Doing Business in UAE - Morison Menon

Recommendations

Info

The Country Geographic Location The United Arab Emirates extends along the coast of the Gulf, from the base of Qatar peninsula to a short way beyond Ras Al Khaimah and across the Mussandum peninsula to the Gulf of Oman. The Federation comprises the seven emirates of Abu Dhabi (the capital), Dubai (the thriving commercial capital), Sharjah, Umm Al Quiwain, Ajman, Ras Al Khaimah and Fujairah. In all, the UAE covers an area of about 83.6 thousand square kms. Climate UAE lies within a subtropical zone with very hot summers, high humidity, mild and pleasant winters. Rainfall is erratic generally, lasting for a few days and rarely exceeding 5 to 10 inches a year. Population In 2005, the population of the UAE was estimated to have reached 4.32 million Immigrant employees who form a large portion of the population predominantly from the Indian Subcontinent, Iran, Europe and other Arab countries. Expatriates are attracted to UAE by the opportunities offered by the rapid development of the country. Culture Arab Islamic culture dominates the lifestyle of UAE. However, it is tolerant of the different creeds and beliefs of its large expatriate community. Arab heritage and folklore finds expression in poetry, dances and songs. The traditional allpervasive hospitality gives a great deal of charm to life in UAE. Cultural activities of other nations are very much popular in this country. Language The official language is Arabic, but English is the common language, Urdu and Persian are also widely spoken. Arabic and English are usually used in business and commerce. Political System The United Arab Emirates is a Federal Sovereign State which consists of 7 Emirates mentioned Doing Business in UAE and UAE Free Trade Zones 4th Edition 2006 above. The Federation was established on 2nd December 1971 of six Emirates, then the Emirate of Ras Al Khaimah joined the Federation on the 10th of February 1972. According to the constitution, The Supreme Council of the Federation is the highest political authority in the country. It consists of all the Rulers of seven Emirates. The President and the Vice President of the State are elected by the Supreme Council and from its members, The President appoints the Prime Minister with the consent of the members of the Supreme Council. The members of the Federal Government are appointed by a decree from the President upon recommendation from the Prime Minister. The Federal National Council (FNC), which consists of representatives of each Emirate, is the Legislative Council (Parliament). It exercises the authority to discuss the sanction of all Federal Laws and then refer them to the Supreme Council for enactment. Nature of Business Activities The UAE economy has witnessed rapid economic developments. Even before 1957, the economy of the Emirates constituting the Federation, under their self-ruling system, was dependent on the available natural and human resources. Economic resources varied in each Emirate in accordance to the area, population and the abundance of the resources of each of them. They were almost wholly dependent on certain activities such as pearl fishing and trading, fishing, trade, agriculture and some handicraft industries. Each Emirate differed from the other by its relative dependence on a special economic resources. In 1957, another stage of economic development started. It was the beginning of the era of oil producing and exporting in Abu Dhabi, Morison Menon 13 The Country
Dubai in 1969, and then in Sharjah. This stage had witnessed the increasing importance of the oil sector since the huge amount of revenues it provided in comparison with other sources of the national income. This rendered the traditional economic activities to become less important, particularly the sector of pearl fishing and trading. Since then oil and its related industries have become the backbone of the UAE Economy. The Economic Policy The economic policy of UAE is based on safeguarding and respecting the individual freedom in ownership of the means of production, practicing any type of business activities and providing all facilities. There are no restrictions on imports and exports except some minor customs and administrative duties. The government plays a supervisory role in issuing legislation, which organize the functioning of the various economic sectors while causing no hindrance to the business activities. Trading Regulations of UAE International manufacturers and exporters may conduct business with UAE by concluding transactions directly with importers and traders who are already established in the market. This type of arrangement may be suitable for low-volume trade. However, for an ongoing business relationship, overseas companies may well want to consider a more permanent form of representation. Commercial Agencies A foreign company wishing to supply goods and 14 services from abroad, but without establishing a physical presence in UAE, may find it advantageous to appoint a commercial agent. The main provision of the Federal Commercial Agency Law No 18 of 1981, as amended by Law No 14 of 1988, is that an agent must be a UAE national, or a company 100 per cent owned by UAE nationals. A commercial agent may not carry out activities in the UAE unless its name is entered in the Commercial Agency Registry maintained at the Ministry of Economy. Distributor It is possible for an overseas trader to appoint a local Distributor to distribute the products in UAE market. Unlike a Commercial Agent, the Distributor can be any local, registered company including companies with foreign ownership. Other Regulations Import duties are largely standardized at five per cent (except for tobacco products (100%) and intoxicating liquors 50%) but there are many exemptions, including food, medical products and any item destined for the Free Trade Zones. Trade practices in UAE are in line with normal international standards. As a sophisticated market, full technical specifications should be provided with CIF UAE prices and Middle East references. UAE is a member of WTO. Only importers who have appropriate trade licence can undertake imports into UAE. Before 1984, each emirate viz., Dubai, Abu Dhabi, Sharjah, Ajman, Ras Al Khaimah, Umm
Page 2 and 3: 4 th Edition 2006 Dubai: 204, Tower
Page 4 and 5: HH Sheikh Khalifa bin Zayed Al Nahy
Page 6 and 7: Foreword Writing a foreword is a go
Page 8 and 9: Preface The fourth edition of ‘Do
Page 12 and 13: ADVANTAGES OF UAE FOR BUSINESS Pro
Page 14 and 15: pany are not open for subscription
Page 16 and 17: Ministry of Economy prior to obtain
Page 18 and 19: importance of the industrial sector
Page 20 and 21: Contracting Firms have been classif
Page 22 and 23: •Board Resolution to open a branc
Page 24 and 25: (i) accounting, business, medical a
Page 26 and 27: • If the manager is a new appoint
Page 28 and 29: Dubai Industrial City (DIC) Locatio
Page 30 and 31: name shall not be registered in the
Page 32 and 33: Real Estate in the UAE The economy
Page 34 and 35: Key Communities Al Hamra Village -
Page 36 and 37: General Information Customs Procedu
Page 38 and 39: dure remain the same including depo
Page 40 and 41: the Free Zone. Bank Guarantees Ther
Page 42 and 43: Abu Dhabi Sea Port Port Zayed (Mina
Page 44 and 45: Dubai Port Tariffs Loading/Discharg
Page 46 and 47: Destination Mississippi Boston, Mas
Page 48 and 49: Immigration Requirements for New En
Page 50 and 51: Multiple-Entry Visas Multiple-entry
Page 52 and 53: Name of School Curriculum Location
Page 54 and 55: Dubai Education Council The creatio
Page 56 and 57: Dept of Economic Development, Dubai
Page 58 and 59: Location Established Distance Size
Page 60 and 61:
DUBAI MARITIME CITY Location Establ
Page 62 and 63:
Facilities Offered Rent Per Annum L
Page 64 and 65:
Facilities Offered (Leasehold and F
Page 66 and 67:
Location Established Distance Size
Page 68 and 69:
Facilities Offered Rental per annum
Page 70 and 71:
Page 72 and 73:
Facilities Offered Rental per annum
Page 74 and 75:
Page 76 and 77:
* Location Established Distance Siz
Page 78 and 79:
HEAVY EQUIPMENT & TRUCK ZONE (HETZ)
Page 80 and 81:
AUTO SPARE PARTS ZONE (ASPZ) Locati
Page 82 and 83:
Business Segments Port facilities V
Page 84 and 85:
Page 86 and 87:
show all

Doing Business in UAE - Morison Menon

Create successful ePaper yourself

Delete template?

Save as template?