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United Arab Emirates Doing Business and Investing in United Arab Emirates (UAE) Guide Table of Contents BUSINESS AND DEVELOPMENT PROFILES........................................................................................................ 9 STRATEGIC PROFILE................................................................................................................................... 9 COUNTRY OVERVIEW..................................................................................................................................9 Geography................................................................................................................................................. 9 People................................................................................................................................................. 11 Government............................................................................................................................................ 12 Economy................................................................................................................................................... 14 Communications.................................................................................................................................... 17 Transportation.................................................................................................................................. 17 Military.................................................................................................................................................. 18 Transnational Issues.......................................................................................................................... 18 IMPORTANT INFORMATION FOR UNDERSTANDING UAE........................................................................... 20 IMPORTANT INFORMATION FOR UNDERSTANDING UAE........................................................................... 20 BASIC DATA..................................................................................................................................................... 22 PEOPLE............................................................................................................................................. 23 HISTORY..........................................................................................................................................................23 GOVERNMENT.............................................................................................................................................. 24 POLITICAL CONDITIONS...................................................................................................................... 25 ECONOMY......................................................................................................................................................... 26 FOREIGN RELATIONS................................................................................................................................. 26 US-UAE RELATIONS................................................................................................................................. 27 Principal US Officials.......................................................................................................................... 27 Travel...................................................................................................................................................... 27 GOVERNMENT OF THE UNITED ARAB EMIRATES.............................................................................................................. 28 Structure of Government........................................................................................................................ 28 Membership in Other Organizations:................................................................................................. 29 COUNCIL OF MINISTERS...................................................................................................................... 29 RELATIONSHIP BETWEEN FEDERAL AND LOCAL GOVERNMENTS............................................... 29 STRATEGIC INFORMATION FOR CONDUCTING BUSINESS........................................................................31 POLITICAL ENVIRONMENT.......................................................................................................................... 31 Bilateral Relations............................................................................................................................. 31 Political System...................................................................................................................................... 31 ECONOMIC TRENDS................................................................................................................................. 31 Major Trends...................................................................................................................................... 31 Principal Growth Sectors....................................................................................................................33 Government Role in the Economy.......................................................................................................... 34 Balance of Payments Situation................................................................................................................ 35 Infrastructure Situation....................................................................................................................... 35 IMPORTANT INFORMATION ON EMIRATES............................................................................................ 36 Abu Dhabi............................................................................................................................................... 36 Dubai....................................................................................................................................................... 37 Sharjah............................................................................................................................................. 37 Ajman..........................................................................................................................................................38 Umm al-Qaiwain..................................................................................................................................... 38 Ras al-khaimah.....................................................................................................................................38 Fujairah........................................................................................................................................ 39 SELECTED STRATEGIC INFORMATION FOR BUSINESS ACTIVITY.................................................. 39 GENERAL BUSINESS PROFILE.............................................................................................................39 Gross Domestic Product.......................................................................................................................41 Gross Domestic Product at Factor Cost by Economic Sectors............................................................. 41 Balance of Payments............................................................................................................................... 42 Public Finance................................................................................................................................... 43 Public Finance for Federal Government for years (1994-1996) (Mn. Dhs.)....................................... 43 Foreign Trade.................................................................................................................................... 43 Money and Banking.....................................................................................................................................44 Major Monetary Indicators and Affecting Factors.................................................................................... 45 Banking Developments:.......................................................................................................................... 46 Development of Deposit According to Ownership................................................................................. 46 Credit Extended By Commercial Banks................................................................................................. 46 Interest Rates:..................................................................................................................................... 47 DUBAI CHAMBER OF COMMERCE........................................................................................................ 47 DCCI Offices............................................................................................................................................ 47 The Aims of the Chamber:...................................................................................................................... 48 Executive Committee................................................................................................................................ 48 Dubai Focus Committee.......................................................................................................................... 49 Joints Economic Committees.................................................................................................................. 49 UAE INDUSTRY INFORMATION.....................................................................................................................................................................50 Basic Features of the Industrial Sector in the UAE................................................................................ 50 EMIRATES INDUSTRIAL BANK...................................................................................................................................................................... 50 Bank Loan Types...................................................................................................................................... 51 Other Services and Facilities.............................................................................................................. 51 DYBAI: BASIC INFORMATION................................................................................................................ 52 BUSINESS CLIMATE.................................................................................................................................. 54 PRACTICAL INFORMATION FOR CONDUCTING BUSINESS....................................................................... 56 INVESTMENT AND BUSINESS CLIMATE.................................................................................................56 OPENNESS TO FOREIGN INVESTMENT............................................................................................. 56 CONVERSION AND TRANSFER POLICIES...........................................................................................58 EXPROPRIATION AND COMPENSATION............................................................................................ 59 DISPUTE SETTLEMENT......................................................................................................................... 59 PERFORMANCE REQUIREMENTS/INCENTIVES.............................................................................. 60 RIGHT TO PRIVATE OWNERSHIP AND ESTABLISHMENT.............................................................. 61 PROTECTION OF PROPERTY RIGHTS............................................................................................... 61 TRANSPARENCY OF THE REGULATORY SYSTEM.............................................................................. 62 EFFICIENT CAPITAL MARKETS AND PORTFOLIO INVESTMENT................................................. 62 POLITICAL VIOLENCE............................................................................................................................ 64 CORRUPTION......................................................................................................................................... 64 BILATERAL INVESTMENT AGREEMENTS............................................................................................ 64 OPIC AND OTHER INVESTMENT INSURANCE PROGRAMS........................................................... 64 LABOR...............................................................................................................................................................65 FOREIGN TRADE ZONES/FREE PORTS............................................................................................ 66 FOREIGN DIRECT INVESTMENT........................................................................................................ 67 DOING BUSINESS IN UNITED ARAB EMIRATES............................................................................................................................... 68 Market Overview....................................................................................................................................68 Market Challenges...............................................................................................................................69 Market Opportunities..............................................................................................................................69 Market Entry Strategy............................................................................................................................ 69 LEADING SECTORS FOR US EXPORTS AND INVESTMENT........................................................... 69 Aircrafts and Parts................................................................................................................................ 69 Pollution Control Equipment............................................................................................................... 74 Medical Equipment................................................................................................................................. 78 Architecture/Construction/Engineering................................................................................................. 82 Computers / Peripherals.....................................................................................................................83 Safety and Security Equipment.................................................................................................................. 85 Air Conditioning and Refrigeration Equipment........................................................................................87 Building Products................................................................................................................................ 88 Sporting Equipment/Recreational Equipments...................................................................................... 89 Agricultural Sectors................................................................................................................................91 MARKETING PRODUCTS AND SERVICES.............................................................................................. 93 Distribution and Sales Channel..........................................................................................................93 Franchising...................................................................................................................................... 94 Direct Marketing.................................................................................................................................... 94 Joint Ventures/Licensing........................................................................................................................ 95 Establishing an Office............................................................................................................................ 95 Selling Factors/Techniques.................................................................................................................... 96 Advertising and Trade Promotion.......................................................................................................... 97 Pricing Products.............................................................................................................................. 97 Sales Service/Customer Support............................................................................................................ 97 Selling to the Government......................................................................................................................98 Protecting Your Product from Copyright Infringement.........................................................................98 Need for a Local Attorney......................................................................................................................98 TRADE REGULATIONS AND STANDARDS................................................................................................ 99 Trade Barriers, Including Tariffs, Non-Tariff Barriers and Import Taxes......................................... 99 Customs Valuation................................................................................................................................. 100 Import Licenses...................................................................................................................................... 100 Export Controls................................................................................................................................... 100 Import/Export Documentation............................................................................................................... 100 Temporary Entry.....................................................................................................................................100 Labeling.................................................................................................................................................. 101 Prohibited Imports............................................................................................................................. 101 Standards.......................................................................................................................................... 101 Free Trade Zones/ Ware Houses......................................................................................................... 101 Membership in Free Trade Arrangements.......................................................................................... 101 TRADE AND PROJECT FINANCING......................................................................................................... 102 Banking System......................................................................................................................................... 102 Foreign Exchange Controls Affecting Trading...................................................................................... 102 General Financing Availability........................................................................................................... 102 Types of Available Export Financing and Insurance............................................................................. 103 Project Financing Available............................................................................................................... 103 Banks/Financial Institutes Operating in the UAE:..............................................................................103 DUTY FREE TRADING IN DUBAI......................................................................................................... 104 Millennium Millionaire......................................................................................................................... 106 CONTACTS.................................................................................................................................................107 SELECTED ECOMOMIC SECTORS PROFILES.............................................................................................. 109 OIL AND GAS INDUSTRY.............................................................................................................................109 ENERGY OVERVIEW................................................................................................................................. 109 ENVIRONMENTAL OVERVIEW...............................................................................................................109 OIL AND GAS INDUSTRIES.................................................................................................................... 110 GENERAL BACKGROUND.................................................................................................................... 110 OIL............................................................................................................................................................ 111 NATURAL GAS............................................................................................................................................... 112 ELECTRICITY............................................................................................................................................ 114 MAJOR OIL COMPANIES....................................................................................................................... 116 PERSIAN GULF OIL EXPORT................................................................................................................ 119 Imports from the Persian Gulf Region.................................................................................................. 120 AGRICULTURE AND FISHERIES.......................................................................................................... 121 Greening and Desert............................................................................................................................ 121 Chelsea Flower Show............................................................................................................................ 122 Horticulture Exports......................................................................................................................... 123 New Irrigation Techniques.................................................................................................................... 123 Fishing............................................................................................................................................. 124 STATES ECONOMIC PERFORMANCE AND OPPORTUNITIES........................................................... 127 DUBAI PORT AUTHORITY......................................................................................................................127 ADVANTAGES................................................................................................................................................128 SERVICES...................................................................................................................................................129 ACTIVITIES AND SERVICES.................................................................................................................... 130 FUJAIRAH................................................................................................................................................. 131 Major Cities...................................................................................................................................... 132 History................................................................................................................................................... 134 Nature.................................................................................................................................................... 136 IMPORTANT INFORMATION AND CONTACTS..................................................................................137 SHARJAH................................................................................................................................................ 140 HISTORY........................................................................................................................................................ 141 CULTURE AND TRADITIONS.................................................................................................................143 PEOPLE............................................................................................................................................145 TRAVEL............................................................................................................................................................. 146 PORTS...................................................................................................................................................... 146 INTERNATIONAL AIRPORT..................................................................................................................... 148 EXCHIBITION CENTER........................................................................................................................ 149 WORLD TRADE CENTER........................................................................................................................ 153 HOTELS................................................................................................................................................... 153 RESTAURANTS...............................................................................................................................................157 PUBLIC SER VIES.................................................................................................................................. 157 HOSPITALS.............................................................................................................................................. 159 GOVERNMENT CONTACTS....................................................................................................................161 AMERICAN UNIVERSITY........................................................................................................................... 162 FREE ECONOMIC ZONES........................................................................................................................ 164 AJMAN FREE ZONE.............................................................................................................................. 164 ADVANTAGES................................................................................................................................................164 QUESTIONS AND ANSWERS....................................................................................................................164 JEBEL ALI FREE ZONE.................................................................................................................................................................... 166 ADVANTAGES.................................................................................................................................................. 166 COMPANIES........................................................................................................................................... 167 COMPANIES IN JEBEL ALI FREE ZONE - Region and country-wise statistics.................................. 167 THE HAMRIYAH FEE ZONE SHARJAH............................................................................................................................................... 170 Generous Incentive Framework............................................................................................................ 170 Investment Incentives............................................................................................................................. 171 Facilities.......................................................................................................................................... 171 Special Advantages............................................................................................................................... 171 Industries and Activities........................................................................................................................ 171 SAIF ZONE................................................................................................................................................................................................ 172 UNITED ARAB EMIRATES TODAY...................................................................................................................... 174 ECONOMY.......................................................................................................................................................................................................174 Fahim Bin Sultan Al Qasimi UAE Minister of Economy and Commerce............................................174 "General Aspects and Determinants of Growth".................................................................................. 175 "The Economics of National Autonomy"..............................................................................................176 "Golden Show in a Storm: The Financial and Banking System".......................................................... 179 SOCIO-POLITICAL ISSUES.................................................................................................................................................................... 185 "Diversity in Unity: Political Institutions and Civil Society"............................................................... 185 "Socio-Political Origins of Emirati Leaders"..................................................................................... 187 FOREIGN RELATIONS AND DEFENSE.............................................................................................................................................. 189 "UAE Policy Toward the Sub-Regional Powers"................................................................................. 189 "The UAE and the Broader Middle East: The Case of Palestine"........................................................ 193 "Between Pax Britannica and Pax Americana"................................................................................. 196 "PAST, PRESENT AND FUTURE LEADERSHIP"................................................................................................................................. 200 TRAVEL TO UAE........................................................................................................................................................ 204 US STATE DEPARTMENT SUGGESTIONS......................................................................................... 204 IMPORTANT INFORMATION........................................................................................................................207 VISAS......................................................................................................................................................................209 MONEY...........................................................................................................................................................211 DRIVING................................................................................................................................................... 212 CUSTOMS REGULATIONS.....................................................................................................................216 SUPPLEMENTS.......................................................................................................................................................... 217 .................................................................... 217 OPEC Overview.................................................................................................................................... 218 OPEC Pricing.................................................................................................................................. 218 Recent Developments..............................................................................................................................218 OPEC REVENUES.................................................................................................................................................................................. 219 OVERVIEW.................................................................................................................................................. 220 Algeria................................................................................................................................................... 222 Indonesia................................................................................................................................................222 Iran............................................................................................................................................. 222 Iraq............................................................................................................................................. 223 Kuwait..................................................................................................................................................... 223 Libya........................................................................................................................................................223 Nigeria...............................................................................................................................................224 Qatar.......................................................................................................................................... 224 Saudi Arabia......................................................................................................................................224 UAE............................................................................................................................................................ 225 Venezuela................................................................................................................................................ 225 ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES (OPEC) GOVERNMENT EVENTS................................................................................................................................................. 227 STRATEGIC CONTACTS............................................................................................................................. 228 American Embassy Abu Dhabi Contacts............................................................................................. 228 MINISTRIES CONTACTS INFORMATION.................................................................................................................................................. 228 SELECTED GOVERNMENT and BUSINESS CONTACTS............................................................................................................... 230 Country Contacts.................................................................................................................................. 231 USDA Contact Information.................................................................................................................. 231 UAE EMBASIES......................................................................................................................................... 231 IMPORTANT CONTACTS IN UAE............................................................................................................... 236 Newspapers:.......................................................................................................................................236 FOREIGN EMBASSIES........................................................................................................................... 236 BANKS...............................................................................................................................................................240 IMPORTANT CONTACTS........................................................................................................................241 SELECTED BUSINESS CONTACTS.......................................................................................................243 MAJOR ARABIC BANKS....................................................................................................................................... 245 AIRLINES SERVING THE ARAB WORLD...................................................................................................................................................250 STRATEGIC STATISTICS............................................................................................................................ 252 NUMBER OF COMPANIES BY SECTOR............................................................................................. 252 AREA (SIZE) OF UNITED ARAB EMIRATES BY EMIRATE..............................................................253 MAX and MIN. AVERAGE TEMPERATURE ( C ) BY MONTH and STATION....................................... 253 MAX and MIN. AVERAGE RELATIVE HUMIDITY % BY MONTH and STATION................................. 255 RAINFALL IN MILLIMETERS AND NO. OF RAIN DAYS* BY MONTH and STATION......................256 AVERAGE ATMOSPHERIC PRESSURE AT SEA LEVEL BY MONTH AND STATION..................257 POPULATION....................................................................................................................................... 258 EXPORT-IMPORT......................................................................................................................................... 260 IMPORTS.................................................................................................................................................260 EXPORT.................................................................................................................................................... 266 IMPORTANT STATISTICS.............................................................................................................................. 271 Travel and Tourism...............................................................................................................................282 IMPORTANT CONTACTS........................................................................................................................287 INDUSTRIAL STATISTICS............................................................................................................................289 Manufacturing Activities in UAE.........................................................................................................289 Number of Establishments, Labor, and Investment in All Emirates.................................................... 290 Number of Establishments, Labor, and Investment in Abu Dhabi.......................................................290 Number of Establishments, Labor, and Investment in Dubai...............................................................291 Number of Establishments, Labor, and Investment in Al- Sharjah......................................................292 Number of Establishments, Labor, and Investment in Ajman............................................................. 293 Number of Establishments, Labor, and Investment in Ras-Al Khimah............................................... 294 Number of Establishments, Labor, and Investment in Umm Al Quwain.............................................294