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Ekta – 07 |Swetha – 42|Foram – 44|Shaun - 48

About UAE
• Capital- Abu Dhabi
• Area - 83,600 square kilometres
• Currency - United Arab Emirates dirham ( Emirati dirham)
1 UAED = 19.51 Indian Rupees
• Government - Federal Constitutional Monarchy
• Religion- Islam
• Language - Arabic
• Population -9.68 Million
• Natural resource – Petroleum , Natural gas, Oil, Aluminium
• Ease of doing business- 11 (World Bank report)
UAE
PESTLE
• Each Emirate has its own governmental institution.
• The ruling family of each Emirate is a member of the Supreme Council, which is responsible for
policymaking and electing the president and vice president for five-year terms
Political

• High GDP and low unemployment rate


• The government increased spending for infrastructure and job creation
• Highest amounts of Foreign Direct Investment.
Economical • Surge in real estate and shares prices and consumer inflation is elevated

• Islam plays a large role in business


• Religion is an important matter in the area, which greatly affects society
Social • Globalization is gradually resulting in a mix of many different cultures within the Emirates.
PESTLE
• The relatively young population is very tech-savvy, which allows companies all across
the UAE to leverage technology
Technological • Ease of getting electricity for business

• Court proceedings in the UAE are time-consuming.


• There are no juries; only a single judge or a three-judge panel (depending on the case)
hears cases.
Legal • All evidence submitted to the court must be in Arabic

• Lack of natural freshwater resources , beach pollution from oil spills


• Marine dumping
Environmental • The UAE also finds itself near a few coastal areas, allowing for easier trade by sea.
SWOT
Strength Weakness
• Free Trade Zones • One needs a network of people in order to
• Ease of doing business for startups expand opportunities
• Recovering & Robust Economy. • Trust must be gained before any business
• Highly developed ports and access to transaction occurs
major sea routes. • State intervention
• Zero personal and corporate taxation. • Not an English common law jurisdiction.

Opportunity Threat
• Large export market • Prevailing political instability
• Trade missions • Rising interest rates
• Increased government expenditure on • Increased tourism competition
infrastructure • Depletion
• Increased bilateral trades
UAE – Imports & Exports
 Exports - In 2017 the United Arab Emirates exported $142B, making it the
32nd largest exporter in the world. During the last five years the exports of
United Arab Emirates have decreased at an annualized rate of -6.7%, from
$181B in 2012 to $142B in 2017. The most recent exports are led by Crude
Petroleum which represent 28.1% of the total exports of the United Arab
Emirates, followed by Refined Petroleum, which account for 15%.
 Imports - In 2017 the United Arab Emirates imported $175B, making it the
25th largest importer in the world. During the last five years the imports of
the United Arab Emirates have decreased at an annualized rate of -0.7%,
from $179B in 2012 to $175B in 2017. The most recent imports are led
by Gold which represent 9.8% of the total imports of the United Arab
Emirates, followed by Jewellery, which account for 5.94%.
Top 5 export partners
JAPAN • crude oil
• aluminum

• pearls, precious and semi-precious stones, gold, pulp and waste paper,
INDIA sulphur and unroasted iron pyrites
• metalifer ore and metal scrap, organic and inorganic chemicals

• pearls, precious and semi-precious stones, gold, pulp and waste paper,
IRAN sulphur and unroasted iron pyrites
• metalifer ore and metal scrap, organic and inorganic chemicals

• crude oil
SOUTH KOREA • petroleum products such as naphtha and liquefied petroleum gas,
aluminum, copper

THAILAND • crude oil, scrap metal


• gold and silver bar, chemicals
Top five import partners
• cotton, accessories, gems and jewelry, man-made yarn, fabrics, manufacturers
INDIA of metals, cotton yarn, tea
• marine products, machinery and instruments, plastic and linoleum products

CHINA • textile products, clothes, light industrial products, handicrafts


• machinery and products made from gold, silver, copper, iron, tin

UNITED STATES • transport equipment, machinery, computer & electronic products


• primary metal used for manufacturing, chemicals

GERMANY • machineries, electronics, chemical products


• iron, steel

JAPAN • transport equipment, electrical machinery, general machinery


• foodstuff, raw materials, mineral fuels
Trade between India and UAE
• Almost 9.2 percent of the total import of UAE is from India.
• The UAE has become India's third largest trading partner after the US and China as bilateral
trade hit $60 billion during financial year 2018-19.
• Exports from India to UAE totaled $30.2 billion while exports from the UAE to India reached
$29.8 billion.
• Bilateral trade between the UAE and India had grown from $52 billion in 2017 to $57 billion
in late 2018. The two nations have set $100 billion trade target by 2020.
• India is the UAE's second largest trade partner, and as the region's leading trade enabler,
keen to maintain these excellent trade ties and create a relationship that will allow both
countries to prosper.
Exports from India to UAE
Precious
stones,
cultured or
natural
Organic pearls, metal Mineral
Chemicals, Waxes,
inorganic Mineral Oils,
chemicals, Mineral Fuels

Electric
equipment
and Stitched &
machineries,
Boilers,
INDIA Unstitched
clothes
sound
recorders

Cereals,
Citrus fruit Steel – Iron
peels, nuts, and its
and edible articles
fruits
Boats & Ships
Imports from UAE to India
Articles of
jewellery and
Copper wire
precious
metals

Gold, Unwrought
diamonds aluminium

Light vessels,
Petroleum oil
and gases INDIA floating
cranes, etc
India-UAE bilateral trade for the last 3 years
Value in US$ Million

Category 2015-16 2016-17 2017-18

Export 30,290.01 31,175.50 28,145.64

Import 19,445.68 21,509.83 21,739.96

Total Trade 49,735.69 52,685.33 49,885.60


Source : DGCI&S, Kolkata
Highlights of trade, tax & investment laws

U.A.E. can be classified as United States signed a Trade and


Mainland Customs Zones Investment Framework Agreement
or Free Trade Zones (TIFA) with the United Arab Emirates
(UAE)

Effective January 1, 2018, UAE Federal Law No. 19 of


the U.A.E. will start 2018 on FDI has approved 122
applying the Value Added economic activities across 13
Tax (VAT). sectors that will be eligible for
up to 100% foreign ownership.

The customs duties for most items Exports are considered as


are calculated on Cost, Insurance, taxable supplies. However, they
and Freight (CIF) value at the rate of are zero rated, i.e. tax at 0% is
5% applicable on exports.
TARIFF AND NON TARIFF BARRIERS

5% general tariff for all products except tobacco


1. and alcohol, which is subject to 50% & 100%
Respectively

Foreign participation in any domestic


2
company or activity is limited to 49% of the
capital.

3 100% foreign ownership is allowed in any of the


UAE's free zones.

4 Foreign banks can open up to 8 branch and


up to 20% tax

Foreign Companies are not allowed to own


5 agricultural land in UAE.
UAE Memberships and Trade Blocs
No. Year Organization
1 1967 The Organization of the Petroleum Exporting Countries

2 1972 International Monetary Fund (IMF)


The International Civil Aviation Organization
World Bank
3 1973 The Universal Postal Union
4 World Health Organization
5 1974 World Intellectual Property Organization
6 1992 Organization of Islamic Cooperation
7 1994 General Agreement on Tariffs and Trade (GATT)
8 1996 World Trade Organization
9 2004 Signed a Trade and Investment Framework Agreement (TIFA)
Recommendations
• Indian companies should participate in the Expo 2020 exhibition and
thereby develop trade relations further which can be used for benefit of
both the countries.
• Earlier this year, it was announced that the Annual Investment Meeting, one
of the region’s most important investment-focused events, opened the door
for Indian startups to participate and pitch their ventures to international
investors.
• Indian Start ups should apply through Dubai Start up Hub
Business plans

Restaurant/Cafe

Machinery and
transport equipments

Irrigation projects ABC


THANK YOU !

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