2. TRADE
• UAE is the 18th largest exporter Globally.
• The United Arab Emirates (UAE) is the UK’s largest Civil Export
market in the MiddleEast.
• Annual trade between Dubai and the UK is worth around GBP 9
billion, making Dubai and the wider UAE Britain’s 16th biggest
overseas market.
• The UAE remains the largest market in the region accounting for GBP
605 million of Scottish export.
• Gateway to a GBP 100 billion market.
• Springboard into more challenging Markets
• 90% of trade conductedthrough Dubai and Northern Emirates.
Sources:
• Opportunities in the Middle East:Guide – published by Scottish Enterprise on 18th
March 2015
• Guidance note – Exporting to the UAE, UK Trade – published 21 March 2014
• Glittering gatewayto the Gulf – Chamber International
3. HOW DUBAI WORKS
• Dubai is ruled by the Al Maktoum royal
family
• Sheikh Mohammed Bin Rashid Al
Maktoum is the Vice President & Prime
Minister of the UAE and the Ruler of
Dubai
5. DUBAI: THE BUSINESS HUB OF THE
MIDDLE EAST
• Dubai’s strategic location gives easy
access to 2.2 billion consumers, from a
unique centralised time zone that
combines East and West business hours.
• Dubai is the perfect gateway between
East and West and the preferred hub for
the region’s imports and exports market
– one of the most lucrative in the world.
7. MAJOR UAE PROJECTS
• High value opportunities for Scottish
businesses in the areas of aerospace, airports,
railway, metro, infrastructure projects and
professional services.
9. EXPO 2020
• The UAE won the right to host the World Expo in
Dubai in 2020. This will be the first time that the
World Expo is staged in the Middle East, North
Africa and South Asia, truly bringing to life the
theme of “Connecting Minds, Creating the
Future”.
• Expo 2020 Dubai is expected to attract 25 million
visitors, 70% of which will come from overseas.
Sources:
• EXPO 2020 Dubai UAE – The official website of Expo 2020 Dubai – available at http://expo2020dubai.ae/en/index.php
10. EXPO 2020
• Scottish expertise in delivering such
events is held in high regard globally, and
given our close and historic links to the
UAE, we stand in good stead to compete
for at least GBP 1.3 billion of business
planning, designing and delivering the
Dubai Expo 2020 site.
11. KEY ISSUES
• Don’t forget about the growing Northern
Emirates and Abu Dhabi
• Niche opportunities for Scottish companies
• Have a Middle East Strategy (and beyond?) not
just UAE
• Understand the wider pricing issues
• Take legal advice with M.E knowledge
• Research, Research, RESEARCH
12. DOING BUSINESS IN
THE UAE
• Dubai is the second largest member of the UAE.
It’s home to the most important port and is the
country’s commercial capital.
• It offers easy access to the 1.5 billion consumer
markets situated in Africa, West Asia, CIS
countries and Eastern Europe as well as the
areas surrounding the Red Sea and the Gulf.
• Setting up in the UAE is relatively easy and
straightforward.
Sources:
• Reasons for Doing Business in Dubai – Cross Border Business Consultants
13. DOING BUSINESS IN THE UAE
Growing and diverse economy
• In terms of its economic performance, Dubai (and
the UAE in general) has been the most successful
economy within the GCC region for diversifying away
from oil.
• UAE has been making huge investments in the
tourism, financial and constructionsectors.
• In 2012, manufacturing activity accounted for 42% of
output growth, transport/communication for 23%,
wholesale/retail trade for 16.5% and
restaurants/hotels for 15.5%.
Sources:
• Reasons for Doing Business in Dubai – Cross Border Business Consultants
14. DOING BUSINESS IN THE UAE
Legal Framework
• Investment laws, regulations and incentives are
continuously improving to encourage further
foreign investment.
• This includes the introduction of foreign
ownership of land and stocks – Dubai became
the first emirate within the UAE to open its
property market to foreign ownership, followed
by Abu Dhabi.
15. DOING BUSINESS IN THE UAE
Physical Infrastructure -‐ Ports
• Dubai dominates the cargo and re-‐export markets thanks to
the size and sophistication of its two ports, Port Rashid and
Jebel Ali Port.
• The massive Jebel Ali facility is one of the busiest ports in
the world with over 70 berths. It also includes an economic
free zone (JAFZA) which is part of the Economic Zones
World.
Sources:
• Jafza – Dubai, UAE – UAE Information Guide
• Reasons for Doing Business in Dubai – Cross Border Business Consultants
16. DOING BUSINESS IN THE UAE
Physical Infrastructure -‐ Airports
• Emirates is one of two flag carriers of the UAE
along with Etihad Airways and is based in
Dubai.
• Emirates is the Arab world’s largest airline
with more than 140 destinations and 230
aircrafts in 2015, and plans to increase its fleet
to up to 280 by 2020.
Sources:
• Our Destinations – Official Emirates Airlines website – available at
http://www.emirates.com/ae/english/destinations_offers/destinations/index.aspx
• Reasons for Doing Business in Dubai –Cross Border Business Consultants
17. DOING BUSINESS IN THE UAE
Investment Support and Promotion by the
Government
• Dubai’s Department of Economic Development
(DED), which is tasked with setting and driving
Dubai’s economic agenda, supports the emirate’s
transformation into a diversified, innovative, service
and knowledge-‐based economy to improve the
business environmentand increase productivity.
• It develops economic plans and policies, identifies
and supports strategic sectors, and provides essential
administration services to domestic and international
investorsand businesses.
18. DOING BUSINESS IN THE UAE
Open Trading Hub
• Dubai has free and open trade with more than
three-‐quarters of goods entering the emirate
duty free.
• Dubai’s open-‐border foreign labour policy has
also proved a major factor in the liberal trade
regime, allowing private sector businesses to
recruit expatriate workers at internationally
competitive wages.
19. DOING BUSINESS IN THE UAE
Quality Lifestyle and Culture of Excellence
• Ranked as the top Middle Eastern city in Mercer’s Quality of
Life Index, Dubai has become one of the world's most
preferred expatriate locations.
• Although it is recognised as the fastest growing city in the
world, Dubai is also one of the safest.
• The emirate is home to the tallest building on the planet, the
largest man-‐made marina, the most luxurious hotels and with
over 200 nationalities contributing to the city’s unique culture
and community, it is one of the most vibrant global
destinations.
Sources:
• Mercer Quality ofLivingSurvey 2015
20. DOING BUSINESS IN THE UAE
Quality Lifestyle and Culture of Excellence
• Dubai’s many attractions and experiences
combine a fascinating heritage with world-‐class
shopping and entertainment facilities.
• Many of the world’s leading retailers choose
Dubai as their first ventures in the Middle East.
• Year – round sunshine also means plenty of
opportunity to enjoy outdoor life.
21. DOING BUSINESS IN THE UAE
Visionary Leadership
• The extraordinary perception and vision of
Dubai’s leaders have created one of the
world’s most successful and vibrant cities.
• A belief in the potential and possibilities of
the future has lifted this trading town into a
major player on a global stage. This vision
continues, and with it, Dubai’s ambition
expands.
22. DOING BUSINESS IN THE UAE
General Advantages offered by UAE
• 0% Taxes
• Very Low Import Duty
• Double Taxation Agreements of UAE
• Free Trade Agreements of UAE
• Strong and Competitive Economy
• Strategic Location Advantages of UAE
• World-‐class Infrastructure of UAE
23. DOING BUSINESS IN THE UAE
• Direct Export – Agent/Distributor
• Representative Office
• Branch Office
• Limited Liability
• Joint Venture/Participation
• Free zone or Sponsor/Partner?
24. DOING BUSINESS IN THE UAE
Direct Export – Agent/Distributor
• No distinction between Agent and Distributor
• Cultural aspects – RESEARCH is a must!
• Registered or UnregisteredAgent?
• Exclusivity can be via product line/specific
service
• Dubai and Abu Dhabi separate agencies?
• Agreement subject to UAE law – ICC possible?
• Ensure “getoutability” of contract
25. DOING BUSINESS IN THE UAE
Representative Office
• Branch Office:
• Sponsor generally needed – registration/formalities
• Sponsors – no liability, investment or management
• Fees are fairly established
• Specialist UAE firms offer matching service
• Termination may be difficult
26. DOING BUSINESS IN THE UAE
Limited Liability Company – LLC
• At least 51% shares to be held by UAE
national/company
• Initial share capital AED 300,000 for Dubai – NOT
necessary to be deposited in the bank
• Profit shares can be flexible and are not
determined by share ownership
• All or most of the share capital is provided by
foreign investor
• Vast majority of profits passed to foreign investor
• Protection Suite
27. DOING BUSINESS IN THE UAE
Joint Venture (JV)/Participation
• UAE Companies Law permits joint participation
• 2 or more partners agree to share profits/losses
• Does not need to be formally registered
• Establishment immediate
• JV would use name/trade license of local
registered
• Disadvantage – independent financing limited?
28. DOING BUSINESS IN THE UAE
Free Trade Zones (FTZ)
• Dubai is home to over 50 Free Trade Zones (existing and proposed)
catering to various industrial and business clusters where foreign investors
can enjoy100% foreign ownership oftheir companies.
• 100% import and export tax exemptions
• 100% repatriationofcapital and profits
• You can open a bankaccount in Dubai
• Can be liquidatedanytime
• You can conduct international business
• No income tax
• No capital tax
• No currency restrictions
• Low cost of operations
• Excellent infrastructure
29. HELP IS AVAILABLE
• Overseas Market Introduction
Service
• Programme Arrangements
• Company Information and
Profiles
• Market Summaries
• Market Visits
• Exhibitions
• Major Project Data
But don’t forget others that can be helpful:
• GlobalScot/SDI/Scottish Enterprise
• UKTI/British Business Group
• Arab British Chamber of Commerce
• UAE Chambers of Commerce
• ME!
30. SUMMARY
• Research, research, research
• Understand cultural issues
• Develop a regional strategy
• Maintain personal contact
• Plan for the long term, not a quick fix
• Do not let the lack of a licence stop you from doing
Business in the Middle East
ENJOY THE EXPERIENCE!!!