YOUR BUSINESS MAGAZINE

About the Magazine | Editor's Note | Business Opportunities | Subscribe

Overview

The UAE is recognized as the commercial and business hub of the Middle East and has positioned itself to attract foreign investment, through business friendly policies, making it highly competitive within the GCC, as other nations also diversify...

With a population of approximaetly 4.6 million, the UAE is a constitutional federation consisiting of seven emirates, Abu Dhabi, Dubai, Sharjah, Ajman, Um–ul Quwain, Fujairah and Ras Al Khaimah. With nearly 10% of the world’s proven oil reserves and 5 % of proven gas reserves, UAE’s oil and gas resources have generated great wealth for its citizens with GDP per capita in 2005 at US$27, 700 with real GDP growth at 5.8% in 2007. An abundant flow of oil money due to high oil prices in recent years, is contributing to the UAE actively diversifying its economy with an aim to reducing its reliance on oil reserves.

Several factors will attract the foreign investor. UAE is a tax haven with no corporate and personal tax (except on foreign banks and oil companies), low import duties and no trade quotas, with a reduction in red tape, and a streamlining of

administrative procedures with one-stop shop business centres and support services for start-ups. Other factors making foreign investment more conducive include, revision of commercial laws and regulations.

The UAE government has been keen to introduce information technology into the country and within its operations by setting up an e-government strategy for its services and advanced e-commerce and IT capabilities, in an effort to build a modern nation.

Free Zones offer huge opportunities for foreign investors with 16 free zones operating in the UAE comprising 5000 companies with a total worth of US$4 billion in investments, as reported by U.S. Commerce Service Report. Free zones offer full ownership of investments and full repatriation of capital and profits and full import and export tax exemptions. Other services include energy connection at subsidized rates, building leases, employee recruitment, accommodation, dining and security facilities.

UAE’s non-oil sectors are growing especially witnessed within manufacturing, services, construction, transport, tourism and telecommunications. United Nations Conference on Trade in 2006, reported that the UAE was the highest recipient of foreign investment in West Asia to the tune of US$12 billion.

Dubai in turn contributes approximately 29% of the county’s GDP and has successfully diversified its economy. Liberal government policies, tax exemptions and improving regulatory framework has coupled with Dubai government launching strategic projects by creating specialized free zones such as Dubai International Financial Centre which has an independent regulatory authority dedicated to attracting global foreign banks and financial service providers. In 2005, the Dubai International Stock Exchange was launched as part of an offshore financial centre. Dubai currently runs 8 free zones with specific purposes giving foreign companies offshore status. Free Zones are suitable for companies that intend to use Dubai as a regional manufacturing or distribution base and where most of their entire turnover will be outside the UAE. According to DP World, non –oil foreign trade through Dubai free zones recorded 8.9% increase in 2006 with a total value amounting to US$52 billion. Jebel Ali Free Zone (JAFZA) is Dubai’s free-zone leader handling the majority of non-oil foreign trade, accounting for US$37 billion of imports and exports.

Dubai has great plans for the future. Its economic 2015 plan will expand Dubai’s economy by 11% a year, achieve GDP of US$108 billion and increase per capita GDP to US$44,000 making it into a global and affluent city. Dubai’s focus will be on expanding trade, tourism, transport and financial sectors.

UAE Stats
Name of Country: UAE
Area (KM2): 83, 600
Population (Million): 4.68
Density (Persons/km2): 56
GDP (Billion USD): 129.6
GDP Growth Rate (%): 8.9
GDP Per Capita (USD): 27, 700

Note: Population &GDP statistics from World Economic Outlook 2006.
Area Data CIA World Factbook 2007.

know more

Important Contacts UAE

Established in 1992, the Department has wide ranging responsibility for the emirate's economic development and plays a leading role in the formulation of economic and commercial policy..

Country Map