The Arab-British Chamber of The Arab-British Chamber of Commerce Commerce Mr Abdeslam El Idrissi Mr Abdeslam El Idrissi Director of Trade Services Director of Trade Services “ “ Our relations with Britain are age-old. We are Our relations with Britain are age-old. We are so close with one another and through this so close with one another and through this mutual closeness we have found mutual closeness we have found that Britain that Britain is worth of respect and trust.” is worth of respect and trust.” The late president and founder of the UAE The late president and founder of the UAE Sheikh Zayed bin Sultan Al Nahyan Sheikh Zayed bin Sultan Al Nahyan
Transcript
The Arab-British Chamber of The Arab-British Chamber of CommerceCommerce
Mr Abdeslam El IdrissiMr Abdeslam El IdrissiDirector of Trade ServicesDirector of Trade Services
““Our relations with Britain are age-old. We Our relations with Britain are age-old. We are so close with one another and through are so close with one another and through this mutual closeness we have found this mutual closeness we have found that that Britain is worth of respect and trust.”Britain is worth of respect and trust.”
The late president and founder of the UAE The late president and founder of the UAE
Sheikh Zayed bin Sultan Al Nahyan Sheikh Zayed bin Sultan Al Nahyan
OverviewOverviewThe Arab world is held together by the twin pillars of Islam and the Arabic language. However, there are huge variations in history, culture and business practice between them.
UK companies wishing to do business in the Arab world will find that they have advanced or developing modern economies and not to dissimilar to those of other overseas markets.
These countries are more likely to require the kinds of goods and services that UK companies offer. particularly in Internationally
Traded Services, such as software or third level education, and in manufacturing sectors.
The Arab world offers a wide range of great business opportunities for UK companies.
Top TipsTop Tips Know your productKnow your product Do some desk researchDo some desk research Language and cultureLanguage and culture Identify your marketIdentify your market Visit the market Visit the market Appoint a good AgentAppoint a good Agent Draft a robust Draft a robust agreement agreement Agree payment termsAgree payment terms Export documentationExport documentation
The Arab StatesThe Arab States
“The Arab States region is home to over 330 million people, living in 22 countries that stretch from Morocco, Mauritaniaand Algeria in the west to Yemen and Oman in the east, which equates to 5% of the world’s population and their combined economies surpass 1 trillion US dollars, and growing by 5% annually”
The 22 Arab StatesThe 22 Arab States1.1. AlgeriaAlgeria2.2. BahrainBahrain3.3. ComorosComoros4.4. DjiboutiDjibouti5.5. EgyptEgypt6.6. IraqIraq7.7. JordanJordan8.8. Kuwait Kuwait 9.9. LebanonLebanon10.10.PalestinePalestine11.11.LibyaLibya
1212. . MauritaniaMauritania
13.13. MoroccoMorocco14. Oman14. Oman15. Qatar 15. Qatar 16. Saudi 16. Saudi
The 22 Arab States The 22 Arab States PopulationPopulation
Algeria Algeria 33.3 million 33.3 million BahrainBahrain 0.7 million 0.7 million ComorosComoros 0.7 million 0.7 million Djibouti Djibouti 0.5 million 0.5 million Egypt Egypt 80.1 million 80.1 million Iraq Iraq 27.5 million 27.5 million JordanJordan 6.1 million 6.1 million Kuwait Kuwait 2.5 million 2.5 million LebanonLebanon 3.9 million 3.9 million Libya Libya 6.1 million 6.1 million Morocco Morocco 33.1 million 33.1 million MauritaniaMauritania 3.2 million 3.2 million
Palestine Palestine 6.5 million 6.5 million Oman Oman 3.3 million 3.3 million Qatar Qatar 0.9 million 0.9 million Saudi Arabia 27.6 millionSaudi Arabia 27.6 million Sudan Sudan 39.3 million 39.3 million SyriaSyria 19.3 million 19.3 million SomaliaSomalia 9.1 million 9.1 million TunisiaTunisia 10.2 million 10.2 million UAE 4.4 millionUAE 4.4 million YemenYemen 22.2 million 22.2 million
Until 1500 :Until 1500 : The area was a centre of sea piracy. The area was a centre of sea piracy.
16th century:16th century: The Portuguese started trade there. The Portuguese started trade there.18th century:18th century: The British started trading in this The British started trading in this region.region.1820:1820: The British force the The British force the shaykhsshaykhs on the coast to on the coast to stop piracy.stop piracy.1853:1853: A treaty signed between the shaykhs and the A treaty signed between the shaykhs and the British. The region is given the name of 'Trucial British. The region is given the name of 'Trucial coast'.coast'.1873:1873: The Trucial Coast is administered by the The Trucial Coast is administered by the British.British.1952:1952: The seven emirates establish a Trucial Council. The seven emirates establish a Trucial Council.1970:1970: Independence is given to the emirates. Independence is given to the emirates.1971:1971: United Arab Emirates established, and is made United Arab Emirates established, and is made up of six of the emirates.up of six of the emirates.1972:1972: Ra'su l-Khayma joins the United Arab Emirates Ra'su l-Khayma joins the United Arab Emirates
The United Arab EmiratesThe United Arab Emirates
Abu Dhabi (Capital) Abu Dhabi (Capital)
Dubai Dubai
Sharjah Sharjah
Ajman Ajman
Umm Al Quwain Umm Al Quwain
Fujairah Fujairah
Ras Al KhaimahRas Al Khaimah
President : H.H. Sheikh Khalifa Bin Zayed Al
Nahyan
Prime Minister & Vice President:
H.H. Sheikh Mohammed bin Rashid Al Maktoum
Rulers of the EmiratesRulers of the Emirates HH President Sheikh Khalifa bin Zayed Al Nahyan,
Ruler of Abu Dhabi HH Vice-President and Prime Minister Sheikh
Mohammed bin Rashid Al Maktoum,Ruler of Dubai
HH Dr Sheikh Sultan bin Mohammed Al Qasimi, Ruler of Sharjah
HH Sheikh Saqr bin Mohammed Al Qasimi, Ruler of Ra’s al-Khaimah
HH Sheikh Hamad bin Mohammed Al Sharqi, Ruler of Fujairah
HH Sheikh Rashid bin Ahmed Al Mu’alla, Ruler of Umm al-Qaiwain
HH Sheikh Humaid bin Rashid Al Nuaimi, Ruler of Ajman
The United Arab EmiratesThe United Arab Emirates The United Arab Emirates (UAE) is the The United Arab Emirates (UAE) is the
largest market in the Middle East for largest market in the Middle East for the UK, in real terms it is the UK's 9th the UK, in real terms it is the UK's 9th largest export market in the world. largest export market in the world.
The UAE’s economy is booming, and its The UAE’s economy is booming, and its programme of investment and programme of investment and privatisation offers good opportunities privatisation offers good opportunities for UK businesses. for UK businesses.
Trade between the two countries is Trade between the two countries is growing at a fast pace and UK growing at a fast pace and UK businesses are increasingly businesses are increasingly participating in the UAE's property and participating in the UAE's property and construction sectors. construction sectors.
UK Exports to UAE UK Exports to UAE
£3.6bn£3.6bn UK Imports from UAE UK Imports from UAE
£1.1bn£1.1bn
Opportunities:Opportunities: TourismTourism Consumer goodsConsumer goods Banking and financeBanking and finance Training Training ITIT Pharmaceuticals Pharmaceuticals Aerospace/airportsAerospace/airports Timber Timber Textiles Textiles Power supply Power supply Know-howKnow-how TeachingTeaching ConstructionConstruction Power generation Power generation
Manufactured goodsManufactured goods Telecommunication Telecommunication Industrial machineryIndustrial machinery VehiclesVehicles Power generation equipmentPower generation equipment Know howKnow how
The MarketThe Market
UAE is the leading regional hubUAE is the leading regional hub A growing marketA growing market A prosperous marketA prosperous market A diversified marketA diversified market An accessible marketAn accessible market
Business EnvironmentBusiness Environment Highly developed economyHighly developed economy Free enterprise systemFree enterprise system State-of-the-art telecommunicationsState-of-the-art telecommunications Sophisticated financial and service sectorSophisticated financial and service sector Top international exhibition and conference Top international exhibition and conference
venuesvenues High quality office and residential High quality office and residential
accommodationaccommodation Reliable power and utilitiesReliable power and utilities First class hotel, hospitals, schools, shops and First class hotel, hospitals, schools, shops and
UAE Business Climate UAE Business Climate No Personal income and capital taxesNo Personal income and capital taxes No corporate taxationNo corporate taxation 100% repatriation of capital and profits100% repatriation of capital and profits No currency restrictionsNo currency restrictions Competitive import duties (5% with many Competitive import duties (5% with many
Open & transparent marketOpen & transparent market English is widely spokenEnglish is widely spoken Full range of banking and Full range of banking and
businessbusiness
servicesservices First class infrastructureFirst class infrastructure Pro-business government policiesPro-business government policies Free zonesFree zones
Doing Business in UAE
UAE is a member of the WTOUAE is a member of the WTO No foreign-exchange controlsNo foreign-exchange controls Customs Valuation & Import TariffsCustoms Valuation & Import Tariffs
Calculated on the CIF value at the Calculated on the CIF value at the rate of 5%rate of 5%
Intoxicating liquors: 50% of the CIF Intoxicating liquors: 50% of the CIF valuevalue
Tobacco products: 100% of the CIF Tobacco products: 100% of the CIF valuevalue
UAE Free ZonesUAE Free Zones
Further to its strategic location between Europe and Asia, the UAE has Further to its strategic location between Europe and Asia, the UAE has established numerous Free Trade Zone Areas to give businesses an established numerous Free Trade Zone Areas to give businesses an additional incentive to be located there. additional incentive to be located there.
The Free Trade Zones in the UAE are well equipped with all the The Free Trade Zones in the UAE are well equipped with all the amenities, facilities and communication infrastructure required to set amenities, facilities and communication infrastructure required to set up a business. Furthermore, 100% foreign ownership is allowed with up a business. Furthermore, 100% foreign ownership is allowed with no recruitment or sponsorship requirements. Corporate tax and no recruitment or sponsorship requirements. Corporate tax and customs duty exemption on imported raw materials and equipment customs duty exemption on imported raw materials and equipment and no levy on exports and imports are some of the other benefits.and no levy on exports and imports are some of the other benefits.
Jebel Ali Free ZoneJebel Ali Free Zone SaadiyatSaadiyat Free Zone Free Zone HamriyahHamriyah Free Zone ( Free Zone (SharjahSharjah)) Ajman Free ZoneAjman Free Zone SharjahSharjah Airport Free Zone Airport Free Zone
Doing Business in UAE Sell directly to dealers and distributors Sell directly to dealers and distributors Commercial agency arrangementsCommercial agency arrangements Agent must be a UAE national/companyAgent must be a UAE national/company Agreement to be registered with Ministry of Economy Agreement to be registered with Ministry of Economy
and Commerceand Commerce Branch or representative officeBranch or representative office
• • 100% foreign ownership permitted100% foreign ownership permitted• • Local sponsor must be appointedLocal sponsor must be appointed
Limited liability companyLimited liability company•• foreign ownership restricted to 49%foreign ownership restricted to 49%• • local partner is requiredlocal partner is required
Free zone establishmentFree zone establishment• • 100% foreign ownership100% foreign ownership
No sponsor or partner requiredNo sponsor or partner required • • no import dutiesno import duties
Free Zone Incentives
100 per cent foreign ownership100 per cent foreign ownership Exemption on all import and re-export dutiesExemption on all import and re-export duties 100 per cent repatriation of capital and profits100 per cent repatriation of capital and profits Freedom from corporate taxation for 50 years Freedom from corporate taxation for 50 years
with anwith an option to renewoption to renew
No personal income taxesNo personal income taxes An abundant and inexpensive energy supplyAn abundant and inexpensive energy supply Simple, efficient recruiting proceduresSimple, efficient recruiting procedures High level of administrative support from High level of administrative support from
Top 5 Source Countries Top 5 Source Countries India (1)India (1) China (2)China (2) USA (3) USA (3) UK (4) UK (4) Japan (5) Japan (5) Singapore (15)Singapore (15)
Imports
DevelopmentsDevelopments
• World’s 3 largest man-made World’s 3 largest man-made islandsislands• The Palm JumeirahThe Palm Jumeirah• The Palm Jebel AliThe Palm Jebel Ali• The Palm DeiraThe Palm Deira • Over 60 luxury hotels, 5,000 Over 60 luxury hotels, 5,000 residential beachside villas, residential beachside villas, 5,000 apartments, marinas and 5,000 apartments, marinas and theme parkstheme parks• Due for completion by 2009Due for completion by 2009•Dubai MetroDubai Metro•Shopping MallsShopping Malls
The World Islands The World Islands •Consists of over 300 Consists of over 300 man-made islands that man-made islands that are designed are designed to to represent the world maprepresent the world map
• Located 4km offshore Located 4km offshore from Dubaifrom Dubai
• 9km (width) by 7km 9km (width) by 7km (length)(length)
• Visible from spaceVisible from space
• As of April 2006, 90% As of April 2006, 90% of land reclamation is of land reclamation is complete, with 270 complete, with 270 islands visible above islands visible above waterwater
•Due for completion by Due for completion by latelate20082008
Burj Dubai•World’s tallest tower, World’s tallest tower, iconiciconic structure of Downtown structure of Downtown BurjBurj Dubai ProjectDubai Project
• Completed 80 floors Completed 80 floors (277m) as of Oct 31 (277m) as of Oct 31 20062006 • Burj Dubai is adding Burj Dubai is adding a new floor every 3 a new floor every 3 daysdays
• Will house one of the Will house one of the first Armani Hotelsfirst Armani Hotels
• Observation Deck at Observation Deck at 442m.442m. To be completed in To be completed in 20082008
UAE The Place UAE The Place
To do business inTo do business in To Exhibit in To Exhibit in To holiday inTo holiday in To live inTo live in
Thank youThank you
Abdeslam El IdrissiAbdeslam El IdrissiDirector of Trade ServicesDirector of Trade Services
