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Update on the WTO TPR Report 2006
This report, prepared for the voluntary update of the ﬁrst Trade Policy Review of the United Arab Emirates, has been drawn up by the Ministry of Foreign Trade responsibility.
Department of Foreign Trade Policies
the importance of trade for its economic performance. highlighting the positive developments and improvements of its various tools and its impact on economic growth. and aspirations of the government’s judicious strategy that aims at attaining the highest levels of comprehensive and sustainable economic development. The UAE’s trade policy. the foundations of this policy go hand in hand with the government’s strategic priorities to build a diverse and sustainable economy and attain an exceptional global status. until June 2010. The report’s fourth section details the country’s trade policy by economic sector. and the trade agreements that the UAE has joined. It is considered as the first initiative taken by a country in the World Trade Organization. figures. since no WTO member state has published a voluntary report to demonstrate its trade policy outside of the framework of the Trade Policy Review mechanism in the WTO. Minister of Foreign Trade Lubna bint Khalid Al Qasimi . its relatively low border barriers to trade. it come as no surprise when the World Trade Organization commends in the first Review of the Trade Policy of the UAE the foundations of this policy. and has encouraged its high value-added industrial sector to increase its export abilities. Therefore. The second section specializes in showcasing the features of the trade and investment climate through shedding light on the institutional framework and defining the stages of the process of formulating and executing the trade policy. highlighting the main features and properties of the national economy and its foreign partnerships and investments. The report aims to analyze the country’s latest development in the economic climate of trade. The report is a voluntary attempt by the Ministry of Foreign Trade and a product of constructive and fruitful cooperation with all of the federal. It is also considered as a precedent. It adopted. The third section is concerned with clarifying the practices and procedures that are related to the country’s trade policy. developed and implemented modern and effective plans and programs to diversify its exports structure and international trade partners. the first of which tackles the status of the country’s economic environment. rightly remains to be one of the pillars of growth and development that have enabled the country to compete with major countries in economic performance and progress. and trade policy frameworks of the agricultural. followed by a look into the prospects and developments of the economy. energy. the goals of this policy. tools. local government authorities in addition to the private sector. which will take place in 2012. indicating the practices that have a direct impact on imports. manufacturing and services sectors. exports as well as production and trade. water. The statements. goal. It also embodies the keenness of this government strategy to instill and strengthen the foundations and yardsticks of transparency as a strong base for its domestic and foreign policies. and statistics of this report. emphasize the UAE’s continued pursuance and implementation of a trade policy framework that is in line with its regional and international obligations. and its growing economic power make it an increasingly important supporter of the multilateral trading system…”. mining. The release of this report stems from the vision. It covers the period that followed the first UAE Trade Policy Review report issued by the WTO Secretariat in 2006. highlighting the features. and increasing the levels of commercial exchange with those markets.The Ministry of Foreign Trade is pleased to issue this update on the status of the UAE’s foreign trade policy. in what is considered as a global testament that affirms the country’s outstanding trade success: “The UAE’s generally liberal and increasingly diversified economy. These are the ingredients that led to the expansion and diversification of foreign markets receiving country exports. The report contains four sections. The WTO goes on further to say. Concurrently . It is considered as the beginning of preparations for the second review of the trade policy of the United Arab Emirates.
and exclusive distribution rights (ii) Customs procedures (iii) Rules of origin (iv) Tariffs.United Arab Emirates Page i CONTENTS Page I. and assistance (v) Free zones (3) . licensing. MAJOR FEATURES OF THE ECONOMY RECENT ECONOMIC DEVELOPMENTS TRADE PERFORMANCE AND INVESTMENT OUTLOOK 1 1 4 7 11 12 12 14 16 19 19 21 23 24 24 30 30 30 30 33 34 35 38 43 43 46 50 50 50 50 50 50 51 52 TRADE AND INVESTMENT REGIMES (1) (2) (3) (4) THE INSTITUTIONAL FRAMEWORK TRADE POLICY FORMULATION AND IMPLEMENTATION POLICY OBJECTIVES TRADE AGREEMENTS (i) WTO (ii) Regional agreements (iii) Bilateral agreements (iv) Other preferential arrangements INVESTMENT FRAMEWORK (5) III. insurance. TRADE POLICIES AND PRACTICES BY MEASURE (1) (2) INTRODUCTION MEASURES DIRECTLY AFFECTING IMPORTS (i) Registration. ECONOMIC ENVIRONMENT (1) (2) (3) (4) II. other duties. and controls (vi) Contingency trade remedies (vii) Standards and other technical requirements (viii) Government procurement (ix) Local-content requirements (x) Other measures MEASURES DIRECTLY AFFECTING EXPORTS (i) Registration and documentation (ii) Export duties and taxes (iii) Export prohibitions and restrictions (iv) Export subsidies. finance. and taxes (v) Import prohibitions.
ENERGY. and gas (iii) Electricity. water. and utilities MANUFACTURING (i) Main features (ii) Policy framework (iii) Policies in selected industries SERVICES (i) Construction (ii) Transport (iii) Telecommunications (iv) Tourism services (v) Financial services (vi) Trade in business and professional services (3) (4) (5) REFERENCES APPENDIX TABLES . AND WATER (i) Overview (ii) Petroleum.Trade Policy Review Page ii Page (4) MEASURES AFFECTING PRODUCTION AND TRADE (i) Incentives (ii) State-owned enterprises. and privatization (iii) Competition policy and price controls (iv) Intellectual property rights 53 53 54 59 59 64 64 64 64 69 72 74 74 75 78 81 81 82 83 87 87 88 99 102 105 110 115 117 IV. TRADE POLICIES BY SECTOR (1) (2) INTRODUCTION AGRICULTURE AND RELATED ACTIVITIES (i) Main features (ii) Main policy instruments (iii) Developments regarding selected products MINING. state trading.
2 TRADE POLICIES AND PRACTICES BY MEASURE Tariff escalation by ISIC 2-digit industry.3. 2000-2008 Domestic agricultural support measures.2 III.2 III.8 IV.1 III.2010 Balance of payments.2 IV.United Arab Emirates Page iii CHARTS Page III.1 I. 2005 TRADE POLICIES BY SECTOR Agri-food trade.1 II. 2005 Prohibited products. 1995 .1 IV. by commodity in 2007 Abu Dhabi development expenditures.2 II. II. III. 2005-08 65 67 70 71 74 75 80 81 100 103 106 108 31 35 38 48 15 20 28 29 1 5 9 . November 2010 Bilateral investment treaties Avoidance of Double Taxation Agreements TRADE POLICIES AND PRACTICES BY MEASURES Commercial agencies by type of activity 2007 Structure of the MFN tariff.3 IV. 2004 . IV. IV. January 2007 Trade in manufactured products.6 IV.7 IV.2 I. III.1. by HS section.1 IV.4 IV.5 IV. production. 2010 TRADE POLICIES BY SECTOR Main agricultural products. 2006-2009 United Arab Emirates rank in the world.11 ECONOMIC ENVIRONMENT United Arab Emirates at a glance.1 II.2 IV. and exports of oil and natural gas.9 IV. 2010 Projects implemented by the UAE Offsets Group. 2007 Selected monetary and banking indicators. 1995. and 2008 Insurance premiums and claims paid.1. . 2004-08 Hotel indicators.3. 1990-2008 Activities of the Abu Dhabi National Oil Company. 2009 Structure of Abu Dhabi Electricity & Water Sector 68 80 36 TABLES I. I.1 IV. 2009 Electricity and water charges. 2008 & 2009 Telecommunications indicators.4 IV.10 IV.3 III. 2008 and 2009 Main economic indicators. 2000 and 2001 Reserves. 2005-2010 TRADE AND INVESTMENT REGIMES Main federal trade-related laws in the UAE UAE's selected notifications to the WTO. 2000.3 II.
2 III.Trade Policy Review Page iv APPENDIX TABLES Page I.1 AI. 2004-08 Origin of imports. 2005 119 117 118 . AI.1 ECONOMIC ENVIRONMENT Destination of exports (including re-exports). 2004-08 TRADE POLICIES AND PRACTICES BY MEASURES Applied MFN tariff averages by HS2. AIII.
Abu Dhabi.6 1. Majority of the UAE's population is foreign.5 9.4 53.3% of total world reserves). and gas Construction Trade Restaurants and Hotels Transport.9 5.8 8. 1.3 42. It has a land mass of 83. Dubai. (1) ECONOMIC ENVIRONMENT MAJOR FEATURES OF THE ECONOMY 1.3 249. Table I.6 million tourists in 2009.uaestatistics.7 8. water.7 17.7 6.. The UAE shares a border with Saudi Arabia and Oman. based on a long-standing trading history and a generally probusiness stance.7 10. tends to be replicated across the country.S. livestock and fishery Mining Manufacturing Electricity.6 10.7 1.5 914.6 33.7 9. The services sector 1 2 The others are Ajman. and over 90% of crude oil and gas production. The United Arab Emirates (UAE) is a federation of seven emirates located in the Arabian Gulf.4 1. airports. United Arab Emirates. close to 40% of the population. and a total population in 2009 estimated at 8. essentially by developing its location as a leading transhipment and re-export centre.9 10. storage and communications Real estate Social and personal services Financial services Government services 145.20 a Initial Source: National Bureau of Statistics.0 .3% of the country's total GDP. at current prices) In UAE dirhams In U. 3.8 7.gov. Analytical Report on Economic and Social Dimensions in the United Arab Emirates. The highly decentralized policy-making process appears to induce intense competition among the large emirates (in particular) in terms of economic achievement. In 2006.0 1.8 15.40 2008 8. The urban population accounts for 75% of inhabitants as four fifths of the territory is desert. such as ports. 2008 and 2009 1995 Population (million) GDP total (billion. . 2.ae 3 OPEC (2009).2 1. and depend on financial support from the Federal Government and the two largest emirates.6 6. Fujairah.3 7. and IMF Staff Reports.9 30.6 934.0 5.19 million Table I. various issues.7 11.1 United Arab Emirates at a glance.2 16. 2009.1. and may explain that infrastructure.07 2009 a 8.6 10. it welcomed close to 7. Abu Dhabi City is the federal capital.. The other emirates rely on a mix of trade and light manufacturing. and seventh largest reserves of natural gas (3.3 The authorities estimate that these reserves will last more than 100 years at current production rates.1 8.0 2. The UAE has the world's seventh largest proven reserves of crude oil (7. and free zones. Abu Dhabi accounts for more than half of the country's total GDP. dollars GDP per capita (US1000$) Share of GDP at current prices (per cent) Agriculture. The federal economy depends 28.7 5. and contributes 32.5 8. Dubai is the second largest emirate in terms of economic size.3 254.5 7. 37 million passengers used its all airport in UAE 2006 It has become the region's centre for trade. Ra's al Khaimah.1 1.600 square kilometres2. and Sharjah are the three largest1.2% of the world total). Among the Emirates. National Bureau of Statistics 2009 www. a relatively low share compared with other Gulf countries.7 29.720 2.4 1. 1995 .United Arab Emirates Page 1 I.2 1.9% of its GDP on petroleum and gas mining in 2009 (down from 74% in 1980). and Umm al-Qaiwain.
the UAE ranked 35th out of 179 countries in terms of the UNDP Human Development Indicators. and the persistent inflow of foreign labour. real estate and construction. The manufacturing sector is large and dynamic. rather than total factor productivity. an independent budget and full capacity to conduct its affairs and those legal transactions which are necessary for performing its duties.ae) 5 UNDP (2009). 5. and a large number of nationals is likely to enter the labour force in the near future. accounts for most non-oil output expansion over the 1981-2000 period.9% according to a recent study.1).6 The growth of labour and capital. high fertility rates.gov. in February 2010 the UAE Cabinet has approved a Historic National Charter that aims to transform the UAE into one of the best countries in the world by 2021. this expansion was possible because of the UAE's open foreign labour policy. In February 11th 2006 a new cabinet was formed and H. unemployment among UAE nationals has increased rapidly to 12. It concerns mostly Emiratis because foreigners do not generally have access to unemployment status and benefits. Its growth over the last thirty years has allowed the country to achieve one of the world's highest per capita incomes. reducing unemployment becomes a strategic priority for newly formed cabinet. (www.7 In turn. In recent years. as the price of oil increased substantially from its 1995 level of US$20/barrel. Moreover. 7 IMF (2003). and forward-looking Government9. The Prime Minister unveiled the second round of federal government strategy from 2011 till 2013. and is achieved thanks to important state support since the early 1980s. To create employment opportunities for UAE nationals. Agriculture contributes 1. these main subsectors have grown significantly in nominal value terms. this share is high given the quasi-desert nature of the territory. at close to US$53400 by 2008. which has enabled the private sector to recruit expatriate workers at competitive wages. and therefore are not recorded. The National Bureau of Statistics (NBS) has a legal character.4 4.The UAE National Historic Charter called for continued focus on the increased involvement of Emiratis in the private sector11.8 As a result. lean. and will report directly to the Cabinet. In 2009. Prime Minister of UAE. wholesale and retail trade. Sheikh Mohammed bin Rashid Al Maktoum was appointed as a Vice President. The National Bureau of Statistics of the United Arab Emirates has been established by the Federal Law No. close to half of the Emirati population of Emirati nationals is under 15 years old. The Bureau shall be considered the sole official statistical source for the State and the source of its official statistical data.4 billion (Table I.H. "emiratization quotas" and other measures have been put in place at federal level (Box I. but mainly by a large and sustained influx of foreign labour that allowed the non-oil sector to develop rapidly and competitively. 9 of 2009. led by external trade – the country is an important transhipment and re-export centre – and by public administration services.6%). to satisfy the needs of the national development of the country and to organize the work of the national statistical system. Moreover. In 2008 total GDP of the UAE stood at around US$254. due to the wide gap between birth and mortality rates.7% in 2008 to GDP.6% to the GDP in 2008. 6 This population growth rate has remained among the world's highest in recent years (5. The strategy doctrine strives to ensure that all Government work is conducted according to a set of guiding principles that puts citizens first and promotes an accountable.Trade Policy Review Page 2 contributes about 35. The economic vision of the National Historic Charter envisages development of knowledge-based economy that will be diverse and flexible led by skilled professional Emiratis. 8 Source : The Official Web Site of the Prime Minister of the UAE 9 Source : The Official Web Site of the Prime Minister of the UAE 10 Source: Khaleej Times: UAE Unveils 2021 National Historic Charter 11 Source: EIU: EIU Country Report 4 . this share has not expanded significantly since 1995. The year 2021 will correspond with the golden jubilee anniversary of the UAE10.1). The NBS is responsible for preparing the national statistical system.uaestatistics. largely based on activities in free zones. Nevertheless.5 This performance was made possible partly by the expansion of the hydrocarbon subsector. innovative.
Based on that mandate. and foreign competition in particular. it was announced that legal action would be taken against these companies. authorizing Tanmia to follow up the progress of Emiratization in the banking sector. these restrictions do not apply to the free zones (Chapters II(5) and III(3)(v)). The banking sector in the United Arab Emirates is of major interest to the country in terms of its contribution to the Gross Domestic Product. which makes it an important employer of Nationals. is collecting and updating data on Emiratization in this sector. the Cabinet issued its resolution # 42 entrusting Tanmia with the task of monitoring Emiratization of this sector. Given the strategic role the sector plays. Given the strategic and developmental role the sector plays. and its role in enhancing the effort to diversify the economic base.United Arab Emirates Page 3 Box I. Given the strategic and developmental role the sector plays. Airlines and civil aviation authority follow international . and favourable repayment terms. the authorities of certain emirates have also developed programmes to encourage entrepreneurship among nationals through the creation of small and medium-sized enterprises (SMEs). And in 2004. the Council of Ministers issued its resolution # 202/2 for 2003 obligating all insurance firms operating in the UAE to raise their intake of National employees to 15% by the end of 2003. is collecting and updating data on Emiratization in the banks operating in the UAE. the Council of Ministers issued its resolution # 259/1 for 2004 obligating all trading firms employing 50 or more workers to raise their intake of National employees at the rate of 2% per year. in cooperation with the Central Bank. In addition. and its role in enhancing economic diversification and supporting business activities. In February 2005. the Council of Ministers issued its resolution # 10 for 1998 obligating all banking operating in the UAE to increase their intake of National employees at the rate of 4% per year. low interest rates.1: UAE "emiratization" policy The emiratization policy was introduced in 1998 by the National Human Resource Development and Employment Authority (Tanmia). the newspaper Gulf News reported that Tanmia was preparing a list of companies that did not meet the ratio requirement for the hiring of UAE nationals. Based on that mandate. which makes it an important employer of Nationals. These programmes offer a simplified application process. The attractiveness of the UAE's free zones results partially from competition and investment restrictions that prevail in the rest of the economy. 6. which makes it an important employer of Nationals. Tanmia also offers training programmes for nationals to ensure that they have adequate skills to be hired by the private sector. the Minister of Labour and Social Affairs issued a ministerial decree no 43 for 2005. This policy aims to increase the number of nationals employed in private sector activities. Tanmia. Pursuant to that Cabinet resolution. and to facilitate integration with the rest of the world. On the export side. And in 2005. Source: Tanmia. The trading sector in the United Arab Emirates is of major interest to the country in terms of its contribution to the local economy. Tanmia. but the government is encouraging privatisation and an overall transition to private sector participation in the economy. Emiratization in this sector has encountered serious challenges and most trade companies have been unable to comply with the quota. UAE companies that compete internationally are in most cases government-owned. at the rate of 5% per year. the general prohibition on foreign majority ownership of local companies and substantial state involvement in selected activities) limit market competition in general. According to the authorities. important restrictions (through exclusive dealership arrangements. starting from 2004. and the availability of skilled jobs where good working conditions exist for nationals. The insurance sector in the United Arab Emirates is of major interest to the country in terms of its contribution to the Gross Domestic Product. In 2005 the Cabinet issued its resolution # 41 entrusting Tanmia with the task of monitoring Emiratization of this sector. The targeted sectors were selected based on two principal criteria: the economic health of the industry and its importance to the country. the Cabinet issued its resolution # 259/1 approving a set of measures for boosting Emiratization of jobs in the private sector. in cooperation with the Central Bank. Although economic policy purports to be liberal and business-friendly throughout the UAE.
2). 7. The consumer price index (CPI) stood at 114. such as office and consumer electronics or medical equipment. compared to 10. and subsequently in high-technology industries.gulfnews.6725 per US$1 since November 1997. including toward the adoption of a common currency (planned for 2010 but will be delayed). not a supplier.15 billion ($145 billion)According to the International Monetary Fund data. Inflationary pressures have been mounting since 2000. 12 13 IMF (2004). including the global economic slow-down beginning in 2008.7% (in 2001). Dubai is considering a bid for the 2020 Olympic Games. the UAE has withdrawn from the monetary union in May 2009 together with Oman13 the UAE dirham has become officially pegged to the U. (2) RECENT ECONOMIC DEVELOPMENTS 9. in practice. but a reduction was achieved based on a combination of factors. 10. UAE's total government debt is expected to come down to 9.20%. The mid-point between the official buying and selling rates for the dirham has been Dh 3. manufacturing. and since then has continuously recorded strong expansion in transport services to become the region's main transport hub. In 2006.com/business/Banking_and_Finance/10315328. including sports facilities. However. Source: http://archive. The tremendous industrialization effort undertaken since 1980 took place first in energy-intensive industries. leisure parks. Currently. The UAE appears to be heading for a sharp decline in inflation through 2009 as the rate averaged about 3. For 2008 real GDP growth was estimated at 7.9 billion ($170 billion). it was pegged to the U. an increase of 3. dollar.4% (Table I. the revenue has financed activities in. The UAE's exchange system is free of restrictions on payments and transfers for international transactions. Dubai was considering making a bid for the 2016 Olympic Games. though. The UAE dirham (Dh) was officially pegged to the Special Drawing Right (SDR) from November 1980 to December 2002. and centers for international conferences and events.24 in the first half of the year compared with 110.S.S. The UAE has grown from a small fishing and pearling nation (before its first export of oil in 1962). 8.Trade Policy Review Page 4 operational principles and do not engage in or affect “trade” for WTO purposes. construction. of financial services.html .4 per cent.4 per cent in the first half with negative year-on-year growth in June. the UAE's lowest economic growth has been 1. Since then. into one of the strongest and fastest-growing economies in the world.4 per cent of the GDP by the end of the year. important public investment has been made to develop tourism. This performance has been supported by windfall revenue from the doubling of oil and gas prices between 1998 and 2001. the DIFC is a regulator. The UAE's external debt stood in 2008 at Dh623.6 per cent in 2007. up from last year's Dh532. in line with commitments agreed with other GCC countries (Chapter II(4)(ii)(a)). on the basis of the UAE's comparative advantage. and financial services. Since 1999. inflation was estimated at between 15 . however it were discouraged as nearby Doha made an official application in 2007. except for certain restrictions under terrorist financing provisions that have been taken in accordance with UN resolutions. reflecting soaring domestic demand (as oil proceeds have been increasingly reinvested locally) and increased capital inflows. dollar at a fixed parity12. The country was also the first in the region to strategically develop both airport and seaport facilities in the 1960s. The UAE accepted the obligations under Article VIII of the IMF Statutes on 13 February 1974.49 in the first half of 2008. inter alia. and again between 2001 and 2005. In addition.
6 29.8 14.6 1.4 1.2 18.2 billion (compared to AED 34.6 17.0 1.6 3. income from government funds invested abroad (since 1980) by the Abu Dhabi Investment Authority (ADIA.0 1.3 19. A national value-added tax system is also being explored to increase public revenue.8 0.7 72.2 The revenue comprises a royalty on proceeds of companies holding concessions in the hydrocarbon sector.8 36. In April 2005. gas and water Construction Services Wholesale Retail Trade and Repairing Services Restaurants.7 19.1 2010 30.7 50.5 23.4 24.7 6.7 9.9 billion in 2008) maintaining a zero deficit for the fifth year running15.2 1.8 14.1 11.0 21.7 15.4 22. Table I.8 16. The measures include reductions in agriculture subsidies.9 28.7 17. and marginal revenue from import taxation.9 14.2 4. a large fiscal surplus was since 2004. and 15% for non-nationals.4 26.0 -10.5 105.1 12.6 15.1 14.3 32.5 21. 2004-2010 2005 National accounts (annual % change in real terms) GDP Agriculture and fishing Mining and quarrying Crude oil and Natural Gas production Manufacturing Electricity. and reducing producer subsidies and transfers.2). The Emirate of Abu Dhabi has signalled its intention to turn increasingly to the private sector to shoulder the costs of water and electricity (Chapter IV(3)). However.2 2007 17.7 9.7 -12.0 47. the surge in hydrocarbon prices led to a rise in government revenue14.2 Main economic indicators.0 56.6 17.0 16. Corporations Sector Real estate and Business Services Government services Other services Less: Imputed bank service charges Final consumption Private consumption Government consumption Gross fixed capital formation Changes in stocks Exports of goods and non-factor services Imports of goods and non-factor services 14 2006 27.9 16. see below). In 2009 the Federal budget amounted to AED 42.0 22.2 15.9 20.8 6. .3 10.9 44.8 24.1 18.0 31.3 8.0 17. revenue from a 20% tax on profits made by foreign banks.1 15.4 13.8 15. 15 Ministry of Finance. in 2003 and 2004.0 -22.4 29.0 47.7 20. The non-hydrocarbon fiscal deficit varies between a fifth and a third of GDP (Table I.5 92.2).3 21.9 11.1 8.9 20.1 14.0 2008 23.9 33.0 12.8 35.3 13.1 33. Information about Federal Budget 2008 and 2009. and Hotels Transport and communications Finance.7 67. the authorities announced that salaries of federal employees and Abu Dhabi government employees would increase by 25% in the case of nationals.0 -1.4 26.2 17.1 18.1 23.1 24.4 15.0 15.9 26. and an increase in pump petrol prices by an average of 20% during 2005 and increase by 15 files by litter in 2010.5 35. The authorities indicated that steps have been taken to reduce it by containing the growth of spending.2 12. The consolidated budget frequently runs large deficits (Table I.2 25.0 14.4 2.4 2009 a -2.9 2.6 20.2 15. The global financial slowdown continues to affect the UAE economy.United Arab Emirates Page 5 11. but government spending on infrastructure had underpinned confidence of investors and local and foreign private sector on the UAE market.0 21. this should help to reduce subsidies as these utilities are generally provided to the population at subsidized rates.9 4. however.1 -32.
S.6 20.7 6. .67 121. net) In months of next year imports of goods and services Nominal exchange rate (Dh per US$) Nominal effective exchange rate (index 2000 = 100) 6.6 8.67 103.2 9.5 171.2 28. Analytical Report on Economic and Social Dimensions in the United Arab Emirates.3 Source: IMF.1 2008 12. Staff Report.0 3.8 23.3 39.5 Non-hydrocarbon fiscal balance (as % of GDP)b -16.1 330..2 130.A.5 30.6 49.9 7.67 107.9 299.1 62. Source: IMF.5 0.7 138 56.3 3.5 -2.7 -14.4 9.0 292. United Arab Emirates. various issues 12. National Bureau of Statistics.2 2006 9.8 -29. reflecting the .E.0 22. end of period) Total revenue 203.3 2007 11. Domestic interest rates have largely moved in tandem with U.3 360.9 4.5 2.3 2. dirham’s .4 . rates.1 28.9 2.8 Balance (as % of GDP)b 20.3 2009 a 14. In 2003-04.0 2010 16. except some aspects of the recently created Dubai International Financial Centre.6 289 3.0 30. various issues. Central Bank of UAE. Monetary policy is conducted by the Central Bank of the UAE (CBU). the monetary environment was that of high levels of liquidity and low interest rates.2 External debt (US$ million) External debt (as a % of GDP) Financial indicators (%) a b Broad money (M2) Preliminary estimates.4 -33.current prices.0 2.2 41.4 163.8 52.2 9.3 3. Annual Reports. Staff Report.7 41.4 77. The main instruments to regulate domestic liquidity are the CBU's certificates of deposit of up to 18 months maturity and the reserve requirements. The thrust of Central Bank monetary policy is to accumulate substantial reserves with a view to maintaining the currency's peg to the dollar.5 Consolidated government finance (In billions of U.5 -27.3 254 196. 3.8 Total Expenditure and grants 104 128 167 Overall Balance (consolidated)b 99.7 29. Negative sign indicates deficit. 33..5 -13.67 96.2 3.9 21.67 101.6 80.7 132 56.5 21.7 450.9 271 89. which has authority over most financial institutions.4 19.Trade Policy Review Page 6 2005 Consumer prices (annual average) External sector Current account Balance (% of GDP) Gross official reserves (US$ billion.1 135.
and 2. Another factor contributing to this decline is the domestic demand. i. The three-month inter-bank rate for the UAE dirham declined to 0. This brought about a significant improvement in the trade deficit. mainly to India. due to weak demand for credit from firms and households in addition to the cautionary approach applied by major lending institutions. The second largest source of revenue is re-exports (around one third of total merchandise exports). Dubai Holdings. while gas exports have more than doubled in value. This reflects the importance of the UAE as a centre for re-exports. around 142%. Although both export and import volumes achieved approximately similar growth rates. This surplus has increased strongly since 2002. A combination of global and domestic slowdown led to a decline in imports by 16%. Broad money growth slowed down in 2008 from 19% to 10% in 2009 . In 2007 the trade surplus was estimated at USD 53 billion. and Iraq.2).8 per cent deficit in 2008 since imports accounted for 72 per cent of the trade exchange volume. despite large current transfers by expatriate workers and the permanent deficit of the services account. Iran. UAE trade balance suffered a 52. reaching US$28. The UAE is a trading nation. and Abu Dhabi International Petroleum Investment Company. to nearly 12% of GDP in 2004 (Table I. In 2009 and as a result of the global slowdown the export and re-export sector decline by 19% compared to the previous year.e. A substantial portion of the large recent increase in re-exports reflects the role of the country's ports in the supply of merchandise for the reconstruction of Iraq. Real interest rates have been negative since 2002. However. 14. DP World. as a result of a surge in merchandise exports (in line with rising oil prices).2).(see figure 1 & 2) 16 The slowdown of the economic engine of Abu-Dhabi was largely due to the decline in export earning as a result of the slowdown in global demand for petroleum product. partial quantity of this liquidity was converted in to Certificate of Deposit with the Central Bank (3) TRADE PERFORMANCE AND INVESTMENT 13.7% in 2003 before rising again to 1. UAE trade deficit declined by 45% in 2009 in comparison with the trade deficit in 2008. Its current account has been in surplus since independence in 1971. The rise reflects rapidly increasing bank credit to the private sector and to stateowned enterprises.United Arab Emirates Page 7 international environment as well as the large inflow of resources related to the oil boom and to the strongly growing economic activity. Domestic demand for goods and services deteriorated due to a combination of external and internal shocks.6% in 2004. as witnessed by its high ratio of imports plus exports (of goods and services) to GDP. including its official Abu Dhabi Investment Authority.1). . Petroleum products are a major cost input into the economic engine of most developed economies.5% in 2009. The broad money stock has been increasing rapidly. the UAE remains a net services importer. The trade balance is traditionally in strong surplus. the halting of the economic engine of Dubai due to the slowdown in the property market and the relative halting of the economic engine of Abu-Dhabi in 200816 as demonstrated in the above figures had its implication for the aggregate money supply. The UAE is also an important participant in global capital markets through several investment institutions. The main source of export revenue is crude oil and condensates (Table AI.1 billion in 2004. Exports of petroleum products were estimated at US$66 billion in 2007. well above the rate of GDP growth (Table I.
1 15. with investment topping US$21 billion. . Imports & Trade Deficit (% Change) 60% 40% 20% 0% 2006 ‐20% ‐40% ‐60% Imports of goods & services (% Change) Exports and re‐exports of goods & services(% Change) 2007 2008 2009‐12% ‐16% ‐45% Trade deficit improved by 45% from 2008 to 2009 Figure 2 UAE Trade Deficit UAE Trade Deficit From 2005‐2009 45 40 35 30 25 20 15 10 5 0 2004 2005 2006 2007 2008 2009 2010 Trade Deficit 16. The main non-hydrocarbon exports from outside the free zones are clothing.Trade Policy Review Page 8 Figure 1 Exports. Nearly 60% of non-hydrocarbon exports originate in free zones. mainly the Dubai Jebel Ali Free Zone Authority (Jafza). More than 17. Imports & Trade Deficit in Percentage Changes Exports. the main products exported from Jafza consist of machinery and appliances.000 companies are based in UAE free zones. and aluminium. tobacco products. including computers and other consumer electronics.
2 -12.1 -96.8 -10.6 29.7 -32.1 -60.0 50.6 144.4 4.6 45.7 -137.2 47.3 -39.3 63.5 29.9 40.7 -6.2 -1.3 2.2 -176.6 -6.8 16.7 -3.8 91.1 Proj.0 -8.0 -9.1 6.4 47.9 -17.4 48.4 2.5 239.b.4 5.5 9.6 4. 2009 -6.1 85.5 -21.4 26.5 47.8 21.2 182.7 -1.7 -42.0 2.9 9. estimated at 40 to 70 percent of emirates imports.1 34.8 8. authorities.5 43.1 -9.8 59.0 17.4 6. and GCC countries (15%) at 2009.2 -0.0 -4.4 1. 2/ Estimate of investment income of sovereign wealth funds.5 -0.6 7.2 -2.8 22.7 -0.6 -17.7 -11.1 56.4 8.8 2.0 -39.8 65.9 8.3 -10.9 115.0 -0.6 2007 19.4 -14.2010 (US$ billions) 2005 Current account balance (In percent of GOP) Trade balance Exports Hydrocarbon Crude oil & condensates Petroleum products Natural gas Nonhydrocarbon Exports by emirates Free zone exports Re-exports 1/ Imports (f.2 4.6 -10. net Commercial banks Private non-banks and other Official capital Errors and omissions Overall balance Change in central bank net foreign assets Memorandum items: Overall balance (percent of GOP) Gross reserves of central bank Sources: UAE. Table I. net Transfers.0 -13. 2010 18.3 -21. 1/ Not separately compiled.0 2.5 22.1 66.5 2.9 30.6 -135. and other East-Asian countries (Table AI.2 3.1 28.3 4. Chinese Taipei.1 8. to Arab countries (26%).1 1.7 16.1 -10. . Article IV Consultation – United Arab Emirates.4 -38.7 -23.4 5.7 25.o.2 -33.7 -14.6 -9.8 9.3 -130.9 2008 22.0 15.1 61.1 -29.0 16.0 7.2 22.4 -9.United Arab Emirates Page 9 16.6 18.2 -7.4 7.2 1.2 28.7 13. Staff Report.3 47.1 1.6 28. 2005 . net Portfolio flows.9 Est. 1.3 -8.5 -46.9 -49.6 -26.5 -14.1 49.7 11.0 179.) Imports by emirates Free zones Income.2 60.1 -9.0 56.6 9.5 -0.1 1.2 5.5 3.6 2.3 28.5 -11.7 47.1 -67.0 20.8 22.7 40.8 5.2 -0.9 -11.0 0.2).3 -17.4 5.4 3.5 -57.6 -0.9 -0.8 63.6 Source: IMF (2009).3 Balance of payments.9 12.9 46. and to Europe (18%).5 22.2 6.2 -20.6 -30.2 -12.5 -2.4 39.6 62.2 64.5 2006 36.2 -18.9 2. and Fund staff estimates. Non-oil exports are mainly shipped to India (33% of non-oil merchandise exports). Washington D.7 -5.9 39.2 -13.5 8.7 -0. net Government 2/ Services.8 -1.4 5. Exports of crude oil are directed mainly to Japan.2 5.9 3.8 163.8 -74.2 -98. net Private (incl.0 -88.8 70.0 77.9 8.9 1.0 24. Re-exports are destined to Iran 18% of total Re-exports and India 17% of total Re-exports.2 -25.2 9.7 9.1 -89.C.8 -10. remittances) Official Financial account balance (in percent of GOP) Private capital Direct investment.6 -1.6 -55.5 94.1 7.8 6.2 11.2 8.7 25.5 14.6 -6.4 42.1 -3.6 -132.
19 Outward FDI flows have also been large recently. Morgan Guarantee Trust and Indosuez). as well as in distribution services benefiting from low costs. 19. and investment-grade credit within fixed income. Most of this capital is managed by the Abu Dhabi Investment Authority (ADIA).html. A factor contributing to the expansion of inward FDI may have been the liberalization of the real estate subsector in Dubai. The bulk of FDI has been directed into real estate projects. Foreign direct investment (FDI) inflows have advanced rapidly since 2000. In 1989 ADIA started investing in private equity. and the resulting investment boom both in housing and in development projects such as Dubai Internet City. India (14%). 18.17 Other investment opportunities are available in Small and Medium Enterprises (SMEs).085 billion by 2007. net FDI inflows reached about US$16. In 2007 ADIA started investing in infrastructure sector and then it moved into new headquarters. and franchising. In 2009 the department of Investment Services Department was created.2% as compared to 2007. Specialized free zones have recently been established to encourage trade and investment and trade in targeted services sectors. ADIA is responsible for investing all of the Abu Dhabi Government's oil revenues and assets worldwide. efficiency enhancing infrastructure. In 1993 ADIA started formal asset allocation process with a set of benchmarks and guidelines. one of the world's largest government financial investment vehicles. UAE imports in 2009 were valued at $121. In the same year ADIA was appointed co-Chair with IMF of International Working Group of Sovereign Wealth Funds. light engineering and manufacturing.8 billion. In 2008 ADIA participated in the development of policy principles for international investments with the U. inbound FDI reached US$ 34. Japan (6%). Italy (4%). According to official statistical data (Ministry of Economy). Real Estate.18 Jebel Ali Free Zone in Dubai in particular has total estimated annual revenue of over US$8. Treasury. 19 UNCTAD (2005). a fall of 3. The bulk of the companies in Jebel Ali are active in the assembly of electronic products. power and water. as a result of acquisitions abroad by Dubai Ports International and its successor DP World (in port services). reflecting the regular placements of official capital abroad.5 billion in 2005. The government has launched efforts to improve the collection of statistics on FDI and on economic performance generally. Silicon Oasis.Trade Policy Review Page 10 17. Bonds moved from Equities Department to Treasury Department. medical equipment. Knowledge Village. For background and information on UAE free zones.In 2008. In 1998 it started investing in inflation-indexed bonds. by Dubai Islamic bank (in banking). and into the free zones (Chapter III(3)). computers. Finance and Administration. and by other state owned enterprises. . Korea South (4%) and France (3%). FDI in the UAE was estimated to have reached 18 billion.S. The financial account registers large net outflows. renewable energy and Islamic banking sectors. local and Arab investments.86 billion in 2005. In 2005 ADIA dedicated allocation to small caps within equities. chemicals and food. Germany (7%). the United Kingdom (4%). In 1986 it Started investing in alternative strategies. Europe and Far East). telecommunications. subsequently the following department were created: Equities and Bonds. ADIA's total assets are estimated at USD 600 17 18 According to the Abu Dhabi Chamber of Commerce. Leading sectors attracting FDI appear to be oil and gas field machinery and services. 156 Greenfield investments were made in the UAE in 2004. by Etisalat (in telecommunications). Leading importers into the UAE are the United States (9% of total imports). In 1967 Abu Dhabi’s “Financial Investments Board” was created under the auspicious of the Department of Finance(Mandate given to UBS.uaefreezones. In 2008 the UAE attracted US$13. Principal UAE imports are machinery and transportation equipment. In 1987 the Equities and Bonds departments became regional (North America.com/home.7 billion of FDI. then it became a Founding member of the International Forum of Sovereign Wealth Funds (IFSWF). In 1976 the government of Abu-Dhabi decided to separate ADIA from the Government of Abu Dhabi as an independent organization. Department of the Treasury. According to UNCTAD. Dubai International Financial Centre and others. Robert Fleming. In 2009 the UAE had 283 Greenfield investments made up from 88 in 2002. China (11%). see http://www. and logistics services.
b) To comply with all applicable regulatory and disclosure requirements in the countries in which they invest. risk management and accountability. and is one of the most influential operators in international financial markets. compared with an earlier estimate of a 0. a condition of membership in the ongoing International Forum of Sovereign Wealth Funds. according to the IMF's World Economic Outlook.ae . However. and countries receiving SWF investments. making it the world's largest sovereign wealth fund. the Principles. and would not subject SWFs to any requirement.4 per cent growth in 2010. Later ADIA assumed the role of co-chair of the International Working Group of 26 SWFs. or regulatory action exceeding that of other investors.adia. obligation. There was a drive to create an agreed framework of Generally Accepted Principles and Practices that reflected appropriate governance and accountability arrangements. This was achieved in September 2008 when the International Monetary Fund International Working Group (IWG) of sovereign signed the so-called “Santiago Principles” in Santiago. Growth should also be supported by the numerous new projects coming on-stream. In 2008. The organisation expects the country to record 2. and thus reduce the economy's vulnerability to oil markets. ADIA reached an understanding with the US Department of the Treasury and the Government of Singapore Investment Corporation that laid out policy principles and standards for investments by sovereign wealth funds (SWFs). development and drafting of the 24 principles20. c) To invest on the basis of economic and financial risk and return-related considerations. supported mainly by large public investments in the tourism. (4) OUTLOOK 20. Non-hydrocarbon GDP growth is also expected to remain strong. While the Santiago Principles are voluntary. and construction subsectors. The UAE's large official assets accumulated abroad since the 1980 provide a sizeable and steady flow of income that could dampen the negative effects of a weakening of oil prices.United Arab Emirates Page 11 billion to 875 billion as of 2007. restriction. is endorsement of. This culminated in the widely publicized Generally Accepted Principles & Practices of sovereign wealth funds. ADIA participated in the design. 21.6 per cent decline. transport. Large fiscal and external current account surpluses are projected to persist. 20 Source: ADIA : www. ADIA has undisclosed investments generally estimated at about US$250 billion. or in effect. A key element of this process was the expectation that if SWFs complied with the Santiago Principles. Chile. The UAE's economy is expected to shrink by 0. members are expected to support them and either implement or aspire to implement them.2 percent in 2009. In fact. compared with a previous estimate of 1. compliance with. including both oil prices and OPEC-mandated oil production quotas. also known as the Santiago Principles.6 per cent. and has taken steps to develop further its investment regime. recipient countries would recognize and respect their compliance. as well as the prudent and sound basis on which SWFs conduct their investments. the UAE's long-term success in attracting foreign investment will require improved ownership rights for foreigners and a more efficient legal and institutional framework within which claims relating to foreign investment can be effectively addressed. The Principles are underpinned by the following guiding objectives for SWFs: a) To help maintain a stable global financial system and free flow of capital and investment. d) To have in place a transparent and sound governance structure that provides for adequate operational controls. The government recognizes that steps need to be taken to maintain the optimal investment environment. The outlook for the UAE economy is naturally sensitive to assumptions about the evolution of oil markets. established by the 26 member countries in Kuwait in April 2009.
Sheikh Zayed was succeeded by his son and Crown Prince. she is in charge of the Ministry of Foreign Trade. the United Arab Emirates. the Cabinet. and other communications services.3 The Council may also relieve the Prime Minister of his post upon recommendation by the President. The amendment also named Abu Dhabi City as the capital of the State. including electing the President and the Vice-President of the Federation. and approving the nomination of the Prime Minister (selected by the President in consultation with the Members of the Supreme Council) and accepting his resignation. The six emirates .Abu Dhabi. 1 . inter alia. and labour relations. The federal system includes five bodies with no full separation of powers: the Federal Supreme Council.Trade Policy Review Page 12 II. public health. It is vested with legislative and executive powers. education. the president. security and defence. and the Federal Judiciary. was elected as the first President of the UAE. air traffic control and licensing of aircraft. Sharjah. who succeeded his brother after his death in January 2006. The seventh emirate. Sheikh Mohamed bin Rashid Al Maktoum. formally acceded to the new federation on 10 February 1972. As chief executive of the State. (1) TRADE AND INVESTMENT REGIMES THE INSTITUTIONAL FRAMEWORK 1. Headed by the Prime Minister. ruler of Abu Dhabi. the Prime Minister announced his new Cabinet. Sheikh Khalifa bin Zayed Al Nahyan. 2. foreign affairs. currency. selects his cabinet Ministers among representatives from the seven emirates. the Federal National Council. In absence of the President. 2 Ministry of Information and Culture (2005). and ruled until his death on 2 November 2004. The Federal Supreme Council is the top policy-making body of the federation and comprises the rulers of the seven emirates. and ruler of Dubai. The Prime Minister. supervising implementation through the Cabinet. nationality and immigration issues.2 Until then they had been known as the Trucial States. bringing the number of On 2 December 1996. telephone. the Supreme Council approved a draft amendment to the provisional constitution making it the permanent Constitution of the UAE. Fujairah. The President is accorded a wide range of legislative and executive powers. who is currently the Vice-President. 3 Sheikh Zayed bin Sultan Al Nahyan. In the current Cabinet. ratifying federal laws and decrees. The sharing of regulatory authority over matters related to international trade continues to evolve consistent with the UAE’s legal framework and economic development interests. with two women Ministers (Minister of Economy (now heading the new Ministry of Foreign Trade) and Minister of Social Affairs)4 To be followed in 17 February 2008 the appointment of Reem Al Hashemi and Dr. decrees and decisions sanctioned by the Supreme Council. The President is also entrusted with signing laws. postal. each emirate has jurisdiction in all matters not assigned to the exclusive jurisdiction of the federal government. 3. Ra's al Khaimah. who was elected by Members of the Supreme Council as the new President on 3 November 2004. and ratification of treaties and international agreements after approval by both the Supreme Council and the Cabinet. The post of Vice-President is held by the Ruler of Dubai. The President and Vice-President are elected by the Supreme Council for a term of five years. renewable. In February 2006. and with the requirements of WTO rules and other international trade and investment commitments. Dubai. Under Articles 116 and 122. the president also enjoys powers that include the right to convene and preside over meetings of the Supreme Council. Umm al-Qaiwain and Ajman . Maitha Salem Al Shamsi the female ministers of state. the federal authority is responsible for. the Vice-President assumes his responsibilities. According to Articles 120 and 121 of the Federal Constitution. on 2 December 1971. 4 The first woman minister in the UAE was appointed in November 2004 and was responsible for the Ministry of Economy and Planning. with separate governments and treaty relationships with Britain. the Cabinet is an executive authority of the federation.came together to establish a federal state (with a provisional federal constitution)1.
5. 10 There are no courts specialized in economic/commercial matters in the UAE. At emirate level. 8 Articles 96 and 97 of the Constitution. The federal courts of first instance have a body of judges and court presidents who hear criminal cases. Aysha Al Hamili become the first commercially licensed female pilot in the UAE and in November 2009 she was appointed as a permanent representative of the UAE on the Council of the International Civil Aviation Organization (ICAO). 4. the federal courts of appeal (civil and sharia). and Ra's al Khaimah. six each for Sharjah and Ra's al-Khaimah. Article 71 prohibits any member of the FNC from holding any other post in the federal government. and other matters. governments differ in size and complexity. In 2009 the Minister of Justice issued law No. Judgments of the federal courts of appeal are final. They are appointed for an indefinite duration. Khouloud Ahmad Jouan Al Dhahiri became the first woman in the UAE to be named as a judge. The federal judiciary comprises the Federal Supreme Court. examining and amending proposed federal legislation.5 The number of seats assigned to each emirate is based on its population. and the federal courts of first instance (civil and sharia)7. The emirates of Abu Dhabi. appointed for two calendar years. 6 Eight seats each for Abu Dhabi and Dubai. population. The federal courts of appeal comprise a body of judges including court presidents9. Capt. The Federal Supreme Court consists of five judges including a President of the court. They also hear appeals against judgments by the federal courts of first instance and the local judicial authorities. Article 116 of the Constitution states that all matters not specifically stipulated as falling within federal jurisdiction may be considered within the relevant emirates. 7 Article (9) of Federal Judicial Authority Law No.6 Women holds 9 seats in the FNC representing 22. In March 2008. The selection of representatives. together with other disputes in accordance with applicable laws. 9 There are four civil federal courts of appeals and two sharia federal courts of appeals (one based in the capital and the other in Al Ain). Sharjah.5% of the members. 3 of 1983. including serving the people and the nation. Under the Constitution. 338 regarding specialized departments at the Courts of First Instance tasked with consumer protection. is at the discretion of the ruler of each emirate. 6. The emirate of Abu Dhabi is examining the possibility of establishing specialized courts. depending on. Judgments are delivered by a single judge unless the law stipulates otherwise. The judicial system is composed of a federal and a local judiciary. questioning ministers and holding them accountable for their respective ministries.United Arab Emirates Page 13 women ministers in the federal government to four out of 22 ministers. and other matters10. including the constitutionality of federal laws. and Ajman. consolidating the principles of shura (consultation) in the country. as well as civil. Panels of three judges hear criminal cases. The emirates of Dubai and Ra's al-Khaimah established local judiciary. The Federal Supreme Court has exclusive jurisdiction under the Constitution to decide on specified matters. 5 . including courts to specific to investment and economic affairs. commercial. Umm al-Qaiwain. and areas of development. have similar local government structures. and four each for Fujairah. the FNC has a consultative role. including ministerial positions. 8. and disputes between the Federal Government and the emirates. The FNC is presided over by one of its members. which oversees the federal judicial system. 7. Since 2007 the UAE has considered the establishment of specialized courts. civil. commercial. with the exception that the latter emirate does not Article 68 of the Constitution. and discussing the annual budget. not attached to the Ministry of Justice. Abu Dhabi and Dubai hold the largest number. The Federal National Council (FNC) comprises 40 members representing the seven emirates. appointed by presidential decree and endorsed by the Supreme Council8. Dubai. inter-emirate disputes. inter alia.
Ministry of Petroleum and Natural Resources. trade in services. Ministry of Public Health. the municipalities of Abu Dhabi and Dubai. which has a role similar to that of the Federal National Council. . (2) TRADE POLICY FORMULATION AND IMPLEMENTATION 9. the Central Bank. The Council provides a forum for its members to voice concerns and suggest introduction or revision of federal legislation. Ministry of Public Health. Ministry of Agriculture and Fisheries. which was established in 13. Chamber of Commerce and Industry. Its National Consultative Council comprises 60 Members elected from among its main tribes and families and is chaired by a Speaker. Formulation and implementation of the UAE trade policy is the direct responsibility of the Ministry of Foreign Trade. and Ministry of Petroleum and Natural Resources. presided over by the Crown Prince Sheikh Mohamed bin Zayed Al Nahyan. The concept of holding the open "majlis" or council. Emirates Authority for Standardization and Metrology. The private sector provides inputs to trade policy formulation by communicating its views through the chambers of commerce and industry and the associations. municipality of Abu Dhabi. Under the Constitution each emirate is permitted to relinquish national powers to the Federal Government. Membership of the NC includes representatives from the Ministry of Finance and Industry. 12 FNC decision 1 of 1976 amending the Constitution. The Council is also vested with powers to question officials and examine and endorse local legislation. concerns and complaints to their rulers. 2005). Federal Customs Authority. intellectual property rights. Abu Dhabi. a traditional means for tribesmen to voice their opinions. the largest emirate. and presented successively to the Cabinet. discussions between Sheikhs and other citizens may address a variety of issues including economic and foreign policy. 11. Trade policies are formulated and implemented by means of legal instruments. 14 The NC comprises 33 members and is chaired by the Vice-Minister of Foreign Trade.12 and the relinquishment by each emirate of the right to join the Organization of Petroleum Exporting Countries (OPEC) and the Organization of Arab Petroleum Exporting Countries (OAPEC). Ministry of Justice and Islamic Affairs. the Executive Council. Emirates Authority for Standardization and Metrology (ESMA). Bills are prepared by the relevant ministries. Ministry of Labour and Social Affairs. The NC is supported by five sub-committees covering: market access for non-agricultural products. modern and traditional government structures coexist and evolve together. as an advisory body to the UAE negotiating team. Ministry of Justice and Islamic Affairs.through which the concerns of citizens may be directed to the government11. Ministry of Labour and Social Affairs. Ministry of Finance. Federal Customs Authority. Overall. A National Committee (NC) was created by a Ministerial Decree 4/395 of 2002 to deal with WTO related matters14. Important examples of this are the decision to unify the armed forces in 1976. matters concerning unemployment. In other emirates. 13 The institutional capacity of trade formulation was reflected in the establishments of a department fully dedicated to the formulation of foreign trade policy incarnated in the Foreign Trade Policies Department (FTPD) in the Ministry of Foreign Trade. It acts under the supervision of the Ministry of Foreign Trade. has its own central governing council. protection of domestic production. In the majlises. each of which has a nominated municipal council. Abu Dhabi also has a legislative branch at the local government level. 10. and the Singapore issues. and the University of the Emirates. Its Eastern and Western regions are headed by an official with the title of Ruler's Representative. There is a similar pattern of municipalities and departments in each of the other emirates (Ministry of Information and Culture. and its main cities are administered by municipalities. the ruler has a diwan – his office . or specific individual requests.Trade Policy Review Page 14 possess an executive council. trade-related bodies and local departments: These include the Ministry of Economy. Ministry of Agriculture and Fisheries. the Federal National 11 For example. has remained relevant. for example. The Ministry of Foreign Trade coordinates with other federal ministries. Federal Environment Authority.
and regulations. 5 of 1985 Federal Law No. 16 They come into effect one month from the date of publication or the date specified in each law. 1 of 1972. decree-laws. ordinary decrees. Treaties/international agreements. 8 of 1984 concerning commercial companies and the amending laws thereof Federal Law No. Under Article 49 of the Constitution. once ratified. 18 of 1993 UAE Federal Order No. 60/7 and 91 of the Constitution treat the same issue. According to Federal Law No. The Cabinet is also obliged under the Constitution to notify to the Federal National Council of all international agreements and covenants. 5 of 1973 Federal Law No. 7 of 2002 concerning copyrights and neighbouring rights Federal Law No 37 of 1992 on trademarks as amended by Law No. 17 of 2002 on the industrial regulation and protection of patents. for approval15. the Constitution is followed by laws. each Ministry negotiates international agreements within its jurisdiction. prevail over domestic legal instruments. 4 of 1985 and Federal Law No. 10 of 1980 concerning the Central Bank. 333 of 2004 regulating the activities of foreign insurance companies Federal Law by Decree No. 7 of 1976 establishing the State Audit Institution Federal Law No. 54/4. 3 of 2004 Federal Law No. part 5 of the UAE Constitution (Articles 100-115). However. industrial drawings and designs Federal Law No. 15 .United Arab Emirates Page 15 Council. import and export procedures. 9 of 1985 Ministerial decision (Minister of Economy and Commerce) No. regulates the legislative procedures at the federal level. as amended by Federal Act No. 21-22 December 2002) Federal Law No. Once ratified by the Supreme Council. The Federal Supreme Council is responsible for ratifying and endorsing international agreements and covenants18. 20 of 2000 on Administration of Contracts System Federal Law No. 8 of 2002 Federal Law No. 18 of 1981 concerning the organization of commercial agencies. the amended Federal Law of 1991. Decisions relating to procedural matters are taken by simple majority. 16 of 1975 (the public tenders law) Ministerial Decision No. substantive decisions by the Supreme Council must be taken by a majority of five out of the seven members. 4 of 1983 on the Pharmaceutical Profession and Pharmaceutical companies Federal Insurance Law No. Table II. rules of origin Regulation of commercial agencies (exclusive distribution rights) Commercial companies law Commercial register Civil transactions (Civil Code) Commercial transactions Government procurement Government procurement Government procurement Industrial projects Copyright Trade marks Industrial patents Pharmaceutical profession and pharmaceutical companies Insurance services Insurance services Telecommunications Postal services Banking and financial intermediation services Chapter 1. In descending order. and to the President of the Federation. The main trade-related laws and regulations of the UAE are presented in Table II. 3 of 2003 regarding the organization of the telecommunication sector. 14 of 1988 Federal Company Law No. the sole Ministry authorized to sign such agreements is the Ministry of Foreign Affairs. 12. and the Executive Order of the Supreme Committee No. 18 Article 47 of the Constitution. 1 of 1979 organizing industrial affairs Federal Law No. 8 of 2001 Federal Law No. the monetary system and organization of banking Subject Tariff Customs regulations.1. 17 Articles 46/6. and include the votes of Abu Dhabi and Dubai. which can delegate its authority to other ministries17.1 Main federal trade-related laws in the UAE Laws GCC Common External Customs Tariff GCC Common Customs Law of 1 January 2003 (Decision of the Supreme Council of the GCC regulating the customs procedures for the establishment of the customs union. the bills are signed by the President and published as laws in the Official Gazette16.
The UAE's main goal is to develop sound economic (including trade) policies to increase growth. As of 10 October 2005. an international customs agreement. The government is to continue to promote a progressive economic agenda. built around economic liberalization and diversification. Federal Law No 2 of 2010 amending provisions of Federal Law No. (2) of 2006 concerning the combating and information technology Federal Law no 8 of 2004 regarding Financial Free Zones Federal Law (13) of 2006 Of the amendment of certain provisions In Law (18) of 1981 Concerning the organization of commercial agencies Federal Law no 24 of 2006 concerning Consumer Protection Federal Law no 32 of 2006 regarding Copyright & Related Rights Federal Law no 31 of 2006 regarding Patents & Industrial Designs Federal Decree no 43 of 2006 regarding the UAE joining the New York Convention Federal Law 4 of 2007 setting up UAE Investment Authority Federal Law no 6 of 2007 concerning the Insurance Authority Federal Law No. 13. and SPS measures. In general. The UAE has also taken steps to align its trade-related legislation on the WTO Agreements. Securities regulation Legal services Information Technology Information Technology Financial Services Agency Law Consumer Law Copy Rights Patents Environment Investment Insurance Trade Concealment Law Labour Agency Law Commercial Companies Law Customs regulations. 18 of 1981 (Agency Law). (3) POLICY OBJECTIVES 14. (8) of 1984 (Companies Law) with the effect of abolishing minimum share capital requirements in respect of limited liability companies (LLCs) . competition policy. the UAE has harmonized its traderelated legislation with that of the other members (section (4)(ii)(a)). (788) of 2009 on Protection of Wages. and introduction of an industrial organization law/regulation in GCC countries. the UAE still needs improved and targeted WTO technical assistance in customs valuation. 13 of 2007 on Commodities that are Subject to Import and Export Control Procedures Anti-Fronting Law (Concealment Law) no 17 of 2004. TBT. 15 GCC resolutions had been adopted. 23 of 1991 concerning the practice of the advocate profession and amending laws. Cabinet approval for the UAE admission to the Convention on Temporary Admission (the Istanbul Convention). No. The Agreement requires the contracting parties to accept the ATA carnet.Trade Policy Review Page 16 Federal Law No. import and export procedures Customs regulations. investment in the UAE is regulated by Commercial Companies Law No. inter alia. . as well as establishing institutions to monitor this legislation. covering. 4 of 2000 (Stocks and Commodities Authority) Federal Law No. 5 of 2002 Federal Law no 1 of 2006 concerning Electronic Transactions & E-Commerce Federal Law no. and promotion of the role of the private sector. & UAE Cabinet resolution no 229 of 2007 Ministerial Decree No. Federal Law No. and create more employment opportunities for all its citizens. and by Commercial Agency Law No. 20 of 1987 1997 and No. this has been achieved to a large extent. 18 of 1981 and amending Law No. As a member of the Gulf Co-operation Council (GCC). Federal Decree No 33 of 2010 regarding the accession of the United Arab Emirates to the Revised Kyoto Convention in order to facilitate and coordinate the customs procedures. The policies are also aimed at attracting local and foreign investment to develop further the economy. According to the authorities. However. exemption of production inputs from tariffs. respectively. import and export procedures Source: Information provided by the UAE authorities. 8 of 1984. diversify the economy away from oil. Federal decree amending Article 227 of the UAE Commercial Companies Law. the extension of national treatment to all GCC nationals. 14 of 1988 (sections (4)(i) and (5) below).
ae Source: Khaleej Times 21 Source: http://emiratisation. discussions are under way in the UAE to re-examine the federation's commercial law. To this end. 16. The seven strategic priorities are the themes that define the priorities of the UAE Government over the coming three years. diversify the economy away from oil. and to extend foreigners the right to own and lease real estate. and consists of seven general principles. however. The UAE Government Strategy 2011-2013 lays the foundations to achieve the UAE Vision 2021. the second cycle of the UAE Government Strategy for the years 2011-2013 was announced in March 2010. and bilateral and regional trade agreements.The Emirates Competitiveness Council (ECC) was created to ensure UAE’s position as a global leader through: a) Creating a robust and innovation-based business environment b) Fostering a highly capable talent base of UAE nationals as well as attracting and retaining top global talent c) Realising the full potential of all the emirates d) Reaching higher levels of prosperity and quality of life in the UAE e) Strengthening the customer-centric orientation of government f) Building on sectors competencies and pioneering new. which limits foreigners to minority stakes in firms established outside of free zones. Each strategic priority and enabler includes general main directions and specific sub-directions . ECC aims to increase productivity .ecc. when the country will be celebrating the golden jubilee anniversary of the formation of the Union20. This will be archived via developing the competitiveness strategy for the UAE and proposing policies and initiatives to enhance competitiveness of all major sectors21. seven strategic priorities. The Emirates Competitiveness Council was established in 2009 . A nurturing and sustainable environment for quality living. the UAE already has quite a liberal trade regime.org 22 Source: Emirates Competitiveness Council : www. The government recognizes the importance of trade and investment to its overall goals. it seeks improved market access for its products through multilateral trade liberalization. A strong union bonded by a common destiny. In February 2010 the Cabinet has approved a historic National Charter that aims to transform the UAE into “ one of the best countries in the world by 2021” . the seven strategic enablers direct how the machinery of the Federal Government must operate in order to fulfil its strategic priorities19. The National Charter contains four important components: a) b) c) d) An ambitious and confident nation grounded in its heritage. It forms the basis upon which the federal entities develop their strategic and operational plans. Finally. The strategic priorities and enablers are not fully comprehensive but comprise the major focus areas for the government.ae .United Arab Emirates Page 17 15. Dubai is involved with most new 19 20 Source: Prime Minister Office: www. The Federal Government provides the broad framework for policymaking in the UAE.growth. A competitive economy driven by knowledgeable and innovative Emirati. Furthermore. 19. most key decisions are made at the emirate level. 17. The seven general principles steer the work of the UAE Government and apply across all strategic priorities and strategic enablers. innovation-based clusters22 18. The UAE federal Government launched its first strategy in 2007.which combined lead to the fulfilment of relevant main direction -and which the government will work to achieve during this strategy cycle. and seven strategic enablers.uaepm.
c) The UAE is committed to the highest standards of safety and security. notably in the petrochemicals subsector. Masdar is associated with the Masdar Institute of Science and Technology a joint programme with Massachusetts Institute of Technology25. Another significant development on the renewable energy landscaped materialize on June 20009 when the Preparatory Commission of the International Renewable Agency (IRENA) designated Abu Dhabi as the interim headquarters of IRENA26. Abu Dhabi. and is expected to accelerate its diversification process to compensate for its small and declining oil industry. thermal surfaces and their designs24 . September 2005.from research to commercial deployment – with the aim of creating scalable clean energy solutions. It will also promote plans to sell off a number of non-hydrocarbon industries. To achieve that it works with global partners and institutions to integrate new research with proven technologies to produce efficient systems and processes that can be replicated globally. Tapping into renewable energy become an economic prerequisite. intends to continue to invest heavily in the development of its large. reduce harmful emissions from sources of cooling water. Source:www. Masdar city is a multi-faceted company advancing the development. energy. Masdar consists of three business units and one investment arm: Masdar Carbon. In Spring 2008.wam. 23 24 The Economist Intelligence Unit. in April 2006 Masdar (the Abu Dhabi Future Energy Company) was established. The guide contains general rules on the application of green building standards on new government projects implemented by the Ministry of Public Works. The project contributes to energy consumption in all its forms. cooling systems. It integrates the full renewable and clean technology lifecycle . and continue efforts to privatize substantially the power and water subsectors in the near future. The UAE Government published the Policy of the United Arab Emirates on the Evaluation and Potential Development of Peaceful Nuclear Energy. especially carbon dioxide. which outlines the government's fundamental principles for its work in this area. The most important elements of green buildings to be taken into account in the implementation of new government projects by the Ministry of Public Works are competencies of building facades. water conservation.irena.In addition. the UAE government endorsed six principles that would govern its exploration of a potential civil nuclear power program: a) The UAE is committed to complete operational transparency. commercialisation and deployment of renewable energy solutions and clean technologies. financial. 22. as well as expanding its industrial base. which would increase the environmental safety and establish clear and certified standards for green buildings in the country. improving the quality of the internal environment of buildings. indoor environmental quality and surfaces. 21. upstream hydrocarbons resources and downstream industrial projects. media. b) The UAE is committed to pursuing the highest standards of non-proliferation. the clean technology cluster city. shipping.Trade Policy Review Page 18 initiatives. as well as contributing to maintain the country's environment in the long term so that new buildings can be able to withstand current environmental challenges and contribute to providing a sustainable urban environment-friendly environment. promoting public health. Diversification will include developing further the emirate's tourism. On July 2010 the Vice President and Prime Minister of UAE and Ruler of Dubai has approved "Green Buildings Project" in the UAE. Masdar Power and Masdar Venture Capital . water usage.org . Through the policy paper. meanwhile. and commercial services.23 20. Dubai has announced the launch of several new free zones.ae 25 Source: Masdar (the Abu Dhabi Future Energy Company) 26 Source:IRENA www.
e) The UAE will work in partnership with the governments and firms of responsible nations. in accordance with the criteria set by the International Atomic Energy Agency (IAEA) as a framework for the successful implementation of a peaceful nuclear energy sector. The UAE became an original Member of the WTO on 10 April 1996. (4) (i) TRADE AGREEMENTS WTO 24.2). 26. The UAE grants at least most-favoured-nation (MFN) treatment to all its trading partners. construction or operation of uranium enrichment or spent fuel reprocessing facilities within the borders of the UAE. These are important steps in achieving the UAE's aspiration of delivering the highest standards of safety within any future peaceful nuclear energy program. 23. either directly or as a third party. the UAE suggested the inclusion of a new sector (raw materials. which was published in April of 2008. In NAMA. including prohibiting the development. 6 of 2009 Regarding the Peaceful Uses of Nuclear Energy. International nuclear non-proliferation experts have described the fulfillment of this key non-proliferation commitment as an important factor in demonstrating the completely peaceful nature of the UAE's nuclear energy program. rules of origin. Equally worth note is the law's establishment of a safety regulator and the development of mechanisms to preserve its regulatory independence and fiscal sustainability. f) The UAE will approach any peaceful domestic nuclear power program in a manner that best ensures long-term sustainability. including non-ferrous metals.27 This sectoral initiative aims at reaching a balanced approach between tariff reductions trough a formula approach – which does not in many cases focus on areas of interest to developing countries – and the aim of increasing exports of raw materials that many developing countries consider an essential element of their economy. with primary aluminium as its strategic priority) into the proposed list to be covered by the sectoral tariff elimination approach. and further liberalization of trade in services. It benefited from transition periods (available to developing countries) to implement some of its commitments including under the Agreement on Customs Valuation. The UAE has fulfilled most of its notification requirements (Table II. The law represents a key component of the necessary legal infrastructure.1 and Add. Missing notifications are essentially in the areas of agriculture. President of the UAE issued Federal Law No. On 4 October 2009: His Highness Sheikh Khalifa bin Zayed Al Nahyan. The UAE notified the Secretariat on 5 July 2004 that it has enacted the necessary legislation and is now fully implementing the WTO Customs Valuation Agreement. 28 May 2004. import licensing. as well as with the assistance of appropriate expert organizations. and 21 April 2005 27 . It is playing an active role in the current round of multilateral trade negotiations. and state owned enterprise. 25.2 of respectively 20 May 2003. The UAE also submitted its initial offer in services. It has not been involved in any dispute under the Dispute Settlement Mechanism. except Israel. it had been a contracting party to the GATT since 8 March 1994. The UAE is neither a signatory nor an observer to any of the WTO's plurilateral agreements. 37Add. which is basically in line with the policy objectives set WTO document TN/MA/W/37. Its main interests in the Doha Development Agenda (DDA) include greater non-agricultural market access (NAMA). The UAE is a strong believer and advocate of the multilateral trading system.United Arab Emirates Page 19 d) The UAE will work directly with the IAEA and conform to its standards in evaluating and potentially establishing a peaceful nuclear energy program. The law also institutionalized other elements of the UAE's policy on the evaluation and potential development of a peaceful nuclear energy program.
5 Laws and Once. Emergency measures Agreement on Sanitary and Phytosanitary Measures Article 7.4 G/SCM/N/18/Add.2(b) Import licensing laws and regulations Once. subsidies and countervailing duties Agreement on Implementation of GATT Article VI (Anti-dumping) Article 18. 1 19 April 2000 G/ADP/N/14/Add.2 UAE's selected notifications to the WTO. UAE does not have any non-preferential ruling of general application relating to rules of origin. .6 Safeguards Once.3 Import licensing Articles 1. 4 July 2005. November 2010 WTO Agreement Description of Periodicity requirement Agreement on Agriculture Articles 10 and 18. then changes G/LIC/N/3/ARE/1 25 April 2000 G/LIC/N/1/ARE/1 18 April 1997 No import licence requirements No legislation on import licensing procedures Article 5 Agreement on Preshipment Inspection Article 5 Laws and regulations Agreement on Rules of Origin Article 5 Paragraph 4 Annex II Preferential rules of origin Once.11 Countervailing measures Semi-Annual G/SCM/N/38/ARE G/SCM/N/48/ARE G/SCM/N/60/ARE 18 April 2000 G/SCM/N/52/Add.1/Rev.1 Subsidies Annual Article 25. The UAE supports the strengthening of technical assistance programmes for developing and least developed countries.5 Competent authority Agreement on Import Licensing Procedures Article 7. new collective requests have been received from certain WTO Members and are under consideration.2 Export subsidies Annual Article16.2 Net-food import Domestic support Most recent notification G/AG/N/ARE/4 22 May 2002 G/AG/N/ARE/1 G/AG/N/ARE/5 22 May 2002 G/ADP/N/1/ARE/1 26 March 1997 G/ADP/N/53/Add. then changes regulations Article 16.4 25 April 1997 Comment No export subsidies in 2000-01 List of DS measures in 2000-01 No laws/regulations relevant to the agreement No AD actions taken since 31 December 1999 Anti-dumping.4 AD Semi-Annual Article 16. then changes Once.1 2 May 2000 No countervailing action during the period 1 January-30 June 1999 28 WTO document TN/S/O/ARE. XVII GATT No subsidies Agreement on Subsidies and Countervailing Measures Article 25. then changes State Trading Article XVII 4a GATT G/SPS/N/ARE/1 G/SPS/N/ARE/12 G/SG/N/1/ARE/1 27 March 1997 G/STR/N/1/ARE No legislation State trading No State Trading enterprises within the meaning of art.Trade Policy Review Page 20 by the Government and its reform process currently under way.2 Article 18.5 3 February 1997 No laws and regulations relevant to the Agreement G/RO/N17 10 April 1997 Article 5 Paragraph 4 Annex II Preferential rules of origin G/RO/N/13 19 November 1996 UAE does not have any non-preferential ruling of general application relating to rules of origin. Table II.1/Rev.4(a) and 8. then changes G/PSI/N/1/Add. Annex B Sanitary and Ad hoc phytosanitary Measures Agreement on Safeguards Article 12.28 Recently.
1 and 10.5.29 Behind its formation was a general perception by these countries of their vulnerability arising from their oil wealth.4/Add. GATT 1994 Article XVII:4(a) and Understanding on the Interpretation of Article XVII:1 Article VII . Oman. in recognition of the potential of such agreements to reinforce global trade liberalisation. 19 November 1998. III:3 General Agreement on Trade in Enquiry point Once. The GCC was created on 25 May 1981 by Bahrain. (a) Gulf Cooperation Council (GCC) 27. G/MA/NTM/QR/1/Add. .9 28 April 2009 Comment No countervailing duty action have been taken during the period 1 January-30 June 1998 No legislation Article 32.7 16 June 2000 IP/N/3/Rev.6 million square kilometres). 3 March 2004 G/TBT/GEN/N/109 Members instructed the Secretariat to prepare a monthly list of notifications.1 Annex III of Article VII State trading enterprises Customs valuation Customs valuation Once Annual 5 March 2010 G/STR/N/1/ARE 14 October 1996 WT/Let/72 G/VAL/N/4/ARE/1 15 September 2004 S/C/N/29 25 October 1996 S/ENQ/46 17 September 1997 TN/S/O/ARE 4 July 2005 G/MA/NTM/QR/1/Add. WTO-consistent FTAs with its trading partners.2 Copyright and neighbouring rights Once. procedures from 31 January quantitatve 1996 restrictions Agreement on Trade-Related Aspects of Intellectual Property Rights Article 69 Contact points Once.9. Kuwait. and the United Arab Emirates.3 Enquiry point [X ] 2.1/Rev.11 Description of requirement Countervailing duty action Periodicity Semi-annual Most recent notification G/SCM/N/40/Add. their small and dispersed populations (28 million). Saudi Arabia.3 12 September 2000 IP/N/1/ARE/C/1 3 March 2004 No STEs Extension of CV transition period for three years Full implementation of the Agreement No changes to existing laws and regulations The Ministry of Economy Initial offers on trade in services GATS General Agreement on Trade in Trade in services Services (GATS) Art. their vast surface area (2. and their limited military capabilities in a generally unstable region.2 Monthly list of notifications Once.United Arab Emirates Page 21 WTO Agreement ARTICLE 25.html. then changes QRs maintained Ministry of Economy Federal Law No. The main objectives of the GCC Agreement are regional cooperation and integration 29 See GCC online information. III:4 or changes IV:2 General Agreement on Trade in Initial Offer Services (GATS) Decision on Notification Procedures for Quantitative Restrictions Notification Every two years.org/index_e.gcc-sg. 7 of 2002 Source: WTO documents. then changes G/SCM/N/1/ARE/1 26 March 1997 Agreement on Technical Barriers to Trade Articles 10.6 Countervailing measures Once. Qatar. (ii) Regional agreements The UAE has adopted an open-minded approach in pursuing high-standards. then Services (GATS) Art. then changes Monthly G/TBT/ENQ/26.20. then changes Article 63. Available at: http://www.
Palestinian Authority. Pakistan. well the UAE said 'not yet' and I think they are right. Since January 2003. the public debt to GDP ratio. Under the treaty of the Greater Arab Free-Trade Area (GAFTA)33. in particular. transport. Morocco. and on national interest rates. Syrian Arab Republic. Therefore now we will not change anything for the time being until we see something solid really and profitable”31. 33 The GAFTA members are: the GCC members plus Algeria. and cultural affairs. China. finance.cnn. including fully harmonizing the list of products subject to rates higher than 5%. non-tariff barriers. In 1989. However. Sudan. 28. (b) Greater Arab Free-Trade Area (GAFTA) 30.com/2010/BUSINESS/06/22/sheikh. The principal entity responsible for implementing the programme is the Economic and Social Council of the League of Arab States (LAS). GCC states have been in the process of setting up a customs union: a common across-the-board tariff of 5% on most products has been in place since then. Lebanon. under the enabling clause. standards. and standards and technical regulations. ownership of real estate. with equal treatment of GCC citizens in each member country in respect of freedom of movement. including a cap on budget deficit relative to gross domestic product. on the issue of joining the Gulf Currency. the GCC member states set up a freetrade area. Its specific objectives are to achieve a common market. Nonetheless. Jordan. Tunisia. transit fees. and Yemen. the GCC and EC concluded a Cooperation Agreement under which their Foreign Ministers hold a Joint Council/Ministerial meeting once a year. Egypt. That agreement was notified to the GATT. Libyan Arab Jamahiriya. 29.dubai/index. whereby originating goods were exempt of customs tariffs. Korea.Trade Policy Review Page 22 in all economic. At a December 2005 summit in Abu Dhabi. work. Gulf Cooperation Council: The GCC Process & Achievement Source: CNN Exclusive Interview: http://edition. inflation rates. and in force since 1 January 1998. communications. Greater Arab Free Trade Area (GAFTA) was notified to WTO by Saudi Arabia in 2006. the Prime Minister of the UAE Sheikh Mohammed Bin Rashid Al Maktoum explained: “we said. Iraq. The treaty also provides for rules of origin (Chapter III (2)(iii)). and adequacy of foreign exchange reserves. including trade. industry. The GCC Common Market was launched in January 200830 after fulfilling most of its requirements and as a culmination of many previous steps taken in context of "economic citizenship" in the GCC . In 1983. India. In June 2010. as well as financial and monetary coordination including adoption of a common currency. However the common GCC currency has run into difficulties since the 2006 withdrawal of Oman and the UAE following suit in 2009. until we are sure. signed on 19 February 1997. all trade barriers among its members were eliminated without exception on 1 January 2005. GCC leaders endorsed five macroeconomic and budgetary convergence criteria for monetary union by 2010. investment. The objective of this agreement is to facilitate trade relations. The GCC is currently engaged in negotiating FTAs with a number of other countries and economic blocks.32 In December 2008 the GCC signed its first Free Trade Area Agreement with Singapore followed in June 2009 by the GCC – EFTA states FTA. The withdrawal of two major economic powerhouses. and to contribute to strengthening stability in a strategic part of the world.mohammed. 31 30 .html?fbid=3O10dRrTGvW 32 European Commission (2003). movement of capital. Japan. Somalia. in addition to the difficulties in meeting the five macroeconomic and budgetary convergence criteria will further delay the instigation of the monetary union scheduled for year 2010. and certificates of origin are reported. on 11 October 1984. and the common GCC Common Customs law of 2003 provides for common origin rules for all the members (Chapter III(2)(iii)). social. New Zealand. lengthy bureaucratic and administrative procedures at the borders. These include Australia. and energy. practical details of certain trade issues have yet to be addressed. residence. Turkey and the Mercosur.
the percentage of Intra-Arab imports as part of total Arab imports was 11. In March 2004.050 Billion. Jordan (17 March 2001). The United States began negotiating a Free Trade Agreement with the UAE in March 2005.5% increase in exports reaching approximately $1. and greater transparency in government and commercial regulations. while the weight of Arab imports as a percentage of global imports also increased to 4. This is primarily attributed to the steady increase in oil prices during the first 7 months of the year 2008.United Arab Emirates Page 23 31. projects and activities mutually agreed and spelt out in supplementary agreements specific to each joint programme. which will facilitate the joint implementation of programmes. and Iraq (2 April 2002). The UAE has signed bilateral trade agreements with Syria (signed on 12 November 2000). The United Arab Emirates exports to Arab States (FOB value). The Greater Arab Free Trade Area (GAFTA) has contributed towards increasing intra-Arab trade as a percentage of total Arab – Global trade.Moreover. this process will be used to advance trade liberalization in as many areas as possible .4 billion in 2008. Morocco (17 March 2002).int 36 Source: US Department of States: http://www. project or activity35.building where appropriate on progress made during the FTA negotiations36.5 billion in 2004.9% the previous year.9 billion in 2008. to roughly $14.2% increase reaching approximately $702 Billion. Moreover. the Gulf Cooperation Council (GCC) signed a Memorandum Of Understanding (MOU) with COMESA. 34. The overall value of Arab trade in 2008 registered a 32. which was 4-5% in the 90s. The decrease in the importance of Intra-Arab exports in relation to total exports is attributed to the fact that the percentage of increase in the value of total exports has surpassed the percentage of increase in intra-Arab exports. in comparison with 12.1% during the previous year. In the mean time.3%. improvements in intellectual property right protection. The weight of Arab exports as a percentage of global exports also increased to constitute 6. According to the authorities. overall Arab imports registered a 32. The United States and the UAE have since initiated a "TIFA Plus" consultative process under the existing bilateral Trade and Investment Framework Agreement (TIFA). coming in second place after Saudi Arabia’s $38. more transparent and efficient customs procedures. Joint Arab Economic Report. The same thing occurred with regards to the Intra-Arab imports that also registered a decrease in relation to total exports. in comparison with 8.htm 34 . The percentage of Intra-Arab exports as part of total Arab exports was 8.6 billion in 1999. (iii) Bilateral agreements 33. with the Petroleum products are not covered by the GAFTA Treaty. the United Arab Emirates signed a Trade and Investment Framework Agreement (TIFA) with the United States to provide a formal framework for dialogue on economic reform and trade liberalization. Lebanon (2 March 2002). In early 2007.1% in 2008.3% in 2008. TIFAs promote the establishment of legal protection for investors.state. 35 Source: www. including petroleum products grew by threefold in five years from $1. On April 2010 in Riyadh.gov/e/eeb/rls/othr/ics/2010/138163.8 billion in 2004. to $3. UAE imports from Arab States increased from $1.9 billion in 1999 to approximately $6. the United States and the UAE announced that despite considerable progress in a number of areas under negotiation. The increase came to satisfy the needs of economic activity in light of the continued growth in most Arab States. and rose further to $7.6 billion in exports to Arab states. Arab Monetary Fund. The MOU will provide a framework of co-operation between the parties.7%. they would not be able to complete FTA negotiations under the existing time frame for trade promotion authority. Trade agreements are under consideration with Australia.34 (c) The Common Market for Eastern and Southern Africa (COMESA) 32.comesa.
and it neither provides nor receives trade preferences under the Generalized System of Preferences (GSP). acquisition of land for commercial or private purposes in Dubai is restricted to UAE citizens and. The Outside of free zones. In June 2006.42. For example. Federal Act No. 3 of 2006 Dubai has designated areas where expatriates can enjoy freehold ownership in Dubai. (5) INVESTMENT FRAMEWORK 37. However under Order no. and [ 12] new zones are under consideration and implementation. 38. The list includes 23 areas and 45 plots including Jebel Ali. More than 15. Foreign companies or non-national individuals may own 100% of projects located in the free zones (Chapter III(3)). Emirate Hills and Al Barsha. Bahrain . Licensing procedures are publicly available and transparent but vary from emirate to emirate. 29 June 2010. all future bilateral agreements will be negotiated at the GCC level.Trade Policy Review Page 24 exception of the ongoing bilateral negotiations with the United States. the World Islands.000 expatriates have already moved in. The UAE joined the Information Technology Agreement (ITA) in the WTO. [26 ] free zones exist. Currently. Dubai Marina. In Dubai. each emirate’s natural resources and wealth are publically owned by the said emirate. the matter is generally left to the discretion of each emirate. While the UAE's economic environment is generally liberal and business-friendly. there are three categories of licences: industrial licences for industrial activities. 36. investment licences can be obtained only by domestic companies that are majority-owned by UAE nationals. professional licences covering all services and artisans. the Palm Island projects. which must appoint a local services agent or "sponsor" (Chapter III(2)(i))39. Free zones have been continuously expanded to accommodate economic demand and to implement innovative ideas. 38 37 . 14 of 1988. In 2007 the Emirate of Dubai introduced Law 8 2007 an Escrow Law Account . The UAE does not participate in the Global System of Trade Preferences (GSTP) among developing countries. According to the UAE constitution. as amended by Law No. 18 of 1981. Procedures apply differently to local and foreign companies only when the firm is a branch of a foreign company and is founded in the UAE but is foreign-invested. to a certain extent. Source: WTO Documents G/IT/1/Rev. The UAE's investment policy is implemented through licences. or by 100% foreign-owned branches. The law aims to offers reassurance and guarantee to home buyers and investors and to boost confidence in the real estate market. In addition the emirate of Dubai has recently undertaken several legislative measures that further regulate land registration and allocation of properties that can be owned by nonUAE nationals. except in the free zones where 100 per cent foreign ownership is allowed. its investment policy continues to limit foreign investment and competition between local and foreign investors. At the federal level there is no consolidated legislation governing the acquisition of real estate by foreigners. not by individual members. (iv) Other preferential arrangements 35. the basic requirement for all business.Oman and Saudi Arabia are members in the ITA and the rest of the GCC are in the process of joining this agreement37. 38 This policy has been successful in maintaining a balance of preserving business opportunities for UAE citizens while welcoming foreign dynamism and promoting dynamism is specific areas. 39 Trade Agencies Law. While certain general provisions of UAE law refer to property rights. and commercial licences covering all kinds of trading activities. and must be utilised and preserved for the sake of the national economy. GCC citizens.
which stipulates that the owner of a property is not permitted to sell it to non-GCC citizens. and water desalination.fujairahmunc.CCL) regulates the establishment of companies. who can therefore own 100% of a company's capital.000 as a minimum to create such companies. foreign companies may also exercise their main activity in the UAE by opening a branch or a representative office43. 8 of 1984 (the Commercial Companies Law . since 2005.gov. All companies must have one or more national partners who account for at least 51% of their capital. a law on land ownership was adopted in 2005. which specified Dh 150. A foreign branch or office can be 100% owned by the foreign company. both local and foreign. The foreign branch may exercise only the activities for which it is licensed by each emirate. 41 40 . There are 2. accounting. If approved by the MOE the application goes to the economic department of each emirate in which the business is to be undertaken. the Ra's al-Khaimah Municipality. companies are defined as any "economic project". the emirate of Sharjah adopted a resolution (in 2005). the company must apply to the MOE for this licence.ae.dm. and the Umm al-qaiwain Municipality. 40. 41. The Law also stipulates that management of the company may be undertaken by the foreign partner. and operate in construction.United Arab Emirates Page 25 39. 19 of 2005. and air transport services. to use. In contrary to the previous law.6 million square metres of land for the development of a wide portfolio of residential and industrial projects. 44 These are the Abu Dhabi Municipality (online information available at: http://www. 42 Source: www. Foreigners have also been given the right. the Sharjah Municipality. the restriction no longer applies to GCC nationals. under the new law. and specifies the terms of the surface lease contracts on real estate outside investment areas. For example. The law also allows GCC citizens to own real estate located in investment areas. the Fujairah Municipality (online information available at: http://www. it is not licensed to conduct business operations or marketing directly in any manner. Under the CCL.40 The law stipulates that real estate granted by the Government to a citizen before or after issuance of the law. excluding companies operating in the hydrocarbon industry. exploit.adm. Under the CCL.uaeinteract. petroleum.gov. and facilitate contacts between the company and its UAE clients. The government of Ras Al-Khaimah set its own public joint stock company RAK Properties PJSC and granted 4. Federal Company Law No. According to the authorities.256 registered foreign companies at the Federal Ministry of Economy (MoE) functioning through 2700 branches in the UAE . to lease real estate in investment areas located in Abu Dhabi for a limited duration.gov.com 43 The representative office may promote business for the products and services provided by the parent company. tourism. courier. the citizen has the right to register such ownership and is entitled.). within the limits of the law. and in electricity. outside the free zones.44 Once licensed by the economic department of the emirate. the Dubai Municipality (online information available at: http://www. 42. Under the amended law. The amended law has been applied retrospectively to companies established on or after 1 June 200942. and dispose of such property. Other emirates have their own regulations and decisions governing land/property ownership. gas. In 2009 the President of the United Arab Emirates introduced an amendment to the companies law. is his or her own property. the amendment to the capital requirements.ae). In Abu Dhabi. the Ajman Municipality.ae). prospective business partners seeking to establish a limited liability company will have the freedom to determine the capital requirements of their new company and there will be no minimum par value for the company’s shares. Ras Al-Khaimah was the first government after Dubai to offer freehold property ownership rights allowing expatriates to purchase in selected developments of the Emirate. such sales may only be possible after approval by the ruler of the emirate and under specific conditions.41 The partners may agree to share the profits in proportions that differ from their capital share. insurance. Law No. However.
legal consultants. 44. a new amendment to the agency law was introduced in 2010. agency contracts may or may not be time limited In addition. The agent's services consist mainly in maintaining contacts with the governmental authorities. the UAE made important changes to the Commercial Agencies Law (Agencies Law). and had restricted the number of agents a foreign principal could appoint as well as the terms of the agency relationship46. and authorizations. Agents are not responsible for any of the financial obligations or activities of the company's branch or representative office within the UAE or abroad. even if the term of the agreement has been initially limited. As noted above. the contract cannot be defended in the court under the Trade Agencies.ustr. which handled agency disputes. Foreigners may form sole proprietorships45 to practice certain activities in some emirates in some professional services such as. once an agency agreement registered. In 2006. Federal Law No. and obtaining the relevant licences. which were added to Federal Law No. Damages :Allowed either party to file for damages. 18 of 1981. with no capital share and management power (see Chapters III(2)(i) and IV). regarding the regulation of commercial agencies. According to the Law. 45. A foreign sole proprietor is also required to appoint a local services agent. Before changes to the agency law were introduced in 2006. a commercial agency may only be deregistered by mutual agreement or pursuant to a court order. which previously had required that all commercial agents be either UAE nationals or companies wholly owned by UAE nationals. e) Agent Consent: Allowed the import of “liberalized goods” without the agent's approval. either party (not only the agent) may request compensation for a prejudice caused by the termination of the agency contract. Agency Disputes: Eliminated the Ministry of Economy’s Trade Agencies Committee. computer consultants. A condition for opening a representative office or branch of a foreign company in the UAE is to appoint a local service agent or "sponsor". such that. in this case. and non-trading activities. 43. which was issued by the president of the United Arab Emirates His Highness Sheikh Khalifa bin Zayed Al Nahyan. The agent's remuneration depends on the contract.gov/sites/default/files/uploads/reports/2010/NTE/2010_NTE_UAE_final. a foreign company may appoint an agent that is not registered in the MOE. it is not permissible Sole proprietorship is a simple business method whereby an individual trades on his own account pursuant to a trade licence issued in his own name. These amendments are aimed at balancing out the relationship between the parties to an agency contract and at improving transparency in the dispute resolution process through the referral of disputes to the courts.pdf 45 . 2 of 2010 has gone into effect with amending some provisions of Federal Law No. Once more. Pursuant to amendments introduced by Law No. and considering Articles 27 and 28. 13 of 2006 to the Commercial Agency Law. 18 of 1981. 46 Source: United States Trade Representative Office : www. it could not be terminated without the agent's approval (except after a decision by the Commercial Agencies Committee of the MOE). approvals. engineering consultancies. termination can only occur by bringing the matter before the court and the court’s ordering deregistration. Furthermore.Trade Policy Review Page 26 the company licence is registered by the MOE. or either party to a non fixed-contract wishes to terminate the contract.48 medical services. Federal Law (13) of 2006 Of the amendment of certain provisions In Law (18) of 1981 Concerning the organization of commercial agencies revised the following aspects of the law : a) b) c) d) Agency Time Frame: limited an agency contract to a fixed time period Renewal of Contract: Required mutual consent to renew an agency agreement. where the parties to a fixedterm contract wish to terminate the contract summarily. This form of business entity is referred to as an "establishment" rather than a company.
services incidental to fishing. It is owned and controlled by the respective emirates. gas. every other ruling contrary to or inconsistent with its provisions is cancelled. or if there were substantial grounds to justify the termination of the agency . which must start looking into it within 60 days from the date of application for dispute review. and water utilities are supplied by state monopolies.that are found convincing by the Commission. There are no restrictions on investment abroad by UAE nationals. Projects involving foreign participation in these subsectors are generally majority state controlled and owned by the State or by UAE nationals. and foreign participation must take the form of joint-ventures (Chapter IV(3)(ii)). and specify dispute review fees. compensate its members. The draft law will not apply to free trade zones but will concern all foreign investments in the UAE except those projects in the oil. 47 The Constitution states that all natural resources are the property of each emirate and that they should be preserved and effectively used for the good of the national economy. or from the date of the completion of the required documents.United Arab Emirates Page 27 for a client to terminate an agency contract or fail to renew it. and its decisions may be challenged at the relevant court within 30 days of the date of the notification of the Committee’s decision. and passenger and freight road transport. rental/leasing services relating to cars.or not renewing it . services incidental to agriculture. 46. The Committee would then use that which it deems appropriate to perform its functions. The UAE has signed various bilateral trade and investment framework agreements (Table II. unless there is a fundamental reason that would justify its termination or non-renewal. Article 27. it is not permissible to register an Agency in the Registry of Commercial Agents to another Agent even if the previous Agency was confined to a fixed term contract.3). protect and promote foreign investments and accord fair and equitable as well as national treatment to foreigners albeit with a few exceptions and finally open up sectors / subsectors for foreign investors with 100% ownership. It will regulate foreign investors’ rights. Article 28 states that the Committee shall consider any dispute which may arise relating to an Agency that is registered with the Ministry. including veterinary medicine stores. after which the decision would be final and cannot be appealed. or if there was a judicial verdict for its cancellation. gas. 49. . investigation and security services. and forestry. electricity. hunting. Certain activities are reserved for UAE nationals and for companies totally owned by UAE nationals: real estate services. as long as the application is complete. Additionally. which was introduced in the law that was published in the Official Gazette. The UAE's hydrocarbon industry is specifically excluded from the provisions of the CCL. placement services. The Foreign Investment Law will serve as a onestop-shop law reflecting government policies towards foreign investments. It also states that the parties of the dispute may not go to court over their dispute before first presenting it to the Committee. The UAE is a member of the Multilateral Investment Guarantee Agency. Under the law.47 Similarly. The Abu Dhabi government and Abu Dhabi Water and Electricity Authority (ADWEA) have embarked upon a long-term programme for the privatisation of the water and electricity sector. The Ministry of Economy the UAE is currently drafting a Foreign Investment Law whose aim will be to create favourable conditions for foreign investments and bring in transfer of knowledge and expertise that are not the UAE’s core competencies. 48. unless it was cancelled through mutual consent between the agent and the client. although the Emirate of Abu Dhabi has announced the partial privatization of several electricity and water plants (Chapter IV(3)(iii)). water and electricity sectors. 47. stipulates the establishment of a committee to be called the “Commercial Agencies Committee” which would be formed through a Ministerial Council decision that would also organize its meetings. and the law shall be applied on the following day of its publication in the Official Gazette. Some of the above mentioned activities can be practiced by GCC nationals.
1 Bilateral investment treaties Country Algeria Austria Belarus Belgium and Luxembourg China Czech Republic Egypt Finland France Germany Italy Korea Lebanon Malaysia Mongolia Morocco Mozambique Pakistan Poland Romania Sudan Sweden Switzerland Syria Tajikistan Tunisia Turkey Turkmenistan Ukraine UK Yemen Uzbekistan Vietnam Jordan Azerbaijan Armenia Slovakia Russia .Trade Policy Review Page 28 Table II. ..3. Not available. 17/7/2009 28/6/2010 Final signature 24/4/2001 17/6/2001 27/3/2000 8/3/2004 1/7/1993 23/11/1994 11/5/1997 12/3/1996 9/9/1991 21/6/1997 22/1/1995 9/6/2002 17/5/1998 11/10/1991 21/2/2001 9/2/1999 24/9/2003 5/11/1995 31/1/1993 11/4/1993 18/2/2001 10/11/1993 3/11/1998 26/11/1997 17/12/1995 15/4/1996 28/9/2005 9/6/1998 21/1/2003 8/12/1992 13/2/2001 26/10/2007 16/2/2009 15/4/2009 20/11/2006 Cabinet decision (319/8) 2001 (422/5)2001 (299/8) 2000 (527/9)1996 (260/6) 1993 (12/12) 1995 (110/6) 1997 (223/9) 1996 (80/5) 1992 (193/14) 1997 (84/6) 1995 (472/6)2003 (307/15) 1998 (561/4) 1991 (492/5) 2001 (118/9) 1999 (489/6) 2003 (69/13) 1996 (104) 1993 (61/12) 1995 (345/8) 2001 (583/22) 1999 (13/13) 1999 (541/9) 1998 (433/7) 1999 (259/12) 1996 (584/5) 2005 (420/27) 1999 .. (8/8) 1993 (270/8) 2001 (8/8) 2008 (318/9) 2009 (333/8) 2009 (333/4) 2006 (75) 2001 (33) 2008 (78) 2009 (118) 2009 (40) 2007 25/8/2001 22/4/2008 11/10/2009 16/12/2009 30/4/2007 (31) 1999 (15) 2000 (24) 1997 (11) 2006 (109) 1999 (12) 2004 16/2/1999 29/1/2000 24/2/1997 7/3/2006 24/11/1999 28/2/2004 Federal decree (27) 2002 (26) 2001 (1) 2001 (11)2005 (36) 1994 (84) 1997 (34) 1998 (22) 1997 (35) 1992 (35) 1998 (62) 1995 (24) 2004 (105) 1998 (24) 1992 (71) 2002 (89) 1999 (28) 2003 (37) 1996 (6) 1993 (3) 1996 (4) 2002 (32) 2000 Execution 3/6/2002 3/6/2002 2/1/2001 29/1/2005 12/4/1994 26/6/1997 2/3/1998 24/2/1997 27/4/1992 2/3/1998 20/11/1995 27/4/2004 25/10/1998 25/3/1992 19/11/2002 26/9/1999 2003 17/6/1996 29/1/1993 9/1/1996 5/2/2002 21/3/2000 Source: Ministry of Finance.
3.2 Avoidance of Double Taxation Agreements No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 Country Egypt Algeria Yemen Tunisia Morocco Sudan Syria Lebanon Mozambique Pakistan India India (Protocol) Srilanka Philippine Korea Singapore Indonesia Thailand Malaysia China New Zealand Ukrania Belarus Romania Turkmenistan Armenia Tajikistan Magnolia Austria Poland Germany Finland Italy Czech France Belgium Luxembourg Turkey Canada Mauritius Seychells Bosnia and Herzegovina Azerbaijan Spain Malta Holand Bulgaria Uzbekistan Kazakhstan Vietnam Greece Germany Ireland Final Sign 12/4/1994 24/4/2001 13/2/2001 10/4/1996 9/2/1999 15/3/2001 26/1/2000 17/5/1998 24/9/2003 7/2/1993 29/4/1992 27/3/2007 7/7/1992 22/9/2003 22/9/2003 1/12/1995 30/11/1995 1/3/2000 28/11/1995 1/7/1993 24/9/2003 2003 27/2/2000 11/4/1993 9/6/1998 22/4/2002 17/12/1995 21/2/2001 23/9/2003 31/1/1993 9/4/1995 12/3/1996 22/1/1995 30/9/1996 19/7/1989 30/9/1996 20/11/2005 29/1/1993 9/6/2002 18/9/2006 19/9/2006 18/9/2006 20/11/2006 5/3/2006 13/3/2006 8/5/2007 26/6/2007 26/10/2007 22/12/2008 16/2/2009 18/1/2010 01/07/2010 01/07/2010 Cabinel Decision (214/7)1994 (320/9) 2001 (159/6)2001 (260/13) 1996 (119/10) 1999 (346/9) 2001 (104/7) 2000 (308/16) 1998 (489/6) 2003 (58/12) 1993 (245/8) 1992 (105/7) 2007 (488/5) 2003 (548/8) 2003 (520/12) 2003 (13/13) 1996 (15/15) 1996 (206/11) 2000 (14/14) 1996 (560/5) 1993 (519/11) 2003 (119/10) 2003 (300/9) 2000 (62/13) 1995 (406/13) 1999 (549/9) 2003 (434/8) 1999 (493/6) 2001 (521/13) 2003 (103/5) 1993 (206/10) 1995 (244/10) 1996 (83/5) 1995 (526/8) 1996 (453/7) 1989 (527/9) 1996 (658/7)2005 (58/12) 1993 (587/10) 2002 (319/9) 2006 (297/6) 2006 (331/2) 2006 (332/3) 2006 (100/6) 2006 (99/5) 2006 (138/6) 2007 (211/11) 2007 (64/8) 2008 (255/15) 2009 (319/10) 2009 (42/3/15) 2010 Federal Decree (13) 1995 (84) 2001 (73) 2001 (25) 1997 (90) 1999 (83) 2001 (72) 2000 (106) 1998 (28) 2004 (3) 1994 (39) 1993 (80) 2007 (27) 2004 (73) 2004 (30) 2004 (34) 1996 (36) 1996 (105) 2000 (35) 1996 (38) 1994 (29) 2004 (11) 2004 (2) 2001 (3) 1996 (108) 1999 (74) 2004 (16) 2000 (70) 2002 (26) 2004 (7) 1994 (21) 1996 (23) 1997 (62) 1995 (84) 1997 (83) 1989 (83) 1997 (31) 2006 (5) 1994 (3) 2004 (51) 2007 (8) 2007 (39) 2007 (42) 2007 (54) 2006 (53) 2006 (102) 2007 (5) 2008 (70) 2008 (47) 2009 (77) 2009 Execution 26/3/1995 28/11/2001 25/8/2001 24/2/1997 26/9/1999 28/11/2001 11/6/2000 25/10/1998 4/5/2004 29/1/1994 21/8/1993 4/9/2007 4/5/2004 29/12/2004 4/5/2004 17/6/1996 17/6/1996 12/11/2000 17/6/1996 5/6/1994 4/5/2004 28/2/2004 2/1/2001 9/1/1996 24/11/1999 29/12/2004 29/1/2000 29/11/2002 27/4/2004 29/1/2004 18/3/1996 24/2/1997 20/11/1995 26/6/1997 15/11/1989 26/6/1997 7/5/2006 29/1/1994 7/1/2004 20/6/2007 6/2/2007 30/4/2007 30/4/2007 13/8/2006 13/8/2006 29/11/2007 22/1/2008 28/9/2008 30/6/2009 11/10/2009 Source: Ministry of Finance. .United Arab Emirates Page 29 Table II.
construction company). Its MFN tariff is based on the GCC's Common External Tariff. and has backed up commitments to strengthen and enforce intellectual property rights with the establishment of a new Intellectual Property Office at the MOE. can clear imports only on behalf of the licensed importers.Trade Policy Review Page 30 III.1% in 2005. 3. with provisions varying from contract to contract. The UAE has passed a number of laws relating to intellectual property. (2) (i) MEASURES DIRECTLY AFFECTING IMPORTS Registration. Few technical regulations are implemented at the border. and exclusive distribution rights 6. The UAE's position as the main commercial hub of the Middle-East is due in great part to its relatively liberal trade regime. some of them are their own regulatory bodies. The main characteristic of the UAE's export policy is extensive reliance on free zones. Clearing agents.g. and only those products mentioned on the licence. Federal procurement appears to be conducted competitively. appears to be relatively opaque. procurement by the other public bodies. The UAE has taken no anti-dumping. with the majority of rates at 5%. reflecting the authorities' policy to facilitate trade. including state-owned enterprises and municipalities. all entities carrying out trade must be in possession of a trading licence. particularly with respect to the import and export of goods. Nonetheless. The exclusive "agency law" – the UAE has no competition legislation – contributes to the segmentation of the domestic market and to the high prices of branded products. and can be tendered electronically. particularly to realize major projects for which local expertise is not available. agency. countervailing or safeguard actions. which in the case of several emirates includes a large re-export industry. State ownership in the economy remains extensive. The licensee is responsible before the court for any liability resulting from consumption of the product in the UAE. 5. who must be GCC nationals. from which 80% of non-oil exports originate. In particular. several state-owned companies successfully compete worldwide. 4. for example where products are found to be faulty or dangerous. it specifies the products that may be imported. at ceiling rates (in general) averaging 15%. . 2. Customs procedures are simple and largely computerized. they are generally based on internationally accepted standards. and other domestic regulations that otherwise apply to the UAE customs territory. it also constitutes a barrier to full GCC integration. its rates averaged 5. importer. An importer obtains this licence from the economic department of the emirate in which business is to take place. licensing procedures and regulations vary from emirate to emirate. (1) TRADE POLICIES AND PRACTICES BY MEASURE INTRODUCTION 1. national ownership. The trading licence is valid only for the emirate in which it is issued. A prerequisite for doing business in the UAE is having the appropriate licences (Chapter II(5)). There is strong reliance on foreign companies. "emiratization". as well as the activity of the licensee (e. The government has recently introduced changes to the agency law to help ensure fair treatment of parties and to promote a competitive environment in the UAE ([reference discussion in section above]). . The entire UAE tariff is bound. These free zones are exempt from all the licensing.
(Table III.CCL). and home appliances Building materials and equipment Agents & flying equipments Textiles. Under the Trade Agencies Law. shops and home materials. Before changes to the agency law were introduced in 2006.United Arab Emirates Page 31 7. 3 U. products. agricultural items. The agency agreement/contract specifies the agent. it could not be terminated without the agent's approval Federal Company Law No. According to the authorities. tobacco. Trade Agencies Law. gifts. 14 of 1988. 8 of 1984 (the Commercial Companies Law . advertising and printing equipment agents Packing.000 (US$1.1 However.000 (US$545). and educational games and toys Sport equipment and children toys Others Newspapers. 2 1 . and veterinary products Consultancies Shipping equipment Audio-visual.3 8. equipment. fishery.S. whereby the trading licence is held by exclusive commercial "agents".1). accessories. water desalination. antiquities. and appliances Animal. a large percentage of imports take place under the Trade Agencies Law. scientific. In order to benefit from exclusive import and distribution rights. tools and repair equipment Cosmetics. and wholesale and retail distribution services.1 Commercial agencies by type of activity 2007 Activity Engineering. An agent must be a UAE national. Information provided by Annual Trade Agencies Statistics 2007 . as amended by Law No. and jewellery Oil-production equipment Petrochemical. 18 of 1981. display or rendering of a commodity or service in the UAE. once an agency agreement registered. in its own name. clothes. as well as the sale. electrical. safety and security equipment Vehicles. perfumes. the agency agreement must be registered with the Ministry of Economy (MOE). or a company owned by UAE nationals. Table III. furnishing and equipment for offices. The registration costs Dh 5. and drainage equipment Pharmaceutical and medical equipment Fire extinguishing. including services Total number of agencies by activity Number of registered agencies 1451 529 397 364 310 212 181 181 154 136 106 62 79 53 65 52 56 16 13 14 8 6 4445 Source: Ministry of Economy. Federal Act No. it is difficult to distribute imported products without a local agent. the area of coverage (one or several emirates). laboratory instruments. and the brand and models of the product that can be imported and sold exclusively by the agent. importing activities. 9940 agencies were registered at the end of 2007. heavy and light equipment. the principal (owner of the trade mark or manufacturer of the brand).360). 9. and leather products Foodstuff Furniture. and stowing.2 According to business sources. Department of State (2005). Information on the share of total imports carried out by exclusive agents is not available. and photographic devices Office materials and equipment. mechanical. are reserved for exclusive "agents". must purchase products or services from foreign companies according to independent sale agreements and then resell to its clients as per other agreements. Under the Commercial Companies Law. metallic products and oil and gas exploration equipment Electronics. the trading licence can be obtained by either majority-owned UAE companies or by 100% foreign-owned branches of foreign companies. systems. pesticides. and is renewable annually against Dh 2. electrical.
pursuant to which goods specified by the Cabinet as liberalized goods may enter the market even without the agent’s approval. coffee.Trade Policy Review Page 32 (except after a decision by the Commercial Agencies Committee of the MOE). pasta (macaroni. inter alia. 13 of 2006 to the Commercial Agency Law. 18 of 1981. and diapers (Cabinet Decision N° 538/1). in this case. . even if the term of the agreement has been initially limited. and the law shall be applied on the following day of its publication in the Official Gazette. The Committee would then use that which it deems appropriate to perform its functions. Furthermore. where the parties to a fixed-term contract wish to terminate the contract summarily. such that. which was issued by the president of the United Arab Emirates His Highness Sheikh Khalifa bin Zayed Al Nahyan. fish products. In general. either party (not only the agent) may request compensation for a prejudice caused by the termination of the agency contract. it is not permissible to register an Agency in the Registry of Commercial Agents to another Agent even if the previous Agency was confined to a fixed term contract. the MOE exempted a list of basic food items from the coverage of the Trade Agencies Law. tea. As noted above. cheese. the agent is entitled to prevent the products from being imported by others into the specified territory. unless it was cancelled through mutual consent between the agent and the client. or if there was a judicial verdict for its cancellation. every other ruling contrary to or inconsistent with its provisions is cancelled. and its decisions may be challenged at the relevant court within 30 days of the date of the notification of the Committee’s decision. compensate its members. or if there were substantial grounds to justify the termination of the agency . In October 2005. the advantage for the foreign company of having an exclusive agent is a network of contacts. and specify dispute review fees. or either party to a non fixed-contract wishes to terminate the contract. Additionally. Pursuant to amendments introduced by Law No. However. flour. cooking oil. children's foodstuff and milk . It also states that the parties of the dispute may not go to court over their dispute before first presenting it to the Committee. which were added to Federal Law No. a commercial agency may only be deregistered by mutual agreement or pursuant to a court order. the contract cannot be defended in the court under the Trade Agencies 10. Under the law. regarding the regulation of commercial agencies. rice. meat and meat products. sugar. stipulates the establishment of a committee to be called the “Commercial Agencies Committee” which would be formed through a Ministerial Council decision that would also organize its meetings. 11.or not renewing it . a foreign company may appoint an agent that is not registered in the MOE. 2 of 2010 has gone into effect with amending some provisions of Federal Law No. contribute to exceptionally high retail margins on imported branded products.4 The efforts of the UAE Governments’ to ensure price stability is further exemplify by an amendment by Law No. New amendment to the agency was again introduced in 2010. frozen and canned vegetables. vermicelli). 18 of 1981. which may. chickens.that are found convincing by the Commission. after which the decision would be final and cannot be appealed. as long as the application is complete. which must start looking into it within 60 days from the date of application for dispute review. which was introduced in the law that was published in the Official Gazette. 4 Dry and condensed milk. and the availability of outlets to distribute the product. These amendments are aimed at balancing out the relationship between the parties to an agency contract and at improving transparency in the dispute resolution process through the referral of disputes to the courts. Article 28 states that the Committee shall consider any dispute which may arise relating to an Agency that is registered with the Ministry. According to the Law. connection with someone with a good knowledge of local customs and markets. Article 27. following price increases. agency contracts may or may not be time limited In addition. 13 of 2006 to the Commercial Agency Law. termination can only occur by bringing the matter before the court and the court’s ordering deregistration. or from the date of the completion of the required documents. it is not permissible for a client to terminate an agency contract or fail to renew it. and considering Articles 27 and 28. Federal Law No. unless there is a fundamental reason that would justify its termination or non-renewal.
United Arab Emirates Page 33
12. The system of exclusive distribution rights precludes the application of the principle of free movement of goods and services within the GCC customs union, of which the UAE is a member. For example, a product cannot be re-exported to Dubai from Qatar if a UAE agent (not involved in this operation) already holds exclusive agency rights for that product in Dubai. The GCC Customs Law states that: "The prerequisite of obtaining an import license for importing any commodity into any of the GCC States shall be abolished because it goes into conflict with the requirements of the formation of the GCC customs union and the principle of the single point of entry." The Trade Agency Law does not apply to free zones (section (3)(v) below). (ii) Customs procedures
13. Since the establishment of the GCC customs union on 1 January 2003, the UAE has been applying the GCC Common Customs Law, and its Rules of Implementation and Explanatory Notes.5 Under the "single port of entry" principle, items imported in the UAE (or any other GCC State), and destined for another GCC market, are subject to customs duty only at the first point of entry into the GCC. Customs procedures and the required documentation are the same for all GCC members.6 14. Each emirate has its own Customs authority but customs procedures are the same throughout the UAE, and customs requirements are kept to a minimum so as not to impair the UAE's active transhipment and re-export business.7 The Federal Customs Authority (FCA) was established in 2003. FCA is the authority concerned with customs affairs in the United Arab Emirates. It is working to unify, develop and improve customs policies, legislations and regulations, and supervise their implementation across the local departments of customs. Operators holding a trading licence are given an import code; clearing and forwarding agents clear imports of products authorized under that code. The required documents are the delivery order from the shipping agent, the original invoice and certificate of origin, the packing list, and the bill of lading. The customs administration of the emirate of first importation collects and retains relevant customs duties, which are not transferred to or managed by the Federal Customs Authority . A deposit or bank guarantee is required in the case of imports eligible for duty and tax concession (section (iii)(b) below). 15. About 71% of UAE imports are cleared by Dubai Customs and approximately 21% by Abu Dhabi Customs. At both Dubai and Abu Dhabi Customs, the entire customs declaration can be made electronically8. In 2005, approximately 17% of Dubai Customs declarations were processed electronically. As a result of computerization, customs clearance times in Dubai are reported as among the shortest worldwide (a few minutes); in some cases, clearance is possible before shipments arrive in Dubai, provided that cargo documents are on time and in order. One of the reasons for the rapid customs clearance is the quasi absence of inspections for conformity with technical regulations (section (vii)); as a result, clearance does not require physical examinations or technical controls. 16. In April 2010 The Dubai Customs launched the Mirsal 2 B2G service for its eligible business partners who conduct high volume business with Customs using Mirsal 2; the integrated system enabling business partners to submit declarations online from client’s system to Mirsal 2 with easy transactional processing and E-payment taking place directly between both parties. This initiative
The Common Customs Law of the GCC States is available online at: http://library.gcc-sg.org/ English/enew01.htm. 6 A description of the GCC customs procedures is available online at: http://www.gcc-sg.org/GCCCustoms/gcc_cu01e.html. 7 The main Customs Offices are: Dubai Customs (http://www.dxbcustoms.gov.ae); Abu Dhabi Customs (http://www.auhcustoms.gov.ae); Sharjah Customs (http://www.sharjahcustoms.gov.ae); and Fujairah Customs (http://www.fujairahcustoms.gov.ae/). 8 Source: National Beuro of Statistics
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comes as part of the continuous improvement of the electronic systems offered by Dubai Customs to its clients and in light of Dubai Customs trend towards electronic processing of all customs declarations. The latest electronic business service (B2G) shall provide a number of benefits including but not limited to; reduction of human errors, automation of collaborative business process with Customs, fastest channel for declaration submission, physical presence for declaration submission is avoided thereby freeing clients from the hassle of frequent visits, creation of more time for the core business tasks, reduction of declaration cost, round the clock - 24 X 7 – availability, quick feedback on the status of the declaration, simple, painless and easy declaration process, thus in turn helping Customs to make best use of its human resources and assigning counters employees to do other tasks.9 17. The UAE invoked Article 20.1 (on the five-year transition period available to developing countries) of the WTO Customs Valuation Agreement (CVA) to delay the full implementation of the Agreement until the end of 2003. The federal customs authorities have confirmed that the CVA is now implemented by all emirates.10 Nonetheless, technical assistance has been requested by the UAE to familiarize its customs administration and economic operators with the CVA. The UAE has notified the WTO that it does not currently apply minimum values to any products, with the exception of tobacco products, and does not use or plan to use pre-shipment inspection services for customs valuation purposes.11 Customs tariffs are levied on the c.i.f. value of imports. 18. At Dubai Customs, customs-related disputes that are not solved at the level of custom offices can be brought to the Valuation Directorate if they relate to valuation, or to the Directorate of Tariff if they relate to classification. No dispute regarding valuation or classification at Dubai Customs has ever been brought to a judicial court. The operator could also appeal to the World Customs Organization (WCO), of which the UAE is a member. (iii) Rules of origin
19. The UAE has never made a notification to the WTO Committee on Rules of Origin. There have not been any disputes or complaints in the WTO regarding the rules of origin applied by the UAE. 20. The UAE applies non-preferential and preferential rules of origin. As part of its obligations under the GCC customs union, the UAE applies the same non-preferential rules of origin as the other five GCC members with respect to imports from third countries. Under the non-preferential scheme, products are generally considered as originating from the country where they are wholly obtained or where they underwent substantial transformation, with at least 40% of local value added. A certificate of origin is required to clear imports. It must be produced by the original exporter and legalized by a recognized authority in the country of export. 21. The UAE's preferential rules of origin are also generally based on a value-added content criterion, but may differ according to the agreement (Chapter II(4)(ii) and (iii)). For products imported from the Greater Arab Free-Trade Area (GAFTA), local value-added of at least 40% is required in order to qualify for preferential treatment. It is important that origin rules be harmonized for past and future FTAs involving GCC Members.
Source: Dubai Costumes: Dubai Customs - MIrsal 2 B2G WTO document G/VAL/N/4/ARE/1, 15 September 2004. 11 WTO document G/VAL/W/120, 27 May 2003.
United Arab Emirates Page 35
Tariffs, other duties, and taxes MFN tariffs
22. The UAE has a low and simple MFN tariff (Table III.2); all rates are ad valorem (except on tobacco), and there are no tariff quotas, no nuisance rates, and no other duties and taxes on imports. Its tariff is based on the GCC's Common External Tariff (CET), which consists of an across-the-board rate of 5% together with a list of 421 tariff lines that are duty free amongst GCC countries, mainly agricultural raw materials and basic food products, pharmaceutical products, and other products including certain papers, books and magazines, unwrought precious metals, vessels and airplanes; in the case of the UAE, alcoholic beverages are subject to a 50% tariff; and the alternate tariff on tobacco products is 100% or Dh 100 per 100 sticks of cigarettes or Dh 800 per kg. of raw tobacco, whichever is higher.12
Table III.2 Structure of the MFN tariff, 2005 2005 1. Bound tariff lines (% of all tariff lines) 2. Duty-free tariff lines (% of all tariff lines) 3. Non-ad valorem tariffs (% of all tariff lines)a 4. Tariff quotas (% of all tariff lines) 5. Non-ad valorem tariffs with no AVEs (% of all tariff lines)a 6. Simple average tariff rate Agricultural products (WTO definition) b Non-agricultural products (WTO definition)c Agriculture, hunting, forestry and logging (ISIC 1) Mining and quarrying (ISIC 2) Manufacturing (ISIC 3) 7 Domestic tariff "spikes" (% of all tariff lines)d 8. International tariff "peaks" (% of all tariff lines) e 9. Overall standard deviation of applied rates 10. "Nuisance" applied rates (% of all tariff lines) f a b c d e f 100 5.8 0.4 0.0 0.4 5.1 6.2 4.8 3.3 5.0 5.2 0.5 0.5 5.6 0.0 Bound rates 100 1.0 0.0 0.0 0.0 14.9 24.0 13.1 16.7 15.0 14.7 0.8 0.8 16.8 0.0
Tariff lines that are missing, or for which no rate was available. WTO Agreement on Agriculture. Excluding petroleum. Domestic tariff spikes are defined as those exceeding three times the overall simple average applied rate (indicator 6). International tariff peaks are defined as those exceeding 15%. Nuisance rates are those greater than zero, but less than or equal to 2%.
Source: WTO Secretariat calculations, based on data provided by the Emirates authorities.
23. The overall average MFN applied tariff is 5.1%. The coefficient of variation is 1.1 (with a standard deviation of 5.5), reflecting the fact that tariffs range from zero to 100% (Table AIII.1). Tariffs average 6.2% on agricultural products (WTO definition), and 4.8% on non-agricultural products. Using ISIC (Revision 2) definition, manufacturing, and mining and quarrying receive almost the same average level of protection, at 5.2% and 5%, respectively; the average tariff for agriculture is 3.3%. 24. In aggregate, the UAE's tariff displays positive escalation, from first-stage processed products, with an average tariff of 4%, to semi-finished goods, with an average rate of 4.9%, and fully processed products, on which tariffs average 5.4%. This positive tariff escalation stems from the lower tariffs applied (on average) to agricultural raw materials. In most industries, tariffs are uniform
The tariff rate on alcohol was imposed under a Cabinet resolution (No. 141/4).
some 19% of lines were bound at 10% or less.0 9. The majority of tariff lines (79% of the total) were bound at a final rate of 15%. Chart III. 29012200. 29012920.9%. based on data provided by the United Arab Emirates authorities. The UAE bound all its tariff lines at ad valorem rates. reflecting the high rates on tobacco and spirits. 29012400. and in fabricated metal products because of duty-free imports of vessels and airplanes. for 13. apparel Paper. plastics Food. tariff escalation is mixed (negative from the first to the second stage. on 33 tariff lines at the HS eight-digit level. For most products.8% of lines (covering alcoholic beverages and tobacco products) carry a bound rate of 200%. with duty-free imports of unwrought precious metals. 29012300.0 All products Non-metallic mineral products Fabricated metal products Basic metal products Chemicals.0 1. 29012960. and then positive) in food and beverages.Trade Policy Review Page 36 from the first to the final stage of processing (Chart III.6% of lines after 15 years (April 2011).0 8.2).1 Tariff escalation by ISIC 2-digit industry. the applied MFN rate of 5% is above the final bound rate of zero (as of April 2006). 2005 Per cent 10. 29012940.0 6.0 5. including all agricultural products. 13 Other manufacturing Wood products Textiles.0 NOT APPLICABLE NOT APPLICABLE Raw materials Semi-processed Fully processed 4. 29011030. Escalation is slightly negative in chemicals and in paper and printing. printing Agriculture Mining . however. Otherwise. 29012930. April 2006). 29011050. 29012910. it is also slightly negative in basic metal industries. 25. 29011020.4% of lines however.e. the final rates were implemented with immediate effect. The simple average final bound rate is 14. beverages Source : WTO Secretariat estimates. the final bound rates are entered into force after ten years (i. and for 0. while 1% of lines (covering items such as organic chemicals and pharmaceutical products) were bound at zero. 29011040.0 2.0 7.1). the final bound rates range from zero to 200%.0 3. 29012100.13 According to the authorities.1% in 2005 (Table III. this has The HS codes are: 29011010. MFN applied rates are well below the final bound rates. For most products. 29011060. because of duty-free imports of pharmaceuticals and certain books. 29011090. Some 0. compared with a simple average applied MFN rate of 5.0 0. 29012950.
Importers do not need to hold a trading licence if they are engaged in re-export. the President. The agreement will provide the following: a) It comprises standards for best international practices facilitating and coordinating customs procedures. 29021900. and items for repair or maintenance. raw and semi-manufactured materials. and provides all parties with information required in relation to laws. and packing materials necessary for industrial production are exempted from duty under a federal law relating to industry assistance (section (4)(i) and Box III. Goods remaining in the UAE after 180 days are liable to duty payment. customs regulations. e) It also helps the consistent and transparent implementation of measures and procedures. 29024300. 29029010. The ATA carnet is now the document most widely used by the business community for international operations involving the temporary admission of goods14. and thus enhances and improves efficiency and effectiveness. d) The implementation of programs for the continuity customs practices and procedures. f) It defines the utilization of specific risk management and procedure control based on auditing. Also in May 2010. "temporary admission".15. 29022000. with rates higher than those previously levied or bound by the UAE. scientific research. 29012990. spare parts. 29024100. 29021100. of the United Arab Emirates has issued the Federal Decree No 33 of 2010 regarding the accession of the United Arab Emirates to the Revised Kyoto Convention in order to facilitate and coordinate the customs procedures. 29024200. 29024400. 29023000. except that the goods must be re-exported within a maximum of three years of import. Duty and tax concessions are also granted under the "import for re-export". The same documentation is required for goods declared under "temporary admission". the deposit or bank guarantee is refunded/released on proof of re-export. and apply to production for both the domestic and export markets. The Agreement requires the contracting parties to accept the ATA carnet. equipment used in construction.ae . b) It eliminate disparity between customs procedures and practices of the signatories which impedes international trade and other international trade exchanges.ae 15 Source: www. 29026000.1).wam. such as goods imported for exhibitions. and information technology. 29029090. development projects.United Arab Emirates Page 37 resulted from the implementation of the GCC tariff in 2003. and 30068000. Industrial inputs such as equipment. 14 Source: www. and administrative directives. In April 2010 The cabinet gave its nod for the UAE admission to the Convention on Temporary Admission (the Istanbul Convention). an international customs document that assures through an international guarantee system that duties and taxes will be paid in cases of misuse. or transit. c) It can facilitate international trade without negatively affecting standards of customs control. temporary admission. The exemptions are industry and company specific. customs departments and the private sector and specifies methods for the application of international standards related to customs work. Importers using the "import for re-export" regime make a deposit or provide a bank guarantee in lieu of duty. These "privileges and exemptions" are specific to the UAE and may therefore differ from one GCC State to another.wam. 27. 29027000. as well as cooperation with other local authorities. (b) Duty and tax concessions and exemptions 26. 29029020. 28. or "transit" regimes. 29025000.
and controls 32. . received on a "through-bill-of-lading".Trade Policy Review Page 38 29. the armed forces. and is refunded on proof of exit of the goods out of the UAE within 30 days of the date of the transit bill. (6) of 1986.0031 4907. Circular No. In the UAE. Imports that are prohibited in some member States and permitted in others must not transit through the member states in which they are prohibited. 1782 of 1982. All imports from Israel are prohibited. (10) of 1980 16 Section VIII of the Common Customs Law of GCC States specifies those agencies and goods exempt from duty. 2939 Product/description Narcotics Reasons for prohibition Federal Law No. industrial waste. personal effects. The GCC Common Customs Law distinguishes absolute import prohibitions from restricted imports. In principle products from a GCC member circulate free of duty across the Customs Union. and returned goods.3). Imports originating from the other members of GAFTA enter the UAE duty-free. 1207. Table III. including international conventions. consigned to a destination outside the UAE and dispatched overland. the goods are cleared on a trans-shipment bill. used pneumatic tyres. (v) Import prohibitions. are cleared on a "transit bill". "Habara" falcons. 1211. imports by charitable societies. absolute import prohibitions are maintained for various reasons. A deposit or guarantee is required by Customs.3 Prohibited products.0032 7118 Banknotes in circulation Banknotes not yet in legal circulation Coins Government Decision of 1966 Federal Law No. (c) Tariff preferences 31. 30. and religious and moral considerations. 2010 HS headings 0908. Government Decision of 1966 Authorizing agency MI MJ MH MAF CB Counterfeit money 4907. any printed material that does not adhere to religion or morals that is aimed at causing corruption and disorder. Duty-free imports are also allowed for.16 There is currently no duty-drawback scheme. military forces. 33. diplomatic missions. licensing. although this is permissible under Article 16 of the Executive Supplementary Notes to the GCC Common Customs Law. ivory and rhinoceros horn. including the UAE. health and safety. inter alia. forged and duplicate currency. Dubai Customs Admin. 1302. Consignments. live camels. with the exception of tobacco products and all alcoholic products excluded from the GAFTA preferential provisions. police. and charity institutions. They cover all kind of drugs. such as the diplomatic corps. although GCC members are currently working on the development of a common list to the extent possible. environmental protection. If the consignment is dispatched by sea. international organizations. directly from the port (ship-shore-ship or ship to ship). or materials prohibited under any law in force in the country (Table III. Each GCC state determines its own list of prohibited or restricted products. asbestos.
0000 Printed matter.United Arab Emirates Page 39 Decision by Israel Boycott Office prohibiting goods from Israel.1100 Crude ivory (ivory) and rhinoceros' horn Gambling tools and machineries 3-layer nylon fishing nets Federal Law No. (1/43) of 2003. (53/2/60/2003) M MEP MH MAF 9503. magazines.4900 0106. (166/94). falcons bearing passports. 1986 and 1996 respectively MAF 49 701 9702. pictures.4 Chopped or compressed tobacco (pan) Swine and its products . (98) of 1996 Ministry of Economy and Commerce Decision 2403. oil painting. sulphonated or nitrosated derivatives of phenols or phenol-alcohols containing only halogen substitutes and their salts Radiation-polluted substances Sheets and pipes of asbestos-cement Laser pens Dangerous trash Federal Decree No. (1) of 2002 MH ME FEA MIC MH M MI MH M FEA M C C 6811 9013. (31) and (156) of 1988. (34) of 1988. in accordance with the system for circulation of dangerous materials and refuse Part of Federal Law No. (13) of 1999 FEA MH MEP 2903 2908. bearing Israeli marks or logos 0507. (173/9) of 1988 Ministry of Information Decisions Nos (75).1000 9504. etc. (1631) of 1998 MAF ADP FEA 2928 Decision by Chairman of Federal Environment Authority No. (24) of 1999.1030 1602. consisting of lead MIC 9701 9702 9703 4012 1704. not stuffed Falcon hunting is prohibited from September until March each year except for: falcons with permits under CITES Convention. (15) of 1972 MEP Decision by Crown Prince Sheikh Maktoum Bin Rashid on 28 May 1989 MEP MI Decision by the Ministry of Agriculture and Fisheries No. in accordance with the system for circulation of dangerous materials and refuse Local Ordinance by Sheik Hamdan Bin Rashid No.2000 Part of Federal Law No. (24) of 1999. photograph. Ministry of Interior Decision No.9090 MF M Decision No.0000 9703. Council of Ministers Decree No. decency or deliberately imply immorality or turmoil Used and reconditioned tyres Candies in cigarette form Children's toys in form of dinosaur. books.1000 Halogenated derivatives of hydrocarbons Halogenated.3100 Toys representing animals or nonhuman creatures. and sick falcons arriving for treatment with permits from the Environment Research Authority Ozone layer depleting substances Ministerial Decree No.3000 5608. cards. and stone sculptures that contradict Islamic teachings. Ministry of Interior Decision No. stuffed Toys representing animals or nonhuman creatures.4100 9503. decency or deliberately imply immorality or turmoil Works of art that contradict the Islamic teachings.
spent primary batteries and spent electric accumulators Meat and edible meat offal No.fresh. (6/2003).0000 7602. turkeys and guinea fowls. ducks. being goods of a kind suitable for bouquets or for ornamental purposes fresh. mosses and lichens. (62) of the year 2005 Concerning ban importing all kinds of living birds and their products from the Federal Republic of Russia Ministerial Decree No. dried. primary batteries and electric accumulators.fowls of the species Gallus domestics. geese. of the poultry of heading 01. bleached.2020 7204 7404. chilled or frozen.Trade Policy Review Page 40 7326.(40) of the year 2005 On the Amendment of the Ministerial Decree Number (39) of the year 1991 on banning to import date palm trees and their offshoots. bleached. Animal forage Palm tree seedling offshoots. Foliage. that is to say. impregnated or otherwise prepared. dried. Council of Ministers Decree No. their products and offal from Alava province in Spain MOEW 0105 01063 0207 06023 0603 0604 Live poultry.0000 7902.(276) of the year 2006 concerning ban importation of all kinds of living domestic . branches and other parts of plants.8112 8548. Dubai Customs Ministry of Agriculture and Fisheries Decision No. (4/7/1234/79).0000 8101 .(64) of the year 2005-03-02 On terms and conditions for importation of Pet Animals to the United Arab Emirates Administrative Decision NO. coconut MOEW 06022010 Ministerial Decree No. MOEW 01061940 01061950 Dogs Cats MOEW 01063 Birds MOEW 23 Residues and waste from the food industries.1000 Steel wire articles for fishing Ferrous waste and scrap Copper waste and scrap Nickel waste and scrap Aluminium waste and scrap Lead waste and scrap Zinc waste and scrap Tin waste and scrap Waste and scrap of other base metals Waste and scrap of primary cells.(140) of the year 2005. Ornamental birds. spent primary cells. Ornamental shrubs Cut flowers and flower buds of a kind suitable for bouquets or for ornamental purposes. coconut trees(Al Narjeel) and the ornamental palm trees Ministerial Decree No. slaughtered. wild. dyed.05. prepared animal fodder. fresh. and grasses. 1/294 of 2003 MAF MFI 02 Ministerial Decision No. dyed. Birds Meat and edible offal. without flower or flower buds.0000 7503. (428) of the year 2008 On extension the lift of ban for importing Somali chilled and frozen meat Ministerial Decree No. impregnated or otherwise prepared.0000 8002. (34) of 1991 Customs Notice No. MOEW .0000 7802.
(175) of the year 2006 on Ban importation of all species of living. bred in captivity. bleached. being goods of a kind suitable for bouquets or for ornamental purposes fresh. of the poultry of heading 01. chilled or frozen. dried. turkeys and guinea fowls. fowls of the species Gallus domestics. impregnated or otherwise prepared. geese. branches and other parts of plants. their products and their offal from the State of Cameron . that is to say. Live poultry.fowls of the species Gallus domestics. MOEW Ministerial Decree No. wild. Ornamental shrubs Cut flowers and flower buds of a kind suitable for bouquets or for ornamental purposes.United Arab Emirates Page 41 0105 01063 0207 06023 0603 0604 01 02 06023 0603 0604 01063 0207 0105 Live poultry. without flower or flower buds. dyed. dried. dyed. dried. impregnated or otherwise prepared. chilled or frozen. ducks. of the poultry of heading 01.(91) of the year 2006 on ban importation of all kinds of living tamed. ducks. without flower or flower buds.fowls of the species Gallus domestics. wild ornamental birds. wild.05. Foliage. being goods of a kind suitable for bouquets or for ornamental purposes fresh. impregnated or otherwise prepared. mosses and lichens. dyed. bred in captivity birds. dried. their products and their offal from the Republic of Niger MOEW 01063 0207 Ministerial Decree No. bleached. wild. branches and other parts of plants. domestic. MOEW 0105 06023 0603 0604 . tamed. without flower or flower buds. ornamental birds. slaughtered. dyed. impregnated or otherwise prepared. being goods of a kind suitable for bouquets or for ornamental purposes fresh.fresh. ducks. turkeys and guinea fowls. Foliage. fresh. and products and offal’s there from Burkina Faso MOEW Ministerial Decree No. mosses and lichens.fresh. Birds Meat and edible offal. impregnated or otherwise prepared. bleached. dyed. chilled or frozen. slaughtered. dyed. bleached. turkeys and guinea fowls. domestic. LIVE ANIMALS Meat and edible meat offal Ornamental shrubs Cut flowers and flower buds of a kind suitable for bouquets or for ornamental purposes. geese. fresh. their products and offal from Fuon Town in Denmark . Birds Meat and edible offal.fresh.05. Birds Meat and edible offal. dried. Ministerial Decree No. bleached. mosses and lichens. impregnated or otherwise prepared. that is to say.(112) of the year 2006 concerning ban importation of all kinds of living. Foliage. and grasses. Ornamental shrubs Cut flowers and flower buds of a kind suitable for bouquets or for ornamental purposes.(96) of the year 2006 on ban importation of all kinds of living birds. fresh.05. branches and other parts of plants. of the poultry of heading 01. geese. and grasses. and grasses. bleached. Live poultry. that is to say. dried.
fresh.05. that is to say.(44) of the year 2006 on ban importation of all kinds of living tamed. without flower or flower buds. Ornamental shrubs Cut flowers and flower buds of a kind suitable for bouquets or for ornamental purposes. wild. and grasses. dried. LIVE ANIMALS Ministerial Decree No.fowls of the species Gallus domestics. impregnated or otherwise prepared. their products and their offal from the Republic of Albany. bleached. These are contained in the underlying regulations. whether or not agglomerated. of the poultry of heading 01. mosses and lichens. of the poultry of heading 01. dyed. wild.fresh. MOEW 01063 0207 0105 06023 0603 0604 2703 31 a ADP: C: CB: FEA: M: MAF: ME: MEP: MF: MH: MI: MIC: MJ: Birds Meat and edible offal. bleached.05.(90) of the year 2006 on ban importation of all kinds of living tamed. fowls of the species Gallus domestics. impregnated or otherwise prepared. MOEW Ministerial Decree No. not all HS Codes are reproduced. turkeys and guinea fowls. branches and other parts of plants. Live poultry. Fertilisers MOEW Ministerial resolution number (476) of the year 2007 Concerning by-law of AGCC fertilizers and agricultural soil conditioners law MOEW For reasons of space. ornamental birds. fresh. turkeys and guinea fowls. bleached. dyed. dyed. dried. mosses and lichens. that is to say. geese. Live poultry. chilled or frozen. being goods of a kind suitable for bouquets or for ornamental purposes fresh. Ornamental shrubs Cut flowers and flower buds of a kind suitable for bouquets or for ornamental purposes. geese. dried. . Foliage. Abu Dhabi Police Customs Central Bank Federal Environment Authority Municipality Ministry of Agriculture and Fisheries Ministry of Energy Ministry of Economy Ministry of Finance Ministry of Health Ministry of Interior Ministry of Information and Culture Ministry of Justice Source: Dubai Customs. Peat (including peat litter).fresh. Foliage. chilled or frozen. branches and other parts of plants. being goods of a kind suitable for bouquets or for ornamental purposes fresh. dyed. their products and their offal from the Republic of Nigeria. without flower or flower buds. dried. bleached. ornamental birds.(45) of the year 2006 On ban the importation of all hoofed living animals and their products from some Provinces in Argentina Ministerial Decree No. and grasses. ducks. impregnated or otherwise prepared.Trade Policy Review Page 42 01063 0207 0105 06023 0603 0604 01 Birds Meat and edible offal. ducks. impregnated or otherwise prepared.
(vii) Standards and other technical requirements 36. The Government's priority is to align national standards on international norms. the UAE notified the Committee on Import Licensing Procedures that there are no import licensing requirements in the UAE. G/SCM/N/1/ARE/1. 28 of 2001. Available at: http://www. IEC System of Conformity Assessment Schemes for Electrotechnical Equipment and Components (IECEE). of which 85% are based on GCC standards as set by the Gulf Standards Organization (GSO). The law also sets out provisions on the issuance of standards. GCC standards are based on international standards. 27 March 1997. (a) Standards.2). moral.United Arab Emirates Page 43 34. According to WTO data there were 23 notifications. ESMA is the sole body responsible for setting standards in the UAE. accreditation. ESMA is the WTO national enquiry point. It has accepted the WTO Code of Good Practice for the Preparation.ae/ esma/. and Application of Standards. In general. WTO documents G/ADP/N/1/ARE/1. implementing regulations have yet to be finalized. 26 March 1997.uae. religious. and is one of the federal bodies that recommend technical regulations to UAE Cabinet (the latter can also be set at emirate level). and conformity assessment. It has no national laws and/or regulations on contingency trade remedies.19 ESMA is a financially and administratively independent Authority. health. 26 March 1997. and some 15% are UAE standards. sales of standards. Technical regulations (as defined in Annex I of the WTO Agreement on Technical Barriers to Trade (TBT Agreement)) and SPS measures (as described in Annex I of the Agreement on the Application of Sanitary and Phytosanitary Measures (SPS Agreement)) are generally issued by Ministerial decree.. ESMA is a member of the International Organization for Standardization (ISO). of Codex Alimentarius. inter alia. About 12% of the 3985 standards in force in the UAE are WTO document G/LIC/N/3/ARE/1. 38. In April 2000. ESMA departments deal with conformity assessment. The UAE has not taken any anti-dumping. with revenues increasingly from. and safety control purposes (Table AIII. and certification 37. (vi) Contingency trade remedies 35. certain goods require prior authorization for. technical regulations. the UAE has adopted the Federal Decree No (7) of 2005 regarding approval and implementation of the Unified GCC Law on anti-dumping. testing. ESMA has 3985 standards in place till end of 2008. implementation of conformity assessment programmes including accreditation. countervailing or safeguard actions since becoming a Member of the WTO in 1996. The UAE has made more than 23 notifications to the TBT Committee as of March 2009 on new technical regulations and conformity assessment procedures. The Emirates Authority for Standardization and Metrology (ESMA) was established by law in 2001 as a governmental body. 18 17 . 25 April 2000. countervailing measures and safeguards. and metrology. security. Its aim is health. See ESMA online information. and quality marks. The last one dates to July 2006. standards. inter alia. and G/SG/N/1/ARE/1. Adoption. Companies may be granted an import permit upon application to the relevant ministry or entity. ESMA is managed by a Board of Directors chaired by the Minister of Economy.18 However.gov. safety and environmental protection by ensuring that imported or domestically produced goods meet the UAE technical regulations. The UAE has largely harmonized its policies and regulations on standardization and technical regulations with other GCC Members. and (through ENAS (see below)) of the International Laboratory Accreditation Cooperation (ILAC).17 Nonetheless. 19 Federal Law No.
Available at: http://www. See UAE Agriculture Information Centre online information. One of the 2004 notifications concerned general legislation on animal welfare to be adopted by the UAE.Trade Policy Review Page 44 compulsory (technical regulations). animals. the Ministry of Agriculture. the Dubai Municipality's Accreditation Department (DAC) accredits conformity assessment bodies testing and calibration laboratories. and certification and inspection bodies. In the absence of national standards on any type of products. and certification and inspection bodies. Both ENAS and DAC are members of ILAC.uae. or market surveillance under such bodies as the Ministry of Health. The WTO national enquiry point for SPS measures is the Ministry of Agriculture and Fisheries (MOEW)which is also the national notification authority. The (MOEW)is in charge of inspection of all imports. the Ministry of Energy. suppliers may declare compliance to internationally accepted standards20.ae/uaeagricent/. 2/114 of 2004. The UAE has not concluded any mutual recognition agreements. and their products. ENAS online information. ESMA implements two main conformity assessment schemes.21 ENAS is under the authority of ESMA. Since 1995. are published in the Official Gazette. except the cases where international standards are not suitable for the country due to issues related to climate. In addition. the applicant must submit a similar registration application as the one mentioned above ESMA reviews the submitted information. Imports of other products may require certificates.ae/enas. 22 G/SPS/N/ARE/3. environment or technological problems. or emirate governments. The latter scheme operates two programs. 39. supported by a declaration of conformity to the applicable standards as well as by a test report issued by one of the accredited laboratories. 41. and domestic production of plants. inspection. Nevertheless.22 Recent notifications relate mostly to import bans on birds and their products because of bird flu. including technical regulations. UAE standards in general are subject to updating and revision to ensure it serves UAE needs and that they are harmonized with international standards. All standards. exports. (b) Sanitary and phytosanitary measures 42. All notifications were made in 2004 and 2006 (Table II. A voluntary program under the authority of ESMA applies to all products that meet ECAS requirements. The Emirates National Accreditation System (ENAS) was established in 2004 to accredit conformity assessment bodies including testing and calibration laboratories. no specific trade concerns Ministerial Decision No. 29 July 2004. The mandatory program applies to the following regulated products: cigarettes and closed type electric water storage heaters for household use. self-declaration is accepted.2). For each regulated product. and issues a certificate of conformity. The conformity assessment procedure on passenger vehicles and tyres consists of selfdeclaration to the GSO by producers or suppliers for approval. 40. Applicants must submit a registration application. or based on international standards. The quality mark program (a voluntary programme applying to any product according to UAE standards) and the Emirates Conformity Assessment Scheme (ECAS). 21 20 . although current plans are to merge all accreditation unites and departments in GCC countries in one regional accreditation body that serves the GCC region.gov. makes a decision on the level of conformity. they are also available online through ESMA website. Available at: http://www. Most UAE standards and GCC standards are either identical to international standards. The UAE has made a total of 23SPS notifications since becoming a Member of the WTO.
28 23 Under the WTO Agreement on Sanitary and Phytosanitary Measures. and the list of ingredients and additives in descending order of proportion. (c) Marking. 24 WTO document. ship or carrier attesting that they have not been in contact with any infected animals of contagious or epidemical diseases. G/SPS/GEN/49/Rev. ESMA has updated its packaging and product labelling standards in accordance with o GSO norms and international standards. a certificate from an Arab country's embassy in the exporting country (if available) should attest that they were slaughtered according to Islamic law. All SPS regulations are federal. 26 Federal Law No. is in charge of authorizing imports of animals and their products.g. in accordance with Articles 40. country of origin.United Arab Emirates Page 45 have been raised concerning SPS measures maintained by the UAE. lot identification. Imports of drugs and medicines must be registered with the Technical Affairs Section of the Drug Control Department at the Ministry of Health. and additives. concerning veterinary quarantine. The Ministry of Health also regulates certain imports of food (Table AIII. Phytosanitary certificates do not appear to be required to attest absence of radiation.26 All consignments of animals. in cooperation with municipalities. There is currently one compulsory labelling legislation (technical standards) for food and two other voluntary standards for. as amended in 1992. 44.gov. and a report by the captain of the plane.27 All fats and oils used as ingredients must be specifically identified on the label. canned food) are exempt from phytosanitary certificates.uae.24 43. Food labels must contain product and brand names. name of the manufacturer. and Codex Alimentarius. 61. 6 of 1979. and 65 of Federal Law No. Arabic labelling is required and can be applied by sticker. Members have the possibility to raise concerns regarding SPS measures maintained by other Members. agricultural consignments are not permitted to enter the country unless accompanied by a phytosanitary certificate issued by the competent authority in the exporting country and attested by an Arab country's embassy in the exporting country. and describing the distinctive marks of the consignment.doc. labelling of chemicals and other industrial products. 27 GCC Technical Regulation No.ae/uaeagricent/RULES_REGULATIONS/federal_rules_e. Under Federal Law No. net content weight in metric units. their products or offal require: an official veterinary health certificate issued by the exporting country. labelling. animal feeds. or passed through infected areas during their journey. For slaughtered animals.25 In addition. 25 This law is available online at: http://www. production and expiry dates. Available at: http://www. 5 of 1979 (Plant Quarantine Law of GCC countries). evidence that it has been checked directly before shipment and found free of epidemic and contagious diseases. 4 of 1983 on the pharmaceutical profession and institutions.gov. dioxin. 28 Further information available at: http://www. and duly attested by an Arab country's embassy.stm. 45.23 The UAE is a member of the World Organization for Animal Health (OIE). all imports of plants and plant products are subject to an agricultural quarantine system.pdf. 9 June 2004. or cyclamate. the International Plant Protection Convention (IPPC).6.buyusainfo. 41.uae. its origin. The Department of Veterinary Quarantine at the MOEW.2). 9 of 1995. Imports of certain food products (e. . 47. and packaging 46.net/docs/x_3675466.ae/uaeagricent/RULES_REGULATIONS/law/ Federal5_e. An explanation of the reasons for such measures may be requested and should be provided by the Member maintaining the measure.
(d) Environmental-related trade measures 49. 52. established in 1999. established in 1996. (viii) Government procurement 51. The UAE prohibits the import of certain products for environmental or health reasons. The UAE Ministry of Environment and Water was established in 2006. production. internal or external trade of genetically modified organisms (GMOs). provisions of the procurement regime may vary from contract to contract. (Since 10 September 2009. Accordingly. National accounts data show that consolidated government expenditures on goods and services amounted to Dh 24. and Appendices I. International Trade Administration (2004).ERWDA). or to any project excluded from the ambit of the regulation by a resolution or law passed by the Council of Ministers.Trade Policy Review Page 46 48.3 billion (US$6. U. or to purchases for any "projects" handled by the Permanent Project Committee. However. reflecting a reduced amount excluding procurements of the ministry of education since it was transferred to the local government of Abu Dhabi. bury or dispose of hazardous wastes in any form in the UAE". No taxes are levied for environmental purposes. Despite provisions favouring local suppliers. 20 of 2000 on the administration contracts system. 7 of 2009. In 2008 federal procurements amounted to Dh 231 million (US$[63 million ]). the Basel Convention on the Transboundary Movements of Hazardous Wastes and their Disposal. as they do not include purchases in the context of development projects. and in accordance with Federal law number. the Stockholm Convention on Persistent Organic Polluants (POPs). Federal Law No. The handling of hazardous chemicals and waste in the UAE falls under the Regulation on Handling of Hazardous Substances. the Environmental and Protected Areas Authority. The regulation on federal government procurement is Ministerial Decision No. and the Environmental Protection and Industrial Development Commission (in Ra's al-Khaimah).S. . the Vienna Convention and Montreal Protocol on Control of Substances Depleting the Ozone layer). inter alia. or 6. (24) of 1999 specifies that "No public or private party or qualified or unqualified persons are allowed to import or bring. According to certain business sources. 50. the Rotterdam Convention on Prior Informed Consent (PIC) concerning chemicals. II and III of the Convention on International Trade in Endagered Species of Wild Fauna and Flora (CITES) regulating trade in endangered animals and plant products .4% of the UAE's GDP in 2004. or procurement by state-owned companies. and has also established the following three institutions with the primary purpose of protecting the environment29 .6 billion). there are no marking or labelling requirements for products containing GMOs. established in 1998. the Environment Agency in Abu Dhabi (formerly the Environmental Research and Wildlife Development Agency . This Decision does not apply to purchases by the Ministry of Defence or those related to the State Security System. 29 30 Federal Environmental Law No. MOEW took over all previous mandates of the Federal Environmental Agency .) Their activities do not have a direct impact on trade. in Sharjah. except for issues related to the international conventions mentioned above.30 The UAE is neither a member of nor an observer to the WTO Plurilateral Agreement on Government Procurement. particularly for major projects for which local expertise is not available. there is a strong reliance on foreign companies. Hazardous Wastes and Medical Wastes. There are currently no provisions on the use. these figures understate the importance of public procurement. or in accordance with international conventions on. Total federal expenditure under the Decision reached Dh 527 million (US$143 million) in 2004. 24 of 1999.
Specifications and conditions of the 31 32 U. an independent from the executive institution. second to buy the bid then present its proposal and third to get the result of the transaction. . 56. Procurements undertaken by the Ministry of Education have been transferred directly to the Emirate of Abu Dhabi as this ministry conducts significant procurement. With the same overall aim the State Audit Institution (SAI). only Dh 12 million (2. tenders may be opened on a national treatment basis to foreign-owned bidders established in free zones. The Ministries of Health and of the Interior handle their own procurement under the Decision. services and construction works be made through "general tender" (open tender). Government procurement organization in the UAE has undergone substantial change over the past decade. tenders are usually open to foreign suppliers with whom the authorities have worked on past projects. and twice in two widely disseminated newspapers. highways) by the Ministry of Public Works and Housing. Under the general tender. a committee requests quotations from selected contractors without any tendering process.gov. The direct order method is to be used in exceptional circumstances. Online information available at: www. Such a system also substantially satisfies the suppliers since it saves his effort in coming to the ministry first to register. such as the absence of competitive markets (e. In these cases. The Ministry of Finance will no longer be involved in central procurements of other federal ministries.gov. over 80% of the total value of purchases by MF follows the general tender method.. The notice includes a description of goods and services to be procured. essentially when these are the only available suppliers. A notice regarding planned procurement is published at the beginning of each fiscal year. bids are requested from a list of pre-approved suppliers. the period of validity of tenders.32 Publication may also be in foreign newspapers or other available media. or "direct order". Each ministry will offer its requirements for bids with no limitation and in accordance with the procurement procedures defined in the Financial procedures guidelines and Decision 20 of 2000. and the deadline for submission of tenders. According to MF data. According to business sources. The Decision no. "practical participation".ae and egov. Under the limited tender method. bids are advertised publicly. the foreign company is invited to open a branch and employ a service agent (Chapter II(5)). Certain tenders are exempt from this condition and open to foreign companies and establishments. the authority receiving tenders. In addition an independent dispute settlement entity has been established with the aim of resolving cases which may take place among suppliers and internal and external contractors on one hand and federal ministries on the other. 53.uae.000 the first year and Dh 500 for renewal. 54. The. Department of State (2005). this is also the case of purchases (e.ae (Arabic only).United Arab Emirates Page 47 The UAE Ministry of Finance has fully transformed government procurement procedures by establishing an e-procurement system aiming to promote government procedure transparency. Both companies working in the state as well as those working outside the state would benefit from the e-procurement system. used when only a limited number of suppliers is available.g. In order to have access to the electronic system.S. "limited tender". and Dh 10 million were spent through direct order. electronically (since 2001). Under the practical participation method.uae. or in certain cases. A procurement notice is usually published for one month at MF or the relevant ministry.3%) of federal purchases were carried out using the limited tender method in 2004. 55.g. The pre-evaluation by the Ministry of Finance of contracts has been abandoned in favor of an advisory pre-evaluation which aims to ease ministries’ performance and grant them freedom and speed in implementing the transactions. The bidder must be a GCC citizen or a company with maximum foreign equity of 49%.31 In the future. monopoly). 20 of 2000 also requires purchases of products. suppliers must register with the MF and pay Dh 1. exercises a posteriori control of transactions.
Holding General Investments 33 UOG online information. leasing and financial services. According to the authorities. 58. All defence purchases are centralized at federal level under the Ministry of Defence. to finalize the contract (Article 50). claims related to the tendering process can be submitted to a committee formed within the MF. the foreign company undertakes to "fulfil its offset obligation" equivalent to 60% of the value of the original contract.4 Projects implemented by the UAE Offsets Group. under the UAE Offsets Group (UOG)33. It acts as a conduit between international contractors and the local private sector. 60. Table III. Offset projects cover the full spectrum of economic activities. generally of 10% of the bid value. because the qualification and selection of suppliers are not based solely on optimizing quality and cost. Under the programme. The UOG carries out its purchases through direct negotiation with contractors and on a countertrade or offset basis. maintaining. The selected company must provide a performance bond. including advertising.3 billion). refitting naval and commercial ships Date palm nursery for plants propagated by tissue culture Language centre Advertising and events marketing for government and private sectors Shipping company owning and operating vessels and brokering cargo to finance and operate globally a fleet of modern dry bulk vessels and combined carriers in wet and dry Defence partner contractor/foreign Local partner Abu Dhabi Government Local shareholders Al Wathba Materials Local investors Agricultural Newport News (shares sold to Abu Dhabi Government) Kranti Development Limited McDonnell Douglas (now Boeing) Deutz AG/Tatra Deutz Offset Countertrade Dept. 59. The UOG measures the output of an offset project through its profits. Offset arrangements tend to negatively affect competition and increase the cost of goods and services procured.offset. but are biased by conditions relating to the associated joint-venture projects. suppliers (domestic or foreign) that sign a defence procurement contract must undertake to set up a joint-venture with the private sector that will generate returns equal to an agreedupon share of the contract. which was created in 1990 and reports to the Ministry of Defence. repairing. Torvald Klaveness Group Al Wathba Marrionet Berlitz Abu Dhabi BSI Bern Sapeth International LLC Combined Cargo UAE Emirates Commercial Centre Abu Dhabi Investment Company (ADIC). A "bid bond" (of 5% of the bid value) with a UAE bank is required as an initial guarantee (Article 32 of the Decision). 2010 Project name Abu Dhabi Shipbuilding Activity Construction of shipyard for building. Available at: http://www. The UOG could also require offsets on other than military public purchases. 57. Specifically. Majority government-owned companies are exempted from the two bonding obligations. they may be translated into one or more foreign languages. To date.ae . over a specified period (generally seven years). the ultimate objective is the diversification and development of the UAE economy. An investment agreement is reached on an "offset programme" with each foreign defence supplier. although this is not the case presently. In general. Under the programme. the UOG has implemented over 25 joint ventures (Table III. shipbuilding. all purchases by the UAE armed forces or elements thereof are subject to the offset obligation. and medical services.4) with a combined paidup capital in excess of Dh 5 billion (US$1. Oman & Emirates Invest. language centres. all contracts of US$10 million or more are subject to an "offset programme". if necessary. A Tenders Committee is constituted by the MF to assess the tenders and select the "best and lowest" bid. There is no standard system for suppliers to challenge the award of a contract. fish farming.Trade Policy Review Page 48 procurement must be in Arabic but.
French Fighter Invest & Coop.Abu Dhabi GAM-AERO Gulf Business Center Condor Medical Waste Mgt General Investments FZE GAMCO United Technical Services Aerospatiale (now EADS) Dassault. French Fighter Invest & Coop. Astrium Dassault.34 34 In the emirate of Dubai. MBDA Trakker Pakistan Alfia Investment Company Inovex Thales Diehl IWS Rohde and Schwarz Alfia Investment Company Rohde and Schwarz Rohde and Schwarz Founders: 59 CERT Al Jaber Group Al Mansouri Specialized Engineering United Technical Services Abu Dhabi Commercial Bank Al Jaber Group Local investors ENOC Local investors Bina Group Local investors Local investors Fleet management services A high-tech façade manufacturing company that aims to increase a building's life span Shipping company Glass products for architectural and interior construction projects Production of precast aerated concrete Multimedia interactive visitor centre Production of prefabricated elements Source: Information provided by the UAE authorities 61. . The Dubai Government also requires a foreign company to employ a service agent. 6 of 1997 contains provisions regulating contracts between Dubai Government departments and companies entering into a contract.400 Emirates Printing Forms Est 247 founders Al Hamed Enterprises Owning. and leasing assets and properties Technology transfer centre Chemical production Inspection services for bulk storage tanks Manufacture of fire extinguishing products and equipment Dassault. and laboratories Technical maintenance services for testing and repairing avionics equipment Advisor and consultant for international and regional companies wishing to invest in Abu Dhabi Outpatient healthcare centre Manufacture of mobile solar energy generators for power. issuing the tender. Programme Macquarie. Programme Boeing Gulf Diagnostic Center Gulf Solar Power Company Infoterra (Gula Center for Remote Sensing) International Fish Farming Co (ASMAK) Laser Re-nu National Central Cooling Company (Tabreed) MIRAK Agriculture (National Horticulture Center Franserres) Oasis International Leasing Co Productivity and Leadership Consortium Safewater Chemicals Solex Robotics Services UTS Burnstop LLC Abu Dhabi Risk & Treasury Systems LLC Trakker ME Schmidlin Gulf Energy Maritime Fusion Glass LLC German Emirati Company Limited (GECO) CITYZZ Visitor Center Emirascope Prefabricated Building Elements Ibn Khaldoun Al Nasser Holding Abu Dhabi Industrial Development CO Founders: 63 Shareholders: 31.United Arab Emirates Page 49 Project name Activity bulk traders Treatment of infectious medical waste generated from hospitals. bid bond requirements. including the preparation of tender documents. health and dental clinics. Dubai Law No. Programme Thales British Aeropace Systems Westinghouse (bought by Northrop Grumman) Specialist Mechanical Engineers General Electric Dassault. Programme Lockheed Martin GEC-Marconi GEC-Marconi (now BAe Systems). French Fighter Invest & Coop. desalination and refrigeration Service centre covering satellite and aerial remote sensing data Fish and shrimps in mariculture facilities Production of recycled laser printer cartridges Centralized cooling systems that will serve groups of buildings and complexes Greenhouses and agricultural management Defence partner Giat contractor/foreign Local partner Condor Medical Waste Management .com is used to advertise public purchases of information technology equipment. French Fighter Invest & Coop. and performance bond requirements. Certain governmental purchases can be handled electronically (since 2000). selling. managing. Tejari.
the Treaty on Nuclear Non-Proliferation) to which it is a signatory. Abu Dhabi. The UAE maintains export controls (through permits) on certain products for safety. (ii) 66. (3) (i) MEASURES DIRECTLY AFFECTING EXPORTS Registration and documentation 65.uk/ukti/ShowDoc/BEA+Repository/345/370160.uktradeinvest. 36 See also Federal Environmental Agency online information. .35 (ix) Local-content requirements 63. an export tax on steel scrap has been levied at the rate of Dh 250 per ton.Trade Policy Review Page 50 62. The UAE tightened export control laws and enforcement to prevent the movement of illicit goods and materials across its borders. Available at: http://www. as could the general requirement for a foreign branch to employ a local agent. CITES. and to ensure compliance with international obligations under treaties and conventions (e. the Basel Convention.g. (x) Other measures 64. the UAE government enacted a stringent export control law that includes stiff penalties for parties involved in the diversion of controlled 35 British Embassy. given the importance of the public sector. the majority of procurement (by value) is at emirate level. It restricts in particular exports of dual-use goods that might be used in weapons of mass destruction programs. In addition. public purchases are particularly large in relation to total expenditure. the exclusive distribution system with the obligation to employ a UAE agent could be linked to a local employment scheme. 68. which has not been notified under the WTO Agreement on Trade-Related Investment Measures. as well as narcotic drugs. However. It has never taken any measures for balance-of-payment purposes. as well as conventional weapons. security. The Secretariat has not been informed of any countertrade arrangements involving the governments of the UAE. psychotropic substances.36 WTO rules do not apply in any way to sovereign decisions to limit the exploitation of natural resources including oil.ae. and environmental reasons. For example.gov. the Ministry of Health reportedly accounts for 70% of demand for pharmaceuticals and hospital equipment. Given the decentralised nature of the UAE. including state-owned companies. and precursors.gaz and other natural resources. the Convention on Chemical Weapons. Permits are also required to export animals and animal products. Export prohibitions and restrictions 67. In August 2007.gov. the UAE Offsets Group runs a large offset programme (see above). The authorities indicate that no agreements have ever been concluded with foreign governments or foreign firms to restrict exports to the UAE. (iii) Export duties and taxes Since 2003. Commercial Section. shippers are required to provide Customs with an original invoice and a completed export declaration. The Secretariat has not received any information suggesting the presence of measures requiring the use of local products.fea. The UAE does not maintain any compulsory reserve stocks. Available at: http://feaapp. Furthermore. in Abu Dhabi. "Background notes on Abu Dhabi". To export goods of UAE origin.
DEDC offers many services most notably Trade Credit Insurance is also known as Accounts/Trade Receivables Insurance. Export promotion is the responsibility of each emirate. legal and foreign trade representation and access to potential buyers. with a mission of promoting Dubai’s industrial. financial. the UAE cabinet formed the UAE Committee on Commodities Subject to Import and Export Control. chemical and biological materials. 69. 71.emiratesindustrialbank. addressing commodities subject to import and export control procedures. The Emirate Industrial Bank was merged with the Real Estate Bank under the name “Emirates Development Bank” in order to provide loans for Industrial Projects. Law No. the Emirate Industrial Bank. Federal Law Number 13 of 2007. which reports to the President of the UAE. and dual-use items without a special license. up to imprisonment for one year and/or fines totaling over US$270. with the aim of harmonizing all promotional activities within the UAE territory. export or re-export of goods deemed a threat to the UAE’s national security. reporting directly to the Council of the Ministry of Foreign Affairs. including arms and military hardware. the project should have a minimum of 51% UAE or GCC ownership and should be located in the UAE. 39 Central Bank of the United Arab Emirates (2003). finance. In September 2008. Bans the export or re-export of strategic goods. branding advice. 51% owned by the Federal Government.000. the creation of a federal body for export promotion is currently envisaged.United Arab Emirates Page 51 shipments. does the following: a) b) c) d) e) f) g) h) i) j) k) Authorizes government bodies to restrict or ban the import. provides financing "at reasonable terms" for the industrial sector. This committee has the ability to categorize goods and technologies as strategic and controlled. if they can be used for military purposes or in conventional weapons or weapons of mass destruction. Specifies penalties. The committee includes representatives from across the UAE government. 18 April 2000.net/financialservices. insurance. or the environment.40 To be eligible. 2006 established Dubai Export Development Cooperation (EDC) as an autonomous organization funded by the Government of Dubai.htm. EDC role is to provide exporters with the services required to enter or expand foreign markets including trade information. and assistance 70. the project should have an industrial licence issued by the Ministry of Finance and Industry. natural resources. Dubai Sub-contracting and Partnership Exchange (Dubai-SPX) is a program that serves as technical information sharing and a match making hub.38 At federal level. The Government has also recently purchased the shares of the partners in the Emirate Industrial Bank in order for the bank to be fully owned by the federal government.39 This includes export credits and equity financing. business and service capacities Source: Ministry of Foreign Affairs: Export Control & Combating Terror Financing _UAE Embassy in Washington DC 38 WTO document G/SCM/N/38/ARE. The authorities indicate that the UAE does not grant or maintain any export subsidy within the meaning of the WTO Agreement on Subsidies and Countervailing Measures. public health and safety. Establishes a national committee with clear oversight and management responsibility for UAE export control procedures. 40 See Emirates Industrial Bank online information for a summary of available financing: http://www. In April 2009. the UAE amended the export control law to toughen its implementation. 37 . The changes37 (iv) Export subsidies. foreign policy. In addition. According to the authorities. 10/2006 dated May 1.
a "trading licence" gives the same rights. facilities. distribute. It has since expanded from 10 hectares to over 300. 75. They have industrial production license . At the Jebel Ali Free Zone. A number of the national factories which are located in the Jebel Ali Free Zone are registered with the Ministry of Economy . Their capital is more than 51% owned by nationals. The type of services supplied must be the same as the services supplied by the parent company. no exchange restrictions). 74. Organizational Structure of DEDInformation on all the UAE free zones is available online at: http://www. and hence a full control over their activities. and foreign employment has been the source of economic growth (Chapter I(1)).com/. export. There are currently few barriers to the recruitment of foreign labour in the UAE. the free-zone regimes allow 100% foreign ownership of companies. The relevant customs authority delivers import and export permits. ABD 42 . a "general trading licence" allows the holder to import. but for specified items only. Therefore. freedom to repatriate capital and profits. employment generation. A "service licence" allows the holder to carry out the services specified in the licence within the zone. and mortgaged. The Department of Economic Development in Abu-Dhabi has dedicated a specific department for the purposes of export development called Foreign Trade & Export Support. and establishment and operating costs. Comparative advantages in each zone are based on individual locations. manufacture specified products. is the absence of restrictions on hiring foreign employees. and export the finished products. except Abu Dhabi. Emiratization programs are being progressively applied to counter the problem of unemployment of nationals. A "national industrial licence" is reserved for manufacturing companies with at least 51% GCC ownership. motor vehicles). Another advantage of operating in a free zone is that the Trade Agencies Law (section (2)(i)) above). Products may be brought into free zones and duty-free shops. and significant economic development.uaefreezones. The UAE's first free zone was established by decree at Jebel Ali in 1980. which regulates a part of the domestic trade in the Customs territory does not apply. Within the free zones. premises may be owned on leased land. low import duties except on tobacco and spirits. it allows duty-free sales inside the UAE customs territory.Trade Policy Review Page 52 and a Trade Partnership Program that is composed of Dubai Trade Dubai which is a single window providing a streamlined flow of services. areas of specialization (e. However. a company established in a free zone that has built its own facility may mortgage its premises to a bank or financing company to finance its debts or obligations. to create such free zones to attract inward investment. which could become significant for companies' productivity (depending on future policy trends). Another regulatory specificity of the free zones. Various types of licences allow operators to practice specified activities in free zones.g. Aside from the advantages already available to companies in the UAE Customs territory (no corporate or personal taxes. the value added by the free-zone company must be at least 40% of the value of the good to qualify for duty-free sales. However.42 73. and exported outside the country or to other free zones and duty-free 41 Source Department Of Economic Development –Abu_Dahbi . An "industrial licence" allows the holder to import raw materials. and store any items in accordance with the zone's rules and regulations.41 (v) Free zones 72. National treatment apply to factories located in the Jabel Ali Free Zone. and the growth of re-exports and transhipment as a major commercial activity led all the emirates. Operators register with the customs authority of the emirate in which the free zone is located. Its success in attracting foreign investment and technological expertise.
some support is provided to agriculture (Chapter IV(2)). and 4% in services.928 April 2009.43 Goods can remain indefinitely in free zones. The Emirate Industrial Bank provides financing "at reasonable terms" to the industrial sector (section (3)(iv) above)46. Dubai Media City. No information is available regarding financial assistance extended by the emirate authorities to private companies and to stateowned companies operating in the UAE and abroad (section (ii) below). The services provided by these programs are centred on two pillars one is support in preparing feasibility study and business plan and the second is through facilitating finance in cooperation with locales banks. and goods prohibited from entering the country.000 businesses from over 110 countries are operating at Jafza as of 2008: 76% are involved in trading. the Government of Dubai. 20% in manufacturing.1 of the Agreement.ae. Jafza is a commercial organization but is financially supported by its only shareholder.1). 79. expected in 2010. without being subject to customs duties. Upon completion of the Jebel Ali Airport. 76. as mentioned above. A number of investment incentives are available under Federal Law No. In addition. goods originating in an economically boycotted country. and distribution. 46 Central Bank of the United Arab Emirates (2003). 45 WTO document G/SCM/N/40/Add. Imports from free zones and duty-free shops into the customs territory are liable to all the normal customs duties and taxes (except. excluding authorized fuels necessary for operations. including Dubai Internet City. Jebel Ali Free Zone will be the only one in the region with an airport and a port on site. goods infringing laws on intellectual property rights protection. 12 free zones are under development. arms. Khalifa Fund was established with full financial and administrative The following goods may not enter free zones and duty-free shops: flammable goods. and Dubai has announced the launch of several additional free zones.1). and is a leading global trade and trans-shipment centre. Several free zones are dedicated to specific services subsectors. 44 Further information is available online at: www. Jebel Ali Free Zone Authority (Jafza) manages one of the world's largest and fastest growing exportprocessing zones. with investments of about US$4 billion. to which it submits quarterly performance reports.United Arab Emirates Page 53 shops. there were 26 free zones in operation in the UAE. In 2009.45 According to this notification.jafza. Federal Law No.1/Rev. Other important incentives is provided through program that support small and medium enterprises. In the context of its annual notification obligations under the WTO Agreement on Subsidies and Countervailing Measures. Over 6. that is specific (within the meaning of Article 2 of the Agreement). warehousing. ranging from duty-free imports to the supply of utilities at low prices. the GCC-owned companies that meet the 40% rule of origin criterion).44 The zone is built around Dubai's Jebel Ali Port which is one of the world's largest ports (Chapter IV(5)). ammunition and explosives of any kind. Dubai Health Care City (Box IV. (4) (i) MEASURES AFFECTING PRODUCTION AND TRADE Incentives 77. the UAE submitted its most recent "new and full" notification in April 2009. All exports from free zones are accounted for through export declaration. the Government of the UAE does not grant or maintain within its territory any subsidy. 1 of 1979 (Box III. or that operates directly to increase exports from or reduce imports into its territory within the meaning of Article XVI:1 of GATT 1994. However. within the meaning of Article 1. except those licensed by the competent authorities. all kinds of narcotic drugs and derivatives. 78. 1 of 1979 Organizing Industrial Affairs will be repealed soon and replaced by a forthcoming industrial regulation law. and Knowledge Village. radioactive materials. 43 . the project of which is currently under final review. This law will ensure compliance with international obligations.
packing and wrapping materials used at production level. Dubai Aluminium Company. and any other projects that may be of specific economic importance. The law applies to most industrial projects except extraction or refining of petroleum or other raw materials. Emirates National Oil Company. such as in the hydrocarbon subsector. equipment.2002 named Mohammed Bin Rashid Establishment for Young Business Leaders t launched on June 12. either free or at a reduced price or a symbolic rent with optimal conditions. 47 48 Source: Emirates Business 24-7 : RAK helps SMEs explore untapped areas WTO document G/STR/N/1/ARE. state trading. quality and quantity. in the government development plan. the UAE notified the WTO that it does not maintain any state-trading enterprises within the meaning of Article XVII of the GATT. taking into consideration their kind. supply of electricity and water at incentive rates. 2002 . tax-exemption for the profits made by the project as well as the reserve amounts deducted from these profits to be re-invested in the project. exemption of locally made products – when exported – from export duties and taxes. the following privileges and exemptions: assignment of a building-site for the project. semi-products. Source: Federal Law No. for this reason. 1 of 1979 Organizing Industrial Affairs Article 20 The Cabinet. and Al Ain cement plant. In Dubai a similar programme was established on June 12. and included. projects using local raw materials. spare parts and building materials required for project. (b) raw and intermediate materials. Wholly or partially government-owned companies that engage in trade include: Etisalat. for a renewable period of five years starting from the date when production becomes effective. - Article 21 Priority for the privileges and exemptions mentioned in Article 20 is given for: competitive. Sharjah Oil Refining Company. . and the authorities in the Emirates. 14 October 1996.48 Quite a few state-owned companies appear to be engaged in international trade. and protective measures for local products.Trade Policy Review Page 54 independence to support small and medium enterprises in Abu-Dhabi. projects established in areas determined by the Government. in the industrial areas established by the Government. subsidies to exports. Box III. Abu Dhabi National Oil Company (ADNOC). Dubai Petroleum Company. rent on the necessary industrial buildings at optimal conditions. may grant projects that meet certain conditions.1: Provisions of Federal Law No. and privatization 80. 1 of 1979 Organizing Industrial Affairs. (ii) State-owned enterprises. customs-free imports of: (a) machinery. export-oriented or export-substitution projects. In October 1996. in 2010 the government of Ras Al Khaimah has authorised a new business plan aimed at improving opportunities for small and medium-sized enterprises named the Saud bin Saqr Programme for Young Business Leaders grants SMEs47.
LLC. Dubai. Similar to Abu Dhabi’s strategy. Investments include downstream hydrocarbon operations. 82. Some of them (e. Indent.org . The international expansion of Emirates’ based companies was made possible by activities of the followings state owned enterprises: a) Abu-Dhabi Investment Authority (ADIA): Abu-Dhabi Investment Authority (ADIA) has the following enterprise under its control Procific. A Portion of companies engaged in productive activities are owned or controlled by the emirates or by the Federal Government. The IPIC portfolio includes investments in Austria. As a result of large public investments. Egypt. Tamweelview European Holdings SA which is the European Real Estate investment arm of ADIA. Gulab. UAE. the emirate governments have a laissez-faire approach towered the economy. According to a study by Ernest & Young the UAE came top in the number of mergers and acquisition deals in the Middle East region by recording 65 transactions in 200949.swfinstitute. Moreover. generally in partnership with foreign enterprises that bring their technologies. e) The Investment Cooperation of Dubai (which owns Emaar. It was formed in May 2006. In recent years. Dubai developed 49 50 Source: Khaleej Times: UAE Tops the Region in Mergers Source: Sovereign Wealth Fund Institute. Merlion. Japan. An additional investment arm of ADIA is Tannadice Investments LLC which owns 25% stake in Chicago Parking Meters. Monsoon. in electricity and air transport) also benefit from a favourable domestic environment when they are both operators and regulators. Roic. Pakistan. Spain. pipelines. Fujairah. Ganges. with the transfer of the government’s portfolio of investments from The Department of Finance’s Investment Division.United Arab Emirates Page 55 81. www. asset management and infrastructure. and shipping. particularly in finance.g. United Arab Emirates. many productive state-owned companies have grown large enough to compete on world markets. Established in 1984 it is wholly owned by the Government of the Emirate of Abu Dhabi. real estate. Ssgain and Way50. South Korea. In general. is broken into several operating investment companies. petrochemical plants.Fundaq. It also currently invests in private equity. ADIC is a Joint Stock Company that specializes in providing investment and corporate finance in addition to advisory services. Ras al-Khaimah. The ADIC owns about 73% of the National Bank Abu Dhabi c) Emirates Investment Authority: Emirates Investment Authority It is a fund that is mandated to manage the sovereign wealth of the United Arab Emirates federal government. Emirati firms have increasingly made acquisitions abroad. In addition. Other sovereign wealth arms of ADIA include: Flamingo. the sovereign wealth fund. and Portugal. Sharjah and Umm al-Quwain). tourism and the transport sector. real estate hotel. b) The Abu Dhabi Investment Council: The Abu Dhabi Investment Council was splintered off from the Abu Dhabi Investment Authority. Dubai Holding and Borse Dubai): The Investment Cooperation of Dubai (ICD) was established in the emirate of Dubai of the United Arab Emirates . power utilities. Mark 5. It is much smaller in size than ADIA. because of their ownership structure these companies benefit from a financial rating allowing them to borrow at low interest rates. Manly. It is based in Abu Dhabi. the Emirates Investment Authority (EIA) is the first federal sovereign wealth fund for all seven states comprising the United Arab Emirates (Abu Dhabi. d) International Petroleum Investment Company(IPIC) : IPIC is the Abu Dhabi state enterprise which is responsible for all foreign investments in the oil and chemicals sector. Oman. Germany. Established in November 2007 by Emiri decree. Jhelum. One of its significant real estate investments is Sturegallerian AB. Ajman.
DP World. Treasury. Industry. In 2009 the department of Investment Services Department was created . In 2007 ADIA started investing in infrastructure sector and then it moved into new headquarters. Economic Zones World.org Source: Bloomberg: Citigroup to Raise $7_5 Billion From Abu Dhabi State . productive economy. Morgan Guarantee Trust and Indosuez). In 2005 ADIA dedicated allocation to small caps within equities. Mubadala’s sole shareholder is the Government of the Emirate of Abu Dhabi. in the United Arab Emirates. www. In 1967 Abu Dhabi’s “Financial Investments Board” was created under the auspicious of the Department of Finance(Mandate given to UBS. and investment-grade credit within fixed income. Department of the Treasury. Mubadala comprises 9 separate business units with their own specialist areas of focus: Energy. One of Mubadala’s goals is to implement a long-term economic diversification strategy aimed at creating a modern. 51 52 Source: Sovereign Wealth Fund Institute.35 billion in cash.9 percent stake in Citigroup's making it the largest shareholder ahead of Los Angelesbased Capital Group Cos52.5% stake in Carlyle Group for $1. In 2008 ADIA participated in the development of policy principles for international investments with the U. local and Arab investments. In the finance sector Abu-Dhabi Investment Authority have made one of the most extravagant international acquisition. 84. Real Estate & Hospitality . The minority investment includes no associated voting rights and is subject to value-related protective rights.S. Bonds moved from Equities Department to Treasury Department. In 1998 it started investing in inflation-indexed bonds. Real Estate. In 1987 the Equities and Bonds departments became regional (North America. Aerospace. Information & Communication Technology. Drydocks World. In 2007 ADIA purchased a 4. In 1986 it Started investing in alternative strategies. in addition in 2009 Mubadala signed an agreement with General Electric to establish a commercial finance joint venture. Healthcare and Acquisitions h) The Investment and Development Office (IDO) in Ras Al Khaima: IDO was set up on 1 January 2004 with the aim to identify new investment opportunities and facilitate the prospective investors in their goals to set up new businesses in Ras Al Khaimah51. dynamic. Robert Fleming. In 2007 Mubadala Development Company announced an agreement in which it will acquire a 7. f) Dubai World ( Dubai World owns Nakheel . One of its goals is to help better manage Dubai’s state-owned enterprises. The joint venture will combines Mubadala’s regional investment expertise with GE’s global origination excellence. In 1989 ADIA started investing in private equity. In the same year ADIA was appointed co-Chair with IMF of International Working Group of Sovereign Wealth Funds. Services Ventures. then it became a Founding member of the International Forum of Sovereign Wealth Funds (IFSWF) . a regional training centre for next-generation business leaders was also established.swfinstitute. In 1976 the government of Abu-Dhabi decided to separate ADIA from the Government of Abu Dhabi as an independent organization. The deal represents a 10% liquidity discount to the parties’ agreed-upon $20 billion firm valuation. In 1993 ADIA started formal asset allocation process with a set of benchmarks and guidelines.Trade Policy Review Page 56 plans to diversify their reliance on oil exports through creating sovereign wealth vehicles.Infrastructure. Istithmar ) g) Mubadala: Mubadala was established in October 2002 as a Public Joint Stock Company is a wholly owned investment vehicle of the Government of the Emirate of Abu Dhabi. 83. A history of how the company was established will clarify its international portfolio of acquisition s. Mubadala also committed $500 million to an investment fund managed by Carlyle . Europe and Far East). Finance and Administration. subsequently the following department were created: Equities and Bonds.
Dubai International capital bought a 100% share in Travelodge a UK based company. one of the world’s largest real estate companies. It also acquired a 50 % stake in the Mexican resort. Such partnership will allow Borse Dubai to leverage the strong financial technology capabilities of OMX.Ş another joint venture in Turkey.in addition to Hotel Washington in Washington DC. It also made an investment in IHI plc.050 billion56. In the real estate hotel and tourism sector Nakheel Properties have made significant investments in Kerzner International Ltd. 51% shares in Acacia.6 % share in London Stock Exchange Group.4 per cent of OMX .89% share in China Enersave Ltd a Chinese based company. 90% shares of The Braintree Portfolio.10% share in Sun Hung Kai Financial 5% share in Bharat Hotels and A joint venture with Adventity BPO India Pvt. 18% shares in EFG-Hermes. LLC. 51% shares in Al Fajer ReTakaful . 2006 Emmar Properties. the UK-based premier realtor with over 130 years of real estate expertise. Dubai Holding A subsidiary of the Investment Corporation of Dubai has acquired 51. (“NASDAQ OMX”) as a result DFM acquired 100% of NASDAQ Dubai54. St Petersburg.28% shares in Chiranjjeevi Wind Energy.S.87% share in ICICI Bank Limited India and a 2. Borse Dubai purchased 27. In New York. Lisbon. 15% shares in Bank Muscat. 89. In North America In North America it acquired 90% The Chicago City Centre Hotel & Sports Club shares . 88. The transaction cost US$1. In Europe they have acquired 9. 90% shares of The Denver Office Portfolio and 100% shares of Jumeirah Essex House HotelDubai International Capital another subsidiary of Dubai Holding bought a 2.United Arab Emirates Page 57 85. Emaar acquired Hamptons International. On December 2009 . In August. the second largest privately held homebuilder in the U. In the Middle East & North Africa it held 62% shares in TAIB Bank. Ltd and 10. Emaar objective was to draw advantages from Hamptons core 53 54 Source: NASDAQ : Borse Dubai and NASDAQ Source Dubai Financial Market: Dubai Financial Market to Acquire NASDAQ Dubai for US$ 121 Source: AME Info: Nakheel emerges as major global player in hotel investment industry Source : KPMG: Emaar Properties announces the acquisition of John Laing Homes Million 55 56 .30% shares in Bank Islam . 86. and a joint venture with Qater Investment Authority called “Qatar Dubai Investment” and Dubai Group Sigorta A. (“Borse Dubai”) and The NASDAQ OMX Group Inc. Also. 87. in exchange for a 50% interest in the company's iconic Fontainebleau Miami Beach resort55. Tripoli. (“NASDAQ”) announced a series of transactions that created a global financial marketplace53.07% in Marfin Investment Group Holdings SA a Greek based company. creating one of the world’s leading real estate developers in residential homebuilding.the Nordic and Baltic exchange operator based in Sweden. In Asia they have acquired 6% shares in Vietnam Asset management a 51% in KOP Group a 40% shares in ACR Retakaful Holding. Borse Dubai Limited (“Borse Dubai”) and The NASDAQ Stock Market Inc. 10% shares in Global Investment House.-the developer and operator of Atlantis Resorts.41% shares in Oman National Investment Holding Co. PJSC (“DFM”) announced that it has made an offer to NASDAQ Dubai a joint venture between Borse Dubai Ltd. both companies are incorporated in India. One&Only Palmilla in Los Cabos and a 33 per cent stake in the Metropole Hotel in central London. Dubai Financial Market. 90. acquire John Laing Homes. Nakheel Hotels has majority ownership of the Mandarin Oriental Hotel and the W Hotel Union Square . Budapest and Prague. On June 1. Dubai Group the investment arm of Dubai Holding made several international acquisitions. In 2010 the London Exchange Group declared that Borse Dubai Limited has a 20. 2006. It also made an investments of $375m with Fontainebleau Resorts.87% in ICICI Bank Limited..4% in Och Ziff Capital Management a US based company. the owner and operator of the five-star Corinthia Hotel brand including hotels in Malta.
A. as well as in Australia. In Turkey.In 2006 The Emirate of Ras Al Khaimah announced the creation of RAK Airways. “Emmar Jordan” was established to cater for the needs of the Jordanian market. this was followed by the signing of a joint venture in March 2008. Mivida and the Cairo Gate. Al Khobar Lakes and Emaar Residences at Fairmont Makkah. Emmar have expanded internationally by opening the following companies . Dubai Ports International (now DP World). “Emmar Morocco” developed 5 large projects through strategic partnerships with the Moroccan government and Onapar. has signed a deal in 2008 with the Italian aerospace company Finmeccanica to build components for civilian aircraft.E “was founded in Egypt with total investment reaching US$7. Dubai Ports International announced the acquisition of CSX World Terminals for close to US$1. Emaar. “Emaar Canada” launched its projects. made a £3 billion bid in October 2005 for P&O. service support and product sales.C is a Saudi joint stock company managed by Emaar Properties PJSC and a number of high profile investors. British Columbia. thus gaining a strong presence in Asia for the first time. The agreement will establish an aviation military Maintenance Repair and Overhaul (MRO) Centre that was followed by signing a multilateral agreement with GE Aviation and its affiliates to provide technical support and services to Mubadala’s affiliate MRO companies SR Technics and ADAT. In May 2007. “Emaar Pakistan” developed two projects Canyon Views in Islamabad and Crescent Bay in Karachi. China and China. the state-owned Asset Management Company in Indonesia . Emaar Indonesia signed a Memorandum of Understanding (MoU) with Perusahaan Pengelola Aset (PPA). the most prominent projects are. a joint venture between Emaar Properties and Al Oula Real Estate Development Company (Saudi-based real estate company) developed several high value projects in the Kingdom of Saudi Arabia like Jeddah Gate.C” was established. in the prestigious community of South Surrey. On July 4th 2006 Emaar Properties opened a fully fledged company “Emaar China” in Shanghai. Uptown Cairo. the offshore investment and property development company to develop “The Eighth Gate” a mixed used real estate project in Yafour the project valued US$500 million . owned by the Dubai Government. a state-owned firm under the Ministry of State-Owned Enterprises..E. In February 2009 Mubadala Development Company signed a Heads Agreement that will form a joint venture with Sikorsky Aerospace Services. In 2009 “Emaar Lebanon” was founded.Trade Policy Review Page 58 competencies in operations. 91. for developing a US$600 million mixed-use project on Lombok Island project. “Emaar Turkey” opened its Istanbul office in June 2006 several projects were lunched most notably the Tuscan Valley and the New Istanbul Development. DP Worlde has also made an offer in 2007 to buy Auckland International Airport in New Zealand for $3 billion58. 92. including technical and corporate training support. between Emaar and Bali Tourism Development Corporation (BTDC). in Syria. In February 2005. Dubai International capital acquired a 2% share in DaimlerChrysler AG . comprehensive material support. the Dominican Republic. the UAE's fourth national carrier. Britain's biggest ports and ferries group. In September 2006 The Economic City “Emaar. including in Hong Kong. “Emaar Middle East”.97 billion in the Egyptian market.in Asia in 2005 Emaar entered the Indian real estate market by creating a joint venture with MGF Developments Limited of India . “ Emaar Misr for Development S. On 2007 it developed the Dead Sea Golf and Beach Resort. RAK Airways is a private joint stock company incorporated in the RAK Free Zone at Jazirat Al Hamra with 57 58 Emaar International Emaar International Company Source: Middle East Forum: Sovereign Wealth Funds Investment Vehicles For GCC 59 Mubadala: Mubadala Sign Mult-faceted Aviation Agreement .5 billion. Germany. Marassi. and the Bolivarian Republic of Venezuela. “Emaar Syria” entered into a joint venture with IGO. the world's sixth-largest port operator. Wills Creek. in the United States of America “Emaar USA “developed Beverally West Residence in Bervelly West LA California57.E. the new formed company was called “Emaar MGF Land Limited”. In the aerospace transportation industry Mubadala Development. In the transport sector . In Morocco. and the granting of licenses to service certain GE59.
In the context of the review of its IP legislation in 2001. beginning 1 January 2000. 93. Various model laws are being considered and the government is currently examining a draft submitted by the GCC Secretariat for a unified GCC Competition Law. A draft UAE competition Law is under consideration by the Ministerial Cabinet of which the main objective is to promote competition by controlling and eliminating all practices which have as their object or effect the prevention. The only significant steps towards privatization since WTO Membership in 1996 have been in Abu Dhabi's electricity and gas subsectors (Chapter IV(3)). In principle. the UAE market should be highly competitive given the low import duties and the absence of non-tariff barriers. However.. frozen and canned vegetables. However.com World Bank (2002). postal. meat and meat products. (iv) Intellectual property rights (a) Overview 82. 61 60 . in order to contain the negative effects of cartels and other anti-competitive practices.United Arab Emirates Page 59 an authorized capital of AED 1. cheese. Japan. The UAE initially availed itself of its right under Articles 65.2 and 65. mainly food products. in consultation with the MF and the chambers of commerce. the UAE provided responses to questions posed by Canada. the MOE monitors the prices of 15 goods. 538/1). a number of Source: www. The UAE’s next WTO TPR should update or reflect the development of competition in the UAE. restriction or distortion of competition within the UAE market. 95. the date of application of the provision on chemical and pharmaceutical products patents.gulfnews. vermicelli). including telecommunications. Some form of rent control are in place in some emirates especially in Dubai and Abu-Dhabi. rice. rice. flour. In addition. children's foodstuff and milk . Anti-competitive practices are dealt with on a case-by-case basis by the MOE.5 billion in 2009 the airline has suspended its operations and announced that the airline will re-launch before the end 201060. a lack of competition results from the market-segmenting effects of exclusive agency laws (section (2)(i) above). 96. cooking oil. a draft GCC competition Law is under consideration by the GCC Member States the objective of which is to promote competition by controlling or eliminating all practices which have as their object or effect the prevention. The emirate of Abu Dhabi has also initiated plans for the sale of certain companies in the manufacturing sector (Chapter IV(4)). and diapers (Cabinet Decision No. The UAE does not have competition legislation. In principle there are no a priori price controls. Electricity. Switzerland. restriction or distortion of competition within the GCC market. Also. 62 The products include dry and condensed milk. 2 February 2004.62 Recently the UAE has imposed however price controls on the rental market and has set out in 2008 maximum prices for food products such as eggs. and medical services. and the United States. and the government discourages such practice. the date of application of the Agreement. tea. fish products. coffee. (iii) Competition policy and price controls 94. chicken and bottled water The federal and emirate governments have a role in the price determination or approval of a number of services. beginning in January 1996. Gasoline prices are fixed by the Government of the UAE and are the same throughout the country. and for a period of five years. 63 WTO document IP/Q/ARE/1. pasta (macaroni. sugar. chickens.4 of the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS Agreement) to delay for a period of four years.61 In order to address these issues the UAE government plans to soon introduce a Competition Law.63 Subsequently. and gas prices are set by state-owned companies at the emirate level. These exclusive rights also constitute a barrier to full GCC integration. water.
since September 1974. inventions dealing with the chemistry of drugs or pharmaceutical compounds. 8 of 2002 (issued on 24 July 2002). In accordance with Article 63.Trade Policy Review Page 60 amendments were made. and three laws entered into effect in 2002: Federal Law No. and the WIPO Performances and Phonograms Treaty (WPPT). therapeutic and surgical methods for the treatment of humans or animals. The law enables the patent holder to prevent others from manufacturing. 97. whether in relation to a new industrial product. importing. The UAE is a member of the following treaties: the WIPO Convention. with the exception of microbiological processes and products. since September 1996. 3 March 2004. to 20 years (nonrenewable) from the date of filling the application. pertaining to the industrial regulation and protection of patents. They are now covered by Article 4 and 70 of the Law No. 64 WTO document IP/N/1/ARE/C/1. since March 1999. 102. 101.2 of the TRIPS Agreement. industrial drawings. Federal Law No. handicrafts. using or otherwise keeping for the purpose of selling or using the product. hunting. or biological processes for the production of plants or animals. scientific principles and discoveries. 44 provides for the protection of a patent granted for any invention that is the result of an innovative idea. 7 of 2002 (issued on 1 July 2002) concerning copyright and neighbouring rights (subsequently amended by Federal Law No. 98. The supervisory ministry for IP matters is the Ministry of Economy . (b) Patents 99. the UAE notified the English version of Federal Law No. since July 2004. since July 2004.64 The UAE undertook to communicate the two other laws to the WTO Secretariat as soon as their translation would be finalized The authorities have notified the contact point for IPRs as the Ministry of Economy and Planning. the PCT (Patent Cooperation Treaty). in part to ensure conformity with the provisions of the TRIPS Agreement. 31 of 2006). and designs (subsequently amended by Federal Law No. Micro-organisms are patentable. . and inventions related to national defence or that would be contrary to public order and morality. offering for sale. amending Federal Law No. since January 2005. The 2002 amendment also extended the coverage of the protection of innovations to all fields of technology. 100. For example. To conform with Article 28 of the TRIPS Agreement. the amendment specified the rights of the patent holder in preventing others from using it. The law was amended in November 2002. 7 of 2002 concerning copyrights and neighbouring rights. the WIPO Copyright Treaty (WCT). 31 of 2006. the Paris Convention (industrial property). fishing. the Rome Convention. since June 2005. an industrial process or method or to the application of a known industrial process or method. and Federal Law No. or using the method. diagnostic.Since the entry into force of the TRIPS Agreement. covering both product and method of processing. 17 of 2002 (issued on 17 November 2002). The 1992 Patent and Design Law No. it has opened a register in which patent applications for inventions concerning pharmaceutical and agricultural chemical products can be filed. Exceptions (from patentability) exist for plant and animal research. the term of patent protection was increased from 15 years renewable for five additional years. selling. including agriculture. the Berne Convention (literary and artistic works). as well as inventions in foodstuffs were excluded from coverage. 32 of 2006). or for an innovative improvement on a patented invention. and services. Previously. 37 of 1992 in respect of trademarks.
after the lapse of at least three years after granting the patent. No compulsory licence has so far been granted. The Patent and Designs Law provides for non-exclusive compulsory licensing. (e) Copyright and related rights 107. Industrial designs are protected by the Patent and Design Law (Article 51) and the related 1993 Decree No. 40 is the main legislation protecting copyright. under the rental right. or to indicate that the products. (c) Industrial designs 104. A unified GCC 65 66 The 2002 legislation is contained in WTO document IP/N/1/ARE/C/1. According to the federal authorities. or processing of such a product for the purpose of offering it for sale or selling it. (f) Trade marks 108. the law now provides for clear provisions to deal with the situation foreseen in the derogation from Article 36 as specified in Article 37 of the TRIPS Agreement. The 2002 amendment has brought under its scope computer program applications.66 Sound constitutes an element of the trade mark if it accompanies the trade mark. through the extension of the works and types of expression covered as well as the nature of the protection. 106. Protection is granted for ten years. An applicant must prove that efforts have been made to obtain a licence from the patent owner on reasonable conditions. Article 2 of the law considers as trademarks.United Arab Emirates Page 61 103. 11 (Articles 45-49). 31 of 2006 stipulates that the importation of the product is not sufficient ground for granting a compulsory licence. . literary works. The licence should be for the purpose of fulfilling the demands of the local market. 37 is the main legislation protecting trademarks. 40. except Article 6 bis). The supervisory ministry for issues related to copyright is the Ministry of Economy. The provisions on industrial designs under the Patent and Industrial Design Law also apply to integrated circuits (Articles 43-51). signs that take a particular form if they are used to distinguish goods. among others. Article 24 of the Law No. as well as compilations of data. (d) Layout-designs (topographies) of integrated circuits 105. There is no provision on parallel imports of patented products and there has been no jurisprudence in the UAE in this regard. renewable once for five years. products or services.65 The amendment provides more detailed measures to enforce copyright in line with the provisions of the TRIPS Agreement. The 1992 Copyrights and Neighboring Rights Law No. The law also contains provisions on well-known marks. including computer programs and cinematography work. 3 March 2004. Article 1 of the Law defines a sign as a drawing that can be seen and that constitutes one element. In particular. whereby a person has no knowledge or reasonable grounds to know when acquiring an integrated circuit or an article incorporating such an integrated circuit that it contains an unlawful topography. Copyright protection is for 50 years. goods or services are the properties of the owner of the mark. Protection is for ten years. the amendment is designed to meet the obligations arising from Article 9 of the TRIPS Agreement (Berne Convention. Articles 1-21. A special register is kept by the Ministry of Economy All industrial designs must be registered. The holder is accorded exclusive rights over imports of any product related to the industrial design. It was amended in 2002. Computer programs are protected by the 1992 Copyrights and Neighboring Rights Law No.. The provisions on industrial designs under the Patent and Industrial Design Law also apply to integrated circuits (Articles 43-51). The 1992 Trademarks Law No. The amendment introduces the exclusive right to exploit.
52 of 2007. 4 of 1983 related to pharmaceutical institutions and the pharmacy profession and its by-laws provide for the establishment of a committee in charge of pharmaceutical registration and pricing. 110. According to the authorities. the term of protection of undisclosed information in the pharmaceutical subsector is. Customs is entitled to take measures at the border to prevent any violation of intellectual property rights. and the Trademarks Law provide for measures aimed at preventing violation of intellectual property rights. in practice. However. (g) Geographical indications 111. The Law was expected to be implemented six months after the adoption of its executive regulation. including preventive seizure. geographical indications can be considered as trademarks if they are used to distinguish goods or services with regard to their production. imitation. In addition. grant to any person a licence to use the trade mark (Article 30). The Trademarks Law allows the court to delete the registration of a trade mark if it is determined that the mark has not been used effectively during five years. by a written notarized contract. 114. five years. (i) Enforcement 113. selection or commercialization. and compensation. Law No. Trademarks registration is renewable indefinitely. 109. in accordance with the above-mentioned laws as well as under Customs regulations. According to the authorities. Geographical indications related to alcoholic beverages cannot be registered in the UAE. the proposed modifications are still under consideration by the technical Committee. As regards pharmaceutical products specifically.Trade Policy Review Page 62 Law on trademarks has been adopted on the 27th session of the High Council of the GCC held in Riyadh in 2006. the owner of a trade mark may. The Ministry of Economy is the supervisory ministry for issues related to trade marks. 2008) the Law has been re-sent to the technical Committee for further discussion on the new proposals made by Oman and Bahrain. unless the owner justifies the non-use of the trade mark. as a result. However. Punitive Law No. confiscation. the Patent and Design Law. The Copyright Law. the 2002 amendment of this law added that the non-use of the trade mark should not be a reason for the deletion. Unlimited fines of at least . as well as elimination of the effects of the illegal acts. The licence has no effect on third parties unless it has been recorded in the Register and published as prescribed in the Executive Regulations. All confidential information submitted to it must be kept confidential. These measures can be taken upon demand of the right holder based on a judicial order. provided the owner has undertaken the necessary steps to keep it confidential. (h) Protection of undisclosed information 112. removal or destruction of products and equipment. be invoked by the owner of the trade mark to prevent parallel imports. the GCC Law has been approved by Federal Decree No. misleading practices. the Trademark Law could. The Trademark Law does not contain provisions with respect to parallel imports or to national or international exhaustion of rights. In the UAE. Under the Trademark Law. The Trademarks Law does not contain a definition of geographical indications as such. a trade mark that misleads consumers about the origin of a product cannot be registered. Articles 37-42 of the Trademarks Law define penalties with regard to counterfeit. no such case has not so far been filed in the UAE. According to the authorities. 3 of 1987 specifies imprisonment of up to three years for IPR violation. and fraudulent use of registered trademarks. However. pursuant to the decision of the GCC Committee on Commercial Cooperation (Doha. To date. if it is due to reasons not related to the ownership of the trade mark.
Articles 60-62 of the Patent Law also lay down criminal sanctions and monetary penalties in the range of Dh 5.000-500. as well as unlimited prison sentences (up to three years under the Punitive Law). . and fines of Dh 10. Imprisonment is for at least three months. The Copyrights Law lays down similar procedures.000 can be levied.000.000. with minimum detention of two months (up to three years under the Punitive Law).000100.United Arab Emirates Page 63 Dh 5. and up to three years under the Punitive Law.
such as electronics and machinery. remains state controlled. 52% in eggs. 6. which have modern production and trade infrastructure.1). Farming generally takes place on small units. cows. The entire oil and gas sector. tourism in the UAE is now among the fastest growing subsectors. Agriculture. forestry. including in terms of water depletion. In manufacturing. and milk. The UAE still depends on crude oil and gas exports for a significant share of its national income. several UAE transport companies now also compete effectively on world markets.ae/foodsecurity/foodsecurityar.moew.4 billion in 2008it reached 1. the UAE is one of the world's top breeding centres for Arabian horses. 55% in milk and dairy products. As a result. http://uaeagricent. airlines. including farming.7% and employed about 4. Some have emerged as world leaders in their markets. In parallel. The emirate governments have invested large amounts of oil resources over the past 30 years to diversify their economies.aspx . Soon after independence. eggs.1 The UAE is 100% self-sufficient in dates and fish. sheep. with foreign participation generally in the form of minority partnerships or through concessions. the UAE leadership set as a strategic policy to become a major transport hub between Europe and South-East Asia. camels. at high cost. these resources were initially invested in state-owned companies operating in oil and gas-intensive industries.000 tonnes. and fishing. The sector also produces livestock (goats. 5. Source: MOEW.2% of the workforce3. tourism has been targeted as a major source of future growth in the UAE. AGRICULTURE AND RELATED ACTIVITIES 2.Trade Policy Review Page 64 IV. In addition. 39% in vegetables. Most agricultural activities take place in the emirate of Abu Dhabi. The annual production of fish is estimated at 95. and certain agriindustries benefit from considerable state assistance. The manufacturing sector has recently diversified towards more capital-intensive. (1) TRADE POLICIES BY SECTOR INTRODUCTION 1. The instruments to achieve this aim have included vast amounts of public funds invested in developing port and airport infrastructure. The contribution of agriculture sector to the GDP was US$2. high-technology products. and shipping companies and agencies. as well as electricity and water utilities. green fodder. and fruit (mainly citrus and mangoes) (Table IV. whereas the fisheries subsector suffers from the consequences of past over-fishing. and horses) as well as meat and poultry. reflecting the country's comparative advantages. substantial 1 2 Source: Ministry of Agriculture and Fisheries. Nonetheless. exported in large part from the free zones. between 15% to 20% in meat & poultry2. production of agricultural raw materials remains limited and the agri-industries rely largely on imports for their inputs. 4. Remarkable advances have been made in the agriculture sector. livestock. (2) (i) Main features The UAE's main agricultural products include dates. 3.gov. Joint-ventures and partnerships with foreign enterprises have allowed manufacturing companies to benefit from the most up-to-date technologies. vegetables.
1. flour. not elsewhere specified or included Products of animal origin. gums. roots and the like.084 9 1 37 21 0 1 2 13 1 3 44 1 2 0 2008 -7. molluscs or other aquatic invertebrates Sugars and sugar confectionery Cocoa and cocoa preparations Preparations of cereals. tea. malt. miscellaneous grains. not elsewhere specified or included Products of animal origin. wheat gluten Oil seeds and oleaginous fruits.763 161 1. nuts or other parts of plants Miscellaneous edible preparations Beverages. of fish or of crustaceans. prepared animal fodder Tobacco and manufactured tobacco substitutes Total export Live animals Meat and edible meat offal Fish and crustaceans. pastrycooks' products Prepsrations of vegetables. wheat gluten Oil seeds and oleaginous fruits.1 Main agricultural products.536 20 1 29 160 0 4 2 19 5 0 50 2 0 0 -3. birds' eggs. mate and spices Cereals Products of the milling industry. not elsewhere specified or included Live trees and other plants. straw and fodder Lac. resins and other vegetable saps and extracts Vegetable plaiting materials. animal or vegetable waxes Preparations of meat. miscellaneous grains. spirits and vinegar Residues and waste from the food industries.989 7. peel of citrus fruit or melons Coffee.860 6. straw and fodder Lac. resins and other vegetable saps and extracts Vegetable plaiting materials. mate and spices Cereals Products of the milling industry. natural honey. starches. roots and the like. fruit. industrial or medicinal plants. molluscs and other aquatic invertebrates Dairy produce. tea. peel of citrus fruit or melons Coffee. cut flowers and ornamental foliage Edible vegetables and certain roots and tubers Edible fruit and nuts.207 144 972 256 890 3 36 745 1. vegetable products not elsewhere specified or included Animal or vegetable fats and oils and their cleavage products.967 88 564 19 5 787 163 328 228 370 367 495 327 73 209 1.084 248 894 2 44 726 955 659 1.065 548 1. seeds and fruit. natural honey.1). gums. bulbs.355 14 1 34 30 0 2 3 24 3 5 53 3 0 0 2009 -6. cut flowers and ornamental foliage Edible vegetables and certain roots and tubers Edible fruit and nuts. vegetable products not elsewhere specified or included 3 2007 -4.374 134 525 182 527 3 31 455 633 397 611 70 244 14 9 313 78 687 156 196 224 359 191 41 296 1.United Arab Emirates Page 65 processing activities take place in the free zones. malt. industrial or medicinal plants. inulin. starch or milk. molluscs and other aquatic invertebrates Dairy produce. seeds and fruit. particularly Dubai's Jebel Ali Free Zone (Chart IV.580 86 1. inulin.005 16 5 442 148 225 228 429 309 517 295 70 194 1.393 10.031 7 3 32 61 0 1 1 13 2 0 51 13 0 0 Source: National Bureau of Statistics . Table IV. prepared edible fats. birds' eggs. not elsewhere specified or included Live trees and other plants.125 10. 2006-2009 (US$ million) 2006 Trade balance of agricultural products Total imports Live animals Meat and edible meat offal Fish and crustaceans. starches.748 105 736 221 630 3 32 557 778 475 955 43 410 14 12 391 113 532 183 245 307 419 241 51 295 1. bulbs. edible products of animal origin. edible products of animal origin.
of fish or of crustaceans. starches. starch or milk. spirits and vinegar Residues and waste from the food industries. fruit. whole. cut flowers and ornamental foliage Edible vegetables and certain roots and tubers Edible fruit and nuts.58 8 5.9 7. straw and fodder Lac. miscellaneous grains.Trade Policy Review Page 66 Animal or vegetable fats and oils and their cleavage products.55 10 4.e. mate and spices Cereals Products of the milling industry. edible products of animal origin. seeds and fruit. roots and the like. total Camel meat Cabbages Cucumbers and gherkins Fruit juice n. prepared animal fodder Tobacco and manufactured tobacco substitutes Total re-export Live animals Meat and edible meat offal Fish and crustaceans. flour.483 15 32 29 75 1 1 79 257 146 129 7 44 6 2 59 21 88 31 29 35 89 24 6 278 127 12 357 98 73 91 39 70 72 11 1. gums. of fish or of crustaceans. molluscs or other aquatic invertebrates Sugars and sugar confectionery Cocoa and cocoa preparations Preparations of cereals. starch or milk. wheat gluten Oil seeds and oleaginous fruits. spirits and vinegar Residues and waste from the food industries. prepared animal fodder Tobacco and manufactured tobacco substitutes Production Crops and livestock. fresh 129 15 317 109 66 64 46 66 26 9 1.8 21 .675 7 47 25 69 1 2 84 304 159 190 6 70 6 3 44 24 75 50 38 54 91 29 9 288 203 11 345 110 74 167 50 76 59 87 2. not elsewhere specified or included Products of animal origin.283 3 44 19 71 1 1 126 330 183 550 81 89 6 3 60 29 80 46 38 54 107 34 12 318 82 6 473 137 79 155 65 80 52 113 2. tea.s.2 15 17 758 59 108 38 50 12 507 13 0. nuts or other parts of plants Miscellaneous edible preparations Beverages. molluscs and other aquatic invertebrates Dairy produce. molluscs or other aquatic invertebrates Sugars and sugar confectionery Cocoa and cocoa preparations Preparations of cereals. industrial or medicinal plants. animal or vegetable waxes Preparations of meat. prepared edible fats. peel of citrus fruit or melons Coffee.278 6 52 15 84 0 1 132 352 113 538 17 99 7 4 34 19 120 42 36 48 137 38 10 373 758 74 102 36 24 13 352 12 0. primary ('000 tonnes) Dates Tomatoes Camel's milk Goat's milk Poultry meat Eggplants Hen's eggs (million egg) Citrus fruit. vegetable products not elsewhere specified or included Animal or vegetable fats and oils and their cleavage products. fruit. pastrycooks' products Prepsrations of vegetables. bulbs. flour. birds' eggs. nuts or other parts of plants Miscellaneous edible preparations Beverages. inulin. malt. animal or vegetable waxes Preparations of meat. prepared edible fats. pastrycooks' products Prepsrations of vegetables. Sheep's milk Cow's milk. resins and other vegetable saps and extracts Vegetable plaiting materials.0 16 18 758 127 12 718 16 15 22 3. natural honey. not elsewhere specified or included Live trees and other plants.4 7.
in shell Bananas Indigenous Cattle Meat Cow milk. green Watermelons Source: Minister of Foreign Trade. fresh Tomatoes Pumpkins.cantaloupes) Lettuce and chicory Cucumbers and gherkins 72 80 81 81 87 88 91 95 96 96 104 113 123 129 149 155 166 Vegetables fresh nes Indigenous Sheep Meat Chillies and peppers. green Citrus fruit. unmanufactured Carrots and turnips Fruit Fresh Nes Hen eggs. whole. shallots). UAE FAO online information http://faostat. Ministry of Environment & Water. UAE. Table IV. fresh Onions (inc.2 United Arab Emirates rank in the world. green Watermelons Grapes Cabbages and other brassicas Indigenous Chicken Meat Tobacco. whole.org/site/339/default.United Arab Emirates Page 67 Lemons and limes Goat meat Cauliflower Live animals ('000) Goats Sheep Camels Cattle 5 36 8 1626 1114 359 59 6 38 5 1708 1172 378 62 5 8 1794 1234 398 65 Source: Ministry of Foreign Trade . guavas Other melons (inc. with shell Okra Eggplants (aubergines) Goat milk. by commodity in 2007 Rank 4 7 7 25 30 30 32 34 40 41 43 44 46 50 54 55 58 59 72 72 Commodity Rank Commodity Dates Indigenous Camel Meat Camel milk.1. squash and gourds Mangoes. nes Almonds. fresh Potatoes Indigenous Goat Meat 80 81 81 87 Indigenous Sheep Meat Chillies and peppers. whole. fresh Figs Spinach Cauliflowers and broccoli Lemons and limes Sheep milk. UAE.aspx . green Beans. Minister of Environment & Water. green Beans.fao. mangosteens. National Bureau of Statistics. whole.
chicken. sugar. Pakistan.000 6.3 billion.126 million m³/year. The remainder was used for industrial and domestic purposes. while sea water intrusion is increasing in the coastal areas.6 The over-extraction of groundwater resources has led to a lowering of the water table by more than one metre on average per year since 1979. products of the milling industry. .gov.000 3.food trade. Other Arab Countries. This figure does not include the possible annual recharge of groundwater from neighbouring countries (for example from the Eastern Arabia Aquifer).1 Agri. The main exports are cigarettes. and oil.moft. "Aquastat. Ministry of Economy(2004). 2009 Us$ million 7. ANIMAL OR VEGETABLE WAXES [ 4] PREPARED FOODSTUFFS.g.7 The first desalination plant was installed in Abu Dhabi in 1976.5 Agricultural water withdrawal for crops was estimated at about 1.org/ag/agl/aglw/aquastat/countries/untd_arab_em/index. Available at: http://www.stm [22 September 2005].914 million m³/year (all groundwater). According to the Ministry of Environment & Water (MOEW) and the Ministry of Economy4.ae/ 7. race horses. EU countries. and hot and arid climatic conditions negatively affect UAE's agriculture.1 billion.PREPARED EDIBLE FATS. poor soil quality. In 2009.1).000 5. while landscape irrigation used about 200 million m³ (all treated wastewater).5 billion were exported. and US$1. Main imports include cigarettes. horses (reflecting the important breeding and horse racing activity). and vegetables. Iran. by HS section. sugar confectionery. Re-exports were valued at US$2.000 1. 7 FAO online information. Water scarcity and high salt content. TOBACCO AND MANUFACTURED TOBACCO SUBSTITUTES Re ‐ Export Export Import Source: Ministry of Foreign Trade online information. ANIMAL PRODUCTS [ 2] VEGETABLE PRODUCTS [ 3] ANIMAL OR VEGETABLE FATS AND OILS AND THEIR CLEAVAGE PRODUCTS. with depletion estimated at 2.000 2. miscellaneous edible preparations.000 0 [ 1] LIVE ANIMALS. animal or vegetable fats and oils. available at: http://www. 5 4 . BEVERAGES.000 4. 6 Ministry of Presidential Affairs (2004). total water withdrawal massively exceeds groundwater recharged from rain. There are also sizeable imports of raw agricultural products (e. tobacco leaves) for re-exportation after their processing in the free zones (Chart IV. total domestic imports of agri-food products were estimated at US$10. and the United States. There are now many desalination 8.Trade Policy Review Page 68 Chart IV.fao. as no figures are available. SPIRITS AND VINEGAR. The main markets for the UAE's exports of agri-food products are other GCC members. Country Profiles: United Arab Emirates".
and woodlands. and there were over 42. the Government gives land to UAE citizens.028 farms in the UAE. groundwater withdrawal is now essentially for agricultural purposes. Another 4% of the territory is covered by forests. quarantine. According to the authorities. the construction of dams for flood control and groundwater recharge. forestry. In Abu Dhabi. It is also responsible for formulating the rules and regulations on matters relating to water. remarkable advances have been made in agriculture since 1975. and all domestic and industrial needs are met by desalination plants. and Sharjah8. 12. this is granted mainly by the authorities of Abu Dhabi. producing mainly vegetables. at a cost of between US$10 billion and US$20 billion over the next decade 9.United Arab Emirates Page 69 plants all over the UAE. hold up to 49% of the capital of agri-industrial companies. while Dubai will increase current production by 600 million gallons a day. and around 263.1% of the UAE's total territory). and forestation are also under its purview.000 ha in 1994. according to the authorities. and public gardens. when financial resources from oil exports started to flow towards the development of agricultural production. The operation of laboratories. seeds. of which 17 main plants located in Abu Dhabi. Apart from the Government's experimental farms. total desalination capacity is about 710 million m3/year. pest and disease control. veterinary services. inspection services. and the operation and maintenance of the hydro-meteorological network. Vegetable production in the other (mostly northern) emirates is. The Government of Abu Dhabi buys part of the production (mainly vegetables and dates) at set farm-gate prices. and irrigation. including the registration of the water well drilling companies and licences for drilling. pesticides. The cultivated area increased from 15. which accounts for 87% of the country's land mass. up from 21. Foreign companies may. except for dates which purchased by Al Foah Palm Cultivation Developing Company from farmers in the northern emirates. Such land can only be owned by UAE nationals. all agricultural land is owned and managed privately. the MOEW and other agencies subsidize the use of bio-fertilizers and bio-pesticides in order to limit environmental damage. have been planted in the country. most agricultural production requires substantial government support. According to the authorities. and fisheries policy. and resells at set prices through the Abu Dhabi Municipality outlets. and provides fertilizers. Given the UAE's climate. carried out under market principles. 8 Environmental Research and Wildlife Development Agency (2002). as well as promoting irrigated agriculture and the management of groundwater resources. . dates. forestation schemes. It is also in charge of coordinating agricultural. Dubai. 11. The MOEW supports agricultural production in the six other emirates. prepares the land for farming. 13. the General Water Resources Authority is responsible for water management and coordination between the other agencies. and fruit. as in other sectors of the UAE economy. Main policy instruments (ii) 10. In this respect the Ministry of Environment and Water provided farmers with a total of 82 thousand tons of organic fertilizers and about 330 thousand date palm ste offs during the last ten years.923 ha in 2008 (3. At the federal level. Abu Dhabi plans to double its current daily production of 630 million gallons at a cost of US$20 billion. nurseries. Despite the water constraint.000 hectares (ha) in 1977 to 71.000 in 1994. as thousands of hectares of palm trees.
No irrigation water charges are levied by the federal or emirate governments (except on treated water). In addition.579 2. little assistance is extended for poultry and dairy. assistance to farmers includes substantial investment and production subsidies: reclamation and distribution of agricultural land. Fodder farms are supported with free land. produced privately using intensive integrated production systems. seeds. Agricultural research focuses on four main areas: increasing the production of palm trees. It is estimated that over half of total expenditure on electricity and water is used for irrigation purposes. Another avenue of research concerns the production of alternate vegetable products in greenhouses. large-scale planting of palm trees to create suitable shaded areas for farming. fodder. The MOEW is also financing research on the types of fodder that can withstand the country's climatic conditions and survive on little water. The provision of fresh water entails a number of infrastructural services. and wild plants.803 1. long-term research on agricultural diseases. According to the authorities. 2000-08 (In millions of UAE dirhams) 2004 AGRICULTURE ELECTRICITY AND WATER INDUSTRY AND COMMERCE TRANSPORT AND COMMUNICATIONS 1. but farmers pay for the drilling of boreholes on their farms and the pumping of groundwater. dams. In general. Table IV. 15.002 916 2. sales of fodder in Abu Dhabi are organized by the Abu Dhabi Municipality. provision of necessary equipment and training.715 2007 289 1. Some fodder is imported. 095 2.115 4. provision of. and marketing support. Research is also encouraged on biological control methods as an alternative to the use of insecticides to combat agricultural diseases. 17.147 1. and free irrigation. which aims to develop and promote the use of sustainable agricultural systems that use salt water to grow crops.357 2006 331 2. sizeable expenditure was allocated to electricity and water (US$520 million). It also encourages them to grow local fodder crops.292 . provision of fresh water and seeds. They pay half of the maintenance costs of the irrigation network. 18.310 2008 Prel. so as to optimize productivity. and fruit such as citrus and mangoes. an applied research and development centre located in Dubai. and research on plants grown in greenhouses. 270 1.428 288 2. and guidance on.Trade Policy Review Page 70 14. including: water supply facilities.340 2005 943 3. and irrigation facilities. dates. The Federal Government has invested sizeable resources in agricultural research and guidance to farmers. drainage. hydroponics and drying dates. Support for livestock production consists of free veterinary treatment and vaccination. pastoral. Studies are under way on combating salinity and the capacity of different types of fodder plants to withstand high salt content in the soil. the timely use of fertilizers.902 239 1. 16. the Government of Abu Dhabi allocated some US$80 million dollars to agriculture. The UAE also hosts the International Centre for Biosaline Agriculture. The Ministry will also set up in 2009 about 585 plastic houses and 85 glass houses for drying dates for farmers. but it is increasingly produced locally. The Ministry of protected Environment and Water is also encouraging farmers to apply modern technologies in agriculture such as protected agriculture.2 Abu Dhabi development expenditures. fertilizers. In 2007.
20.6725. in June 2005. In April 2002.470 214 11 11.769.735 1.pdf [April 2009]. The UAE lifted its ban on olive oil from the European Union. 4 September 2003.735 2001 Source: WTO document G/AG/N/ARE/5.617 953. Table IV.3 Domestic agricultural support measures.321 216 162 333 233 194 163 5. 11 WTO documents G/SPS/R/30. No domestic support had been reported for 1996 to 1999 or 2002 to 2010 9. and their products must meet all sanitary and phytosanitary requirements set at federal level (Chapter III(2)(vii)(b)). Appendix. and 20 tariff lines covering all tobacco products with an alternate tariff (Chapter III(2)(iv)(a)). animals.2 definition) is low at 3.3% (4.085 245.257 Source: IMF (2009). Supporting Table DS:1. and G/AG/N/ARE/4. This is still the case according to the WTO website. 25 April 2000. with two exceptions: alcoholic beverages (50%). 2000 and 2001 Measure type Name and description of measure Value (US$) 2000 Green box measures General services Agricultural research Sanitary quarantine and veterinary services Development programmes (special and differential treatment) Investment subsidies generally available to agriculture Input subsidies generally available to lowincome or resource-poor producers Note: Exchange rate: US$ 1= Dh 3. United Arab Emirates: Selected Issues and Statistical http://www. 25 April 2000. Preliminary data. 10 9 . Available at: 19. 16 August 2004.066 320 656 1. 13 January 2005.11 WTO document G/AG/N/ARE/3.497.org/external/pubs/ft/scr/2009/cr09120.911 680. Agricultural products attract a tariff of either 0% or 5%. Imports of plants.816 1.792 414 48 55 541 395 106 7.064 680.10 No notification has been received since then. The simple average tariff on agricultural products (ISIC Rev.United Arab Emirates Page 71 HOUSING URBAN DEVELOPMENT SEWERAGE SPORTS AND RECREATION GENERAL ADMINISTRATION HEALTH TOTAL a b US$1 = Dh 3. WTO documents G/AG/N/ARE/2.imf. 22 May 2002.6725.041 784 164 428 229 149 23 9. the UAE notified the WTO Committee on Agriculture that it granted no export subsidies during the period 1996-2001. 2.189 56 773 393 156 7 9.3). In 2002. the UAE notified the WTO Committee on Agriculture of domestic support in 2000 and 2001 (Table IV. maintained for SPS reasons. Loans and financing in agricultural sector 1. 22 May 2002. and G/SPS/R/35. G/SPS/R/34. as they contain only expenditure by the federal government.029 209.5% on food products (ISIC 311 and 312)). These amounts are considerably smaller than those reported by the Emirate of Abu Dhabi.666 335.
canned and frozen vegetables. with an unloading capacity of 1000 tonnes per hour.alainveg.1). in an effort to combat cartels and other anti-competitive practices (Chapter III(4)(iii)).Trade Policy Review Page 72 21. Concept Food Industries claims to be the first company in the world to use this technology. 25. 16 million line the roads. including food products. One company.J.S. several companies have emerged as leading producers of date palms using tissue-culture technology.00 square feet of space. which also delivers a high protein animal feed as a by-product. Developments regarding selected products (iii) (a) Dates 22. which is government-owned. a new mill.000 tonnes of grain. The total processing capacity of both plants is 2100 tons per day12. The company products are marketed in the UAE and the wider MENA region. with a capacity of 30 tonnes per hour. The company has also invested in another tomato paste manufacturing plant in Egypt. for raw material storage13. The new facility is expected to boost government-sponsored efforts to improve palm date cultivation within the UAE. produces poultry. unloaders are used to unload raw materials received in bulk from ships to material handling systems. and non-traditional feed All stages of production and control are fully computerized.C since 2008. fish. with a leading position in the UAE tomato paste segment and a growing presence in the increasingly important frozen vegetable category. but the MOE monitors the prices of 15 basic goods. The company employs approximately 200 people. There are no a priori price controls on agricultural products. resides in Abu Samra. Al Wathba Marionnet. The input raw materials in to the production are facilitated by three pneumatic ship.grandmillsuae. Source: www.000 date palms a year. Al-Ain Vegetable Factory . 12 13 Source: www.com .000 tonnes of high fructose syrup yearly from dates. The grains are cleaned.000.com. cooled and stored in 78 silos of varying capacities. A Jebel Ali free-zone company has introduced a new technology to produce fructose syrup from dates. Date palm cultivation plays a key environmental role in afforesting portions of the desert into oases. a member of Agthia Group P. it is currently producing about 300. Over 40 million date palms have been grown in the UAE until 2009. The warehousing facility at the factory has 60. One animal feed mill produces over 50 varieties of fodder. Then. In 2009. Grain Silos equipped with cleaning machinery provide storage capacity for 150. Dates are the UAE's main crop (Table IV. Other crops 23. Grand Mills is working closely with Al Ain University. Many farms use modern irrigation systems. cycled. Al-Ain Vegetable Factory is a leading UAE manufacturer and marketer of tomato paste. (b) 24. The mills are owned by the Abu Dhabi General Holding Company (section (3) below). was established in 1997 under the UAE Offset programme (Chapter III(2). The country is a pioneer in tissue culture to grow date palms. The facility has the capacity to extract 35. in Al Ain . and it exports dates. The Grand Mills for Flour and Animal Feed Company in Abu Dhabi production capacity has increased from 200 to 800 tonnes of flour per day since its inception in 1987. known as the OASIS of the UAE.
with a daily production capacity of 2. engines. It is illegal to catch undersize fish. according to UNSD of 2008. And UAE is at the 20th level among world countries regarding the quantity of cane sugar imports. and the structure of the workforce. fishing committees were established to ensure proper coordination with other governmental bodies. Over-fishing has resulted in reduced catches and smaller fish in the landed catches. it has already achieved the status of the largest sugar refinery in the world. And Import of sugar and sugar products with a total value of about USD 225 million and a quantity of 278 thousand ton.6 million and a quantity of 207 thousand ton. It aims to invests in viable and profitable entities. fishing boats have been operated mainly by non-UAE nationals whose concern for stock preservation may be less than that of UAE fishermen.1 million ton annually. equipment. to use less than 2-inch mesh in fish traps or less than ½ inch mesh in fishing nets. DI shareholders have grown to 21. The United Arab Emirates is the second country at the world level in re-exporting canned sugar14. in 2009 the Re Export with a total value of about USD 111. In the year 2008. Foreign Trade data of UAE clarify that the country's exports of sugar and sugar products reached 63 countries along the world in 2009. The first sugar refinery to be established in the Gulf.United Arab Emirates Page 73 26. and storage facilities by the Government. publishing and telecommunications . Dubai Investments PJSC was incorporated in 1995. this quantity reached 182 thousand ton.2.1 thousand ton with a value of USD 6 million approximately. to carry out fishing operations in spawning and nursery areas during the restricted period. Commercial fish farming is being supported by the UAE Offsets Group (Chapter III(2)). The situation has been worsened by considerable provision of boats. a programme is in place to introduce fingerlings in protected areas. The refinery has continuously improved its operations to become one of the most efficient refineries in the world. Re-exporting quantity reached 15. According to the authorities. Experimental aquaculture in the UAE has been undertaken for some years. 27. In order to protect the seabed and its demersal fisheries. 14 . new fishing boats are no longer being registered.800 tons. marketing and sales.aksugar. The average ton price reached about USD 274. nor hobby craft. The UAE's fishing subsector has had to adapt to changing conditions and technologies in recent years. wholesale and retail trade representation.400 tons. and to fish without a UAE citizen on board the vessel. where it exported 15. DI was set up with a paid up share capital of AED 650 million. industrial and commercial properties. Since 1995. The United Arab Emirates was ranked the twenty seventh amongst the countries of cane sugar exporting world. areas and seasons. food and related fast moving consumer goods. In order to preserve stocks. real estate management and property development.500 with the paid up share capital standing AED 3. accounting for 1% of countries importing such commodity. the Ministry of Environment & Water has issued regulations concerning fishing gear. bottom trawling is not permitted in the territorial waters of the UAE. transportation. Also. Al Khaleej Sugar refinery started production in 1995.ae 29. In order to increase fish stocks. with the primary objective of investing in companies and projects. healthcare and pharmaceuticals. (c) Fisheries 28. distribution and logistics. DI has established 47 subsidiary companies encompassing a diverse range of sectors including manufacturing. as are fishing periods. the number of fish traps is also restricted. Source: www. with a total value of about USD 472 million and a quantity of 909 thousand ton. both existing and start-ups. shipping. With a current daily production capacity of over 4.
including hatcheries.334 82. ENERGY. Share and ranking among OPEC countries.202 304. processing and packaging.398 7.800 2. and http://www.380 6. Annual Statistical Bulletin 2008.185 2002 97. The business activities of Asmak span all aspects of the aquaculture industry.499 2. fish feed. The UAE also has further. The UAE is a major oil and gas producer in a major producing area.549 2. distribution.900 2.248 2. and exports of oil and natural gas. some 60 duty-free (3) (i) MINING.800 2.000 b/d) Proven natural gas (billion standard m3) Marketed production of natural gas (million standard m3) Natural gas export (million standard m3) 1.16 Table IV. Fujairah. Available at: http://www. Further expansion phases are planned in Ra's al-Khaimah. (d) Cigarettes and tobacco products 30. up from 11% in Imports are also sizeable at US$824 million.0 401 6. 2006 97. in 2009. 1979-81. International Energy Agency online information. The total Exports and Re-Exports of cigarettes were US$1. a Not available. and the Organization of Arab Petroleum Exporting Countries (OAPEC) since 1970.4 398 6.072 50.800 2.iea.548 - .987 97. fish farming. 15 Oil and natural gas reserves are among the world's five largest.562 2004 97.360 7.100 452. The company has also acquired a stake in the Greek company Feedus as part of its strategy to invest internationally in successful aquaculture projects. export. the Arabian Gulf.800 2.048 25. marketing.342 84. and consulting.790 7.115 2.Trade Policy Review Page 74 which helped to establish the international fish farming company Asmak.175 2. production.7 399 6.460 1. One large company produces outside the free zones.113 2.org. Feedus.950 1. fish-farming equipment.344 2.676 2005 97.091 55.org. "Natural gas".148 392 315 6.342 2008 97.800 2.380 2.800 2.800 7. largely untapped. It is a member of both the Organization of Petroleum Exporting Countries (OPEC) since 1974.060 47.800 1. and Abu Dhabi.800 7. both are estimated to last more than 100 years at current production rates (Table IV. Source: OPEC.079 509. .195 55.040 48.opec.290 7.060 43.4).000 b/d) Crude oil exports Volume (1.420 2007 97.060 44.060 39.060 45.414 398 310 6. 15 16 Online information available at: http:// www. companies are involved in tobacco manufacturing or trade.614 21. gas reserves estimated to last 100 years at current production rates. as its name suggests.390 407.172 38.org.790 7.4 Reserves. taking advantage of the import of inputs.100 2003 97. IMF (2005b).768 486 425 6.000 b/d) Output of refined products (1.390 7.787 22.815 26.800 2.195.. AND WATER Overview 31.8 420 6.153 514 430 6.207 2001 97.000 b/d) Value (US$ million) Exports of refined products (1.800 2.187 2.420 70. 2000-08 2000 Proven crude oil reserves (m b) Crude oil production (1.767 2. In the Jebel Ali free-zone alone. is engaged in the manufacture and supply of fish-feed products.060 38.099 504 440 6.oapecorg.000 b/d) Crude oil and refined products exports (1.985 million accounting for 52% of the value of UAE agricultural exports.
OAPEC.5). although this share has been declining thanks to a successful programme of economic diversification. (ii) 34. Sharjah is the third UAE hydrocarbon producer. Thus. through joint ventures with international companies is a majority shareholder (Table IV. Fujairah is the second largest bunkering port in the world (about one million tonnes of fuel per month). 2 April 1996. about 40% of oil production is also carried out by concessionaires wholly owned by foreign interests.United Arab Emirates Page 75 32.000 b/d of oil (6% of the country's production) and substantial quantities of gas from offshore fields (with a major condensate field onshore). or by subsidiaries in which ADNOC is a majority shareholder. . Dubai produces less than100. although all the fuel is imported from neighbouring countries. According to the authorities. The UAE has not included any energy-related services in its GATS Schedule of Commitments. Oil and gas production is handled by the Abu Dhabi National Oil Company (ADNOC). Gas is increasingly used by households and local industries. and the Arab Organization of Mineral Resources. which faces a depletion of its oil resources. such as OPEC. exports have also increased. 2009 ABBREVIATION REFINED PRODUCTS DISTRIBUTION ABU DHABI NATIONAL OIL COMPANY FOR DISTRIBUTION EXPLORATION AND PRODUCTION COMPANIES ABU DHABI COMPANY FOR ONSHORE OIL OPERATIONS ABU DHABI MARINE OPERATING COMPANY ZAKUM DEVELOPMENT COMPANY GAS PROCESSING COMPANIES ABU DHABI GAS INDUSTRIES LIMITED ABU DHABI GAS LIQUEFACTION COMPANY LIMITED ADNOC-FOD ADNOC SHARE (%) FOREIGN SHAREHOLDERS (%) 100 (ADCO) ADMA-OPCO ZADCO 60 60 60 40 40 40 GASCO ADGAS 68 70 32 30 17 WTO document GATS/SC/121. The Federal Ministry of Energy represents the country in the international petroleum community and specialized international and regional organizations to which the UAE belongs. Table IV.17 According to the Constitution. Nevertheless. 35. Petroleum. The UAE applies tariffs of 5% on imports of all products of the mining industry and of electricity. most notably in Dubai.5 Activities of the Abu Dhabi National Oil Company. ownership of natural resources is vested in each emirate. including for power generation and water desalination. Oil production is expected to reach four million barrels per day by 2015 and natural gas production will increase to 6. the UAE has neither a unified federal energy policy nor federal legislation on exploration and development of energy and other mineral products. and gas 33.5 million barrels of oil per day (b/d).5 billion cubic feet of gas daily. Abu Dhabi owns more than 90% of the UAE's oil and natural gas resources. On the east coast. the oil and gas sector remains the dominant contributor to consolidated government revenues. The UAE currently produces around 2. The oil and gas sector provides around a third of the UAE's GDP.
36. Furthermore. and is the eighth largest producer among OPEC countries. Downstream development of refineries. The Council is currently chaired by the Ruler of Abu Dhabi (the 37.000 to 200.000 of condensate.000 b/d refinery. making it a major regional operator. the UAE has plans to build a new refinery at Fujairah with a capacity to process between 150. has a capacity of 145. 38. Ruwais hosts one of the world’s largest petroleum industry complexes.64 million.4). a number of laws pertain directly or indirectly to the petroleum industry.000 b/d. the Petroleum Resources Conservation Law. Abu Dhabi has no comprehensive petroleum legislation governing the granting of exploration and development permits. including the Abu Dhabi Tax Decree (see below). it also acts as ADNOC’s main board. It is controlled and supervised by the Supreme Petroleum Council. is a 90. owned by the Dubai Emirate.5): the Ruwais refinery. Abu Dhabi Refinery. it is on an upward trend (Table IV. the Council has the dual role of formulating all petroleum policies and overseeing their implementation. and other related industries has created an integrated oil and gas sector.000 b/d. . The progressive build-up of refining capacity since the 1980s has made the UAE a sizeable net exporter of refined products. It is fully owned by the Government of Abu Dhabi. with a capacity of 120. Foreign ownership is not a priori limited. The Abu Dhabi National Oil Company (ADNOC) was established in 1971. housing oil. petrochemical plants. The UAE has five refineries with a combined capacity of more than 0.Trade Policy Review Page 76 CUDE REFINING COMPANIES ABU DHABI OIL REFINING COMPANY CHEMICALS AND PETROCHEMICALS RUWAIS FERTILIZER INDUSTRIES ABU DHABI POLYMERS COMPANY LIMITED O IL AND GAS SHIPPING COMPANIES ABU DHABI NATIONAL TANKERS COMPANY NATIONAL GAS SHIPPING COMPANY EXPLORATION AND PRODUCTION SERVICES COMPANIES ESNAAD COMPANY NATIONAL DRILLING COMPANY ABU DHABI PETROLEUM PORTS OPERATING COMPANY TAKREER FERTIL BOROUGE 100 66 60 33 40 ADNATCO NGSCO 100 70 30 ESNAAD NDC IRSHAD 100 100 60 40 Source: ADNOC. plus 280. The Metro Oil and Sharjah refineries were not operating in early 2006.250 b/d privately owned second-hand unit was set up in Sharjah by the private Sharjah Oil Refining Company in 2001.000 b/d of crude oil. A 71. 18 However. and the Petroleum Ports Law. two are operated by Abu Dhabi Oil Refining Company (Takreer). Takreer's refining capacity more than doubled over 2000-05 to over 500. petrochemicals operations. owned by the Government of Fujairah.000 b/d. although their share in the total oil exports remains modest at about 10%. Four of the five UAE refineries are owned by the respective emirates. owned by ADNOC (Table IV. the other. Metro Oil. the Abu Dhabi Gas Ownership Law.000 b/d of crude oil.18 The legal framework for the development of petroleum resources is therefore determined by the terms and conditions of individually negotiated oil agreements concluded between the government and the oil companies. and a number of companies servicing the onshore and offshore oil and gas business. The Emirates National Oil Company condensate refinery (ENOC). gas. Established in 1988. began operations in Dubai in May 1999. has a capacity of 88.
bunkering oil. A Development and Production Sharing Agreement was signed in 2001 between the UAE Offsets Group (UOG. all domestically refined products (e. A number of other public companies market oil products: ENOC (Dubai). 41. owned by the Government of Dubai). It exercises administrative and technical control over its affiliated companies. and liquefy the gas for the domestic and international markets. see Chapter III(2)(viii)) and the State of Qatar. and has signed a 25-year gas sales agreement with Dolphin Energy. Diesel is currently sold at Dh 7. it is currently acquiring these from ADNOC.5% of the equity. is the first regional private sector natural gas resource enterprise to be established in the Gulf. at regional market prices by ADNOC.75 a gallon.8 a gallon. half of the volume of exports. Today. see below). The Dubai Supply Authority is responsible for sourcing and securing Dubai’s natural gas requirements. the Middle East’s largest regional ADNOC (2005). etc) are sold at market rates. TFP will transport a substantial volume of gas directly to the east coast of the UAE along a 240km overland pipeline route. 19 . and Emirates Petroleum Products Company (EPCO. Dana Gas. the UAE. which are sold at Dh 6. In 1999. Public Joint Stock Company (PJSC). Around 6 million tonnes of refined products per annum are sold domestically.25 (approximately US$0. which aims to develop links between the national gas infrastructures of Qatar. with deliveries to commence once the project comes on stream. Full throughput of 2 billion standard cubic feet a day was achieved in early 2008 and natural gas started flowing to Oman in late 2008. 40. thus completing the regional gas grid.19 39. naphtha. respectively. a separate legal entity in the ADNOC Group. ADNOC and the UAE Offsets Group (UOG) issued a joint declaration to share natural gas distribution. with 51% ownership. Emirates (federal government).5 per litre) and Dh 6. The Council grants petroleum concessions and licences. natural gas flowed for the first time from Qatar to the UAE. diesel. and two foreign partners Total and Occidental Petroleum. the Union Water and Electricity Company. process.g. and Oman. ADNOC has also been managing. Products refined by Takreer are sold to international buyers. pursuant to the Abu Dhabi Gas Ownership Law. domestic sales are carried out by ADNOC Distribution (Table IV. up to 2 billion standard cubic feet of natural gas are to be supplied from Qatar to the UAE daily. the Oman Oil Company. and the Dubai Supply Authority. who appoints its members by decree. in 2007. 42. The Council monitors crude oil production to ensure adherence to the OPEC-mandated quotas. all Abu Dhabi's gas reserves on behalf of the Abu Dhabi Government. Since 1976. The resulting Dolphin Project is a recent intra-regional initiative. initially. Gasoline prices are fixed by the Government of the UAE and are the same throughout the country. ADNOC has entered into joint ventures with major multinational oil companies to gather. jet oil. under which. each with 24. and ADNOC carries out the detailed negotiations leading to their implementation. Dolphin's main shareholder is the Government of Abu Dhabi.United Arab Emirates Page 77 President of the UAE). Dolphin’s main customers are Abu Dhabi Water and Electricity Authority (ADWEA. The Secretary General of the Council is also the chief executive officer of ADNOC. Apart from 95 and 98 octane gasoline. Dolphin Energy is in the process of completing the Taweelah-Fujairah Pipeline (TFP). ADNOC is the interface between the Council and the operating companies that execute approved projects.5).
The first stage completed in the first quarter of 2009 to link the electricity grids of Bahrain. Sajaa Gaz Privet Limited Company(SAJGAS). Saudi Arabia. all contracts are negotiated on an individual basis. and all other domestic companies dealing in petroleum. North Africa and South Asia (MENASA) region. and among members of the Gulf Cooperation Council (GCC). are expected to be completed this linkage in the second quarter 2011. including tax holidays and reduced tax rates. Dana Gas has established joint ventures throughout the region for instance DanaGas – Egypt. Electricity production at 17. and completing the allotments for its Initial Public Offering (IPO) of AED 2. There are no imports or exports. There are plans for interconnection of electricity transmission and distribution networks among emirates. There is no comprehensive petroleum legislation in Sharjah. According to the authorities. in practice. as amended. 44.94 billion of its shares to prominent regional and sector-experienced Founders. ADNOC and its subsidiaries.28 billion in 2009. to businesses that benefit Abu Dhabi in terms of. The Supreme Petroleum Council grants tax incentives.Trade Policy Review Page 78 private sector natural gas company. On Feb 4th.17 GW/h in 2009 while the number of consumers according to use categories for 2009 at 230771. 2010 the government of announced the discovery of new oil discovery in Dubai located east of "Rashid" field. Dana Gas plans to expand its business by pursuing natural gas opportunities throughout the Gulf as well as the wider Middle East. United Gas Transition Company Limited (UGTL). the tax ranges between 55% and 85% depending on the product that generates the taxable income.danagas. economic development. while it was invited to the States the third phase (the UAE and Oman) to enter at this stage as agreed UAE that are currently being implemented to connect to their main network of the body. Iraq Kurdistan Gas Project and DANAGAZ Bahrain. gas. The total generation capacity of the UAE at 3730.369 MW in 2007. and all petrochemical activities in Abu Dhabi according to the Abu Dhabi Income Tax Decree of 1965. The interconnection works of the Abu Dhabi – Dubai – Sharjah and FEWA grid was completed in April 2008The GCC interconnection system will provide emergency support to any national system and allow regional and international energy trading. water. On Aug 31st. technology transfer. after successfully completing partial capitalization in July 2005 of AED 3. A corporate tax applies to oil. which was established in 1999.ae . Dana Gas PJSC has been incorporated according to the laws of UAE. However. Electricity. Currently. upgrading the electrical power the internal of the UAE and Oman. Dana Gas sales revenues reached AED 1. It holds assets and contractual entitlements to the largest private sector integrated natural gas supply chain in the Gulf. Some 92% of the production is fuelled by gas while the remainder is produced by diesel generation or steam turbines. The emirate’s policy regarding exploration. inter alia. investment. 20 43. In addition to commencing the operation of its existing assets. and processing of oil and all petroleum matters is formulated by Sharjah Petroleum Council. Qatar and Kuwait and Phase II is expected to complete by the end of 2010.06 billion of equity shares as per the allocation policy as set out in the Prospectus. Water 20 Source: www. "chargeable persons" include foreign entities. Crescent National Gas Cooperation Limited (CNGCL). and utilities (iii) 45. production. This decree was not promulgated as special petroleum tax legislation but as a corporate tax law of general application. it is presently applicable only to "chargeable persons" "dealing in oil" in Abu Dhabi. issued a decree forming the Supreme Council of Energy. 2009 the ruler of Dubai. training of nationals.
Aside from the IPWPs. ADWEA is now a holding company that owns 100% of four producing companies. Online information is available at: http://www. are owned and controlled by the respective governments. Currently. a law was passed for the comprehensive restructuring of the subsector23. Since then. Distribution is under the monopoly of Abu Dhabi Distribution Company (ADDC) for the Abu Dhabi region. New projects have been implemented to enhance the transmission and distribution networks to meet the rapid growing demands for water and electricity. which is distributed to customers at the 33 kV and 11 kV levels throughout three regions: Eastern Region (Mussaffah and Baniyas). while the AADC water distribution system has reached (3550 Km. and Al Ain Distribution Company (AADC) for the Al Ain region.ae. The Dubai Electricity and Water Company (DEWA). and are carried out by the same companies 21. all entities are 100% owned by ADWEA.6). and http://www. ADWEA accounts for 53% of the federation’s total installed capacity. the Regulation and Supervision Bureau is the sector's regulator24. Electricity transmission is under the monopoly of Transmission Company (TRANSCO). Available at: http://www.gov. the sector has attracted about US$5 billion of foreign investment. transmission.dewa. Silla) and Abu Dhabi Island25 The Abu Dhabi water and electricity sector comprises the production.rsb.2).gov.ae (Sharjah Electricity and Water Authority). UAE.sewa. and the Federal Agency for Water and Electricity within the Ministry of Energy. 47. ADDC’s customer base is comprised of 412.2).addc. Western Region (Liwa. In early 1998. Coordination is by the Ministry of Energy.22 Installed generation capacity has increased from 9. the Emirate of Abu Dhabi formed a Privatization Committee for water and electricity. the Independent Power and Water Producers (IPWPs). In 2007 total length of ADDC water distribution system adds up to (8000) Km. ADWEC is the sole buyer from all the producers.United Arab Emirates Page 79 production and distribution are closely associated with electricity generation. UAE. And Ministry of Energy. 2 of 1998. and have monopoly over all segments of the electricity subsector. The prices of electricity and water are determined at emirate level (Table IV. 23 Law No. distribution and supply of electricity and water to customers. There are four electricity-water authorities in the UAE: the Abu Dhabi Water and Electricity Authority (ADWEA). private foreign and domestic stakeholders holding the remaining 40% (Chart IV.gov.) Federal Electricity & Water Authority. 48.540 service agreements for the supply of water and/or electricity. the Sharjah Water and Electricity Company (SEWA). and 60% of four other producing companies. 24 RSB online information. 25 Source: www. the Abu Dhabi electricity and water industry has been unbundled (Chart IV. which supplies the four northern emirates and parts of Sharjah.ae 22 21 . except ADWEA which is a public organization albeit with significant administrative independence and a separate legal entity. 46. All entities. Since 1999. In 1997.ae (Dubai Electricity and Water Authority).500 MW in 2000 to 16GW in 2007 but there are plans to raise the federation’s capacity for electricity generation to almost 26 GW by 2010.
02 0 0 0.15 0.20 0.03 0 0.03 0.20 0.075 0. ADNOC and the Abu Dhabi Water and Electricity Authority (ADWEA) signed a Memorandum of Understanding to interconnect .15 AND 0.025 0 0 0.01 0.6 Electricity and water charges.01 Dewa DH/KWH 0.20 0.035 0 0 0.05 0.005 50 MONTHLY 0. 49. the latest expansion of the Ruwais refinery involved the addition of four gas turbines and two water desalination units.20 0.03 0.075 PRICE Sewa Fewa INDUSTRIAL/COMMERCIAL TANK DISTRIBUTION RESIDENCE WITHOUT METERS INDUSTRIAL/COMMERCIAL Source: Ministry of Energy.20 0.15 0. The output from the Ruwais refinery was initially intended to supply power and utilities only to plants in the Ruwais industrial area.20 0.015 0. ADNOC also produces electrical power.2 Structure of Abu Dhabi Electricity & Water Sector Source: Abu Dhabi Water and Electricity Company. In 2002. In 2000.15 0.015 0.075 0.035 0. January 2007 PRODUCT CUSTOMER CATEGORY Adwea ELECTRICITY UAE NATIONALS DOMESTIC NON-UAE DOMESTIC GOVERNMENTAL SCHOOLS FARMS WATER UAE NATIONALS DOMESTIC NON-UAE DOMESTIC NATIONALS NATIONALS 0.01 0.075 0.075 0.20 0.20 0.075 DH/GALLON 0.Trade Policy Review Page 80 Chart IV. Statistical Report 1998-2008 Table IV.
furskin. major growth areas include capitalintensive high-technology industries supplying.2 billion in 2008. Table IV. are approximately US$111. air conditioning and refrigerating equipment. To a large extent. paper and paperboard XI.United Arab Emirates Page 81 their electrical grids to exchange power in the future. social and demographic sectors. etc. 26 27 1352 5463 741 2472 310 372 23 2628 136 2444 232 493 1102 4763 706 2135 388 274 29 518 160 2430 223 467 Source: National Bureau of Statistics web site . information technology equipment. headgear. Initially. The move follows a recommendation from the IMF which suggested the implementation of a comprehensive and consistent statistical system27.7 Trade in manufactured products. Articles of stone. Dubai International Financial Centre. and aluminium.and gas-intensive industries.uaestatistics. Currently.7) show that imports in the UAE customs territory of manufactured products.1 billion in 2008. http://www. No statistics are available on the UAE's manufacturing sector.ameinfo. etc. and sporting goods and equipment. Re-exports are in the order of US$37. However. except food. and the large infrastructural projects such as Dubai Health Care. Footwear. Wood. the UAE's manufacturing sector developed in oil. Dubai Media City. the sector has rapidly evolved to more diversified products such as electronics and light machinery. IX. Dubailand. Chemical products and related industries VII. rubber and article thereof VIII. construction products. in addition. Pulp of wood or other fibrous cellulosic materials. such as petrochemicals. http://www. environmental and pollution control equipment. umbrellas. leather. Subsequently. Raw hides and skins.com/99550. beverages and tobacco (section (2) above). cement. and articles X. cork. Ruwais electricity plant now supplies power to the ADWEA National Grid. security and safety equipment. (4) (i) MANUFACTURING Main features 50.6 billion in 2009 compared to US$143. inter alia. based on its comparative advantages. 9 of 200926..ae Source: AME Info . The emirate governments have each invested important financial resources to diversify their economies into non-hydrocarbon industries. Textiles and textiles articles XII. etc.9 billion in 2009.2 billion in 2009 compared to US$15. XIII. 2008 & 2009 (US$ million) 2008 (b) HS section Import 3123 7250 4857 523 1306 Export 1360 388 1507 6 7 Re Export 173 1172 1233 150 284 Import 2554 6551 3735 491 835 2009 Export 1011 461 1419 5 8 Re Export 190 949 1213 151 181 V Mineral products VI. 51. The Ministry of Economy said that the NBS would prepare.html . plaster. Exports from the customs territory average US$16. fertilizers. analyse and compile national data and statistics across economic. exported in large part from the free zones. medical equipment and services. Available trade data (Table IV.gov. this production caters for the large oil industry. Plastic and articles thereof. a National Bureau of Statistics was established according in 2009 according to Federal Law No.
collectors' pieces and antiques Section V to XXI total 33128 22521 32787 21991 6518 1420 274 111 17201 1593 8700 6874 27632 11218 29438 15573 8956 2183 378 468 13408 1405 8703 7097 2381 336 2895 120 143247 23 5 125 1 15077 514 6 703 143 42049 2280 69 2369 140 111590 22 2 113 3 16236 546 3 645 158 37930 Source: Ministry of Foreign Trade. As noted. has stakes with a total of over US$1. Followed by chemicals and plastics. For example. Arms and ammunition XX.6 billion in over 20 companies. asbestos.15 billion up to US$34 billion in 2007. Ministry of Economy 53. etc. Foreign companies wishing to establish in the UAE may hold at most 49% of the capital of the company (Chapter II(5)). Abu Dhabi National Industrial Projects. 28 . Some institutions have been created specifically to foster the development of the manufacturing sector.to large-scale industries and services projects that will open new business opportunities. the Emirate of Abu Dhabi established the Higher Corporation for Specialized Economic Zones. vessels and associated transport equipment XVIII. Vehicles.243 in 1995 to 3. XVII.1). Industrial licences are required to establish a manufacturing activity. photographic.036 in 2004. growing by 69% annually. These licences are issued by the economic authority of the emirate in which the business office is to be located. etc. Another company. According to the authorities. Works of art. and increase in investment over 2007-06. etc. Under Federal Industrial Law No. aimed at providing an integrated infrastructure. The Ministry of Finance and Industry is the federal authority in charge of formulating the policies. electrical equipment etc. Dubai Investment Company. The largest industrial growth has taken place in Abu Dhabi and Fujairah. Natural or cultured pearls. beverage and tobacco industries have experienced the largest increase in investment over 2000-04. these statistics cover only the production of units that are registered at the federal level. to US$17. 54.ae/ (ii) Policy framework 52. 1 of 1979. Machinery and mechanical appliances. the Federal Government may offer investment incentives to companies that register with it (Box III. XV. precious or semi-precious stones. each Emirate holds a majority stake or is the sole shareholder in key companies. measuring. XIV. Base metals and articles of base metal XVI. UAE online information http://www. growing by 73% annually. cinematographic. The food. Instruments XIX. established in 1996. In May 2004.Trade Policy Review Page 82 cement. Miscellaneous manufactured articles XXI. was set up in 1997 as a private shareholding company designed to establish medium. From the point of view of competition there is no regulation of incentives offered by the respective emirates. Optical. Typically. The number of industries registered at the Ministry of Finance increased from 1. The long-term policy objective shared by all emirates is to increase the manufacturing sector's contribution to GDP. The number of foreign companies in the United Arab Emirates and registered with the Ministry of Economy in February 2009 until approximately 2639 foreign companies from various countries of the world28. the stock of investment has increased three-fold since 2002. aircraft.tradeexchange. the only assistance effectively available is the concessionary financing provided by the Emirate Industrial Bank (Chapter III(3)).
and professional services through the establishment and management of special zones in Abu Dhabi29.000 mt year of high grade aluminium in 2009.4). with a few rates at zero (mainly on pharmaceutical products and printed matter). a joint-venture between the UAE group United Technical Services (51%). either under the industrial incentives regulations (Chapter III(4)). Remaya. profitable and sustainable joint ventures.the first national arms manufacturer in the United Arab Emirates – and Merkel. or under the statutes of the respective state-owned companies Policies in selected industries Metals 56. The UAE Offsets Group is also active in promoting industrial development (Chapter III(2)). Available at: http://www. The Offset Program Bureau (OPB) was established in 1992 to oversee the offset program in the UAE. as well as a distribution network in all over Europe and North America. and educational projects and to create investment funds in the UAE and abroad. Imports of all inputs are duty free.Burnstop. The corporation also encourages small. Caracal Shooting Club. 55. cement. The areas to be privatized include fodder. Burnstop from Finland (40%) and Dassault Investments (9%). financial. Since its inception. A state-owned company. Al Ain Shooting Club. Tawazun Holding’s major subsidiaries are Caracal International . Dubal reports that its unit cost of production is among the world's lowest.aspx 29 . Other objectives include the promotion of local industries and the creation of employment and training opportunities for UAE nationals. and manufacture of airconditioning units (Table III. which was wound up. is now one of the world's biggest smelting complexes. OPB created a fully-owned subsidiary. the German maker of hunting rifles and shotguns which has production lines in Germany.United Arab Emirates Page 83 a suitable business environment. medium-sized and specialized industries. and will encourage the private sector to become involved in the management of the zones. include a shipyard. In April 1999. GHC is privatizing some of its enterprises as part of the emirate’s strategy to forge a publicprivate partnership and stimulate local financial markets. The privatization is expected to strengthen the local stock markets as the newly privatized firms obtain listings. the UAE Offsets Group announced the formation of UTS . General Holding Company (GHC) took over the industrial holdings of the General Industries Corporation. with a annual consumption of process materials capacity of around 1. Abu Dhabi Autonomous Systems Investments. the company manufactures fire fighting and prevention equipment. Other Tawazun subsidiaries include Burkan Munitions.zonescorp. DUBAL manufactures approximately one million tonnes of finished product. In 2007. linked to purchases of military equipment. The Abu Dhabi government has also announced plans to privatize certain manufacturing companies. industrial. 57. steel and pipe plants. Tawazun Holding to contribute substantially in diversifying UAE’s oil-dominated economy by focusing on the development and expansion of selected emerging companies across a wide range of industrial and commercial disciplines. Each year. It is mandated to set up joint ventures. The Dubai Aluminium Company (Dubal) plant. (iii) (a) 58.com/En/Pages/default. as well as to invest in commercial. Projects established under the UAE Offsets Programme. Emirates Precision Industries. MFN applied tariffs on manufactured goods (except agri-food) are generally at 5% (modal rate). agri-business projects. OPB also acts as a conduit between international contractors and local private sector for creation of commercially viable. and flour mills (section (2)(iii) above).880. HCSEL online information. established in 1979 and owned by the Entirely state.
with a 50% stake each in the project. was built in the Mussafah Industrial Area. Dubal entered into a provisional agreement with one of India’s engineering and construction conglomerates (Larsen and Toubro) to build a Dh 3. Gas will be supplied to the project through a newly constructed pipeline34. the ASEAN region. to be increased to 60. Emirates Steel Industries (ESI). 60. India. 32 Information is available at Ducab's website: http://www. The magnesium smelter project is being promoted by the Sahari Group of Abu Dhabi and Normans of Albania. and high purity primary aluminium for the electronics and aerospace industries. the UAE has proposed the elimination of tariffs on primary aluminium in the WTO31.32 Established in 1979. there is no government ownership in the plant. Ducab reached AED 2. with an initial capacity of 600. Raw material (magnesium) will come from mines in Albania.67 billion combined bauxite mining and alumina refinery in India’s Orissa state.Trade Policy Review Page 84 made-to-order for 300 customers in about 45 countries worldwide predominantly in the Far East. a green-field smelter development at Al Taweelah. http://www.dubal. the Middle East and Mediterranean region. Cameroon.aspx . and Tanzania under major projects and distribution agreements. This includes foundry alloy for the automotive industry. In April 2005. Active investments are also being made to secure DUBAL's requirements of alumina and other critical raw materials. Dubai Cable Company (Ducab) manufactures high. The factory uses imported raw material. A magnesium alloy plant is under construction at Sharjah's Free Zone. In March 2005. 61.000 cubic meters of fresh water per day. a 351 MW power station and a desalination plant with a capacity of 2.asp 34 Source: Emirates Steel Industries.000 tonnes of 10-32 mm diameter steel per annum in 2006.ducab. 30 31 Dubal online information. medium and low voltage electric cables. The plant's initial production capacity will be 20. extrusion billet for construction. Expansion plans include the construction of a 205. billets for forging processes in automotive industries. Dubal and Global Alumina Products Corporation signed a memorandum of understanding for Dubal to make a substantial investment in Global Alumina.000 tonnes per year smelter. According to the authorities. A steel factory. reduction material and casting infrastructure) began in December 2009. Ducab is a joint-venture between the Dubai and Abu Dhabi Governments (50% each).com/company. The factory is the largest steel plant in the UAE.ae/ducab_news. formally Emirates Iron & Steel Factory (EISF) is a wholly owned government factory strategically located at the recently developed Industrial City of Abu Dhabi (ICAD). and North America. the company has to date engaged in four strategic upstream bauxite/alumina projects in Brazil. 59.000 tonnes upon completion. in Abu Dhabi. Abu Dhabi. Europe.4 billion global sales during 200933.4% to non-oil revenues30. Republic of Guinea and India.ae WTO document TN/MA/M13. With regards to alumina feedstock in particular. Dubal contributes 5% to Dubai's GDP and 5. Jordan. The company has recently expanded its business by entering into new export markets in Iran. transport and industrial applications.ae 33 Source: Ducab. DUBAL also holds a 50 per cent share in Emirates Aluminium ("EMAL"). The production is expected to be exported. 6 August 2004. http://ducab.esi-steel. Available at: http://www.000 tonnes per year of magnesium products. Given the importance of this industry for its economy. Commissioning of EMAL Phase 1 (comprising a 756-cell smelter plus associated power generation. utilising the latest rolling mill technology to produce reinforcing bars for the construction industry.
Other fertilizer manufacturing projects are located in Jebel Ali Free Zone. The plant is equipped with the state-of-the-art production equipments. Ras Al Khaimah Cement Company was established in 1995 as part of the continuing economic and social development policy being implemented by the Emirate of Ras Al Khaimah.5 million t/y is scheduled for 201335.borouge. but bauxite. which currently has a capacity of 1. The plant is capable of producing 960. producing clinker and Portland cement.1 million tonnes in 2009. and 7. 64. A shortage of cement and clinker throughout the UAE in 2005. 63. one of Europe’s largest polyolefin (plastics) producers (Table IV. 35 36 Source: Borouge. it has the capacity to load ships up to 40. Abu Dhabi Fertilizer Industries.com/aboutus/default.000 tonnes of fertilizer annually.6 million tonnes of cement. In 2004. Twelve factories operate throughout the country. Chemical fertilizer production began in the UAE in 1980 with the establishment by ADNOC of Ruwais Fertilizer Industries (FERTIL). There has been an important expansion of capacity as the authorities consider that the market for these products will increase substantially. Total capacity is estimated at 10. Ras Al Khaimah Cement Company plant is connected to a terminal inside the adjacent Saqr Port . The plant is capable of producing 960. The plant is equipped with the state-of-the-art production equipments. Ras Al Khaimah Cement Company plant is connected to a terminal inside the adjacent Saqr Port . Ras Al Khaimah Cement Company was established in 1995 as part of the continuing economic and social development policy being implemented by the Emirate of Ras Al Khaimah. it has the capacity to load ships up to 40. The Abu Dhabi Government has announced plans to privatize the Al Ain cement plant. between ADNOC and Borealis. dating back to the mid 1970s.000 tons of Cement per year complying with BS and ASTM Standards.2 million tonnes. Borealis and Borouge manufacture 4 million tonnes of polyolefins (polyethylene and polypropylene) per year. Limestone is available locally.050 tonnes of ammonia and 1.United Arab Emirates Page 85 (b) Chemicals. respectively.000 tons of Clinker and 1.000 dwt. (c) Cement & Ceramic The cement capacity in 2008 at 29. Borouge is a joint-venture.000 dwt. iron ore. established in 1998 in Abu Dhabi (Ruwais).000 tons of Cement per year complying with BS and ASTM Standards. reflected the ongoing construction boom. one factory in Ra's al-Khaimah manufactures white cement. and gypsum are imported. Borouge polyolefins manufacturing capacity reached 2 million tonnes per year (t/y) by mid-2010 and an additional 2.000. 65. which assure efficient use of electricity and natural gas while guaranteeing the highest degree of product quality and consistency. set up as a joint-venture between the UAE-based International Technical Trading Company (64%) and SQM of Chile (36%).000. in a minimum amount of time.8 million tonnes increased to 34.5). which assure efficient use of electricity and natural gas while guaranteeing the highest degree of product quality and consistency. in a minimum amount of time.8 million tonnes and 7. which has been renamed the Emirates Cement Company.000 tons of Clinker and 1. produces 40. www. cement and clinker production were estimated at 9.36 The cement industry is one of the oldest manufacturing industries in the UAE. and plastics 62.500 tonnes of urea per day. January 2010 . For example.aspx according to a latest Global Investment House (GIH) report.2 million tonnes of clinker. ADNOC's activities include the manufacture of petrochemicals (section (3)(ii) above).
Pharmaceutical products (d) 67.000 sq. all companies in the industry are entirely under private ownership. Sales grew by 22% to AED 762.487 products registered in over 45 countries around the globe at the end of 2009.Trade Policy Review Page 86 66. India and Iran. Julphar – II which is ß-Lactam Antibiotics & Sterile Dosage Forms. of tiles per day and over 11. Ras Al Khaimah Ceramics : RAK Ceramics is a public shareholding company. The company exports to around 26 countries. It is engaged in the manufacture of pharmaceutical products that address a range of therapeutic segments. Endocrinology. The nine facilities are devoted to nine different classes of products: Julphar I which is Pharmaceutical Solid dosage Forms which specializes in non-sterile solid dosage forms such as tablets. Gulf Pharmaceutical Industries (Julphar) was established in 1980 . and one in Germany. UAE. Exports in 2004 exceeded US$135 million and went to 40 countries. 37 38 Source: http://rakceram. Julphar is the first pharmaceutical manufacturing company in Arab Gulf States. most production takes places.Musculoskeletal & Joint diseases. Julphar had 3. the largest company (both in terms of capital and sales) is the Gulf Pharmaceutical Company (Julphar) based in Ra's al-Khaimah. Leading markets are Saudi Arabia. making RAK Ceramics’ one of the largest multinationals in the world manufacturing. aside from Julphar. The Ministry of Health is responsible for licensing pharmaceutical companies.com Available at: http://www. The Ras Al Khaimah plants alone produce around 227. capsules. Julphar product range can be divided into the following major therapeutic segments: Anti-Infectives.500 pieces of sanitary ware per day. sachets. RAK Ceramics is considered among the top 25 ceramic tile manufacturers in 2009 with a total production output of 115 million square metres from 15 manufacturing facilities located in six countries37.0 million in 2009 over 2008. RAK Ceramics has overseas plants in China. both in the Customs territory and in the free zones. mt. Sales CAGR reached 14% over the last 5 years. Julphar has nine functional production facilities. It has been officially recognised as the world's largest ceramic tile manufacturer by the Ceramic World Reviews. Currently. etc. Federal Law No. only 7% of which are consumed locally.com . Bangladesh. one in Ecuador. Iraq. Immunosuppressant. 4 of 1983 is the main law regulating the pharmaceutical industry.mt. Imports of pharmaceutical products are generally duty-free. The Ra's al-Khaimah Emirate owns 25% of the capital of Julphar. The global production of tiles is over 360. This plant is a dedicated facility for Ampoules & Vials filling adhering strictly to cGMP and pharmacopoeia specified environmental controls. Julphar III is a Oral ß-Lactam Plant dedicated facility for the manufacture of oral Penicillin products. Cardiovascular Systems. Local Anesthetics and Para-Medical Products. in six companies outside the free zones. Central Nervous System. Julphar – IV which is 68. of tiles per day and over 8500 pieces of sanitary ware per day. Nutrition and Blood. Julphar has five factories: three in Ra's al-Khaimah.000 sq. A public shareholding company based in the Emirate of Ras Al Khaimah. Oral Cavity & Gastrointestinal Tract. effervescent tablets and powders for suspensions (PPS). UAE. Lebanon. Kuwait. Respiratory System . The manufacturing vessels are equipped with closed loop CIP and SIP Systems.julphar. Afghanistan and Egypt. Sudan.38 Founded in 1985. Skin. Gulf Inject was set up by a group of local and Gulf business interests in the Jebel Ali Free Zone. According to the authorities. Specialized in the production of intravenous solutions. Julphar manufactures 275 varieties of medicine (including antibiotics). According to the authorities. although there are two companies in the free zones.
the construction market was driven mainly by the traditional public sector customers such as utilities and ports. The project includes hotels. interferon. the UAE is facing shortages of contractors in certain specialized construction services. many foreign project contractors are active in the UAE. F1 racing circuits. both local and foreign. Project management contractors. Source: Burj Khalifa: www. 72. Julphar VII is Biotech Lab and Production Facility. 70. such as power generation stations. coordinate the process on behalf of their clients. marine projects.United Arab Emirates Page 87 a Oral Cephalosporin Plant dedicated facility to produce all forms of oral Cephalosporin Julphar V is Off-line Packaging Plant caters to that provide different language packaging materials and special regulatory requirements for pharmaceutical products from other countries. 73. Ferrari World Abu Dhabi. (5) (i) SERVICES Construction 69. Its rapid advances have also been encouraged by the gradual opening of property acquisition to foreigners in Dubai. Julphar VI is a Liquid & Semi Solid Pharmaceutical Dosage Form. 20 September 2005.burjkhalifa. Burj Khalifa was inaugurated on January 4th 2010. Julphar – VIII is Sterile Powder Filling facility that handles the sterile dry powder injection vials. metro lines. home of the Formula 1 Abu Dhabi Grand Prix. driven by low interest rates and accelerating with rising oil prices. Julphar – IX is a Sterile Cephalosporin Powder Filling Plant which is dedicated to handle dry powder injection vials for cephalosporin products. from concept to completion. the market has been driven by large projects.ae . It is estimated that half the number of flats sold in the city in 2004-05 were to international buyers and speculators39. With nearly US$100 billion of major projects under way in Dubai alone in October 2005. The other emirates do not grant freehold rights to foreigners. theme parks. The UAE generally accepts internationally recognized standards and technical regulations. A biotech product production capabilities which has the capacity to meet the demand of erythropoietin. These factors have helped to maintain construction prices at relatively low levels by international comparison. In the 1975-00 period.yasisland. Professions in construction are regulated at emirate level. apartments and villas It has first Ferrari theme park. The estimated cost of the projects ranges between US$45-50 billion41. The UAE’s existing services schedule does 39 40 Financial Times. Burj Khalifa is the tallest construction building in the world. but foreign professionals are numerous. 71.716 feet) and more than 160 stories. Since 2000. The exceptionally fast pace of industrialization and economic development in the UAE has coincided with a global property boom. Burj Khalifa is the tallest free-standing structure in the world40. As a result. Traditionally. This plant manufactures Liquid and Semi Solid Pharmaceutical Dosage forms. Yas Island is 25 km2 island located between the coast and city of Abu Dhabi and Dubai. mega malls. golf courses.ae 41 Source: Yas Island : www. At 828 metres (2. GCSF and interleukin. and sewage treatment plants. clients are turning to foreign contractors for these services. Construction services are not highly protected. designs are completed before contractors are asked to compete for the construction contract. Yas Island a multi use real estate & Leisure projects. bridges.
In general. Transport not only plays an important role in the economy of the UAE. It has largely succeeded in this. 43 42 http://emirateseconomist. the MOL issued an unprecedented "tough ruling" against a construction company following demonstrations for non-payment of wages43. 45 WTO document GATS/SC/121. The Directives by HH. Given the comparative advantage of the UAE in transport. which have also been among the leading subsectors attracting FDI. are through the dominant position of and control through state-owned enterprises. In addition. 8 of 1984 Concerning Commercial Companies. Since 2005 the UAE has made great progress legislating and enforcing the rights of its labour force. 2 April 1996. and the resulting availability of both skilled and unskilled foreign construction workers has facilitated the expansion of its property market. albeit always on the basis of minority shareholdings. for monthly salaries of US$200-250 and with frequent reports of delayed payment42. 44 Federal Law No. (ii) (a) Transport Overview 75. including through a relaxation of restrictions on foreign majority 76. the UAE’s Initial Offer in the Doha Round services negotiations sets out more specific commitments. Furthermore a Collective Labour Dispute Committee in each labour jurisdiction has been established to include representatives of both labour and employers. In September 2005. the main restrictions to competition. Sheik Mohammed Bin Rashid Al Maktoum issued in 2006 seek on the other hand to improve the lives and living conditions of guest workers. a substantial WTO offer in this area. 15-21 July 2005. The UAE's market access and national treatment policy in the field of transport services may differ from one emirate to another. Available at: blogspot. 77. The UAE's relatively open labour market. Since the mid 1980s. and the requirement for foreign commercial presence to be in the form of minority (49%) ownership. .com/.Trade Policy Review Page 88 indeed include commitments on constructing services. a strategic policy priority of the UAE is to become a major aviation and maritime transport hub between Europe and South-East Asia. Workers are lodged in labour camps close to the construction sites. The governments of the emirates have invested vast resources in developing port and airport infrastructure. Unskilled construction labourers typically work extended hours. Legislative initiatives have addressed specific situations as illustrated by Federal law 51 of 2006 on human trafficking. the Ministry of Labour (MOL) announced in late June 2005 that on-site workers would be granted a four-hour break starting at 12:30 pm from July to August. In addition the first draft of an amended Federal labour law was ready in 2007 whereby the Minister of Labour will be allowed to approve the formation of labour unions. Following a campaign by local doctors concerned about the increasing incidents of heatstroke. but the transport network has effectively become central to the entire region. The Emirate Economist. 74. In 2007 the MOL undertook aggressive measures designed to stop late and non-payment of wages as well as to facilitate worker transfers to other employers. Middle-Eastern Economic Digest. The UAE has not included any transport sector in its 1994 Schedule of GATS Commitments45. including from foreigners. Sunday 25 September 2005. including under the Commercial Companies Law44. At the bilateral level the UAE has signed several MOUs with South Asian countries whose purpose is to increase collaboration in preventing illegal recruitment practices and other unfair labour practices.
In addition. maritime enterprise and integrated transportation system to achieve the goals set out in Abu Dhabi Vision 2030. 1 (2006). national flag vessels. 46 . Through these regulations the Department of Transport seeks to promote and facilitate safe coastal and inland water navigation in Abu Dhabi that meets internationally recognized standards.United Arab Emirates Page 89 ownership. The UAE has been a member of the International Maritime Organization (IMO) since 197446. The commercial fleet consisted of 622 ships of 100GT of above flying UAE flag . 82. The Maritime Transport Sector is going through continual improvement since the establishment of the National Transport Authority as per Federal Law No. Available at: http://www.asp. a large and rapidly expanding deep seawater port infrastructure. foreign ships must not be older than 25 years.imo. and sustain substantial growth in the transport subsector. The regulation distinguishes three types of ships: foreign flag vessels calling at UAE ports. 80. The regulation of shipping services is shared between the NTA and the respective Transport port Authorities of each Emirate. (b) Maritime transport services 78. Flag vessels must have a contract with one of the federal or local governments to operate in the UAE waters. Foreign companies must obtain approval from the NTA in the form of a licence. The port has allowed the development of major shipping and transhipment activities as well as shipbuilding. 79.Executive Council through Resolution 30G 28/2008 has instructed the DOT (Maritime Sector) to coordinate the development of regulations regarding the Management of Abu Dhabi ‘s Waterways. while promoting the smooth operation of Abu Dhabi’s civilian ports. 83. and communications aspects of marine navigation. and foreign flag vessels operating in UAE territorial waters.g. Dubai Maritime City. in July IMO online information. Palm Island). 81. and the total commercial payload reached approximately 4. seaworthiness. would consolidate the traditionally liberal UAE transport policy. The NTA regulates all those operating in UAE waters The Abu Dhabi .org/home. UASC was established jointly by the six GCC states. and local ships must have IACS approval issued within five years. This is designed to encourage local companies to register vessels under the UAE flag. and cannot carry out cabotage on their own account.5 million tons. Crews working on ships servicing the territorial waters must have residency visas. repairs. mainly in the context of offshore projects (e. issuing of navigational licenses and levying fees in accordance with the UAE commercial maritime law (26) 1981. The NTA Maritime Transport Sector is responsible for developing ship licensing system. The UAE's fleet comprises all ships registered in the UAE with a 51% ownership by UAE nationals. and maintenance services. The growth of maritime transport in the UAE resulted largely from the development of Dubai's Jebel Ali Port. The NTA is in charge of all security. The United Arab Shipping Company (UASC) is the largest container carrier operating from the Middle East. as well as compliance with international standards. All ships operating in UAE territorial waters must be classed under one of the categories of the International Association of Classification Societies (IACS). It ranked 47th under the gross tonnage of the world merchant shipping registered on 31 December 2008. The NTA is updating and amending the Marine Transport Commercial Law in order to liberalise marine trade and registration of foreign ships.
and Fujairah. discharging. Ajman.1%. 47 . and the Indian subcontinent.htm. Registered users can view and pay duties online.pdf. before a record growth of 25% in 2004. a new regulator – the Dubai Ports and Jebel Ali Free Zone Authority – was created to oversee the regulation of Dubai's ports. with over 100 berths. and nine other Arab countries have 9. Sharjah. and increasingly in regional and world trade.ae/Services/ Tariff. and has successfully acquired the nationally renowned port operators such as P&O and CSX. and Port Zayed online information.dpa.co. Dubai Ports is regarded as the seventh largest international port in terms of size and capacity. 9. 48 See in particular "Dubai Port Tariff". Asia including China.1%. Dubai International Port container storage capacity had reached 46. asp?NewsID=25. The UAE's ports export mainly oil and gas. DP World is fully owned by the Emirate of Dubai. and National Marine Dredging Company (all three owned by the Federal Government). In 2006. Gulf Agency Company (GAC). 87. online47. the Dubai Ports Authority and Dubai Ports International merged into a single new global port operator – DP World. Available at: http://www. and its ship-repair facilities and ship-building capacity are developing rapidly.portzayed.923 million containers.com/fullnews. East Africa. play a pivotal role in UAE trade. The country owns well over 30 ports and commercial free trade zones in Jabal Ali. Dubai World was ranked 8th in the world in the sphere of port operations. Available at: http://www. Most port handling services. appear to be supplied exclusively by the emirates' port authorities.ae/tariff/general conditions. The UAE ranks among the top five locations in the world for bunkering and other ship handling. as well as a significant re-export trade within the Gulf region. GAC is entirely private.dpworld. It handles enquiries. based in Jebel Ali Free Zone since 2002. The UAE has 15 large commercial ports (including oil terminals) with a total capacity of over 70 million tonnes. These include ADNATCO. See DP World online information. stevedoring. port services are regulated at emirate level.1% each). 84. is the world's largest man-made port. Etisalat and Delma Co-operative Society.15 million "twenty feet equivalent unit" (TEU) containers in 2003. owned by the Abu Dhabi Government. The UAE shipping agency and freight forwarding market comprises numerous companies. but also raw materials and finished goods. Dubai's ports.gov. including crane lifting. Imports consist of intermediary and consumer goods. The company also supplies spare parts and various services to vessels worldwide. India and the middle East. Dubai's Jebel Ali Port. In 2008. and Arab Maritime Petroleum Transport Company (in which the Abu Dhabi Government owns 9. as well as manifest and cargo handling services. A number of other domestic shipping companies are partly or fully owned by the Federal Government or by the governments of the emirates. As noted. Dubai World had processed well over 8. as well as pilotage. storage and warehousing. 86. On 28 September 2005.96%. the Dubai Government. cargo clearance. and handled 5. the world's seventh largest throughput. The share owned by the UAE Federal Government is 10.Trade Policy Review Page 90 1976. National Petroleum Construction Company. loading. Ras al Khaima.8 million TIUS arriving. stowage. mainly from the Americas. The projected storage capacity for the next 10 years is in the order of 95 million TIUS. In addition. Available at: http://www. The UAE is host to one of the world's largest shipping agencies. which handles primarily bulk cargo and industrial material for Jebel Ali Free Zone. Dubai Ports Authority (DPA) managed them until September 2005. Information on port dues and other fees and taxes for the Dubai ports is available electronically48. 85.
Apart from the same. offering 100% foreign ownership to companies and individuals. 90. 89. including abroad. Mina Zayed by 2013. including the operations of Busan's New Port in Korea. break. All port terminal operations in Abu Dhabi are presently the responsibility of Abu Dhabi Terminals. The marine terminals of Jebel Dhanna and Ruwais. On the East coast Khorfokan port container storage capacity had increased by 8% in 2007 with well over 20 million containers. that were previously held by the Sea Ports Authority have been devolved to the Department of Transport (Maritime) and the Abu Dhabi Ports Company (ADPC) respectively. DP World which has a management agreement with Abu Dhabi Terminals is the defacto operator of Port Zayed. Khorfokan was designated as a specialist container storage facility and was ranked as the 120th in the world. The Stage 1A development will include over 3. DPI purchased CSX World terminals' international portfolio. with the planned closure of Port Zayad and construction of a new port and industrial zone called Port Khalifa. The Khalifa Industrial Zone will be developed in as two Areas (A and B). DP World runs the port of Constantza in Romania. and liquid bulk cargo by 2028. Hong Kong's Asia Container Terminals. DPI announced agreements to take over operational management of Abu Dhabi and Fujairah ports. which is a joint venture company owned by ADPC and Mubadala of Abu Dhabi. In March 2011. 88. Free port located adjacent to Port Zayed servicing smaller vessels. The port sector in Abu Dhabi is undergoing massive change. Port Zayed will then be redeveloped into a residential and commercial area.2 km of quay walls able to accommodate a throughput of over 2 million TEUs and over 6 million tonnes of general cargo. They are owned and operated by the Abu Dhabi Petroleum Ports Operating Company (ADPPOC). The powers. The Port will be completed in phases. The overall project is expected to be completed in 2028 at an estimated total project cost of US$ 24 Billion. Dubai Ports International (now DP World) had recently made large investments in other ports. functions and responsibility for regulating and operating the Ports in Abu Dhabi. and the growing domestic expertise in the area of port management. 92. In late 2005. The planned changes are expected to be completed by 2013. 91. It also bid successfully to build and operate the planned international container transhipment terminal on Vallarpadam Island in India. The first phase of Khalifa Port is expected to be completed in late 2010 when the first vessel is expected to visit Khalifa Port.United Arab Emirates Page 91 Large outflows of FDI have taken place in port services. Area A of Khalifa Industrial Zone is expected to be completed. DPI took over the management of the Djibouti airport in 2003. Dubai Ports operates well over 49 international ports worldwide in 31 countries. reflecting both the availability of domestic financial resources. dry. It will comprise of industrial zones. Umm al-Nar. Zirku and Mubarraz islands handle the bulk of the UAE's crude oil and gas exports. The UAE western coast of Sharjah houses Khlaid Port and Al Hamariah Port. Port Zayed is the main gateway for container and general cargo vessels in Abu Dhabi. In December 2004. The Khalifa Port and Industrial Zone will be developed in 5 phases and will include a container handling terminal and piers for handling raw and bulk cargos. Khorfokan port is . DP World entered into negotiations with a view to purchasing P&O of the United Kingdom. In January 2005. barges and service crafts and the under construction Khalifa Port and Industrial Zone (KPIZ) comprise the major ports servicing the Emirate of Abu Dhabi. Four additional development phases have been planned for. Mussafah Port located in the heart of the industrial precinct of Abu Dhabi. as well as port terminals in Australia and Germany. tugs. Das Island. This move will increase capacity of the port sector as well as release urban land for re-development. increasing the overall throughput of the port to over 22 million TEUs and 35 million tonnes of general. KPIZ will replace Abu Dhabi's largest existing port.
bilateral air service agreements have been concluded with countries in Europe and Asia and UAE airlines have subsequently exploit sixth freedom rights. traffic coming from or destined for the home State of the carrier) ("Freedoms of Air". The UAE civil aircraft registry contained about 225 aircraft in 2009. However. connecting Europe and South-East Asia. traffic moving between two other States. 51 See "Air Carriers of the Middle East". In 2004. much of it in the form of bunker fuel. In 1976. Cement.Trade Policy Review Page 92 equipped with 1460m bays and is currently being developed for building new additional bays of 440m and depth of 16. the Authority established the company Gulftainer to manage and operate the container terminals in Port Khalid and Khorfakkan. operate.airlinedata. Ra's al-Khaimah Port Authority awarded the Kuwaiti firm KGL a US$45 million contract to build. Ajman Port. in the territory of the first State. With Singapore and Rotterdam. e. and large purchases have been made by another.htm).5m for receiving ships with 8000 containers capacity.int/icao/en/trivia/freedoms_air. 52 The sixth freedom right is defined by ICAO as the right. as well as by the launch of five new airlines. Most other activities including bunkering. Plans are under way to deepen the port. continue to be managed by the Fujairah Port under a 1982 Ordinance50. experts in the field of structural steel fabrication. Port of Fujairah Ordinance 1982. The Ajman Port Authority has also set up two dry docks to provide maintenance and repair services. Sharjah's ports are under the Sharjah Port Authority (Sharjah's Department of Seaports and Customs). fuelled by considerable airport expansion. and manage its container terminal at Port Saqr for 21 years. via the home State of the carrier. which also services Ajman Free Zone situated in the port. waste paper. Typically. serving routes between European and Asian cities with a stopover in a UAE city52. 50 49 . maintenance services are outsourced to companies such as Arab Heavy Industries Company. Fujairah Port's container activity is operated and managed by DPI (since March 2005).9 million tonnes in 2004. Bulk cargo tonnage of ships calling at Fujairah Port rose from 6.htm# Emirates. Available at: http://www. As noted.ae. Available at: http://www. The UAE's aviation industry has advanced sizeably over the past few years. and marine services Air transport services 94. Port operations are governed by the Port Act of 1977. The six UAE international airports are becoming leading regional aviation hubs. One of the strategies that has led to the development of air transport services in the UAE is the use of the UAE territory as land-bridge on intercontinental routes. marble. Gulftainer also owns one of the largest heavy transport fleets in the United Arab Emirates and a container repair company. the world's largest aircraft order was made by a UAE airline in 2003. Available at: http://www. Moreover. a number expected to double by 2013 Some 20 airlines were in operation in late 200551.g. Each emirate is fully responsible for developing its civil aviation. this partly explains the relatively large number of UAE international airports. 93. It is a combination of the third freedom and fourth freedom rights (granted by one State to another State to respectively put down and take on. tank and ship building.fujairahport. Fujairah is now one of the world's three largest bunkering centres49.icao.com/area6. UAE airlines have also exploited 96. (c) 95. and fodder. has eight berths designed to handle both container and general cargoes. It will have special facilities to handle cargoes of chemicals. and gravel from nearby quarries and factories are the main products shipped from Port Saqr in Ra's al-Khaimah. in respect of scheduled international air services.1 million tonnes in 2002 to 8. of transporting.
Maximus Airlines. Both of Emirates Airline and Etihad Airlines operate around 96 flights from UAE to Australia weekly. in respect of scheduled international air services. The UAE is an ICAO Contracting State54. Skyline and Aerospace Consortium. With 53 A380-800s on order (outstanding). to be completed by 2020.g. notably with major U.5 billion. was the world's fastest-growing intercontinental airline. the cargo division of Emirates airline.icao. granted by one State to another State to put down and take on. is responsible for the economic regulation and strategic direction of air transport in the emirate and for the oversight of safety and security. and the 17th largest in terms of cargo tonnage56. which is fully owned by the Government of Dubai. On completion it will have a capacity of 120 million passengers.000 tonnes of freight in 2003-04. 98.S. Emirates airline has also purchased large shares in foreign air companies. Major airlines and transportation services.7 million passengers in 2008. and since its creation in 1985 has grown at an annual average of over 20%. 100. November 2004. Available at : http://www. Emirates SkyCargo. A new body entitled “Dubai Civil Aviation Authority” was created by Dubai ruler decree No 21 in 2007. It operates from Dubai Airport. one of the world's five most profitable. Midex Airlines and Royal Jet. 55 Source: Gulf News : Al Maktoum International airport begins operations 56 Airline Business. Separate entities comprising Dubai Airports and Dubai Air Navigation Services were also established for managing airports and Air Traffic operations. 53 . moved more than 660.United Arab Emirates Page 93 fifth freedom rights on routes where available53. Dubai Airports officially opened DWC for cargo operations welcoming inaugural flights operated by Rus Aviation. 99. but operates in code-share on a number of routes. The new building is located next to Terminal 1 and has increased the airport’s overall annual passenger capacity to 12 million passengers. Dubai – Sydney – Auckland).int/ index. The Department of Transport (Aviation Division) (DoT). As a result. worth US$58 billion bringing the order book to 155 aircraft. airlines. it received the first A380 in July 2007. certain UAE companies are now among the dominant airlines on the New Zealand-Australia route.html. Abu Dhabi Airports Company (ADAC) opened the new Terminal 3 Abu Dhabi International Airport in the first quarter of 2009.World Central-Al Maktoum International (DWC) airport received aerodrome certification on from the General Civil Aviation Authority. to strengthen the growth of the Aviation Sector replacing the Department of Civil Aviation. The key stakeholders and operators are Abu Dhabi Airports Company (ADAC). and declared a record US$ 1. taking their total firm orders for the iconic flagship of the 21st century to 90 aircraft. Phase 1 of the Al Maktoum International Airport was completed55. There are no preferences for GCC carriers or companies in air transport. 97. On June 2010.37 billion profit. In June 2010 Emirates Airlines ordered a further 32 A380s from Airbus. Etihad Airways. The terminal is dedicated to Etihad The fifth freedom is defined as "the right or privilege. Abu Dhabi Aircraft Technologies (ADAT). in the territory of the first State. established in 2006. The airline also announced the largest order in commercial aviation history at the 2007 Dubai Air Show. Etihed Airways and Emirates are members of the International Air Transport Association (IATA). It operates services to 100 cities in 64 countries. traffic coming from or destined to a third State (e. Emirates airline. 54 International Civil Aviation Organization online information. Emirates airline is not a member of the three major international airline alliances. The order has a list price of US$ 11. such as Airlanka in 1998. Emirates airline carried over 22. A new airport Al Maktoum International is being constructed at Jabel Ali.
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Airways, the national carrier of the UAE, and has been fully operational since the end of January 200957.
In July 2003, the Abu Dhabi Government launched Etihad Airways, and wholly owned by the government of Abu Dhabi, operates scheduled passenger and cargo services worldwide to 56 destinations and operates a fleet of 45 aircraft with 111 on order, including the A380. In the financial year 2008 Etihad carried 6 million passengers and 330,000 tonnes of cargo. The airline has won many international awards for service quality, is a major component of the Abu Dhabi economy and employs approximately 6,000 personnel. Maximum Air Cargo, an ACMI operator based in AUH, operating a fleet of speciallift capable Antonov aircraft as well as several other Russian- and American-built cargo aircraft. It is currently seeking designation as a national carrier to undertake scheduled cargo flights.
Midex Airlines, based at Al Ain with a fleet of Airbus A300 Freighter and Boeing 747-200 freighter aircraft, operates a range of non-scheduled flights and plans in the future to operate scheduled cargo flights as a designated airline of the UAE. The Government of Abu Dhabi is a shareholder in several other aviation companies. Abu Dhabi Aviation, established in March 1976, is the largest commercial helicopter operator in the region, with a fleet of over 59 craft. (8 Augusta Westland AW139 - additional 13 awaiting delivery, 15 Bell 412, 19 Bell 212 and 4 Bell 206), 3 fixed-wing aircraft (3 DHC-8); employing over 748 personnel, including some 129 pilots and 221 aircraft maintenance engineers. It is 80% owned by the Abu Dhabi Government. The bulk of the company's business is in support of Abu Dhabi offshore oil, engineering, and construction companies, but also includes offshore rescue services and the aerial application of agricultural sprays and fertilizers. Other activities include medical evacuation, survey, photography, crop spraying and charter. The company has expanded its operations in recent years to other countries, including Oman, Yemen, Saudi Arabia, Spain, and Iran. Royal Jet, a luxury air charter service was launched in May 2003. It currently operates a fleet of four aircraft. A division of Royal Jet, the Royal Med service, attracts passengers travelling for medical assistance; the Royal Med air ambulance, equipped with state-of-the-art medical equipment, was launched in 2003. Royal Med now accounts for almost half of Royal Jet business. Royal Jet is a jointventure, shared equally by Amiri Flight of Abu Dhabi and Abu Dhabi Aviation.58 Royal Jet is an award-winning international luxury flight services provider headquartered in Abu Dhabi, the capital of the United Arab Emirates (UAE). It is jointly owned by Abu Dhabi Aviation and the Presidential Flight Authority, (previously known as Amiri Flight), In recognition of service excellence, Royal Jet has been voted the World's Leading Private Jet Charter by the WTA. This came just months after winning another prestigious award, Business Jet Provider of the Year, at the Aviation Business Awards ceremony in Dubai. Royal Jet's core offerings consist of luxury VIP Aircraft Charter, Medical Evacuation Service, Fixed Base Operations (FBO)/VIP Terminal at Abu Dhabi International Airport and Aircraft Management and Acquisition Consultancy. Royal Jet is a founding member of the Middle East Business Aviation Association (MEBAA), promoting the interests of the regional business aviation industry and a member of the NBAA, AVITAT, MedLink (a service of MedAir Inc.) and the Flight Safety Foundation.
Source: www.abudhabiairport.ae Source: http://www.adaviation.com
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Air Arabia, is commenced operations in October 2003 as one of the Middle East's first low-cost services. It was established by a decree issued by the Ruler of Sharjah59. The airline carried over 160,000 passengers in its first six months. Presently, it operates flights to 57 destinations across the Middle East, North Africa, Asia and Europe. The owners of the company are the Sharjah Department of Civil Aviation and the Sharjah Airport Authority (see below). In June 2007 Air Arabia transformed from a Limited Liability Company (LLC) to a Public Joint Stock Company (PJSC). In a study conducted by Aviation Week magazine the carrier was ranked first on the Top Performing Companies (TPC (Transaction Processing Performance Council, San Francisco, CA, www.tpc.org) an organization devoted to benchmarking transaction processing systems60. Flydubai is the second low cost carrier in the UAE. In July 2008 Flydubai ordered 54 aircraft worth about $ 4 billion. It commenced operations in January 2009 as the second lowcost service carrier in the UAE. Flaydubai flays to 21 destinations. In June 2010, the government of Dubai issued Law No.13/ Year 2010 amended a preceding law (No.11/Year 2008) which had set up flydubai with a capital of AED 220 million. The amendment more than doubled the capital to AED 500 million to be fully paid by the government of Dubai61. The General Civil Aviation Authority (GCAA) is a federal, autonomous body established by Federal Law No. 4 of 1996.62 It oversees all activities related to civil aviation and provides navigation services, registration, and licensing services for the UAE aviation industry. Companies wishing to conduct commercial air transport in the UAE must obtain an Air Operator Certificate from the GCAA. The GCAA proposes air transport policy general guidelines and relevant legislation to the Council of Ministers, and enforces international agreements and conventions. New foreign entrants are allowed into the market on the basis of bilateral air transport agreements. The UAE also signed open-sky agreements with the United States in April 1999, and with five other countries thereafter63. The key parameters contained in these agreements are equity and reciprocity of capacity and frequency, multi-designation, and a double disapproval tariff regime. However, the authorities have stressed that the UAE prefers an open tariff regime freely determined by the airlines. Cabotage is reserved for UAE carriers unless specifically authorized.
Amiri Decree of 3 February 2003. Source: Transaction Processing Performance Council, USA. www.tpc.org 61 Source: WAM 62 General Civil Aviation Authority online information. Available at: http://www.gcaa.ae/en/. 63 As at January 2006, air services agreements, including in some cases open-skies agreements or memoranda of understanding, were in place with: Algeria; Argentina ; Armenia; Australia; Austria; Azerbaijan; Bahrain; Bangladesh; Belarus; Belgium; Bosnia and Herzegovina; Botswana (MOU); Brazil; Brunei Darussalam (open skies); Bulgaria; Burkina Faso (MOU); Cambodia (MOU); Cameroon; Canada; Chad (MOU); Chile (open skies); China; Comoros (MOU); Croatia (MOU); Cyprus; Czech Republic; Democratic Republic of Congo (MOU); Denmark; Egypt; Former Yugoslav Republic of Macedonia (MOU); France; Gambia; Germany; Ghana; Greece; Hong Kong, China; Iceland; India; Indonesia; Iran (MOU); Iraq; Ireland; Italy; Japan; Jordan; Kazakhstan; Kenya; Kuwait; Latvia; Luxemburg; Macao; Madagascar; Malaysia (open skies); Maldives; Malta; Mexico; Morocco; Mozambique (MOU); Namibia; Nepal; Netherlands; New Zealand (open skies); Niger (MOU); Nigeria; Norway; Pakistan; Peru; Philippines; Poland; Portugal; Qatar; Republic of Korea; Republic of Yemen; Romania; Russia; Rwanda (MOU); Saudi Arabia; Seychelles; Singapore (open skies); Slovenia; South Africa; Spain; Sri Lanka; Sudan; Switzerland; Syria; Tajikistan (MOU); Tanzania; Thailand; the Separate Customs Territory of Taiwan; Penghu; Kinmen and Matsu; the United Kingdom; the United States (open skies); Tunisia; Turkey; Turkmenistan; Uganda; Ukraine (MOU); Uruguay (MOU); Uzbekistan; Viet Nam; Zambia (MOU); and Zimbabwe.
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"Wet" leasing of aircraft (with crew and, typically, fuel, maintenance, and insurance) by UAE carriers is not restricted to UAE companies or citizens.
There are no nationality requirements for crews engaged in domestic or international air passenger and freight services. However, the GCAA has embarked on a nationalization programme since 1998. This has led to an increase in the number of UAE nationals serving in the GCAA, including in the Air Traffic Control Centre, and more generally in the Air Navigation Services directorate. According to the GCAA, this policy has resulted in 54% nationalization of the GCAA's total personnel. According to the authorities, the nationalization policy does not compromise the overriding objectives of ensuring safety and quality.
Airport and related services
The UAE's six international airports vary considerably in size and capacity. Dubai, the world's 16th in terms of international passenger throughput, and 17th in terms of cargo tonnage, has become the main aviation hub in the Middle East. Abu Dhabi, 170 km away, is competing rapidly, thanks to government support and the new airline Etihad Airways, which is headquartered there. While air transport services are regulated at federal level, airports are run at the emirate level. Dubai Airport is one of the busiest in the region with over 112 airlines. Its rapid growth has been concomitant with massive expansion of the supporting infrastructure. Dubai Cargo Village hosts cargo facilities and services. In 2008, the Village handled over 1.73 million tons of cargo and 37 million passengers. In addition, work started at Jebel Ali in February 2005 for the construction of another Dubai airport on an area covering 140 km2, the largest of its kind. The new airport city at Jebel Ali will be the largest air-sea transportation centre in the Middle East. The Dubai Civil Aviation Authority controls and operates Dubai airports and has the task of raising funds to finance airport-related projects; to date, most projects have been financed by the Dubai Government. Airports and Related Services The principal airports in the emirate of Abu Dhabi are Abu Dhabi International Airport, Al Bateen and Al Ain, all of which are owned and operated by Abu Dhabi Airports Company (ADAC).
Abu Dhabi Airports Company (ADAC) – is the owner and operator of these airports and is wholly owned by the Government of the Emirate of Abu Dhabi. The present airport was opened on the mainland in 1982, 26 kilometres east of the city centre, close to the trunk route linking Abu Dhabi with Dubai. The design of the Airport is the work of Aéroports de Paris, the architects responsible for Charles de Gaulle Airport in Paris. Abu Dhabi International Airport has registered a record year in 2008, handling 9.0 million passengers, up 30% year-on-year, making it one of the fastest growing airports in the Middle East region. Meanwhile, Abu Dhabi’s cargo volume continued its strong performance last year, rising 12% to 353,820 tonnes in 2008. Against that background of unprecedented growth ADAC has completed a USD 254 million expansion with a new the commissioning of the new Terminal 3 concourse in 2009. This initial expansion will increase the airport's present capacity from 7 million to 12 million by 2008, adding 8 new aerobridges to the current 11, a second runway and a new ATC tower. The main phase of the expansion, Midfield Terminal, will open in 2014 and provide an additional 20 million mppa capacity by 2014 and ultimately 50 million mppa when the airport is fully operational. The MTC will be positioned between the two parallel run ways.
run autonomously by the Sharjah Airport Authority. ADTA is the Middle East's leading independent provider of maintenance. Non-aeronautical activities (e. Al Bateen Airport.000m2 and are supported by an extensive range of component and engine overhaul and repair workshops. ADAC is moving ahead with plans to create a free trade zone in the vicinity of Abu Dhabi Airport. Sharjah International Airport is a financially independent body. 115. Sharjah International airport is Middle East region’s leading air transportation gateway. The Airport is the first among all the airports in the Middle East to introduce Cargo Tracking System online and touch screens placed within the airport for knowing the cargo status. duty-free shops. especially for intermodal cargo arriving by sea and air-freighted onwards. Clusters of amenities will be brought in close proximity and all the required facilities will be conveniently integrated to ensure that investors receive the best service. is a major provider of aviation technical services for the commercial and military aviation industries. formerly known as Gulf Aircraft Maintenance Company (GAMCO). This was the first airport in the country. including A380. occupying 200.23 million in the first nine months of 2006 compared with the same perion in 2005. The Free Zone is an important part of the development and expansion of the airport. car rentals. fire and crash rescue. repair & overhaul with an international client portfolio stretching from Iceland in the west to Sri Lanka in the east. as well as a 100. Occupying a built area of over four million square metres.000lb thrust Engine Test Cell. a 116. test laboratories and bonded storage. The Department of Transport and ADAC are jointly developing a road map for the future development of other key airport facilities in Abu Dhabi within the framework of the Western Regional Airports Master Plan. ADTA operates several narrow and wide body hangars.United Arab Emirates Page 97 Al Ain International Airport is the second airport in the Emirate of Abu Dhabi and serves the Eastern region of Abu Dhabi with a purpose built t cargo hub facility and is an ideal base for low cost and regional carriers. Sharjah International Airport dates back to 1932 when Imperial Airways – the forerunner of British Airways – constructed an airfield in the emirate as a stopover en route to India and Australia. . After the expansion Sharjah Airport is expected to quadruple its capacity. It will ensure that Abu Dhabi International Airport will become a thriving cargo and business hub as well as ensuring ADAC’s goal of increasing non-aeronautical revenues. covering approximately 30. Following an Amiri Decree. as well as certain aeronautical services such as maintenance operations (carried out by GAMCO . Abu Dhabi Aircraft Technologies (ADTA). Today.g. It is considered as the number one cargo hub in the region and is increasingly becoming popular throughout the world as a favourite transit and destination point for passengers.see below). has recently been taken over by ADAC and is rapidly developing as centre for corporate jet operation offering rapid access to the CBD and extremely efficient ground services for this important niche market. Sharjah Airport also has a major expansion programme. the Free Zone will offer investors an impressive package of world-class facilities and services. The company’s main facilities and operations are to the south-west of Abu Dhabi International Airport. It is a popular trans-shipment point.000m2 adjacent to Terminal 3. Abu Dhabi Aircraft Technologies is a member of Mubadala Development Company. Passenger traffic jumped by 37% to 2. located in the heart of Abu Dhabi. currency exchange) are generally outsourced.
The Union Railway covers a network of up to 1. All road transport companies.000 Km asphaltpaved roads. providing as a safe. Roads and other public transport. including inter-emirate roads are regulated by the National Transport Authority and each Emirates Transport entity. opening up new trade corridors and journey opportunities. The railway will connect the UAE to Saudi Arabia via Ghweifat city in the West and Oman via Al Ain in the East. sustainable network that links all corners of the UAE. The UAE Land Transport Sector has been going through a transition period since the issue of the Federal Law No. through a safe. and eventually. This extensive investment will support the Government’s continued mission to build a diversified economy and continued economic growth. The highway network also connects UAE to the neighbouring countries Saudi Arabia and Sultanate of Oman. must be majority-owned by UAE nationals. the UAE to the wider GCC. efficient and sustainable mode of transport that will change everyday lives. as well as to form a vital part of the planned GCC railway network. The route will initially cater to freight transport. establishing Union Railway Company with a mandate to manage the development. article 4 regarding the establishment of the National Transport Authority. Union Railway’s state of the art network will enable the rapid transport of passengers and freight. The Federal Government issued Law no. Road transport companies generally employ foreign drivers. (d) Road transport 117. 118. as any other company in the UAE. efficient. to oversee a planned national rail system64.500 km stretching across all seven Emirates. This will bring diverse communities together and open up areas that were previously more difficult to reach. which connect all main cities and population centres of the country.Trade Policy Review Page 98 strategic investment and development vehicle established and wholly-owned by the government of the Emirate of Abu Dhabi.(1) of 2006. By ensuring frequent and reliable services. The NTA is tasked with developing a licensing system pertaining to land transport and granting licenses to relevant transport bodies covering all modes of Land Transport for federal inter emirates transport and international transport in accordance with UAE relevant Laws and Regulations. journey times will be substantially reduced. with a capitalisation of Dh1 billion (US$272m). 2 of 2009. though passenger services will be added in the near term. Once complete.com/ . Built to international standards. construction and operation of the UAE’s national railway.(UAE Railway Map Figure 1) 119. Figure 1 UAE Railway Map 64 Source: http://abu-dhabi-metro. The railway will be built to link the principal centres of population and industry of the UAE. The UAE has a high quality highway network comprised of about 4. it will redefine logistics and transport in the region.
is under the responsibility of the airport and port authorities of each emirate.1 billion in 2008. The work on Dubai Metro started on July 2005 and it was launched on September 2009. the UAE section is roughly 684km which is 32% of the entire GCC route of 2117km . A study is underway to build a 700 km-long railway system to link Abu Dhabi and Dubai. Most of the proposed network is expected to be underground. with the northern Emirates. By February 2010. With respect to fixed line subscribers. As of 2008. This raises important coordination issues. 4 underground and 1 at grade (street level).it cost $ 7. The telecommunications industry as a whole has evidenced substantial total growth in recent years. The retail prices for local fixed line services are among the lowest in the region and are quite affordable. This project is part of Abu Dhabi’s Department of Transport plan to invest USD 82 billion in the transport network of Abu Dhabi. Zayed Sports City and ADNEC. the UAE has achieved the highest mobile penetration rate in the world. extended the Department’s responsibilities to include land transport. are not deemed to be a deterrent to subscription applications. representing a 131% increase.com/ Source: http://dubaimetro. Yas Island. A National Committee for Port Security is responsible for the security of the main ports. The project would add to the UAE competitive edge. The General Civil Aviation Authority (GCAA) is responsible at the Federal Government level for regulation of safety and security standards and for provision of air navigation services. It is envisaged that the GCC railway will become operational by 2016. The GCC Railway link feasibility study has been completed. 65 66 Source : http://abu-dhabi-metro. The metro will mainly connect the proposed Central Business District with Sowwah Island. and as such. Emerald Gateway. DP World and Dubai airport are under the authority of the Emirate of Dubai. with 196% active subscribers.United Arab Emirates Page 99 The Department of Transportation in Abu-Dhabi plans to develop a metro rail in Abu Dhabi as part of a master public transport plan. 121. Capital City District. Saadiyat Island. The estimated number of Internet users has increased by 121% from 2005 reaching 1. given the presence of two world-class airports and two major sea ports within 150 km. the penetration rate was 32% of inhabitants at the end of 2008. including operational management.5 billion and in excess of USD 8. Each monorail station is expected to handle 1.6 billion66. Reem Island.1 million subscribers.1% at the end of 2005. in 2005 the total revenues of the sector were USD 3. which is a slight increase from the 30. The Emirate of Abu Dhabi established a Department of Transport in 2006 to oversee its maritime and aviation sectors and. in 2008. 29 stations will be operating on the Red Line with 24 elevated. The UAE has reached one of the highest telephone penetration rates in the world in recent years (Table IV. The monorail might also include 15 two-coach trains and 5-minute intervals between each service train and another Metro would be linked to Dubai Metro and to other cities in the UAE and to other GCC states. The monorail track (which is part of the metro project) is expected to be 31 Km long.8). create job opportunities and serve as a magnet for foreign investment. Abu Dhabi International Airport and Masdar. Decision-making.000 commuters. 120.eu . which includes the construction of roads and a Light Rail65. Telecommunications (iii) 124. Accordingly. 123. 122.
1482 640. mainly spurred by the growth of cell phone services.1 110.12 2008 32 196 11.49 0.12 1. mobile or internet licenses are presently available. internet.minute local call Cost of 3-minute call to the United States or France Cost of 3-minute call to Kuwait Revenues of Etisalat (US$ million) Connection and subscription charges Local and national fixed calls Revenues from international fixed calls Data/text services Leased lines Mobile communications services Expenditure by Etisalat (US$ million)c Total annual investment in telecommunications Internet usage Number of Internet hostsd Percentage of population Subscribers users from homee Subscribers users from officef Number of Internet cafésg Dial-up subscribers Broadband subscribers Peak dial-up access cost (US$/hour) Off peak dial-up access cost (US$/hour) .372 0.3 127.800 0.73 773. notwithstanding the fact that no additional fixed net.73 1. Important institutional and regulatory changes have taken place.040 54.7 47.73 2007 30. Exchange rate: Dh 3. Subscription charged quarterly at Dh 45 a quarter. Consist of dial-up.620 0. Etisalat and Telecommunication Regulatory Authority.210 379.73 1. This refers to the number of shared web hosting subscribers.27 .12 399. and leased line users. 2004-08 2004 Telephone penetration Telephone lines per 100 habitants (%) Mobile subscribers per 100 habitants (%) Total full-time staff in telecommunication services Price indicators (US$) Telephone connection chargea Monthly subscription chargeb Cost of 3.000 527.2 68.772 240.1 Free 1.01 4.4 91. In this regard. Consist of dial-up and Al Shamil users.646 56.5 4. Etisalat's profits reached USD 2.763 54.1 Free 1.Trade Policy Review Page 100 125. Both operators are responsible for paying the Federal Government a royalty of 50% of their total net profits.086 54. a b c d e f g Note: Source: Not available.49 0.155.6 10. The UAE’s present WTO commitments with respect to foreign ownership disqualify any international interest from acquiring more than 49% of either existing operator or any future entrant.73 2006 30.0 101. 29.925 0.357 129.4 106.12 1.36 billion in 2008.1 520. two full service providers (fixed net. the second operator EITC joined the incumbent ETISALAT as the UAE’s second full-service telecommunication operator in February of 2006 when it signed its telecommunication license.596 0. as the telecommunications sector in the UAE appears to be opening on a gradual basis. mobile. Table IV.4 10695 49.3 25. future liberalization must be viewed in the context of the relevant licensing and ownership restrictions which create a relatively tightly held and closely guarded market at present.8 16.49 0.27 524.1 Free 1..5 4.104 551.320 0. This is the number of Al Mawrood.1 8.8 Telecommunications indicators.759 49. etc) are fully operational compared to the 2005 situation whereby the UAE telecommunication market was a monopoly.49 0. landing station.27 1.01 4.5 10. It is important to note that both operators are partially owned by the UAE government. Connection charge includes standard telephone set.1 free 1.1 10. Etisalat's Internet café brand.5 4.49 0.4 166.27 2005 30.6725 = US$1.195 1. Accordingly.1 free 1.413 438 363.1 427. Includes the 50% royalty to the Federal Government. Currently. Business One.73 1.27 442.
129.tra. With respect to the TRA’s maintenance of a suitably competitive environment. homes and businesses. (3) of 2004. issued on 3 April 2004. broadband connectivity and IPTV services to individuals. by means of the Federal Law by Decree 3/2003 and the Executive Order No.68 Since it’s establishment the UAE government has issued Federal Law No. 127. 128. 126. the TRA has consistently taken positions which are consistent with international best practice. With respect to the promotion of efficient usage of national spectrum. 69 Source: DU : http://www. Du is the second mobile operator in the UAE. and its Executive order are available at: http://www. 68 Information on the TRA is available at: http://www/tra/ae/main.67 A new Telecommunications Regulatory Authority (TRA) began operations in November 2004.5 million active users as of 2009. and freedom of choice in the selection of suppliers of national and international connections. The TRA’s Interconnect Pricing Regulatory Policy requires that all interconnection services must be cost oriented and that Long Run Incremental Cost shall be the primary criterion for the TRA to examine such prices. It has 3. in accordance with the powers and obligations in the telecom law. distort or prevent competition. standards and costs applicable to radio spectrum. The TRA has full authority for issuing and implementing regulations for telecom services and all licensed operators. In its decisions. the TRA has issued Regulatory Policies and Procedures which ensure that the prices charged by operators are consistent with the promotion of competition – TRA policies prohibit operators from implementing any prices which are anti-competitive or could restrict. It is also responsible for the management of the frequency spectrum. 130. 5 of 2008.ae/main. The only universal service obligation (USO) explicitly mentioned in the Executive Order is the provision of free-of-charge calls to emergency services. the TRA has published a National Frequency Allocation Chart as well as a Spectrum Fees Policy which are designed to allow market participants as well as prospective market entrant’s transparent access to the processes. Providers of mobile telecommunications services are required to ensure portability of numbers. In order to adjudicate interconnection disputes.html. One of the notable amendments in this legislation is the specific grant of authority to the TRA to ensure the protection of competition in the telecommunications sector. thereby decreasing regulatory uncertainty in the industry. and carrier services for businesses. Based on this authority the TRA issued a competition regime designed to prevent and.du. and for national numbering policy. for establishing and implementing standards for type approval of equipment. Additionally the TRA has standardized the application process for spectrum allocations and made the relevant forms readily available for the public. Since the issuance of the IDRP. The TRA also has full authority on interconnection and price regulation. DU employs around 2000 staff 69.United Arab Emirates Page 101 Telecommunications services are among the few activities effectively supervised at federal level. On 2006 the Telecommunication Regulatory Authority granted a licence to Du to install operate and manage a Public Telecommunication Network and to provide Telecommunication Services. In this regard. 3 of 2003 Regarding the Organisation of the Telecommunications Sector. Federal Law by Decree No. Du offer fixed and mobile telephony. if necessary penalize anti-competitive behaviour in the telecommunications sector. the TRA has issued a set of regulations for radio spectrum. the TRA issued interconnection Dispute Resolution Procedures (IDRP) in order to create an efficient and transparent regulatory mechanism for the systematic adjudication of contentious interconnection matters between operators. several disputes have been referred to the TRA for adjudication which the TRA has responded to in relatively short periods.ae 67 .
this share has been rising71.3 billion). To this end. 132. Tourism remains the largest industry in Dubai.yahsat.4 billion (US$1. Neither the war in Iraq nor the regional political instability have affected the sector's performance. Over the next decade. Tourism services (iv) 134. accounting for a large share (12%) of GDP in 2005. The TRA is currently preparing to expand the UAE telecommunication market further through the eventual admission of more providers of telecommunications services. 135. car rallies. Telecommunications Regulatory Authority (TRA) awarded Al Yah Satellite Communications Company (Yahsat) a ten-year satellite services license for the installation. airlines. and other highly-prized sports events. In 2002. and large and varied sports and leisure projects that respond to wealthy consumers' preferences. the authorities have targeted tourism as one of the main sources of future growth in the UAE. In 2009 the TRA plans to issue 4 additional licenses authorizing GMPCS and PAMR services as well as mobile television and satellite communications. with 31% growth in the number of visitors. Internet service providers require a TRA licence that specifies the conditions and standards for their activities. the number of visitors to the UAE has grown from 1 to 6 million annually. large investment in hotels.8 billion (US$4. Among the possible explanations for this impressive performance are: large public investment in airports. This policy has been successful.ae Source For data on tourism revenues Ministry of Economy. operation and management of a satellite communications network and provision of satellite communications services in the UAE70. tennis tournaments. . Some three quarters of tourism revenues and tourist arrivals relate to the Emirate of Dubai. this result is expected to grow by 7. It is estimated that by 2015 annual visits to the UAE will amount to 14 million.2 per cent to AED15. and tourism is among the fastest growing subsectors in the country. such as the shopping festival. Over the last decade. 136. making it possible to travel to the UAE easily.8 billion) in 2005. representing an annual growth of three times the world tourism growth rate over the same period. Spending by inbound international visitors is expected to total AED6. Dubai was ranked as the fastest growing tourist destination by the World Tourism Organisation. 133. Over the past decade.Trade Policy Review Page 102 131. prestigious horse races.. and other transport infrastructure. The TRA has issued a national plan on the management of internet networks. the TRA issued several Resolutions which laid the foundation for future licensing activities underlining the UAE’s commitment to establish a transparent and easily navigable environment for potential investors to assess the prerequisite licensing requirements for entry into the UAE telecommunications market. 70 71 Source: http://www. The growth rate even accelerated during 2000-04 despite the difficult geopolitical environment.
Hotel revenues also increased by 288% in the same period.7 6. For example.0 4.United Arab Emirates Page 103 Table IV. 137.3 184.1: Saadiyat The 27 square kilometre island just 500 metres offshore Abu Dhabi city – is being transformed in a 27 billion dollar investment into a signature residential.4 Exchange rate Dh 3.3 15.ae/mop/E_home.ae/about/default. Abu Dhabi’s Government has significantly up weighted its commitment to the development of tourism in its 2030 Policy Vision with the goal of realising the Emirates potential for being a world class tourism destination.7 2. To date the growth generated has been impressive with hotel guests increasing from 959.9 4. planning. 138. In particular.0 21. It is perhaps best known for its Cultural District – which will be home to the world’s single largest concentration of premier cultural institutions.//2006 “The Dubai Property Law” was enacted which clarified and confirmed the freehold ownership of land by UAE. Dubai Tourism and Commerce Marketing (DTCM) is responsible for the promotion.dubaitourism. globally recognized. In March 2006 the Land Registration Law of the Emirate of Dubai No. Organizations such as the Tourism Development Investment Company and Abu Dhabi National Exhibition Centre have been at the forefront of some of these investments (see inset below).8 1. Available at: http://www. GCC and non-GCC nationals in certain areas designated by the Ruler.1 62.0 229 39 29 2000 265 49 39 714.2 2008 271 90 43 1. Box IV.9 Hotel indicators. as a long-term alternative to reliance on oil revenues.gov.4 1995 NUMBER OF HOTELS DUBAI ABU DHABI OTHER EMIRATES HOTEL REVENUES DUBAI ABU DHABI OTHER EMIRATES Note: 389.093.8 57. The Abu Dhabi Tourism Authority was created in 2004 with Vision of being “A leading tourism authority that is positioning the Emirate of Abu Dhabi as an outstanding. In addition.5 1’549 111. http://www. and 2008 (Number of US$ million) AVERAGE ANNUAL PERCENTAGE CHANGE OVER THE PERIOD 1995-00 2000-03 3. 2000. sustainable tourism destination. The Government. Source: Ministry of Economy.5 million in 2008. consistent pro-business policies have combined with an investor-friendly environment.0 3. Dubai is the only emirate to allow property ownership by foreigners in certain cases. individual and foreign investors have made substantial investments in the development of tourism infrastructure and events in the Emirate.8 234. the Government of Dubai has made very large-scale investments in tourism development projects (Box IV.htm Tourism services are regulated at the emirate level. Issues: Hotels.8 0.6725 = US$1. 1995.000 in 2004 to 1.1 12. while enriching the lives of the Abu Dhabi community and visitors alike ”.asp 72 Available at: . supervision.uae. These include the Sheikh Zayed National Museum. Dubai's government has been particularly instrumental in developing tourism. the Dubai Department of Tourism and Commerce Marketing online information.2 5. and development of tourism in Dubai72.1). cultural and leisure destination.
Operations reportedly began in September 2005 with about 20-25 firms. The project targets customers from the GCC. palm-shaped islands off Dubai's coast. This environmentally friendly course. a newly created free zone. the golfing legend Gary Player was commissioned to design this course. As noted by the IMF. called Capital Dubai. began providing specialized medical and healthcare services with the help of partners and investors from regional and international clinics. Dubai Internet City opened as a technology free-zone. According to the IMF. since both the operating and regulatory arms of the DIFC are subordinate to the Government of Dubai. Frank Gehry. independent of the civil and commercial (but not criminal) laws of the UAE and of the emirates. the opportunity will be there for financial innovations to exploit regulatory arbitrage and produce shifts of funds between the DIFC and the UAE. in line with TDIC’s hallmark approach to teaming up with world-class partners. The US$3 billion Palm Island project for the construction of two artificial. A number of major international firms have announced plans to participate and some key bond issuers. and Central Asia. loss of monetary control arising from the leakage of funds between the sectors is not a major issue. TDIC has also. including the World Bank. These homes are in carefully master planned neighbourhoods and will deliver a residence with a difference with great golf course and sea views. a dollar-based financial free zone designed to mirror many aspects of the London Euromarkets. and judiciary. a performing arts centre and maritime museum.Trade Policy Review Page 104 Guggenheim Abu Dhabi Museum. have committed to listing issues on the DIFX. entered the real estate sector with the sale of homes in the first phase of Saadiyat Beach. Jean Nouvel. insurance and re-insurance. back-office operations. including institutional and investment banking. A turnover of US$1 billion was expected in 2005. Zaha Hadid and Tadao Ando respectively. Saadiyat Beach is also to be home to a number of luxurious beach resorts – many of which will be run by some of the best names in the hospitality business. the Louvre Abu Dhabi. asset management. an international exchange that will trade a full range of financial instruments. is an 18 hole grass championship course – the only ‘ocean’ course in the Arabian Gulf. The Government of Dubai is progressively implementing plans to set up the Dubai International Financial Centre (DIFC). This approach has been legitimated by a constitutional amendment and a UAE federal law. both at the emirate level. media. Noted for his commitment to environmental sensitivity the result is a course which in many ways is at one with nature – using its beachfront landscape to its best advantage and including many water-saving devices. on which construction began in 2003. both deposit taking and dealing in dirham are prohibited. the governance structure holds the potential for conflicts of interest. The DIFC is to be regulated by separate enabling laws and a separate regulator. In 2004. close to luxurious beachfront resorts and all their facilities and within a short distance of the Cultural District Box IV. the Dubai Financial Services Authority (DFSA). The DIFC will encompass a comprehensive set of international financial functions. as well as entertainment and retail outlets. While fast shaping up as a global cultural hub. for instance. The islands will house residential homes and hotels. launching Dubai’s quest to become a regional hub for a host of strategic sectors. finance. East Africa. Infrastructure work . The DIFC is intended to be segregated from the domestic financial sector. Each island will have around 60 km of coastline. we engaged architectural luminaries to design their concepts – with commissions going to Lord Norman Foster.2: Selected projects in Dubai In October 2000. Saadiyat is also progressing other developments – the Saadiyat Beach Golf Course. healthcare. which allow emirates to form financial free zones. Banking operations in the DIFC are confined to institutional wholesale banking. however. inter alia. Dubai Healthcare City. Islamic finance. Again. Believing that the buildings of these world-class institutions will be as much a visitor draw as the contents. the Indian subcontinent. and the DIFX. is a by-product of the Jebel Ali harbour expansion. given the currency peg between the dirham and the dollar. and microchips. The DIFC is located in a multi-billion dollar complex of modern structures. The model was subsequently replicated for.
Available at: http://www. the Government of Dubai launched the Dubai International Financial Centre. Insurance services (a) 141.05%. as well as the only indoor skiing centre in the Gulf region. sport. there are plans to build a similar group of 200 artificial islands in the shape of the world map. Available at: http://wwwdifc. such as loss adjusters and actuaries. Value added in the insurance subsector corresponds to about 1. Financial services (v) 140. the supply of these services through a commercial presence is limited to a maximum foreign equity participation of 49% pursuant to the UAE’s horizontal restriction. consumption abroad. and IMF (2004). Dubailand is one of the world's largest self-contained tourism projects. Dubai Holding was established as a Dubai government-owned organization charged with running some of the emirate’s major ventures. The launch phase. Available at: http://www. increased to 0. insurance brokers. This represents average annual growth of 12% (in nominal terms) relative to the value in 1996. and commercial presence. the UAE has scheduled commitments on the provision of hotel and restaurant services through modes 1 to 3. Financing is mostly from the private sector.99 billion in 2007. domestic and foreign.ae. in early 2005. http://www. Other projects include the construction of the world's first luxury underwater hotel.swissre.cfm Swiss Re.2). In 2004. Per capita insurance expenditure was US$350 in 2004. offering insurance. retail. The figures are relatively modest given the country's high 73 74 Source: Clyde & Co. Oryx Real Estate online information.clydeco. Dubai Internet City. cross-border supply. 139. will extend from 2004 to 2006.dhcc. as measured by the Insurance Authority in terms of total insurance value was USD 3. covering initial infrastructure like road works and utility provision.51% in 199674. .ae.e. The main construction phase will be completed by 2010.com. banking. Dubai Snow World. and entertainment attractions. up from 1. Dubai International Financial Centre online information. insurance consultants operating in the UAE. In addition.com/knowledge/articles/new-uae-insurance-law.dubailand.oryxrealestate. Sigma. The Insurance Commission replaces the UAE’s Ministry of Economy. offering leisure. and Jumeirah Beach Residence. The Insurance Commission regulates the sector .ae. With a total investment of almost US$6 billion and an assigned space of 4 billion square feet. various issues. i. the year of the UAE's WTO accession.United Arab Emirates Page 105 on the first island was completed in 2004. "Dubailand: Investment opportunities". along with other experts in the insurance service industry. However. Total insurance expenditure in the UAE.The main purpose of the New Insurance Law is to establish an Insurance Commission which will be responsible for the ongoing regulation of the insurance industry in the UAE. of which US$291 on non-life insurance and US$60 on life insurance.65% of GDP. Expenditure. Available at: http://www. Available at http://www. Banking and financial intermediation services are regulated at federal level by the Central Bank of the UAE. which will include having responsibility for the licensing and supervision of all insurance companies. Under the GATS. Sources: Dubai Health Care City online information. whose insurance section has until now been tasked with the responsibility of regulation of this sector73. insurance services are also regulated at federal level under the authority of the Ministry of Economy and Planning.com/. as a share of total world expenditure. and financial intermediation services (Box IV. insurance agents. They include Dubailand. In addition.
75 . 51 insurance companies were licensed in the UAE. is subject to modifications but no data for 1996-2007 exists) 142. 18 insurance consultants and 11 actuaries. All assets and risks in the UAE must be insured domestically (by domestic companies or by local branches of foreign companies. Representative offices cannot engage in business or act as agents.ae 144. or by "agencies" (see below)). particularly in the life insurance business75. The authorities indicate that a few foreign companies have applied for licences under the new conditions since October 2004. In 2007. In particular. and 67 survey and damage assessment experts. rising to 25% of the staff and at least 12 persons in the fourth year"). half of which were foreign.10 Insurance premiums and claims paid. Table IV. From 1978 to 2004. The maximum foreign ownership of domestic insurance companies allowed by law is 25%. In addition. and carry out the full range of insurance business (Table IV. Cross-border supply of insurance services is not possible for companies located abroad.10). 24 foreign companies were licensed. There are also 21 UAE insurance agents (only UAE citizens can be insurance agents).Trade Policy Review Page 106 per capita income. life policies still account for only a small proportion of overall business. 145. Most companies are based in Abu Dhabi or Dubai. Today the insurance sector in the UAE is regulated by an independent Insurance Authority established under law no. 333 issued by the MOE on 25 November 2004 changed the conditions of licensing for foreign insurance companies. 174 national and 10 foreign brokers.gov. 9 of 1984 is the main law covering the supply of insurance services. such as the level of domestic demand for classes of insurance offered or whether new classes of insurance coverage are to be introduced by the applicant. the Decision specifies economic needs criteria. (This entire par. for which commercial presence is not required: UAE insurance companies can reinsure their risks from international reinsurance markets. and five foreign companies have been granted a licence as a branch. Federal Insurance Law No. The oil subsector represents a large share of insurance business. The UAE made no specific commitments in its GATS Schedule regarding insurance services. Ministerial Decision No. UAE-based companies can insure risks located abroad. Insurance Authority: www. the Decision requires the appointment of a minimum number of UAE nationals as staff ("10% of the staff and at least two persons in the first year. 6 of 2007. 2007 (US$ million) Total Type of insurance Claims Car Cargo and transport Fire Theft Life Others Total 558 126 261 1 235 475 1656 Premiums 990 450 424 2 724 1397 3987 Claims 431 99 208 0 52 391 1180 Premiums 695 349 332 2 166 1132 2675 Claims 128 27 54 0 183 84 476 Premiums 295 101 92 1 558 265 1311 UAE companies Foreign companies Source: UAE Insurance Authority 143.ia. but are rapidly increasing. This does not apply to reinsurance services.
all 52 banks operating in the country met the minimum 10% capital-assets ratio. and up to September 2008. There are 24 national banks (of which 8 are Islamic banks).4% at end 2008. and Dh 4 million for life insurance with a local bank. Eligible foreign insurance companies can either open a branch and appoint a local insurance agent or enter into an agency contract with a local insurance agent representing them. The applicant must specify the expected over all volume of retention within the UAE market. 148. but considerable provisions for loan loss coverage (94. with assets and deposits increasing at double digit rates on average between end 2005 and September 2008. The general manager. appoint a “local service agent”. Profitability of banks remained strong in 2007. No taxes or stamp duty are levied at federal or emirate level on settlements from life and non-life insurance. Local insurance companies wishing to establish in an emirate must first apply to the Insurance Authority for application approval. Combined life and non-life or noninsurance-related operations are not allowed. and are well distributed across industries.5%) bring the net NPL ratio below 1%. the authorized manager and the senior employees of the insurance company must have suitable qualifications and experience in the insurance business. 147. there are 92 licensed representative offices of foreign banks and financial institutions. his function is to assist the company according to the local service agency agreement. . 150. the foreign branch must in addition. foreign companies may also supply the UAE market through the appointment of a local agent to represent them and market their products (as distinct from the local service agent employed by the branch).7 million). 2008.United Arab Emirates Page 107 146. A copy of the agency agreements between the company and the local agent must be submitted to the Insurance Authority and the agent must be registered at the IA. At September 2008. The UAE has a large financial subsector relative to its size and population (Table IV. The manager of a foreign branch must be resident in the UAE. Both domestic companies and foreign branches must have minimum fully paid-up capital of Dh 50 million (US$13.11). As noted. and must deposit Dh 6 million for non-life. The local authorities issue the trade license according to the above mentioned federal approvals.7% (tier 1 capital to assets ratio) for the subsector as a whole. The gross non-performing loan (NPL) ratio was relatively high at 2. (b) Banking 149. The UAE banking subsector is also generally sound and profitable. and this ratio exceeded 11. the UAE had 52 commercial banks. With 681 branches as at Sep. despite temporary setbacks that resulted from the global financial crisis: in September 2008. There are also 28 foreign banks (with 117 branches). then to the Securities & Commodities Authority (SCA) for Establishment procedure. In addition. Bank loans have grown substantially. then to Insurance Authority for licensing and registration. on insurance companies.
This law establishes five principal categories of institutions: commercial banks. including branches of foreign banks.4 111.1 212.8 22. Not including loans to banks.2 13.ae/mop/UAE_figure/UAE_%2003.3 234.1 87. financial intermediaries. financial establishments. Since 2007 – 2008 the Central Bank of the UAE has licensed three new foreign commercial banks. Available at: http://www.0 120.8 63.3 127. messengers.9 77.4 26. Available at: http://www. 151. 77 UAE Central Bank online information. and thus lifting the moratorium on the licensing of new foreign banks which was in effect since 1981.7 141.7 27.5 137. Membership.7 47.6 19. Foreign banks are required to have the legal form of a branch. which is not compulsory.9 452 21 431 106 25 81 2007 77.8 13.4 20.5.htm The Emirates Banks Association.4 11.eba-ae.7 173. or 10% of risk weighted assets in the UAE. and guards.0 53. 18 are foreign banks and one representative office.4 88.1 16.gov.2 194. 152.1 63.com/ [19 September 2005].9 41.6 236.0 177. and monetary intermediaries. Banking and financial intermediation services are regulated at federal level by the independent Central Bank of the UAE77. .0 18.9 21.8 8. Including pay offices.Trade Policy Review Page 108 Table IV. 76 Emirates Banks Association online information.2003 Not including inter-bank deposits. Every commercial bank. 10 of 1980.9 98.7 393. licensed and regulated by the Central Bank.6 16.6 333. must have a minimum paid-up capital of Dh 40 million (US$10. whichever is greater.0 260. Available at: http://wwwcbuae. investment banks.9 7.6 170. founded in 1982.7 87. each of which must be licensed by the Central Bank.11 Selected monetary and banking indicators.6 15.4 17. 2005-08 (US$ billion unless otherwise specified) Indicators Central Bank of UAE Total assets/liabilities Foreign assets and gold holdings Notes and coins issued Banksa Total assets/liabilities Foreign assets Foreign assets to total assets (%) Foreign liabilities Foreign liabilities to total liabilities (%) Depositsb Residents Non-residents Bank credit (net)c Residents Non-residents Total number of national banks and branchesd National banks National branches Total number of foreign banks and branchese Foreign banks Foreign branches Number of workers in banks (in UAE)f a b c d e f 2005 21.4 23.1 5. customer service units and automated branches Including a pay office and customer service units Excluding drivers. 153.uae.1 27.8 681 24 657 145 28 117 Including a restricted licence bank until 31.6 6.0 530 22 508 108 27 81 September 2008 50.6 104. covered 42 banks at end 2008 of which 23 are national banks.2 27. Source: UAE Central Bank online information.0 241. Similar exemptions have also been given to some GCC banks.ae [19 September 2005]. under Federal Law No. However most branches of EU and US banks have been given permission to exceed large exposures limits based on their global capital.0 48.0 391 21 370 108 25 83 2006 28.gov.9 million).6 189. aims to represent and defend the interests of its domestic and foreign member banks and to exchange information regionally and internationally76.1 24.7 11.
made commitments on all banking and other financial services as specified on the Central Products Classification list. with limitations. The UAE has bound measures on all these services for cross-border supply and consumption abroad without limitation. however. The legislation differs from emirate to emirate. 10 of 1998 effective January 1999. requires all banks to increase the number of UAE-national staff by 4% annually. 155. 22 finance companies. Additionally. There are no restrictions on the presence of foreign senior staff in foreign banks. there were 19 financial investment companies (of which three were foreign). Capital must be at least AED 30 million. Foreign banks pay a 20% local emirate tax on profits in each emirate78. There are no nationality restrictions in the DIFC. the Dubai International Financial Exchange (DIFX). management. Twenty nine of the 135 companies in the SCA register are foreign. The UAE's two securities markets were established in Abu Dhabi and Dubai in 2000 under Emirate laws. within the Dubai International Financial Centre (DIFC) free zone. and to expand activities of existing financial entities. Council of Ministers Decree No. The DIFC regulations offer foreigners a business environment that is free of restrictions and limitations that appear in UAE laws and regulations. Measures affecting mode 3 supply (commercial presence) remain unbound for new licences to operate bank branches. according to the authorities. membership and supervision of the financial markets and brokerage firms. compliance with these regulations has not been achieved by many banks.United Arab Emirates Page 109 154. There is no moratorium on the licensing of new financial institutions or on establishing branches of existing ones. Due to the demographic structure of the UAE. The number of finance companies licensed to operate in the UAE rose to 24 in 2009 from 22 in 2008. 157. although the rate of 20% applies in all emirates. There is also a securities market. In 2008 the SCA issued a regulation authorizing foreign firms that are licensed from peer authorities in their respective countries to operate in the UAE. Brokers wishing to operate on the UAE exchanges must have at least 51% national ownership. 15 financial intermediaries dealing in currencies and commodities as money market transactions (Forex dealers). the UAE has. All banks in the UAE are required to employ a minimum of 10% UAE nationals in total staff (excluding auxiliary staff) as per Central Bank regulations. the Central Bank and other authorities continue to encourage adherence. Source: UAE Central Bank Annual Report 2009 www. Listed securities are tradable via brokers only. except for the horizontal limitation of 49% maximum foreign ownership. this exception was due to the absence of a stock exchange in 1996 when the UAE became a member of the WTO. nor is the acceptance of deposits in any currency from a natural or juridical person in the UAE. 156. transacting business in dirhams is not permitted.ae 78 79 . In its specific commitments under the GATS. They are regulated by the Securities and Commodities Authority (an independent body. Brokerage firms are required to produce an AED 20 Million bank guarantee The total number of licensed brokerage firms stands currently at 99. 4 of 2000 established with the aim of regulating the licensing. whereby UAE nationals represent only approximately 9% of the total workforce. with its own regulator. The two new companies licensed during 2009 were Abu Dhabi Commercial Islamic Finance Company and Siraj Finance Company79. However. with the exception of settlement and clearing services for financial assets. chaired by the Minister of Economy) under Federal Law No. and two investment banks. SCA regulations permit foreign firms to list their securities in these markets after having satisfied certain requirements. 13 financial consultancies (all locally incorporated).centralbank. (c) Financial intermediation services At the end of 2004.
Since the DGCX is a financial free zone. In practice. obtain a professional licence from the government of the emirate in which they intend to operate. medical services. The DGCX commenced trading in November 2005. Trade in business and professional services 159.Trade Policy Review Page 110 158. The local service agent holds no share in the firm and does not interfere in its management. as well as the power to license under the same conditions both foreign and domestic firms. In its GATS schedule of specific commitments. foreign broking and trading companies can operate freely. there is only one commodities exchange in the UAE. Regulations on investment funds are set out in Central Bank Resolution No. the licensing procedure is in two stages: operators first apply for membership to the DGCX. Foreign professionals are permitted to practice business services and professions such as auditing. legal practice and consultancies. It is regulated and supervised by the SCA. 80 The movement of natural persons. The new law will give SCA the jurisdiction authority over most financial services as per best international practice. engineering. it does not cover permanent employment of foreigners in domestic firms. such as assisting in obtaining and renewing work permits issued by the Ministry of Labour. companies are given initial approval. However based on public and market interest considerations the Board of Directors of the SCA has the discretional power to exempt local and foreign companies applying for licenses from certain conditions. The SCA has finished drafting in 2009 a new law that authorizes it to regulate securities and commodities services including investment funds and financial portfolio management that are currently regulated and supervised by the UAE Central Bank. Investment funds/products must be marketed by a Central Bank licensed financial institution (bank or securities market). for certain taxation services. and long-term employment of foreigners80. financial conditions. and the information is passed to the SCA for final approval. suppliers are particularly favoured by the liberal conditions regarding both the movement of natural persons (Mode 4 in GATS terminology). is temporary by nature and is executed only for a very particular purpose. home regulator and suitability to act as brokers or traders in a commodity futures market. The DGCX is a joint venture between the DMCC and two Indian companies. and have signed a service agency contract with a local services agent that is a UAE national. 91% of the UAE work force is foreign. As trade in business services in general. Currently there are 106 foreign brokers operating at the DGCX. All companies must nevertheless have a principal centre of administration in the UAE. as understood under the GATS. 164/8/94. auditing and book-keeping services. The UAE's labour market is generally open to foreigners. provided they hold a valid UAE residence permit. 162. and commercial presence (modes 1-3) for accounting. The fund manager must be a company licensed by the Central Bank. . for 161. and other government authorities. the UAE has bound measures affecting cross-border supply. nor the conditions for foreigners to work permanently in domestic industries. An agent's duties and obligations towards the foreign professional are limited to facilitating the practice of an activity in the emirate. computer consultancies and similar services under “sole proprietorship” businesses. relies to a large extent on movement of physical persons. and the contract has been authenticated by the notary public. and professional services in particular. directors. which operates from the Dubai Metals and Commodities Centre (DMCC). (vi) 160. the Dubai Gold and Commodities Exchange (DGCX). the latter can permit foreign companies to set up branches or representative offices. which requires full disclosure as to ownership. Currently. consumption abroad.
including advocates. and counsellors. Foreign lawyers cannot appear in the Supreme Federal Court and Courts of Cassation. In principle. 164. 81 . Accounting services are regulated at federal level. provided that they obtain a professional license from the relevant authorities of that emirate. 2 April 1996. who signs the books). except for the emirates of Dubai and Ra's al Khaimah: to practice advocacy in the emirates of Dubai and Ra's al Khaimah. 23 of 1991. enabling them to operate in an emirate other than the one in which they are registered. the Ministry of Justice has been putting pressure on law firms to meet the requirements of the emiratization policy (section (b) below and Chapter I(1)). Law firms must be 100% owned by UAE nationals. have 15 years of experience and meet conditions of good reputation. A foreign lawyer must obtain a permit from the Ministry of Justice. A modified version of the above mentioned Federal Law has been drafted and sent to the Cabinet for discussion and approval. Foreign lawyers may represent clients in the court of appeal and the courts of first instance. and for veterinary Legal services. Law firms are allowed to seek assistance from foreign lawyers in so far as the work assigned to the latter does not consist in representing clients in the Supreme Court and the Court of Appeal. services81. Accountants benefit from free movement within the country. Advocates are free to move within the country once they obtained a licence. WTO document GATS/SC/121. Establishment is regulated at the federal level. the Ministry of Justice registers the applicant as a lawyer and allows him to practice. but only as an employee of the local law firm. This ownership requirement applies in all the emirates. 22 of 1995 and relevant ministerial decisions cover auditors and certified accountants. 23 of 1991. concerning the Advocates Ordinance and Amendments thereof. Their permits shall not be withdrawn unless they break their professional obligations set established by law. a local licence is required. for both foreign and local lawyers are renewed annually. and local law. lawyers. Licences.g. such that requirements concerning law firms equally apply in all the emirates. Federal Law No. There is no prior residency requirement. The request for a licence is presented to the Ministry of Justice through the local law firm. (a) Legal services 163. regulates the advocacy profession in the UAE. Dubai regulations require lawyers to have an office in Dubai in order to appear in a Dubai Court. and can represent clients in the court of appeal for a maximum of four years. Federal Law No.United Arab Emirates Page 111 architectural. The conditions for withdrawal are identical for local and foreign lawyers. they can be revoked only for professional reasons. The international financial reporting standards (IFRS) are applied by some special branches of foreign auditing companies in the UAE. The lawyer must be registered in the bar of his home country. As a rule. foreign lawyers can offer legal advice on foreign. which requires a diploma from a foreign professional body recognized by the Ministry of Education. are regulated both at emirate and federal level. Firms of legal consultants may not represent clients before courts Recently. If all procedural conditions are met. concerning the Advocates Ordinance and Amendments thereof. for each activity. international. urban planning and landscape services. (b) Accounting and auditing services 165. engineering. both firms and individuals. the physical rather than the moral person is licensed (e. In the five emirates applying Federal Law No. The UAE does not have a Bar Association. and in the court of first instance for a maximum of eight years.
Auditors are not obliged to register with the AAA. Foreign accounting firms have been able to practice audit and accounting services freely in the UAE. This requirement also applies.). The professional body for accountants in UAE is the Accountants and Auditors Association (AAA). Since the introduction of the emiratization policy in 1997. the Institute of Chartered Accountants in England and Wales. Each foreign branch is 100% foreign-owned and have several sub-branches operating in the various emirates. 65 local firms and 12 foreign firms operate in the UAE. the partnership contract should be notarized by the official authorities. travel. but the situation is changing. 7 of 1997 Regarding the Registration of Foreign Offices and Companies in the Register of Auditors. As noted. 82 . Foreign engineering firms and professionals are allowed to practice in the UAE. in principle. Some 263 foreign individual auditors. sickness. It was established in 1997 by a Resolution of the Ministry of Labour and Social Affairs (No.Trade Policy Review Page 112 166. 167. are performing the three years of supervised professional practice required to qualify as an auditor in the UAE. to firms established before 1995. In all cases the firm must be established as solidarity company. (c) Engineering services 172. no foreign accounting firm has been established since 1995. on the major specialized construction projects. 83 Council of Ministers Decision No. having completed the theoretical part of the education. The professional body for accountants in UAE is the Accountants and Auditors Association (AAA). 227/97). Auditing firms must meet the following conditions: one of the partners or managers must be a UAE national registered as a practicing auditor in the Registry. Auditors are not obliged to register with the AAA. and trainees. 366/4 of 2005. three years of experience in accounting. foreign ownership in new foreign firms establishing in the UAE is limited to 75%82. and fellowship or five years of registration with an auditing professional body recognized by the Ministry of Economy (e. The engineering profession is regulated at emirate level. to find local partners in that proportion83. 171. 227/97). If one of the partners is a firm established outside the UAE. There are three forms through which a foreign engineering consultant or contractor can Ministerial Resolution No. GCC citizens are treated as UAE citizens for the purpose of this requirement. which have been given a transition period. etc. non-practicing auditors (study. The Register includes local GCC and other foreign natural persons and firms. 168. the latter in the form of branches. 264 local (or GCC) individual auditors. There are three categories in the Registry: practicing auditors. 170. and all partners should be registered in as practicing auditors. All of the foreign companies were established under legislation in place before 1995. Registration conditions for foreigners include a university degree in accounting or an equivalent degree. foreign firms must have a local services agent. that foreign firm must hold a certified licence for practicing as an auditor in its country of registration. currently until 2010. 169. It was established in 1997 by a Resolution of the Ministry of Labour and Social Affairs (No. The latter is for nationals who. and evidence of a partnership with a UAE citizen or company or a certificate of employment therewith (all mentioned cases must be registered in the auditors schedules in the Ministry).g. Trainees receive a monthly remuneration amounting to Dh 5. the American Institute of Certified Public Accountants or the Canadian Institute of Chartered Accountants).000.
a licence for the practice of engineering consultancy requires the applicant to be a fully competent UAE national. foreign engineering contractors can be invited to tender without having to incorporate locally. and carried out a number of projects of large technical and financial value. conditions for supplying engineering services are similar across the emirates.United Arab Emirates Page 113 operate: a joint-venture with a local firm. a partnership with a local engineering firm. of good conduct and reputation. assisted by a number of assistant engineers (consistent with the volume of the current works assigned to the firm) with no less than seven-years experience. According to the Order. or a partner in any of the contracting companies or in building materials trading companies84. Article 4 of Local Order No. The firm's manager must be registered in the registry for engineering consultancy profession and have no less than 15 years of experience in the practice of the profession. be led by an engineer with no less than 15 years in the specialization. information was available only for the Emirate of Dubai. to have at least three years of experience in the specialized field after obtaining the university degree. local and foreign. According to the authorities. According to the Dubai Municipality conditions. Licensing of the foreign branch is limited to the fields of specialization not commonly provided by local engineering firms. in engineering from a recognized university in one of the engineering fields for which the licence is requested. The foreign branch must have technical staff for each of the licensed fields of activity to be practiced. 89 of 1994 on Regulating the Practice of the Engineering Consultancy Profession in the Emirate of Dubai. However. All engineers. In certain cases (large projects). 84 . The head office of the foreign firm should have existed for not less than 15 years. to hold a BSc. 175. 173. The Order regulating the profession in Dubai also requires that the applicant is not an owner of. the head office must undertake to appoint the required staff to reside in the emirate. 174. and to be a member of the engineers' association of the country of study. or a foreign branch (with a local service agent). must be registered with the Engineers Society of the UAE. a foreign engineering branch office is defined as the branch established in the emirate by one of the foreign specialized engineering firms.
United Arab Emirates
WT/TPR/S/162/Rev.1 Page 115
REFERENCES ADNOC, Annual HSE Reports 2008, Abu Dhabi. Available at: http://www.adnoc.ae Al-Karasneh and Fatheldin (2005), Market Structure and Performance in the GCC Banking Sector: Evidence from Kuwait, Saudi Arabia and UAE, AMF Economic Papers No. 11, Arab Monetary Fund, Abu Dhabi, March. Arab Advisors Group (2005), Competition Levels in Arab Cellular Markets and Privatization levels in Arab Cellular and Fixed Markets, Telecoms Strategic Research Service, 19 September. Available at: http://www.ameinfo.com/68539.html. Central Bank of the United Arab Emirates (2009), Annual Report, 2009. Available at: http://www.centralbank.ae/. Economist Intelligence Unit (2009). Country Profile 2009, United Arab Emirates. Available at: http://www.eiu.com. Environmental Agency Abu Dhabi. Annual Fisheries Statistics Report Abu Dhabi Emirate 2009. Water Resources Statistics 2006, Abu Dhabi. http://www.ead.ae. European Commission, The EU and the GCC, Brussels IMF (2010), Regional Economic Outlook: Middle East and Central Asia. Available at: http://www.imf.org. IMF (2010), Staff report for the 2010 Article IV Consultation February 18, 2010. Available at: http://www.imf. org/ IMF (2005a), Article IV Consultation – United Arab Emirates, Staff Report, Washington D.C. IMF (2005b), United Arab Emirates: Selected Issues and Statistical Appendix. http://www.imf.org/external/pubs/ft/scr/2005/cr05268.pdf [22 September 2005]. Available at:
Ministry of Economy (2007), Report on the Insurance Sector Business in the United Arab Emirates. Ministry of Economy (2004), Study on the Development of Agricultural Sector and its Future 19952000, Abu Dhabi. Ministry of Economy (various issues), Statistic Abstract in the United Arab Emirates. National Media Council, United Arab Emirates Yearbook (various issues), Environment Agency – Abu Dhabi, Water Resources Department, Integrated Vision for Water Resources and Environment for UAE, Abu Dhabi (various issues),. National Human Resource Development and Employment Authority (2005), United Arab Emirates – Human Resources Report 2005, Abu Dhabi. OPEC, Annual Statistical Bulletin (various issues). Available at: http://www.opec.org U.S. U.S. Commercial Service : Your Global Business in United Arab Emirates – A Country Commercial Guide for U.S. Companies. Available at: http://www.buyusainfo.net/
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U.S. International Trade Administration , Government Procurement Regulations – United Arab Emirates. Available at: http://web.ita.doc.gov. UNCTAD (various http://www.unctad.org.
UNCTAD (various issues), World Investment Report, Geneva. UNDP (various issues), Human Development Report, New York. World Bank (2002), Completing the GCC Customs Union, 6 June. Available at: http://lnweb18. worldbank.org.
492 43.029 686.016 184.108.40.2060.870 261.546.867 145.743 555.417 15.764 60.734. China Malaysia Other Asia India Pakistan Australia Indonesia Memorandum: EC(15) 90638000 2005 115452992 2006 142504992 2007 156634000 2008 210000000 581.745 75.164 103.702.145 1.996.964 426.199.600 8.284 47.040 3.290 1.697 242.448 34.425.736 299.040 55.518 58.704 724.635 288.604 59.833 1.651 1.031 269.824.071 91.242.363 5.784.097.783 857.552 4.230.006.122.588.049.561 241.649.639.850 92.700 5.131.026 310.757 201.401 1.204 368.653 819.664.210 366.522 175.965 968.926.325 435.510 520.611 13.742.380.034 665.711.815.308 288.161.553 69.395.597.690.319 4.931.248 815.163 543.124 1.889.334.851 502.342 2.682.841 259.002 255.425 19.868.703 509.371 36.252 302.662 76.507 475.045 474.397 4.656 4.403.993 64.116.000 450.997.597 251.088 39.958 338.767.957 2.170 127.639 45.346.123 12.004 374.233 1.261 719.535 126.345 1.043.060 13.969 2.641 1.527 848.983.396 723.533.922 744.374 133.United Arab Emirates WT/TPR/S/162/Rev.414 5.060 18.195 85.1 Destination of exports (including re-exports).753 6.596 1.700.487 59.833 515.600 1.781 809.267 565.486.002.910 459.727 8.789.259.756 2.018 23.132.385 854. .952.288.583 89.508.1 Page 117 Table AI.840 17.712 325.182 1.462 339.092 89.287.880 92.184 1.555 22.890 11.872 1.386.956 12.635 304. of Singapore Chinese Taipei Hong Kong.734 17.780 122.439 794.542 239.184 27.845 9.915 796.456 147.311 71.454 7.469 436.365 305.718 201.409.610 314.333 3.435.447 887.839.772 139.052 1.616.677 3.563 Source: International Trade Centre.004 110.679 1.067 727.185 3.142.049.488 283. 2004-08 (US$ thousands) 2004 Total America United States Other America Europe EC(27) Belgium United Kingdom France Netherlands Germany Italy Denmark EFTA Other Europe Commonwealth of Independent States (CIS) Africa Kenya Middle East Oman Yemen Qatar Asia China Japan Six East-Asian traders Korea.236 1.385 16.386 21.124 68.813 3.493 15.925 420.072 17.465 703.198.387 383.126 699.448 120.218 14.185 75.874.785. Rep.638.325 380.025.568.444.308 22.212.349 2.676 596.269 83.703 194.086 210.599 213.885.392 4.405 271.345 1.763 1.567.578 15.301 84.754 273.607 644.406 3.810.810 9.678 5.453 13.162 921.294.675 498.801 917.595.937 752. based on Trade Map database.554 87.773.619 63.082 497.
703.450 80.360 997.078.865 22.621 48.855 4.408.001.872 2.114 808.456 1.814.161 2.120 4.231 4.503.676 1.873.028 765.138.510 20.535.321.919.981 5.750 12.443.308 971.202.716 4.980 8.497.499.502.262 705.424 1.793 1.603 8.551.254. Rep.566 175.072 11.270.854 2.983.098.624.067 649.012 2.761 21.172 8.393.651 1.404 10.785.702 731.862.112.134 3.565.999 4.234 8.056 33.039 2.141.571.214.284 11.091 9.072.1 Page 118 Trade Policy Review Table AI.580 2.242 5.474.718 816.614 3.431.018.175 40.701.235 14.940.890.800.599 50.356.766 102.811 5.574 1.850.280 34.876 1.8220.127.116.110.328.607.810 1.015.089 18.890 1.738 874.723 8.641 1.150 1.993 3.246 21.188.504 11.776 15.307.003 984.066 36.769.822 1. China Singapore Malaysia Chinese Taipei Other Asia India Pakistan Australia Indonesia Memorandum: EC(15) 2005 2006 2007 2008 72.485.025.268 606.892.377.079.044 898.017 7.501.088 6.610.653.002.004 671.360 12.863 18.104.22.1681.720.623 685.321.016 6.006.291 7.929 127.394 4.114 5.289.025 574.659 2.367.431.107 3.258 54.045 3.876 2.486 524.792.170 1.784.922.214.171.1242.809 80.158 29.788 607.849.001.235 520.805 955.983 8.310 1.945. 2004-08 (US$ thousands) 2004 Total America United States Other America Brazil Europe EC(27) United Kingdom Germany France Italy Netherlands Finland Belgium EFTA Switzerland Other Europe Turkey Commonwealth of Independent States Africa Middle East Oman Asia China Japan Six East Asian Traders Korea.312.644.797 643.637 2.404 5.904.695 990.108 1.159 1.167.769 447.932 1.200 3.300 5.878 1.166.063.000 5.175 580.677.873.405.731.002 17.531 1.488 50.618 1.512 12.584 1.479.419 22.974 26.193 27.494 6.531 1.327 38.114 1.228 Source: International Trade Centre.017 5.448 1.645 3.509.134.754.012. of Hong Kong.WT/TPR/S/162/Rev.184 1.545 1.662 18.071 3.243.793.2 Origin of imports.936.833.098.182.198 1.598.751.776 3.650.772 2.737.805 6.598 4.101.885 1.416.796 2.072.073.820 1.835.410 18.924 30.837 4.951 17.405.099 25.959.236.107 16.863.653 32.397 903.241 3.680 4.060.160 1.406 1.628.500 678.619 2.271.600 8.247.104 19.764 2.490 205.957 27.392.206 2.918.328 856.404 2.719 27.031.049 607.406 1.766 6.920 1.376.237 1. based on Trade Map database .899 975.740.200.428.476.000.110 97.838 5.339.765.060 7.326 5.958.440 1.815 2.028.292.015.835 649.515.093 1.825 2.084 25.313.169.950.310 3.696 15.922.770 1.885.120.017 5.128.484.404.361.783 850.657 46.268 23.663.038 778.403.632 7.306 1.356.576.
0 0.7 0.0 4.0 3.8 0. stone.8 4. spirits and vinegar Residues and waste from the food industries.0 0.4 1. not elsewhere specified Live trees and other plants. vegetable products Animal or vegetable fats and oils and their cleavage products. slag and ash Mineral fuels. maté and spices Cereals Products of the milling industry.6 5. not elsewhere specified Products of animal origin.0 0.0 5.0 0.1 Page 119 Table AIII.0 4. pastry Preparations of vegetables.0 2.0 5.143 48 81 127 44 32 15 76 75 34 22 86 73 30 15 61 38 38 20 53 105 41 40 32 20 100 37 77 226 424 40 31 78 69 50 32 10 42 89 153 118 38 43 Range (%) 0-100 0 0-5 0-5 0-5 5 0-5 0-5 0-5 0-5 0-5 0-5 0-5 5 5 5 5 0-5 5 0-5 5 0-5 5-50 0-5 100 5 5 5 0-5 5 0-5 5 5 5 5 5 5 5 0-5 5 5 5 5 160937 1084212 248323 893857 2124 43902 725791 954809 659549 1966958 87826 564339 19299 5149 787180 163497 327964 228458 370300 366997 494941 327216 72572 209263 995258 358267 1770444 1379751 1004691 1037008 48413 540484 1738860 373093 94560 20421 143722 870246 3392712 1465626 19117 465334 Table AIII.5 2. perfumery.1 (cont'd) .5 0. molluscs and other Dairy produce.5 2. nuts Miscellaneous edible preparations Beverages.0 5.0 1. natural honey.0 5.5 0. resins and other vegetable extracts Vegetable plaiting materials.0 0.0 0.9 5. edible products of animal origin.0 5. starches.0 5.4 0. pyrotechnic products.United Arab Emirates WT/TPR/S/162/Rev.7 3. insulin.0 0.0 Std-dev (%) 5.8 0. cosmetics Soap.0 5.9 0. of lines 7.7 0.0 0. mineral waxes Inorganic chemicals. starch or milk.1 0.3 3. pigments. gums. fruit. sulphur.0 4.3 2.5 0.0 0. lime and cement Ores.0 0. tea.0 5. misc grains. paints Essential oils. flour.0 2.0 2.0 5. peel of citrus fruit or melons Coffee.0 5.0 0.0 0. matches Photographic or cinematographic goods Miscellaneous chemical products Plastics and articles thereof Rubber and articles thereof Hides and skins (other than fur skins) and leather Articles of animal gut (other than silk-worm gut) No. roots Edible vegetables and certain roots and tubers Edible fruit and nuts. malt. prepared edible fats Preparations of meat. fodder Tobacco and manufactured tobacco substitutes Salt. of fish or of crustaceans Sugars and sugar confectionery Cocoa and cocoa preparations Preparations of cereals.0 5.0 5.0 0.0 1.0 0. modified starches Explosives.2 0.1 Applied MFN tariff averages by HS2.8 4.0 5.0 5. mineral oils and products.7 5.0 0. wheat gluten Oil seeds and oleaginous fruits.0 5.0 0. 2008 Average tariff (%) 5.5 2.0 0.0 Imports 2008 (US$ million) 175485696 HS Chapter and description Total/Average 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 Live animals Meat and edible meat offal Fish and crustaceans.2 2.0 5.0 5. seeds Lac.0 0.5 3. organic surface-active agents Albuminoidal substances.3 0.0 0.0 0. bulbs.5 2.3 2.3 5. organic or inorganic compounds Organic chemicals Pharmaceutical products Fertilizers Tanning or dyeing extracts.9 20.4 0.0 3.8 2.1 5.9 5.8 21.0 4.8 100. birds' eggs.
0 5. special yarns Carpets and other textile floor coverings Special woven fabrics.0 0.0 0.0 5.WT/TPR/S/162/Rev.0 5.0 1.5 5. of esparto or of other plaiting materials Pulp of wood or of other fibrous cellulosic material Paper and paperboard.0 0.0 5.0 5. coated.0 0.0 5.0 0.3 0.0 5.0 5.0 3.3 Range (%) 5 5 5 5 5 5 0-5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 0-5 5 5 5 5 5 5 5 5 5 5 5 0-5 5 5 0-5 0-5 0-5 Std-dev (%) 0.0 0.0 0. asbestos Ceramic products Glass and glassware Natural or cultured pearls.0 0.0 5. fine or coarse animal hair. boats and floating structures No. machinery and appliances Electrical machinery and equipment and parts Railway or tramway locomotives.5 2.6 2.0 0. cutlery. parts of such articles Headgear and parts thereof Umbrellas.0 0. rolling-stock Vehicles other than railway or rolling-stock Aircraft.0 0.1 (cont'd) .0 Imports 2008 (US$ million) 38778 1265136 28613 12814 57716 1061760 233161 51388 17549 159746 13224 1094158 409454 110008 184618 190446 78468 130419 1087103 0.0 5.0 5.0 5.0 0.0 5.0 5.0 5.0 0.0 5.0 0. plaster. wood charcoal Cork and articles of cork Straw. and woven fabric Cotton Other vegetable textile fibres.0 0.0 5.0 0. of base metal Miscellaneous articles of base metal Nuclear reactors.0 0. boilers.0 5.0 0. newspapers.0 2.0 0.0 0.0 5.0 5. cement.0 5.0 5.0 5.0 5.0 5. etc.0 0.0 0. knitted or crocheted Articles of apparel and clothing accessories.0 5.0 5.0 5.0 0.0 0.0 5. cermets.0 0. articles thereof Tools. covered or laminated textile fabrics Knitted or crocheted fabrics Apparel and clothing accessories.5 5.0 5. walking-sticks. jewellery Iron and steel Articles of iron or steel Copper and articles thereof Nickel and articles thereof Aluminium and articles thereof Lead and articles thereof Zinc and articles thereof Tin and articles thereof Other base metals. not knitted or crocheted Other made up textile articles.0 0.0 0. articles of paper Printed books.0 0. sets. and parts thereof Ships.0 0. lace Impregnated.3 0.0 0.0 0.1 Page 120 Trade Policy Review HS Chapter and description 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 78 79 80 81 82 83 84 85 86 87 88 89 Fur skins and artificial fur. pictures and other Silk Wool.2 0.0 5.0 0.9 3.0 0.0 5.2 1530172 407531 674548 33928 7362 25784 838693 604176 1029414 33120838 12484788 5639089 1301228 78273 1674152 11179 93895 56324 90184 490546 605687 18521928 14271941 205023 17335776 4144206 310101 Table AIII.0 4.0 5.0 0. worn clothing Footwear.0 0. tufted textile fabrics. of lines 17 154 18 23 21 133 50 10 50 131 29 69 117 45 54 44 36 44 116 157 101 37 26 9 11 99 45 85 65 171 179 70 23 62 10 25 12 54 73 58 589 362 24 184 16 23 Average tariff (%) 5. paper yarn Man-made filaments Man-made staple fibres Wadding.0 0.0 5. sun umbrellas.0 0.1 1. manufactures thereof Wood and articles of wood.0 5.0 2. felt and nonwovens.0 5. implements. Prepared feathers and down articles Articles of stone. gaiters and the like.0 5. spacecraft.0 5.
mattress supports Toys. 58. photographic. 39. parts and accessories Arms and ammunition and parts and accessories Furniture. of lines 210 57 32 24 100 49 67 10 Average tariff (%) 5. Lines not used: 1 in Chapters 02. precision surgical instruments Clocks and watches and parts thereof Musical instruments.0 5. 28. 87. games and sports requisites Miscellaneous manufactured articles Works of art. based on data provided by the United Arab Emirates authorities. 3 in Chapter 01.0 0. 05.0 5. mattresses. and 29.0 0. __________ .0 5. 85.0 5. 2 in Chapters 13. imports data from International Trade Centre.0 0.0 714478 31241 336071 2109194 509420 277292 95389 21482448 a Note: The complete product description is contained in the HS Chapter definition.0 0. 48. and 5 in Chapter 12.0 5.0 0. bedding.0 Imports 2008 (US$ million) 1635366 0. and 90.United Arab Emirates WT/TPR/S/162/Rev. Source: WTO Secretariat estimates. based on Trade Map database.0 0.1 Page 121 HS Chapter and description 90 91 92 93 94 95 96 97 '99 Optical.0 Range (%) 5 5 5 5 5 5 5 5 Std-dev (%) 0. collectors' pieces and antiques Commodities not elsewhere specified No.0 5.0 5.
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