Doing Business in UAE

2010

Contents
1. 2. 3. 4. 5. 6. 7. 8. 9. Introduction................................................................................................... 2 Businessenvironment .................................................................................. 3 Foreigninvestment..................................................................................... 16 SettingupaBusiness.................................................................................. 19 Labour .......................................................................................................... 40 Taxation........................................................................................................ 42 Accounting&reporting............................................................................. 43 UHYfirmsintheUAE ............................................................................... 44 UHYofficesworldwide ............................................................................. 45

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1.

Introduction

UHYisaninternationalorganisationprovidingaccountancy,business managementandconsultancyservicesthroughfinancialbusinesscentres inover75countriesthroughouttheworld.Businesspartnerswork togetherthroughthenetworktoconducttransnationaloperationsfor clientsaswellasofferingspecialistknowledgeandexperiencewithintheir ownnationalborders.Globalspecialistsinvariousindustryandmarket sectorsarealsoavailableforconsultation. Thisdetailedreportprovidingkeyissuesandinformationforinvestors consideringbusinessoperationsinUAEhasbeenprovidedbytheofficeof UHYrepresentatives: UHYSaxena 406,AtriumCentre,KhalidBinWalidStreet POBox23271,Dubai,UAE Tel: +97143517007 Website: www.uhyuae.com Email: mail@uhyuae.com ThefirmalsohasofficesintheJebelAliFreeZone,SharjahandAbu Dhabi. YouarewelcometocontactDavidBurnsforanyinquiriesyoumayhave. Informationinthefollowingpageshasbeenupdatedsothattheyare effectiveatthedateshown,butinevitablytheyarebothgeneraland subjecttochangeandshouldbeusedforguidanceonly.Forspecific matters,investorsarestronglyadvisedtoobtainfurtherinformationand takeprofessionaladvicebeforemakinganydecisions.Thispublicationis currentatFebruary2010. WelookforwardtohelpingyoutodobusinessintheUAE.

UHYSaxenaisamemberofUHY,aninternationalassociationofindependentaccounting andconsultancyfirms,whoseorganisingbodyisUrbachHackerYoungInternational Limited,aUKcompany.EachmemberofUHYisaseparateandindependentfirm. ServicesdescribedhereinareprovidedbyUHYSaxenaandnotbyUrbachHackerYoung InternationalLimitedoranyothermemberofUHY.NeitherUrbachHackerYoung InternationalLimitednoranymemberofUHYhasanyliabilityforservicesprovidedby othermembers.

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2.

Business environment

TheUnitedArabEmirates(theUAE),knownasAlEmaratAlArabiyahAl MutahidahinArabic,wasestablishedin1971andisafederationofseven Emirates:AbuDhabi,Dubai,Sharjah,RasAlKhaimah,UmmAlQuwain, AjmanandFujairah. Fromthemid18thcentury,untiltheunionoftheindividualEmiratesin 1971theBritishcolonialadministrationmaintainedinfluenceintheregion, andeachEmirateenteredintoseparatetreatieswiththeBritish administration.TheEmirateswerethencollectivelyknownastheTrucial StatesorSheikhdoms. EachindividualEmiratewasledbyaSheikhwhobelongedtoaparticular tribe,whichwasfrequentlythemostinfluentialtribeinthatarea.Thetribe oftenbranchedintoseveralsmallertribes,andeachalsohadtheirown leaderswhowouldworkcloselywiththeSheikhinpoliticalandother matters.Forexample,theAlBuFalahtribefromwhichthecurrent PresidentoftheUAE,H.H.SheikhKhalifaBinZayedAlNahyan,has descendedispartoftheBaniYastribe,whichconsistedofmorethan12 tribes. TheUAEhasnowexcelledasoneoftheMiddleEastsmostdynamic countries.Positiveplanningandvibrantenterpriseshavedevelopedthe citiesoftheEmiratestoalevelofluxurythatcanonlybematchedbythe mostglitteringcitiesoftheworld. Abundantwealthinnaturalresourceslikeoil,coupledwithwellplanned enterprisinginitiativesofthebusinesscommunityandsupportedbythe Rulers,haveresultedinflourishingindustry,tradeandservicesectors. UAEseasyandtolerantlifestylehasalsobeenamajorfactorinattracting overseasinvestment.Alcoholispermittedsubjecttocertainrules,and firstclassleisurefacilitieshaveemergedandarestillemerging.The attitudetowardswomenisfairlyliberalandmanywomen,bothforeign andlocal,pursuesuccessfulcareersintheEmirates.Unlikesomeareasin theMiddleEast,womenarefreetodriveandmovearoundtown unaccompanied. Moreover,theUAEoffersinfrastructuralfacilitiesthatmodern businessmenorbusinesswomenandtheirfamiliesmayrequire.Its standardoflivingisrelativelyhigh.Accommodationismodernand spaciousandmostofthemajorinternationalhotelchainsarerepresented orhaveapresencehere. 3

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 AnimportantaspectoftheUAE,whichisreadilynoticeabletoforeign visitors,isthatitisvirtuallyacrimefreecountrywithoneofthelowest crimeratesintheworld.Thiscongenialsocioeconomicenvironmenthas ledtotheUAEbeinganattractivedestinationforexpatriateworkerswith morethan200differentnationalitieslivingandworkingintheUAE.

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 Economic Data of UAE Annual Data and Forecast

2005a GDP Nominal GDP (US$ m) Nominal GDP (Dh. M Real GDP growth (%) Origin of GDP (% real change) Agriculture Industry Services Population and Income Population (m) GDP per Head (US$ at PPP) Fiscal Indicators (% of GDP) Consolidated government revenue Consolidated government expenditure Consolidated government balance Net public dept Prices and financial indicators Exchange rate Dh: US$ (end-period) Exchange rate Dh: Euro (end-period) Consumer Prices (av: %) Stock of money M1 (%change) Stock of money M2 (% change) Lending interest rate (av;%) Current account (US$ m) Trade balance Goods: exports fob Goods: imports fob Services balance Income balance Current transfers balance Current-account balance External debt (US$ m) Debt stock Debt service paid Principal repayments Interest International reserves (US$ m) Total International Reserves a. Actual. b. Economist Intelligence Unit estimates c. Economist Intelligence Unit forecasts. Source: IMF, International Financial Statistics.
21,010 27,617 77,239 31,695 39,595 42,595 46,595 56,090b 2,952b 1,100b 1,852b 78,569b 5,432b 1,800b 3,632b 110,107b 9,146b 3,800b 5,346b 134,656 b 8,634b 4,500b 4,134b 129,304 21,269 15,000 6,269 129,440 17,509 12,000 5,509 129,916 15,711 9,800 5,911 42,762 117,287 -74,525 -14,525 2,886 -3,389 27,684 57,500 145,586 -88,086 -18,030 5,745 -8,747 36,468 46,540 178,631 -132,091 -25,962 8,372 -9,287 19,663 62,949 239,213 -176,264 -33,827 3,803 -10,618 22,307 30,410 174,946 144,536 -26,294 4,727 -8,133 710 41,253 194,461 -153,209 -27,261 5,426 -8,077 11,341 44,905 210,370 -165,465 -29,531 5,979 -8,326 13,027 3.67 4.33 12.5b 29.2 30.5 7.2 3.67 4.85 13.5b 14.9 23.2 7.9 3.67 5.36 11.1b 51.4 41.7 8.0 3.67 5.11 15.8b 14.6 19.2 7.8b 3.67a 5.42a 1.5 4.0 3.7 5.8 3.67 5.09 4.0 13.0 13.3 5.6 3.67 5.18 6.1 18.0 15.9 5.0 28.4 20.6 7.8 32.3b 31.2 19.9 11.3 37.6 29.7b 19.4b 10.3b 42.3b 32.6b 19.0b 13.6 40.7b 23.9 24.3 -0.4 50.4 25.8 23.9 1.9 44.8 23.3 22.9 0.3 38.8 4.6b 29,174b 4.9b 32,411b 5.3b 32,988b 5.6b 33,893b 5.4 34,351 5.5 35,243 5.7 36,204 -12.9 29.5 1.9 -4.8 20.2 7.0 -0.8 6.9 4.6 0.2 9.7 3.4 2.0 -6.1 1.7 1.0 4.2 1.8 2.02 5..3 3.9 137,993 506,780 16.8 175,222 643,503 14.9 206,406 758,026 6.0 254,394 934,262 7.4 225,119 826,862 -3.5 251,537 923,894 3.4 287,098 1,054,51 1 4.8

2006a

2007a

2008a

2009b

2010c

2011c

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EmiratesoftheUnitedArabEmirates (ArabictransliterationDawlatalImrtalArabyahalMutta idah)

EmirateofAbuDhabi(ArabictransliterationAbzab,) AbuDhabiisthecapitalandthebiggestofthesevenEmiratesofUAE.Itis oneoftheArabworldsbiggestproducersofcrudeoilanditsreservesare expectedtolastmorethan200years.Assuch,itisunlikelytowitnessany fiscalworriesforalongtime.TheEmirateconstitutesabout80%ofthe UAEslandmassandhadapopulationofapproximately1,848,000atend of2008. AbuDhabiistheheadquartersforthePresidentoftheState,theCabinet andmostoftheministries.AlsolocatedhereareFederalinstitutions, foreignembassies,Zayedport,AbuDhabiairport,mostoftheoil companies,establishmentsandcommercialmarkets. TheEasternRegion,withitscapitalAlAinCity,isveryfertileandrichin greenerywithplentyoffarmsandpublicparks.Itisalsorichinground waterwithnumerousartesianwells. TheWesternRegion,withitscapitalBedaZayed,hasawidestretchof cultivatedforeststocombatthedesertclimate.Theforestgrownareais about100,000hectares,andhasabout20milliongreentrees.Someonshore oilfieldsarelocatedinthisregion.Thebiggestoilrefineryinthecountryis locatedinthisregionatAlRuwaisCity. EmirateofDubai(ArabictransliterationDubbay)

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DubaiisthesecondlargestEmirate,withapopulationofapproximately 1.9millionasof2008Itistheleadingindustrial,commercialandtrading centreoftheMiddleEast,andisstrategicallypositionedtoservicea marketofmorethanonebillionpeople.Thedomesticmarketisbuoyant andprosperousandithasnotbeenaffectedbyworldrecession.In addition,becauseofitspositionmidwaybetweenthetradingblocksof EuropeandtheFarEast,anditsstrategiclocationontheUAEcoast,itis perfectlyplacedforthetransportanddistributionofgoodstoservicethese markets. Dubai,althoughrichinoil,hasmadegreateffortstoreduceitseconomic dependenceonoilrevenues.Adeliberatelylowlevelofbusinessand marketregulationshasbeenadoptedtoencourageoverseasinvestmentin thenonoilcommercialsector.Asaresult,Dubaisnonoileconomyhas achievedarateofgrowthrivallingthatofanyeconomyintheworld. Dubaienjoysastrategiclocationandservesasthebiggestreexporting centreintheMiddleEast.MostreexportedgoodsgotonearbyGulf States,theIndiansubcontinent,AfricaandtheCIScountries.Muchofthe growthinthisbusinessisduetothesuccessfuloperationofDubaistwo mainports,PortRashidandJebelAli.Whilstthetwoportscontinueto maintaintheirseparateidentities,theywerecombinedunderanoverall administrativebody,theDubaiPortsAuthority,in1991.

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TheEmiratefeaturesanetworkofindustrialareas,businessparksand highlysuccessful,specializedfreezonesofinternationaldistinction,world classseaports,amajorinternationalairportandcargovillage,amodern highwaynetwork,stateofthearttelecommunicationsandreliablepower andutilitiesallofwhichdeliverefficiency,flexibility,reliability, reasonablecostandsize.Complementingitsworldclassinfrastructureisa sophisticatedservicesectorthatfeaturesleadingregionalandinternational freightforwarders,shippingcompanies,insurersplusmajorinternational hotels,banksandfinancialservicefirms,lawyers,accountingfirms, consultants,advertisingagencies,topinternationalexhibitionand conferencefacilities,highqualityofficeandresidentialaccommodation, firstclasshospitals,schools,shoppingcentresandrecreationalfacilities. EmirateofSharjah(ArabictransliterationAsh-Shriqah)

SharjahisthethirdlargestEmirateintheUAE,afterDubaiandAbu Dhabi,withapopulationof1,064,000asofend2008.Itisthecultural capitaloftheUAEandhasattractivedestinationsfortourists. TheEmirateofSharjahextendsalongthecoastoftheArabianGulfover 16kmandinlandformorethan80km.ThethreeotherportsofSharjah lyingontheGulfofOmanareKalba,KhorFakkanandDibba. ItwasherethattheBritishsetuptheirmilitarybaseandtheTrucial Coastsfirstinternationalairportwasestablishedin1932.The developmentofoilreservesintheUAEandmorerecentgasrevenueshave sustainedSharjahsmoderndevelopment.Butitisperhapsthepeople,a livelytradingtraditionandotherculturalfactorswhichhavecreatedand maintainedtheuniquecharacteroftheSharjahEmirate. SharjahsInternationalAirporthasbecomeincreasinglybusybecauseof thelargenumberofvisitorsfromCIScountriesandboomingcargo movement. TheAlDhaidregionoftheEmirateisimportantforagriculture.Itgrows morethan100,000tonnesofvegetablesandfruitsincludingstrawberries.

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 EmirateofFujairah(Arabictransliterational-fugayrah) TheEmirateofFujairahgainedrecognitionin1952andbecameamember oftheFederationatitsinceptionin1971anditspopulationisaround 130,000.ItistheonlyEmiratelocatedontheGulfofOmancoast,away fromtheHormuzStrait,coveringanareaof1,450sqkm.Itischaracterised byitsmountainsthathavedifferentcolours,itsfertilevalleysfullof naturalwatersprings,anditscoastalbeltwithitsclean,goldensands extendingover90km. Fujairahsfertilesoilhasledtotheestablishmentofaflourishingvegetable andanimalhusbandryindustry.Exportsofvegetablesandflowershave becomealucrativebusiness.Fishinghasalsobeenafocalbusinessinthis region.Sotoohastourism,givingrisetospeedydevelopmentofleisure andhospitalityservices. EmirateofAjman(Arabictransliteration ajmn) ThesmallestofthesevenEmirates,Ajmanhadanestimatedpopulationof 2,80,000attheendof2008andislocatedonthecoastoftheArabianGulf inbetweentheEmirateofUmmAlQuwainandSharjah. TheeconomyofAjmaninthepastdependedonfishingandtrade. However,todayAjmanhasmanydiversifiedactivitiesandhasbecomean importantindustrialandcommercialbase.Thegrowthinexportsfrom localfactoriesoftheEmirate,andthehighindustrialstandardsadopted, hasgiventheindustrialmovementhereahighdegreeofcredibility.This hasledtomorecapitalbeingattractedandtheestablishmentofmore economicallydevelopedprojectswhich,inturn,havecontributedto industrialdevelopment. EmirateofUmmAlQuwain(Arabictransliterationumm al-qaywayn) TheEmirateofUmmAlQuwain,withitscoastlinestretchingover24km, islocatedontheArabianGulfcoastoftheUAE,betweenSharjahtothe southwest,andRasalKhaimahtothenortheast.Itsinlandborderlies about32kmfromthemaincoastline.Theemiratehadpopulationaround 62,000attheendof2008(makingittheleastpopulousemirateinthe federation)andhasanareaof777squarekilometres. Ithastraditionallybeenknownforfishingandagricultureandfishingis stillthemainactivity.Itisalsoanimportantcentrefordatecultivationand isoneoftheUAEsbiggestpoultryoutputcontributors.

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EmirateofRasAlKhaimah(ArabictransliterationrsalKhaymah) RasAlKhaimah,themostnortherlyEmirateontheUAEswestcoast,has acoastlineofabout64kmontheArabianGulf,backedbyafertile hinterland,withaseparateenclaveintheheartoftheHajarMountainsto thesoutheast. ThecityofRasAlKhaimahisdividedintotwosectionsbyKhorRasAl Khaimah.Inthewesternsection,knownasOldRasAlKhaimah,istheRas AlKhaimahNationalMuseumandanumberofgovernmentdepartments. Theeasternpart,knownasAlNakheel,housestheRulersoffice,several governmentdepartmentsandcommercialcompanies.Bothpartsofthe EmirateshareborderswiththeSultanateofOman.Thetotalareaofthe Emirateis168sqkmandithadapopulationof280,000attheendof2008. Duringthepasttwodecades,RasAlKhaimahhaswitnessedremarkable advancements,particularlyincommerceandeducation.Connectedtothe otherEmiratesbymodernhighways,thisEmiratehasanefficient infrastructure,includinghotels,hospitals,shoppingcentresand restaurants.TodayitisadynamicallydevelopingEmirate,withexcellent scopeforindustrialandbusinessgrowth. Geographicallocation TheUnitedArabEmiratesissituatedinSouthwestAsia,borderingthe GulfofOmanandthePersianGulf,betweenOmanandSaudiArabia;itis inastrategiclocationalongsouthernapproachestotheStraitofHormuz,a vitaltransitpointforworldcrudeoil. TheUAEisstrategicallypositionedclosetotheentranceoftheArabian Gulf,withextensivecoastlinesonitswesternandnorthernregions togetherwithaneasterncoastlineborderingtheArabianSea. TheclimateoftheUAEgenerallyishotanddry.Thehottestmonthsare JulyandAugust,whenaveragemaximumtemperaturesreachabove48C (118F)onthecoastalplain.IntheAlHajarMountains,temperaturesare considerablycooler,aresultofincreasedaltitude.Averageminimum temperaturesinJanuaryandFebruaryarebetween10C(50F)and14C (57F). ThestrategiclocationofUAEmakesitconvenienttospeaktoSingapore andUS(anyanywhereinbetween)duringtheofficeworkinghoursitself. UAEisGMT+4,whileSingaporeisGMT+8andUS(EST)isGMT5 hours. Tourism

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Lyingonthecalm,bluewatersoftheArabianGulfandflankedbymajestic desert,theUAEoffersyearroundsunshineandfivestarluxury. TheUAEhaswelcomedseafarersandtraderstoitsshoresforgenerations. Today,thistraditionofcourtesyandhospitalityliveson.TheUAEsstreets arecleanandsafe,andtravellersarecharmedbyitswarmthand friendliness. TheUAEhassomethingforallholidaymakersandisalsorapidly emergingasaninternationalconference,exhibitionandincentive destination.Ithassuperbsports,shopping,anddiningandentertainment facilities. Population ThepopulationoftheUAEwas5.6millionattheendof2008.Expatriates makeupthemajorityofthepopulationandaremainlydrawnfromthe Indiansubcontinent,EuropeandneighbouringArabcountries.Mostofthe landintheUAEissparselypopulated,asthepopulationtendstobe centredmostlyinthecitiesofDubai,AbuDhabiandSharjah. PopulationgrowthintheUAEhasbeenstrongoverthelast18years: Growth Year
1963 1968 1975 1980 1985 1995 1999 2003 2009

Population
95,000 180,226 557,887 1,042,099 1,379,303 2,411,041 2,938,000 4,041,000 5,671,112

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 Infrastructure TheUAEhasbeenspendingbillionsofdollarsoninfrastructureandisthe biggestprojectsmarketintheregion,accountingfor37percentoftotal projectvaluewithintheconstruction,oilandgas,petrochemicals,power andwaterandwastesectors.Manyhugeinvestmentshavebeenpoured intorealestate,tourismandleisure.Thesedevelopmentsareparticularly evidentinthelargeremiratesofAbuDhabiandDubai. Governmentsinthenorthernemiratesarerapidlyfollowingsuit, providingmajorincentivesfordevelopersofresidentialandcommercial property.Theallocationwillbeusedtofundtheconstructionofroad networks,newhousingcommunities,drainagenetworksandother projects,providingintegratedsolutionstosomeinfrastructuredeficitsin theseareas. Realestate TraditionallyonlyUAEnationalsandnationalsoftheGCCcountriescan ownpropertyintheUAE.Sinceearly2004,Dubaiopeneditsrealestate ownershiptoexpatriateslimitingittothedevelopmentsdoneintheFree ZoneorthenewDubaiareas.Thiswasamajorareaofgrowthforthe Emirateinthelast5years,followingDubai,otheremiratesfollowedsuit andpassedlawswherebyexpatriatescouldownpropertiesinthefree zonemarkedlocations.Duetotheglobalfinancialcrisis,RealEstatesector inUAEhasbeenaffectedadversely.Thepriceshaveplummeltedby40 50%insomeoftheareas.Lawshavebeenformulatedtoprotectthe interestsofinvestors.RealEstateRegulatoryAgencyhasbeenestablished tomonitorandregulatethesector.TheDepartmentofLandsand PropertiesissuestitledeedsofRealPropertyRightsinaccordancewiththe currentrecordsintheRealPropertyRegister. Communications

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TheUAEhasenteredthe21stcenturywithasophisticated telecommunicationssector,providingitscitizenswithahighlyefficient andcosteffectivecommunicationsnetwork.EmiratesTelecommunications Corporation(ETISALAT),oneofthelargestandmostsuccessful companiesintheMiddleEast,controlsthetelecommunicationsbusiness. EtisalatservicesincludeInternetaccess,ATMLAN&WANnetworks,e commerceservices,prepaidphonecards,mobilephoneservices,cable televisionandlocaltelecommunications.Themobilenetworkisbasedon theGSMstandards. TheUAEispresentlyservicedbytwotelecommunicationsoperators, Etisalatanddu.Etisalatoperatedamonopolyuntildulaunchedmobile servicesinFebruary2007.However,Etisalat,withover80percentofthe market,remainstheUAEsbiggesttelecomproviderandisexpanding dramaticallyinternationallyandisnowthesixteenthlargest telecommunicationsfirmintheworld.Duistargetinga30percentmarket shareby2010.AlltelecommunicationiscontrolledandmonitoredbyTRA (TelecommunicationsRegulatoryAuthority). Industry ThediscoveryofoilusheredtheUAEintotheindustrialage.This industrialisationprocessgatheredmomentumfollowingtheformationof theFederation.Duringthelasttwodecades,withtheGovernments increasingemphasisondiversificationandbasicbuildingblockssuchas capitalandenergyreadilyavailable,themanufacturingsectorhasmade significantprogressintheUAE. Freezoneshaveplayedaninstrumentalroleinattractingmanufacturing industriesandtodayhundredsoffactoriescoveringawiderangeof manufacturingaredistributedthroughoutthecountry.Cement,building materials,aluminium,chemicalfertilisersandfoodstuffsindustriestopthe list,followedbygarments,furniture,paperandcarton,plastics,fibreglass andprocessedmetals. Currency TheunitofcurrencyinUAEistheUAEDirham(Dh.),alsoreferredtoas theArabEmirateDirham(AED)ininternationalmarkets.EachDirhamis dividedintounitsof100fils.Currencynotesareissuedindenominations of5,10,20,50,100,200,500and1,000Dirhams.Coindenominationsare1, 5,10,25and50filsand1Dirham.However,coinswithadenomination below25filsarerarelyused.

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ThevalueoftheDirhamhasbeenfixedtotheUSdollarsince1980atthe rateof1USD=Dh.3.67.TheUAEgovernmenthasestablishedanew committee,whichproposestostudythepossibilityofscrappingthe dirhamspegtotheUSDollarandthereasonsformaintainthepeg.The monetaryofficialshavestatedtheyarenotdroppingthedollarpegasof now. Financeandbanking TheUAEsbankingandmonetarysystemhasmadesignificantprogressin recentyearsduetotheCentralBanks(theregulator)increasinglystrict controloffinancialinstitutions.Overthelast10yearstheCentralBankhas playedanimportantroleinsupervisingthebankingindustryandhas contributedtoimprovingthequalityofservicesandperformanceof severalbanks. ThenumberofforeignbankrepresentativeofficesintheUAEhasrisen steadilyoverthelastcoupleofyears,atrendascribedtotheflotationof severalnewcompaniesandtotheUAEsmembershipoftheWTO.A noteworthydevelopmentistheestablishmentoftheDubaiInternational FinancialCentrewhichisexpectedtoattractalargenumberoffinancial intermediaries,includingbanks,setupundertheDIFClaws. Stockexchanges DFMisoperatingasasecondarymarketfortradingofsecuritiesissuedby publicjointstockcompanies,bondsissuedbytheFederalGovernmentor anyoftheLocalGovernmentsandpublicinstitutionsinthecountry,units ofinvestmentfundsandanyotherfinancialinstruments,localorforeign, whichareacceptedbytheMarket.TheMarketcommencedoperationson 26thMarch2000. DFMissetupasaPublicJointStockCompanyintheUAEwithpaidup capitalofAED8Billionallocatedover8Billionshares,withaparvalueof AED1pershare,andthetwentypercent(20%)ofDFMsharesbeoffered forpublicsubscription.ThisIPO,thefirstofitskindintheregion,was highlyoversubscribedandgeneratedmorethanAED201billion. DubaiFinancialMarket(DFM),whichisthelocalstockexchangeopened inMarch2000.TradingisscreenbasedlikeNASDAQandnotanopenout crysystemliketheNYSE.TheDFMhasabout33stocksconsistingof33 equity,6debtinstrumentsand15mutualfundswhicharetradedandhad amarketcapitalizationofAED294billion(US$80billion)approximately. Inrecentyearsthenumbersofstockswhichhavelistedhavegoneupand, withtheeconomicwellbeingexpectedtocontinue,moreandmoreare likelytogetlisted.

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 TheAbuDhabiSecuritiesMarket(ADSM)wassetupinend2000 followingthelaunchofDFM.TheADSMalsooperatesonascreenbased tradingsystem.Thereare55stockswhicharetradedontheADSMandthe exchangehadamarketcapitalizationofAED399billion(US$109billion). Amajordevelopmentonthecapitalmarketsectorhasbeenthesettingup oftheDubaiInternationalFinancialExchange(DIFX).DIFXisapioneering effortbytheDubaigovernmenttosetupaninternationalexchangeonthe linesofLSEandNYSEintermsoftransparencyandregulatory environment.Theexchangeisregulatedbyitsownindependentcharter andisnotunderthegeneralUAElawsjurisdiction. Localtime UAEisfourhoursaheadofGMTandtherearenodaylightsavingtime adjustments. Religion TheofficialreligionofUAEisIslam.However,otherreligionsarealso respected.TherearequiteafewChristianchurches,twoHindutemples andaSikhtemple. Corporatestructures ThebusinessenvironmentintheUAEisdynamicandcommercially accessible.Itisoneofthemostopenandfreelycompetitivemarketsinthe world,guidedmainlybyqualityofservice,valuepropositionsand businessintelligence.Tomakebusinesstripsmorefruitful,visiting businesspeopleareadvisedtocollectinformationfromsourcesof commercialintelligence,includingEmbassylists,theChambersof Commerce,officialgazettesandtenderlists,andrelevantConsultancy entitiesbeforetheirvisit.

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3.

Foreign investment

TheUAEoffersinternationalbusinessentitiesawiderangeof opportunitiesforvariedactivitiesandoperations,including: (a) Trade (b) Transportanddistribution (c) Manufacturingandprocessing (d) Regionaloffices. Governmentinitiativesandincentives Thegovernmenthasbeenproactiveinensuringavailabilityof infrastructureandservicequalitythatmatchthehighestinternational standards,facilitatingefficiencyandquality.Amongtheattractivebenefits are: (a) Freeenterprisesystem (b) Highlydevelopedtransportinfrastructure (c) Stateofthearttelecommunications (d) Sophisticatedfinancialandservicessector (e) Topinternationalexhibitionandconferencevenues (f) Highqualityofficeandresidentialaccommodation (g) Reliablepower,utilitiesandalliedservices (h) Firstclasshotels,hospitals,schools,shoppingandmarketing outlets (i) Cosmopolitanlifestyle (j) Worldclassairlines(EmiratesAirlinesandnowEithad) connectingmostofthemajorcitiesofworldwithDubaiand AbuDhabi. InternationalcompaniessettingupinDubaicanobtainsignificantcost advantagesnotgenerallyavailableinternationally.Themajorfactorsare: (a) Noforeignexchangecontrols (b) Notradebarriersorquotas (c) Competitiveimportduties(4%withmanyexemptions) (d) Competitivelabourcostslabourforceismultilingualand skilled (e) Competitiveenergycosts (f) Competitiverealestatecosts (g) Competitivefinancingcostsandhighlevelsofliquidity (h) Nocorporateprofitorpersonalincometaxes(exceptforoil companiesandbranchesofforeignbanks). Underthefederalconstitution,andunderthepowersreservedbyeach individualEmirate,freezoneshavebeensetupeachEmirate.Itis 16

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estimatedthattherearemorethan20,000companiesoperatingoutof30 variousfreezones. SomeoftheadvantagesofferedbytheFreeZonesare: (a) 100%foreignownedventuresarepossible (b) Localsponsororalocalpartnernotrequired (c) Nocorporatetaxesforatleast15years(renewableforan additionalperiodof15years) (d) Norestrictionsontherepatriationofcapitalandprofits (e) Nopersonalincometaxes (f) Noadministrationproblemsandeasy,efficientservices (g) Nocurrencyconvertibilityrestrictions (h) Efficientcommunicationinfrastructure (i) Optiontoleaselandanddevelopitaccordingtoonesneeds. Businessetiquette AlthoughforeigninvestmentandexpatriatepopulationsinDubaihave grownrapidly,businesscustomsherearegenerallythesameasinthe West.However,theforeignbusinessmanshouldbearinmindafewpoints whendoingbusinessinDubai: (a) Alwaysbeontime.However,bepreparedtoacceptdelaysor evenpostponementsofmeetingsatshortnotice.Patienceisa virtueandeveryoneisexpectedtowaitnomatterhow importanttheyare.Thisispurelyamatteroflocalcustomand amuchslowerlifestyle. (b) Businessmeetingstendtobelessformal.Ataninitialmeeting theremaybeothersintheroom.Stafforothervisitorsmay ofteninterruptthehost.Itshouldbenotedthatthepurposeof suchameetingistoarrangeafurtherprivatemeeting. (c) Inanymeetingortelephoneconversation,aperiodofsmalltalk isexpectedbeforethepurposeofthemeetingorcallis discussed. (d) BusinesscardsshouldbeprintedinbothEnglishandArabic. Allbrochuresandleafletsshouldbeglossy,fullofphotographs andshouldalsolieprintedinbothEnglishandArabic. (e) Respectconfidentiality,asDubaiissmallcommunityandword cangetaroundveryfast.Itisthereforeimportantthatall businessdiscussionsarekeptinstrictestconfidence.Breachesof confidencearenotappreciated. (f) Oralagreementsarebindingandsothenegotiatormustbe carefulnottocommit.Itshouldberememberedthatbargaining isimportant.AnArabwilltakegreatprideinobtainingagood deal.Thisisnot,however,anexcusetooverchargeatthe outset.Theremustbeareasonforeverypricereductionsoasto

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4.

Setting up a Business

Variouslegalstructuresareavailableforestablishingabusinessinthe UAE.Theyarecollectivelyaddressedbyvariouslaws.Therearethree maintypesofbusinesssetupspossibleinUAE: Thefirstisthemainlandcompanies,governedbythefederal CommercialCompanies,1984.However,theimplementing regulationsforeachEmiratearedifferentandmayleadtosome differencesinimplementationoflawanditsregulations. Thesecondtypesarethecompaniesinthefreezone.Eachfree zonehasitsownlawsandimplementingregulationsand/orrules. Themainfeatureofthistypeofcompanyis100%expatriate ownershipasopposedtomaximumof49%inmainland companies. Thethirdtypeofcompanysetupandthemostrecentofferingis theoffshorecompaniesundertheOffshoreCompanyRegulations intheEmirateofDubaiandtheEmirateofRasalkhaimah. Mainlandcompanies MainlandcompaniesaregovernedbytheFederalLawNo.8of1984,as amendedbyFederalLawNo.13of1988theCommercialCompanies Lawanditsbylaws.Thislawstipulatesthatatotalequityofnotlessthan 51%shouldbeheldbyaUAEnationalinanycommercialcompany,except inthefollowing: Wherethelawrequires100%localownership BusinessessetupintheFreeZone Inactivitiesopento100%AGCCownership WherewhollyownedAGCCcompaniesenterintopartnership withUAEnationals Inrespectofforeigncompaniesregisteringbranchesora representativeoffice(UAEnationalserviceagentisrequired) Inprofessionalcompanieswhere100%foreignownershipis permitted(UAEnationalserviceagentisrequired). IndividualEmiratesaswellastheFederalGovernmentregulateeconomic activities.Theauthoritieshavesoughttocreateanenvironmentthatiswell regulatedwithoutbeingundulyrestrictive.Asaresult,theUAEoffers businessestheoperatingconditionsthatareamongthemostliberaland attractiveintheGulfregion.

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Allbusinessactivitiesareprimarilycoveredbythreecategoriesof licence: Commerciallicencecoveringallkindsoftradingactivities Professionallicencecoveringprofessionalservices,otherservices, craftsmenandartisans Industriallicenceforestablishinganindustrialormanufacturing activity. TheCommercialCompaniesLawanditsbylawsgoverntheoperationsof varioustypesofbusinessstructures,whichareclassifiedintoeight categories: GeneralPartnershipCompany Partnershipencommendams SharePartnershipCompany JointVentureCompany PublicShareholdingCompany PrivateShareholdingCompany LimitedLiabilityCompany ForeignCompanies(BranchesandRepresentativeoffices). GeneralPartnershipCompany TheestablishmentofGeneralPartnershipcompaniesislimitedtoUAE nationalsonly. Partnershipencommendams&SharePartnershipCompany TheDubaigovernmentdoesnotatpresentencouragetheestablishmentof partnershipencommendamsandsharepartnershipcompanies. JointVentureCompany Ajointventureisacontractualagreementbetweenaforeignpartyanda localpartylicensedtoengageinthedesiredactivity.Thelocalequity participationinthejointventuremustbeatleast51%,buttheprofitand lossdistributioncanbeprescribedotherwise.Thereisnoneedtoforthe jointventuretobelicensedortheagreementtobepublished.Theforeign partnerdealswiththirdpartiesunderthenameofthelocalpartnerwho (unlesstheagreementispublicised)bearsallliability. Inpractice,jointventuresareseenasofferingasuitablestructurefor companiesworkingtogetheronspecificprojects. Public&PrivateShareholdingCompanies TheCommercialCompaniesLawstipulatesthatcompaniesengagingin banking,insuranceorfinancialactivitiesshouldberunaspublic shareholdingcompanies.Foreignbanks,insuranceandfinancial

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companies,however,canestablishapresenceinDubaibyopeninga branchorrepresentativeoffice. Shareholdingcompaniesaresuitableprimarilyforlargeprojectsor operationstheminimumcapitalrequiredisDh.10million($2,725million USD)forapubliccompany,andDh.2million($545,000USD)foraprivate shareholdingcompany.Thechairmanandmajorityofdirectorsmustbe UAEnationalsandthereislessflexibilityofprofitdistributionthanis permissibleinthecaseofLimitedLiabilityCompanies. LimitedLiabilityCompany Alimitedliabilitycompanycanbeformedbyaminimumoftwo,anda maximumof50,peoplewhoseliabilityislimitedtotheirshareinthe companyscapital.Suchcompaniesarerecognisedasofferingasuitable structurefororganisationsinterestedindevelopingalongterm relationshipinthelocalmarket. TheminimumcapitalrequirementsvaryineachEmirateandare contributedincashorkind.Whileforeignequityinthecompanymaynot exceed49%,profitandlossdistributioncanbeprescribedotherwise. Responsibilityforthemanagementofalimitedliabilitycompanycanbe vestedwiththeforeignornationalpartnerorathirdparty. ForeignCompanies(branchesandrepresentativeoffices) TheCommercialCompaniesLawcoverstheformationandregulationof branchesandrepresentativeofficesofforeigncompaniesintheUAEand stipulatesthattheymaybe100%foreignowned,providedalocalagentis appointed. OnlyUAEnationalsorcompanies100%ownedbyUAEnationals,maybe appointedaslocalagents(whichshouldnotbeconfusedwiththeterm commercialagent).Localagentsalsooftenreferredtoassponsorsare notinvolvedintheoperationsofthecompanybutmainlyassistin obtainingvisas,labourcards,etcandarepaidalumpsumand/ora percentageofprofitsorturnover. ProfessionalFirms(governedbyDubaiLocalOrderNo63of1991on ServiceEstablishments) Insettingupaprofessionalfirm,100%foreignowned,soleproprietorships orcivilcompaniesarepermitted.Suchfirmsmayengageinprofessionalor artisanactivitiesbutthenumberofstaffmembersthatmaybeemployedis limited.AUAEnationalmustbeappointedaslocalserviceagent,buthe hasnodirectinvolvementinthebusinessandispaidalumpsumand/or

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percentageofprofitsorturnover.Theroleofthelocalserviceagentisto assistmainlyinobtaininglicences,visas,labourcards,etc. FreetradezonesoftheUAE FreezonesintheUAEallow100%foreignownershipandhaveniltaxes usuallyguaranteedfor15or50years.Eachfreezonehasitsownspecific requirementsregardingminimumoffice/warehousespaceandpermitted activities.Companiesoutsidethefreezonesrequirealocalsponsorand allowmaximum49%foreignownership. Differenttypesofcompanieswhichcanbeestablishedare: FreeZoneCompany(FZCO/FZC) FreeZoneEstablishment(FZE) FreeZoneBranch. Differenttypesoflicenceswhichcanbeissuedare: TradingLicence IndustrialLicence ServiceLicence NationalIndustrialLicence. Listingsofallfreezonesaregivenbelow.Themajorfreezonesare explainedinalatersection: AbuDhabi AbuDhabiAirportFreeZone AbuDhabiPortsCompany(ADPC) SadiyatFreeZoneAuthority AbuDhabiExhibitionCentre Twofour54(TowFourFiftyFour/54)MediaandProductionFree Zone. Dubai JebelAliFreeZone(JAFZ) DubaiAirportFreeZone(DAFZ) DubaiInternetCity(DIC) DubaiMediaCity(DMC) DubaiGoldandDiamondPark(DGDP) DubaiCars&AutomotiveZone DubaiMultiCommoditiesCentre(DMCC) DubaiHealthCareCity(DHCC) DubaiInternationalFinancialCentre(DIFC) DubaiMaritimeCity DubaiLogisticsCity

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DubaiOutsourceZone(DOZ) DubaiTechnoPark(DTP) DubaiSiliconOasisAuthority(DSOA) DubaiStudioCity(DSC) DubaiTextileCity(DTC) DubaiFlowerCentre(DFC) DubaiCarpetFreeZone.

Sharjah SharjahAirportFreeZone(SAIFZone) HamriyahFreeZone(HFZ). RasAlKhaimah RasAlKhaimahFreeTradeZone(RAKFTZ) RasAlKhaimahMediaFreeZone RasAlKhaimahInvestmentAuthority(RAKIA). Fujairah FujairahFreeZone(FFZ) FujairahCreativeCity. Ajman AjmanFreeZone(AFZ) UmmAlQuwain AhmedBinRashidFreeZone GeneralFreeZones TheJebelAliFreeZone(JAFZ) In1985theGovernmentofDubaifoundedthefirstFreeZoneintheUAE, theJebelAliFreeZoneontheoutskirtsofDubaiinanareaknownasJebel Ali.TheFreeZoneisprincipallyadesignatedlocationspanning approximately100sqkm(38sqmiles)andisabout50km(30miles)from DubaiCity. ThenewdevelopmentsattheJebelAliFreeZoneandthesurrounding regionaredesignedtomakeJAFZAworldsoneofthemostefficientsea airhubs,completewitha6lanehighwaythatwillhelpkeepgoods custombound(helpingtominimizeprocessingtime)astheyare transportedfromporttocargoaircraftinjust20minutes.JebelAliFree Zoneistheworldsonlyfreezonelocatedbetweenoneoftheworlds largestairportsandaseaport.TheJebelAliFreeZonehasJebelAliPort,

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worlds7thlargestcontainerportononesideandtheJebelAli InternationalAirport,oneoftheworldslargestcargoairportsontheother side. Becauseofitslocation,itbenefitsfrombeinganefficientregional distributionpointwithaccesstoahugenetworkofpeople.Althoughthe FreeZoneislocatedinDubai,companiesestablishedtherearelegally treatedasfreezonecompaniesandarethereforesubjecttotheFreeZones lawsandregulationsasdistinctfromDubailaw.

ValueAddedServices JAFZAprovidesanumberofvalueaddedsupportservicesthroughwhich customerscanenhancetheirbusinesses.Theseservicesinclude: AdviceonFutureExpansion&Investment:JAFZAassistsits customersinselectingthedesirablesiteorlocationfortheir investmentventure,aswellasindeterminingoperational requirements BusinessMatching:Companiescanavailtheopportunitiesof exploringjointventuresandothermutualbusinessopportunities byparticipatinginfrequenteventsorganizedbyJAFZAinthe localandinternationalmarket BusinessDelegations:JAFZAorganizeseventsandextends invitationstoitscustomerstojointhemonbusinesstripstoother countries,enablingthemtogainmarketentriesandtotheirfield ofactivity AdvisingcustomersthroughJAFZAsconsultingofficeson relevantissuesrelatedtosettingupabusiness AttheheartofJAFZAscustomercentricapproachareitsworld classtechnologytoolsDubaiTradePortalandJAFZALinkthat allowclientsfreedomtofocusontheircorebusinesses DubaiTrade.aePortaltheinnovativeportalofDubaiWorld consolidatesalltheservicesofmyDPA,eMirsal,eATAand myJAFZAsiteswithinasinglebilingual(ArabicEnglish)portal. DubaiTrade.aeisanindispensabletoolforthetradeand

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 Ageneraltradinglicenseallowstheholdertoimport,distributeandstore allitemsasperJAFZArulesandregulations.Atradinglicenseallowsthe holdertoimport,export,distributeandstoreitemsspecifiedonthelicense. Anindustriallicenseallowstheholdertoimportrawmaterials,carryout themanufactureofspecifiedproductsandexportthefinishedproductto anycountry.Aservicelicenseallowstheholdertocarryouttheservices specifiedinthelicensewithintheFreeZone.Thetypeofservicemust conformtotheparentcompanyslicense,issuedbytheEconomic DepartmentorMunicipalityoftherelevantEmirateintheUAE.Anational industriallicenseisdesignedformanufacturingcompanieswithan ownershiporaminimum51%AGCC(ArabianGulfCooperation Council).ThevalueaddedtotheproductintheFreeZonemustamountto aminimumof40%.Thislicenseallowstheholderthesamestatusasa localorAGCCownedcompaniesinsidetheUAE. TheDubaiAirportFreeZone(DAFZ) TheDubaiAirportFreeZone(DAFZ)wasformedinaccordancewithLaw No.2of1996fortheEstablishmentofaFreeZoneinDubaiInternational AirportbytheRulerofDubai,HHSheikhMaktoumBinRashidAl Maktoum. ComplementingratherthancompetingagainsttheJebelAliFreeZone,the DAFZprovidessimilaryetdiverseincentivestobothlocalandforeign investorsbecauseofitslocationintheDubaiAirportarea.Companiesor establishmentssetupintheDAFZarealsolegallyregardedasfreezone companiesandsubjecttoDAFZlaw.DubaiAirportFreeZoneisoneofthe fastestgrowingfreezonesintheregionandiscurrentlyhometoover1300 companiesfromvariousindustrysectors,includingaviationindustry, pharmaceuticalproducts,logistics&freight,jewellery,ITandmobile phonesaccessories. DAFZAiswhollyownedbythegovernmentofDubaiandisoneofthe fastestgrowinggovernmentprojectsinthecountry.Itoffers100%foreign ownership.Thecompanyformationperiodis1030days. Visas Dependsonthesizeoftheofficespaceleased.However,norestrictionfor industrial/assemblyunitsoperatinginprebuiltwarehouseandleased landisrequiredfortheactivity.

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Portfacilities DubaiAirport,PortRashid,JebelAliPort. TypesforTradeLicense DubaiAirportFreeZonewillbegrantedanIndustrialLicense,Trading LicenseoraServiceLicensebytheFreeZoneAuthority.Companieshave theoptionofrenewingtheirlicensesforaperiodofeitheroneorthree years.Morethanonelicensecanbeobtained.Ifsuchcompanywishesto conductbusinessandsellitsproductwithintheUAEitmaydosoby appointmentofaUAEofficialdistributororanyothercompanyholdinga validtradelicense.DAFZdoesnotgrantGeneralTradeLicensesto companiesunderanycircumstances. SharjahAirportInternationalFreeZone(SAIFZone) SAIFZoneisanewsymbolofqualityanddedicationtoexcellencea conceptsteepedinmoreefficientoperationsandfewercomplicated procedures. Strategicallyplacedatthecrossroadsofmajortradingroutesbetweeneast andwest,Sharjahoffersexcellentglobal,sea,landandairtransportlinks withaccesstoamarketofmorethan2billionconsumerscoveringmember statesofGCCandtheArabworld,Iran,CIScountries,theAsian subcontinent,partsofAfrica,andtheEasternMediterranean. AdjacenttoSharjahInternationalAirport,andjustafewminutesfrom SharjahCityandPortKhalid,thelocationofSAIFZoneisenhancedbyits secondaryseaportfacilitylocatedontheGulfofOmanatPortKhor Fakkan.The120kmroadtransfercansaveupto48hoursshippingtime, cuttingfreightandinsurancecostsforbothimportersandexporters.With amodernhighwayconnectingbothcoastswithSAIFZone,companies haveaccesstotheunmatchedlogisticaladvantageknownasTheSharjah Link. SAIFZoneisanidealhubforalltypesofbusinessthatrequirefast, efficientandatroublefreeworkingenvironment.SAIFZoneprovides stateoftheartfacilitieswithfullyservicedandfurnishedexecutiveoffice suiteswithreception,prebuiltwarehousesintwosizeswithadjacent officespace,serviceandleaselandforunrestrictedprivatedevelopment, containerparkingareaandtemporarystoragecapability. Fromamere55companiesin1995,theyearinwhichthezonestarted operating,therearenowmorethan3,900companiesdoingbusinessinthe zone,makingtheSAIFZonethefastestgrowingFreeZoneintheregion.

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SharjahistheindustrialheartlandoftheUAE,accountingformorethen 40%ofthecountrysindustrialGDP.Itsgeographiclocationhasledtoa uniqueintegrationofland,seaandairlinks.Thisinturnoffersunbeatable logistical,warehousinganddistributionadvantages.Theonlyemirate withseaportsontheArabianGulfandtheIndianOcean,Sharjahhas carvedanicheintheseaairtrafficsector,experiencinggrowthratesof morethan50%inthelastfewyears.Speed,reliabilityandcost effectivenesshavebeenthecornerstonesofSharjahsindustrialpolicy.A stablegovernment,proactivepolicies,solidindustrialbaseandan attractiveincentivespackagehavedrawnaveryhighproportionofforeign investmentsintoSharjahinrecentyears. HamriyahFreeZone(HFZ) TheFreeZonedevelopmentwasannouncedintheAmiriDecreeNo.(6), dated12thNovember1995. ThevisionoftheHamriyahFreeZoneAuthority(HFZA)istoprovidethe internationalbusinessinvestorwithauniqueinvestmentopportunityina freemarketenvironment.Tobeabletoofferastrategicbusinessadvantage totheinvestor,theHFZAiscurrentlydevelopingfirstclassservicesand facilitiesthatwillcomplementits14mdeepwaterport. AstheFreeZoneisdesignatedaGreenZone,itistheintentionofthe HFZAtoattractenvironmentallyfriendlyindustries.Landisallocatedfor heavy,light,serviceandcommercialindustries. ActivitiesAllowedbytheFreeZone AlmostanyactivityispermittedbyHFZaslongastheactivityis environmentallyfriendlyandinaccordancewithlocalrules.Thoughitis preferred,companiesdonothavetoaddvaluetotheirproducts.Investors canshipgoodsinandoutofHFZwithoutnecessarilyaddinganyvalueat all. AjmanFreeZone(AFZ) AjmanFreeZone,establishedin1988,wasgrantedautonomousstatus undertheAmiridecreeno.3of1996.AjmanFreeZoneAuthorityhasbeen namedasthesoleregulatoryagencyfortheFreeZoneintheEmirate.The formationoftheFreeZoneAuthorityin1996hasgivengreatimpetusto industrialactivityintheFreeZone,whichhasresultedinquadruple growthinitsnumberofcompaniesduringthelastyearalone. AmassivemultimillionDirhamsdevelopmentplan,onanareaofmore thanamillionsquaremetres,isunderprogressattheFreeZone.On completionwillbeabletoaccommodate600companies.Strategically

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situatedattheentranceoftheArabianGulf,AjmanFreeZoneiswell placedtoservetheeasternandwesternmarkets.Ajmansproximityto SharjahandDubaiprovideseasyaccessibilitytothetwointernational airportsandfourports.AjmanPort,servingmorethan1,000vesselsa year,hasemergedasanimportantmaritimefocalpointtoday.Ithas12 berths.AmassivedevelopmentplanforAjmanports,currentlyunder progress,aimstoenhanceitsfacilitiestoworldclassstatus. RasAlKhaimahFreeTradeZone(RAKFTZ) RasAlkhaimahFreeTradeZone(RAKFTZ)hasalreadydevelopedintoa worldclassbusinesshubwithstateoftheartinfrastructureandhitech facilitiesforindustrialgrowthanddevelopmentinlessthantenyearsofits inception.TheFreeZone,offerscustomizedsupportservicestoits investors.Itisoneofthemostcosteffectivefreezonesintheregionand mostimportantly,itoffersanabsolutelytroublefree,customerfriendly environment,whichisveryimportantforthesuccessofanyenterprise. RAKFTZthroughitsmarketingandawarenesscampaignhascreateda nameforitselfknownaroundtheworld.Ithasregisteredmorethan4500 companiesthatoriginatefrom106countriesworldwide.RAKFTZs customersarecomingfromdifferentmarketsinMiddleEast,Europe, NorthAmerica&Asiajusttomentionafew. RasAlKhaimahFreeTradeZoneAuthorityhascreatedasystemoffour uniqueFreeZoneParksthatwillsuitandserveeveryinvestoraccordingto theirrequirements.TheFourParksconceptincludestheBusinessPark, IndustrialPark,andTechnologyPark&AlGhailPark,offeringtheoffices, equippedwarehouses&Landfacilities.Situatedatdifferentlocations acrosstheEmirateofRasAlKhaimah,eachParkcaterstothespecific businessinterestsandactivitiesoftheRAKFTZinvestors. RAKFreeTradeZoneFacilities&Services: TheRAKFreeTradeZoneBusinessPark TheBusinessParkislocatedinthecentralbusinessdistrictofthecity,close tothemodernRAKExhibitionCentre,HiltonHotel&BeachClubandAl ManarShopping&EntertainmentMall. TheRAKBusinessCentreisafreezonefacilitywhichgivesinvestorsan opportunitytostartabusinesswithnohassles.Someofthekeyfeaturesof theRAKBusinessCentrearethefurnished,fullyfunctionalandreadyto useoffices,flexioffices(sharedoffice)&flexidesks(shareddesk)in

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variouslocationsrenderedinconsistencewiththeinvestorsconvenience. Alloftheseareofferedathighlycosteffectiverates. TheRAKFreeTradeZoneIndustrialPark LocatedalongtheRasAlKhaimahcoastalroadapproximately15km northofRasAlKhaimahandimmediatelyadjacenttoHulaylahIsland, whichisapproximately6kmfromSaqrPort.Itisdevelopedfor constructionofHeavyIndustries&Warehousingandincorporates abundantenergysupply. Plotsizesareprovidedtosuitindividualclientrequirementsandarefully servicedwithwater,electricityandtelecommunications.Thefacilities includeonsiteemployeeaccommodation,CustomOffice,Operation SupportiveServicesCentre&otheradministrativeandservicesupport centrelocatedwithinthePark. TheRAKFreeTradeZoneTechnologyPark LocatedatSouthofRasAlKhaimah,TheTechnologyParkcloseproximity toDubaiviatheEmiratesRoad,whichisalsowellknownascenterof attractionforthebusinesscommunityandincloseproximitytotheRasAl KhaimahInternationalAirport. Coveringanareaof100hectares,itislocatedopposite5Starresortswith an18holegolfcourse(AlHamravillage&resort).Itissitedinarapidly expandingareadevotedtoLightIndustries&automatedmanufacturing andcapitalintensivequalitylifestyleprojects. AlGhaylindustrialpark Coversanareaof400hectaresanditcateredfortheheavyindustriesthat dealwiththeconstructionmarketsuchassteelfabrication.Ithasa strategiclocationsinceitisclosetoSharjah&Fujairah. Theparkisstillunderdevelopmentandcontainsdifferentsizeofplots thatsuitvariouscompaniessize. TypesofTradeLicensesAvailable ThecompaniesacceptedforoperationinRasAlKhaimahFreeTradeZone willbegrantedanyoneofthefollowinglicenses:IndustrialLicense, GeneralTradingLicense,CommercialLicense,Consulting&Service LicenseandRealEstateLicense. FujairahFreeZone(FFZ) FujairahFreeZone(FFZ),whichwasawardedanISO9002certificatein 1999,offersbusinessesthegeographicaladvantageofaneastcoastportas

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wellasthebenefitsofpartnershipwiththeFujairahGovernment.FTZhas beengrowingatarateof2022%annuallyandcurrentlyhasmorethan 650companieslicensedbythezone,andmorethan320projectsregistered atthezone,involvinganinvestmentofmorethanDh332million. AhmedBinRashidFreeZone(UmmAlQuiwain) AhmedBinRashidFreeZonewasestablishedinApril1998and55Kms awayfromDubaiInternationalAirport.Thetotalsizeofthefreezoneis 118,000sq.mtrs. TheFreeZonecomplexconsistsof845mofquaywallwith400mcapable ofhandlingoceangoingvessels,and118,000moflandreservedforlight IndustrialDevelopment.Standardservicesofwater,electricity, communications,andlabouraccommodationareallavailable.Inaddition, theFreeZoneprovidesacomprehensiveadministrativeandlogistic supporttothetenant. AbuDhabiAirportFreeZone(ADAFZ) TheAbuDhabiAirportFreeZone(ADAFZ)isbeingestablishedbyAbu DhabiAirportsCompany(ADAC).ItscreationmarksamilestoneinAbu Dhabisplanstoestablishitselfasadynamicbusinesscentre.Thefreezone willtakeadvantageofAbuDhabiInternationalAirportsstrategic geographicalpositiononthecrossroadsbetweeneastandwest,andthe largescaleeconomicdevelopmentoftheEmirate. ADAFZowner,ADAC,wasincorporatedinMarch2006tospearheada majorredevelopmentoftheEmiratesaviationinfrastructure.ADACs creationwaspartofanambitiousrestructuringinitiativelaunchedbythe GovernmentofAbuDhabi,aimedatdeliveringbetterservicestosupport theEmirateslongtermeconomicandtourismstrategiesandtohelpbuild amorevibranteconomythatattractsandpromotesprivatesector investment. ThecreationofAbuDhabiAirportFreeZone(ADAFZ)isalignedwith ADACsobjectiveoffinancingitsAirportdevelopmentprogramme, generatingnonaeronauticalrevenues,andminimizingGovernment grants. ThemedFreeZones TheseThemeFreeZonesareavisionofH.H.SheikhMohamedBinRashid AlMaktoum,theRulerofDubaiandVicePresidentoftheUAE.This ThemeFreeZoneorIndustryspecificfreezoneprovidethesamebenefits asregularfreezonesenumeratedintheabovesection.Thedistinction beingthattheseareIndustryspecificfreezone.

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 DubaiInternetCity DubaiInternetCityisthefirstcompleteinformationtechnologyand telecommunicationscentreintheworldtohavebeenbuiltinsideafree tradezone.DubaiInternetCityoffersmodern,readytooperate,fully servicedofficespacecateringforthespecificneedsoftodaysnew economycompanies.Theseofficesoffercuttingedgetechnologyand providebothwiredandwirelessnetworks.

DubaiInternetCityisthebiggestITbuildintheMiddleEast,andhasthe latestgenerationinternetprotocoltelephonysystemintheworld. Setsofintellectualpropertyandcyberregulationshavebeenimplemented toprotecttheintegrityofebusiness.Adedicatedgovernmentagencyhas beencreatedtoensureenforcementoftheseregulations. DubaiInternetCityhasissuedlicencestoahostofglobalinformation technologycompanies.Microsoft,OracleandHewlettPackardhave alreadyidentifiedlongtermobjectiveshere. DubaiMediaCity(DMC) DubaiMediaCity(DMC)isdesignedtobetheregionsmediahub.DMC hasbeenestablishedbytheDubaiTechnology,ECommerceandMedia FreeZoneAuthoritytoprovidetheinfrastructureandenvironmentthat willenablemediarelatedenterprisestooperategloballyoutofDubai. GlobalentitiessuchasCNN&CNBChavesetupofficesinDMC. DubaiGoldandDiamondPark(DGDP) Dubaihasmovedtowardsexpandingitsjewelleryindustrybybuilding theGoldandDiamondParkinDubaiatacostof$40million.Theproject, whichispartofthegovernmentspolicytoachieveeconomicbalanceand adiversificationofincomesources,isalsodesignedtoenhancethecitys economicinfrastructure. OfficiallyopenedinMay2001,thisprojectaimstosatisfyincreasingworld demandformanufacturedgoldanddiamond,andprovideallfacilities

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underoneroofinasecure,comfortableandbusinessfriendly environment. TheparkispartoftheJebelAliFreeZone,givingcompaniesthesame benefits.Thefacilitiesincludeinfrastructure,officeandmanufacturing units,650carparksandlandscaping.Italsohasgovernmentcentresthat providenecessarycertificationandapprovalofgoldcontentandquality. KnowledgeVillage(KV) KnowledgeVillageisavibrant,connectedlearningcommunitythatwill developtheregionstalentpoolandaccelerateitsmovetotheknowledge economy.ItissetuptopositiontheDubaiTechnologyandMediaFree Zoneasacentreofexcellenceforlearningandinnovation.Thisnew educationandtraininghubalsocomplementstheFreeZonesothertwo clusters:DubaiInternetCity,astheIThub,andDubaiMediaCity,asthe mediahub. DubaiMultiCommoditiesCentre(DMCC) DubaiMultiCommoditiesCentreoffersaworldclasshubforgold, diamondandcommoditiestrade.Ithasbeencreatedasastrategicgoalof theDubaiGovernmenttoestablishacommoditymarketplaceinDubai andwaslaunchedinApril2002.

DMCCoffersauniqueopportunityforparticipantsinawiderangeof metalsandcommoditiesindustries.Itprovidesfacilitiesthatbring togethergold,diamondandtradeinotherselectedcommodities.The centreaimstoattractkeyplayersthroughoutthevaluechainofeachof theseindustrysectors,togetherwithrelevantsupportindustriessuchas finance,logisticsandinsurance. TheDubaiHealthCareCity(DHCC) TheDubaiHealthCareCity(DHCC)hasbeenlaunchedtofillthegap betweenEuropeandSouthEastAsiaandestablisharegionalgatewayfor customersandpatientstoreceiveworldclasshealthcareandenjoyfirst classmedicalandwellnessservices.Dubaiwilloffersignificantbusiness opportunitiestolocalandinternationalinvestors,regionalbusinessesand

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theglobalhealthcareindustrybyestablishingDHCC.Itwillcreatean integratedhealthcarecommunityprovidingcomprehensivemedical treatmentandpreventionportfoliowithanoptimisedprocessand patient/customerflow. ThepurposeofDHCCinitiativeistoprovidethehighestquality healthcareservicestomedicalcareandwellnessseekersfromtheregion bycreatingaworldclassclusterofhealthcareprofessionalsandservice providersattheheartofDubai.DHCCaspirestoprovidestateoftheart medicalcareservicesinselecteddisciplinesrelevanttopatientneedsinthe region. DubaiInternationalFinancialCenter(DIFC) DubaiInternationalFinancialCentre(DIFC)isacapitalmarketdirectly modelledontheCityofLondonandWallStreet.Thislatestinitiativefrom DubaiisexpectedtoestablishtheEmirateandtheUAEasacrucialcentre inglobalfinanceandasaregionalcentreoffinancialservicesbetween SingaporeandFrankfurt.TheDIFCisdesignedtobesimilartofacilitiesin London,NewYork,Singapore,HongKongandTokyo.

DubaiMaritimeCity DubaiMaritimeCityisoneofthebusinessunitswithinthePortsCustoms andFreezoneCorporation,partofthegovernmentownedorganisation thatdevelopedtheworldsfirstmanmadePalmIsland,JebelAliFree ZoneandtheinternationallyrenownedDPWorld.Itincorporatesthe stabilityofpublicsectorbackingtogetherwiththeenergy,driveand ambitionofaprivatesectorenterprise.Dredgingandrockworks commencedinAugust2003. Thisisaprojectofphenomenalproportions,creatingapeninsula reclaimedfromtheseacoveringover2.16millionsquaremeterswithopen

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seaaccessandatrulystunninglocationformaritimebusinesses.Asit evolves,itwillclustertogethereveryamenitythattheglobalmaritime communitywillneedtobuild,work,liveandlearn. DubaiMaritimeCityispresentlyover87%reclaimed. DubaiLogisticsCity(DLC) DubaiLogisticsCityistheworldsfirsttrulyintegratedlogisticsplatform withalltransportmodes,logisticsandvalueaddedservices,including lightmanufacturingandassembly,inasinglecustomsbondedandFree Zoneenvironment.ItispartoftheDubaiWorldCentralwiththe upcomingDubaiWorldCentralInternationalAirportandadjacenttothe JebelAliPortandFreeZone. DubaiOutsourceZone(DOZ) DubaiOutsourceZoneprovidesacomprehensiveinfrastructureand environmentforoutsourcingandoffshorecompaniestosetupglobalor regionalhubsservicingtheworldwidemarket. DOZsofferingincludes100%exemptionfromtaxes,arguablytheworlds mostreliabletechnologyandcommunicationsinfrastructure,easyaccess totalent,aonestopshopofsupportservicesandthebestpossible workingenvironment. DubaiOutsourceZoneistheperfectbaseforcompaniesthatprovidemid tohighendITandbusinessprocessesoutsourcing(BPO)services.Someof thekeysectorscoveredarefinance,accounting,IT,payrollprocessing, graphicdesign,engineering,biotech,R&Danddesign.Italsoservesasa centrefordisasterrecoveryfacilitiesforcallcentreslocatedoffshore elsewhereintheworld.TheZonecaterstooffshorerequirementsfrom Europe,theUS,theMiddleEast,AsiaandAfrica. DubaiOutsourceZoneisaninitiativeofDubaiInternetCity,thestateof theartglobalhubwithinDubaithathousesmorethan700oftheworlds ICTcompanies,includingthegiantssuchasMicrosoft,Oracle,HP,IBM, Dell,Siemens,Canon,Logical,EDS,SonyEricsson,SunMicrosystems, SAPandCisco. DubaiTechnoPark(DTP) TheTechnoParkisdesignedtoattractforeigninvestmentinresearchinoil andgas,desalinationandenvironmentmanagement.Itwaslaunchedin theyear2002bythePorts,CustomsandFreeZoneCorp(PCFC). ItsauniquebusinesszonethatgivestheadvantageifDubaislocation whileofferingacommonplatformtothreeoftheMiddleEastregionscore

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industriesWaterDesalination,Oil&Gas,andEnvironmentalResearch. AffiliatedwiththeInternationalAssociationofScienceParks(IASP), TechnoParkoffershightechnologycompaniesauniquelysupportiveand likemindedcommunityinwhichtowork. DubaiSiliconOasisAuthority(DSOA) DubaiSiliconOasisAuthority,a100%ownedentitybytheGovernmentof Dubaiisafreezone,strategicallyplacedontheEmiratesroad. DSOAsurbanmasterplannedcommunityspans7.2squarekilometresof stateoftheartofficetowers,R&Dandindustrialzones,educational institutions,luxuryapartments,villas,hotels,healthcareandafullrangeof lifestylefacilitieswhichtranslateintoadynamiccommercialandsocial environment. Businessescanflourishundertheunrivalledpackageofincentives, including100%ownership,andhighendITinfrastructurethatallows companiestobeginoperatingimmediately. DubaiStudioCity(DSC) Designedtoacceleratethegrowthofthebroadcast,film,televisionand musicproductionindustries,DubaiStudioCitywillbeanultramodern facilityintegratingeverycomponentunderoneroof.Spreadacross22 millionsq.ft.itwillincludeproduction,postproduction,equipmentrental, businesscentreandsatellitefacilitiesamongothers. Itwillalsohaveresidentialareas,hotels,anentertainmentcentre,film schoolsandtraininginstitutes.Thisuniquecombinationofworldclass infrastructure,qualifiedprofessionalsanduniquenetworking environmentwillmakeittheideallocationforcreativepeopletounleash theirimagination. DubaisInternationalMediaProductionZone(IMPZ) DubaisInternationalMediaProductionZoneseekstocreateaunique clusterenvironmentformediaproductioncompaniesfromacrossthe industryvaluechain,andfromacrosstheworld,tointeractand collaborateeffectively.Cateringexclusivelytocompaniesinthe3P industriesPrinting,PublishingandPackagingIMPZisaninitiativeof thevisionaryDubaigovernment,underthepatronageofparentcompany, DubaiHolding. Asamasterdeveloper,IMPZwillprovideanenvironmentofgrowthby buildingkeyfacilities,investingininfrastructure,andformingaunique freezonethatincorporatesindustrial,commercial,andresidentialand

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communityserviceprojectsunderitsmantle.Thevastcomplexwillbe housedonaterritoryofover43millionsquarefeetofland,intheheartof commercialDubai. TheIMPZinitiativeispartofDubaisvisiontodevelopitselfintoaglobal mediahub.Assuch,itwillprovideaprobusinessenvironment, sophisticatedtechnologyandcommunityinfrastructuretosupportand fosterthegrowthofmediaproduction. DubaiBiotechnology&ResearchPark TheDubaiBiotechnologyandResearchPark(DuBiotech)isascienceand businessparkdedicatedtothebiotechnologyandpharmaceuticalindustry andismodelledonthefreezoneconcept. AmemberofDubaiHolding,DuBiotechwillaccommodatea biotechnologyindustryandfacilitategovernmentfundedR&D. DuBiotechsworldclassinfrastructureincludesfacilitiesandservicesfor incubators,R&Dlabs,biotechrelatededucationalandresearch institutions,manufacturingaswellasorganizationsfromsupportingand convergentindustries. DubaiCarpetFreeZone TheCarpetFreeZonewilltargetthehandmadecarpetsectorthatis proposedtobebuiltinDeiraDubai. IndustrialCityofAbuDhabi ICADislocated30kilometresfromthecentreofAbuDhabiCityand25 kilometresfromAbuDhabiInternationalAirport.Ithasshownveryrapid recentgrowthwith355majormanufacturingcompaniesemployingmore than30,000workers.TheCityprovidesallbasicservicesandfacilitiesfora widerangeofindustrialactivities. Offshorecompanies TheUnitedArabEmiratesoffersanopportunityfortheestablishmentof anoffshoreentityinajurisdictionthatofferscertainfacilitiesnotavailable inotherareas. Offshorecompaniesaregovernedbythejurisdictionunderwhichtheyare incorporated.Howeverinmostcasestheycanenterintoarrangementsand contractswhichcanbemadesubjecttothelawsofotherjurisdictions. BankingFacilities Oneofthemostimportantaspectsofmanaginganoffshorecompanyis personalorcorporatebankingfacilities.UAEnotonlyoffersgreatbanking

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supportfromlocalbanksbutalsoallleadinginternationalbankshavetheir presencehere. OffshoreCentresinUAE JebelAliFreeZone JebelAliFreeZone(JAFZ)islocatedintheemirateofDubaiintheUnited ArabEmirateswhichis40KmsawayfromtheDubaiInternational Airport.TheJebelAliFreeZoneisrunbytheJebelAliFreeZone Authority(JAFZA). TheJebelAliFreeZoneAuthorityintroducedregulationsin2003forthe establishmentofJebelAliFreeZoneOffshoreCompanies.The internationalbusinesscommunitycannowestablishoffshoreentitiesat JAFZinlinewithotherinternationaloffshorejurisdictions. JAFZcaterstotheDubaiPortwhichranks13thintheworldintermsof containertrafficandisoneoftheworldslargestandfastestgrowingfree zones.JAFZAoffersitscustomersworldclassinfrastructuresupported withquality,valueaddedservicesandincentives.Itfurtherprovides communityamenities,enhancingadynamicandthrivingbusiness environment. FeaturesofJAFZAregisteredoffshorecompaniesare: LimitedLiabilityCompany Nominimumcapitalrequirement Requirementtohaveanapprovedregisteredagenteitherwithin theFreeZoneorintheEmirateofDubai Minimumoneshareholder,noupperlimitonmaximumnumber ofshareholders Minimumtwodirectors Appointmentofonesecretaryandmanageriscompulsory Bearersharesnotpermitted Nopersonalorcorporateincometax Issueofsharesofonlyoneclasspermitted Requirementtohaveaccountsauditedonannualbasis.

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Offshorecompaniesareallowedto: Havecontactswithlegalconsultants,lawyers,accountantsand auditors HavebankaccountinUAE BecomeshareholdersinaneworexistingFZE,FZCOoranLLC. HoldshareholdersanddirectorsmeetingwithinUAE Holdleaseofpropertyforuseasaregisteredofficeorownreal estatepropertyapprovedbytheauthorities CarryoutInternationalTrading. Offshorecompaniesarenotallowedto: CarryonbusinesswithpersonsresidentinUAE OwnaninterestinrealestatepropertysituatedinUAE,otherthan aleasepropertyreferredtointheregulationsorapprovedbythe authorities Carryonabankingbusiness Carryonbusinessasaninsuranceorreinsurancecompany, insuranceagentsorinsurancebrokers Carryonanyotherbusinesswhichmay,byregulationsbe prohibitedbytheauthorities. RasAlKhaimahFreeZone RasAlKhaimahbegananambitiousphaseofdevelopmentincluding investmentsininfrastructureimprovement,tourism,shopping,andefforts toattractindustrialandcommercialenterprises.Amongthemost importantoftheseendeavorswastheestablishmentoftheRasAl KhaimahFreeTradeZone. AsthemostnorthernemirateintheUAE,RasAlKhaimahoffersswiftand easyaccesstoneighboringcountriesthroughouttheGulfandbeyond.Itis theclosestemiratetothemainshippinglanetraversingtheStraitsof HormuzandtoallofthenorthernmarketssuchasIran,Pakistan,India, CIScountriesandChina. ThegeographiclocationandproximityofSaqrPortpositionsRasAl KhaimahFreeTradeZoneastheportforallnorthernmarkets. RasAlKhaimahOffshorecompaniesofferthefollowingfeatures: Companieswillhavealimitedliabilitystatus Companiescanbeformedwithaminimumofoneshareholder andthereisnoupperlimitonthenumberofshareholders Minimumofonedirectorandsecretaryisrequiredandthereisno restrictioninonepersonassumingtheseofficesorexercisingthe saidcapacities

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Nominimumcapitalrequirement Bearersharesarepermitted.However,thebearershareholdingis permittedwitharestrictionthatitshallbeheldbytheregistered agentactingasanomineeonbehalfofthebeneficialshareholder. Thebeneficialshareholdersdetailsandanychangethereofwould requiretobefurnishedtotheRAKFTZ Shareholdersanddirectorsarenotrequiredtobepersonally presentbeforetheauthoritiesforincorporatingthecompany Requirementtohaveanapprovedregisteredagenteitherwithin theFreeZoneoroutsidetheFreeZonebutwithinUAE Internationaltradeisallowed CanholdpropertiesandinvestmentsanywhereintheUAEand elsewhere Nopersonalorcorporateincometax.

RasAlKhaimahOffshoreCompanyareallowedto: Havecontactswithlegalconsultants,lawyers,accountantsand auditors HavebankaccountinUAE HoldshareholdersanddirectorsmeetingwithinUAE. RasAlKhaimahOffshoreCompanynotallowedto: CarryonbusinesswithpersonsintheUAE Carryonabankingbusiness Carryonbusinessasaninsuranceorreinsurancecompany, insuranceagentsorinsurancebrokers Carryonanyotherbusinesswhichmay,byregulationsbe prohibitedbytheauthorities.

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5.

Labour

AdministeredbytheFederalMinistryofLabourandSocialAffairs,labour lawintheUAEislooselybasedontheInternationalLabourOrganisations model,UAELawNo.8of1980,asamendedbyLawNo.12of1986(the LabourLaw). Itgovernsmostaspectsofemployer/employeerelationssuchas;hoursof work,holidayleave,terminationrights,medicalbenefitsandrepatriation. TheLabourLawisprotectiveofemployeesingeneralandoverrides conflictingcontractualprovisionsagreedunderanotherjurisdiction,unless theyarebeneficialtotheemployee. Tradeunionsdonotexist.However,therehavebeenrecenttalksto legalisesuchassociationstoprotecttheworkingcommunity.Thesetalks are,however,stillinapreliminarystage.Inthecaseofadisputebetween employerandemployee,oroverinterpretationoftheLabourLaw,the MinistryofLabourandSocialAffairswillinitiallyactasadjudicator.Ifa partywishestoappealanysuchdecision,itcantakeitscasetocourt. Strikesandlockoutsareforbidden. Thenormalmaximumworkinghoursareeighthoursperdayor48hours perweek.However,thesehoursmaybeincreasedtoninedailyforpeople workingintheretailtrade,hotels,restaurantsandothersuch establishments.Similarly,dailyworkinghoursmaybereducedfor difficultordangerousjobs.Manybusinessesworkonatwoshiftsystem (forexample,8am1pmand4pm7pm).AsinallMuslimcountries, Fridayistheweeklydayofrest. Inpractice,commercialandprofessionalfirmswork4045hoursaweek andgovernmentministriesabout35.Theweekendforgovernment workersisnowFriday&Saturday.DuringtheMuslimholymonthof Ramadan,normalworkinghoursisreducedbytwohoursperday. Guidingprinciples AllforeignnationalsmustobtainvalidentryvisastoentertheUAEwith theexceptionofnationalsofGCCcountries.Foreignnationalsmayenter theUAEundertransitvisas,visitvisasorresidentvisas.Noquotasystem isimposedonimmigrationintotheUAE. Transitvisasarevalidforupto14days.Ashorttermvisitvisaisvalidfor 30days.Alongtermvisitvisaisalsoavailablefor90days. 40

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ForeignnationalswishingtotakeupemploymentintheUAEmustobtain employmentvisas,whichareissuedbytheMinistryofLabour,and residencevisaswhichareissuedbytheDepartmentofImmigration. Employmentvisasarevalidforthreeyearsandarerenewablefor additionalthreeyearperiods. Residencevisasaregrantedtodependentsofforeignnationalswhohave employmentvisasandwhosatisfycertainincomeandstatusconditions.

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6.

Taxation

ThereisnofederaltaxlegislationintheUAE;insteadeachEmiratehasits owntaxlaw. ThefollowingtaxesarenotapplicableintheUAE: Personalincometax Capitalgaintax Valueaddedtax Withholdingtax Corporatetax TherearecurrentlylegislationsinforceintheEmiratesofAbuDhabi, DubaiandSharjahestablishingageneralcorporatetaxationregimethe AbuDhabiincometaxdecreeof1965(anditsamendments),Sharjah IncomeTaxDecreeof1968(andamendments)andDubaiincometax decreeof1969(andamendments). Inpracticehowever,onlyoil,gasandpetrochemicalcompaniesand branchofficesofforeignbanksarerequiredtopaytaxes.Thereareother formsofindirecttaxationonindividualsandcorporatesintheformof municipalityfees,transferfeeonpropertyandhousingfee,leviedbythe respectiveauthorities.

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7.

Accounting & reporting

Theregulatoryauthoritysince1980hasbeentheUAECentralBank.Some 46commercialbanksoperateintheUAE,withatotalofaround367 branches,ofwhichabout25areforeignbankswithabout200branches. Federallawrestrictsforeignbankstonomorethaneightbrancheseach. Formediumtermorlongtermindustrialfinance,localcompaniescan approachtheEmiratesIndustrialBank,setupbytheUAEgovernment withaninitialcapitalofDh500million.Itsmainobjectiveistohelp developtheprivatesector.However,atrendisbeingseenwheremost banksareparticipatinginlargesyndicatedlendingtoinfrastructure projectsandotherlargeventuresintheregion. Bankingcreditfacilities(fundedandnonfunded)aretypicallystructured forworkingcapitalrequirementsofbusinesses.Longtermfinancingis availablebutonaveryselectivebasisorelseonalargelycollateralised basis.Leasingandhirepurchaseareavailablefromlocalfinance companiesspecialisinginthisbusiness.Factoringhasbeenrecently introducedintheUAEthoughonlyafewinstitutionshavebeenoffering thisservice. Importandexportfinancingcanbearrangedthroughcommercialbanks. Thebanksoftenrequiremargins.Suchmarginsandthefacilitiesofferedby thebankswillmainlydependontheirrelationshipswiththeircustomers.

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8.

UHY firms in the UAE

UHYSaxenawasestablishedin1992andinitiallyfocusedonservicingthe accountingandauditingneedsofitsclients.Thefirmhassincethen diversifiedtocorporateformationsintheUAEfreezone,mainland companiesandoffshorelocation,inadditiontoprovidingvastrangeof consultancyservices,bothintheUnitedArabEmiratesand internationally. Thefirmhasateamofqualifiedprofessionalsonitspanelsupportedby wellexperiencedandtrainedstaff.Thecoreteamofthefirmhasarich, collectiveexperienceandtheirdiverseskillsetspanningacrossfunctional domainsenablethefirmtodelivervalueaddedsolutionsforclients. Tocomplementtheinhouseskillsetsofthefirmithasalsoestablished strongassociationswithmanyindividualandcorporatespecialistsin variousfieldstomeetclientsspecialistneeds.Suchassociationscover: Internationaltax Privatebanking Internationalaccountingpractices Legaladvisory Trustservice Executivesearch Informationtechnology. Sinceinception,thefirmsclientelehasgrowntoincludemorethan1000 companiescoveringwideareasofbusinessandtrade.Theyinclude government,privateandinternationalclientsbothcorporateand individuals.Thefirmhasasimplemission:Toaddvaluetothebusinesswe serve. Dubaioffice 406AtriumCentreBuilding KhalidBinWaleedStreet POBox23271 Dubai UnitedArabEmirates Tel: +97143517007 Fax: +97143517157 Email: mail@uhyuae.com JebelAliFreeZoneoffice LOB15514 44

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POBox17870 JebelAliFreeZone UnitedArabEmirates Tel: +97148814199 Fax: +97148816025 Email: jebelali@uhyuae.com SharjahOffice AlReemPlaza,OfficeNo.408 POBox70828 Sharjah UnitedArabEmirates Tel: +97165745500 Fax: +97165749939 Email: uhysjh@uhyuae.com AbuDhabi 216,EmiratesTowers,HamdanStreet POBox33763 AbuDhabi UnitedArabEmirates Tel: +97124124140 Fax: +97124124111 Email: uhyauh@uhyuae.com

9.

UHY offices worldwide

ForcontactdetailsofUHYofficesworldwide,orfordetailsonhowto contacttheUHYexecutiveoffice,pleasevisitwww.uhy.com

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