| |
| A comprehensive
guide
to current and future events and exhibitions in
the UAE |
1. Business
Methods
2. Chamber
of Commerce
3. Setting
up Business
4. Free Zones
5. Banks
6. Exhibition
Centres
7. Government
Contacts
8. Business Groups
in the UAE
National US-Arab Chamber of Commerce Report on the UAE (June 2007)
CLICK HERE for chapter on UAE Economy, as published in the 2009 UAE Yearbook.
GENERAL INTRODUCTION
Business as usual
Despite the impact of the global financial crisis resulting in an inevitable contraction in 2009, the UAE economy remains robust, shielded by significant overseas financial assets garnered during the era of high oil revenues. Substantial public expenditure, made possible by those assets, allied with strong fundamentals and sound fiscal policies, has served to minimise the impact of the crisis and receding petrodollar income on the UAE's economy, and is expected to speed up its recovery in 2010. In particular, the government has pledged to maintain its investment budgets at high levels, especially for core long-term infrastructure projects, in order to rekindle growth.
Fact and figures
GDP: Dh729.73 billion (2007, current prices); Dh929.4 billion (2008, current prices)
Real GDP growth rate: 5.2% (2007); 7.4% (2008)
Non-oil sector contribution to nominal GDP: 64.1% (2007)
Industries: oil & gas, petrochemicals, aluminium, aeronautical, iron & steel, cement, ceramics, ship repair, pharmaceuticals, tourism, transport, real estate, financial services
Oil production: 2.223 million barrels of crude oil per day (Feb 2009), world’s third largest exporter of crude oil
Oil reserves: 97.8 billion barrels, sixth largest in the world, of which Abu Dhabi holds 92.2 billion barrels or 94%
Natural gas reserves: 6 trillion cubic metres, fifth largest in the world
Fiscal year: 1 January to 31 December
Weekend: Friday and Saturday for government institutions, many private companies operate a six-day week
Telecommunications: thriving deregulated market, modern fibre-optic integrated services; digital network with highest mobile phone penetration in the Arab world
International country code: 971
Internet country code: ae
Fixed line penetration rate: 30%
Mobile phone subscribers: 10.09 million (April 2009)
Internet subscribers: 1.202 million (2009)
Main Ports: Mina Zayed, Jebel Ali, Mina Rashid, Fujairah, Khor Fakkan, Mina Saqr, Sharjah. Abu Dhabi is building a major new port, Khalifa Port & Industrial Zone, at Taweelah.
International airports: 7
Reasons for Doing Business in the UAE
Robust open economy
The UAE has a vibrant free economy, a significant proportion of its revenues arising from exports of oil and gas. Successful efforts have been made to diversify away from dependence on hydrocarbons and a solid industrial base has been created, together with a very strong services sector. The establishment of free zones has been an important feature of this diversification policy and reform of property laws gave a major boost to real estate and tourism sectors.
Security and stability
Since its establishment in 1971, the UAE has enjoyed an enviable degree of political stability, unequalled in the region. This has enabled the implementation of consistent sound economic policies and the reinforcing of the country’s social structure to produce one of the most tolerant, prosperous, secure and safest societies in the world. Dubai and Abu Dubai have been ranked the top two cities in the Middle East region for quality of life, according to the latest edition of a global survey. Long-time investors include a wide range of multinational companies headquartered across the globe.
Tax-efficient business environment
Special economic zones and free zones offer 100 per cent ownership, repatriation of profit and capital as well as exemptions from taxes. Outside of these areas, significant incentives are being offered to investors and corporate governance provisions ensuring transparency and accountability are being enforced. Corporate taxes are reserved only for branches of foreign banks and oil-producing companies. A negligible 5 per cent tariff is imposed on goods imported from non-Gulf Cooperation Council (GCC) countries, although tobacco and alcohol products are subject to 50 per cent customs duties.
Proximity to growth regions
The UAE’s strategic location between Asia, Europe and Africa is a major advantage to investors, particularly the country’s proximity to some of the world’s fastest growing economies in Asia. Collectively India and China alone comprise almost 40 per cent of the world’s total population and support a combined GDP in excess of US$5 trillion, providing significant economic and trading opportunities.
Intellectual property protection
Intellectual property, including patents and trademarks, is legally protected in the UAE and considerable efforts are being made to implement these laws. The country is also a member of international bodies, treaties and conventions that safeguard intellectual property, including the World Intellectual Property Organization (WIPO), World Trade Organization (WTO), Paris Convention, Patent Cooperation Treaty (PCT), WIPO Copyright Treaty, WIPO Performances and Phonograms Treaty (WPPT) and the Rome Convention.
Solid infrastructure
Infrastructure in the UAE is second to none. Telecommunications, including mobile and fixed telephony as well as internet access is on par, if not better, than the world’s largest international business hubs. The road network is constantly upgraded and ports and airports are of world-class standards. In addition, the UAE is creating one of the world’s biggest and most efficient cargo handling centres. To date, the Government has invested heavily in infrastructure development, but it has also opened up its utilities and other infrastructure to greater private sector involvement, so much so that public-private partnerships are now the norm.
Multi-national human resources
Investors benefit from an abundant supply of human resource skills, courtesy of professionals migrating to the emirate from nearly every country in the globe, as well as the increasing number of UAE nationals that are joining the private sector.
Efficient government services
E-government websites, free zone authorities as well as chambers of commerce and industry provide new entrants with helpful information and guidance.
Federal e-government www.government.ae/
Dubai e-government www.dubai.ae
Federation of UAE Chambers of Commerce and Industry www.fcciuae.ae/
UAE Ministry of Economy www.moe.gov.ae
UAE Central Bank www.centralbank.ae
Mubadala www.mubadala.ae/
UAE Offsets Group www.offsets.ae/
Abu Dhabi Investment Authority www.adia.ae/
Abu Dhabi Chamber of Commerce Online Services www.abudhabionlineservices.ae
Abu Dhabi Department of Planning and Economy www.dpeportal.adeconomy.ae
Language for business
Arabic is the official business language. Most government forms and official contracts – e.g. tenancy, residence visa – are in Arabic. Official documents (e.g. university diploma, marriage certificate) that have to be submitted to a government agency for processing or authentication also frequently require translation into Arabic. However, English is commonly used in business circles.
Working hours
Working hours are either ‘straight shift’ or ‘split shift.’ The former normally requires eight working hours beginning from 7:30 a.m. or 9:00 a.m. with a lunch break lasting 30 minutes to an hour. The latter comprises eight to nine working hours that typically commence between 9:00 a.m. and 10:00 a.m. and ends between 8:00 p.m .and 9:00 p.m., with a three- to four-hour break in between. The split shift is thought to be an efficient means of addressing the extremely hot weather during the summer months, particularly for labourers. Working hours are shortened during the holy month of Ramadan, usually by two to three hours.
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