UAE Country Commercial Guide 2012 - Export.gov

The majority of licensing in the UAE is done for fabricating and/or marketing trademarked items.
Licensees of US sports logos, universities, animated characters, etc., are servicing a very active
market with one of the world's highest disposable incomes. Licenses to sell US brand products (an
authorized dealer), as distinct from a standard distribution arrangement, or US logos/names/
characters on a non-US product, are increasingly sought, especially in the apparel market.
Abu Dhabi Ports Company hopes to attract manufacturers by offering a range of incentives from free
zone status to the ability to use foreign nationals for 100 per cent of their workforce, as well as some
of the region’s cheapest utility costs. With a giant port adjacent and a line of the planned GCC-wide
railway due to pass through the zone, firms using KIZAD (Khalifa Industrial Zone Abu Dhabi) will
have access to some of the fastest-growing and wealthiest markets in the world, from Asia and
Africa to Saudi Arabia.
Selling to the Government Return to top
Similar to the US, the UAE is a two tier government - Federal and Emirate (‘state’) level. For all
types of government procurement and projects, US firms need to have a presence in the UAE and
get their goods/services prequalified with the various government departments for procurement
tenders. It is possible for bids not to go out on a public tender. In these cases, they are sent to
select firms that are pre-qualified with the institution in question.
Federal purchases are administered through the respective federal offices located in Abu Dhabi
and/or Dubai. At the emirate level, purchases for goods/services are done directly by the institution
depending on their needs.
For most civilian purchases, government entities prefer to deal with firms registered in the UAE, in
particular in their emirate, and will favor local products over imports. Only when goods or services of
acceptable quality are not available locally will the procurement authority seek outside sources.
Competition in the public sector is very strong. Besides large military procurement projects,
governments in the UAE invest heavily in infrastructure projects, such as roads, power generation
and distribution systems, desalination facilities, sewage systems, public housing, recreational
facilities, hospitals and other medical facilities and services, schools, national security projects,
athletic facilities, refineries and other hydrocarbon facilities, airports, and government buildings.
One of the largest government infrastructure projects currently in development is the Etihad (Union)
Rail project. A network of up to 1,200 km spread across the Emirates, the railway will connect the
UAE to Saudi Arabia in the West and Oman in the East.
Distribution and Sales Channels Return to top
The most commonly used way of selling in the UAE is by appointing a commercial agent. Other
methods used depend on the product or service. Direct sales, sales through an informal, nonexclusive
reseller, establishment of a company presence through a joint venture partner, wholly
owned subsidiary or branch in a free zone are all channels of selling and distributing in the UAE.
Licensing and franchising arrangements are also commonly seen in the market.
U.S. exporters sometimes find it advantageous to appoint different commercial agents or partners in
each emirate. Multiple agencies and distributors may also be appointed to handle diverse product
lines and/or services. Many UAE companies manage numerous product lines, making it sometimes
difficult to focus on all products in an efficient and effective manner.