dubai commerce
TRANSCRIPT
8/2/2019 Dubai Commerce
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DUBAI - United Arab Emirates 1
“Routes to Market UAE”
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DUBAI - United Arab Emirates 2
Dubai largest market in Middle East.
90% of trade conducted through Dubai and Northern Emirates.
Minimum of 45% of imports are re-exported: Asia, Africa, GCC andMiddle East.
Gateway to a $150 billion market.
Springboard into more challenging Markets.
TRADE
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REGIONAL HUB Significant visitor , and ex-pat markets
Development of Jebel Ali & Taweelah Ports
Growth of Emirates & Etihad Airlines
Dubai is world’s third largest re-export centre
Dubai handled around 73% of UAE foreign trade (2004)
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DUBAI - United Arab Emirates 4
LEADING TRADING FAMILY
Al Futtaim
IKEA, ToysRUs, M&S
Al Futtaim Motors
Al Futtaim
Electronics -SanyoAl Futtaim Auto &
Machinery (FAMCO)Al Futtaim Real
Estate
www.al-futtaim.com
Al Ghurair
Gulf Extrusions
Dubai Polyfilm
Arabian can Industry
Burjuman ShoppingCenter
Al Ghurair City
Mashreq Bank
Dome Café
Printing & Publishing
www.Algurair-pvt.com
Al Gurg
Al Gurg Tyres, Batteries &
Automobile Accessories
Al Gurg Cigarette Div
Mac Al GurgArabian Explosive Co
Al Gurg Al Laing PaintBenetton Franchise
ID Design
www.algurg.com
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DUBAI - United Arab Emirates 5
LEADING TRADING FAMILY
Al Majid
Al Majid Property
EMW Lifts &
Escalators
GENAVCOGULFCO
Taj Hotel
Skyline Travels
EPS
www.al-majid.com
Al Habtoor
Al Habtoor Eng. Ent
Al Habtoor Motors
Bentley
Aston MartinMack Truck
Real Estate
Hotel Metropolitan
Group
Publishing-Al
Shindaghawww.habtoor.com
Al Naboodah
Al Naboodah Cont.
Al Naboodah Cargo
Travels & Tourism
SMKA Electric CoAl Naboodah Laing
O’Rourke
Swaidan Trading
www.alnaboodah.com
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DUBAI - United Arab Emirates 7
LEADING TRADING FAMILY
Galadari
Khaleej Times
Mazda
Baskin Robbins
Galadari Travel GroupDubai Intercontinental
Hotel
Galadari Columbo
Galadari Industrial
www.Gabros.com
Lootah
Lootah Industries
National Aluminium
Lootah Building &
ConstructionLootah General Trading
National Readymix
www.lootahgroup.com
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DUBAI - United Arab Emirates 8
Palm Island Projects, Healthcare City
Dubai International Finance Centre
The World, Dubailand,
Airport Expansions & New Airports
Over 100 New Hotels
Burj Tower
Business Bay
Yas Island
UAE MAJOR PROJECTS
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DUBAI - United Arab Emirates 9
A new national grid linking all power stations & distributionnetworks in Dubai & Abu Dhabi (valued at US$164million)
Dolphin Gas Project linking Qatar , UAE & Oman
Light Rail system throughout Dubai
Dept for Economic Development-New Projects toencourage the development of manufacturing industry overthe next 5 years
MAJOR PROJECTS(Contd…)
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Don’t forget the growing Northern Emirates & Abu Dhabi
Niche opportunities for British companies
Have a Middle East Strategy (and beyond?) not just UAE
Understand the wider pricing issues
Take legal advice with M.E knowledge
KEY ISSUES
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Direct Export - Agent/Distributor Representative Office
Branch Office
Limited Liability
Joint Venture/Participation
Freezone or Sponsor/Partner?
DOING BUSINESS IN UAE
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Direct Export - Agent/Distributor No distinction between agent & distributor
Cultural aspects – research , research , research
Registered or Unregistered agent ?
Exclusivity can be via product line / specific service
Dubai and Abu Dhabi separate agencies ?
Agreement subject to UAE law – ICC possible ?
Ensure “getoutability” of contract
DOING BUSINESS IN UAE
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Limited Liability Company - LLC At least 51% to be held by UAE national/company
Initial share capital 150k dhs/300k dhs for Dubai
Profit share may be disproportionate to shares
All or most share capital provided by foreign Investor
Vast majority of profits passed to foreign investor
DOING BUSINESS IN UAE
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DUBAI - United Arab Emirates 15
Joint Venture/Participation UAE Companies Law permits joint participation
2 or more partners agree to share profits/losses
Does not need to be formally registered
Establishment immediate
JP would use name/trade licence of local registered
Disadvantage – independent financing limited ?
DOING BUSINESS IN UAE
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DUBAI - United Arab Emirates 16
Free Trade Zones
40+ FTZ’S – existing & proposed
No customs duties
No restrictions – profit transfer / capital repatriation
Exemption – corporate , withholding , inheritance taxes
No personal income tax or currency restrictions
BUT need local agent to trade in UAE
ICAD may circumvent this – with Executive Council
DOING BUSINESS IN UAE