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
figures. The report aims to analyze the country’s latest development in the economic climate of trade. The statements. highlighting the positive developments and improvements of its various tools and its impact on economic growth. It is considered as the first initiative taken by a country in the World Trade Organization. highlighting the main features and properties of the national economy and its foreign partnerships and investments. the importance of trade for its economic performance. goal. and trade policy frameworks of the agricultural. Concurrently . its relatively low border barriers to trade. and the trade agreements that the UAE has joined. The UAE’s trade policy. exports as well as production and trade. 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. The third section is concerned with clarifying the practices and procedures that are related to the country’s 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. 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. These are the ingredients that led to the expansion and diversification of foreign markets receiving country exports. 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. indicating the practices that have a direct impact on imports. local government authorities in addition to the private sector. 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 increasing the levels of commercial exchange with those markets. The report’s fourth section details the country’s trade policy by economic sector. and statistics of this report. water. It is considered as the beginning of preparations for the second review of the trade policy of the United Arab Emirates. 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. mining.The Ministry of Foreign Trade is pleased to issue this update on the status of the UAE’s foreign trade policy.
Minister of Foreign Trade Lubna bint Khalid Al Qasimi
. energy. It covers the period that followed the first UAE Trade Policy Review report issued by the WTO Secretariat in 2006. and aspirations of the government’s judicious strategy that aims at attaining the highest levels of comprehensive and sustainable economic development. It adopted. The report contains four sections. 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. It is also considered as a precedent. the goals of this policy. highlighting the features. The release of this report stems from the vision. The WTO goes on further to say. 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. and its growing economic power make it an increasingly important supporter of the multilateral trading system…”. and has encouraged its high value-added industrial sector to increase its export abilities. emphasize the UAE’s continued pursuance and implementation of a trade policy framework that is in line with its regional and international obligations. until June 2010. Therefore. which will take place in 2012. followed by a look into the prospects and developments of the economy. the first of which tackles the status of the country’s economic environment. tools. manufacturing and services sectors. developed and implemented modern and effective plans and programs to diversify its exports structure and international trade partners.
other duties. and assistance (v) Free zones
.United Arab Emirates Page i
CONTENTS Page I. ECONOMIC ENVIRONMENT (1) (2) (3) (4) II. 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. and taxes (v) Import prohibitions. 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
TRADE POLICIES AND PRACTICES BY MEASURE (1) (2) INTRODUCTION MEASURES DIRECTLY AFFECTING IMPORTS (i) Registration. licensing. insurance. finance. and exclusive distribution rights (ii) Customs procedures (iii) Rules of origin (iv) Tariffs.
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Page (4) MEASURES AFFECTING PRODUCTION AND TRADE (i) Incentives (ii) State-owned enterprises. 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
REFERENCES APPENDIX TABLES
. and gas (iii) Electricity. state trading. AND WATER (i) Overview (ii) Petroleum. water. 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
TRADE POLICIES BY SECTOR (1) (2) INTRODUCTION AGRICULTURE AND RELATED ACTIVITIES (i) Main features (ii) Main policy instruments (iii) Developments regarding selected products MINING.
3.6 IV. production.7 IV. 2005 TRADE POLICIES BY SECTOR Agri-food trade. by HS section. III. 2009 Structure of Abu Dhabi Electricity & Water Sector 68 80 36
TABLES I. by commodity in 2007 Abu Dhabi development expenditures. 2000. 2005 Prohibited products.3 III. 2000-2008 Domestic agricultural support measures.1 IV.3 II.10 IV.1. 2004-08 Hotel indicators.2 I. .2010 Balance of payments.United Arab Emirates Page iii
III. January 2007 Trade in manufactured products.4 IV. 2000 and 2001 Reserves.9 IV. 2009 Electricity and water charges. 2008 & 2009 Telecommunications indicators.1 I. 2007 Selected monetary and banking indicators.3.2 III.1 II.1 III.1 II. III.4 IV.2 III. 2010 TRADE POLICIES BY SECTOR Main agricultural products. I.2 IV. 2006-2009 United Arab Emirates rank in the world. 1995 . 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
.1 IV.1. 2004 .2 II.2 IV.11 ECONOMIC ENVIRONMENT United Arab Emirates at a glance.3 IV. 2005-2010 TRADE AND INVESTMENT REGIMES Main federal trade-related laws in the UAE UAE's selected notifications to the WTO. II. IV.5 IV. and 2008 Insurance premiums and claims paid.2
TRADE POLICIES AND PRACTICES BY MEASURE Tariff escalation by ISIC 2-digit industry. 1990-2008 Activities of the Abu Dhabi National Oil Company. and exports of oil and natural gas. 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. IV.1 IV. 2008 and 2009 Main economic indicators. 1995. 2010 Projects implemented by the UAE Offsets Group.8 IV.
1 AI.Trade Policy Review Page iv
APPENDIX TABLES Page I.1 ECONOMIC ENVIRONMENT Destination of exports (including re-exports).2 III. AI. 2004-08 Origin of imports. 2005 119 117 118
. AIII. 2004-08 TRADE POLICIES AND PRACTICES BY MEASURES Applied MFN tariff averages by HS2.
3 254.8 8.3 249..
. National Bureau of Statistics 2009 www.6 million tourists in 2009. The other emirates rely on a mix of trade and light manufacturing. The highly decentralized policy-making process appears to induce intense competition among the large emirates (in particular) in terms of economic achievement.6 934. dollars GDP per capita (US1000$) Share of GDP at current prices (per cent) Agriculture.United Arab Emirates Page 1
I.40 2008 8. storage and communications Real estate Social and personal services Financial services Government services 145. water. livestock and fishery Mining Manufacturing Electricity. and gas Construction Trade Restaurants and Hotels Transport.uaestatistics. essentially by developing its location as a leading transhipment and re-export centre.1 8.2 16.0 . Among the Emirates. Abu Dhabi accounts for more than half of the country's total GDP. and IMF Staff Reports.4 1.19 million Table I.1 1. such as ports.7 5.2% of the world total). various issues.7 6. 1995 .5 9. based on a long-standing trading history and a generally probusiness stance.6 6. (1)
ECONOMIC ENVIRONMENT MAJOR FEATURES OF THE ECONOMY
1.6 1.ae 3 OPEC (2009). The UAE shares a border with Saudi Arabia and Oman. and contributes 32. Abu Dhabi City is the federal capital.3% of the country's total GDP.8 7. and depend on financial support from the Federal Government and the two largest emirates.3 The authorities estimate that these reserves will last more than 100 years at current production rates.7 10.4 53.6 10. airports.5 914.0 1.2 1. 2008 and 2009 1995 Population (million) GDP total (billion. In 2006.7 8.9% of its GDP on petroleum and gas mining in 2009 (down from 74% in 1980).3 42. United Arab Emirates. close to 40% of the population. Ra's al Khaimah. The services sector
The others are Ajman. 3. Majority of the UAE's population is foreign.S.9 30. and free zones.07 2009 a 8. it welcomed close to 7.6 33.5 7.0 5. and may explain that infrastructure.5 8.1 United Arab Emirates at a glance.20
a Initial Source: National Bureau of Statistics.7 1.600 square kilometres2.6 10.
2.9 5. 2009.8 15. Abu Dhabi.3% of total world reserves).9 10.
Table I.7 11. The urban population accounts for 75% of inhabitants as four fifths of the territory is desert. and Sharjah are the three largest1. 37 million passengers used its all airport in UAE 2006 It has become the region's centre for trade.7 29.0 2.gov. The United Arab Emirates (UAE) is a federation of seven emirates located in the Arabian Gulf. and a total population in 2009 estimated at 8.4 1.1.. and seventh largest reserves of natural gas (3. Dubai is the second largest emirate in terms of economic size.3 7.7 17. The UAE has the world's seventh largest proven reserves of crude oil (7. and Umm al-Qaiwain. Dubai.7 9. Analytical Report on Economic and Social Dimensions in the United Arab Emirates. a relatively low share compared with other Gulf countries. at current prices) In UAE dirhams In U.720 2. Fujairah. tends to be replicated across the country.2 1. It has a land mass of 83. The federal economy depends 28. 1. and over 90% of crude oil and gas production.
gov. and a large number of nationals is likely to enter the labour force in the near future.ae) 5 UNDP (2009). this expansion was possible because of the UAE's open foreign labour policy. 5. Sheikh Mohammed bin Rashid Al Maktoum was appointed as a Vice President. In recent years.7% in 2008 to GDP. which has enabled the private sector to recruit expatriate workers at competitive wages. to satisfy the needs of the national development of the country and to organize the work of the national statistical system.9% according to a recent study.The UAE National Historic Charter called for continued focus on the increased involvement of Emiratis in the private sector11. and the persistent inflow of foreign labour.uaestatistics. In 2008 total GDP of the UAE stood at around US$254. The manufacturing sector is large and dynamic. largely based on activities in free zones. the UAE ranked 35th out of 179 countries in terms of the UNDP Human Development Indicators. 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. accounts for most non-oil output expansion over the 1981-2000 period. 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 2021.1).4 billion (Table I. high fertility rates. Moreover. 7 IMF (2003). reducing unemployment becomes a strategic priority for newly formed cabinet.4 4. The Prime Minister unveiled the second round of federal government strategy from 2011 till 2013.Trade Policy Review Page 2
contributes about 35. Nevertheless. wholesale and retail trade.
The National Bureau of Statistics of the United Arab Emirates has been established by the Federal Law No. (www. led by external trade – the country is an important transhipment and re-export centre – and by public administration services.7 In turn. due to the wide gap between birth and mortality rates. The National Bureau of Statistics (NBS) has a legal character. 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
. "emiratization quotas" and other measures have been put in place at federal level (Box I.6% to the GDP in 2008. Its growth over the last thirty years has allowed the country to achieve one of the world's highest per capita incomes. In February 11th 2006 a new cabinet was formed and H.H.1). The Bureau shall be considered the sole official statistical source for the State and the source of its official statistical data. 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. Moreover.5 This performance was made possible partly by the expansion of the hydrocarbon subsector. Agriculture contributes 1. these main subsectors have grown significantly in nominal value terms. as the price of oil increased substantially from its 1995 level of US$20/barrel. and forward-looking Government9. In 2009. and will report directly to the Cabinet. this share is high given the quasi-desert nature of the territory. To create employment opportunities for UAE nationals. The year 2021 will correspond with the golden jubilee anniversary of the UAE10. unemployment among UAE nationals has increased rapidly to 12. rather than total factor productivity. 6 This population growth rate has remained among the world's highest in recent years (5. It concerns mostly Emiratis because foreigners do not generally have access to unemployment status and benefits. innovative. and is achieved thanks to important state support since the early 1980s. The NBS is responsible for preparing the national statistical system. this share has not expanded significantly since 1995. Prime Minister of UAE. and therefore are not recorded.8 As a result. but mainly by a large and sustained influx of foreign labour that allowed the non-oil sector to develop rapidly and competitively. lean.6 The growth of labour and capital. real estate and construction.6%). 9 of 2009. close to half of the Emirati population of Emirati nationals is under 15 years old. at close to US$53400 by 2008. an independent budget and full capacity to conduct its affairs and those legal transactions which are necessary for performing its duties.
at the rate of 5% per year. in cooperation with the Central Bank. low interest rates. the general prohibition on foreign majority ownership of local companies and substantial state involvement in selected activities) limit market competition in general.1: UAE "emiratization" policy The emiratization policy was introduced in 1998 by the National Human Resource Development and Employment Authority (Tanmia). The targeted sectors were selected based on two principal criteria: the economic health of the industry and its importance to the country. 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. Given the strategic role the sector plays. On the export side. And in 2005. is collecting and updating data on Emiratization in this sector. is collecting and updating data on Emiratization in the banks operating in the UAE.United Arab Emirates Page 3
Box I. and to facilitate integration with the rest of the world. and the availability of skilled jobs where good working conditions exist for nationals. 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. In addition. and foreign competition in particular. Tanmia. Based on that mandate. Tanmia.
6. This policy aims to increase the number of nationals employed in private sector activities. the Cabinet issued its resolution # 42 entrusting Tanmia with the task of monitoring Emiratization of this sector. which makes it an important employer of Nationals. Although economic policy purports to be liberal and business-friendly throughout the UAE. in cooperation with the Central Bank. In 2005 the Cabinet issued its resolution # 41 entrusting Tanmia with the task of monitoring Emiratization of this sector. These programmes offer a simplified application process. 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. it was announced that legal action would be taken against these companies. According to the authorities. which makes it an important employer of Nationals. starting from 2004. 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. Tanmia also offers training programmes for nationals to ensure that they have adequate skills to be hired by the private sector. Given the strategic and developmental role the sector plays. and its role in enhancing economic diversification and supporting business activities. the authorities of certain emirates have also developed programmes to encourage entrepreneurship among nationals through the creation of small and medium-sized enterprises (SMEs). The attractiveness of the UAE's free zones results partially from competition and investment restrictions that prevail in the rest of the economy. UAE companies that compete internationally are in most cases government-owned. important restrictions (through exclusive dealership arrangements. and its role in enhancing the effort to diversify the economic base. which makes it an important employer of Nationals. And in 2004. Source: Tanmia. Pursuant to that Cabinet resolution. 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. these restrictions do not apply to the free zones (Chapters II(5) and III(3)(v)). Airlines and civil aviation authority follow international
. Emiratization in this sector has encountered serious challenges and most trade companies have been unable to comply with the quota. and favourable repayment terms. the Cabinet issued its resolution # 259/1 approving a set of measures for boosting Emiratization of jobs in the private sector. Based on that mandate. Given the strategic and developmental role the sector plays. In February 2005. 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. but the government is encouraging privatisation and an overall transition to private sector participation in the economy. The trading sector in the United Arab Emirates is of major interest to the country in terms of its contribution to the local economy. the Minister of Labour and Social Affairs issued a ministerial decree no 43 for 2005. authorizing Tanmia to follow up the progress of Emiratization in the banking sector.
up from last year's Dh532.49 in the first half of 2008. inter alia. except for certain restrictions under terrorist financing provisions that have been taken in accordance with UN resolutions. In 2006. manufacturing.
IMF (2004).4 per cent in the first half with negative year-on-year growth in June. in practice. including sports facilities. Dubai is considering a bid for the 2020 Olympic Games.Trade Policy Review Page 4
operational principles and do not engage in or affect “trade” for WTO purposes. 7. (2) RECENT ECONOMIC DEVELOPMENTS
9. Since 1999.24 in the first half of the year compared with 110. The UAE appears to be heading for a sharp decline in inflation through 2009 as the rate averaged about 3.4 per cent. not a supplier. and again between 2001 and 2005. important public investment has been made to develop tourism. The UAE dirham (Dh) was officially pegged to the Special Drawing Right (SDR) from November 1980 to December 2002. The country was also the first in the region to strategically develop both airport and seaport facilities in the 1960s. and centers for international conferences and events. This performance has been supported by windfall revenue from the doubling of oil and gas prices between 1998 and 2001. 8. The UAE's external debt stood in 2008 at Dh623. The mid-point between the official buying and selling rates for the dirham has been Dh 3. such as office and consumer electronics or medical equipment.S. Currently. into one of the strongest and fastest-growing economies in the world. the UAE has withdrawn from the monetary union in May 2009 together with Oman13 the UAE dirham has become officially pegged to the U. UAE's total government debt is expected to come down to 9.6 per cent in 2007. the DIFC is a regulator. an increase of 3. 10.4% (Table I.4 per cent of the GDP by the end of the year. In addition. construction. Inflationary pressures have been mounting since 2000.gulfnews. but a reduction was achieved based on a combination of factors.S.20%. Dubai was considering making a bid for the 2016 Olympic Games. and subsequently in high-technology industries. compared to 10. in line with commitments agreed with other GCC countries (Chapter II(4)(ii)(a)). For 2008 real GDP growth was estimated at 7. reflecting soaring domestic demand (as oil proceeds have been increasingly reinvested locally) and increased capital inflows. However. though. the revenue has financed activities in.2). it was pegged to the U. Since then.7% (in 2001).6725 per US$1 since November 1997. inflation was estimated at between 15 . leisure parks. and since then has continuously recorded strong expansion in transport services to become the region's main transport hub. however it were discouraged as nearby Doha made an official application in 2007. dollar. of financial services.html
. The tremendous industrialization effort undertaken since 1980 took place first in energy-intensive industries.com/business/Banking_and_Finance/10315328. Source: http://archive. the UAE's lowest economic growth has been 1. The consumer price index (CPI) stood at 114. including the global economic slow-down beginning in 2008. on the basis of the UAE's comparative advantage.9 billion ($170 billion). including toward the adoption of a common currency (planned for 2010 but will be delayed). dollar at a fixed parity12. The UAE's exchange system is free of restrictions on payments and transfers for international transactions. and financial services. The UAE accepted the obligations under Article VIII of the IMF Statutes on 13 February 1974.15 billion ($145 billion)According to the International Monetary Fund data. The UAE has grown from a small fishing and pearling nation (before its first export of oil in 1962).
4 2.2).6 17.4 22.4 26. Information about Federal Budget 2008 and 2009. see below).6 15.3 8. In April 2005.7 50.2 18.1 33.5 105. and an increase in pump petrol prices by an average of 20% during 2005 and increase by 15 files by litter in 2010.0 12.2).1
30.1 -32.0 15.2 15. gas and water Construction Services Wholesale Retail Trade and Repairing Services Restaurants.0 47.3 19.4 15.1 11.4 1.4 29.3 32.6 17.4 26. and reducing producer subsidies and transfers.7 9.7 9.0 31.8 16.1 14.2 Main economic indicators. this should help to reduce subsidies as these utilities are generally provided to the population at subsidized rates.1 8.2 25.9 28.2 17.3 21. in 2003 and 2004.8 14.9 11.1 18. The consolidated budget frequently runs large deficits (Table I.5 23. The global financial slowdown continues to affect the UAE economy.0
2008 23.8 35.9 33.6 29.6
1.7 19. however.3 13.6 20.0 -22.7 72.0 21.0 56.7 67.
Table I.5 35.2
The revenue comprises a royalty on proceeds of companies holding concessions in the hydrocarbon sector.1 23.7 6. A national value-added tax system is also being explored to increase public revenue. the surge in hydrocarbon prices led to a rise in government revenue14.9 20.2 1.United Arab Emirates Page 5
11. income from government funds invested abroad (since 1980) by the Abu Dhabi Investment Authority (ADIA.4
2009 a -2.9 26. the authorities announced that salaries of federal employees and Abu Dhabi government employees would increase by 25% in the case of nationals.2
2007 17.0 16.9 14. The non-hydrocarbon fiscal deficit varies between a fifth and a third of GDP (Table I.0 1.2 12.0 14.1 12.8 14.9 2. 15 Ministry of Finance. revenue from a 20% tax on profits made by foreign banks.2 billion (compared to AED 34. a large fiscal surplus was since 2004.9 20.1 14.8 0. However.2 4. The measures include reductions in agriculture subsidies. 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.0 17.9 billion in 2008) maintaining a zero deficit for the fifth year running15. and 15% for non-nationals.9 16.0 -10.4 24.6 3. The authorities indicated that steps have been taken to reduce it by containing the growth of spending.8 36.0 47. and Hotels Transport and communications Finance. In 2009 the Federal budget amounted to AED 42.3 10.7 -12.9 44.7 20.8 6.2 15.0 1. 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
2006 27. and marginal revenue from import taxation.0 21.7 17.0 22.5 92.9 4.7 15.1 15. 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)).1 24.8 15.8 24. but government spending on infrastructure had underpinned confidence of investors and local and foreign private sector on the UAE market.
.5 21.4 13.0 -1.1 18.
Annual Reports.5 Non-hydrocarbon fiscal balance (as % of GDP)b -16.4 77.1
2008 12.3 3.67 101.3
2009 a 14.3
2007 11.1 135.0
22. the monetary environment was that of high levels of liquidity and low interest rates. Negative sign indicates deficit.0 2.E.
450.current prices.7 138 56.6 20.1 330. net) In months of next year imports of goods and services Nominal exchange rate (Dh per US$) Nominal effective exchange rate (index 2000 = 100) 6.5 21.7 41. 33.3 3.3
Consolidated government finance (In billions of U.9
7.5 30. except some aspects of the recently created Dubai International Financial Centre.2 28.7 29. dirham’s .9 2.S. In 2003-04.3
Source: IMF. Domestic interest rates have largely moved in tandem with U.8 Balance (as % of GDP)b 20.67 121. end of period) Total revenue 203.3 2. Staff Report.7 -14.67 96..1 28. various issues.0
16.9 4.A.3 254 196.9 21.8 23.5 0.9 299.67 103.6 49.2
9. 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 -27.1 62.0
292.0 30.Trade Policy Review Page 6
2005 Consumer prices (annual average) External sector Current account Balance (% of GDP) Gross official reserves (US$ billion.7 132 56.6 289 3.2 External debt (US$ million) External debt (as a % of GDP) Financial indicators (%) a b Broad money (M2) Preliminary estimates.8 52. .67 107. Analytical Report on Economic and Social Dimensions in the United Arab Emirates.7
Source: IMF.9 271 89.4 -33.8 Total Expenditure and grants 104 128 167 Overall Balance (consolidated)b 99.5 -13.4 163.6
8.4 9. The main instruments to regulate domestic liquidity are the CBU's certificates of deposit of up to 18 months maturity and the reserve requirements. which has authority over most financial institutions. rates.2 130..5 2.2 41. Central Bank of UAE. National Bureau of Statistics.2 3.5 171.0 3.8 -29.4
-2. United Arab Emirates.4 .3 39. Monetary policy is conducted by the Central Bank of the UAE (CBU).2
9. Staff Report.6 80. reflecting the
. various issues
due to weak demand for credit from firms and households in addition to the cautionary approach applied by major lending institutions. as witnessed by its high ratio of imports plus exports (of goods and services) to GDP. and Iraq. However.e. Petroleum products are a major cost input into the economic engine of most developed economies. The three-month inter-bank rate for the UAE dirham declined to 0. The UAE is a trading nation.1 billion in 2004. reaching US$28. DP World. Exports of petroleum products were estimated at US$66 billion in 2007.7% in 2003 before rising again to 1. This brought about a significant improvement in the trade deficit. despite large current transfers by expatriate workers and the permanent deficit of the services account. and Abu Dhabi International Petroleum Investment Company.2). including its official Abu Dhabi Investment Authority. The main source of export revenue is crude oil and condensates (Table AI. Iran. 14. A combination of global and domestic slowdown led to a decline in imports by 16%. and 2. Another factor contributing to this decline is the domestic demand. This reflects the importance of the UAE as a centre for re-exports.8 per cent deficit in 2008 since imports accounted for 72 per cent of the trade exchange volume. Broad money growth slowed down in 2008 from 19% to 10% in 2009 . The rise reflects rapidly increasing bank credit to the private sector and to stateowned enterprises.
. partial quantity of this liquidity was converted in to Certificate of Deposit with the Central Bank (3) TRADE PERFORMANCE AND INVESTMENT
13. The broad money stock has been increasing rapidly. 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. 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. In 2007 the trade surplus was estimated at USD 53 billion. The trade balance is traditionally in strong surplus. UAE trade balance suffered a 52. to nearly 12% of GDP in 2004 (Table I.1). Real interest rates have been negative since 2002.5% in 2009. The UAE is also an important participant in global capital markets through several investment institutions.(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.2). around 142%. Dubai Holdings. Although both export and import volumes achieved approximately similar growth rates. while gas exports have more than doubled in value.6% in 2004. The second largest source of revenue is re-exports (around one third of total merchandise exports). Domestic demand for goods and services deteriorated due to a combination of external and internal shocks. UAE trade deficit declined by 45% in 2009 in comparison with the trade deficit in 2008.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. as a result of a surge in merchandise exports (in line with rising oil prices). the UAE remains a net services importer. This surplus has increased strongly since 2002. mainly to India. 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. well above the rate of GDP growth (Table I. Its current account has been in surplus since independence in 1971.
tobacco products. 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)
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
.000 companies are based in UAE free zones. The main non-hydrocarbon exports from outside the free zones are clothing.Trade Policy Review Page 8
Figure 1 Exports. Imports & Trade Deficit in Percentage Changes
Exports. the main products exported from Jafza consist of machinery and appliances. Nearly 60% of non-hydrocarbon exports originate in free zones. and aluminium. More than 17. mainly the Dubai Jebel Ali Free Zone Authority (Jafza).1
15. including computers and other consumer electronics. with investment topping US$21 billion.
0 -88.8 -1.7 -0. 2/ Estimate of investment income of sovereign wealth funds.2 1.2 3.6 144.0 24.9 -49.8 21.0 16.2 11.6 -132.5 -0.3 -8.8 -10.6 2007 19.8 59.) Imports by emirates Free zones Income.4 47.1 61.1 34.5 -57.4 42.7 -137.9 -17.7 -6.2 22.United Arab Emirates Page 9
16.9 30.7 11.2 -98.6 -135.1 1.1 -29.9 9.5 94.7 -14.7 -23.2 64.9 2.4 -14.5 2006 36.6 -26.8 16.0 179.4 5. 1/ Not separately compiled.2).0 -0.0 -13.9 46. to Arab countries (26%).4 3.2 -20.3 4.5 43. Article IV Consultation – United Arab Emirates.
. net Transfers.6 -6.5 239.1 -89.8 163.8 22.6 -1.9 8.1 66.1 7.1 -9.8 5.6
Source: IMF (2009).2 182.3 63.6 -55.8 22. and to Europe (18%).5 2.4 48.7 9.8 65.9 3.6 7.5 22.5 29.5 -2.6 45.4 5.1 28.1 1.0 20.1 85.0 -4.5 14.5 -11.5 47.9 -0.0 -8. authorities.0 77.6 62.6 -30.5 -21.1 -96. net Government 2/ Services.6 -10. 2009 -6.5 -0.1 1.2 60. Exports of crude oil are directed mainly to Japan.9 Est.7 -3. 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.o.1 -60.1 -9. Re-exports are destined to Iran 18% of total Re-exports and India 17% of total Re-exports.3 28.8 63. net Portfolio flows.8 2.4 -9.0 15.4 39. 2010 18.4 1.2 47.2 -2.8 9.5 -14.6 28.9 1.7 -11.6 18. estimated at 40 to 70 percent of emirates imports.7 40. Chinese Taipei.
Table I.2 8.0 -9.7 -1.6 -0.8 8.1 Proj.1 6.5 9.2 6.6 2. and other East-Asian countries (Table AI.8 6.b.5 8.0 0.2 -33.7 25.7 -42. Washington D.7 47.1 8.2 9. net Private (incl.5 -46.6 9.5 3.3 -39.5 22.6 29.3 -21.2 5.7 25.6 -9.9 12.9 8.4 -38.1 -10.3 Balance of payments.0 50.9 40.9 2008 22.2 -12.0 17.7 -5.7 13. and Fund staff estimates.4 8.9 39.2 28. remittances) Official Financial account balance (in percent of GOP) Private capital Direct investment. 2005 .4 26.3 -17.1 -3.2 -12.7 -0.2 -25. and GCC countries (15%) at 2009.3 2.0 2.7 16.2 -18. 1.2 5.0 7.2 -13.2 -0.4 2.4 6. Staff Report.4 5.3 -130.8 -74.8 91.C.6 -17.6 -6.9 -11.2 -176.8 -10.4 7.1 -67.0 2.2 4.2 -7.4 5.1 56.2 -1.3 -10.0 56.6 4.7 -32.4 4.2010 (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.8 70.1 49.0 -39.9 115. Non-oil exports are mainly shipped to India (33% of non-oil merchandise exports).2 -0.3 47.
Most of this capital is managed by the Abu Dhabi Investment Authority (ADIA). chemicals and food. net FDI inflows reached about US$16. In 2005 ADIA dedicated allocation to small caps within equities.In 2008. Leading sectors attracting FDI appear to be oil and gas field machinery and services. by Dubai Islamic bank (in banking). In 2008 ADIA participated in the development of policy principles for international investments with the U. the United Kingdom (4%). In 2008 the UAE attracted US$13. 19. as a result of acquisitions abroad by Dubai Ports International and its successor DP World (in port services). Robert Fleming.uaefreezones.19 Outward FDI flows have also been large recently. The bulk of the companies in Jebel Ali are active in the assembly of electronic products. Japan (6%). Italy (4%). local and Arab investments. see http://www.86 billion in 2005. In 2009 the department of Investment Services Department was created. then it became a Founding member of the International Forum of Sovereign Wealth Funds (IFSWF). In 2009 the UAE had 283 Greenfield investments made up from 88 in 2002. 19 UNCTAD (2005). In 1989 ADIA started investing in private equity.8 billion. 156 Greenfield investments were made in the UAE in 2004. ADIA's total assets are estimated at USD 600
According to the Abu Dhabi Chamber of Commerce.Trade Policy Review Page 10
17. power and water.html. Germany (7%). Dubai International Financial Centre and others.S. subsequently the following department were created: Equities and Bonds. medical equipment. light engineering and manufacturing. The bulk of FDI has been directed into real estate projects. and into the free zones (Chapter III(3)). In 1976 the government of Abu-Dhabi decided to separate ADIA from the Government of Abu Dhabi as an independent organization. and franchising. Foreign direct investment (FDI) inflows have advanced rapidly since 2000. telecommunications. renewable energy and Islamic banking sectors. China (11%). and by other state owned enterprises. Korea South (4%) and France (3%). as well as in distribution services benefiting from low costs. A factor contributing to the expansion of inward FDI may have been the liberalization of the real estate subsector in Dubai. a fall of 3. 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. Treasury. computers. According to UNCTAD.18 Jebel Ali Free Zone in Dubai in particular has total estimated annual revenue of over US$8. In the same year ADIA was appointed co-Chair with IMF of International Working Group of Sovereign Wealth Funds. Europe and Far East). India (14%). ADIA is responsible for investing all of the Abu Dhabi Government's oil revenues and assets worldwide. efficiency enhancing infrastructure. In 2007 ADIA started investing in infrastructure sector and then it moved into new headquarters.17 Other investment opportunities are available in Small and Medium Enterprises (SMEs). Knowledge Village. Department of the Treasury. and investment-grade credit within fixed income. In 1967 Abu Dhabi’s “Financial Investments Board” was created under the auspicious of the Department of Finance(Mandate given to UBS. FDI in the UAE was estimated to have reached 18 billion. Silicon Oasis. reflecting the regular placements of official capital abroad. According to official statistical data (Ministry of Economy). Principal UAE imports are machinery and transportation equipment. by Etisalat (in telecommunications).7 billion of FDI. In 1986 it Started investing in alternative strategies. In 1998 it started investing in inflation-indexed bonds.2% as compared to 2007. Real Estate.
. Leading importers into the UAE are the United States (9% of total imports). and the resulting investment boom both in housing and in development projects such as Dubai Internet City.085 billion by 2007. inbound FDI reached US$ 34.com/home. Bonds moved from Equities Department to Treasury Department. In 1987 the Equities and Bonds departments became regional (North America. UAE imports in 2009 were valued at $121. For background and information on UAE free zones. and logistics services. 18. The financial account registers large net outflows. Morgan Guarantee Trust and Indosuez). Specialized free zones have recently been established to encourage trade and investment and trade in targeted services sectors. The government has launched efforts to improve the collection of statistics on FDI and on economic performance generally.5 billion in 2005. Finance and Administration.
and construction subsectors. compared with a previous estimate of 1. d) To have in place a transparent and sound governance structure that provides for adequate operational controls. and has taken steps to develop further its investment regime. or in effect. making it the world's largest sovereign wealth fund. or regulatory action exceeding that of other investors. There was a drive to create an agreed framework of Generally Accepted Principles and Practices that reflected appropriate governance and accountability arrangements. b) To comply with all applicable regulatory and disclosure requirements in the countries in which they invest. compared with an earlier estimate of a 0. supported mainly by large public investments in the tourism. a condition of membership in the ongoing International Forum of Sovereign Wealth Funds. 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). The organisation expects the country to record 2. as well as the prudent and sound basis on which SWFs conduct their investments. 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. In 2008. and thus reduce the economy's vulnerability to oil markets. development and drafting of the 24 principles20. established by the 26 member countries in Kuwait in April 2009. Later ADIA assumed the role of co-chair of the International Working Group of 26 SWFs. transport. also known as the Santiago Principles.6 per cent decline.United Arab Emirates Page 11
billion to 875 billion as of 2007. c) To invest on the basis of economic and financial risk and return-related considerations. and is one of the most influential operators in international financial markets. 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. While the Santiago Principles are voluntary. Chile. The UAE's economy is expected to shrink by 0.4 per cent growth in 2010. The outlook for the UAE economy is naturally sensitive to assumptions about the evolution of oil markets. ADIA participated in the design. recipient countries would recognize and respect their compliance. the Principles. and countries receiving SWF investments.2 percent in 2009. A key element of this process was the expectation that if SWFs complied with the Santiago Principles. ADIA has undisclosed investments generally estimated at about US$250 billion. (4) OUTLOOK
. restriction. Large fiscal and external current account surpluses are projected to persist. 21. is endorsement of. However.
Source: ADIA : www. Growth should also be supported by the numerous new projects coming on-stream. 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. This culminated in the widely publicized Generally Accepted Principles & Practices of sovereign wealth funds. obligation. members are expected to support them and either implement or aspire to implement them. including both oil prices and OPEC-mandated oil production quotas. The government recognizes that steps need to be taken to maintain the optimal investment environment. Non-hydrocarbon GDP growth is also expected to remain strong.adia.6 per cent. 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. compliance with. risk management and accountability. and would not subject SWFs to any requirement. In fact. according to the IMF's World Economic Outlook.
the Federal National Council. bringing the number of
On 2 December 1996. the Cabinet is an executive authority of the federation. Sheikh Mohamed bin Rashid Al Maktoum. The post of Vice-President is held by the Ruler of Dubai. It is vested with legislative and executive powers.came together to establish a federal state (with a provisional federal constitution)1. Under Articles 116 and 122. In absence of the President. Fujairah. Headed by the Prime Minister. education. decrees and decisions sanctioned by the Supreme Council. the Vice-President assumes his responsibilities. Ra's al Khaimah. nationality and immigration issues. inter alia. the federal authority is responsible for. 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. on 2 December 1971. including electing the President and the Vice-President of the Federation. 2. was elected as the first President of the UAE. and ratification of treaties and international agreements after approval by both the Supreme Council and the Cabinet. the president also enjoys powers that include the right to convene and preside over meetings of the Supreme Council. each emirate has jurisdiction in all matters not assigned to the exclusive jurisdiction of the federal government. Umm al-Qaiwain and Ajman .
. and the Federal Judiciary. 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. The Prime Minister. ruler of Abu Dhabi. The six emirates . the president. and labour relations. she is in charge of the Ministry of Foreign Trade. Sheikh Zayed was succeeded by his son and Crown Prince. currency. and ruled until his death on 2 November 2004. with separate governments and treaty relationships with Britain. and other communications services. Sharjah. ratifying federal laws and decrees. renewable. The President and Vice-President are elected by the Supreme Council for a term of five years. 3. The President is also entrusted with signing laws. 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 United Arab Emirates. The seventh emirate.Abu Dhabi. who succeeded his brother after his death in January 2006. The President is accorded a wide range of legislative and executive powers. the Prime Minister announced his new Cabinet. According to Articles 120 and 121 of the Federal Constitution. and ruler of Dubai. The Federal Supreme Council is the top policy-making body of the federation and comprises the rulers of the seven emirates. and with the requirements of WTO rules and other international trade and investment commitments. In February 2006. (1)
TRADE AND INVESTMENT REGIMES THE INSTITUTIONAL FRAMEWORK
1. Maitha Salem Al Shamsi the female ministers of state. public health. As chief executive of the State. Sheikh Khalifa bin Zayed Al Nahyan. supervising implementation through the Cabinet. formally acceded to the new federation on 10 February 1972. who was elected by Members of the Supreme Council as the new President on 3 November 2004. postal. The amendment also named Abu Dhabi City as the capital of the State. the Cabinet. the Supreme Council approved a draft amendment to the provisional constitution making it the permanent Constitution of the UAE. telephone. The federal system includes five bodies with no full separation of powers: the Federal Supreme Council. foreign affairs. 4 The first woman minister in the UAE was appointed in November 2004 and was responsible for the Ministry of Economy and Planning.Trade Policy Review Page 12
II. security and defence. In the current Cabinet.2 Until then they had been known as the Trucial States. 3 Sheikh Zayed bin Sultan Al Nahyan. selects his cabinet Ministers among representatives from the seven emirates. air traffic control and licensing of aircraft. Dubai. 2 Ministry of Information and Culture (2005).3 The Council may also relieve the Prime Minister of his post upon recommendation by the President. who is currently the Vice-President.
The emirate of Abu Dhabi is examining the possibility of establishing specialized courts. The emirates of Dubai and Ra's al-Khaimah established local judiciary. six each for Sharjah and Ra's al-Khaimah. including ministerial positions. Since 2007 the UAE has considered the establishment of specialized courts. They also hear appeals against judgments by the federal courts of first instance and the local judicial authorities. and areas of development. and other matters. and Ajman. 3 of 1983. together with other disputes in accordance with applicable laws. Article 71 prohibits any member of the FNC from holding any other post in the federal government. Capt. 6 Eight seats each for Abu Dhabi and Dubai. questioning ministers and holding them accountable for their respective ministries. The Federal National Council (FNC) comprises 40 members representing the seven emirates. 338 regarding specialized departments at the Courts of First Instance tasked with consumer protection.5% of the members. 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). including courts to specific to investment and economic affairs. inter-emirate disputes. At emirate level. 8 Articles 96 and 97 of the Constitution. appointed by presidential decree and endorsed by the Supreme Council8. and other matters10. including serving the people and the nation. The Federal Supreme Court has exclusive jurisdiction under the Constitution to decide on specified matters. Panels of three judges hear criminal cases. Abu Dhabi and Dubai hold the largest number. Sharjah. In 2009 the Minister of Justice issued law No. and disputes between the Federal Government and the emirates. not attached to the Ministry of Justice. 10 There are no courts specialized in economic/commercial matters in the UAE. The federal judiciary comprises the Federal Supreme Court. consolidating the principles of shura (consultation) in the country.United Arab Emirates Page 13
women ministers in the federal government to four out of 22 ministers. 5. The FNC is presided over by one of its members. as well as civil. The selection of representatives. 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). and discussing the annual budget. Judgments of the federal courts of appeal are final. commercial. and four each for Fujairah. 7 Article (9) of Federal Judicial Authority Law No. the FNC has a consultative role. Judgments are delivered by a single judge unless the law stipulates otherwise. 6. The federal courts of first instance have a body of judges and court presidents who hear criminal cases. have similar local government structures. depending on. 7. 8. is at the discretion of the ruler of each emirate.
. They are appointed for an indefinite duration. examining and amending proposed federal legislation. population. The emirates of Abu Dhabi. including the constitutionality of federal laws. The judicial system is composed of a federal and a local judiciary. with the exception that the latter emirate does not
Article 68 of the Constitution. and Ra's al Khaimah. 4. Article 116 of the Constitution states that all matters not specifically stipulated as falling within federal jurisdiction may be considered within the relevant emirates. Khouloud Ahmad Jouan Al Dhahiri became the first woman in the UAE to be named as a judge. Dubai. inter alia. The federal courts of appeal comprise a body of judges including court presidents9. Umm al-Qaiwain. commercial. civil. In March 2008.6 Women holds 9 seats in the FNC representing 22.5 The number of seats assigned to each emirate is based on its population. governments differ in size and complexity. The Federal Supreme Court consists of five judges including a President of the court. and the federal courts of first instance (civil and sharia)7. appointed for two calendar years. the federal courts of appeal (civil and sharia). which oversees the federal judicial system. Under the Constitution.
14 The NC comprises 33 members and is chaired by the Vice-Minister of Foreign Trade. Ministry of Labour and Social Affairs. a traditional means for tribesmen to voice their opinions. The Council is also vested with powers to question officials and examine and endorse local legislation. Emirates Authority for Standardization and Metrology. for example. The NC is supported by five sub-committees covering: market access for non-agricultural products. Ministry of Finance. (2) TRADE POLICY FORMULATION AND IMPLEMENTATION
9. 11. Ministry of Justice and Islamic Affairs. The private sector provides inputs to trade policy formulation by communicating its views through the chambers of commerce and industry and the associations. Trade policies are formulated and implemented by means of legal instruments.Trade Policy Review Page 14
possess an executive council. Chamber of Commerce and Industry. 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. There is a similar pattern of municipalities and departments in each of the other emirates (Ministry of Information and Culture. The Ministry of Foreign Trade coordinates with other federal ministries. The concept of holding the open "majlis" or council. which was established in 13. and Ministry of Petroleum and Natural Resources. Ministry of Labour and Social Affairs. In the majlises. In other emirates. Bills are prepared by the relevant ministries. Its Eastern and Western regions are headed by an official with the title of Ruler's Representative. 12 FNC decision 1 of 1976 amending the Constitution. Abu Dhabi also has a legislative branch at the local government level. the Executive Council. Under the Constitution each emirate is permitted to relinquish national powers to the Federal Government. matters concerning unemployment. protection of domestic production. or specific individual requests. presided over by the Crown Prince Sheikh Mohamed bin Zayed Al Nahyan. concerns and complaints to their rulers. Emirates Authority for Standardization and Metrology (ESMA). Its National Consultative Council comprises 60 Members elected from among its main tribes and families and is chaired by a Speaker. Ministry of Public Health. Ministry of Agriculture and Fisheries. Ministry of Petroleum and Natural Resources. and the University of the Emirates. intellectual property rights. Ministry of Agriculture and Fisheries. which has a role similar to that of the Federal National Council.through which the concerns of citizens may be directed to the government11. Ministry of Public Health. It acts under the supervision of the Ministry of Foreign Trade. Ministry of Justice and Islamic Affairs. the largest emirate. trade in services. the ruler has a diwan – his office . each of which has a nominated municipal council. A National Committee (NC) was created by a Ministerial Decree 4/395 of 2002 to deal with WTO related matters14.
. and its main cities are administered by municipalities. and the Singapore issues. modern and traditional government structures coexist and evolve together. 2005). the Federal National
11 For example. as an advisory body to the UAE negotiating team. Overall. Abu Dhabi. discussions between Sheikhs and other citizens may address a variety of issues including economic and foreign policy. the municipalities of Abu Dhabi and Dubai. trade-related bodies and local departments: These include the Ministry of Economy. Federal Customs Authority. Federal Customs Authority. and presented successively to the Cabinet. municipality of Abu Dhabi. Formulation and implementation of the UAE trade policy is the direct responsibility of the Ministry of Foreign Trade. Federal Environment Authority. Membership of the NC includes representatives from the Ministry of Finance and Industry. 10. has remained relevant. the Central Bank. has its own central governing council. The Council provides a forum for its members to voice concerns and suggest introduction or revision of federal legislation.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). Important examples of this are the decision to unify the armed forces in 1976.
16 They come into effect one month from the date of publication or the date specified in each law. ordinary decrees. Treaties/international agreements. 8 of 1984 concerning commercial companies and the amending laws thereof Federal Law No. 3 of 2004 Federal Law No. regulates the legislative procedures at the federal level. 3 of 2003 regarding the organization of the telecommunication sector. 7 of 2002 concerning copyrights and neighbouring rights Federal Law No 37 of 1992 on trademarks as amended by Law No. 5 of 1973 Federal Law No.United Arab Emirates Page 15
Council. 18 Article 47 of the Constitution. 10 of 1980 concerning the Central Bank. the sole Ministry authorized to sign such agreements is the Ministry of Foreign Affairs. The main trade-related laws and regulations of the UAE are presented in Table II. industrial drawings and designs Federal Law No. According to Federal Law No. each Ministry negotiates international agreements within its jurisdiction. 12. 7 of 1976 establishing the State Audit Institution Federal Law No. import and export procedures. 4 of 1983 on the Pharmaceutical Profession and Pharmaceutical companies Federal Insurance Law No. 18 of 1993 UAE Federal Order No. 54/4. and to the President of the Federation. substantive decisions by the Supreme Council must be taken by a majority of five out of the seven members. 16 of 1975 (the public tenders law) Ministerial Decision No. 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 1.1. 333 of 2004 regulating the activities of foreign insurance companies Federal Law by Decree No. Under Article 49 of the Constitution. 9 of 1985 Ministerial decision (Minister of Economy and Commerce) No. part 5 of the UAE Constitution (Articles 100-115). 1 of 1979 organizing industrial affairs Federal Law No. 5 of 1985 Federal Law No. However. In descending order. 8 of 2001 Federal Law No. 60/7 and 91 of the Constitution treat the same issue. for approval15. 1 of 1972. and regulations. 17 of 2002 on the industrial regulation and protection of patents. 20 of 2000 on Administration of Contracts System Federal Law No.
. 21-22 December 2002) Federal Law No. 8 of 2002 Federal Law No. the Constitution is followed by laws. 18 of 1981 concerning the organization of commercial agencies. which can delegate its authority to other ministries17.
Table II. 14 of 1988 Federal Company Law No. and include the votes of Abu Dhabi and Dubai. The Cabinet is also obliged under the Constitution to notify to the Federal National Council of all international agreements and covenants. the amended Federal Law of 1991. The Federal Supreme Council is responsible for ratifying and endorsing international agreements and covenants18. the monetary system and organization of banking Subject Tariff Customs regulations. the bills are signed by the President and published as laws in the Official Gazette16. Decisions relating to procedural matters are taken by simple majority. Once ratified by the Supreme Council. 17 Articles 46/6. 4 of 1985 and Federal Law No. decree-laws. as amended by Federal Act No. once ratified. and the Executive Order of the Supreme Committee No.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. prevail over domestic legal instruments.
as well as establishing institutions to monitor this legislation.
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. this has been achieved to a large extent. and by Commercial Agency Law No. the UAE still needs improved and targeted WTO technical assistance in customs valuation. (3) POLICY OBJECTIVES
14. an international customs agreement. the extension of national treatment to all GCC nationals. 14 of 1988 (sections (4)(i) and (5) below). competition policy. built around economic liberalization and diversification. respectively. exemption of production inputs from tariffs. (788) of 2009 on Protection of Wages. 18 of 1981 and amending Law No. The government is to continue to promote a progressive economic agenda. inter alia. and create more employment opportunities for all its citizens.Trade Policy Review Page 16
Federal Law No. 23 of 1991 concerning the practice of the advocate profession and amending laws. 8 of 1984. According to the authorities. The Agreement requires the contracting parties to accept the ATA carnet. 13 of 2007 on Commodities that are Subject to Import and Export Control Procedures Anti-Fronting Law (Concealment Law) no 17 of 2004.
13. diversify the economy away from oil. 20 of 1987 1997 and No. 5 of 2002 Federal Law no 1 of 2006 concerning Electronic Transactions & E-Commerce Federal Law no. (8) of 1984 (Companies Law) with the effect of abolishing minimum share capital requirements in respect of limited liability companies (LLCs) . 4 of 2000 (Stocks and Commodities Authority) Federal Law No. The UAE has also taken steps to align its trade-related legislation on the WTO Agreements. investment in the UAE is regulated by Commercial Companies Law No. In general. As a member of the Gulf Co-operation Council (GCC). Federal Law No 2 of 2010 amending provisions of Federal Law No.
. However. Federal Law No. 15 GCC resolutions had been adopted. Cabinet approval for the UAE admission to the Convention on Temporary Admission (the Istanbul Convention). & UAE Cabinet resolution no 229 of 2007 Ministerial Decree No. The UAE's main goal is to develop sound economic (including trade) policies to increase growth. As of 10 October 2005. 18 of 1981 (Agency Law). and introduction of an industrial organization law/regulation in GCC countries. the UAE has harmonized its traderelated legislation with that of the other members (section (4)(ii)(a)). covering. Federal decree amending Article 227 of the UAE Commercial Companies Law. 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. No. import and export procedures
Customs regulations. TBT. import and export procedures
Source: Information provided by the UAE authorities. and promotion of the role of the private sector. and SPS measures. (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.
The strategic priorities and enablers are not fully comprehensive but comprise the major focus areas for the government. the UAE already has quite a liberal trade regime. discussions are under way in the UAE to re-examine the federation's commercial law. Finally. A competitive economy driven by knowledgeable and innovative Emirati.which combined lead to the fulfilment of relevant main direction -and which the government will work to achieve during this strategy cycle.ae Source: Khaleej Times 21 Source: http://emiratisation. 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. when the country will be celebrating the golden jubilee anniversary of the formation of the Union20. The Federal Government provides the broad framework for policymaking in the UAE. it seeks improved market access for its products through multilateral trade liberalization. To this end. This will be archived via developing the competitiveness strategy for the UAE and proposing policies and initiatives to enhance competitiveness of all major sectors21.ecc. The government recognizes the importance of trade and investment to its overall goals. A strong union bonded by a common destiny. which limits foreigners to minority stakes in firms established outside of free zones. the second cycle of the UAE Government Strategy for the years 2011-2013 was announced in March 2010. and consists of seven general principles.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. however. The Emirates Competitiveness Council was established in 2009 . It forms the basis upon which the federal entities develop their strategic and operational plans. Furthermore. and seven strategic enablers. and to extend foreigners the right to own and lease real estate.uaepm. 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” . 16. The UAE Government Strategy 2011-2013 lays the foundations to achieve the UAE Vision 2021.growth.ae
. innovation-based clusters22 18.
17. Each strategic priority and enabler includes general main directions and specific sub-directions . diversify the economy away from oil. and bilateral and regional trade agreements.org 22 Source: Emirates Competitiveness Council : www. The seven strategic priorities are the themes that define the priorities of the UAE Government over the coming three years. ECC aims to increase productivity . The UAE federal Government launched its first strategy in 2007. seven strategic priorities. The seven general principles steer the work of the UAE Government and apply across all strategic priorities and strategic enablers.United Arab Emirates Page 17
15. A nurturing and sustainable environment for quality living. most key decisions are made at the emirate level. 19. Dubai is involved with most new
Source: Prime Minister Office: www.
irena. thermal surfaces and their designs24 . upstream hydrocarbons resources and downstream industrial projects. Abu Dhabi. Diversification will include developing further the emirate's tourism. 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. September 2005. The guide contains general rules on the application of green building standards on new government projects implemented by the Ministry of Public Works.from research to commercial deployment – with the aim of creating scalable clean energy solutions.Trade Policy Review Page 18
initiatives. media.ae 25 Source: Masdar (the Abu Dhabi Future Energy Company) 26 Source:IRENA www. especially carbon dioxide. Source:www. cooling systems. 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. and is expected to accelerate its diversification process to compensate for its small and declining oil industry. financial. Masdar Power and Masdar Venture Capital . commercialisation and deployment of renewable energy solutions and clean technologies.In addition. The UAE Government published the Policy of the United Arab Emirates on the Evaluation and Potential Development of Peaceful Nuclear Energy. Masdar city is a multi-faceted company advancing the development. b) The UAE is committed to pursuing the highest standards of non-proliferation. promoting public health. The project contributes to energy consumption in all its forms. shipping. reduce harmful emissions from sources of cooling water. in April 2006 Masdar (the Abu Dhabi Future Energy Company) was established. the clean technology cluster city.org
. notably in the petrochemicals subsector. It will also promote plans to sell off a number of non-hydrocarbon industries. energy. meanwhile. improving the quality of the internal environment of buildings. 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. 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. On July 2010 the Vice President and Prime Minister of UAE and Ruler of Dubai has approved "Green Buildings Project" in the UAE. as well as expanding its industrial base. and commercial services. intends to continue to invest heavily in the development of its large. and continue efforts to privatize substantially the power and water subsectors in the near future. Through the policy paper. 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. Masdar consists of three business units and one investment arm: Masdar Carbon. 21. which outlines the government's fundamental principles for its work in this area. which would increase the environmental safety and establish clear and certified standards for green buildings in the country. In Spring 2008. indoor environmental quality and surfaces. Masdar is associated with the Masdar Institute of Science and Technology a joint programme with Massachusetts Institute of Technology25.wam. water usage. Tapping into renewable energy become an economic prerequisite.23 20. It integrates the full renewable and clean technology lifecycle . Dubai has announced the launch of several new free zones.
The Economist Intelligence Unit.
22. c) The UAE is committed to the highest standards of safety and security. water conservation.
These are important steps in achieving the UAE's aspiration of delivering the highest standards of safety within any future peaceful nuclear energy program. the UAE suggested the inclusion of a new sector (raw materials.2 of respectively 20 May 2003. 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. and 21 April 2005
.2). Its main interests in the Doha Development Agenda (DDA) include greater non-agricultural market access (NAMA). 26. 37Add. President of the UAE issued Federal Law No. The UAE grants at least most-favoured-nation (MFN) treatment to all its trading partners. 23. and further liberalization of trade in services. it had been a contracting party to the GATT since 8 March 1994. (4) (i) TRADE AGREEMENTS WTO
24. In NAMA. The UAE became an original Member of the WTO on 10 April 1996. which is basically in line with the policy objectives set
WTO document TN/MA/W/37. The UAE has fulfilled most of its notification requirements (Table II. import licensing. f) The UAE will approach any peaceful domestic nuclear power program in a manner that best ensures long-term sustainability. rules of origin. It is playing an active role in the current round of multilateral trade negotiations. 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. which was published in April of 2008. The law represents a key component of the necessary legal infrastructure. including prohibiting the development. 25. Missing notifications are essentially in the areas of agriculture. The UAE is neither a signatory nor an observer to any of the WTO's plurilateral agreements. On 4 October 2009: His Highness Sheikh Khalifa bin Zayed Al Nahyan. It benefited from transition periods (available to developing countries) to implement some of its commitments including under the Agreement on Customs Valuation. except Israel. 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. The law also institutionalized other elements of the UAE's policy on the evaluation and potential development of a peaceful nuclear energy program. and state owned enterprise. 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. The UAE is a strong believer and advocate of the multilateral trading system. 6 of 2009 Regarding the Peaceful Uses of Nuclear Energy. either directly or as a third party. It has not been involved in any dispute under the Dispute Settlement Mechanism.1 and Add. including non-ferrous metals. as well as with the assistance of appropriate expert organizations. with primary aluminium as its strategic priority) into the proposed list to be covered by the sectoral tariff elimination approach. e) The UAE will work in partnership with the governments and firms of responsible nations. The UAE also submitted its initial offer in services. construction or operation of uranium enrichment or spent fuel reprocessing facilities within the borders of the UAE.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.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.
1/Rev.4 G/SCM/N/18/Add. XVII GATT No subsidies
Agreement on Subsidies and Countervailing Measures Article 25.
Table II. then changes Once.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. new collective requests have been received from certain WTO Members and are under consideration.4 25 April 1997
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. then changes regulations Article 16.11
G/SCM/N/38/ARE G/SCM/N/48/ARE G/SCM/N/60/ARE 18 April 2000 G/SCM/N/52/Add.2(b) Import licensing laws and regulations
Once.Trade Policy Review Page 20
by the Government and its reform process currently under way. November 2010 WTO Agreement Description of Periodicity requirement Agreement on Agriculture Articles 10 and 18. then changes
G/PSI/N/1/Add. then changes State Trading Article XVII 4a GATT
G/SG/N/1/ARE/1 27 March 1997 G/STR/N/1/ARE
No State Trading enterprises within the meaning of art. Annex B Sanitary and Ad hoc phytosanitary Measures Agreement on Safeguards Article 12.
.4(a) and 8.2 Export subsidies Annual Article16. The UAE supports the strengthening of technical assistance programmes for developing and least developed countries.2 Article 18.2 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
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.2 UAE's selected notifications to the WTO. 4 July 2005.6 Safeguards Once.4 AD Semi-Annual
Article 16.1 Subsidies Annual
Article 25.1 2 May 2000
No countervailing action during the period 1 January-30 June 1999
WTO document TN/S/O/ARE. 1 19 April 2000 G/ADP/N/14/Add.5 Laws and Once.5
Agreement on Import Licensing Procedures Article 7.1/Rev. subsidies and countervailing duties
Agreement on Implementation of GATT Article VI (Anti-dumping) Article 18.28 Recently. Emergency measures
Agreement on Sanitary and Phytosanitary Measures Article 7. UAE does not have any non-preferential ruling of general application relating to rules of origin.3 Import licensing Articles 1.
The UAE has adopted an open-minded approach in pursuing high-standards.2 Copyright and neighbouring rights Once. Available at: http://www. then changes
G/SCM/N/1/ARE/1 26 March 1997
Agreement on Technical Barriers to Trade Articles 10. Kuwait. G/MA/NTM/QR/1/Add.3 Enquiry point [X ] 2.20. and the United Arab Emirates. then changes Article 63.1 and 10.
GATT 1994 Article XVII:4(a) and Understanding on the Interpretation of Article XVII:1 Article VII . then changes
Ministry of Economy Federal Law No. Oman. their vast surface area (2. 19 November 1998. 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.29 Behind its formation was a general perception by these countries of their vulnerability arising from their oil wealth.html. procedures from 31 January quantitatve 1996 restrictions Agreement on Trade-Related Aspects of Intellectual Property Rights Article 69 Contact points Once. 7 of 2002
Source: WTO documents.9 28 April 2009
Comment No countervailing duty action have been taken during the period 1 January-30 June 1998 No legislation
Article 32.United Arab Emirates Page 21
ARTICLE 25. The main objectives of the GCC Agreement are regional cooperation and integration
See GCC online information.4/Add. and their limited military capabilities in a generally unstable region.11
Description of requirement Countervailing duty action
Most recent notification G/SCM/N/40/Add.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.6 million square kilometres).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. III:3 General Agreement on Trade in Enquiry point Once.org/index_e. their small and dispersed populations (28 million).7 16 June 2000 IP/N/3/Rev.5. then Services (GATS) Art. in recognition of the potential of such agreements to reinforce global trade liberalisation. Saudi Arabia.gcc-sg.9. (a) Gulf Cooperation Council (GCC)
27. then changes Monthly
G/TBT/ENQ/26.1/Rev. 3 March 2004 G/TBT/GEN/N/109
Members instructed the Secretariat to prepare a monthly list of notifications. WTO-consistent FTAs with its trading partners.6
Once. The GCC was created on 25 May 1981 by Bahrain.2 Monthly list of notifications
Egypt. Turkey and the Mercosur. The GCC is currently engaged in negotiating FTAs with a number of other countries and economic blocks.mohammed.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. Syrian Arab Republic. GCC leaders endorsed five macroeconomic and budgetary convergence criteria for monetary union by 2010. Libyan Arab Jamahiriya.cnn. However. as well as financial and monetary coordination including adoption of a common currency.dubai/index. Since January 2003. In June 2010. the GCC and EC concluded a Cooperation Agreement under which their Foreign Ministers hold a Joint Council/Ministerial meeting once a year. all trade barriers among its members were eliminated without exception on 1 January 2005. the GCC member states set up a freetrade area. Lebanon. Therefore now we will not change anything for the time being until we see something solid really and profitable”31. and standards and technical regulations. standards. Greater Arab Free Trade Area (GAFTA) was notified to WTO by Saudi Arabia in 2006. inflation rates. movement of capital. and in force since 1 January 1998. communications. and energy. Tunisia.Trade Policy Review Page 22
in all economic.
. New Zealand. 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. non-tariff barriers. Under the treaty of the Greater Arab Free-Trade Area (GAFTA)33. These include Australia. 28. Korea. on the issue of joining the Gulf Currency. The objective of this agreement is to facilitate trade relations. 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 Yemen. transport. until we are sure. industry. ownership of real estate. including a cap on budget deficit relative to gross domestic product. in particular. and cultural affairs. At a December 2005 summit in Abu Dhabi. Somalia. India. 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 . well the UAE said 'not yet' and I think they are right. work. Japan. the Prime Minister of the UAE Sheikh Mohammed Bin Rashid Al Maktoum explained: “we said. The treaty also provides for rules of origin (Chapter III (2)(iii)). Jordan. 29. on 11 October 1984. China.
Gulf Cooperation Council: The GCC Process & Achievement Source: CNN Exclusive Interview: http://edition. In 1989. lengthy bureaucratic and administrative procedures at the borders. Pakistan.html?fbid=3O10dRrTGvW 32 European Commission (2003). Palestinian Authority. and to contribute to strengthening stability in a strategic part of the world. In 1983. Iraq. with equal treatment of GCC citizens in each member country in respect of freedom of movement. including trade. Nonetheless. transit fees.com/2010/BUSINESS/06/22/sheikh. However the common GCC currency has run into difficulties since the 2006 withdrawal of Oman and the UAE following suit in 2009. That agreement was notified to the GATT. including fully harmonizing the list of products subject to rates higher than 5%. signed on 19 February 1997. under the enabling clause. (b) Greater Arab Free-Trade Area (GAFTA)
30. 33 The GAFTA members are: the GCC members plus Algeria. and certificates of origin are reported. finance. and adequacy of foreign exchange reserves. investment. Morocco. The principal entity responsible for implementing the programme is the Economic and Social Council of the League of Arab States (LAS). The withdrawal of two major economic powerhouses. whereby originating goods were exempt of customs tariffs. Sudan. residence. the public debt to GDP ratio. and on national interest rates. and the common GCC Common Customs law of 2003 provides for common origin rules for all the members (Chapter III(2)(iii)). Its specific objectives are to achieve a common market. practical details of certain trade issues have yet to be addressed. social.
34.7%. The United Arab Emirates exports to Arab States (FOB value). In March 2004. The Greater Arab Free Trade Area (GAFTA) has contributed towards increasing intra-Arab trade as a percentage of total Arab – Global trade. Arab Monetary Fund. In the mean time.3% in 2008. projects and activities mutually agreed and spelt out in supplementary agreements specific to each joint programme. improvements in intellectual property right protection. and rose further to $7.5% increase in exports reaching approximately $1. Morocco (17 March 2002).2% increase reaching approximately $702 Billion. The weight of Arab exports as a percentage of global exports also increased to constitute 6.int 36 Source: US Department of States: http://www. Jordan (17 March 2001). 35 Source: www. The MOU will provide a framework of co-operation between the parties. This is primarily attributed to the steady increase in oil prices during the first 7 months of the year 2008.state. 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. The UAE has signed bilateral trade agreements with Syria (signed on 12 November 2000). including petroleum products grew by threefold in five years from $1.9 billion in 2008.9 billion in 1999 to approximately $6. with the
Petroleum products are not covered by the GAFTA Treaty. The United States and the UAE have since initiated a "TIFA Plus" consultative process under the existing bilateral Trade and Investment Framework Agreement (TIFA). In early 2007. to roughly $14. which was 4-5% in the 90s. in comparison with 12. Moreover.4 billion in 2008.Moreover. Trade agreements are under consideration with Australia. The same thing occurred with regards to the Intra-Arab imports that also registered a decrease in relation to total exports. UAE imports from Arab States increased from $1. to $3.6 billion in 1999. which will facilitate the joint implementation of programmes.050 Billion. Joint Arab Economic Report. The percentage of Intra-Arab exports as part of total Arab exports was 8.1% during the previous year. According to the authorities. overall Arab imports registered a 32. they would not be able to complete FTA negotiations under the existing time frame for trade promotion authority. The overall value of Arab trade in 2008 registered a 32. TIFAs promote the establishment of legal protection for investors.United Arab Emirates Page 23
31.gov/e/eeb/rls/othr/ics/2010/138163.3%. project or activity35.1% in 2008.htm
. The United States began negotiating a Free Trade Agreement with the UAE in March 2005. and Iraq (2 April 2002).6 billion in exports to Arab states. 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.8 billion in 2004.5 billion in 2004. more transparent and efficient customs procedures. this process will be used to advance trade liberalization in as many areas as possible . (iii) Bilateral agreements
33. and greater transparency in government and commercial regulations. coming in second place after Saudi Arabia’s $38.34 (c) The Common Market for Eastern and Southern Africa (COMESA) 32. The increase came to satisfy the needs of economic activity in light of the continued growth in most Arab States. while the weight of Arab imports as a percentage of global imports also increased to 4.comesa. in comparison with 8. the United States and the UAE announced that despite considerable progress in a number of areas under negotiation. the Gulf Cooperation Council (GCC) signed a Memorandum Of Understanding (MOU) with COMESA. On April 2010 in Riyadh. the percentage of Intra-Arab imports as part of total Arab imports was 11. Lebanon (2 March 2002).9% the previous year.building where appropriate on progress made during the FTA negotiations36.
In Dubai. 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.Oman and Saudi Arabia are members in the ITA and the rest of the GCC are in the process of joining this agreement37. the World Islands. However under Order no. At the federal level there is no consolidated legislation governing the acquisition of real estate by foreigners. The UAE's investment policy is implemented through licences. which must appoint a local services agent or "sponsor" (Chapter III(2)(i))39. Emirate Hills and Al Barsha. GCC citizens. each emirate’s natural resources and wealth are publically owned by the said emirate. [26 ] free zones exist. Federal Act No. its investment policy continues to limit foreign investment and competition between local and foreign investors. Free zones have been continuously expanded to accommodate economic demand and to implement innovative ideas. and [ 12] new zones are under consideration and implementation. professional licences covering all services and artisans. (5) INVESTMENT FRAMEWORK
37. While the UAE's economic environment is generally liberal and business-friendly. 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. The list includes 23 areas and 45 plots including Jebel Ali.000 expatriates have already moved in. Currently. Dubai Marina. The UAE joined the Information Technology Agreement (ITA) in the WTO. not by individual members. 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. The law aims to offers reassurance and guarantee to home buyers and investors and to boost confidence in the real estate market. the Palm Island projects. investment licences can be obtained only by domestic companies that are majority-owned by UAE nationals. 38. (iv) Other preferential arrangements
35. In 2007 the Emirate of Dubai introduced Law 8 2007 an Escrow Law Account . there are three categories of licences: industrial licences for industrial activities. According to the UAE constitution. More than 15.
Source: WTO Documents G/IT/1/Rev. as amended by Law No. While certain general provisions of UAE law refer to property rights. 29 June 2010. to a certain extent. Licensing procedures are publicly available and transparent but vary from emirate to emirate. For example. all future bilateral agreements will be negotiated at the GCC level. Bahrain .
. 36. In June 2006. and commercial licences covering all kinds of trading activities. Foreign companies or non-national individuals may own 100% of projects located in the free zones (Chapter III(3)).42. except in the free zones where 100 per cent foreign ownership is allowed. The UAE does not participate in the Global System of Trade Preferences (GSTP) among developing countries. 14 of 1988. 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.Trade Policy Review Page 24
exception of the ongoing bilateral negotiations with the United States. and must be utilised and preserved for the sake of the national economy. The Outside of free zones. 18 of 1981. or by 100% foreign-owned branches. the basic requirement for all business. the matter is generally left to the discretion of each emirate. 39 Trade Agencies Law. 3 of 2006 Dubai has designated areas where expatriates can enjoy freehold ownership in Dubai.
For example. and dispose of such property. and air transport services.41 The partners may agree to share the profits in proportions that differ from their capital share. insurance. There are 2. Under the CCL.fujairahmunc. tourism. The amended law has been applied retrospectively to companies established on or after 1 June 200942. In Abu Dhabi. The government of Ras Al-Khaimah set its own public joint stock company RAK Properties PJSC and granted 4. and in electricity. under the new law. Foreigners have also been given the right. courier.44 Once licensed by the economic department of the emirate. 8 of 1984 (the Commercial Companies Law . The Law also stipulates that management of the company may be undertaken by the foreign partner.uaeinteract. 42.ae. The law also allows GCC citizens to own real estate located in investment areas.ae). 44 These are the Abu Dhabi Municipality (online information available at: http://www. companies are defined as any "economic project". the restriction no longer applies to GCC nationals. both local and foreign. the emirate of Sharjah adopted a resolution (in 2005). to lease real estate in investment areas located in Abu Dhabi for a limited duration. the Fujairah Municipality (online information available at: http://www. who can therefore own 100% of a company's capital. However. In 2009 the President of the United Arab Emirates introduced an amendment to the companies law. All companies must have one or more national partners who account for at least 51% of their capital. In contrary to the previous law. exploit.United Arab Emirates Page 25
39. outside the free zones.ae).com 43 The representative office may promote business for the products and services provided by the parent company. a law on land ownership was adopted in 2005.adm. 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.CCL) regulates the establishment of companies. Under the CCL. The foreign branch may exercise only the activities for which it is licensed by each emirate. petroleum. 19 of 2005. the citizen has the right to register such ownership and is entitled. If approved by the MOE the application goes to the economic department of each emirate in which the business is to be undertaken.gov. the amendment to the capital requirements. the Dubai Municipality (online information available at: http://www. foreign companies may also exercise their main activity in the UAE by opening a branch or a representative office43. According to the authorities. within the limits of the law.40 The law stipulates that real estate granted by the Government to a citizen before or after issuance of the law. and specifies the terms of the surface lease contracts on real estate outside investment areas. Other emirates have their own regulations and decisions governing land/property ownership. accounting. A foreign branch or office can be 100% owned by the foreign company. since 2005.dm. gas. and operate in construction.gov. 40. 42 Source: www. the Ra's al-Khaimah Municipality. and water desalination. to use.256 registered foreign companies at the Federal Ministry of Economy (MoE) functioning through 2700 branches in the UAE .
. the Sharjah Municipality. and the Umm al-qaiwain Municipality. 41.gov.6 million square metres of land for the development of a wide portfolio of residential and industrial projects. which specified Dh 150. Federal Company Law No. Under the amended law. the Ajman Municipality.000 as a minimum to create such companies. the company must apply to the MOE for this licence. which stipulates that the owner of a property is not permitted to sell it to non-GCC citizens. and facilitate contacts between the company and its UAE clients. it is not licensed to conduct business operations or marketing directly in any manner. such sales may only be possible after approval by the ruler of the emirate and under specific conditions. excluding companies operating in the hydrocarbon industry. is his or her own property.
Law No. 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.).
which handled agency disputes. a foreign company may appoint an agent that is not registered in the MOE. a commercial agency may only be deregistered by mutual agreement or pursuant to a court order. Foreigners may form sole proprietorships45 to practice certain activities in some emirates in some professional services such as. or either party to a non fixed-contract wishes to terminate the contract. 2 of 2010 has gone into effect with amending some provisions of Federal Law No. 43. with no capital share and management power (see Chapters III(2)(i) and IV).
44. This form of business entity is referred to as an "establishment" rather than a company. 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. A foreign sole proprietor is also required to appoint a local services agent. In 2006. 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. Furthermore.pdf
. The agent's services consist mainly in maintaining contacts with the governmental authorities. in this case. and non-trading activities. termination can only occur by bringing the matter before the court and the court’s ordering deregistration. which was issued by the president of the United Arab Emirates His Highness Sheikh Khalifa bin Zayed Al Nahyan. the contract cannot be defended in the court under the Trade Agencies. even if the term of the agreement has been initially limited. According to the Law. 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. approvals. 46 Source: United States Trade Representative Office : www. once an agency agreement registered. the UAE made important changes to the Commercial Agencies Law (Agencies Law). 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. either party (not only the agent) may request compensation for a prejudice caused by the termination of the agency contract. engineering consultancies. and had restricted the number of agents a foreign principal could appoint as well as the terms of the agency relationship46. 13 of 2006 to the Commercial Agency Law. legal consultants. regarding the regulation of commercial agencies. Agency Disputes: Eliminated the Ministry of Economy’s Trade Agencies Committee. Before changes to the agency law were introduced in 2006. As noted above. which previously had required that all commercial agents be either UAE nationals or companies wholly owned by UAE nationals. Once more. Pursuant to amendments introduced by Law No. 18 of 1981. a new amendment to the agency law was introduced in 2010. 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". The agent's remuneration depends on the contract.Trade Policy Review Page 26
the company licence is registered by the MOE. such that. and considering Articles 27 and 28.gov/sites/default/files/uploads/reports/2010/NTE/2010_NTE_UAE_final. Federal Law No. 45. computer consultants. it could not be terminated without the agent's approval (except after a decision by the Commercial Agencies Committee of the MOE). and authorizations.ustr. and obtaining the relevant licences. Damages :Allowed either party to file for damages. 18 of 1981. which were added to Federal Law No.48 medical services. agency contracts may or may not be time limited In addition. e) Agent Consent: Allowed the import of “liberalized goods” without the agent's approval.
47. Under the law. or if there were substantial grounds to justify the termination of the agency . Article 28 states that the Committee shall consider any dispute which may arise relating to an Agency that is registered with the Ministry.
. placement services. compensate its members. The Committee would then use that which it deems appropriate to perform its functions. services incidental to agriculture.47 Similarly. The Foreign Investment Law will serve as a onestop-shop law reflecting government policies towards foreign investments. unless there is a fundamental reason that would justify its termination or non-renewal. services incidental to fishing. 49. electricity. 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. investigation and security services.3). rental/leasing services relating to cars. water and electricity sectors. The UAE's hydrocarbon industry is specifically excluded from the provisions of the CCL. It is owned and controlled by the respective emirates. The UAE has signed various bilateral trade and investment framework agreements (Table II. 46. and the law shall be applied on the following day of its publication in the Official Gazette. which must start looking into it within 60 days from the date of application for dispute review.United Arab Emirates Page 27
for a client to terminate an agency contract or fail to renew it. 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.that are found convincing by the Commission. 48. 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. as long as the application is complete. 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 water utilities are supplied by state monopolies. gas. unless it was cancelled through mutual consent between the agent and the client. hunting.
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. Additionally. and passenger and freight road transport. although the Emirate of Abu Dhabi has announced the partial privatization of several electricity and water plants (Chapter IV(3)(iii)). or from the date of the completion of the required documents. after which the decision would be final and cannot be appealed. Article 27. and foreign participation must take the form of joint-ventures (Chapter IV(3)(ii)). It also states that the parties of the dispute may not go to court over their dispute before first presenting it to the Committee. every other ruling contrary to or inconsistent with its provisions is cancelled. Certain activities are reserved for UAE nationals and for companies totally owned by UAE nationals: real estate services. including veterinary medicine stores. There are no restrictions on investment abroad by UAE nationals. Some of the above mentioned activities can be practiced by GCC nationals. Projects involving foreign participation in these subsectors are generally majority state controlled and owned by the State or by UAE nationals.or not renewing it . or if there was a judicial verdict for its cancellation. gas. and specify dispute review fees. and its decisions may be challenged at the relevant court within 30 days of the date of the notification of the Committee’s decision. 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. which was introduced in the law that was published in the Official Gazette. It will regulate foreign investors’ rights. and forestry. The UAE is a member of the Multilateral Investment Guarantee Agency.
(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. Not available..
.3.. 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 .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
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.
.3.United Arab Emirates Page 29
Federal procurement appears to be conducted competitively. importer. A prerequisite for doing business in the UAE is having the appropriate licences (Chapter II(5)). The main characteristic of the UAE's export policy is extensive reliance on free zones. particularly with respect to the import and export of goods. construction company). These free zones are exempt from all the licensing. 5. 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. at ceiling rates (in general) averaging 15%. who must be GCC nationals.Trade Policy Review Page 30
III. Customs procedures are simple and largely computerized. they are generally based on internationally accepted standards. and has backed up commitments to strengthen and enforce intellectual property rights with the establishment of a new Intellectual Property Office at the MOE. as well as the activity of the licensee (e. some of them are their own regulatory bodies.
. 2. "emiratization". . it also constitutes a barrier to full GCC integration. and exclusive distribution rights
6. and can be tendered electronically. from which 80% of non-oil exports originate. Its MFN tariff is based on the GCC's Common External Tariff. countervailing or safeguard actions. and only those products mentioned on the licence. The UAE has passed a number of laws relating to intellectual property. and other domestic regulations that otherwise apply to the UAE customs territory. There is strong reliance on foreign companies. (2) (i) MEASURES DIRECTLY AFFECTING IMPORTS Registration. including state-owned enterprises and municipalities.g. The trading licence is valid only for the emirate in which it is issued. with provisions varying from contract to contract. 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. can clear imports only on behalf of the licensed importers.1% in 2005. reflecting the authorities' policy to facilitate trade. 4. Few technical regulations are implemented at the border. 3. Clearing agents. with the majority of rates at 5%. The UAE's position as the main commercial hub of the Middle-East is due in great part to its relatively liberal trade regime. its rates averaged 5. 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]). An importer obtains this licence from the economic department of the emirate in which business is to take place. The entire UAE tariff is bound. several state-owned companies successfully compete worldwide. particularly to realize major projects for which local expertise is not available. licensing procedures and regulations vary from emirate to emirate. agency. The UAE has taken no anti-dumping. all entities carrying out trade must be in possession of a trading licence. which in the case of several emirates includes a large re-export industry. for example where products are found to be faulty or dangerous. procurement by the other public bodies. (1)
TRADE POLICIES AND PRACTICES BY MEASURE INTRODUCTION
1. it specifies the products that may be imported. appears to be relatively opaque. Nonetheless. In particular. national ownership.
the principal (owner of the trade mark or manufacturer of the brand). systems. importing activities.000 (US$1. Information provided by Annual Trade Agencies Statistics 2007 . and educational games and toys Sport equipment and children toys Others Newspapers. and jewellery Oil-production equipment Petrochemical. mechanical. and drainage equipment Pharmaceutical and medical equipment Fire extinguishing. According to the authorities. accessories. the trading licence can be obtained by either majority-owned UAE companies or by 100% foreign-owned branches of foreign companies. antiquities. Trade Agencies Law. a large percentage of imports take place under the Trade Agencies Law.
Table III. Information on the share of total imports carried out by exclusive agents is not available. furnishing and equipment for offices. and is renewable annually against Dh 2. An agent must be a UAE national. electrical. pesticides.
9. as amended by Law No. in its own name.1 However. 9940 agencies were registered at the end of 2007. and home appliances Building materials and equipment Agents & flying equipments Textiles. shops and home materials. as well as the sale. 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. or a company owned by UAE nationals.000 (US$545).S. the agency agreement must be registered with the Ministry of Economy (MOE).United Arab Emirates Page 31
7. advertising and printing equipment agents Packing. the area of coverage (one or several emirates). 14 of 1988.1 Commercial agencies by type of activity 2007 Activity Engineering.3 8. it could not be terminated without the agent's approval
Federal Company Law No. perfumes. and photographic devices Office materials and equipment. In order to benefit from exclusive import and distribution rights.2 According to business sources. agricultural items. safety and security equipment Vehicles. 18 of 1981. it is difficult to distribute imported products without a local agent. 3 U. Department of State (2005).1). products. laboratory instruments.
. whereby the trading licence is held by exclusive commercial "agents". The registration costs Dh 5. once an agency agreement registered. are reserved for exclusive "agents". and wholesale and retail distribution services. clothes. water desalination. Under the Trade Agencies Law. The agency agreement/contract specifies the agent. Before changes to the agency law were introduced in 2006. heavy and light equipment. 8 of 1984 (the Commercial Companies Law . gifts. metallic products and oil and gas exploration equipment Electronics. and leather products Foodstuff Furniture. equipment. fishery. and appliances Animal. and veterinary products Consultancies Shipping equipment Audio-visual.360). tools and repair equipment Cosmetics. display or rendering of a commodity or service in the UAE. scientific.CCL). 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. tobacco.(Table III. and the brand and models of the product that can be imported and sold exclusively by the agent. Federal Act No. and stowing. electrical.
which may. pursuant to which goods specified by the Cabinet as liberalized goods may enter the market even without the agent’s approval. 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. 13 of 2006 to the Commercial Agency Law. a commercial agency may only be deregistered by mutual agreement or pursuant to a court order. cooking oil.4 The efforts of the UAE Governments’ to ensure price stability is further exemplify by an amendment by Law No. or either party to a non fixed-contract wishes to terminate the contract. and specify dispute review fees. rice. following price increases. 18 of 1981. where the parties to a fixed-term contract wish to terminate the contract summarily. after which the decision would be final and cannot be appealed. the MOE exempted a list of basic food items from the coverage of the Trade Agencies Law. 18 of 1981. As noted above. connection with someone with a good knowledge of local customs and markets. chickens. Under the law. vermicelli). The Committee would then use that which it deems appropriate to perform its functions. regarding the regulation of commercial agencies. and considering Articles 27 and 28. or if there was a judicial verdict for its cancellation. either party (not only the agent) may request compensation for a prejudice caused by the termination of the agency contract. In general. a foreign company may appoint an agent that is not registered in the MOE. Furthermore. the agent is entitled to prevent the products from being imported by others into the specified territory. 11. 13 of 2006 to the Commercial Agency Law. and the law shall be applied on the following day of its publication in the Official Gazette. 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. New amendment to the agency was again introduced in 2010. contribute to exceptionally high retail margins on imported branded products. cheese. and the availability of outlets to distribute the product. termination can only occur by bringing the matter before the court and the court’s ordering deregistration. coffee. as long as the application is complete. frozen and canned vegetables. even if the term of the agreement has been initially limited. Article 27. unless there is a fundamental reason that would justify its termination or non-renewal. it is not permissible for a client to terminate an agency contract or fail to renew it. which were added to Federal Law No. agency contracts may or may not be time limited In addition. pasta (macaroni. flour. sugar. which must start looking into it within 60 days from the date of application for dispute review. It also states that the parties of the dispute may not go to court over their dispute before first presenting it to the Committee.that are found convincing by the Commission. or from the date of the completion of the required documents. 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. which was introduced in the law that was published in the Official Gazette. such that. every other ruling contrary to or inconsistent with its provisions is cancelled. However. 2 of 2010 has gone into effect with amending some provisions of Federal Law No.Trade Policy Review Page 32
(except after a decision by the Commercial Agencies Committee of the MOE). fish products. inter alia. In October 2005. unless it was cancelled through mutual consent between the agent and the client. Pursuant to amendments introduced by Law No. in this case. the advantage for the foreign company of having an exclusive agent is a network of contacts. children's foodstuff and milk . meat and meat products. or if there were substantial grounds to justify the termination of the agency . the contract cannot be defended in the court under the Trade Agencies 10. Additionally. tea. 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.
. Federal Law No.or not renewing it . Article 28 states that the Committee shall consider any dispute which may arise relating to an Agency that is registered with the Ministry.
4 Dry and condensed milk. According to the Law. which was issued by the president of the United Arab Emirates His Highness Sheikh Khalifa bin Zayed Al Nahyan. and diapers (Cabinet Decision N° 538/1).
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
Trade Policy Review Page 34
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).
29012940. reflecting the high rates on tobacco and spirits. 2005
10. The UAE bound all its tariff lines at ad valorem rates.
Textiles.1). tariff escalation is mixed (negative from the first to the second stage.0 5.0 1. the final bound rates are entered into force after ten years (i. Some 0. including all agricultural products.Trade Policy Review Page 36
from the first to the final stage of processing (Chart III. the applied MFN rate of 5% is above the final bound rate of zero (as of April 2006). and for 0. for 13.0 All products
Non-metallic mineral products
Fabricated metal products
Basic metal products
Chemicals. this has
The HS codes are: 29011010.e.1% in 2005 (Table III. based on data provided by the United Arab Emirates authorities. apparel
Paper. it is also slightly negative in basic metal industries. 29012910. and in fabricated metal products because of duty-free imports of vessels and airplanes. 29012200. 29011050. on 33 tariff lines at the HS eight-digit level. 29012300. For most products. 29012920.0 8. 29011020. The simple average final bound rate is 14. 29012950.0
NOT APPLICABLE NOT APPLICABLE
4. 29011040.6% of lines after 15 years (April 2011). The majority of tariff lines (79% of the total) were bound at a final rate of 15%. MFN applied rates are well below the final bound rates. however. because of duty-free imports of pharmaceuticals and certain books.0 2.0 7.0 6.
25. Otherwise. some 19% of lines were bound at 10% or less.0 9. 29012930. beverages
Source : WTO Secretariat estimates. printing
. 29011030.1 Tariff escalation by ISIC 2-digit industry. while 1% of lines (covering items such as organic chemicals and pharmaceutical products) were bound at zero.
Chart III.4% of lines however.8% of lines (covering alcoholic beverages and tobacco products) carry a bound rate of 200%. and then positive) in food and beverages. the final rates were implemented with immediate effect. 29012100. plastics
Food. Escalation is slightly negative in chemicals and in paper and printing. 29012960.0 0. April 2006). For most products. compared with a simple average applied MFN rate of 5.13 According to the authorities. with duty-free imports of unwrought precious metals. the final bound rates range from zero to 200%.9%. 29011090. 29011060.2).0 3. 29012400.
29027000. and apply to production for both the domestic and export markets.1).wam. 29021900. (b) Duty and tax concessions and exemptions
26. customs departments and the private sector and specifies methods for the application of international standards related to customs work. 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. customs regulations. Industrial inputs such as equipment. e) It also helps the consistent and transparent implementation of measures and procedures. "temporary admission". or "transit" regimes. Also in May 2010. The Agreement requires the contracting parties to accept the ATA carnet. spare parts. 29025000. 29024100.ae
. 29024400. 27. 29029020. The same documentation is required for goods declared under "temporary admission". equipment used in construction.United Arab Emirates Page 37
resulted from the implementation of the GCC tariff in 2003. or transit. The agreement will provide the following: a) It comprises standards for best international practices facilitating and coordinating customs procedures. 29023000. and items for repair or maintenance. 29029010. Goods remaining in the UAE after 180 days are liable to duty payment. 29029090. f) It defines the utilization of specific risk management and procedure control based on auditing. and thus enhances and improves efficiency and effectiveness. d) The implementation of programs for the continuity customs practices and procedures. Importers do not need to hold a trading licence if they are engaged in re-export. and administrative directives. b) It eliminate disparity between customs procedures and practices of the signatories which impedes international trade and other international trade exchanges. These "privileges and exemptions" are specific to the UAE and may therefore differ from one GCC State to another. temporary admission. 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. 29024300.wam. 14 Source: www. 29022000. as well as cooperation with other local authorities. the President. The exemptions are industry and company specific. development projects. and 30068000. the deposit or bank guarantee is refunded/released on proof of re-export. and provides all parties with information required in relation to laws.
29012990. 29026000. 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. except that the goods must be re-exported within a maximum of three years of import. Importers using the "import for re-export" regime make a deposit or provide a bank guarantee in lieu of duty. raw and semi-manufactured materials. 29024200. 28. such as goods imported for exhibitions. scientific research. and information technology. The ATA carnet is now the document most widely used by the business community for international operations involving the temporary admission of goods14. Duty and tax concessions are also granted under the "import for re-export". with rates higher than those previously levied or bound by the UAE.15. c) It can facilitate international trade without negatively affecting standards of customs control.ae 15 Source: www.
including the UAE. personal effects. The GCC Common Customs Law distinguishes absolute import prohibitions from restricted imports. although this is permissible under Article 16 of the Executive Supplementary Notes to the GCC Common Customs Law. If the consignment is dispatched by sea.0031 4907.3). and controls
32.16 There is currently no duty-drawback scheme. military forces. 33. police. and religious and moral considerations. 1207.Trade Policy Review Page 38
29. Imports that are prohibited in some member States and permitted in others must not transit through the member states in which they are prohibited. Duty-free imports are also allowed for. (6) of 1986. live camels. or materials prohibited under any law in force in the country (Table III. Government Decision of 1966 Authorizing agency MI MJ MH MAF CB
Counterfeit money 4907. diplomatic missions. Imports originating from the other members of GAFTA enter the UAE duty-free.
Table III. and returned goods. any printed material that does not adhere to religion or morals that is aimed at causing corruption and disorder. inter alia. (v) Import prohibitions. All imports from Israel are prohibited. health and safety. directly from the port (ship-shore-ship or ship to ship). industrial waste. In the UAE. international organizations. In principle products from a GCC member circulate free of duty across the Customs Union. 1302. and is refunded on proof of exit of the goods out of the UAE within 30 days of the date of the transit bill. Consignments.0032 7118 Banknotes in circulation Banknotes not yet in legal circulation Coins
Government Decision of 1966 Federal Law No. licensing. ivory and rhinoceros horn. Dubai Customs Admin. including international conventions.
. They cover all kind of drugs. absolute import prohibitions are maintained for various reasons. with the exception of tobacco products and all alcoholic products excluded from the GAFTA preferential provisions.3 Prohibited products. received on a "through-bill-of-lading". 1782 of 1982. and charity institutions. asbestos. such as the diplomatic corps. are cleared on a "transit bill". Each GCC state determines its own list of prohibited or restricted products. Circular No. used pneumatic tyres. the goods are cleared on a trans-shipment bill. although GCC members are currently working on the development of a common list to the extent possible. forged and duplicate currency. (c) Tariff preferences
31. "Habara" falcons. A deposit or guarantee is required by Customs. (10) of 1980
16 Section VIII of the Common Customs Law of GCC States specifies those agencies and goods exempt from duty. the armed forces. environmental protection. consigned to a destination outside the UAE and dispatched overland. 2010 HS headings 0908. imports by charitable societies. 2939 Product/description Narcotics Reasons for prohibition Federal Law No. 30. 1211.
0000 9703. (1/43) of 2003.1030 1602. decency or deliberately imply immorality or turmoil Used and reconditioned tyres Candies in cigarette form Children's toys in form of dinosaur. bearing Israeli marks or logos 0507. Ministry of Interior Decision No.0000
Printed matter. and stone sculptures that contradict Islamic teachings. (166/94). Council of Ministers Decree No. in accordance with the system for circulation of dangerous materials and refuse Local Ordinance by Sheik Hamdan Bin Rashid No.4100 9503.3100
Toys representing animals or nonhuman creatures. (34) of 1988.4900 0106.9090
MF M Decision No. decency or deliberately imply immorality or turmoil Works of art that contradict the Islamic teachings.1000 9504. photograph. (31) and (156) of 1988. (1) of 2002 MH ME FEA MIC MH M MI MH M FEA M C C
6811 9013. oil painting. in accordance with the system for circulation of dangerous materials and refuse Part of Federal Law No. pictures. Ministry of Interior Decision No. stuffed Toys representing animals or nonhuman creatures. etc. (24) of 1999. (173/9) of 1988 Ministry of Information Decisions Nos (75). 1986 and 1996 respectively
49 701 9702. (98) of 1996 Ministry of Economy and Commerce Decision
2403. (53/2/60/2003) M MEP MH MAF
9503. falcons bearing passports.1100 Crude ivory (ivory) and rhinoceros' horn Gambling tools and machineries 3-layer nylon fishing nets
Federal Law No. consisting of lead
9701 9702 9703 4012 1704. magazines. not stuffed Falcon hunting is prohibited from September until March each year except for: falcons with permits under CITES Convention. cards. 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. and sick falcons arriving for treatment with permits from the Environment Research Authority Ozone layer depleting substances Ministerial Decree No.2000
Part of Federal Law No.1000
Halogenated derivatives of hydrocarbons Halogenated.4
Chopped or compressed tobacco (pan) Swine and its products
. (15) of 1972
Decision by Crown Prince Sheikh Maktoum Bin Rashid on 28 May 1989
Decision by the Ministry of Agriculture and Fisheries No.United Arab Emirates Page 39
Decision by Israel Boycott Office prohibiting goods from Israel. (24) of 1999. (1631) of 1998 MAF ADP FEA
Decision by Chairman of Federal Environment Authority No. books. (13) of 1999
FEA MH MEP
2903 2908.3000 5608.
05. 1/294 of 2003
Ministerial Decision No. bleached. Ornamental shrubs Cut flowers and flower buds of a kind suitable for bouquets or for ornamental purposes. dyed. dried. Ornamental birds.8112 8548.
Residues and waste from the food industries. of the poultry of heading 01. slaughtered.fresh. (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.0000 8002.0000 7902. geese.(64) of the year 2005-03-02 On terms and conditions for importation of Pet Animals to the United Arab Emirates Administrative Decision NO. mosses and lichens. branches and other parts of plants. chilled or frozen. coconut trees(Al Narjeel) and the ornamental palm trees Ministerial Decree No.Trade Policy Review Page 40
7326. being goods of a kind suitable for bouquets or for ornamental purposes fresh. impregnated or otherwise prepared.fowls of the species Gallus domestics. wild. and grasses. that is to say. Foliage. Council of Ministers Decree No. Animal forage Palm tree seedling offshoots. dried. dyed. primary batteries and electric accumulators.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. their products and offal from Alava province in Spain
Live poultry. (6/2003).0000 7602.0000 8101 . (428) of the year 2008 On extension the lift of ban for importing Somali chilled and frozen meat Ministerial Decree No. ducks. coconut
Ministerial Decree No. impregnated or otherwise prepared. Birds Meat and edible offal. fresh. prepared animal fodder.(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.0000 7503. (4/7/1234/79). Dubai Customs Ministry of Agriculture and Fisheries Decision No.(140) of the year 2005.2020 7204 7404. spent primary batteries and spent electric accumulators Meat and edible meat offal
No. without flower or flower buds.0000 7802.(276) of the year 2006 concerning ban importation of all kinds of living domestic . spent primary cells. bleached. (34) of 1991 Customs Notice No.
. turkeys and guinea fowls.
dried. geese. Ornamental shrubs Cut flowers and flower buds of a kind suitable for bouquets or for ornamental purposes. branches and other parts of plants. their products and their offal from the State of Cameron . bleached. bleached. mosses and lichens. dyed. chilled or frozen. wild. slaughtered. that is to say. dyed. impregnated or otherwise prepared. ducks. chilled or frozen. Live poultry. of the poultry of heading 01.
. dried. branches and other parts of plants.United Arab Emirates Page 41
01 02 06023 0603
Live poultry. that is to say.(112) of the year 2006 concerning ban importation of all kinds of living. Foliage. dyed.
Ministerial Decree No. dyed. of the poultry of heading 01.
Ministerial Decree No. impregnated or otherwise prepared. and grasses. impregnated or otherwise prepared. dyed. fowls of the species Gallus domestics. chilled or frozen. dried. their products and their offal from the Republic of Niger
Ministerial Decree No.(175) of the year 2006 on Ban importation of all species of living. impregnated or otherwise prepared. being goods of a kind suitable for bouquets or for ornamental purposes fresh. being goods of a kind suitable for bouquets or for ornamental purposes fresh. fresh. and grasses. Foliage. bleached. bleached. bred in captivity birds. tamed. fresh. of the poultry of heading 01. LIVE ANIMALS Meat and edible meat offal Ornamental shrubs Cut flowers and flower buds of a kind suitable for bouquets or for ornamental purposes. without flower or flower buds.fresh. Birds Meat and edible offal. Foliage. dried.fowls of the species Gallus domestics. being goods of a kind suitable for bouquets or for ornamental purposes fresh. slaughtered. ducks.05.fresh.(91) of the year 2006 on ban importation of all kinds of living tamed. wild. wild ornamental birds. geese. turkeys and guinea fowls. fresh. mosses and lichens. domestic. impregnated or otherwise prepared. and grasses. ornamental birds. without flower or flower buds. domestic. dyed.fowls of the species Gallus domestics.05. Ornamental shrubs Cut flowers and flower buds of a kind suitable for bouquets or for ornamental purposes. ducks. Birds Meat and edible offal. bleached. mosses and lichens. impregnated or otherwise prepared. dried.fresh. bred in captivity. turkeys and guinea fowls.(96) of the year 2006 on ban importation of all kinds of living birds. that is to say. without flower or flower buds. geese. dried. their products and offal from Fuon Town in Denmark . wild. and products and offal’s there from Burkina Faso
Ministerial Decree No. branches and other parts of plants. Birds Meat and edible offal. Live poultry.05. bleached. turkeys and guinea fowls.
and grasses.fowls of the species Gallus domestics.
Ministerial Decree No. their products and their offal from the Republic of Albany.fresh. Foliage. ducks. of the poultry of heading 01. Foliage. fowls of the species Gallus domestics. dried. geese. bleached. impregnated or otherwise prepared. that is to say. ornamental birds. fresh. chilled or frozen. These are contained in the underlying regulations. Live poultry. Fertilisers
Ministerial resolution number (476) of the year 2007 Concerning by-law of AGCC fertilizers and agricultural soil conditioners law
For reasons of space. wild. of the poultry of heading 01. ornamental birds. branches and other parts of plants. Live poultry. being goods of a kind suitable for bouquets or for ornamental purposes fresh. dyed. chilled or frozen.
. turkeys and guinea fowls. dyed. 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. fresh. impregnated or otherwise prepared. Ornamental shrubs Cut flowers and flower buds of a kind suitable for bouquets or for ornamental purposes.(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. that is to say. their products and their offal from the Republic of Nigeria. geese. dyed.fresh. and grasses. Ornamental shrubs Cut flowers and flower buds of a kind suitable for bouquets or for ornamental purposes. LIVE ANIMALS
Ministerial Decree No. mosses and lichens. mosses and lichens.05. bleached.05. impregnated or otherwise prepared. whether or not agglomerated. Peat (including peat litter). turkeys and guinea fowls.(44) of the year 2006 on ban importation of all kinds of living tamed.
2703 31 a ADP: C: CB: FEA: M: MAF: ME: MEP: MF: MH: MI: MIC: MJ:
Birds Meat and edible offal.Trade Policy Review Page 42
Birds Meat and edible offal. bleached. ducks. being goods of a kind suitable for bouquets or for ornamental purposes fresh.(90) of the year 2006 on ban importation of all kinds of living tamed. impregnated or otherwise prepared. branches and other parts of plants. without flower or flower buds. not all HS Codes are reproduced. wild. dried. bleached. dried. without flower or flower buds. dried. dyed.
The Government's priority is to align national standards on international norms.. and some 15% are UAE standards. G/SCM/N/1/ARE/1. The law also sets out provisions on the issuance of standards.
.uae. security. Adoption. implementing regulations have yet to be finalized. and metrology. and G/SG/N/1/ARE/1. inter alia. standards.19 ESMA is a financially and administratively independent Authority. the UAE has adopted the Federal Decree No (7) of 2005 regarding approval and implementation of the Unified GCC Law on anti-dumping. of Codex Alimentarius. 26 March 1997. moral. The UAE has largely harmonized its policies and regulations on standardization and technical regulations with other GCC Members. ESMA is the WTO national enquiry point. and (through ENAS (see below)) of the International Laboratory Accreditation Cooperation (ILAC). IEC System of Conformity Assessment Schemes for Electrotechnical Equipment and Components (IECEE).2). See ESMA online information. 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 last one dates to July 2006. inter alia. It has no national laws and/or regulations on contingency trade remedies.17 Nonetheless. with revenues increasingly from.ae/ esma/. 38. GCC standards are based on international standards. The UAE has not taken any anti-dumping. About 12% of the 3985 standards in force in the UAE are
WTO document G/LIC/N/3/ARE/1. (a) Standards. and certification
37. It has accepted the WTO Code of Good Practice for the Preparation. and quality marks. certain goods require prior authorization for. sales of standards. and is one of the federal bodies that recommend technical regulations to UAE Cabinet (the latter can also be set at emirate level). implementation of conformity assessment programmes including accreditation. the UAE notified the Committee on Import Licensing Procedures that there are no import licensing requirements in the UAE. safety and environmental protection by ensuring that imported or domestically produced goods meet the UAE technical regulations. 25 April 2000. technical regulations. countervailing or safeguard actions since becoming a Member of the WTO in 1996. ESMA is the sole body responsible for setting standards in the UAE. ESMA is managed by a Board of Directors chaired by the Minister of Economy. According to WTO data there were 23 notifications. accreditation. ESMA has 3985 standards in place till end of 2008. of which 85% are based on GCC standards as set by the Gulf Standards Organization (GSO). In April 2000. (vi) Contingency trade remedies
35. Available at: http://www. and safety control purposes (Table AIII. Its aim is health.United Arab Emirates Page 43
34. ESMA departments deal with conformity assessment. 26 March 1997. and Application of Standards. In general. ESMA is a member of the International Organization for Standardization (ISO). The Emirates Authority for Standardization and Metrology (ESMA) was established by law in 2001 as a governmental body. countervailing measures and safeguards. 27 March 1997. 19 Federal Law No. WTO documents G/ADP/N/1/ARE/1.gov. and conformity assessment. 28 of 2001. health. religious. Companies may be granted an import permit upon application to the relevant ministry or entity. testing. 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. (vii) Standards and other technical requirements
. the Ministry of Agriculture. UAE standards in general are subject to updating and revision to ensure it serves UAE needs and that they are harmonized with international standards. The conformity assessment procedure on passenger vehicles and tyres consists of selfdeclaration to the GSO by producers or suppliers for approval.ae/enas. makes a decision on the level of conformity.2). although current plans are to merge all accreditation unites and departments in GCC countries in one regional accreditation body that serves the GCC region.uae. and certification and inspection bodies. exports. Imports of other products may require certificates.gov. In addition. Available at: http://www. For each regulated product. the Ministry of Energy. The Emirates National Accreditation System (ENAS) was established in 2004 to accredit conformity assessment bodies including testing and calibration laboratories. A voluntary program under the authority of ESMA applies to all products that meet ECAS requirements. Since 1995. including technical regulations. the applicant must submit a similar registration application as the one mentioned above ESMA reviews the submitted information. 39. or market surveillance under such bodies as the Ministry of Health. ESMA implements two main conformity assessment schemes. Applicants must submit a registration application. are published in the Official Gazette. environment or technological problems. (b) Sanitary and phytosanitary measures
42. 22 G/SPS/N/ARE/3. Nevertheless. 2/114 of 2004. The latter scheme operates two programs. and certification and inspection bodies. The quality mark program (a voluntary programme applying to any product according to UAE standards) and the Emirates Conformity Assessment Scheme (ECAS). they are also available online through ESMA website. supported by a declaration of conformity to the applicable standards as well as by a test report issued by one of the accredited laboratories. All notifications were made in 2004 and 2006 (Table II. 41. One of the 2004 notifications concerned general legislation on animal welfare to be adopted by the UAE. 29 July 2004. or based on international standards. Both ENAS and DAC are members of ILAC. the Dubai Municipality's Accreditation Department (DAC) accredits conformity assessment bodies testing and calibration laboratories. and domestic production of plants.ae/uaeagricent/. Most UAE standards and GCC standards are either identical to international standards. Available at: http://www. no specific trade concerns
Ministerial Decision No. suppliers may declare compliance to internationally accepted standards20. 40. ENAS online information. self-declaration is accepted.22 Recent notifications relate mostly to import bans on birds and their products because of bird flu. The UAE has not concluded any mutual recognition agreements.21 ENAS is under the authority of ESMA. except the cases where international standards are not suitable for the country due to issues related to climate. and issues a certificate of conformity. All standards. See UAE Agriculture Information Centre online information. or emirate governments. In the absence of national standards on any type of products. The WTO national enquiry point for SPS measures is the Ministry of Agriculture and Fisheries (MOEW)which is also the national notification authority. and their products.Trade Policy Review Page 44
compulsory (technical regulations). animals. The mandatory program applies to the following regulated products: cigarettes and closed type electric water storage heaters for household use. The UAE has made a total of 23SPS notifications since becoming a Member of the WTO. The (MOEW)is in charge of inspection of all imports. inspection.
4 of 1983 on the pharmaceutical profession and institutions. and additives. An explanation of the reasons for such measures may be requested and should be provided by the Member maintaining the measure. Under Federal Law No. 9 June 2004. dioxin. animal feeds. There is currently one compulsory labelling legislation (technical standards) for food and two other voluntary standards for. and 65 of Federal Law No. 27 GCC Technical Regulation No. in cooperation with municipalities.United Arab Emirates Page 45
have been raised concerning SPS measures maintained by the UAE. All SPS regulations are federal. For slaughtered animals. as amended in 1992.25 In addition.uae. the International Plant Protection Convention (IPPC).28
23 Under the WTO Agreement on Sanitary and Phytosanitary Measures. G/SPS/GEN/49/Rev. all imports of plants and plant products are subject to an agricultural quarantine system.23 The UAE is a member of the World Organization for Animal Health (OIE). Members have the possibility to raise concerns regarding SPS measures maintained by other Members. 47.buyusainfo. The Ministry of Health also regulates certain imports of food (Table AIII. 28 Further information available at: http://www. ESMA has updated its packaging and product labelling standards in accordance with o GSO norms and international standards.doc. 6 of 1979. Available at: http://www.gov.uae.stm. Phytosanitary certificates do not appear to be required to attest absence of radiation. concerning veterinary quarantine. net content weight in metric units. a certificate from an Arab country's embassy in the exporting country (if available) should attest that they were slaughtered according to Islamic law. its origin. Arabic labelling is required and can be applied by sticker. or cyclamate. labelling. Imports of certain food products (e. 41. their products or offal require: an official veterinary health certificate issued by the exporting country. is in charge of authorizing imports of animals and their products. ship or carrier attesting that they have not been in contact with any infected animals of contagious or epidemical diseases.pdf.gov.27 All fats and oils used as ingredients must be specifically identified on the label. Food labels must contain product and brand names.2). production and expiry dates. 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.net/docs/x_3675466. in accordance with Articles 40. and describing the distinctive marks of the consignment. 26 Federal Law No.ae/uaeagricent/RULES_REGULATIONS/law/ Federal5_e. and the list of ingredients and additives in descending order of proportion. and packaging
46. lot identification. 61. 45. Imports of drugs and medicines must be registered with the Technical Affairs Section of the Drug Control Department at the Ministry of Health. evidence that it has been checked directly before shipment and found free of epidemic and contagious diseases.g. and duly attested by an Arab country's embassy. and Codex Alimentarius. 44.24 43. labelling of chemicals and other industrial products. The Department of Veterinary Quarantine at the MOEW. or passed through infected areas during their journey.
.26 All consignments of animals. canned food) are exempt from phytosanitary certificates.ae/uaeagricent/RULES_REGULATIONS/federal_rules_e.6. 5 of 1979 (Plant Quarantine Law of GCC countries). 24 WTO document. country of origin. name of the manufacturer. 9 of 1995. (c) Marking. and a report by the captain of the plane. 25 This law is available online at: http://www.
In 2008 federal procurements amounted to Dh 231 million (US$[63 million ]). (24) of 1999 specifies that "No public or private party or qualified or unqualified persons are allowed to import or bring. There are currently no provisions on the use. This Decision does not apply to purchases by the Ministry of Defence or those related to the State Security System.30 The UAE is neither a member of nor an observer to the WTO Plurilateral Agreement on Government Procurement. the Environmental and Protected Areas Authority. 52. or to purchases for any "projects" handled by the Permanent Project Committee. production. Despite provisions favouring local suppliers. established in 1996. and Appendices I. particularly for major projects for which local expertise is not available. established in 1999. the Vienna Convention and Montreal Protocol on Control of Substances Depleting the Ozone layer). there is a strong reliance on foreign companies. established in 1998. 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 . No taxes are levied for environmental purposes. reflecting a reduced amount excluding procurements of the ministry of education since it was transferred to the local government of Abu Dhabi.4% of the UAE's GDP in 2004.
Federal Environmental Law No. and the Environmental Protection and Industrial Development Commission (in Ra's al-Khaimah). National accounts data show that consolidated government expenditures on goods and services amounted to Dh 24. or in accordance with international conventions on. MOEW took over all previous mandates of the Federal Environmental Agency .
. The regulation on federal government procurement is Ministerial Decision No. U. the Environment Agency in Abu Dhabi (formerly the Environmental Research and Wildlife Development Agency . as they do not include purchases in the context of development projects. 20 of 2000 on the administration contracts system. or procurement by state-owned companies.S. the Basel Convention on the Transboundary Movements of Hazardous Wastes and their Disposal. International Trade Administration (2004).6 billion). there are no marking or labelling requirements for products containing GMOs. According to certain business sources. 7 of 2009. and has also established the following three institutions with the primary purpose of protecting the environment29 .3 billion (US$6. Accordingly. Hazardous Wastes and Medical Wastes. the Stockholm Convention on Persistent Organic Polluants (POPs). or 6. 50. except for issues related to the international conventions mentioned above. and in accordance with Federal law number.Trade Policy Review Page 46
48. these figures understate the importance of public procurement. The handling of hazardous chemicals and waste in the UAE falls under the Regulation on Handling of Hazardous Substances. However. inter alia.ERWDA). bury or dispose of hazardous wastes in any form in the UAE". (Since 10 September 2009. (viii) Government procurement
51. or to any project excluded from the ambit of the regulation by a resolution or law passed by the Council of Ministers. Total federal expenditure under the Decision reached Dh 527 million (US$143 million) in 2004. 24 of 1999. the Rotterdam Convention on Prior Informed Consent (PIC) concerning chemicals. Federal Law No. The UAE Ministry of Environment and Water was established in 2006. (d) Environmental-related trade measures
49.) Their activities do not have a direct impact on trade. internal or external trade of genetically modified organisms (GMOs). in Sharjah. The UAE prohibits the import of certain products for environmental or health reasons. provisions of the procurement regime may vary from contract to contract.
In order to have access to the electronic system. such as the absence of competitive markets (e. 20 of 2000 also requires purchases of products. and Dh 10 million were spent through direct order. this is also the case of purchases (e. 56. second to buy the bid then present its proposal and third to get the result of the transaction.ae and egov.gov. and the deadline for submission of tenders. Specifications and conditions of the
U. and twice in two widely disseminated newspapers.g. The notice includes a description of goods and services to be procured. a committee requests quotations from selected contractors without any tendering process. According to MF data. the authority receiving tenders. Both companies working in the state as well as those working outside the state would benefit from the e-procurement system. monopoly). The Decision no. Department of State (2005). A procurement notice is usually published for one month at MF or the relevant ministry. Under the limited tender method.gov. bids are requested from a list of pre-approved suppliers.ae (Arabic only).uae. Procurements undertaken by the Ministry of Education have been transferred directly to the Emirate of Abu Dhabi as this ministry conducts significant procurement. the foreign company is invited to open a branch and employ a service agent (Chapter II(5)).uae. The bidder must be a GCC citizen or a company with maximum foreign equity of 49%. bids are advertised publicly. only Dh 12 million (2. Certain tenders are exempt from this condition and open to foreign companies and establishments. The Ministry of Finance will no longer be involved in central procurements of other federal ministries.32 Publication may also be in foreign newspapers or other available media. tenders are usually open to foreign suppliers with whom the authorities have worked on past projects. 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. Such a system also substantially satisfies the suppliers since it saves his effort in coming to the ministry first to register. electronically (since 2001). or "direct order"..S. the period of validity of tenders. 55. over 80% of the total value of purchases by MF follows the general tender method. suppliers must register with the MF and pay Dh 1.31 In the future. Under the practical participation method.3%) of federal purchases were carried out using the limited tender method in 2004.000 the first year and Dh 500 for renewal.
. According to business sources. "practical participation". 53. tenders may be opened on a national treatment basis to foreign-owned bidders established in free zones. Online information available at: www. With the same overall aim the State Audit Institution (SAI). or in certain cases. "limited tender". In these cases. exercises a posteriori control of transactions. Under the general tender. 54. The direct order method is to be used in exceptional circumstances.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. essentially when these are the only available suppliers. The. The Ministries of Health and of the Interior handle their own procurement under the Decision. an independent from the executive institution. 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. 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. used when only a limited number of suppliers is available. A notice regarding planned procurement is published at the beginning of each fiscal year.g. highways) by the Ministry of Public Works and Housing. 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.
Project name Abu Dhabi Shipbuilding Activity Construction of shipyard for building. Offset arrangements tend to negatively affect competition and increase the cost of goods and services procured.Trade Policy Review Page 48
procurement must be in Arabic but. generally of 10% of the bid value. and medical services. leasing and financial services. to finalize the contract (Article 50).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. A Tenders Committee is constituted by the MF to assess the tenders and select the "best and lowest" bid. because the qualification and selection of suppliers are not based solely on optimizing quality and cost. All defence purchases are centralized at federal level under the Ministry of Defence.ae
. The UOG carries out its purchases through direct negotiation with contractors and on a countertrade or offset basis. The UOG could also require offsets on other than military public purchases. if necessary. 60. but are biased by conditions relating to the associated joint-venture projects. There is no standard system for suppliers to challenge the award of a contract. under the UAE Offsets Group (UOG)33. over a specified period (generally seven years). repairing. language centres. all purchases by the UAE armed forces or elements thereof are subject to the offset obligation. including advertising.4 Projects implemented by the UAE Offsets Group. Under the programme. Majority government-owned companies are exempted from the two bonding obligations. they may be translated into one or more foreign languages. An investment agreement is reached on an "offset programme" with each foreign defence supplier. Offset projects cover the full spectrum of economic activities. Available at: http://www. Specifically. 59. Oman & Emirates Invest.4) with a combined paidup capital in excess of Dh 5 billion (US$1.offset. It acts as a conduit between international contractors and the local private sector. the ultimate objective is the diversification and development of the UAE economy. A "bid bond" (of 5% of the bid value) with a UAE bank is required as an initial guarantee (Article 32 of the Decision). 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). The selected company must provide a performance bond. all contracts of US$10 million or more are subject to an "offset programme". Holding General Investments
UOG online information. Under the programme. the foreign company undertakes to "fulfil its offset obligation" equivalent to 60% of the value of the original contract. maintaining. fish farming. although this is not the case presently.
Table III. To date. the UOG has implemented over 25 joint ventures (Table III. 58. 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. In general. claims related to the tendering process can be submitted to a committee formed within the MF. 57. The UOG measures the output of an offset project through its profits. According to the authorities.
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. French Fighter Invest & Coop.400 Emirates Printing Forms Est 247 founders Al Hamed Enterprises
Owning. The Dubai Government also requires a foreign company to employ a service agent. including the preparation of tender documents.United Arab Emirates Page 49
Activity bulk traders Treatment of infectious medical waste generated from hospitals.Abu Dhabi GAM-AERO Gulf Business Center
Condor Medical Waste Mgt General Investments FZE GAMCO United Technical Services
Aerospatiale (now EADS) Dassault. Programme Lockheed Martin GEC-Marconi GEC-Marconi (now BAe Systems). and performance bond requirements. health and dental clinics. French Fighter Invest & Coop. Astrium Dassault.com is used to advertise public purchases of information technology
In the emirate of Dubai. issuing the tender. Dubai Law No. 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. and leasing assets and properties Technology transfer centre Chemical production Inspection services for bulk storage tanks Manufacture of fire extinguishing products and equipment
Dassault. managing. selling. 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. 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
Condor Medical Waste Management . Programme Macquarie.
. French Fighter Invest & Coop. Tejari. 6 of 1997 contains provisions regulating contracts between Dubai Government departments and companies entering into a contract. Certain governmental purchases can be handled electronically (since 2000). bid bond requirements. Programme Thales British Aeropace Systems Westinghouse (bought by Northrop Grumman) Specialist Mechanical Engineers General Electric Dassault. French Fighter Invest & Coop.
Available at: http://feaapp. However.36 WTO rules do not apply in any way to sovereign decisions to limit the exploitation of natural resources including oil. For example. Permits are also required to export animals and animal products. the Treaty on Nuclear Non-Proliferation) to which it is a signatory. the Convention on Chemical Weapons. psychotropic substances. and environmental reasons. The authorities indicate that no agreements have ever been concluded with foreign governments or foreign firms to restrict exports to the UAE. which has not been notified under the WTO Agreement on Trade-Related Investment Measures. Furthermore.
. the UAE government enacted a stringent export control law that includes stiff penalties for parties involved in the diversion of controlled
35 British Embassy. as well as conventional weapons. It restricts in particular exports of dual-use goods that might be used in weapons of mass destruction programs. (3) (i) MEASURES DIRECTLY AFFECTING EXPORTS Registration and documentation
65. security. the UAE Offsets Group runs a large offset programme (see above). The UAE maintains export controls (through permits) on certain products for safety. 36 See also Federal Environmental Agency online information. In addition. shippers are required to provide Customs with an original invoice and a completed export declaration. (iii) Export duties and taxes Since 2003.Trade Policy Review Page 50
62. It has never taken any measures for balance-of-payment purposes. The UAE does not maintain any compulsory reserve stocks. the majority of procurement (by value) is at emirate level. The Secretariat has not received any information suggesting the presence of measures requiring the use of local products. and precursors. The Secretariat has not been informed of any countertrade arrangements involving the governments of the UAE. as could the general requirement for a foreign branch to employ a local agent. the Basel Convention.g.uk/ukti/ShowDoc/BEA+Repository/345/370160. Export prohibitions and restrictions
67. Commercial Section. as well as narcotic drugs. given the importance of the public sector. In August 2007.fea. Abu Dhabi.35 (ix) Local-content requirements
63. To export goods of UAE origin. (ii) 66. The UAE tightened export control laws and enforcement to prevent the movement of illicit goods and materials across its borders. the Ministry of Health reportedly accounts for 70% of demand for pharmaceuticals and hospital equipment. an export tax on steel scrap has been levied at the rate of Dh 250 per ton. (x) Other measures
64.gov. including state-owned companies.gov. CITES. 68. public purchases are particularly large in relation to total expenditure. in Abu Dhabi. Given the decentralised nature of the UAE.ae.uktradeinvest. "Background notes on Abu Dhabi". the exclusive distribution system with the obligation to employ a UAE agent could be linked to a local employment scheme.gaz and other natural resources. Available at: http://www. and to ensure compliance with international obligations under treaties and conventions (e.
EDC role is to provide exporters with the services required to enter or expand foreign markets including trade information. In April 2009. In addition.net/financialservices.emiratesindustrialbank. The committee includes representatives from across the UAE government. DEDC offers many services most notably Trade Credit Insurance is also known as Accounts/Trade Receivables Insurance. up to imprisonment for one year and/or fines totaling over US$270. In September 2008. does the following: a) b) c) d) e) f) g) h) i) j) k) Authorizes government bodies to restrict or ban the import. Specifies penalties. natural resources. reporting directly to the Council of the Ministry of Foreign Affairs.
69. the project should have an industrial licence issued by the Ministry of Finance and Industry. addressing commodities subject to import and export control procedures. Law No. the project should have a minimum of 51% UAE or GCC ownership and should be located in the UAE. Establishes a national committee with clear oversight and management responsibility for UAE export control procedures. 51% owned by the Federal Government. which reports to the President of the UAE. financial. provides financing "at reasonable terms" for the industrial sector. or the environment. 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. 71. and dual-use items without a special license. export or re-export of goods deemed a threat to the UAE’s national security.United Arab Emirates Page 51
shipments. the Emirate Industrial Bank. the UAE cabinet formed the UAE Committee on Commodities Subject to Import and Export Control. branding advice. Bans the export or re-export of strategic goods. the UAE amended the export control law to toughen its implementation.000. legal and foreign trade representation and access to potential buyers. and assistance
70. According to the authorities.htm.40 To be eligible. 2006 established Dubai Export Development Cooperation (EDC) as an autonomous organization funded by the Government of Dubai. chemical and biological materials. 18 April 2000. 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. 40 See Emirates Industrial Bank online information for a summary of available financing: http://www. with a mission of promoting Dubai’s industrial.38 At federal level. the creation of a federal body for export promotion is currently envisaged. 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. 39 Central Bank of the United Arab Emirates (2003). public health and safety. This committee has the ability to categorize goods and technologies as strategic and controlled. The changes37 (iv) Export subsidies. including arms and military hardware. insurance.
. 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. finance. Export promotion is the responsibility of each emirate. Federal Law Number 13 of 2007. 10/2006 dated May 1.39 This includes export credits and equity financing. foreign policy. if they can be used for military purposes or in conventional weapons or weapons of mass destruction. Dubai Sub-contracting and Partnership Exchange (Dubai-SPX) is a program that serves as technical information sharing and a match making hub. with the aim of harmonizing all promotional activities within the UAE territory.
A number of the national factories which are located in the Jebel Ali Free Zone are registered with the Ministry of Economy . 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. The UAE's first free zone was established by decree at Jebel Ali in 1980.g. A "national industrial licence" is reserved for manufacturing companies with at least 51% GCC ownership. areas of specialization (e. and the growth of re-exports and transhipment as a major commercial activity led all the emirates. a "general trading licence" allows the holder to import. Operators register with the customs authority of the emirate in which the free zone is located. Another regulatory specificity of the free zones. employment generation. low import duties except on tobacco and spirits. National treatment apply to factories located in the Jabel Ali Free Zone. the free-zone regimes allow 100% foreign ownership of companies.uaefreezones. is the absence of restrictions on hiring foreign employees. It has since expanded from 10 hectares to over 300. distribute. Therefore. An "industrial licence" allows the holder to import raw materials. which regulates a part of the domestic trade in the Customs territory does not apply. Emiratization programs are being progressively applied to counter the problem of unemployment of nationals.41 (v) Free zones
72. which could become significant for companies' productivity (depending on future policy trends). At the Jebel Ali Free Zone. no exchange restrictions). a "trading licence" gives the same rights. The Department of Economic Development in Abu-Dhabi has dedicated a specific department for the purposes of export development called Foreign Trade & Export Support. freedom to repatriate capital and profits. it allows duty-free sales inside the UAE customs territory. and hence a full control over their activities. and significant economic development. Comparative advantages in each zone are based on individual locations. Products may be brought into free zones and duty-free shops. facilities. However. Its success in attracting foreign investment and technological expertise. manufacture specified products. and foreign employment has been the source of economic growth (Chapter I(1)). and exported outside the country or to other free zones and duty-free
Source Department Of Economic Development –Abu_Dahbi . and mortgaged. motor vehicles). except Abu Dhabi. 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.
. 75. Aside from the advantages already available to companies in the UAE Customs territory (no corporate or personal taxes. Organizational Structure of DEDInformation on all the UAE free zones is available online at: http://www. Their capital is more than 51% owned by nationals. A "service licence" allows the holder to carry out the services specified in the licence within the zone.42 73. However. They have industrial production license . to create such free zones to attract inward investment. but for specified items only. premises may be owned on leased land.com/. export. The relevant customs authority delivers import and export permits. Various types of licences allow operators to practice specified activities in free zones. Within the free zones. and establishment and operating costs. and export the finished products. and store any items in accordance with the zone's rules and regulations. Another advantage of operating in a free zone is that the Trade Agencies Law (section (2)(i)) above). There are currently few barriers to the recruitment of foreign labour in the UAE. The type of services supplied must be the same as the services supplied by the parent company.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. 74.
78. Imports from free zones and duty-free shops into the customs territory are liable to all the normal customs duties and taxes (except.000 businesses from over 110 countries are operating at Jafza as of 2008: 76% are involved in trading. The Emirate Industrial Bank provides financing "at reasonable terms" to the industrial sector (section (3)(iv) above)46. Jebel Ali Free Zone Authority (Jafza) manages one of the world's largest and fastest growing exportprocessing zones. 44 Further information is available online at: www. 76. warehousing. and 4% in services. goods originating in an economically boycotted country. with investments of about US$4 billion. and is a leading global trade and trans-shipment centre.1 of the Agreement. the GCC-owned companies that meet the 40% rule of origin criterion). 1 of 1979 Organizing Industrial Affairs will be repealed soon and replaced by a forthcoming industrial regulation law.jafza. (4) (i) MEASURES AFFECTING PRODUCTION AND TRADE Incentives
77. the Government of Dubai. excluding authorized fuels necessary for operations. some support is provided to agriculture (Chapter IV(2)). or that operates directly to increase exports from or reduce imports into its territory within the meaning of Article XVI:1 of GATT 1994. 12 free zones are under development. 20% in manufacturing. Jafza is a commercial organization but is financially supported by its only shareholder. In the context of its annual notification obligations under the WTO Agreement on Subsidies and Countervailing Measures. Jebel Ali Free Zone will be the only one in the region with an airport and a port on site. radioactive materials. and distribution.44 The zone is built around Dubai's Jebel Ali Port which is one of the world's largest ports (Chapter IV(5)). Several free zones are dedicated to specific services subsectors. goods infringing laws on intellectual property rights protection. including Dubai Internet City. all kinds of narcotic drugs and derivatives. Dubai Health Care City (Box IV.1). Upon completion of the Jebel Ali Airport. 1 of 1979 (Box III. and Dubai has announced the launch of several additional free zones. to which it submits quarterly performance reports. ranging from duty-free imports to the supply of utilities at low prices. the Government of the UAE does not grant or maintain within its territory any subsidy. In addition. Federal Law No. within the meaning of Article 1.ae. All exports from free zones are accounted for through export declaration. the project of which is currently under final review. A number of investment incentives are available under Federal Law No. Over 6.United Arab Emirates Page 53
shops. ammunition and explosives of any kind. that is specific (within the meaning of Article 2 of the Agreement). Other important incentives is provided through program that support small and medium enterprises. In 2009. 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). 79. as mentioned above.43 Goods can remain indefinitely in free zones. without being subject to customs duties. However. 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. expected in 2010. 46 Central Bank of the United Arab Emirates (2003). arms. and Knowledge Village.45 According to this notification. and goods prohibited from entering the country.928 April 2009.
. the UAE submitted its most recent "new and full" notification in April 2009. This law will ensure compliance with international obligations.1/Rev. except those licensed by the competent authorities. Khalifa Fund was established with full financial and administrative
The following goods may not enter free zones and duty-free shops: flammable goods. Dubai Media City.1). 45 WTO document G/SCM/N/40/Add. there were 26 free zones in operation in the UAE.
customs-free imports of: (a) machinery. in the government development plan.
State-owned enterprises. In October 1996. Source: Federal Law No. 1 of 1979 Organizing Industrial Affairs. supply of electricity and water at incentive rates. exemption of locally made products – when exported – from export duties and taxes. 14 October 1996. Abu Dhabi National Oil Company (ADNOC).1: Provisions of Federal Law No. and Al Ain cement plant. projects established in areas determined by the Government. rent on the necessary industrial buildings at optimal conditions. for this reason. in the industrial areas established by the Government. spare parts and building materials required for project. equipment.
Article 21 Priority for the privileges and exemptions mentioned in Article 20 is given for: competitive. (b) raw and intermediate materials.2002 named Mohammed Bin Rashid Establishment for Young Business Leaders t launched on June 12. export-oriented or export-substitution projects.
The law applies to most industrial projects except extraction or refining of petroleum or other raw materials. packing and wrapping materials used at production level. taking into consideration their kind. and privatization
80. the following privileges and exemptions: assignment of a building-site for the project. and any other projects that may be of specific economic importance.48 Quite a few state-owned companies appear to be engaged in international trade. semi-products. In Dubai a similar programme was established on June 12. and protective measures for local products. 2002 . Sharjah Oil Refining Company. subsidies to exports. 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. and the authorities in the Emirates.
Box III. the UAE notified the WTO that it does not maintain any state-trading enterprises within the meaning of Article XVII of the GATT. may grant projects that meet certain conditions.Trade Policy Review Page 54
independence to support small and medium enterprises in Abu-Dhabi. such as in the hydrocarbon subsector. state trading. quality and quantity. either free or at a reduced price or a symbolic rent with optimal conditions. and included. 1 of 1979 Organizing Industrial Affairs Article 20 The Cabinet. Dubai Petroleum Company. Dubai Aluminium Company. 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. for a renewable period of five years starting from the date when production becomes effective.
. projects using local raw materials.
Source: Emirates Business 24-7 : RAK helps SMEs explore untapped areas WTO document G/STR/N/1/ARE. Wholly or partially government-owned companies that engage in trade include: Etisalat. Emirates National Oil Company.
Dubai Holding and Borse Dubai): The Investment Cooperation of Dubai (ICD) was established in the emirate of Dubai of the United Arab Emirates . Ssgain and Way50. the Emirates Investment Authority (EIA) is the first federal sovereign wealth fund for all seven states comprising the United Arab Emirates (Abu Dhabi. Other sovereign wealth arms of ADIA include: Flamingo. particularly in finance. South Korea. It also currently invests in private equity. One of its significant real estate investments is Sturegallerian AB. LLC. petrochemical plants.United Arab Emirates Page 55
81. 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. ADIC is a Joint Stock Company that specializes in providing investment and corporate finance in addition to advisory services. An additional investment arm of ADIA is Tannadice Investments LLC which owns 25% stake in Chicago Parking Meters. many productive state-owned companies have grown large enough to compete on world markets. pipelines. Tamweelview European Holdings SA which is the European Real Estate investment arm of ADIA. Dubai developed
Source: Khaleej Times: UAE Tops the Region in Mergers
Source: Sovereign Wealth Fund Institute. A Portion of companies engaged in productive activities are owned or controlled by the emirates or by the Federal Government. It is based in Abu Dhabi. Sharjah and Umm al-Quwain). real estate hotel. Pakistan. Emirati firms have increasingly made acquisitions abroad. because of their ownership structure these companies benefit from a financial rating allowing them to borrow at low interest rates. In addition. Dubai. Egypt. The IPIC portfolio includes investments in Austria. Gulab. It is much smaller in size than ADIA. In recent years. e) The Investment Cooperation of Dubai (which owns Emaar.Fundaq. the sovereign wealth fund. Established in 1984 it is wholly owned by the Government of the Emirate of Abu Dhabi. Ajman. UAE. Mark 5.swfinstitute. b) The Abu Dhabi Investment Council: The Abu Dhabi Investment Council was splintered off from the Abu Dhabi Investment Authority. United Arab Emirates. Spain. Some of them (e. tourism and the transport sector. Germany. real estate. Manly. 82. In general. www. Ras al-Khaimah. Roic. in electricity and air transport) also benefit from a favourable domestic environment when they are both operators and regulators. is broken into several operating investment companies. Oman. the emirate governments have a laissez-faire approach towered the economy. 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.org
. Japan. with the transfer of the government’s portfolio of investments from The Department of Finance’s Investment Division. 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. and Portugal. It was formed in May 2006. As a result of large public investments.g. 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. Similar to Abu Dhabi’s strategy. Established in November 2007 by Emiri decree. Indent. Merlion. generally in partnership with foreign enterprises that bring their technologies. Moreover. Investments include downstream hydrocarbon operations. Ganges. power utilities. Fujairah. asset management and infrastructure. and shipping. Monsoon. Jhelum.
Europe and Far East). 84. subsequently the following department were created: Equities and Bonds. Aerospace. In the same year ADIA was appointed co-Chair with IMF of International Working Group of Sovereign Wealth Funds. Economic Zones World.swfinstitute. Bonds moved from Equities Department to Treasury Department. Treasury. The joint venture will combines Mubadala’s regional investment expertise with GE’s global origination excellence.
Source: Sovereign Wealth Fund Institute. Morgan Guarantee Trust and Indosuez). local and Arab investments. In 1967 Abu Dhabi’s “Financial Investments Board” was created under the auspicious of the Department of Finance(Mandate given to UBS. a regional training centre for next-generation business leaders was also established. In 1987 the Equities and Bonds departments became regional (North America. Mubadala also committed $500 million to an investment fund managed by Carlyle . The deal represents a 10% liquidity discount to the parties’ agreed-upon $20 billion firm valuation. 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. In 2008 ADIA participated in the development of policy principles for international investments with the U. A history of how the company was established will clarify its international portfolio of acquisition s. Real Estate & Hospitality . In 2005 ADIA dedicated allocation to small caps within equities. In 1993 ADIA started formal asset allocation process with a set of benchmarks and guidelines. Real Estate. In 1998 it started investing in inflation-indexed bonds. In 2007 ADIA purchased a 4. in addition in 2009 Mubadala signed an agreement with General Electric to establish a commercial finance joint venture. in the United Arab Emirates. 83. Services Ventures. In 2009 the department of Investment Services Department was created .Infrastructure. then it became a Founding member of the International Forum of Sovereign Wealth Funds (IFSWF) . One of Mubadala’s goals is to implement a long-term economic diversification strategy aimed at creating a modern. In 1976 the government of Abu-Dhabi decided to separate ADIA from the Government of Abu Dhabi as an independent organization.Trade Policy Review Page 56
plans to diversify their reliance on oil exports through creating sovereign wealth vehicles. Robert Fleming. DP World. Information & Communication Technology. Mubadala’s sole shareholder is the Government of the Emirate of Abu Dhabi. and investment-grade credit within fixed income. In 2007 Mubadala Development Company announced an agreement in which it will acquire a 7. In 1986 it Started investing in alternative strategies. Department of the Treasury.S. One of its goals is to help better manage Dubai’s state-owned enterprises. dynamic.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. www. f) Dubai World ( Dubai World owns Nakheel .35 billion in cash. productive economy.org Source: Bloomberg: Citigroup to Raise $7_5 Billion From Abu Dhabi State
. Mubadala comprises 9 separate business units with their own specialist areas of focus: Energy. Finance and Administration. 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. In the finance sector Abu-Dhabi Investment Authority have made one of the most extravagant international acquisition. The minority investment includes no associated voting rights and is subject to value-related protective rights. In 1989 ADIA started investing in private equity. In 2007 ADIA started investing in infrastructure sector and then it moved into new headquarters. Drydocks World. Industry.
(“NASDAQ”) announced a series of transactions that created a global financial marketplace53. 51% shares in Al Fajer ReTakaful . In the Middle East & North Africa it held 62% shares in TAIB Bank. In 2010 the London Exchange Group declared that Borse Dubai Limited has a 20.30% shares in Bank Islam . Ltd and 10. 90% shares of The Braintree Portfolio. In the real estate hotel and tourism sector Nakheel Properties have made significant investments in Kerzner International Ltd. It also made an investments of $375m with Fontainebleau Resorts.41% shares in Oman National Investment Holding Co. 15% shares in Bank Muscat. In New York.89% share in China Enersave Ltd a Chinese based company.10% share in Sun Hung Kai Financial 5% share in Bharat Hotels and A joint venture with Adventity BPO India Pvt.
90.87% share in ICICI Bank Limited India and a 2. 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. Tripoli. Dubai International capital bought a 100% share in Travelodge a UK based company. In Asia they have acquired 6% shares in Vietnam Asset management a 51% in KOP Group a 40% shares in ACR Retakaful Holding. 51% shares in Acacia. St Petersburg. In August. (“Borse Dubai”) and The NASDAQ OMX Group Inc.6 % share in London Stock Exchange Group. 87.. LLC. Nakheel Hotels has majority ownership of the Mandarin Oriental Hotel and the W Hotel Union Square . acquire John Laing Homes. creating one of the world’s leading real estate developers in residential homebuilding. One&Only Palmilla in Los Cabos and a 33 per cent stake in the Metropole Hotel in central London.in addition to Hotel Washington in Washington DC. Also. Such partnership will allow Borse Dubai to leverage the strong financial technology capabilities of OMX. (“NASDAQ OMX”) as a result DFM acquired 100% of NASDAQ Dubai54. 2006. Borse Dubai Limited (“Borse Dubai”) and The NASDAQ Stock Market Inc. and a joint venture with Qater Investment Authority called “Qatar Dubai Investment” and Dubai Group Sigorta A.S.Ş another joint venture in Turkey. It also made an investment in IHI plc. 18% shares in EFG-Hermes.87% in ICICI Bank Limited. 86. 2006 Emmar Properties. 89. On December 2009 . 10% shares in Global Investment House. Dubai Group the investment arm of Dubai Holding made several international acquisitions.050 billion56. In Europe they have acquired 9. PJSC (“DFM”) announced that it has made an offer to NASDAQ Dubai a joint venture between Borse Dubai Ltd.4 per cent of OMX .07% in Marfin Investment Group Holdings SA a Greek based company. The transaction cost US$1. It also acquired a 50 % stake in the Mexican resort. Dubai Financial Market. Emaar objective was to draw advantages from Hamptons core
Source: NASDAQ : Borse Dubai and NASDAQ Source Dubai Financial Market: Dubai Financial Market to Acquire NASDAQ Dubai for US$ 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
.28% shares in Chiranjjeevi Wind Energy.the Nordic and Baltic exchange operator based in Sweden. both companies are incorporated in India. 88. On June 1. Lisbon.United Arab Emirates Page 57
85.4% in Och Ziff Capital Management a US based company. one of the world’s largest real estate companies. Emaar acquired Hamptons International. Dubai Holding A subsidiary of the Investment Corporation of Dubai has acquired 51. Borse Dubai purchased 27. the UK-based premier realtor with over 130 years of real estate expertise. the second largest privately held homebuilder in the U. In North America In North America it acquired 90% The Chicago City Centre Hotel & Sports Club shares . the owner and operator of the five-star Corinthia Hotel brand including hotels in Malta. Budapest and Prague.-the developer and operator of Atlantis Resorts. in exchange for a 50% interest in the company's iconic Fontainebleau Miami Beach resort55.
In the transport sector .C is a Saudi joint stock company managed by Emaar Properties PJSC and a number of high profile investors. service support and product sales.E.E “was founded in Egypt with total investment reaching US$7.C” was established. British Columbia. 91. In the aerospace transportation industry Mubadala Development. 92. the UAE's fourth national carrier. “Emaar Turkey” opened its Istanbul office in June 2006 several projects were lunched most notably the Tuscan Valley and the New Istanbul Development. Mivida and the Cairo Gate. a state-owned firm under the Ministry of State-Owned Enterprises. In September 2006 The Economic City “Emaar. Dubai Ports International announced the acquisition of CSX World Terminals for close to US$1. In February 2009 Mubadala Development Company signed a Heads Agreement that will form a joint venture with Sikorsky Aerospace Services. in the United States of America “Emaar USA “developed Beverally West Residence in Bervelly West LA California57. between Emaar and Bali Tourism Development Corporation (BTDC). in the prestigious community of South Surrey. “Emaar Middle East”. “Emmar Jordan” was established to cater for the needs of the Jordanian market. “Emaar Pakistan” developed two projects Canyon Views in Islamabad and Crescent Bay in Karachi. In May 2007. including in Hong Kong.Trade Policy Review Page 58
competencies in operations. In Turkey. 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 . for developing a US$600 million mixed-use project on Lombok Island project. has signed a deal in 2008 with the Italian aerospace company Finmeccanica to build components for civilian aircraft. including technical and corporate training support. Emmar have expanded internationally by opening the following companies . “Emmar Morocco” developed 5 large projects through strategic partnerships with the Moroccan government and Onapar. In February 2005. Wills Creek.A. the state-owned Asset Management Company in Indonesia . owned by the Dubai Government. On 2007 it developed the Dead Sea Golf and Beach Resort. In Morocco. the most prominent projects are. Dubai International capital acquired a 2% share in DaimlerChrysler AG . 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. DP Worlde has also made an offer in 2007 to buy Auckland International Airport in New Zealand for $3 billion58. comprehensive material support.97 billion in the Egyptian market. RAK Airways is a private joint stock company incorporated in the RAK Free Zone at Jazirat Al Hamra with
Emaar International Emaar International Company Source: Middle East Forum: Sovereign Wealth Funds Investment Vehicles For GCC 59 Mubadala: Mubadala Sign Mult-faceted Aviation Agreement
. Germany. In 2009 “Emaar Lebanon” was founded. “Emaar Syria” entered into a joint venture with IGO. and the Bolivarian Republic of Venezuela. thus gaining a strong presence in Asia for the first time. Dubai Ports International (now DP World). the Dominican Republic. the new formed company was called “Emaar MGF Land Limited”. this was followed by the signing of a joint venture in March 2008. 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.E. On July 4th 2006 Emaar Properties opened a fully fledged company “Emaar China” in Shanghai. made a £3 billion bid in October 2005 for P&O.In 2006 The Emirate of Ras Al Khaimah announced the creation of RAK Airways.in Asia in 2005 Emaar entered the Indian real estate market by creating a joint venture with MGF Developments Limited of India . Marassi.5 billion. the world's sixth-largest port operator.. Emaar. Uptown Cairo. “ Emaar Misr for Development S. China and China. Emaar Indonesia signed a Memorandum of Understanding (MoU) with Perusahaan Pengelola Aset (PPA). and the granting of licenses to service certain GE59. in Syria. as well as in Australia. “Emaar Canada” launched its projects. Al Khobar Lakes and Emaar Residences at Fairmont Makkah. Britain's biggest ports and ferries group.
The UAE initially availed itself of its right under Articles 65.gulfnews. sugar. restriction or distortion of competition within the GCC market. Japan. the date of application of the Agreement. In the context of the review of its IP legislation in 2001. the MOE monitors the prices of 15 goods. chickens. mainly food products. the UAE provided responses to questions posed by Canada. 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. (iv) Intellectual property rights
(a) Overview 82. In principle there are no a priori price controls. and diapers (Cabinet Decision No. coffee. The emirate of Abu Dhabi has also initiated plans for the sale of certain companies in the manufacturing sector (Chapter IV(4)). and medical services. 2 February 2004. 538/1). flour. Some form of rent control are in place in some emirates especially in Dubai and Abu-Dhabi.United Arab Emirates Page 59
an authorized capital of AED 1. in order to contain the negative effects of cartels and other anti-competitive practices. However. 96.61 In order to address these issues the UAE government plans to soon introduce a Competition Law. frozen and canned vegetables. and for a period of five years.5 billion in 2009 the airline has suspended its operations and announced that the airline will re-launch before the end 201060. 95.2 and 65. chicken and bottled water The federal and emirate governments have a role in the price determination or approval of a number of services. meat and meat products. These exclusive rights also constitute a barrier to full GCC integration. tea.63 Subsequently. In principle. and gas prices are set by state-owned companies at the emirate level. Switzerland. The only significant steps towards privatization since WTO Membership in 1996 have been in Abu Dhabi's electricity and gas subsectors (Chapter IV(3)).4 of the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS Agreement) to delay for a period of four years. vermicelli). water. including telecommunications. 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. in consultation with the MF and the chambers of commerce. fish products.com World Bank (2002). beginning in January 1996. and the United States. 62 The products include dry and condensed milk. Gasoline prices are fixed by the Government of the UAE and are the same throughout the country.. The UAE’s next WTO TPR should update or reflect the development of competition in the UAE. cheese. 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. beginning 1 January 2000. cooking oil. Also. and the government discourages such practice. Anti-competitive practices are dealt with on a case-by-case basis by the MOE. 63 WTO document IP/Q/ARE/1. the UAE market should be highly competitive given the low import duties and the absence of non-tariff barriers. rice.
. The UAE does not have competition legislation. rice. However. the date of application of the provision on chemical and pharmaceutical products patents. a lack of competition results from the market-segmenting effects of exclusive agency laws (section (2)(i) above). a number of
Source: www. postal. children's foodstuff and milk . restriction or distortion of competition within the UAE market. In addition.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. (iii) Competition policy and price controls
94. Electricity. 93. pasta (macaroni.
97. or biological processes for the production of plants or animals. since January 2005. since June 2005. since July 2004. the amendment specified the rights of the patent holder in preventing others from using it. inventions dealing with the chemistry of drugs or pharmaceutical compounds. The law enables the patent holder to prevent others from manufacturing. To conform with Article 28 of the TRIPS Agreement. The law was amended in November 2002. amending Federal Law No.Trade Policy Review Page 60
amendments were made.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. selling. Exceptions (from patentability) exist for plant and animal research. to 20 years (nonrenewable) from the date of filling the application. 101. industrial drawings. since September 1996. pertaining to the industrial regulation and protection of patents. and designs (subsequently amended by Federal Law No. the Paris Convention (industrial property).Since the entry into force of the TRIPS Agreement.
. since March 1999. as well as inventions in foodstuffs were excluded from coverage. They are now covered by Article 4 and 70 of the Law No. 37 of 1992 in respect of trademarks. 100. Micro-organisms are patentable. In accordance with Article 63.
WTO document IP/N/1/ARE/C/1. and three laws entered into effect in 2002: Federal Law No. it has opened a register in which patent applications for inventions concerning pharmaceutical and agricultural chemical products can be filed. the Rome Convention. Previously. 44 provides for the protection of a patent granted for any invention that is the result of an innovative idea. the Berne Convention (literary and artistic works). an industrial process or method or to the application of a known industrial process or method. and Federal Law No. 32 of 2006). whether in relation to a new industrial product. For example. 102. offering for sale. with the exception of microbiological processes and products. Federal Law No. using or otherwise keeping for the purpose of selling or using the product. and inventions related to national defence or that would be contrary to public order and morality. including agriculture. (b) Patents
99. since July 2004. or using the method. the term of patent protection was increased from 15 years renewable for five additional years. the WIPO Copyright Treaty (WCT). diagnostic. fishing. therapeutic and surgical methods for the treatment of humans or animals. The UAE is a member of the following treaties: the WIPO Convention.2 of the TRIPS Agreement. 31 of 2006). hunting. The 1992 Patent and Design Law No. The supervisory ministry for IP matters is the Ministry of Economy . in part to ensure conformity with the provisions of the TRIPS Agreement. The 2002 amendment also extended the coverage of the protection of innovations to all fields of technology. 98. 7 of 2002 (issued on 1 July 2002) concerning copyright and neighbouring rights (subsequently amended by Federal Law No. and the WIPO Performances and Phonograms Treaty (WPPT). or for an innovative improvement on a patented invention. since September 1974. covering both product and method of processing. the UAE notified the English version of Federal Law No. and services. 17 of 2002 (issued on 17 November 2002). 7 of 2002 concerning copyrights and neighbouring rights. scientific principles and discoveries. handicrafts. 8 of 2002 (issued on 24 July 2002). 3 March 2004. importing. the PCT (Patent Cooperation Treaty). 31 of 2006.
In particular. The Patent and Designs Law provides for non-exclusive compulsory licensing. The provisions on industrial designs under the Patent and Industrial Design Law also apply to integrated circuits (Articles 43-51). The amendment introduces the exclusive right to exploit. including computer programs and cinematography work.65 The amendment provides more detailed measures to enforce copyright in line with the provisions of the TRIPS Agreement. among others. Industrial designs are protected by the Patent and Design Law (Article 51) and the related 1993 Decree No. The licence should be for the purpose of fulfilling the demands of the local market. goods or services are the properties of the owner of the mark. after the lapse of at least three years after granting the patent. Article 2 of the law considers as trademarks. literary works. The 1992 Trademarks Law No.. 106. (f) Trade marks
108. The provisions on industrial designs under the Patent and Industrial Design Law also apply to integrated circuits (Articles 43-51). Protection is granted for ten years.66 Sound constitutes an element of the trade mark if it accompanies the trade mark. According to the federal authorities. No compulsory licence has so far been granted. through the extension of the works and types of expression covered as well as the nature of the protection. 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. renewable once for five years. products or services. as well as compilations of data. Computer programs are protected by the 1992 Copyrights and Neighboring Rights Law No. A special register is kept by the Ministry of Economy All industrial designs must be registered. There is no provision on parallel imports of patented products and there has been no jurisprudence in the UAE in this regard. Article 1 of the Law defines a sign as a drawing that can be seen and that constitutes one element. (d) Layout-designs (topographies) of integrated circuits
105. The holder is accorded exclusive rights over imports of any product related to the industrial design. the amendment is designed to meet the obligations arising from Article 9 of the TRIPS Agreement (Berne Convention.
. or to indicate that the products. 40 is the main legislation protecting copyright. except Article 6 bis). 40. An applicant must prove that efforts have been made to obtain a licence from the patent owner on reasonable conditions. The 1992 Copyrights and Neighboring Rights Law No. A unified GCC
The 2002 legislation is contained in WTO document IP/N/1/ARE/C/1. (c) Industrial designs
104. (e) Copyright and related rights
107.United Arab Emirates Page 61
103. The law also contains provisions on well-known marks. Protection is for ten years. 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. under the rental right. 3 March 2004. The supervisory ministry for issues related to copyright is the Ministry of Economy. signs that take a particular form if they are used to distinguish goods. or processing of such a product for the purpose of offering it for sale or selling it. 37 is the main legislation protecting trademarks. Articles 1-21. It was amended in 2002. Copyright protection is for 50 years. 11 (Articles 45-49). The 2002 amendment has brought under its scope computer program applications. 31 of 2006 stipulates that the importation of the product is not sufficient ground for granting a compulsory licence. Article 24 of the Law No.
imitation. in accordance with the above-mentioned laws as well as under Customs regulations. (h) Protection of undisclosed information
112. and compensation. Articles 37-42 of the Trademarks Law define penalties with regard to counterfeit. Unlimited fines of at least
. 3 of 1987 specifies imprisonment of up to three years for IPR violation. a trade mark that misleads consumers about the origin of a product cannot be registered. Geographical indications related to alcoholic beverages cannot be registered in the UAE. The Trademark Law does not contain provisions with respect to parallel imports or to national or international exhaustion of rights. According to the authorities. be invoked by the owner of the trade mark to prevent parallel imports. The Ministry of Economy is the supervisory ministry for issues related to trade marks. the proposed modifications are still under consideration by the technical Committee. and the Trademarks Law provide for measures aimed at preventing violation of intellectual property rights.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 Law was expected to be implemented six months after the adoption of its executive regulation. To date. in practice. as a result. the Patent and Design Law. the owner of a trade mark may. 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. 110. no such case has not so far been filed in the UAE. Law No. Under the Trademark Law. In addition. 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. the Trademark Law could. including preventive seizure. According to the authorities. (g) Geographical indications
111. (i) Enforcement
113. geographical indications can be considered as trademarks if they are used to distinguish goods or services with regard to their production. All confidential information submitted to it must be kept confidential. The licence has no effect on third parties unless it has been recorded in the Register and published as prescribed in the Executive Regulations. The Trademarks Law does not contain a definition of geographical indications as such. grant to any person a licence to use the trade mark (Article 30). misleading practices. Punitive Law No. According to the authorities. the 2002 amendment of this law added that the non-use of the trade mark should not be a reason for the deletion. In the UAE. selection or commercialization. 109. if it is due to reasons not related to the ownership of the trade mark. unless the owner justifies the non-use of the trade mark. five years. 114. the GCC Law has been approved by Federal Decree No. Trademarks registration is renewable indefinitely. However. The Copyright Law. removal or destruction of products and equipment. provided the owner has undertaken the necessary steps to keep it confidential. These measures can be taken upon demand of the right holder based on a judicial order. However. as well as elimination of the effects of the illegal acts. the term of protection of undisclosed information in the pharmaceutical subsector is. by a written notarized contract. 2008) the Law has been re-sent to the technical Committee for further discussion on the new proposals made by Oman and Bahrain. Customs is entitled to take measures at the border to prevent any violation of intellectual property rights. pursuant to the decision of the GCC Committee on Commercial Cooperation (Doha. and fraudulent use of registered trademarks. confiscation. However. As regards pharmaceutical products specifically. 52 of 2007.
Imprisonment is for at least three months.000.
. and up to three years under the Punitive Law.000-500.United Arab Emirates Page 63
Dh 5.000 can be levied. The Copyrights Law lays down similar procedures. as well as unlimited prison sentences (up to three years under the Punitive Law). with minimum detention of two months (up to three years under the Punitive Law).000. and fines of Dh 10. Articles 60-62 of the Patent Law also lay down criminal sanctions and monetary penalties in the range of Dh 5.000100.
at high cost.
Agriculture. and certain agriindustries benefit from considerable state assistance. remains state controlled. The manufacturing sector has recently diversified towards more capital-intensive. (1)
TRADE POLICIES BY SECTOR INTRODUCTION
1. 39% in vegetables.
5. cows. Most agricultural activities take place in the emirate of Abu Dhabi. sheep. The sector also produces livestock (goats. and horses) as well as meat and poultry.gov. as well as electricity and water utilities. In parallel. Nonetheless. tourism has been targeted as a major source of future growth in the UAE. In manufacturing. between 15% to 20% in meat & poultry2. exported in large part from the free zones. camels. vegetables. 6. including in terms of water depletion.
The emirate governments have invested large amounts of oil resources over the past 30 years to diversify their economies. The instruments to achieve this aim have included vast amounts of public funds invested in developing port and airport infrastructure. high-technology products. The contribution of agriculture sector to the GDP was US$2. the UAE leadership set as a strategic policy to become a major transport hub between Europe and South-East Asia. The UAE still depends on crude oil and gas exports for a significant share of its national income. with foreign participation generally in the form of minority partnerships or through concessions. Joint-ventures and partnerships with foreign enterprises have allowed manufacturing companies to benefit from the most up-to-date technologies.aspx
. eggs. and milk. these resources were initially invested in state-owned companies operating in oil and gas-intensive industries. 55% in milk and dairy products. substantial
Source: Ministry of Agriculture and Fisheries. green fodder. Farming generally takes place on small units. tourism in the UAE is now among the fastest growing subsectors.moew.000 tonnes. Some have emerged as world leaders in their markets. forestry. Soon after independence. which have modern production and trade infrastructure. Remarkable advances have been made in the agriculture sector. including farming.Trade Policy Review Page 64
IV. and fruit (mainly citrus and mangoes) (Table IV. production of agricultural raw materials remains limited and the agri-industries rely largely on imports for their inputs. and fishing.
4.ae/foodsecurity/foodsecurityar. As a result. the UAE is one of the world's top breeding centres for Arabian horses. and shipping companies and agencies. In addition. several UAE transport companies now also compete effectively on world markets. Source: MOEW.1). The annual production of fish is estimated at 95. whereas the fisheries subsector suffers from the consequences of past over-fishing.
Main features The UAE's main agricultural products include dates. 52% in eggs. airlines. AGRICULTURE AND RELATED ACTIVITIES
2. reflecting the country's comparative advantages.4 billion in 2008it reached 1.1 The UAE is 100% self-sufficient in dates and fish.2% of the workforce3. http://uaeagricent. livestock. such as electronics and machinery.7% and employed about 4. The entire oil and gas sector.
gums.125 10. bulbs. prepared animal fodder Tobacco and manufactured tobacco substitutes Total export Live animals Meat and edible meat offal Fish and crustaceans. molluscs and other aquatic invertebrates Dairy produce. not elsewhere specified or included Live trees and other plants. nuts or other parts of plants Miscellaneous edible preparations Beverages. vegetable products not elsewhere specified or included
2007 -4. seeds and fruit. malt. malt. inulin.763 161 1.1). birds' eggs. roots and the like.355 14 1 34 30 0 2 3 24 3 5 53 3 0 0
2009 -6. straw and fodder Lac.536 20 1 29 160 0 4 2 19 5 0 50 2 0 0
-3. starch or milk. tea.580 86 1.065 548 1. pastrycooks' products Prepsrations of vegetables. animal or vegetable waxes Preparations of meat. mate and spices Cereals Products of the milling industry. wheat gluten Oil seeds and oleaginous fruits. natural honey. peel of citrus fruit or melons Coffee. cut flowers and ornamental foliage Edible vegetables and certain roots and tubers Edible fruit and nuts.005 16 5 442 148 225 228 429 309 517 295 70 194 1.084 248 894 2 44 726 955 659 1. not elsewhere specified or included Products of animal origin. molluscs and other aquatic invertebrates Dairy produce. flour. peel of citrus fruit or melons Coffee.084 9 1 37 21 0 1 2 13 1 3 44 1 2 0
2008 -7.031 7 3 32 61 0 1 1 13 2 0 51 13 0 0
Source: National Bureau of Statistics
.1 Main agricultural products. edible products of animal origin. edible products of animal origin. 2006-2009 (US$ million) 2006 Trade balance of agricultural products Total imports Live animals Meat and edible meat offal Fish and crustaceans. bulbs. industrial or medicinal plants.207 144 972 256 890 3 36 745 1. roots and the like. fruit.393 10. spirits and vinegar Residues and waste from the food industries. birds' eggs. tea. of fish or of crustaceans. resins and other vegetable saps and extracts Vegetable plaiting materials.United Arab Emirates Page 65
processing activities take place in the free zones. not elsewhere specified or included Live trees and other plants. wheat gluten Oil seeds and oleaginous fruits.989 7.967 88 564 19 5 787 163 328 228 370 367 495 327 73 209 1. molluscs or other aquatic invertebrates Sugars and sugar confectionery Cocoa and cocoa preparations Preparations of cereals. mate and spices Cereals Products of the milling industry. resins and other vegetable saps and extracts Vegetable plaiting materials. not elsewhere specified or included Products of animal origin. particularly Dubai's Jebel Ali Free Zone (Chart IV. cut flowers and ornamental foliage Edible vegetables and certain roots and tubers Edible fruit and nuts.860 6. 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. miscellaneous grains. vegetable products not elsewhere specified or included Animal or vegetable fats and oils and their cleavage products. seeds and fruit.1. gums. straw and fodder Lac. inulin.
Table IV. prepared edible fats.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. industrial or medicinal plants. natural honey. miscellaneous grains. starches.
tea. flour.58 8 5. prepared animal fodder Tobacco and manufactured tobacco substitutes Total re-export Live animals Meat and edible meat offal Fish and crustaceans. natural honey. animal or vegetable waxes Preparations of meat.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.s.8 21
. not elsewhere specified or included Live trees and other plants.e. birds' eggs. nuts or other parts of plants Miscellaneous edible preparations Beverages. animal or vegetable waxes Preparations of meat. starch or milk. whole. spirits and vinegar Residues and waste from the food industries. roots and the like. Sheep's milk Cow's milk.2 15 17
758 59 108 38 50 12 507 13 0.9 7. pastrycooks' products Prepsrations of vegetables. total Camel meat Cabbages Cucumbers and gherkins Fruit juice n. straw and fodder Lac. of fish or of crustaceans.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. cut flowers and ornamental foliage Edible vegetables and certain roots and tubers Edible fruit and nuts. prepared animal fodder Tobacco and manufactured tobacco substitutes Production Crops and livestock. prepared edible fats. resins and other vegetable saps and extracts Vegetable plaiting materials. fruit. inulin. not elsewhere specified or included Products of animal origin. spirits and vinegar Residues and waste from the food industries. pastrycooks' products Prepsrations of vegetables. fruit. gums. seeds and fruit. flour. malt. molluscs or other aquatic invertebrates Sugars and sugar confectionery Cocoa and cocoa preparations Preparations of cereals.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. fresh
129 15 317 109 66 64 46 66 26 9 1. industrial or medicinal plants. wheat gluten Oil seeds and oleaginous fruits. starches. bulbs. edible products of animal origin.4 7. miscellaneous grains.55 10 4. starch or milk.Trade Policy Review Page 66
Animal or vegetable fats and oils and their cleavage products. mate and spices Cereals Products of the milling industry. vegetable products not elsewhere specified or included Animal or vegetable fats and oils and their cleavage products. prepared edible fats.0 16 18
12 718 16 15 22 3. molluscs or other aquatic invertebrates Sugars and sugar confectionery Cocoa and cocoa preparations Preparations of cereals. peel of citrus fruit or melons Coffee. of fish or of crustaceans. primary ('000 tonnes) Dates Tomatoes Camel's milk Goat's milk Poultry meat Eggplants Hen's eggs (million egg) Citrus fruit.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. nuts or other parts of plants Miscellaneous edible preparations Beverages. molluscs and other aquatic invertebrates Dairy produce.
UAE. fresh Figs Spinach Cauliflowers and broccoli Lemons and limes Sheep milk. in shell Bananas Indigenous Cattle Meat Cow milk. fresh Tomatoes Pumpkins. UAE. whole. whole. fresh Potatoes Indigenous Goat Meat
80 81 81 87
Indigenous Sheep Meat Chillies and peppers. fresh Onions (inc. whole. green Beans.1.fao. whole. green Watermelons Grapes Cabbages and other brassicas Indigenous Chicken Meat Tobacco. guavas Other melons (inc. nes Almonds. green Beans. squash and gourds Mangoes.aspx
. shallots). Ministry of Environment & Water. with shell Okra Eggplants (aubergines) Goat milk. National Bureau of Statistics. mangosteens.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 . UAE FAO online information http://faostat. unmanufactured Carrots and turnips Fruit Fresh Nes Hen eggs. green Watermelons
Source: Minister of Foreign Trade.org/site/339/default. green Citrus fruit.
Table IV.2 United Arab Emirates rank in the world. Minister of Environment & Water. 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.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.
000 4. Country Profiles: United Arab Emirates". Available at: http://www. ANIMAL PRODUCTS [ 2] VEGETABLE PRODUCTS [ 3] ANIMAL OR VEGETABLE FATS AND OILS AND THEIR CLEAVAGE PRODUCTS.000 2. "Aquastat. 7 FAO online information.
Ministry of Economy(2004). Iran. total domestic imports of agri-food products were estimated at US$10.5 billion were exported.g.1 Agri.
In 2009. sugar confectionery.126 million m³/year. This figure does not include the possible annual recharge of groundwater from neighbouring countries (for example from the Eastern Arabia Aquifer). and oil. and vegetables.Trade Policy Review Page 68
Chart IV. Pakistan.000 0
[ 1] LIVE ANIMALS. The main markets for the UAE's exports of agri-food products are other GCC members.gov.
.1). The main exports are cigarettes. ANIMAL OR VEGETABLE WAXES [ 4] PREPARED FOODSTUFFS. as no figures are available. EU countries.moft.3 billion.7 The first desalination plant was installed in Abu Dhabi in 1976. . total water withdrawal massively exceeds groundwater recharged from rain.000 1. 2009 Us$ million
7. available at: http://www.ae/
7.5 Agricultural water withdrawal for crops was estimated at about 1. Other Arab Countries. animal or vegetable fats and oils. chicken.PREPARED EDIBLE FATS. miscellaneous edible preparations. by HS section. The remainder was used for industrial and domestic purposes. TOBACCO AND MANUFACTURED TOBACCO SUBSTITUTES
Re ‐ Export Export Import
Source: Ministry of Foreign Trade online information. Water scarcity and high salt content. Main imports include cigarettes. There are also sizeable imports of raw agricultural products (e. BEVERAGES. while sea water intrusion is increasing in the coastal areas. According to the Ministry of Environment & Water (MOEW) and the Ministry of Economy4. and US$1. with depletion estimated at 2.food trade.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. race horses.000 3. and hot and arid climatic conditions negatively affect UAE's agriculture. poor soil quality. tobacco leaves) for re-exportation after their processing in the free zones (Chart IV.000 5.914 million m³/year (all groundwater). sugar. SPIRITS AND VINEGAR. 6 Ministry of Presidential Affairs (2004). and the United States.org/ag/agl/aglw/aquastat/countries/untd_arab_em/index.000 6.1 billion. horses (reflecting the important breeding and horse racing activity).stm [22 September 2005]. There are now many desalination
8. while landscape irrigation used about 200 million m³ (all treated wastewater). products of the milling industry. Re-exports were valued at US$2.fao.
forestation schemes. most agricultural production requires substantial government support. seeds. quarantine.1% of the UAE's total territory). groundwater withdrawal is now essentially for agricultural purposes. Another 4% of the territory is covered by forests. Dubai. according to the authorities. except for dates which purchased by Al Foah Palm Cultivation Developing Company from farmers in the northern emirates. Abu Dhabi plans to double its current daily production of 630 million gallons at a cost of US$20 billion. the General Water Resources Authority is responsible for water management and coordination between the other agencies. and around 263. as in other sectors of the UAE economy. as well as promoting irrigated agriculture and the management of groundwater resources. At the federal level. and irrigation. all agricultural land is owned and managed privately. have been planted in the country. and provides fertilizers. this is granted mainly by the authorities of Abu Dhabi. producing mainly vegetables. and Sharjah8. veterinary services. and fruit. In Abu Dhabi. which accounts for 87% of the country's land mass. as thousands of hectares of palm trees.United Arab Emirates Page 69
plants all over the UAE. of which 17 main plants located in Abu Dhabi. and there were over 42. the construction of dams for flood control and groundwater recharge. pesticides. Vegetable production in the other (mostly northern) emirates is.000 ha in 1994. and resells at set prices through the Abu Dhabi Municipality outlets. According to the authorities. the Government gives land to UAE citizens. and forestation are also under its purview.
12. The MOEW supports agricultural production in the six other emirates. prepares the land for farming. at a cost of between US$10 billion and US$20 billion over the next decade
9. the MOEW and other agencies subsidize the use of bio-fertilizers and bio-pesticides in order to limit environmental damage. carried out under market principles. and fisheries policy. total desalination capacity is about 710 million m3/year.
. It is also responsible for formulating the rules and regulations on matters relating to water. Apart from the Government's experimental farms. nurseries. pest and disease control. Main policy instruments
10. and the operation and maintenance of the hydro-meteorological network. Foreign companies may. and all domestic and industrial needs are met by desalination plants. 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.000 in 1994. and woodlands. and public gardens. up from 21.000 hectares (ha) in 1977 to 71. The cultivated area increased from 15. hold up to 49% of the capital of agri-industrial companies.
Given the UAE's climate. dates.
11. The operation of laboratories. including the registration of the water well drilling companies and licences for drilling. when financial resources from oil exports started to flow towards the development of agricultural production.
13. while Dubai will increase current production by 600 million gallons a day. Such land can only be owned by UAE nationals.923 ha in 2008 (3. According to the authorities.
Environmental Research and Wildlife Development Agency (2002). inspection services.
Despite the water constraint. remarkable advances have been made in agriculture since 1975.028 farms in the UAE. It is also in charge of coordinating agricultural. The Government of Abu Dhabi buys part of the production (mainly vegetables and dates) at set farm-gate prices. forestry.
The MOEW is also financing research on the types of fodder that can withstand the country's climatic conditions and survive on little water. 095 2.292
. dams. The UAE also hosts the International Centre for Biosaline Agriculture. and guidance on.
17. which aims to develop and promote the use of sustainable agricultural systems that use salt water to grow crops. Some fodder is imported. drainage.803 1. and free irrigation. The Ministry of protected Environment and Water is also encouraging farmers to apply modern technologies in agriculture such as protected agriculture. so as to optimize productivity. provision of. including: water supply facilities. The Federal Government has invested sizeable resources in agricultural research and guidance to farmers. produced privately using intensive integrated production systems. hydroponics and drying dates. Studies are under way on combating salinity and the capacity of different types of fodder plants to withstand high salt content in the soil. dates. and wild plants. pastoral. and irrigation facilities. Another avenue of research concerns the production of alternate vegetable products in greenhouses. seeds. In general.
The provision of fresh water entails a number of infrastructural services.
Support for livestock production consists of free veterinary treatment and vaccination.002 916 2. long-term research on agricultural diseases. but farmers pay for the drilling of boreholes on their farms and the pumping of groundwater.340 2005 943 3. Agricultural research focuses on four main areas: increasing the production of palm trees. and marketing support.715 2007 289 1.2 Abu Dhabi development expenditures.Trade Policy Review Page 70
14. 270 1.357 2006 331 2.310 2008 Prel. It also encourages them to grow local fodder crops. and research on plants grown in greenhouses. provision of fresh water and seeds. sales of fodder in Abu Dhabi are organized by the Abu Dhabi Municipality. the Government of Abu Dhabi allocated some US$80 million dollars to agriculture.147 1. The Ministry will also set up in 2009 about 585 plastic houses and 85 glass houses for drying dates for farmers. Research is also encouraged on biological control methods as an alternative to the use of insecticides to combat agricultural diseases. but it is increasingly produced locally. little assistance is extended for poultry and dairy.
Table IV. 2000-08 (In millions of UAE dirhams) 2004 AGRICULTURE ELECTRICITY AND WATER INDUSTRY AND COMMERCE TRANSPORT AND COMMUNICATIONS 1. In addition. According to the authorities.115 4. sizeable expenditure was allocated to electricity and water (US$520 million). provision of necessary equipment and training. In 2007. an applied research and development centre located in Dubai. They pay half of the maintenance costs of the irrigation network.428 288 2. large-scale planting of palm trees to create suitable shaded areas for farming. the timely use of fertilizers.902 239 1.
15.579 2. assistance to farmers includes substantial investment and production subsidies: reclamation and distribution of agricultural land.
18. It is estimated that over half of total expenditure on electricity and water is used for irrigation purposes. Fodder farms are supported with free land. fodder. fertilizers. and fruit such as citrus and mangoes. No irrigation water charges are levied by the federal or emirate governments (except on treated water).
784 164 428 229 149 23 9.
Agricultural products attract a tariff of either 0% or 5%. The simple average tariff on agricultural products (ISIC Rev.
Source: IMF (2009). In 2002.
In April 2002.3 Domestic agricultural support measures.3). Loans and financing in agricultural sector 1. the UAE notified the WTO Committee on Agriculture of domestic support in 2000 and 2001 (Table IV. The UAE lifted its ban on olive oil from the European Union.769.029 209. maintained for SPS reasons. WTO documents G/AG/N/ARE/2. Preliminary data.735 2001
Source: WTO document G/AG/N/ARE/5.911 680. United Arab Emirates: Selected Issues and Statistical http://www.11
WTO document G/AG/N/ARE/3. 11 WTO documents G/SPS/R/30.
20.5% on food products (ISIC 311 and 312)). and 20 tariff lines covering all tobacco products with an alternate tariff (Chapter III(2)(iv)(a)). with two exceptions: alcoholic beverages (50%). in June 2005. 25 April 2000.792
414 48 55 541 395 106 7. Imports of plants. 2000 and 2001 Measure type Name and description of measure Value (US$) 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. 16 August 2004.6725.2 definition) is low at 3.pdf [April 2009].085 245.735 1.10 No notification has been received since then.497.
Appendix.6725. and their products must meet all sanitary and phytosanitary requirements set at federal level (Chapter III(2)(vii)(b)). the UAE notified the WTO Committee on Agriculture that it granted no export subsidies during the period 1996-2001.064 680.321
216 162 333 233 194 163 5. 13 January 2005.617 953. and G/AG/N/ARE/4. Supporting Table DS:1.066 320 656 1.470 214 11 11. animals. 4 September 2003. This is still the case according to the WTO website.816
1. as they contain only expenditure by the federal government.org/external/pubs/ft/scr/2009/cr09120.666 335.imf. 22 May 2002. 25 April 2000. No domestic support had been reported for 1996 to 1999 or 2002 to 2010 9.
2. and G/SPS/R/35.
19. G/SPS/R/34.United Arab Emirates Page 71
HOUSING URBAN DEVELOPMENT SEWERAGE SPORTS AND RECREATION GENERAL ADMINISTRATION HEALTH TOTAL a b US$1 = Dh 3. These amounts are considerably smaller than those reported by the Emirate of Abu Dhabi. 22 May 2002.3% (4.189 56 773 393 156 7 9.
The company has also invested in another tomato paste manufacturing plant in Egypt. The new facility is expected to boost government-sponsored efforts to improve palm date cultivation within the UAE. was established in 1997 under the UAE Offset programme (Chapter III(2). In 2009. with a capacity of 30 tonnes per hour. unloaders are used to unload raw materials received in bulk from ships to material handling systems. Al Wathba Marionnet. The company employs approximately 200 people. The input raw materials in to the production are facilitated by three pneumatic ship. with a leading position in the UAE tomato paste segment and a growing presence in the increasingly important frozen vegetable category. Then. with an unloading capacity of 1000 tonnes per hour. produces poultry. Over 40 million date palms have been grown in the UAE until 2009. for raw material storage13. 16 million line the roads. and non-traditional feed All stages of production and control are fully computerized.
Al-Ain Vegetable Factory . several companies have emerged as leading producers of date palms using tissue-culture technology. 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. canned and frozen vegetables. A Jebel Ali free-zone company has introduced a new technology to produce fructose syrup from dates. which is government-owned.S. including food products. and it exports dates.
Dates are the UAE's main crop (Table IV.C since 2008. The company products are marketed in the UAE and the wider MENA region. The country is a pioneer in tissue culture to grow date palms.000 date palms a year. a new mill.com. Concept Food Industries claims to be the first company in the world to use this technology. Developments regarding selected products
22. One animal feed mill produces over 50 varieties of fodder. The facility has the capacity to extract 35.000.
25. The total processing capacity of both plants is 2100 tons per day12.
There are no a priori price controls on agricultural products. Other crops
23. Date palm cultivation plays a key environmental role in afforesting portions of the desert into oases. Grand Mills is working closely with Al Ain University.00 square feet of space. Source: www. The grains are cleaned. it is currently producing about 300. Many farms use modern irrigation systems. cycled. but the MOE monitors the prices of 15 basic goods. which also delivers a high protein animal feed as a by-product.
24. known as the OASIS of the UAE.com
. Grain Silos equipped with cleaning machinery provide storage capacity for 150. resides in Abu Samra. The mills are owned by the Abu Dhabi General Holding Company (section (3) below). in Al Ain .J. cooled and stored in 78 silos of varying capacities.000 tonnes of grain.1). in an effort to combat cartels and other anti-competitive practices (Chapter III(4)(iii)). fish.000 tonnes of high fructose syrup yearly from dates. One company. Al-Ain Vegetable Factory is a leading UAE manufacturer and marketer of tomato paste.Trade Policy Review Page 72
21. The warehousing facility at the factory has 60. a member of Agthia Group P.alainveg.grandmillsuae.
areas and seasons. Commercial fish farming is being supported by the UAE Offsets Group (Chapter III(2)). In order to increase fish stocks. The first sugar refinery to be established in the Gulf. both existing and start-ups. to use less than 2-inch mesh in fish traps or less than ½ inch mesh in fishing nets. and the structure of the workforce. distribution and logistics. engines. Experimental aquaculture in the UAE has been undertaken for some years. in 2009 the Re Export with a total value of about USD 111. In order to protect the seabed and its demersal fisheries. Al Khaleej Sugar refinery started production in 1995. real estate management and property development. It aims to invests in viable and profitable entities. fishing committees were established to ensure proper coordination with other governmental bodies. with the primary objective of investing in companies and projects.
The United Arab Emirates is the second country at the world level in re-exporting canned sugar14. the Ministry of Environment & Water has issued regulations concerning fishing gear. DI shareholders have grown to 21.ae
29. where it exported 15. food and related fast moving consumer goods.United Arab Emirates Page 73
26. it has already achieved the status of the largest sugar refinery in the world. wholesale and retail trade representation. industrial and commercial properties. With a current daily production capacity of over 4. accounting for 1% of countries importing such commodity. transportation.
Source: www.6 million and a quantity of 207 thousand ton.
28. to carry out fishing operations in spawning and nursery areas during the restricted period. according to UNSD of 2008. It is illegal to catch undersize fish. fishing boats have been operated mainly by non-UAE nationals whose concern for stock preservation may be less than that of UAE fishermen. In order to preserve stocks. The United Arab Emirates was ranked the twenty seventh amongst the countries of cane sugar exporting world.aksugar. new fishing boats are no longer being registered. equipment. the number of fish traps is also restricted. nor hobby craft. And UAE is at the 20th level among world countries regarding the quantity of cane sugar imports. and to fish without a UAE citizen on board the vessel.
The UAE's fishing subsector has had to adapt to changing conditions and technologies in recent years.
27.500 with the paid up share capital standing AED 3. The average ton price reached about USD 274. Over-fishing has resulted in reduced catches and smaller fish in the landed catches. In the year 2008. as are fishing periods.800 tons. The situation has been worsened by considerable provision of boats. According to the authorities. bottom trawling is not permitted in the territorial waters of the UAE. Foreign Trade data of UAE clarify that the country's exports of sugar and sugar products reached 63 countries along the world in 2009. a programme is in place to introduce fingerlings in protected areas.
.2. DI was set up with a paid up share capital of AED 650 million. marketing and sales.
Dubai Investments PJSC was incorporated in 1995. DI has established 47 subsidiary companies encompassing a diverse range of sectors including manufacturing. with a daily production capacity of 2. Since 1995. Re-exporting quantity reached 15.400 tons.1 thousand ton with a value of USD 6 million approximately. and storage facilities by the Government. Also. And Import of sugar and sugar products with a total value of about USD 225 million and a quantity of 278 thousand ton. shipping. with a total value of about USD 472 million and a quantity of 909 thousand ton. The refinery has continuously improved its operations to become one of the most efficient refineries in the world. this quantity reached 182 thousand ton. publishing and telecommunications . healthcare and pharmaceuticals.1 million ton annually.
ENERGY.000 b/d) Crude oil exports Volume (1.
.148 392 315 6. In the Jebel Ali free-zone alone.460 1.360 7.060 45.8 420 6..7 399 6.195.420 2007 97.549 2. both are estimated to last more than 100 years at current production rates (Table IV.342 84.org. Share and ranking among OPEC countries. and exports of oil and natural gas. the Arabian Gulf. Annual Statistical Bulletin 2008.768 486 425 6.985 million accounting for 52% of the value of UAE agricultural exports. The business activities of Asmak span all aspects of the aquaculture industry.787 22.499 2.0 401 6. companies are involved in tobacco manufacturing or trade.091 55.344 2.
The UAE is a major oil and gas producer in a major producing area. distribution.opec.099 504 440 6. (d) Cigarettes and tobacco products
30. is engaged in the manufacture and supply of fish-feed products.org.060 44. production. 2000-08
2000 Proven crude oil reserves (m b) Crude oil production (1.248 2.334 82.
in 2009. The UAE also has further.153 514 430 6.oapecorg. taking advantage of the import of inputs.390 407.16
Table IV.060 38.000 b/d) Value (US$ million) Exports of refined products (1. IMF (2005b).4). marketing.172 38.
Source: OPEC. as its name suggests.187 2.800 2.079 509. 15 Oil and natural gas reserves are among the world's five largest. processing and packaging.800 2.380 2. export.342 2008 97.iea. International Energy Agency online information. fish-farming equipment.000 b/d) Output of refined products (1.800 2.Trade Policy Review Page 74
which helped to establish the international fish farming company Asmak.950 1.4 398 6.800 2. gas reserves estimated to last 100 years at current production rates.072 50.815 26.org.548 -
. One large company produces outside the free zones. The company has also acquired a stake in the Greek company Feedus as part of its strategy to invest internationally in successful aquaculture projects.060 39. 1979-81.100 452. including hatcheries.420 70. fish feed.4 Reserves.100 2003 97. Feedus.562 2004 97.800 2.390 7.060 43.987 97.614 21. and consulting. AND WATER Overview
31.800 7. and the Organization of Arab Petroleum Exporting Countries (OAPEC) since 1970.113 2.207 2001 97.040 48.414 398 310 6.800 2.398 7.060 47. and Abu Dhabi.115 2.790 7.202 304. "Natural gas".000 b/d) Crude oil and refined products exports (1. Further expansion phases are planned in Ra's al-Khaimah.000 b/d) Proven natural gas (billion standard m3) Marketed production of natural gas (million standard m3) Natural gas export (million standard m3) 1.790 7.
Online information available at: http:// www. some 60 duty-free
The total Exports and Re-Exports of cigarettes were US$1.290 7. 2006 97.380 6. and http://www.185 2002 97.767 2.800 7.048 25.676 2005 97. Fujairah.800 2.195 55. a
Not available.175 2.800 1.800 2.900 2. fish farming. Available at: http://www. largely untapped. It is a member of both the Organization of Petroleum Exporting Countries (OPEC) since 1974. up from 11% in Imports are also sizeable at US$824 million.
the UAE has neither a unified federal energy policy nor federal legislation on exploration and development of energy and other mineral products. such as OPEC.17 According to the Constitution.
The UAE currently produces around 2. Oil and gas production is handled by the Abu Dhabi National Oil Company (ADNOC). although this share has been declining thanks to a successful programme of economic diversification. Abu Dhabi owns more than 90% of the UAE's oil and natural gas resources.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). Sharjah is the third UAE hydrocarbon producer. most notably in Dubai. 2 April 1996. 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
WTO document GATS/SC/121.5 Activities of the Abu Dhabi National Oil Company.
. On the east coast. about 40% of oil production is also carried out by concessionaires wholly owned by foreign interests. Dubai produces less than100. Thus.United Arab Emirates Page 75
32. and the Arab Organization of Mineral Resources.
35. through joint ventures with international companies is a majority shareholder (Table IV. Oil production is expected to reach four million barrels per day by 2015 and natural gas production will increase to 6. OAPEC.5 billion cubic feet of gas daily. The UAE applies tariffs of 5% on imports of all products of the mining industry and of electricity.
The oil and gas sector provides around a third of the UAE's GDP. including for power generation and water desalination.
34. According to the authorities. Fujairah is the second largest bunkering port in the world (about one million tonnes of fuel per month).5). exports have also increased. Nevertheless. although all the fuel is imported from neighbouring countries.
Table IV. or by subsidiaries in which ADNOC is a majority shareholder. the oil and gas sector remains the dominant contributor to consolidated government revenues. The Federal Ministry of Energy represents the country in the international petroleum community and specialized international and regional organizations to which the UAE belongs. ownership of natural resources is vested in each emirate. and gas
33.5 million barrels of oil per day (b/d). The UAE has not included any energy-related services in its GATS Schedule of Commitments. Gas is increasingly used by households and local industries. which faces a depletion of its oil resources. Petroleum.
making it a major regional operator. and is the eighth largest producer among OPEC countries. It is controlled and supervised by the Supreme Petroleum Council. has a capacity of 145. including the Abu Dhabi Tax Decree (see below). It is fully owned by the Government of Abu Dhabi. Four of the five UAE refineries are owned by the respective emirates. Ruwais hosts one of the world’s largest petroleum industry complexes. Established in 1988. the Abu Dhabi Gas Ownership Law. petrochemicals operations. gas.
36. owned by ADNOC (Table IV. Metro Oil.
. A 71. began operations in Dubai in May 1999.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
ESNAAD NDC IRSHAD
100 100 60
Source: ADNOC. with a capacity of 120. a number of laws pertain directly or indirectly to the petroleum industry.5): the Ruwais refinery. Abu Dhabi Refinery. petrochemical plants.4). the Council has the dual role of formulating all petroleum policies and overseeing their implementation.250 b/d privately owned second-hand unit was set up in Sharjah by the private Sharjah Oil Refining Company in 2001.
38. the other. has a capacity of 88. The Council is currently chaired by the Ruler of Abu Dhabi (the
37.18 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 the Petroleum Ports Law. and a number of companies servicing the onshore and offshore oil and gas business. The UAE has five refineries with a combined capacity of more than 0. plus 280. the Petroleum Resources Conservation Law. Abu Dhabi has no comprehensive petroleum legislation governing the granting of exploration and development permits. it also acts as ADNOC’s main board.000 b/d of crude oil.000 b/d. two are operated by Abu Dhabi Oil Refining Company (Takreer). although their share in the total oil exports remains modest at about 10%.
18 However. housing oil. The Abu Dhabi National Oil Company (ADNOC) was established in 1971.000 of condensate. owned by the Dubai Emirate. The Metro Oil and Sharjah refineries were not operating in early 2006. Furthermore. owned by the Government of Fujairah.000 b/d of crude oil. it is on an upward trend (Table IV.000 b/d. and other related industries has created an integrated oil and gas sector. is a 90.000 b/d. Takreer's refining capacity more than doubled over 2000-05 to over 500. The progressive build-up of refining capacity since the 1980s has made the UAE a sizeable net exporter of refined products.64 million. Foreign ownership is not a priori limited. the UAE has plans to build a new refinery at Fujairah with a capacity to process between 150. The Emirates National Oil Company condensate refinery (ENOC).000 to 200.000 b/d refinery.
Downstream development of refineries.
5% of the equity. Since 1976. It exercises administrative and technical control over its affiliated companies. and ADNOC carries out the detailed negotiations leading to their implementation. and has signed a 25-year gas sales agreement with Dolphin Energy.
41. is the first regional private sector natural gas resource enterprise to be established in the Gulf. domestic sales are carried out by ADNOC Distribution (Table IV. in 2007.5). the Middle East’s largest regional
ADNOC (2005). and Oman. The Secretary General of the Council is also the chief executive officer of ADNOC.United Arab Emirates Page 77
President of the UAE). Dolphin Energy is in the process of completing the Taweelah-Fujairah Pipeline (TFP). half of the volume of exports.8 a gallon. under which. see Chapter III(2)(viii)) and the State of Qatar. all domestically refined products (e. TFP will transport a substantial volume of gas directly to the east coast of the UAE along a 240km overland pipeline route. initially. The Council monitors crude oil production to ensure adherence to the OPEC-mandated quotas. naphtha. jet oil. a separate legal entity in the ADNOC Group.g.25 (approximately US$0. Diesel is currently sold at Dh 7. owned by the Government of Dubai). with 51% ownership. see below). In 1999. pursuant to the Abu Dhabi Gas Ownership Law. Today. Public Joint Stock Company (PJSC).5 per litre) and Dh 6. Dolphin's main shareholder is the Government of Abu Dhabi. Apart from 95 and 98 octane gasoline. A number of other public companies market oil products: ENOC (Dubai). Emirates (federal government). ADNOC has also been managing. The resulting Dolphin Project is a recent intra-regional initiative. Dolphin’s main customers are Abu Dhabi Water and Electricity Authority (ADWEA.19
39. Gasoline prices are fixed by the Government of the UAE and are the same throughout the country. with deliveries to commence once the project comes on stream.
ADNOC is the interface between the Council and the operating companies that execute approved projects. which aims to develop links between the national gas infrastructures of Qatar. process. and two foreign partners Total and Occidental Petroleum. ADNOC has entered into joint ventures with major multinational oil companies to gather. at regional market prices by ADNOC. it is currently acquiring these from ADNOC. all Abu Dhabi's gas reserves on behalf of the Abu Dhabi Government. and Emirates Petroleum Products Company (EPCO. diesel. Around 6 million tonnes of refined products per annum are sold domestically.
A Development and Production Sharing Agreement was signed in 2001 between the UAE Offsets Group (UOG. natural gas flowed for the first time from Qatar to the UAE. and liquefy the gas for the domestic and international markets. The Council grants petroleum concessions and licences. and the Dubai Supply Authority.75 a gallon.
40. the Oman Oil Company. thus completing the regional gas grid. which are sold at Dh 6. Products refined by Takreer are sold to international buyers.
. up to 2 billion standard cubic feet of natural gas are to be supplied from Qatar to the UAE daily. each with 24.
42. who appoints its members by decree. the UAE. etc) are sold at market rates.
Dana Gas. bunkering oil. the Union Water and Electricity Company. 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. The Dubai Supply Authority is responsible for sourcing and securing Dubai’s natural gas requirements. respectively. ADNOC and the UAE Offsets Group (UOG) issued a joint declaration to share natural gas distribution.
43. There are plans for interconnection of electricity transmission and distribution networks among emirates. Crescent National Gas Cooperation Limited (CNGCL). Dana Gas PJSC has been incorporated according to the laws of UAE. However. Currently. 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. and utilities
45. It holds assets and contractual entitlements to the largest private sector integrated natural gas supply chain in the Gulf. Qatar and Kuwait and Phase II is expected to complete by the end of 2010.danagas. 2010 the government of announced the discovery of new oil discovery in Dubai located east of "Rashid" field. The first stage completed in the first quarter of 2009 to link the electricity grids of Bahrain. after successfully completing partial capitalization in July 2005 of AED 3. This decree was not promulgated as special petroleum tax legislation but as a corporate tax law of general application. Sajaa Gaz Privet Limited Company(SAJGAS).
On Feb 4th. gas. On Aug 31st. ADNOC and its subsidiaries. training of nationals. investment. all contracts are negotiated on an individual basis. as amended. There is no comprehensive petroleum legislation in Sharjah. and all other domestic companies dealing in petroleum.
Electricity production at 17. United Gas Transition Company Limited (UGTL). The total generation capacity of the UAE at 3730. Dana Gas has established joint ventures throughout the region for instance DanaGas – Egypt. economic development. in practice. Some 92% of the production is fuelled by gas while the remainder is produced by diesel generation or steam turbines. Dana Gas sales revenues reached AED 1. the tax ranges between 55% and 85% depending on the product that generates the taxable income. which was established in 1999. 2009 the ruler of Dubai. and processing of oil and all petroleum matters is formulated by Sharjah Petroleum Council.Trade Policy Review Page 78
private sector natural gas company. it is presently applicable only to "chargeable persons" "dealing in oil" in Abu Dhabi. Saudi Arabia. and completing the allotments for its Initial Public Offering (IPO) of AED 2. including tax holidays and reduced tax rates. In addition to commencing the operation of its existing assets. According to the authorities.06 billion of equity shares as per the allocation policy as set out in the Prospectus.ae
. North Africa and South Asia (MENASA) region. Water
Source: www. inter alia. are expected to be completed this linkage in the second quarter 2011.369 MW in 2007. and all petrochemical activities in Abu Dhabi according to the Abu Dhabi Income Tax Decree of 1965.28 billion in 2009.
A corporate tax applies to oil. Iraq Kurdistan Gas Project and DANAGAZ Bahrain. The emirate’s policy regarding exploration. There are no imports or exports. The Supreme Petroleum Council grants tax incentives. "chargeable persons" include foreign entities. issued a decree forming the Supreme Council of Energy. 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. technology transfer. Electricity. production. water. Dana Gas plans to expand its business by pursuing natural gas opportunities throughout the Gulf as well as the wider Middle East. upgrading the electrical power the internal of the UAE and Oman.94 billion of its shares to prominent regional and sector-experienced Founders. to businesses that benefit Abu Dhabi in terms of.
44. and among members of the Gulf Cooperation Council (GCC).17 GW/h in 2009 while the number of consumers according to use categories for 2009 at 230771.
United Arab Emirates Page 79
production and distribution are closely associated with electricity generation. Distribution is under the monopoly of Abu Dhabi Distribution Company (ADDC) for the Abu Dhabi region. Silla) and Abu Dhabi Island25
The Abu Dhabi water and electricity sector comprises the production. and have monopoly over all segments of the electricity subsector. the Abu Dhabi electricity and water industry has been unbundled (Chart IV. UAE. transmission.rsb. Western Region (Liwa. 24 RSB online information. Available at: http://www.
47. distribution and supply of electricity and water to customers. Coordination is by the Ministry of Energy. All entities. and the Federal Agency for Water and Electricity within the Ministry of Energy. New projects have been implemented to enhance the transmission and distribution networks to meet the rapid growing demands for water and electricity.2). The Dubai Electricity and Water Company (DEWA).540 service agreements for the supply of water and/or electricity. UAE. and are carried out by the same companies 21. Electricity transmission is under the monopoly of Transmission Company (TRANSCO).
In 1997. 2 of 1998. Since 1999. the sector has attracted about US$5 billion of foreign investment. except ADWEA which is a public organization albeit with significant administrative independence and a separate legal entity. Since then.
46. a law was passed for the comprehensive restructuring of the subsector23.)
Federal Electricity & Water Authority. the Regulation and Supervision Bureau is the sector's regulator24. 25 Source: www.dewa. In early 1998.sewa.ae (Sharjah Electricity and Water Authority).gov. private foreign and domestic stakeholders holding the remaining 40% (Chart IV. while the AADC water distribution system has reached (3550 Km. ADWEA is now a holding company that owns 100% of four producing companies. the Sharjah Water and Electricity Company (SEWA). the Independent Power and Water Producers (IPWPs). Aside from the IPWPs. ADWEA accounts for 53% of the federation’s total installed capacity. which supplies the four northern emirates and parts of Sharjah.addc. are owned and controlled by the respective governments. 48. all entities are 100% owned by ADWEA.
There are four electricity-water authorities in the UAE: the Abu Dhabi Water and Electricity Authority (ADWEA).2). and http://www. the Emirate of Abu Dhabi formed a Privatization Committee for water and electricity.6).ae (Dubai Electricity and Water Authority).22 Installed generation capacity has increased from 9. Online information is available at: http://www.
Currently. and Al Ain Distribution Company (AADC) for the Al Ain region.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. 23 Law No. The prices of electricity and water are determined at emirate level (Table IV. ADDC’s customer base is comprised of 412.ae
.ae. ADWEC is the sole buyer from all the producers.gov. and 60% of four other producing companies.gov. And Ministry of Energy. which is distributed to customers at the 33 kV and 11 kV levels throughout three regions: Eastern Region (Mussaffah and Baniyas). In 2007 total length of ADDC water distribution system adds up to (8000) Km.
In 2002.01 0.01 0.015 0.01 Dewa DH/KWH 0.075 DH/GALLON 0.05 0. In 2000.2 Structure of Abu Dhabi Electricity & Water Sector
Source: Abu Dhabi Water and Electricity Company.6 Electricity and water charges.15 AND 0.015 0.
49.02 0 0 0. The output from the Ruwais refinery was initially intended to supply power and utilities only to plants in the Ruwais industrial area.075 PRICE Sewa Fewa
TANK DISTRIBUTION RESIDENCE WITHOUT METERS INDUSTRIAL/COMMERCIAL
Source: Ministry of Energy.20 0.20 0.Trade Policy Review Page 80
Chart IV.03 0.15 0.03 0.025 0 0 0.035 0.20 0.075 0.20 0.
ADNOC also produces electrical power.15 0.075 0. ADNOC and the Abu Dhabi Water and Electricity Authority (ADWEA) signed a Memorandum of Understanding to interconnect
.035 0 0 0. Statistical Report 1998-2008
Table IV. 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 0.20 0. the latest expansion of the Ruwais refinery involved the addition of four gas turbines and two water desalination units.005 50 MONTHLY 0.20 0.075 0.03 0 0.20 0.15 0.075 0.20 0.
major growth areas include capitalintensive high-technology industries supplying. leather. and sporting goods and equipment.gov. fertilizers. (4) (i) MANUFACTURING Main features
50.1 billion in 2008. a National Bureau of Statistics was established according in 2009 according to Federal Law No. etc. headgear. rubber and article thereof VIII. Textiles and textiles articles XII. and the large infrastructural projects such as Dubai Health Care. furskin. social and demographic sectors.9 billion in 2009. Ruwais electricity plant now supplies power to the ADWEA National Grid. this production caters for the large oil industry. information technology equipment. umbrellas. Plastic and articles thereof. except food. IX.
51.ameinfo. cork.uaestatistics.United Arab Emirates Page 81
their electrical grids to exchange power in the future. cement.ae Source: AME Info . paper and paperboard XI. analyse and compile national data and statistics across economic. such as petrochemicals. based on its comparative advantages.html
. the UAE's manufacturing sector developed in oil. Exports from the customs territory average US$16. and aluminium. etc. http://www. http://www. Subsequently. The move follows a recommendation from the IMF which suggested the implementation of a comprehensive and consistent statistical system27. environmental and pollution control equipment. Dubai International Financial Centre. No statistics are available on the UAE's manufacturing sector. air conditioning and refrigerating equipment. Re-exports are in the order of US$37.6 billion in 2009 compared to US$143. Pulp of wood or other fibrous cellulosic materials.and gas-intensive industries. beverages and tobacco (section (2) above). Chemical products and related industries VII. medical equipment and services. exported in large part from the free zones. Footwear.2 billion in 2009 compared to US$15. etc. Wood. 9 of 200926. Available trade data (Table IV. are approximately US$111.
1352 5463 741 2472
310 372 23 2628
136 2444 232 493
1102 4763 706 2135
388 274 29 518
160 2430 223 467
Source: National Bureau of Statistics web site . XIII.com/99550. the sector has rapidly evolved to more diversified products such as electronics and light machinery. construction products. security and safety equipment. and articles X. plaster. Initially. Dubailand. However. Currently. in addition.7 Trade in manufactured products. Raw hides and skins. inter alia.
The emirate governments have each invested important financial resources to diversify their economies into non-hydrocarbon industries.7) show that imports in the UAE customs territory of manufactured products.2 billion in 2008.. Articles of stone. The Ministry of Economy said that the NBS would prepare. Dubai Media City.
Table IV. To a large extent. 2008 & 2009 (US$ 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.
Industrial licences are required to establish a manufacturing activity.ae/
52. Natural or cultured pearls. Abu Dhabi National Industrial Projects. and increase in investment over 2007-06.1). Followed by chemicals and plastics. The Ministry of Finance and Industry is the federal authority in charge of formulating the policies.
54. As noted. Base metals and articles of base metal XVI. XV.
Ministry of Economy
53. growing by 73% annually. Optical. 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. Dubai Investment Company. 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. Arms and ammunition XX. precious or semi-precious stones. electrical equipment etc. The largest industrial growth has taken place in Abu Dhabi and Fujairah.to large-scale industries and services projects that will open new business opportunities.tradeexchange. 1 of 1979. The number of industries registered at the Ministry of Finance increased from 1. The food. XVII.Trade Policy Review Page 82
The long-term policy objective shared by all emirates is to increase the manufacturing sector's contribution to GDP. UAE online information http://www. the stock of investment has increased three-fold since 2002. aircraft. etc. Machinery and mechanical appliances.6 billion in over 20 companies. to US$17. Works of art. Foreign companies wishing to establish in the UAE may hold at most 49% of the capital of the company (Chapter II(5)). vessels and associated transport equipment XVIII. Another company. In May 2004. asbestos. each Emirate holds a majority stake or is the sole shareholder in key companies. established in 1996. Vehicles. Some institutions have been created specifically to foster the development of the manufacturing sector. From the point of view of competition there is no regulation of incentives offered by the respective emirates. These licences are issued by the economic authority of the emirate in which the business office is to be located.15 billion up to US$34 billion in 2007. cinematographic. has stakes with a total of over US$1.243 in 1995 to 3. measuring. For example. According to the authorities. these statistics cover only the production of units that are registered at the federal level. XIV. growing by 69% annually. the Federal Government may offer investment incentives to companies that register with it (Box III. Miscellaneous manufactured articles XXI. beverage and tobacco industries have experienced the largest increase in investment over 2000-04. aimed at providing an integrated infrastructure. the Emirate of Abu Dhabi established the Higher Corporation for Specialized Economic Zones.
. was set up in 1997 as a private shareholding company designed to establish medium. the only assistance effectively available is the concessionary financing provided by the Emirate Industrial Bank (Chapter III(3)). Under Federal Industrial Law No. Instruments XIX. photographic. etc. Typically.036 in 2004. etc.
880. either under the industrial incentives regulations (Chapter III(4)).000 mt year of high grade aluminium in 2009. 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.Burnstop. is now one of the world's biggest smelting complexes. Other Tawazun subsidiaries include Burkan Munitions. Other objectives include the promotion of local industries and the creation of employment and training opportunities for UAE nationals. Abu Dhabi Autonomous Systems Investments. Available at: http://www.
The Abu Dhabi government has also announced plans to privatize certain manufacturing companies. OPB also acts as a conduit between international contractors and local private sector for creation of commercially viable.
. linked to purchases of military equipment. and manufacture of airconditioning units (Table III. OPB created a fully-owned subsidiary. Caracal Shooting Club. steel and pipe plants. Tawazun Holding’s major subsidiaries are Caracal International . The UAE Offsets Group is also active in promoting industrial development (Chapter III(2)). industrial.
55. The areas to be privatized include fodder. as well as a distribution network in all over Europe and North America. medium-sized and specialized industries. In 2007. GHC is privatizing some of its enterprises as part of the emirate’s strategy to forge a publicprivate partnership and stimulate local financial markets. DUBAL manufactures approximately one million tonnes of finished product. Emirates Precision Industries. Al Ain Shooting Club. Imports of all inputs are duty free. The Offset Program Bureau (OPB) was established in 1992 to oversee the offset program in the UAE.
The Dubai Aluminium Company (Dubal) plant. and educational projects and to create investment funds in the UAE and abroad. cement. MFN applied tariffs on manufactured goods (except agri-food) are generally at 5% (modal rate). as well as to invest in commercial.zonescorp. Remaya. with a few rates at zero (mainly on pharmaceutical products and printed matter). which was wound up. the German maker of hunting rifles and shotguns which has production lines in Germany. The privatization is expected to strengthen the local stock markets as the newly privatized firms obtain listings. agri-business projects. General Holding Company (GHC) took over the industrial holdings of the General Industries Corporation. and flour mills (section (2)(iii) above).com/En/Pages/default. It is mandated to set up joint ventures. the UAE Offsets Group announced the formation of UTS .the first national arms manufacturer in the United Arab Emirates – and Merkel. Since its inception. Each year.United Arab Emirates Page 83
a suitable business environment. and will encourage the private sector to become involved in the management of the zones.4). Burnstop from Finland (40%) and Dassault Investments (9%). established in 1979 and owned by the Entirely state. the company manufactures fire fighting and prevention equipment. In April 1999. or under the statutes of the respective state-owned companies Policies in selected industries Metals
56. and professional services through the establishment and management of special zones in Abu Dhabi29. The corporation also encourages small. financial. profitable and sustainable joint ventures. include a shipyard. a joint-venture between the UAE group United Technical Services (51%). A state-owned company.
57. Projects established under the UAE Offsets Programme.
HCSEL online information. with a annual consumption of process materials capacity of around 1. Dubal reports that its unit cost of production is among the world's lowest.
extrusion billet for construction. utilising the latest rolling mill technology to produce reinforcing bars for the construction industry. This includes foundry alloy for the automotive industry.4 billion global sales during 200933.dubal. and high purity primary aluminium for the electronics and aerospace industries. http://www. The factory uses imported raw material. 6 August 2004.ducab. Emirates Steel Industries (ESI). and Tanzania under major projects and distribution agreements.
Dubai Cable Company (Ducab) manufactures high. Europe.com/company. Cameroon. medium and low voltage electric cables.4% to non-oil revenues30.ae WTO document TN/MA/M13. The factory is the largest steel plant in the UAE. Raw material (magnesium) will come from mines in Albania. With regards to alumina feedstock in particular.
59. Dubal and Global Alumina Products Corporation signed a memorandum of understanding for Dubal to make a substantial investment in Global Alumina. The magnesium smelter project is being promoted by the Sahari Group of Abu Dhabi and Normans of Albania.aspx
.000 tonnes upon completion.000 tonnes per year of magnesium products.000 tonnes of 10-32 mm diameter steel per annum in 2006. Gas will be supplied to the project through a newly constructed pipeline34. Republic of Guinea and India. The plant's initial production capacity will be 20. Commissioning of EMAL Phase 1 (comprising a 756-cell smelter plus associated power generation.Trade Policy Review Page 84
made-to-order for 300 customers in about 45 countries worldwide predominantly in the Far East.
Dubal online information.32 Established in 1979. and North America. in Abu Dhabi.esi-steel.000 cubic meters of fresh water per day. In March 2005. Ducab is a joint-venture between the Dubai and Abu Dhabi Governments (50% each).67 billion combined bauxite mining and alumina refinery in India’s Orissa state. Dubal entered into a provisional agreement with one of India’s engineering and construction conglomerates (Larsen and Toubro) to build a Dh 3. the ASEAN region. a 351 MW power station and a desalination plant with a capacity of 2. formally Emirates Iron & Steel Factory (EISF) is a wholly owned government factory strategically located at the recently developed Industrial City of Abu Dhabi (ICAD). Active investments are also being made to secure DUBAL's requirements of alumina and other critical raw materials. there is no government ownership in the plant. According to the authorities. the company has to date engaged in four strategic upstream bauxite/alumina projects in Brazil.asp 34 Source: Emirates Steel Industries. A steel factory.
60. India. with an initial capacity of 600. billets for forging processes in automotive industries. Available at: http://www.ae 33 Source: Ducab. with a 50% stake each in the project.000 tonnes per year smelter. the UAE has proposed the elimination of tariffs on primary aluminium in the WTO31. Expansion plans include the construction of a 205. The company has recently expanded its business by entering into new export markets in Iran. reduction material and casting infrastructure) began in December 2009. Jordan. In April 2005. Abu Dhabi.ae/ducab_news. was built in the Mussafah Industrial Area. Dubal contributes 5% to Dubai's GDP and 5. to be increased to 60. the Middle East and Mediterranean region. The production is expected to be exported. a green-field smelter development at Al Taweelah.
61. Given the importance of this industry for its economy. DUBAL also holds a 50 per cent share in Emirates Aluminium ("EMAL"). Ducab reached AED 2. http://ducab. 32 Information is available at Ducab's website: http://www. transport and industrial applications.
A magnesium alloy plant is under construction at Sharjah's Free Zone.
it has the capacity to load ships up to 40. A shortage of cement and clinker throughout the UAE in 2005. respectively.United Arab Emirates Page 85
Chemicals. There has been an important expansion of capacity as the authorities consider that the market for these products will increase substantially. producing clinker and Portland cement. it has the capacity to load ships up to 40. Borealis and Borouge manufacture 4 million tonnes of polyolefins (polyethylene and polypropylene) per year.500 tonnes of urea per day. Other fertilizer manufacturing projects are located in Jebel Ali Free Zone. set up as a joint-venture between the UAE-based International Technical Trading Company (64%) and SQM of Chile (36%).000 tons of Clinker and 1. cement and clinker production were estimated at 9. Total capacity is estimated at 10. and gypsum are imported. 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. 65.2 million tonnes of clinker. but bauxite. For example. Borouge polyolefins manufacturing capacity reached 2 million tonnes per year (t/y) by mid-2010 and an additional 2.8 million tonnes and 7.000 dwt. Limestone is available locally.000. between ADNOC and Borealis. one factory in Ra's al-Khaimah manufactures white cement. established in 1998 in Abu Dhabi (Ruwais). Abu Dhabi Fertilizer Industries. which assure efficient use of electricity and natural gas while guaranteeing the highest degree of product quality and consistency. The plant is capable of producing 960. Borouge is a joint-venture. dating back to the mid 1970s.000 tons of Cement per year complying with BS and ASTM Standards. in a minimum amount of time.000 tons of Clinker and 1.
Source: Borouge. In 2004.
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).6 million tonnes of cement.000 dwt. The plant is equipped with the state-of-the-art production equipments. iron ore. January 2010
Cement & Ceramic The cement capacity in 2008 at 29. in a minimum amount of time. and 7. reflected the ongoing construction boom.1 million tonnes in 2009. which assure efficient use of electricity and natural gas while guaranteeing the highest degree of product quality and consistency.000.5 million t/y is scheduled for 201335. Twelve factories operate throughout the country. The plant is capable of producing 960. Ras Al Khaimah Cement Company plant is connected to a terminal inside the adjacent Saqr Port .
Chemical fertilizer production began in the UAE in 1980 with the establishment by ADNOC of Ruwais Fertilizer Industries (FERTIL). The Abu Dhabi Government has announced plans to privatize the Al Ain cement plant.000 tons of Cement per year complying with BS and ASTM Standards. www.
63.050 tonnes of ammonia and 1. Ras Al Khaimah Cement Company plant is connected to a terminal inside the adjacent Saqr Port .com/aboutus/default. The plant is equipped with the state-of-the-art production equipments.000 tonnes of fertilizer annually.
ADNOC's activities include the manufacture of petrochemicals (section (3)(ii) above).36 The cement industry is one of the oldest manufacturing industries in the UAE.borouge. produces 40. which currently has a capacity of 1.8 million tonnes increased to 34.aspx according to a latest Global Investment House (GIH) report. one of Europe’s largest polyolefin (plastics) producers (Table IV.2 million tonnes. which has been renamed the Emirates Cement Company. and plastics
all companies in the industry are entirely under private ownership.
Ras Al Khaimah Ceramics : RAK Ceramics is a public shareholding company. Julphar has five factories: three in Ra's al-Khaimah. Exports in 2004 exceeded US$135 million and went to 40 countries.000 sq.38 Founded in 1985.mt. Central Nervous System. the largest company (both in terms of capital and sales) is the Gulf Pharmaceutical Company (Julphar) based in Ra's al-Khaimah. in six companies outside the free zones. This plant is a dedicated facility for Ampoules & Vials filling adhering strictly to cGMP and pharmacopoeia specified environmental controls. of tiles per day and over 8500 pieces of sanitary ware per day.com
. India and Iran.
Federal Law No. 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. Oral Cavity & Gastrointestinal Tract. 4 of 1983 is the main law regulating the pharmaceutical industry. Afghanistan and Egypt. Julphar manufactures 275 varieties of medicine (including antibiotics).000 sq. Endocrinology. The global production of tiles is over 360. aside from Julphar. Leading markets are Saudi Arabia. Sudan. Gulf Pharmaceutical Industries (Julphar) was established in 1980 . capsules. Sales grew by 22% to AED 762. etc. Julphar is the first pharmaceutical manufacturing company in Arab Gulf States. Julphar III is a Oral ß-Lactam Plant dedicated facility for the manufacture of oral Penicillin products. 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. Skin. Imports of pharmaceutical products are generally duty-free. sachets. It is engaged in the manufacture of pharmaceutical products that address a range of therapeutic segments. Julphar has nine functional production facilities. one in Ecuador. Iraq. The Ministry of Health is responsible for licensing pharmaceutical companies. Gulf Inject was set up by a group of local and Gulf business interests in the Jebel Ali Free Zone. Lebanon. making RAK Ceramics’ one of the largest multinationals in the world manufacturing.
Source: http://rakceram.487 products registered in over 45 countries around the globe at the end of 2009. Respiratory System . According to the authorities. A public shareholding company based in the Emirate of Ras Al Khaimah. Sales CAGR reached 14% over the last 5 years. Local Anesthetics and Para-Medical Products. Immunosuppressant.com Available at: http://www. RAK Ceramics has overseas plants in China. Julphar – IV which is
68. Specialized in the production of intravenous solutions.0 million in 2009 over 2008. The Ra's al-Khaimah Emirate owns 25% of the capital of Julphar. UAE. mt. Julphar – II which is ß-Lactam Antibiotics & Sterile Dosage Forms. Currently. Julphar product range can be divided into the following major therapeutic segments: Anti-Infectives. It has been officially recognised as the world's largest ceramic tile manufacturer by the Ceramic World Reviews. UAE.500 pieces of sanitary ware per day. Pharmaceutical products
67. Nutrition and Blood.julphar.Trade Policy Review Page 86
66. Cardiovascular Systems. Julphar had 3. effervescent tablets and powders for suspensions (PPS). According to the authorities. Kuwait. although there are two companies in the free zones. The company exports to around 26 countries. only 7% of which are consumed locally.Musculoskeletal & Joint diseases. and one in Germany. most production takes places. The Ras Al Khaimah plants alone produce around 227. The manufacturing vessels are equipped with closed loop CIP and SIP Systems. Bangladesh. of tiles per day and over 11. both in the Customs territory and in the free zones.
70. 71. clients are turning to foreign contractors for these services. but foreign professionals are numerous. the market has been driven by large 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. In the 1975-00 period. designs are completed before contractors are asked to compete for the construction contract. Professions in construction are regulated at emirate level. bridges. This plant manufactures Liquid and Semi Solid Pharmaceutical Dosage forms. from concept to completion.
Construction services are not highly protected. As a result. The estimated cost of the projects ranges between US$45-50 billion41. golf courses. the UAE is facing shortages of contractors in certain specialized construction services. Julphar – IX is a Sterile Cephalosporin Powder Filling Plant which is dedicated to handle dry powder injection vials for cephalosporin products. metro lines. such as power generation stations.
73. It is estimated that half the number of flats sold in the city in 2004-05 were to international buyers and speculators39. the construction market was driven mainly by the traditional public sector customers such as utilities and ports.
With nearly US$100 billion of major projects under way in Dubai alone in October 2005. home of the Formula 1 Abu Dhabi Grand Prix. Project management contractors. Yas Island is 25 km2 island located between the coast and city of Abu Dhabi and Dubai.ae 41 Source: Yas Island : www. Traditionally. many foreign project contractors are active in the UAE.burjkhalifa. driven by low interest rates and accelerating with rising oil prices. mega malls.716 feet) and more than 160 stories. The UAE generally accepts internationally recognized standards and technical regulations. coordinate the process on behalf of their clients. At 828 metres (2. The other emirates do not grant freehold rights to foreigners. (5) (i) SERVICES Construction
69. Source: Burj Khalifa: www. Ferrari World Abu Dhabi. 20 September 2005. Burj Khalifa was inaugurated on January 4th 2010. and sewage treatment plants. Julphar – VIII is Sterile Powder Filling facility that handles the sterile dry powder injection vials. theme parks.
Burj Khalifa is the tallest construction building in the world. F1 racing circuits. These factors have helped to maintain construction prices at relatively low levels by international comparison.
The exceptionally fast pace of industrialization and economic development in the UAE has coincided with a global property boom. both local and foreign. apartments and villas It has first Ferrari theme park.
72. Yas Island a multi use real estate & Leisure projects. Julphar VI is a Liquid & Semi Solid Pharmaceutical Dosage Form. Its rapid advances have also been encouraged by the gradual opening of property acquisition to foreigners in Dubai. Burj Khalifa is the tallest free-standing structure in the world40. Julphar VII is Biotech Lab and Production Facility. Since 2000. The project includes hotels.yasisland. GCSF and interleukin. marine projects.ae
. The UAE’s existing services schedule does
Financial Times. A biotech product production capabilities which has the capacity to meet the demand of erythropoietin.
. Given the comparative advantage of the UAE in transport. the UAE’s Initial Offer in the Doha Round services negotiations sets out more specific commitments. 45 WTO document GATS/SC/121. which have also been among the leading subsectors attracting FDI. In addition. 2 April 1996. a strategic policy priority of the UAE is to become a major aviation and maritime transport hub between Europe and South-East Asia. Available at: blogspot. Legislative initiatives have addressed specific situations as illustrated by Federal law 51 of 2006 on human trafficking. Since 2005 the UAE has made great progress legislating and enforcing the rights of its labour force. including through a relaxation of restrictions on foreign majority
76. Workers are lodged in labour camps close to the construction sites. the main restrictions to competition. Unskilled construction labourers typically work extended hours. 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. 15-21 July 2005. The UAE has not included any transport sector in its 1994 Schedule of GATS Commitments45. Following a campaign by local doctors concerned about the increasing incidents of heatstroke. including from foreigners. 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. Sunday 25 September 2005. and the resulting availability of both skilled and unskilled foreign construction workers has facilitated the expansion of its property market. are through the dominant position of and control through state-owned enterprises. The governments of the emirates have invested vast resources in developing port and airport infrastructure. including under the Commercial Companies Law44. Furthermore a Collective Labour Dispute Committee in each labour jurisdiction has been established to include representatives of both labour and employers. the MOL issued an unprecedented "tough ruling" against a construction company following demonstrations for non-payment of wages43.com/.Trade Policy Review Page 88
indeed include commitments on constructing services. The UAE's market access and national treatment policy in the field of transport services may differ from one emirate to another. Sheik Mohammed Bin Rashid Al Maktoum issued in 2006 seek on the other hand to improve the lives and living conditions of guest workers. The Directives by HH.
http://emirateseconomist. It has largely succeeded in this.
Since the mid 1980s. 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.
75. for monthly salaries of US$200-250 and with frequent reports of delayed payment42. but the transport network has effectively become central to the entire region. 44 Federal Law No. The Emirate Economist. 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. Transport not only plays an important role in the economy of the UAE.
Middle-Eastern Economic Digest. In September 2005. albeit always on the basis of minority shareholdings. and the requirement for foreign commercial presence to be in the form of minority (49%) ownership. a substantial WTO offer in this area. In general.
77. The UAE's relatively open labour market. 8 of 1984 Concerning Commercial Companies.
repairs. The NTA Maritime Transport Sector is responsible for developing ship licensing system.
The growth of maritime transport in the UAE resulted largely from the development of Dubai's Jebel Ali Port.asp. in July
IMO online information. and sustain substantial growth in the transport subsector. The UAE's fleet comprises all ships registered in the UAE with a 51% ownership by UAE nationals. The United Arab Shipping Company (UASC) is the largest container carrier operating from the Middle East. This is designed to encourage local companies to register vessels under the UAE flag.
The Maritime Transport Sector is going through continual improvement since the establishment of the National Transport Authority as per Federal Law No. Foreign companies must obtain approval from the NTA in the form of a licence. It ranked 47th under the gross tonnage of the world merchant shipping registered on 31 December 2008. All ships operating in UAE territorial waters must be classed under one of the categories of the International Association of Classification Societies (IACS). and local ships must have IACS approval issued within five years. Available at: http://www. as well as compliance with international standards. In addition.
83.g. The port has allowed the development of major shipping and transhipment activities as well as shipbuilding. Crews working on ships servicing the territorial waters must have residency visas. The NTA is updating and amending the Marine Transport Commercial Law in order to liberalise marine trade and registration of foreign ships.United Arab Emirates Page 89
ownership. and cannot carry out cabotage on their own account.
82. a large and rapidly expanding deep seawater port infrastructure.imo. The regulation distinguishes three types of ships: foreign flag vessels calling at UAE ports. would consolidate the traditionally liberal UAE transport policy. and the total commercial payload reached approximately 4. 1 (2006). and maintenance services. The NTA is in charge of all security. The commercial fleet consisted of 622 ships of 100GT of above flying UAE flag . and foreign flag vessels operating in UAE territorial waters. maritime enterprise and integrated transportation system to achieve the goals set out in Abu Dhabi Vision 2030.
81. national flag vessels.
The regulation of shipping services is shared between the NTA and the respective Transport port Authorities of each Emirate. Flag vessels must have a contract with one of the federal or local governments to operate in the UAE waters. foreign ships must not be older than 25 years. and communications aspects of marine navigation. 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. Dubai Maritime City. The UAE has been a member of the International Maritime Organization (IMO) since 197446. (b) Maritime transport services
78.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. The NTA regulates all those operating in UAE waters The Abu Dhabi . issuing of navigational licenses and levying fees in accordance with the UAE commercial maritime law (26) 1981.5 million tons. while promoting the smooth operation of Abu Dhabi’s civilian ports. seaworthiness. Palm Island). UASC was established jointly by the six GCC states. mainly in the context of offshore projects (e.
based in Jebel Ali Free Zone since 2002. a new regulator – the Dubai Ports and Jebel Ali Free Zone Authority – was created to oversee the regulation of Dubai's ports. loading. Available at: http://www. The projected storage capacity for the next 10 years is in the order of 95 million TIUS.
The UAE shipping agency and freight forwarding market comprises numerous companies. Most port handling services. including crane lifting.ae/tariff/general conditions.8 million TIUS arriving.dpworld. Etisalat and Delma Co-operative Society. and Fujairah. play a pivotal role in UAE trade. Dubai Ports Authority (DPA) managed them until September 2005. and handled 5. discharging. is the world's largest man-made port. Information on port dues and other fees and taxes for the Dubai ports is available electronically48. stowage. Available at: http://www. Dubai International Port container storage capacity had reached 46.
. The UAE ranks among the top five locations in the world for bunkering and other ship handling. asp?NewsID=25. In 2008. storage and warehousing.
84. GAC is entirely private. port services are regulated at emirate level. The UAE's ports export mainly oil and gas. Ras al Khaima.
See DP World online information. and Port Zayed online information. 9. Asia including China. which handles primarily bulk cargo and industrial material for Jebel Ali Free Zone. These include ADNATCO. and increasingly in regional and world trade.923 million containers. It handles enquiries. In addition. appear to be supplied exclusively by the emirates' port authorities. As noted. The company also supplies spare parts and various services to vessels worldwide.Trade Policy Review Page 90
1976. stevedoring.pdf.htm. the Dubai Ports Authority and Dubai Ports International merged into a single new global port operator – DP World.15 million "twenty feet equivalent unit" (TEU) containers in 2003. the Dubai Government. Dubai World had processed well over 8. The UAE is host to one of the world's largest shipping agencies. mainly from the Americas. the world's seventh largest throughput. Available at: http://www. A number of other domestic shipping companies are partly or fully owned by the Federal Government or by the governments of the emirates. DP World is fully owned by the Emirate of Dubai.com/fullnews.96%. cargo clearance.ae/Services/ Tariff. Dubai's Jebel Ali Port.dpa. The UAE has 15 large commercial ports (including oil terminals) with a total capacity of over 70 million tonnes. but also raw materials and finished goods. Dubai World was ranked 8th in the world in the sphere of port operations. Ajman. and the Indian subcontinent. Registered users can view and pay duties online. before a record growth of 25% in 2004. and has successfully acquired the nationally renowned port operators such as P&O and CSX. Dubai's ports. The share owned by the UAE Federal Government is 10. online47. as well as manifest and cargo handling services.portzayed. and nine other Arab countries have 9. 48 See in particular "Dubai Port Tariff". Imports consist of intermediary and consumer goods. as well as pilotage. and National Marine Dredging Company (all three owned by the Federal Government).1%.gov. Dubai Ports is regarded as the seventh largest international port in terms of size and capacity. In 2006.
85. and its ship-repair facilities and ship-building capacity are developing rapidly. owned by the Abu Dhabi Government. East Africa. India and the middle East. On 28 September 2005.1%. with over 100 berths. The country owns well over 30 ports and commercial free trade zones in Jabal Ali. Sharjah. Gulf Agency Company (GAC).
86.1% each). and Arab Maritime Petroleum Transport Company (in which the Abu Dhabi Government owns 9.
87.co. as well as a significant re-export trade within the Gulf region. National Petroleum Construction Company.
On the East coast Khorfokan port container storage capacity had increased by 8% in 2007 with well over 20 million containers.United Arab Emirates Page 91
Large outflows of FDI have taken place in port services. The Khalifa Industrial Zone will be developed in as two Areas (A and B). In December 2004. Hong Kong's Asia Container Terminals. DP World which has a management agreement with Abu Dhabi Terminals is the defacto operator of Port Zayed. and the growing domestic expertise in the area of port management. reflecting both the availability of domestic financial resources.
88. offering 100% foreign ownership to companies and individuals. Khorfokan was designated as a specialist container storage facility and was ranked as the 120th in the world. Zirku and Mubarraz islands handle the bulk of the UAE's crude oil and gas exports. Khorfokan port is
. dry. Apart from the same. barges and service crafts and the under construction Khalifa Port and Industrial Zone (KPIZ) comprise the major ports servicing the Emirate of Abu Dhabi. Umm al-Nar.
92. including the operations of Busan's New Port in Korea. This move will increase capacity of the port sector as well as release urban land for re-development. Port Zayed will then be redeveloped into a residential and commercial area. as well as port terminals in Australia and Germany. DPI took over the management of the Djibouti airport in 2003. The port sector in Abu Dhabi is undergoing massive change. increasing the overall throughput of the port to over 22 million TEUs and 35 million tonnes of general. Four additional development phases have been planned for.
The marine terminals of Jebel Dhanna and Ruwais. tugs. In late 2005. Dubai Ports International (now DP World) had recently made large investments in other ports. Mussafah Port located in the heart of the industrial precinct of Abu Dhabi. break.
90. The Port will be completed in phases. Das Island. DP World entered into negotiations with a view to purchasing P&O of the United Kingdom. KPIZ will replace Abu Dhabi's largest existing port. The planned changes are expected to be completed by 2013.
The powers. 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.
91. Free port located adjacent to Port Zayed servicing smaller vessels. The UAE western coast of Sharjah houses Khlaid Port and Al Hamariah Port. DPI purchased CSX World terminals' international portfolio. DP World runs the port of Constantza in Romania. Dubai Ports operates well over 49 international ports worldwide in 31 countries. The first phase of Khalifa Port is expected to be completed in late 2010 when the first vessel is expected to visit Khalifa Port. and liquid bulk cargo by 2028. functions and responsibility for regulating and operating the Ports in Abu Dhabi.2 km of quay walls able to accommodate a throughput of over 2 million TEUs and over 6 million tonnes of general cargo. The Stage 1A development will include over 3. which is a joint venture company owned by ADPC and Mubadala of Abu Dhabi. 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. All port terminal operations in Abu Dhabi are presently the responsibility of Abu Dhabi Terminals. It also bid successfully to build and operate the planned international container transhipment terminal on Vallarpadam Island in India. In January 2005. The overall project is expected to be completed in 2028 at an estimated total project cost of US$ 24 Billion. It will comprise of industrial zones. DPI announced agreements to take over operational management of Abu Dhabi and Fujairah ports. Port Zayed is the main gateway for container and general cargo vessels in Abu Dhabi. including abroad. with the planned closure of Port Zayad and construction of a new port and industrial zone called Port Khalifa. In March 2011. Mina Zayed by 2013. They are owned and operated by the Abu Dhabi Petroleum Ports Operating Company (ADPPOC). 89. Area A of Khalifa Industrial Zone is expected to be completed.
Sharjah's ports are under the Sharjah Port Authority (Sharjah's Department of Seaports and Customs). Ajman Port. maintenance services are outsourced to companies such as Arab Heavy Industries Company.ae.5m for receiving ships with 8000 containers capacity. in respect of scheduled international air services. waste paper. which also services Ajman Free Zone situated in the port. traffic coming from or destined for the home State of the carrier) ("Freedoms of Air". this partly explains the relatively large number of UAE international airports. Most other activities including bunkering.fujairahport. In 2004. via the home State of the carrier. 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. UAE airlines have also exploited
96. a number expected to double by 2013 Some 20 airlines were in operation in late 200551.htm# Emirates. Typically. Available at: http://www. continue to be managed by the Fujairah Port under a 1982 Ordinance50.htm). The six UAE international airports are becoming leading regional aviation hubs. and marine services Air transport services
Each emirate is fully responsible for developing its civil aviation.1 million tonnes in 2002 to 8. of transporting. The UAE's aviation industry has advanced sizeably over the past few years. Available at: http://www. As noted. Moreover. as well as by the launch of five new airlines.9 million tonnes in 2004. fuelled by considerable airport expansion. The Ajman Port Authority has also set up two dry docks to provide maintenance and repair services. Port of Fujairah Ordinance 1982. In 1976. much of it in the form of bunker fuel. Available at: http://www. connecting Europe and South-East Asia. 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. marble.airlinedata. the world's largest aircraft order was made by a UAE airline in 2003.com/area6. Port operations are governed by the Port Act of 1977. experts in the field of structural steel fabrication. Gulftainer also owns one of the largest heavy transport fleets in the United Arab Emirates and a container repair company. Fujairah Port's container activity is operated and managed by DPI (since March 2005). has eight berths designed to handle both container and general cargoes. It will have special facilities to handle cargoes of chemicals. serving routes between European and Asian cities with a stopover in a UAE city52.
Cement. the Authority established the company Gulftainer to manage and operate the container terminals in Port Khalid and Khorfakkan. Bulk cargo tonnage of ships calling at Fujairah Port rose from 6. traffic moving between two other States.
95. in the territory of the first State.int/icao/en/trivia/freedoms_air. The UAE civil aircraft registry contained about 225 aircraft in 2009. and manage its container terminal at Port Saqr for 21 years. and gravel from nearby quarries and factories are the main products shipped from Port Saqr in Ra's al-Khaimah. Fujairah is now one of the world's three largest bunkering centres49. operate. tank and ship building. and large purchases have been made by another. 51 See "Air Carriers of the Middle East".
93.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. and fodder. e. bilateral air service agreements have been concluded with countries in Europe and Asia and UAE airlines have subsequently exploit sixth freedom rights.
.g. Ra's al-Khaimah Port Authority awarded the Kuwaiti firm KGL a US$45 million contract to build. However. Plans are under way to deepen the port.
With Singapore and Rotterdam. 52 The sixth freedom right is defined by ICAO as the right.icao.
notably with major U. It operates from Dubai Airport. Maximus Airlines. Both of Emirates Airline and Etihad Airlines operate around 96 flights from UAE to Australia weekly. The new building is located next to Terminal 1 and has increased the airport’s overall annual passenger capacity to 12 million passengers. certain UAE companies are now among the dominant airlines on the New Zealand-Australia route. As a result. worth US$58 billion bringing the order book to 155 aircraft. Emirates airline is not a member of the three major international airline alliances. granted by one State to another State to put down and take on. in the territory of the first State. is responsible for the economic regulation and strategic direction of air transport in the emirate and for the oversight of safety and security. November 2004.
98. such as Airlanka in 1998. The terminal is dedicated to Etihad
The fifth freedom is defined as "the right or privilege. in respect of scheduled international air services.
99. Dubai Airports officially opened DWC for cargo operations welcoming inaugural flights operated by Rus Aviation.int/ index. Etihad Airways. 55 Source: Gulf News : Al Maktoum International airport begins operations 56 Airline Business. established in 2006. to strengthen the growth of the Aviation Sector replacing the Department of Civil Aviation. taking their total firm orders for the iconic flagship of the 21st century to 90 aircraft. moved more than 660.g. Emirates SkyCargo. Emirates airline has also purchased large shares in foreign air companies. 100. but operates in code-share on a number of routes.World Central-Al Maktoum International (DWC) airport received aerodrome certification on from the General Civil Aviation Authority.37 billion profit. and declared a record US$ 1. The UAE is an ICAO Contracting State54. On completion it will have a capacity of 120 million passengers.7 million passengers in 2008. Major airlines and transportation services.
The Department of Transport (Aviation Division) (DoT). was the world's fastest-growing intercontinental airline. Dubai – Sydney – Auckland).html. The key stakeholders and operators are Abu Dhabi Airports Company (ADAC). Etihed Airways and Emirates are members of the International Air Transport Association (IATA).000 tonnes of freight in 2003-04.
A new body entitled “Dubai Civil Aviation Authority” was created by Dubai ruler decree No 21 in 2007. Abu Dhabi Aircraft Technologies (ADAT). Phase 1 of the Al Maktoum International Airport was completed55. and since its creation in 1985 has grown at an annual average of over 20%. Available at : http://www. traffic coming from or destined to a third State (e.United Arab Emirates Page 93
fifth freedom rights on routes where available53. and the 17th largest in terms of cargo tonnage56. Midex Airlines and Royal Jet. On June 2010. With 53 A380-800s on order (outstanding).icao. Emirates airline carried over 22.
97. Separate entities comprising Dubai Airports and Dubai Air Navigation Services were also established for managing airports and Air Traffic operations. airlines. It operates services to 100 cities in 64 countries.S. it received the first A380 in July 2007.
Emirates airline. one of the world's five most profitable. to be completed by 2020. In June 2010 Emirates Airlines ordered a further 32 A380s from Airbus. the cargo division of Emirates airline. The airline also announced the largest order in commercial aviation history at the 2007 Dubai Air Show.5 billion. Abu Dhabi Airports Company (ADAC) opened the new Terminal 3 Abu Dhabi International Airport in the first quarter of 2009. which is fully owned by the Government of Dubai. The order has a list price of US$ 11. Skyline and Aerospace Consortium. 54 International Civil Aviation Organization online information. A new airport Al Maktoum International is being constructed at Jabel Ali.
There are no preferences for GCC carriers or companies in air transport.
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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
United Arab Emirates Page 95
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.
currency exchange) are generally outsourced.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. ADTA operates several narrow and wide body hangars.
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. Abu Dhabi Aircraft Technologies is a member of Mubadala Development Company. This was the first airport in the country. After the expansion Sharjah Airport is expected to quadruple its capacity. Occupying a built area of over four million square metres. 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. Abu Dhabi Aircraft Technologies (ADTA). fire and crash rescue. The company’s main facilities and operations are to the south-west of Abu Dhabi International Airport. Non-aeronautical activities (e.g. The Free Zone is an important part of the development and expansion of the airport. ADTA is the Middle East's leading independent provider of maintenance. car rentals. formerly known as Gulf Aircraft Maintenance Company (GAMCO). 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. Passenger traffic jumped by 37% to 2. It is a popular trans-shipment point. Sharjah International Airport is a financially independent body. 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. repair & overhaul with an international client portfolio stretching from Iceland in the west to Sri Lanka in the east.000m2 adjacent to Terminal 3. ADAC is moving ahead with plans to create a free trade zone in the vicinity of Abu Dhabi Airport.23 million in the first nine months of 2006 compared with the same perion in 2005. duty-free shops. Sharjah International airport is Middle East region’s leading air transportation gateway.000lb thrust Engine Test Cell. as well as certain aeronautical services such as maintenance operations (carried out by GAMCO . 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. 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.
115. Sharjah Airport also has a major expansion programme. Following an Amiri Decree. the Free Zone will offer investors an impressive package of world-class facilities and services.see below). a
116. run autonomously by the Sharjah Airport Authority. including A380. 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. covering approximately 30. as well as a 100. especially for intermodal cargo arriving by sea and air-freighted onwards. occupying 200. test laboratories and bonded storage. located in the heart of Abu Dhabi.000m2 and are supported by an extensive range of component and engine overhaul and repair workshops.
. Al Bateen Airport. is a major provider of aviation technical services for the commercial and military aviation industries. Today.
2 of 2009. and eventually.
The Federal Government issued Law no.com/
. as any other company in the UAE. The railway will be built to link the principal centres of population and industry of the UAE.Trade Policy Review Page 98
strategic investment and development vehicle established and wholly-owned by the government of the Emirate of Abu Dhabi. The railway will connect the UAE to Saudi Arabia via Ghweifat city in the West and Oman via Al Ain in the East. opening up new trade corridors and journey opportunities. The UAE has a high quality highway network comprised of about 4. This will bring diverse communities together and open up areas that were previously more difficult to reach. to oversee a planned national rail system64. Once complete. The Union Railway covers a network of up to 1. it will redefine logistics and transport in the region. must be majority-owned by UAE nationals. Roads and other public transport. 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. through a safe.
The UAE Land Transport Sector has been going through a transition period since the issue of the Federal Law No. journey times will be substantially reduced. The highway network also connects UAE to the neighbouring countries Saudi Arabia and Sultanate of Oman. Road transport companies generally employ foreign drivers. The route will initially cater to freight transport. Built to international standards.500 km stretching across all seven Emirates. though passenger services will be added in the near term. (d) Road transport
117. article 4 regarding the establishment of the National Transport Authority. construction and operation of the UAE’s national railway.(1) of 2006. Union Railway’s state of the art network will enable the rapid transport of passengers and freight. efficient.
118. as well as to form a vital part of the planned GCC railway network. including inter-emirate roads are regulated by the National Transport Authority and each Emirates Transport entity. with a capitalisation of Dh1 billion (US$272m). providing as a safe. efficient and sustainable mode of transport that will change everyday lives.(UAE Railway Map Figure 1)
119. sustainable network that links all corners of the UAE. the UAE to the wider GCC. This extensive investment will support the Government’s continued mission to build a diversified economy and continued economic growth. All road transport companies.000 Km asphaltpaved roads. which connect all main cities and population centres of the country. By ensuring frequent and reliable services. establishing Union Railway Company with a mandate to manage the development.
Figure 1 UAE Railway Map
The Emirate of Abu Dhabi established a Department of Transport in 2006 to oversee its maritime and aviation sectors and.
A study is underway to build a 700 km-long railway system to link Abu Dhabi and Dubai. and as such. Reem Island.
The work on Dubai Metro started on July 2005 and it was launched on September 2009. with 196% active subscribers. 29 stations will be operating on the Red Line with 24 elevated. are not deemed to be a deterrent to subscription applications. Capital City District. Decision-making.1% at the end of 2005. By February 2010. The retail prices for local fixed line services are among the lowest in the region and are quite affordable. which includes the construction of roads and a Light Rail65. 123.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. representing a 131% increase.eu
. This project is part of Abu Dhabi’s Department of Transport plan to invest USD 82 billion in the transport network of Abu Dhabi. Saadiyat Island. Telecommunications
124.1 million subscribers. Zayed Sports City and ADNEC. Yas Island. the penetration rate was 32% of inhabitants at the end of 2008. With respect to fixed line subscribers. 121. Accordingly. in 2008. Each monorail station is expected to handle 1. The telecommunications industry as a whole has evidenced substantial total growth in recent years. Abu Dhabi International Airport and Masdar. DP World and Dubai airport are under the authority of the Emirate of Dubai. A National Committee for Port Security is responsible for the security of the main ports. Most of the proposed network is expected to be underground. 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. This raises important coordination issues. including operational management. It is envisaged that the GCC railway will become operational by 2016. with the northern Emirates. extended the Department’s responsibilities to include land transport.5 billion and in excess of USD 8.1 billion in 2008. given the presence of two world-class airports and two major sea ports within 150 km.8). The monorail track (which is part of the metro project) is expected to be 31 Km long.000 commuters. the UAE has achieved the highest mobile penetration rate in the world. Emerald Gateway. create job opportunities and serve as a magnet for foreign investment.
Source : http://abu-dhabi-metro. is under the responsibility of the airport and port authorities of each emirate. As of 2008.it cost $ 7. The project would add to the UAE competitive edge.
120.6 billion66. 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. The estimated number of Internet users has increased by 121% from 2005 reaching 1. The metro will mainly connect the proposed Central Business District with Sowwah Island. which is a slight increase from the 30. in 2005 the total revenues of the sector were USD 3. the UAE section is roughly 684km which is 32% of the entire GCC route of 2117km . 4 underground and 1 at grade (street level).
The UAE has reached one of the highest telephone penetration rates in the world in recent years (Table IV.
The GCC Railway link feasibility study has been completed.com/ Source: http://dubaimetro.
73 1.73 2006 30.49 0.1 free 1.6725 = US$1.49 0. mobile..086 54.12 1.772 240.1 8. Consist of dial-up. This refers to the number of shared web hosting subscribers. mainly spurred by the growth of cell phone services. Currently.73 1. Etisalat and Telecommunication Regulatory Authority.
Important institutional and regulatory changes have taken place. Consist of dial-up and Al Shamil users. Etisalat's profits reached USD 2.73 2007 30.357 129.1482 640. 29.4 106. etc) are fully operational compared to the 2005 situation whereby the UAE telecommunication market was a monopoly.27 2005 30.1 free 1.5 4.12 1.646 56.4 166. internet.73 773.49 0.0 101.5 4. The UAE’s present WTO commitments with respect to foreign ownership disqualify any international interest from acquiring more than 49% of either existing operator or any future entrant.27
524. Accordingly. Includes the 50% royalty to the Federal Government.49 0.040 54. Connection charge includes standard telephone set.5 10. two full service providers (fixed net.01 4.763 54.73 1.1 110.413 438 363.8 Telecommunications indicators.1 Free 1.3 127.759 49.4 10695 49.210 379. 2004-08 2004 Telephone penetration Telephone lines per 100 habitants (%) Mobile subscribers per 100 habitants (%) Total full-time staff in telecommunication services Price indicators (US$) Telephone connection chargea Monthly subscription chargeb Cost of 3.27
442. as the telecommunications sector in the UAE appears to be opening on a gradual basis.1 427.2 68.800 0.36 billion in 2008. landing station. mobile or internet licenses are presently available. 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.
Table IV.8 16. Exchange rate: Dh 3.3 25.7 47. In this regard.620 0. It is important to note that both operators are partially owned by the UAE government.596 0. Business One.1 Free 1.27
.4 91.104 551.27
1.000 527.6 10. a b c d e f g Note: Source: Not available.925 0. Etisalat's Internet café brand.320 0.12 2008 32 196 11. Subscription charged quarterly at Dh 45 a quarter.372 0. notwithstanding the fact that no additional fixed net.01 4.195 1. 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. and leased line users.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) .Trade Policy Review Page 100
399.5 4.155.1 Free 1. Both operators are responsible for paying the Federal Government a royalty of 50% of their total net profits.1 10. This is the number of Al Mawrood.1 520.49 0.
several disputes have been referred to the TRA for adjudication which the TRA has responded to in relatively short periods. 69 Source: DU : http://www. Since the issuance of the IDRP. standards and costs applicable to radio spectrum.du. broadband connectivity and IPTV services to individuals. 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. 68 Information on the TRA is available at: http://www/tra/ae/main.68 Since it’s establishment the UAE government has issued Federal Law No. for establishing and implementing standards for type approval of equipment.
Federal Law by Decree No. With respect to the TRA’s maintenance of a suitably competitive environment. Du offer fixed and mobile telephony.
126. (3) of 2004. if necessary penalize anti-competitive behaviour in the telecommunications sector. 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. Du is the second mobile operator in the UAE. by means of the Federal Law by Decree 3/2003 and the Executive Order No. 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. distort or prevent competition.United Arab Emirates Page 101
Telecommunications services are among the few activities effectively supervised at federal level.
Providers of mobile telecommunications services are required to ensure portability of numbers. and for national numbering policy. With respect to the promotion of efficient usage of national spectrum. thereby decreasing regulatory uncertainty in the industry. 3 of 2003 Regarding the Organisation of the Telecommunications Sector. homes and businesses.ae
. The only universal service obligation (USO) explicitly mentioned in the Executive Order is the provision of free-of-charge calls to emergency services.67 A new Telecommunications Regulatory Authority (TRA) began operations in November 2004.
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. It has 3. the TRA has issued a set of regulations for radio spectrum.
128. and its Executive order are available at: http://www. and freedom of choice in the selection of suppliers of national and international connections. issued on 3 April 2004. 127. and carrier services for businesses. DU employs around 2000 staff 69. Based on this authority the TRA issued a competition regime designed to prevent and.tra.ae/main.
129. It is also responsible for the management of the frequency spectrum. 130.
In order to adjudicate interconnection disputes. 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. the TRA has consistently taken positions which are consistent with international best practice. In its decisions. 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. 5 of 2008. The TRA also has full authority on interconnection and price regulation. in accordance with the powers and obligations in the telecom law.5 million active users as of 2009. In this regard. Additionally the TRA has standardized the application process for spectrum allocations and made the relevant forms readily available for the public.html.
The TRA has full authority for issuing and implementing regulations for telecom services and all licensed operators.
the number of visitors to the UAE has grown from 1 to 6 million annually. operation and management of a satellite communications network and provision of satellite communications services in the UAE70. and other transport infrastructure. In 2002. representing an annual growth of three times the world tourism growth rate over the same period.
133. tennis tournaments.8 billion (US$4. prestigious horse races. This policy has been successful. Tourism remains the largest industry in Dubai.
Over the last decade. accounting for a large share (12%) of GDP in 2005. making it possible to travel to the UAE easily.
Source: http://www.ae Source For data on tourism revenues Ministry of Economy. 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.
Some three quarters of tourism revenues and tourist arrivals relate to the Emirate of Dubai. and large and varied sports and leisure projects that respond to wealthy consumers' preferences. Spending by inbound international visitors is expected to total AED6. It is estimated that by 2015 annual visits to the UAE will amount to 14 million.3 billion). large investment in hotels. and other highly-prized sports events. and tourism is among the fastest growing subsectors in the country. The growth rate even accelerated during 2000-04 despite the difficult geopolitical environment. the authorities have targeted tourism as one of the main sources of future growth in the UAE. 136.4 billion (US$1.yahsat. this share has been rising71..
The TRA has issued a national plan on the management of internet networks.8 billion) in 2005. such as the shopping festival. car rallies. Tourism services
Over the past decade.2 per cent to AED15. Dubai was ranked as the fastest growing tourist destination by the World Tourism Organisation. To this end.
Telecommunications Regulatory Authority (TRA) awarded Al Yah Satellite Communications Company (Yahsat) a ten-year satellite services license for the installation.
. Neither the war in Iraq nor the regional political instability have affected the sector's performance. this result is expected to grow by 7. Over the next decade.
132. In 2009 the TRA plans to issue 4 additional licenses authorizing GMPCS and PAMR services as well as mobile television and satellite communications. The TRA is currently preparing to expand the UAE telecommunication market further through the eventual admission of more providers of telecommunications services. with 31% growth in the number of visitors.Trade Policy Review Page 102
131. Among the possible explanations for this impressive performance are: large public investment in airports. Internet service providers require a TRA licence that specifies the conditions and standards for their activities.
and development of tourism in Dubai72. In March 2006 the Land Registration Law of the Emirate of Dubai No. cultural and leisure destination. Dubai Tourism and Commerce Marketing (DTCM) is responsible for the promotion.
Box IV.0 21. 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.000 in 2004 to 1.9 Hotel indicators. sustainable tourism destination. individual and foreign investors have made substantial investments in the development of tourism infrastructure and events in the Emirate. globally recognized.7 2. the Government of Dubai has made very large-scale investments in tourism development projects (Box IV.2 5.6725 = US$1.
Abu Dhabi’s Government has significantly up weighted its commitment to the development of tourism in its 2030 Policy Vision with the goal of realising the Emirates potential for being a world class tourism destination.0 3. planning.dubaitourism. Dubai's government has been particularly instrumental in developing tourism. It is perhaps best known for its Cultural District – which will be home to the world’s single largest concentration of premier cultural institutions.4
Exchange rate Dh 3. These include the Sheikh Zayed National Museum. 138.0 229 39 29
2000 265 49 39 714. Dubai is the only emirate to allow property ownership by foreigners in certain cases. GCC and non-GCC nationals in certain areas designated by the Ruler. In particular.asp
Source: Ministry of Economy.ae/about/default. and 2008 (Number of US$ million) AVERAGE ANNUAL PERCENTAGE CHANGE OVER THE PERIOD 1995-00 2000-03 3. 2000.9 4.gov.5 million in 2008.2
2008 271 90 43 1.8 57. while enriching the lives of the Abu Dhabi community and visitors alike ”. To date the growth generated has been impressive with hotel guests increasing from 959.5 1’549 111.uae.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. Issues: Hotels.8 1.7 6.3 184. In addition. consistent pro-business policies have combined with an investor-friendly environment.093.8 234.United Arab Emirates Page 103
Table IV. The Government.1).3 15.1 12. 1995.htm
Tourism services are regulated at the emirate level.ae/mop/E_home. Hotel revenues also increased by 288% in the same period.8 0.1 62.//2006 “The Dubai Property Law” was enacted which clarified and confirmed the freehold ownership of land by UAE. Available at: http://www.
137. supervision. 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). as a long-term alternative to reliance on oil revenues. For example.0 4. http://www.4
1995 NUMBER OF HOTELS DUBAI ABU DHABI OTHER EMIRATES HOTEL REVENUES DUBAI ABU DHABI OTHER EMIRATES Note: 389. the Dubai Department of Tourism and Commerce Marketing online information.
Again. According to the IMF. Saadiyat is also progressing other developments – the Saadiyat Beach Golf Course. on which construction began in 2003. in line with TDIC’s hallmark approach to teaming up with world-class partners. began providing specialized medical and healthcare services with the help of partners and investors from regional and international clinics. 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. back-office operations. These homes are in carefully master planned neighbourhoods and will deliver a residence with a difference with great golf course and sea views. and microchips. and Central Asia. a newly created free zone. an international exchange that will trade a full range of financial instruments. and judiciary. called Capital Dubai. A turnover of US$1 billion was expected in 2005. close to luxurious beachfront resorts and all their facilities and within a short distance of the Cultural District
Box IV. which allow emirates to form financial free zones. the golfing legend Gary Player was commissioned to design this course. 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. the Dubai Financial Services Authority (DFSA). media. and the DIFX. Each island will have around 60 km of coastline. While fast shaping up as a global cultural hub. Believing that the buildings of these world-class institutions will be as much a visitor draw as the contents. East Africa. The islands will house residential homes and hotels. launching Dubai’s quest to become a regional hub for a host of strategic sectors. Dubai Healthcare City. the opportunity will be there for financial innovations to exploit regulatory arbitrage and produce shifts of funds between the DIFC and the UAE. TDIC has also. healthcare. asset management. Jean Nouvel. however. have committed to listing issues on the DIFX. In 2004. since both the operating and regulatory arms of the DIFC are subordinate to the Government of Dubai. Islamic finance. we engaged architectural luminaries to design their concepts – with commissions going to Lord Norman Foster. finance. 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. given the currency peg between the dirham and the dollar. Operations reportedly began in September 2005 with about 20-25 firms. is a by-product of the Jebel Ali harbour expansion. including institutional and investment banking. Banking operations in the DIFC are confined to institutional wholesale banking. for instance. loss of monetary control arising from the leakage of funds between the sectors is not a major issue. independent of the civil and commercial (but not criminal) laws of the UAE and of the emirates. including the World Bank. a performing arts centre and maritime museum. a dollar-based financial free zone designed to mirror many aspects of the London Euromarkets. The DIFC will encompass a comprehensive set of international financial functions. the governance structure holds the potential for conflicts of interest. Frank Gehry.Trade Policy Review Page 104
Guggenheim Abu Dhabi Museum. The DIFC is intended to be segregated from the domestic financial sector. This environmentally friendly course. The DIFC is to be regulated by separate enabling laws and a separate regulator. both at the emirate level. The DIFC is located in a multi-billion dollar complex of modern structures. The US$3 billion Palm Island project for the construction of two artificial. Infrastructure work
. The project targets customers from the GCC. entered the real estate sector with the sale of homes in the first phase of Saadiyat Beach. as well as entertainment and retail outlets. The model was subsequently replicated for.2: Selected projects in Dubai In October 2000. Dubai Internet City opened as a technology free-zone. As noted by the IMF. inter alia. the Louvre Abu Dhabi. is an 18 hole grass championship course – the only ‘ocean’ course in the Arabian Gulf. the Indian subcontinent. A number of major international firms have announced plans to participate and some key bond issuers. palm-shaped islands off Dubai's coast. Zaha Hadid and Tadao Ando respectively. both deposit taking and dealing in dirham are prohibited. insurance and re-insurance.
In 2004. Available at: http://www.com/knowledge/articles/new-uae-insurance-law. and financial intermediation services (Box IV.ae.99 billion in 2007. there are plans to build a similar group of 200 artificial islands in the shape of the world map. banking. sport.com. Value added in the insurance subsector corresponds to about 1. Financing is mostly from the private sector. 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.dhcc. Insurance services
141.51% in 199674. Dubai International Financial Centre online information. covering initial infrastructure like road works and utility provision.dubailand. as well as the only indoor skiing centre in the Gulf region.
139. i. "Dubailand: Investment opportunities". up from 1.
Banking and financial intermediation services are regulated at federal level by the Central Bank of the UAE. and IMF (2004). Dubailand is one of the world's largest self-contained tourism projects. various issues.2).swissre.
Total insurance expenditure in the UAE. insurance brokers. as a share of total world expenditure. Dubai Holding was established as a Dubai government-owned organization charged with running some of the emirate’s major ventures.ae.65% of GDP. The main construction phase will be completed by 2010. This represents average annual growth of 12% (in nominal terms) relative to the value in 1996. in early 2005.clydeco.ae. Dubai Snow World. the Government of Dubai launched the Dubai International Financial Centre. Available at: http://wwwdifc. consumption abroad. insurance services are also regulated at federal level under the authority of the Ministry of Economy and Planning. Per capita insurance expenditure was US$350 in 2004. Other projects include the construction of the world's first luxury underwater hotel. offering leisure. whose insurance section has until now been tasked with the responsibility of regulation of this sector73. Dubai Internet City.
. which will include having responsibility for the licensing and supervision of all insurance companies.cfm Swiss Re. The Insurance Commission replaces the UAE’s Ministry of Economy. Financial services
140. domestic and foreign. In addition.oryxrealestate. Available at http://www.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. The launch phase. Sigma. Available at: http://www. insurance consultants operating in the UAE. the year of the UAE's WTO accession.
Under the GATS. of which US$291 on non-life insurance and US$60 on life insurance. the UAE has scheduled commitments on the provision of hotel and restaurant services through modes 1 to 3. cross-border supply. Oryx Real Estate online information.United Arab Emirates Page 105
on the first island was completed in 2004. http://www. insurance agents. will extend from 2004 to 2006. With a total investment of almost US$6 billion and an assigned space of 4 billion square feet. as measured by the Insurance Authority in terms of total insurance value was USD 3. However. and commercial presence. and Jumeirah Beach Residence. offering insurance. The Insurance Commission regulates the sector . such as loss adjusters and actuaries. Available at: http://www. They include Dubailand. Expenditure.05%. increased to 0.e. along with other experts in the insurance service industry. and entertainment attractions. retail. In addition. The figures are relatively modest given the country's high
Source: Clyde & Co.com/.
Sources: Dubai Health Care City online information.
gov. The UAE made no specific commitments in its GATS Schedule regarding insurance services. for which commercial presence is not required: UAE insurance companies can reinsure their risks from international reinsurance markets. and carry out the full range of insurance business (Table IV. 51 insurance companies were licensed in the UAE. Federal Insurance Law No.Trade Policy Review Page 106
per capita income. There are also 21 UAE insurance agents (only UAE citizens can be insurance agents). 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.ae
144. the Decision specifies economic needs criteria. rising to 25% of the staff and at least 12 persons in the fourth year"). particularly in the life insurance business75. Ministerial Decision No. In addition.
Table IV. 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.
145. 6 of 2007. This does not apply to reinsurance services. life policies still account for only a small proportion of overall business. 174 national and 10 foreign brokers. Most companies are based in Abu Dhabi or Dubai. From 1978 to 2004.
. and 67 survey and damage assessment experts. Representative offices cannot engage in business or act as agents. 333 issued by the MOE on 25 November 2004 changed the conditions of licensing for foreign insurance companies. The maximum foreign ownership of domestic insurance companies allowed by law is 25%. 9 of 1984 is the main law covering the supply of insurance services. is subject to modifications but no data for 1996-2007 exists)
142. 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
In 2007. Cross-border supply of insurance services is not possible for companies located abroad. but are rapidly increasing. UAE-based companies can insure risks located abroad. All assets and risks in the UAE must be insured domestically (by domestic companies or by local branches of foreign companies.
Insurance Authority: www. In particular. and five foreign companies have been granted a licence as a branch.
Today the insurance sector in the UAE is regulated by an independent Insurance Authority established under law no. 18 insurance consultants and 11 actuaries.10). (This entire par. The authorities indicate that a few foreign companies have applied for licences under the new conditions since October 2004.10 Insurance premiums and claims paid. or by "agencies" (see below)). The oil subsector represents a large share of insurance business. 24 foreign companies were licensed.ia. half of which were foreign.
148. The manager of a foreign branch must be resident in the UAE. No taxes or stamp duty are levied at federal or emirate level on settlements from life and non-life insurance. The local authorities issue the trade license according to the above mentioned federal approvals.11). Combined life and non-life or noninsurance-related operations are not allowed. 2008. and up to September 2008.
150. the foreign branch must in addition. despite temporary setbacks that resulted from the global financial crisis: in September 2008. There are also 28 foreign banks (with 117 branches).
Local insurance companies wishing to establish in an emirate must first apply to the Insurance Authority for application approval.
The UAE has a large financial subsector relative to its size and population (Table IV. The gross non-performing loan (NPL) ratio was relatively high at 2. The UAE banking subsector is also generally sound and profitable. 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. then to Insurance Authority for licensing and registration. appoint a “local service agent”. the authorized manager and the senior employees of the insurance company must have suitable qualifications and experience in the insurance business. Bank loans have grown substantially. and are well distributed across industries. but considerable provisions for loan loss coverage (94. Both domestic companies and foreign branches must have minimum fully paid-up capital of Dh 50 million (US$13. At September 2008. there are 92 licensed representative offices of foreign banks and financial institutions. and this ratio exceeded 11. Eligible foreign insurance companies can either open a branch and appoint a local insurance agent or enter into an agency contract with a local insurance agent representing them. and Dh 4 million for life insurance with a local bank. The applicant must specify the expected over all volume of retention within the UAE market. his function is to assist the company according to the local service agency agreement. the UAE had 52 commercial banks. With 681 branches as at Sep. Profitability of banks remained strong in 2007.
147.5%) bring the net NPL ratio below 1%.
149.4% at end 2008. foreign companies may also supply the UAE market through the appointment of a local agent to represent them and market their products (as distinct from the local service agent employed by the branch).7 million). In addition.United Arab Emirates Page 107
146. There are 24 national banks (of which 8 are Islamic banks). then to the Securities & Commodities Authority (SCA) for Establishment procedure. The general manager.
. As noted.7% (tier 1 capital to assets ratio) for the subsector as a whole. with assets and deposits increasing at double digit rates on average between end 2005 and September 2008. all 52 banks operating in the country met the minimum 10% capital-assets ratio. on insurance companies. and must deposit Dh 6 million for non-life.
6 16. customer service units and automated branches Including a pay office and customer service units Excluding drivers.7 47.4 111.7 11.9 41. Every commercial bank.0 53. This law establishes five principal categories of institutions: commercial banks.Trade Policy Review Page 108
Table IV. 10 of 1980.6 104.11 Selected monetary and banking indicators. 2005-08 (US$ 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 21.8 8.2 194.5 137.2003 Not including inter-bank deposits.htm
The Emirates Banks Association. Not including loans to banks.4 17.
152.7 87.9 98. financial intermediaries.7 141.0 391 21 370 108 25 83
2006 28. 18 are foreign banks and one representative office.8 63.8 13. However most branches of EU and US banks have been given permission to exceed large exposures limits based on their global capital. or 10% of risk weighted assets in the UAE.0 530 22 508 108 27 81
September 2008 50. Available at: http://wwwcbuae.6 19.3 234.4 26. Available at: http://www.7 173. under Federal Law No.eba-ae.uae.1 212.ae/mop/UAE_figure/UAE_%2003. and guards. founded in 1982. investment banks. each of which must be licensed by the Central Bank.0 177.3 127.0 120.
Source: UAE Central Bank online information.1 5.0 260. messengers.1 24.6 189.0 48.9 77.7 393.0 241. which is not compulsory.1 87. Available at: http://www.0 18.2 13. financial establishments. 77 UAE Central Bank online information. Similar exemptions have also been given to some GCC banks.9 7. 153. and monetary intermediaries.9 452 21 431 106 25 81
2007 77.4 20. licensed and regulated by the Central Bank. Membership.gov.6 236. Including pay offices. aims to represent and defend the interests of its domestic and foreign member banks and to exchange information regionally and internationally76.com/ [19 September 2005]. including branches of foreign banks.7 27.5.9 million).1 27. and thus lifting the moratorium on the licensing of new foreign banks which was in effect since 1981.9 21.6 6.4 11.6 333.gov.6 15. whichever is greater.6 170.ae [19 September 2005].
76 Emirates Banks Association online information.4 23.1 16.1 63. must have a minimum paid-up capital of Dh 40 million (US$10.8 681 24 657 145 28 117
Including a restricted licence bank until 31.4 88. covered 42 banks at end 2008 of which 23 are national banks.8 22.2 27. Foreign banks are required to have the legal form of a branch.
Since 2007 – 2008 the Central Bank of the UAE has licensed three new foreign commercial banks.
Banking and financial intermediation services are regulated at federal level by the independent Central Bank of the UAE77.
However. although the rate of 20% applies in all emirates. Council of Ministers Decree No. 157. and to expand activities of existing financial entities. Twenty nine of the 135 companies in the SCA register are foreign. There are no restrictions on the presence of foreign senior staff in foreign banks. according to the authorities.
155. Listed securities are tradable via brokers only. There is also a securities market. transacting business in dirhams is not permitted. The two new companies licensed during 2009 were Abu Dhabi Commercial Islamic Finance Company and Siraj Finance Company79. 10 of 1998 effective January 1999. requires all banks to increase the number of UAE-national staff by 4% annually. Source: UAE Central Bank Annual Report 2009 www. within the Dubai International Financial Centre (DIFC) free zone. 13 financial consultancies (all locally incorporated). The DIFC regulations offer foreigners a business environment that is free of restrictions and limitations that appear in UAE laws and regulations. 15 financial intermediaries dealing in currencies and commodities as money market transactions (Forex dealers). SCA regulations permit foreign firms to list their securities in these markets after having satisfied certain requirements.United Arab Emirates Page 109
154. and two investment banks. except for the horizontal limitation of 49% maximum foreign ownership. Brokers wishing to operate on the UAE exchanges must have at least 51% national ownership. Brokerage firms are required to produce an AED 20 Million bank guarantee The total number of licensed brokerage firms stands currently at 99.
In its specific commitments under the GATS. Capital must be at least AED 30 million. whereby UAE nationals represent only approximately 9% of the total workforce.centralbank. Additionally. 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. 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. There are no nationality restrictions in the DIFC. the Central Bank and other authorities continue to encourage adherence.
The legislation differs from emirate to emirate. there were 19 financial investment companies (of which three were foreign).
Financial intermediation services At the end of 2004. The number of finance companies licensed to operate in the UAE rose to 24 in 2009 from 22 in 2008.
Foreign banks pay a 20% local emirate tax on profits in each emirate78. chaired by the Minister of Economy) under Federal Law No.
156. however. The UAE has bound measures on all these services for cross-border supply and consumption abroad without limitation. the Dubai International Financial Exchange (DIFX). Measures affecting mode 3 supply (commercial presence) remain unbound for new licences to operate bank branches. made commitments on all banking and other financial services as specified on the Central Products Classification list. with the exception of settlement and clearing services for financial assets. 4 of 2000 established with the aim of regulating the licensing. They are regulated by the Securities and Commodities Authority (an independent body. management. nor is the acceptance of deposits in any currency from a natural or juridical person in the UAE.ae
. compliance with these regulations has not been achieved by many banks. Due to the demographic structure of the UAE. with its own regulator. membership and supervision of the financial markets and brokerage firms. 22 finance companies. with limitations. There is no moratorium on the licensing of new financial institutions or on establishing branches of existing ones. this exception was due to the absence of a stock exchange in 1996 when the UAE became a member of the WTO.
The UAE's two securities markets were established in Abu Dhabi and Dubai in 2000 under Emirate laws. the UAE has.
Regulations on investment funds are set out in Central Bank Resolution No. It is regulated and supervised by the SCA. 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. nor the conditions for foreigners to work permanently in domestic industries. In practice. The DGCX commenced trading in November 2005. The local service agent holds no share in the firm and does not interfere in its management. The new law will give SCA the jurisdiction authority over most financial services as per best international practice. Currently there are 106 foreign brokers operating at the DGCX. 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. 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. and other government authorities. computer consultancies and similar services under “sole proprietorship” businesses. relies to a large extent on movement of physical persons.
. foreign broking and trading companies can operate freely. legal practice and consultancies.
80 The movement of natural persons.
162.Trade Policy Review Page 110
158. In its GATS schedule of specific commitments. it does not cover permanent employment of foreigners in domestic firms. Foreign professionals are permitted to practice business services and professions such as auditing. consumption abroad. companies are given initial approval. auditing and book-keeping services. which requires full disclosure as to ownership. 91% of the UAE work force is foreign. engineering. there is only one commodities exchange in the UAE. The fund manager must be a company licensed by the Central Bank. home regulator and suitability to act as brokers or traders in a commodity futures market. All companies must nevertheless have a principal centre of administration in the UAE. for certain taxation services. An agent's duties and obligations towards the foreign professional are limited to facilitating the practice of an activity in the emirate. as well as the power to license under the same conditions both foreign and domestic firms. as understood under the GATS. Investment funds/products must be marketed by a Central Bank licensed financial institution (bank or securities market). Currently. and commercial presence (modes 1-3) for accounting. and have signed a service agency contract with a local services agent that is a UAE national. financial conditions. the licensing procedure is in two stages: operators first apply for membership to the DGCX. provided they hold a valid UAE residence permit. such as assisting in obtaining and renewing work permits issued by the Ministry of Labour. medical services.
The UAE's labour market is generally open to foreigners. directors. the UAE has bound measures affecting cross-border supply. for
161. As trade in business services in general. Since the DGCX is a financial free zone. the Dubai Gold and Commodities Exchange (DGCX). Trade in business and professional services
159. and the information is passed to the SCA for final approval. and professional services in particular. the latter can permit foreign companies to set up branches or representative offices. and long-term employment of foreigners80. 164/8/94. and the contract has been authenticated by the notary public. which operates from the Dubai Metals and Commodities Centre (DMCC). obtain a professional licence from the government of the emirate in which they intend to operate. The DGCX is a joint venture between the DMCC and two Indian companies.
Firms of legal consultants may not represent clients before courts Recently. As a rule. for each activity. except for the emirates of Dubai and Ra's al Khaimah: to practice advocacy in the emirates of Dubai and Ra's al Khaimah. This ownership requirement applies in all the emirates. and can represent clients in the court of appeal for a maximum of four years. including advocates.United Arab Emirates Page 111
architectural. A modified version of the above mentioned Federal Law has been drafted and sent to the Cabinet for discussion and approval. lawyers. a local licence is required. Accountants benefit from free movement within the country. the physical rather than the moral person is licensed (e. Foreign lawyers cannot appear in the Supreme Federal Court and Courts of Cassation. the Ministry of Justice registers the applicant as a lawyer and allows him to practice. 23 of 1991. Law firms must be 100% owned by UAE nationals. are regulated both at emirate and federal level. The international financial reporting standards (IFRS) are applied by some special branches of foreign auditing companies in the UAE.
Accounting and auditing services
Accounting services are regulated at federal level. 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. In principle. enabling them to operate in an emirate other than the one in which they are registered. The conditions for withdrawal are identical for local and foreign lawyers. The request for a licence is presented to the Ministry of Justice through the local law firm. (a) Legal services
163.g. but only as an employee of the local law firm. Foreign lawyers may represent clients in the court of appeal and the courts of first instance. Federal Law No. In the five emirates applying Federal Law No. urban planning and landscape services. which requires a diploma from a foreign professional body recognized by the Ministry of Education. 23 of 1991. 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)). they can be revoked only for professional reasons. If all procedural conditions are met. There is no prior residency requirement. concerning the Advocates Ordinance and Amendments thereof. regulates the advocacy profession in the UAE. A foreign lawyer must obtain a permit from the Ministry of Justice. for both foreign and local lawyers are renewed annually.
and for veterinary
Legal services. and in the court of first instance for a maximum of eight years.
164. and counsellors. and local law.
. The UAE does not have a Bar Association. Advocates are free to move within the country once they obtained a licence. Their permits shall not be withdrawn unless they break their professional obligations set established by law.
WTO document GATS/SC/121. who signs the books). Dubai regulations require lawyers to have an office in Dubai in order to appear in a Dubai Court. The lawyer must be registered in the bar of his home country. international. concerning the Advocates Ordinance and Amendments thereof. both firms and individuals. foreign lawyers can offer legal advice on foreign. 2 April 1996. services81. 22 of 1995 and relevant ministerial decisions cover auditors and certified accountants. engineering. Licences. Establishment is regulated at the federal level. provided that they obtain a professional license from the relevant authorities of that emirate. Federal Law No. have 15 years of experience and meet conditions of good reputation. such that requirements concerning law firms equally apply in all the emirates.
having completed the theoretical part of the education. foreign firms must have a local services agent.
Foreign accounting firms have been able to practice audit and accounting services freely in the UAE. There are three categories in the Registry: practicing auditors. etc.). In all cases the firm must be established as solidarity company.Trade Policy Review Page 112
166. GCC citizens are treated as UAE citizens for the purpose of this requirement. Registration conditions for foreigners include a university degree in accounting or an equivalent degree. sickness. Auditors are not obliged to register with the AAA. There are three forms through which a foreign engineering consultant or contractor can
Ministerial Resolution No. 65 local firms and 12 foreign firms operate in the UAE.
167. It was established in 1997 by a Resolution of the Ministry of Labour and Social Affairs (No. The latter is for nationals who. the American Institute of Certified Public Accountants or the Canadian Institute of Chartered Accountants). and all partners should be registered in as practicing auditors. travel. 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). 227/97). 83 Council of Ministers Decision No. Auditors are not obliged to register with the AAA. 7 of 1997 Regarding the Registration of Foreign Offices and Companies in the Register of Auditors. in principle. The professional body for accountants in UAE is the Accountants and Auditors Association (AAA). are performing the three years of supervised professional practice required to qualify as an auditor in the UAE.
Foreign engineering firms and professionals are allowed to practice in the UAE.
168.g. the partnership contract should be notarized by the official authorities. that foreign firm must hold a certified licence for practicing as an auditor in its country of registration. If one of the partners is a firm established outside the UAE.
170. As noted.
169. non-practicing auditors (study. It was established in 1997 by a Resolution of the Ministry of Labour and Social Affairs (No. 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.
. 366/4 of 2005. 264 local (or GCC) individual auditors.
172.000. to find local partners in that proportion83.
The professional body for accountants in UAE is the Accountants and Auditors Association (AAA). but the situation is changing. which have been given a transition period. currently until 2010. on the major specialized construction projects.
The Register includes local GCC and other foreign natural persons and firms. three years of experience in accounting. and trainees. Some 263 foreign individual auditors. Each foreign branch is 100% foreign-owned and have several sub-branches operating in the various emirates. the Institute of Chartered Accountants in England and Wales. no foreign accounting firm has been established since 1995. 227/97). Trainees receive a monthly remuneration amounting to Dh 5. All of the foreign companies were established under legislation in place before 1995. and fellowship or five years of registration with an auditing professional body recognized by the Ministry of Economy (e. to firms established before 1995. Since the introduction of the emiratization policy in 1997. This requirement also applies. foreign ownership in new foreign firms establishing in the UAE is limited to 75%82. The engineering profession is regulated at emirate level.
171. the latter in the form of branches.
However. a partnership with a local engineering firm. the head office must undertake to appoint the required staff to reside in the emirate.United Arab Emirates Page 113
operate: a joint-venture with a local firm.
According to the authorities. Licensing of the foreign branch is limited to the fields of specialization not commonly provided by local engineering firms. The head office of the foreign firm should have existed for not less than 15 years. to have at least three years of experience in the specialized field after obtaining the university degree. foreign engineering contractors can be invited to tender without having to incorporate locally.
. According to the Order. All engineers.
Article 4 of Local Order No. In certain cases (large projects).
175. The Order regulating the profession in Dubai also requires that the applicant is not an owner of. information was available only for the Emirate of Dubai. or a foreign branch (with a local service agent). be led by an engineer with no less than 15 years in the specialization. must be registered with the Engineers Society of the UAE. 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.
173. or a partner in any of the contracting companies or in building materials trading companies84. and to be a member of the engineers' association of the country of study. a licence for the practice of engineering consultancy requires the applicant to be a fully competent UAE national. 89 of 1994 on Regulating the Practice of the Engineering Consultancy Profession in the Emirate of Dubai.
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. to hold a BSc. and carried out a number of projects of large technical and financial value. The foreign branch must have technical staff for each of the licensed fields of activity to be practiced. a foreign engineering branch office is defined as the branch established in the emirate by one of the foreign specialized engineering firms. conditions for supplying engineering services are similar across the emirates. of good conduct and reputation.
174. local and foreign. According to the Dubai Municipality conditions. in engineering from a recognized university in one of the engineering fields for which the licence is requested.
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/
WT/TPR/S/162/Rev.1 Page 116
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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.
185 3.132.662 76.635 288.783 857.122.679 1.596 1.342 2.824.754 273.124 68.718 201.072 17.386 21.425 19.124 1.006. of Singapore Chinese Taipei Hong Kong.405 271. Rep.097.403.653 819.052
1.060 13.004 374.583 89.675 498.567.016 2.676 596.619 63.651 1.486.867 145.395.040 55.851 502.780 122.772 139.872 1.191.345 1.874.508.742.193.163 543.269 83.
.656 4.756 2.067 727.204 368.604 59.845 9.487 59.678 5.040 3.230.690.164 103.082 497.736 299.554 87.308 22.218 14.145 1.493 15.533.958 338.750.199.597 251.198.456 147.233
1.870 261.522 175.439 794.311 71.465 703.885.638.880 92.363 5.588. based on Trade Map database.184 27.763 1.993 64.448 120.952.453 13.284 47.170 127.546.997.937 752.702.639.448 34.745 75.889.349 2.801 917.616.781
809.734 17.444.789.018 23.060 18. China Malaysia Other Asia India Pakistan Australia Indonesia Memorandum: EC(15)
581.922 744.607 644.553 69.425.195 85.641 1.599 213.965 968.248 815.325 435.386.088 39.002.236 1.162 921.925 420.964 426.664.810 9.333 3.319 4.1 Destination of exports (including re-exports).931.392 4.401 1.488 283.810.639 45.396 723.301 84.510 520.454 7.785.294.600 1.563
International Trade Centre.185 75.252 302.034 665.184 1.409.561 241.712 325.915 796.703 509.764 60.597.334.734.910 459.542 239.029 686.346.259.840 17.727 8.288.397 4.890 11.841 2184.108.40.2067 475.518 58.767.345 1.677 3.267 565.757 201.700.868.212.385
854.365 305.086 210.815.031 269.261 719.126 699.374 133.004 110.969 2.025.611 13.635 304.210 366.116.414 5.325 380.092 89.469 436.833 1.568.385 16.813 3.462 339.555 22.850 92.United Arab Emirates
WT/TPR/S/162/Rev.595.753 6.380.049.926.552 4.043.839.026 310.743 555.308 288.242.435.287.600 8.447 887.711.417 15.704 724.703 194.956 12.773.697 242.002 255.371 36.784.1 Page 117
Table AI.996.290 1.182 1.682.142.049.610 314.045 474.578 15.700 5.123 12.833 515.957 2.535 126. 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.527 848.000 450.387 383.492 43.983.406 3.649.071 91.
017 7.141.200 3.072.410 18.001.419 22.796 2.356.202.920 1.503.408.206.551.480.993 3.071 3.167.833.114 5.406 1.702 731.740.793 1.598.258 54.049 607.904.993.494 6.797 643. China Singapore Malaysia Chinese Taipei Other Asia India Pakistan Australia Indonesia Memorandum: EC(15) 2005 2006 2007 2008
72.184 1.628.160 1.443.376.510 20.873.188.610.404 5.720.497.696 15.502.084 25.039 2.169.651 1.764 2.662 18.107 16.876 1. of Hong Kong.484.776 15.632 7.002.073.890.504 11.676 1.623 685.716 4.621 48.599 50.308 971.607.025.456 1.876 2.404 10.006.284 11.129.WT/TPR/S/162/Rev.792.246 21.940.500 678.805 955.2 Origin of imports.175 40.485.512 12.999 4.310 1.788 607.873.723 8.731.653 32.448 1.100.872 2.015.166.193 27.701.981 5.862.172 8.501.863.835 649.983 8.565.271.951 17.108 1.431.015.770 1.231 4.291 7.110
International Trade Centre.440 1.766 6.093 1.150 1.237 1.394 4.404.936.980 8.326 5.134 3.321.765.776 3.004 671.637 2.198 1.235 14.535.663.088 6.214.929
127.878 1.490 205.254.659 2.849.206 2.761 21.392.235 520.031.025 574.945.268 23.236.576.488 50.066 36.361.892.360 997.574 1.958.313.300 5.310 3.268 606.079.397 903.515.001.784.810 1.783 850.247.600 8.566
175.825 2.327 38.128.918.312.114 1.959.107 3.175 580.644.134.703.056 33.677.474.060 7.307.089 18.104 19.404 2.738 874.159 1.793.028.067 649.499.117. 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.182.003 984. Rep.306 1.120.028 765.060.072 11.012 2.719 27.641 1.837 4.950.919.822 1.242 5.850.854 2.657 46.766 102. based on Trade Map database
.785.545 1.750 12.680 4.114 808.619 2.101.016 6.653.486 524.815 2.158 29.571.855 4.624.321.580 2.038 778.017 5.718 816.017 5.188.618 1.650.531.932 1.000 5.120 4.078.769.838 5.063.234 8.000.809 80.170 1.328.814.737.800.241 220.127.116.115 1.099 25.645 3.405.098.018.863 8.695 990.428.431.479.769 447.865 22.885.922.339.138.811 5.012.002 17.835.044 898.531 1.974 26.356.983.406 1.161 2.045 3.509.262 705.614 3.1 Page 118
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Table AI.820 1.751.424 1.328 856.243.091 9.805 6.782.603 8.772 2.899 975.754.450
80.476.924 30.393.814.957 27.270.890 1.416.367.112.292.598 4.584 1.403.098.360 12.280 34.377.289.072.531 1.405.
cosmetics Soap. of lines 7. mineral waxes Inorganic chemicals. resins and other vegetable extracts Vegetable plaiting materials.0 5. lime and cement Ores. seeds Lac.0 5.6 5. prepared edible fats Preparations of meat. modified starches Explosives.0 2. not elsewhere specified Products of animal origin.4 1. natural honey.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.0 5.3 3.3 2.1 Applied MFN tariff averages by HS2.0 5.0 0.8 4. tea.0 5. 2008 Average tariff (%) 5. peel of citrus fruit or melons Coffee.9 0.0 5.0 0.7 0.5 2.0 0.1 5. vegetable products Animal or vegetable fats and oils and their cleavage products.0 1.8 21. maté and spices Cereals Products of the milling industry.7 5.3 5.7 3.0 4.8 2. slag and ash Mineral fuels.0 0.0 5.9 20. mineral oils and products.0 2.8 0.0 4. organic or inorganic compounds Organic chemicals Pharmaceutical products Fertilizers Tanning or dyeing extracts. malt.7 0.0 0.0 0.0 3. paints Essential oils. nuts Miscellaneous edible preparations Beverages.9 5.0 0.0 0.0 5. insulin.0 5.0 5. sulphur. starches.0 5. perfumery.5 2. molluscs and other Dairy produce. pyrotechnic products.5 0.United Arab Emirates
WT/TPR/S/162/Rev.0 5. roots Edible vegetables and certain roots and tubers Edible fruit and nuts. stone. 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. birds' eggs. organic surface-active agents Albuminoidal substances. bulbs.0 5.1 0.8 0.0 5.5 2.0 0. wheat gluten Oil seeds and oleaginous fruits.5 3. edible products of animal origin.0 Std-dev (%) 5. misc grains. of fish or of crustaceans Sugars and sugar confectionery Cocoa and cocoa preparations Preparations of cereals. fruit.3 2.5 0. pigments.8 4.0 1.4 0.5 0.0 5.0 4.0 0.0 0.1 Page 119
Table AIII.0 0.9 5.0 0. gums.5 2.2 2.4 0.8 100.0 0.0 0.3 0. pastry Preparations of vegetables.0 2.0 3. spirits and vinegar Residues and waste from the food industries.0 0.0 4.0 5. fodder Tobacco and manufactured tobacco substitutes Salt.2 0.0 0.0 0.0 0. flour.1 (cont'd)
.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.0 5. starch or milk.0 0. not elsewhere specified Live trees and other plants.
0 0. cermets. tufted textile fabrics.0 5.0 5. fine or coarse animal hair.0 0.0 5. pictures and other Silk Wool.0 0.0 5.0 0.5 5. sun umbrellas. felt and nonwovens.0 5.0 3. special yarns Carpets and other textile floor coverings Special woven fabrics.0 0. asbestos Ceramic products Glass and glassware Natural or cultured pearls.0 5.0 0.0
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 0. articles thereof Tools.0 0.0 5.0 0.0 0. spacecraft.0 0.5 2.0 2.0 5. boats and floating structures
No. sets.0 0.0 2.0 5. wood charcoal Cork and articles of cork Straw.6 2. walking-sticks.0 0.0 5.0 5. and parts thereof Ships. worn clothing Footwear. Prepared feathers and down articles Articles of stone. not knitted or crocheted Other made up textile articles.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 5.1 (cont'd)
.0 0.0 5.1 Page 120
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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.0 0. coated.0 0.0 5.0 0.0 5. manufactures thereof Wood and articles of wood. etc.5 5. and woven fabric Cotton Other vegetable textile fibres. parts of such articles Headgear and parts thereof Umbrellas.0 5.0 5.0 5. rolling-stock Vehicles other than railway or rolling-stock Aircraft.0 0.0 0. covered or laminated textile fabrics Knitted or crocheted fabrics Apparel and clothing accessories.0 1.0 5.0 0. 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.0 5. of base metal Miscellaneous articles of base metal Nuclear reactors. machinery and appliances Electrical machinery and equipment and parts Railway or tramway locomotives. cutlery.0 5.0 0.0 0. plaster.0 0.0 0.0 0.0 0.0 0. articles of paper Printed books.0 0.0 0.0 0.0 0.0 0.0 5.0 5.0 5.0 0.0 5.3 0.3 0. knitted or crocheted Articles of apparel and clothing accessories.2 0.9 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. newspapers.0 0.0 5. cement.1 1.0 5.WT/TPR/S/162/Rev.0 0.0 5. 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. 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. boilers.0 5. gaiters and the like.0 5.0 5.0 5.0 5.0 5. paper yarn Man-made filaments Man-made staple fibres Wadding.0 5. lace Impregnated. implements.
based on data provided by the United Arab Emirates authorities.0 5.0 0.1 Page 121
HS Chapter and description 90 91 92 93 94 95 96 97 '99 Optical. and 29. 85.United Arab Emirates
WT/TPR/S/162/Rev. of lines 210 57 32 24 100 49 67 10
Average tariff (%) 5. photographic. collectors' pieces and antiques Commodities not elsewhere specified
No. 58.0 0.0 0.0 5. based on Trade Map database. 05. imports data from International Trade Centre. parts and accessories Arms and ammunition and parts and accessories Furniture. 39.0 5. and 5 in Chapter 12.0 0.0 0.
.0 5.0 5.0
Imports 2008 (US$ million)
0. 3 in Chapter 01.0
Range (%) 5 5 5 5 5 5 5 5
Std-dev (%) 0. games and sports requisites Miscellaneous manufactured articles Works of art. 28. and 90.0 5. mattress supports Toys.0 5. 48.
WTO Secretariat estimates. Lines not used: 1 in Chapters 02. 87. precision surgical instruments Clocks and watches and parts thereof Musical instruments.0
714478 31241 336071 2109194 509420 277292 95389 21482448
The complete product description is contained in the HS Chapter definition. 2 in Chapters 13. mattresses. bedding.0 0.