
and Arabic. Although cash or debit payments
are preferred for everyday transactions in
Dubai, a large number of service providers
require personal cheques for regular payments
like tenancy payments or guarantees in case of
loans, mortgages and utility services. Cheques
are mostly not accepted by local retailers. It
is important to note that issuing a cheque
without the necessary funds in the account is
a criminal offence in the UAE. If the cheque
bounces, the bearer can file a criminal case
against the issuer. This could result in a travel
and/or immigration ban on the defaulter.
Credit Cards
Most banks issues credit cards which carry
set interest rates, while in the case of Islamic
banks, a pre-listed fee is charged. Every bank
has different salary and employment tenure
criteria for issuing cards, while all of them
require a cheque as a guarantee. Nonpayment of credit card dues can also be a
criminal offence if the cheque is deposited and
returned due to insufficient funds.
Bonds and Savings Certificates
Some banks and financial institutions, both
regular and Islamic, offer fixed bonds and
certificates as investment or saving vehicles.
These offer attractive returns or interest and
can be encashed at any time at the same bank
or institution.
Currencies
Although AED is the currency of record, in
some banks, savings accounts can be opened
in major foreign currencies, predominantly
USD and GB£.
Salary Transfer
Having the salary transferred to an account
is required to apply for loans, mortgages,
utility services or tenancy contracts, as a bank
statement is usually required along with a
proof of income.
Services
As with all global banks, all standard
banking services are offered by UAE banks.
These include cheque clearance, standing
orders, direct debits, salary transfer and credit
card repayments. Most of these transactions
per year are usually free, including withdrawing
cash from any of the bank’s ATMs, although a
nominal fee is charged for withdrawals from
other banks’ ATMs.
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Chapter 9
Essential Do’s and Don’ts
As with any other country, there are certain
rules and regulations that must be adhered
to in the UAE too, in order to ensure a safe,
secular and respectful environment for all.
Here’s a checklist of essential dos and don’ts.
Dress Code
Emirati men or Arab citizens from GCC
states usually wear the traditional clothing
of their native country. Many Muslim women
cover their hair with a scarf and wear a long,
black robe called the abaya.
Key Points for Dress Code for Expatriates:
It is essential for men and women to dress
modestly at all times.
All malls advertise the type of clothing that is
considered permissible while shopping in the
UAE. Please read these instructions carefully.
Swimming attire can only be worn on
beaches or at swimming pools. Topless sunbathing is not allowed.
Drugs and Alcohol
UAE adopts a zero-tolerance policy for
drugs and alcohol - it is a punishable offence to
drink, or to be drunk, in public. To purchase or
consume alcohol in the privacy of their homes,
Why UAE ?
residents can obtain a liquor license. However,
the license will be applicable only in the
emirate where it has been issued - a permit
issued in Abu Dhabi, for example, is not valid
in Dubai. Any alcohol consumption is illegal in
Sharjah. The penalties for drug trafficking or
smuggling are severe. The possession and/or
import of even the smallest amount of drugs
can result in a minimum prison sentence of
four years.
Languages Used
Arabic is the most commonly spoken
language, followed by English, French,
Russian, Hindi and more. Almost all official
documents, forms, laws and decrees are in
Arabic. Therefore, it would be advisable to
have working knowledge of the language.
Medication
Some prescribed and over the counter
medicines that are available outside of the
UAE are considered controlled substances
within the emirates. It is best to procure a
prescription or prior permission from the
UAE’s Ministry of Health before travelling with
any such medicine to the UAE. Failure to do
this may lead to prosecution under UAE law.
For more information and to view the list of
controlled medication, visit the Ministry of
Health’s website: www.moh.gov.ae.
Etiquette
UAE is very particular about public displays
of affection and there have been several
arrests for kissing in public. Sex outside of
marriage is considered illegal and unmarried
couples indulging in adultery risk prosecution,
imprisonment and/or a fine and deportation. If
an unmarried woman gives birth in the UAE and
is brought to the attention of the authorities,
she may face severe punishment - ranging from
a refusal to issue a birth certificate to arrest
and imprisonment. Cohabitation (including
in hotels), cross-dressing and homosexual
behaviour are also banned in the country.
It is imperative to avoid using obscene
language or make rude gestures in public as
offenders have, in the past, received six-month
jail sentences for such acts. Some have also
been deported. Be aware to avoid prosecution.
Censorship and Photography
of residence first before deciding to bring pets
into the UAE.
Photography of certain
buildings is not permitted.
government
It is advisable not to photograph
people (especially women) without their
permission.
Do not take pictures of military sites.
Avoid bringing any magazines, DVDs or
books with pornographic content into
the UAE. Certain international magazines
and newspaper sold in the UAE are
censored – all objectionable material is
marked in black, while intimate scenes
in films shown in the UAE movie theatres
are censored.
Pets
The UAE places no restrictions on bringing
pets into the country. However, if an individual
opts to rent an apartment, the confined space
can prove to be a hassle for both the pet and
its owner. Additionally, unfavourable climatic
conditions make it difficult to leave pets
outdoors. Research and decide on the choice
Pets from some countries would need to
take a blood titter test to check for rabies.
This does not apply to pets arriving from the
US, Canada, an EU Country or a country that
is considered to be “free of rabies”.
Owners can only bring in their pets as cargo.
No airline allows pets to travel with its owner
in the cabin of the aircraft.
It is important to procure an import paper
from the Ministry of Agriculture & Fisheries
prior to a pet’s arrival. This is valid for 30
days from the date of issue.
To obtain the import permit, the owner needs
to submit an application form identifying the
pet based on its type and colour. The form
would also identify the owner.
Along with the form, the owner would also
need to furbish copies of his or her passport
and valid residency visa.
Another important document to be included
is the pet’s full vaccination card/certificate
clearly detailing its history of vaccinations.
It is essential to micro-chip all dogs and cats
before their arrival in the UAE. The vaccination
card would need to display the micro-chipping
details. If handwritten, it would need to be
stamped by the veterinarian.
413
414
Chapter 9
Education
With an influx of nationalities streaming
into the UAE each year, catering to multicultural needs and requirements - especially
in complex fields such as education - can be
a mammoth task. However, the UAE does
this with aplomb. Irrespective of whether an
expatriate student is used to an O level or A
level type of education or has had another
educational background, schools in the
emirates have courses to suit all palates.
One of the great things about education
and schooling in the UAE is the opportunity
to interact with students from
various
nationalities and backgrounds, which in the
long run ensures greater global awareness.
This is possible through a wide variety of
curriculums on offer which includes American,
British, Australian, French, German, Indian,
Iranian, Japanese, Russian and of course
Arabic.
To ensure all schools meet parents’
expectations, the Knowledge and Human
Development Authority took it upon itself
to grade each school based on performance,
facilities and level of education by providing a
detailed report on every school each year.
Besides a wide variety of primary school
options, the UAE also offers the best in
higher
education facilities. A dedicated
complex for world-renown universities and
campuses ensures expatriates and residents
do not have to look elsewhere to offer the
best in education to their wards. Also known
as the Dubai International Academic City, this
educational free trade zone houses some of
the most sought after universities with over
400 institutions operating within the city.
For more information on each school,
log on to
www.khda.gov.ae/en/news/khdanews.aspx
For more information, log on to
www.diacedu.ae / www.kv.ae
Parents and students looking to make
enquiries and lodge complaints about
education and schools in the UAE can also
contact the
The Ministry of Education - UAE
Call: 800-51115
It is best to physically visit a nursery, school, college, or university in as a first-hand impression
is worth far more than any information available on the internet, or advice provided by
educational consultants.
Most school websites provide a detailed overview of the curriculum and programs on offer.
While this makes for ample reading material, word of mouth is sometimes also a good way to
go.
Most institutions do not encourage a child to switch schools during the academic year, unless
approved by the Ministry of Education or in special cases.
Another important factor to remember is that majority of the schools begin their academic
year from September, instead of April / May.
Why UAE ?
List of Driving Schools
Abu Dhabi
Driving and Etiquette
Learning to drive in the UAE is relatively
easy. As with all nations, there are certain
rules and regulations that must be adhered
to. In order to procure a UAE driving license,
an individual needs to be 18 years of age and
above.
Documents Required:
A no-objection letter from the sponsor.
Original passport and copies.
Copy of a valid residence visa.
Eight passport size photographs.
An eye test certificate listing the condition
and health.
Driving Do’s and Dont’s:
Al Aqeed Driving School, 02-642-4577
Al Aqeed Driving School, 02-642-4577
Emirates Driving Company, 02-551-1911
Dubai
Al Ahli Driving School, 04-3411500
Belhasa Driving School, 04-3243535
Dubai Driving Center, 04-3455855
Emirates Driving Institute, 04-2631100
Galadari Driving School, 04-2676166
Sharjah
Al Badoor Motor Driving School, 06 5650487
Al Deyar Driving School, 06 5656285
Al Nasr Driving School, 06 5647111
Do follow the rules and speed limits of the
emirate you are travelling in at all times.
Do not indulge in ‘road rage’ such as rude
gestures or verbal abuse when driving or
if involved in an accident, as this can attract
penalties such as fines, a jail sentence, and
possible deportation.
In case of an accident, alert the police first. It
is an offence to leave the scene of the accident
before the police have arrived.
Do not drink and drive as this is considered a
serious criminal offense. Should an individual
be caught in the act, his/her insurance is likely
to be invalidated, which means the offender will
have to pay the claims of all parties involved in
an accident, if any. Offenders caught drinking
and driving also risk imprisonment.
415
416
Chapter 9
Ramadan in the UAE
Places of Worship
All individuals are expected to extend basic
respect and courtesy to Muslims fasting during
Ramadan. A clear guide is available on arrival
at all major airports. One of the great things
about education and schooling in the UAE is
the opportunity.
UAE has some of the most beautiful
mosques in the region, with one in almost all
major areas and communities. Some mosques
such as the Sheikh Zayed Grand Mosque
and Jumeirah Mosque in Dubai have touring
options for non-Muslims too.
Churches
Do not eat, drink or smoke in public view
during the day (including in the car). This is
considered highly disrespectful and is also
against the law. Failure to comply could
result in arrest. Pregnant, nursing women
and young children are exempt from fasting.
However, it is advisable to exercise discretion
at all times.
Abu Dhabi
St. Joseph’s Cathedral
Tel: +971 2 446 1929
Al Ain
St. Mary’s Church
Tel: +971 3 721 4417
Sharjah
St. Michael’s Church
Tel: +971 6 566 2424
As per law, almost all eating and drinking
establishments will not be operational during
the day.
Dubai
Dress modestly. While it is advisable to avoid
skimpy clothing at all times, particular caution
must be taken during Ramadan so as not
offend religious beliefs and the local customs
and traditions.
Fujairah
Loud music and dancing is considered
disrespectful during the month. Kindly avoid.
Why UAE ?
St. Mary’s Church
Tel: +971 4 337 0087
Church of Our Lady
of Perpetual Help
Tel: +971 9 223 1377
Temples
Dubai
The Shiva Mandir and
Krishna Mandir, Bur Dubai
Hospitals & Health Services in the UAE
Sheikh Khalifa Medical City
Tel: +971 2 819 0000
Health Services on Offer
Hospitals and health care providers in the
UAE offer some of the most advanced and
diverse facilities - a testament of the emirates’
thriving health care system. Well-equipped
private and public hospitals and clinics extend
the best in specialized health care through in
and out-patient facilities at world-recognised
institutions. Health insurance is essential,
irrespective of whether an individual is on a
tourist visa or has been sponsored for a visit.
Most employers offer insurance coverage
at a premium. Insurance can also be bought
through different service providers at a fee. It
would be advisable to contact your sponsor or
agency for a list of health insurance options.
Emergency Contacts
Abu Dhabi
Al Noor Hospital
Tel: +971 2 444 66 55
Rashid Hospital
Tel: +971 4 337 1111
Dubai
Sharjah
Ajman
Umm Al
Quwain
Ambulance - 998
Abu Dhabi - 02 446 1461
Ras Al
Khaimah
Dubai - 04 229 2222
Sharjah - 06 563 1111
Al Maktoum Hospital
Tel: +971 4 2221211
Dubai Hospital
Tel: +971 4 271 4444
Al Wasl Hospital
Tel: +971 4 2324 1111
Police - 999
Fire - 997
Mafraq Hospital
Tel: +971 2 25011111
Fujairah
Al Qasimi Hospital
Tel: +971 6 538 6444
Khalifa Hospital
Tel: +971 6 743 9333
Ajman Hospital
Tel: +971 6 742 2227
Umm Al Quwain Hospital
Tel: +971 6 765 6888
Saqr Hospital
Tel: +971 7 222 3666
Al Nakheel Hospital
Tel: +971 7 222 3555
New Fujairah Hospital
Tel: +971 9 224 2999
417
418
Chapter 9
wildlife such as the Arabian Oryx and gazelle,
to name a few. for more information
www.awpr.ae
Lifestyle and
Entertainment
As much as the UAE prides itself in being a
hub of culture and tradition, its wide variety
of entertainment options is also a testament of
the country’s secular nature. Many expatriates
make the most of their tax free lifestyle by
indulging in high standard international
cuisine at world-renown restaurants. There
are numerous night clubs around the emirates
too. Some of the clubs attract international DJs,
including talent from the Middle East and Asia
and the rest of the world. Clubbing facilities in
Dubai include sophisticated cocktail lounges
serving an eclectic mix of cuisines and drinks
and the best in live music and entertainment.
Another feature is the emirate’s emphasis on
featuring the best talent of the music industry,
be it by way of numerous piano and jazz bars,
world renowned singers or gems from the local
talent pool.
Al Ain Wildlife Park and Resort
Al Ain Wildlife Park and Resort is one of
the best conservatories in the region where
visitors are treated to a unique glimpse of
some of the animals that comprise UAE’s
Al Bastakiya-Dubai
It’s easy to forget the hustle and bustle
of the modern world once you’re tucked into
a Sikka (narrow alley) in Al Bastakiya. One
of the oldest residential areas in the city,
where houses were once built for the Iranian
merchants.Where once wealthy traders and
pearl divers lived, the area has been protected
and is now home to museums, coffee shops
and art galleries that are open to all.
Al Mamzar Beach Park
One of Dubai’s most popular parks, Al
Mamzar houses an amphitheatre, with plenty
of picnic spots and a well-equipped children’s
playground. The park is neatly surrounded
by beaches that have sheltered areas for
swimming with ample security in the form of
trained lifeguards.
Open Hours: 8am-11pm daily, 8am to
11.30pm on Thur and Fri.Wed only for ladies.
Atlantis - Aqua Venture
Relatively new hot spot for water sport
activities that promise to leave visitors with an
experience of a lifetime. Unique selling Point –
its Leap of Faith ride.
www.atlantisthepalm.com
Camel Racing
The Dubai World Cup may be one of the
richest horse races in the world, but camel
racing is by no means less appealing in the
Emirates, since the former UAE president,
Shaikh Zayed, endorsed the sport and offered
financial aid to citizens who cared for the
camels. There are 15 racetracks located
throughout the country, with races taking
place on Thursdays, Fridays and Saturdays
throughout the winter season.
Desert Safari
While it is, admittedly, a trip that is tweaked
to appeal to the tourists’ tastes rather than a
Why UAE ?
true representation of what Bedouin living
in the UAE was like, a desert safari will
nevertheless allow you to experience the wild
world beyond the city’s tarmac and towers.
Dune-bashing, camel-riding, henna, bellydancing and traditional food can all be found
on the various tours offered from each of the
Emirates.
Dreamland Aqua Park
It would not be incorrect to say that this
park put Umm Al Quwain on the world map.
Considered one of the largest water parks
in the region, Dreamland offers a variety of
programs and hosts special events throughout
the year.
www.dreamlanduae.com
Dubai Aquarium
Located in the Dubai Mall, this 10-million
litre tank is one of the top draws in the
UAE, mainly due to its massive size and an
underwater zoo tour attraction.
www.thedubaiaquarium.com
Dubai Meusium
Located within Al Bastakiya, Al Fahidi Fort
is the oldest building in Dubai, having been
built in 1899 to defend the emirate against
sea attacks. It was expanded on in the 1830s18502, and today is considered to be one of
the most important historical monuments
the city has. The fort has housed the Dubai
Museum since 1970, showcasing the cultural
history of the area, going back as far as 30004000 years ago.
www.thedubaitourism.com
Ferrari World
A theme park that focuses on the fast
and the furious, Ferrari World is a must visit
spot irrespective of whether you are a sport
enthusiast or not.
www.ferrariworldabudhabi.com
419
420
Chapter 9
Heritage Village - Abu Dhabi
Replicating a traditional oasis village, you
won’t find anywhere better to get a real look
at what the days of yore were like for the
Emirati people. Complete with a tent made
from goat hair, a falaj irrigation system and
a campfire with customary coffee pots, you’ll
find workshops given by traditional craftsmen
to demonstrate the skills that their forefathers
were famed for – metalwork and pottery for
the men, and weaving and spinning for the
women.
Hili Archaeological Gardens
Located 10km outside Al Ain, historians
assert that the most untie feature about this
park are the remnants from a Bronze Age
settlement (2,500 2,000BC, excavated and
restored in 1995) and a number of national
treasures displayed at the museum.
Jumeirah Beach Park
The preferred park for most Western
expatriates, JBP boasts a beach front and is
frequented by tourists who are lured by its
clean waters and round-the-clock security.
Location: Opp Chilli’s Restaurant on the Beach
Road, Jumeirah.
Open Hours: 8am-10:30pm daily. Thur & Fri
till 11pm.Saturday for children and ladies only
Saadiyat Island
A natural island, Saadiyat is currently
undergoing development on a massive
scale and once completed it will house the
Abu Dhabi Louvre.
www.saadiyatisland.com
Sir Bani Yas Island
This island has been named after the Bani
Yas tribe, who first inhabited Abu Dhabi. A
natural reserve, it also houses a five-star resort.
www.desertislands.anantara.com
Why UAE ?
The Creek - Dubai
Splitting the city in two, the Creek (also
known as Khor Dubai) was once a lifeline for
Dubai’s industry. Still a bustling thoroughfare
today, you’ll find plenty of boats riding the
waves, from dhows to more modern affairs,
and there are a number of tours you can
take along it, from day-time tourist rides to
romantic evening dinner rides. Or, hop on an
abra, a cheap taxi boat that will take you from
shore to shore.
Tour a Mosque
Two of the best examples you can
experience are the Shaikh Zayed Mosque in
Abu Dhabi, the eighth largest mosque in the
world and home to the world’s largest handwoven carpet, and the Jumeirah Mosque in
Dubai. Both are open to non-Muslims for
guided tours which will offer an invaluable
insight into the local religion, plus a unique
opportunity to see the exquisite Islamic
architecture both buildings demonstrate.
Visitors should dress conservatively, though.
Wild Wadi
A water park to suit all ages. Located
between Burj Al Arab and Jumeirah Beach
Hotel in Dubai, Wild Wadi is the ideal place to
be to have some fun in the sun.
www.wildwadi.com
Geting Around
Land Transport
UAE’s public transport system is one of the
best in the world with a widely connected
network of buses, taxis and a Metro link in
Dubai. The Dubai Metro connects all major
areas of old and new Dubai, with construction
underway to launch new routes. Metro users
are required to buy a one-time Nol card which
needs to be recharged once all funds have
been exhausted. It is the most preferred mode
of transport within Dubai due to its state-ofthe-art facilities, easy access, cheap fares and
level of comfort.
Additionally, a high-speed rail service between Abu Dhabi and Dubai carrying
passengers at speeds of up to 200kph - is to
become a reality soon after the Union Railway
proposed adding a link between the two
emirates. Once the proposal materializes it
would be the only dedicated passenger line on
Union Railway’s freight-focused network.
dubaimetro.eu
Water Transport
Also known as Abras, water taxis are a
preferred favourite for over 15,000 who
commute between Deira and Bur Dubai each
day. They are operational from 5am to 12am.
www.rta.ae
Air Travel
Brands in itself, Etihad Airways and Emirates
Airline have now become the symbol of the
UAE.To make bookings for holiday packages or
for convenient travel options, contact:
Etihad Airways
02 505 8000 or 800 2277
02 6939711 / www.etihadairways.com
Emirates Airline
04 21 44444 / www.emirates.com
Budget Airlines in the UAE
Air Arabia
04 3325555 / www.airarabia.com
RAK Airways
07 2075000 / www.rakairways.com
Fly Dubai
04 301 0800 / www.flydubai.com
421
Investing in the future
Borouge has an annual manufacturing capacity of 2 million tonnes of polyolefins in Abu Dhabi,
three logistics hubs in Asia, compounding facilities in China, and sales offices throughout the
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customers.
R
Borouge, a joint venture between ADNOC and Borealis, is making a difference to everyday life.
About Borouge
Borouge is a leading provider of innovative, value creating
plastics solutions.
A joint venture between the Abu Dhabi National Oil
Company (ADNOC), one of the world’s major oil and gas
companies, and Austria based Borealis, a leading provider
of chemical and innovative plastics solutions, Borouge is a
groundbreaking international partnership at the forefront of
the next generation of plastics innovation.
Borouge has its headquarters in the United Arab Emirates
and Singapore, employs approximately 1,600 people
representing more than 40 nationalities and serves
customers in more than 50 countries across the Middle
East, Asia-Pacific, Indian Sub-Continent and Africa.
Building on Borealis’ unique Borstar® technology and
experience in polyolefins for more than 50 years,
Borouge provides innovative, value creating plastics
solutions for the infrastructure (pipe systems, and power
and communication cables), automotive and advanced
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In 2010 Borouge tripled its annual production capacity in
Abu Dhabi to 2 million tonnes and an additional 2.5 million
tonnes per year will be introduced by mid-2014 to create
the world’s largest integrated polyolefins plant. Borouge
is also investing in plants and logistics hubs in Asia and
an Innovation Centre in Abu Dhabi. Today Borouge and
Borealis have a manufacturing capacity of over 5.4 million
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Focused on Value Creation through Innovation they
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Borouge is committed to the principles of Responsible
Care® and together with Borealis proactively contributes
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Visit www.borouge.com and see how we are Shaping the
Future with Plastics.
Our Products
The unique Borstar® process and catalyst technology enables Borouge to provide a differentiated range
of polyethylene and polypropylene innovative plastics solutions for infrastructure applications (including
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Energy and communication cables
Borouge is the leading supplier to the wire and cable
industry providing solutions in insulation, semi-conductive
and jacketing.
Borouge has solutions for low, medium and high voltage
energy transmission and distribution cables, data and
communication cables, building and automotive wires.
Pipe systems
Borouge pipe grades are used in water and gas distribution,
waste and sewerage disposal, chemical and industrial
projects, irrigation systems, domestic plumbing and heating
and cooling systems, as well as oil and gas exploration and
transportation.
Setting standards in the industry, Borouge’s solutions add
value through improved processing characteristics, lower
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Automotive components
With a long track record in developing innovative plastics
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Borouge provides tailor-made solutions for dashboard,
door side claddings, front-end carriers, air-vents systems,
bumpers and under-body shields.
Advanced packaging
Borouge provides a range of innovative plastics solutions
utilising proprietary technologies for a variety of highperformance flexible packaging applications, especially in
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pallets, bottles and caps and closures.
Borouge’s innovative plastics solutions contribute towards addressing major global challenges such as
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Our History
MINISTRY OF ECONOMY
Disclaimer:
The Ministry of Foreign Trade cannot be held responsible for colour matching, image resolution and content errors that may occur or be found in this book. Every
possible effort has been made by the Ministry and the producer to ensure the accuracy of information and content of this book as well as the quality standards
of images and illustrations. All photographs, illustrations, statistics and other graphic figures included in the this book have been obtained from its sources for
fair use and are copyrighted to its respective owners. The Ministry is not responsible for any changes in facts that occur after the date of issue. The opinions,
facts, figures. This book, and all content, pictures and illustrations herein are the sole property of the UAE Ministry of Foreign Trade, and may not be reproduced,
displayed on a website, distributed, sold or republished, without the prior written consent of the Ministry.
Produced by:
Chief Executive: Mohammad Abdulla Al Hammadi, Team: Saqar Al Zaabi, Jihad Suailik, Sidhique Ameen
P.O. Box 22239 Dubai, UAE, Tel. + Tel. +971 4 4232 885, Mob.+971 5 0550 7070, Email: [email protected]
www.investsource.net
www.borouge.com

Unlimited Opportunities 2013

Transcription

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