the gcc economic agreement & customs law

The GCC Economic Agreement & Customs Law

COMPANY PROFILE

Al Tamimi & Company is the largest independent law firm in the United Arab Emirates, with offices in Dubai, Abu Dhabi,Sharjah, Dubai Internet City and Doha, Qatar.

The Firm acts in the all areas of business law, and provides specialized legal services in the fields of shipping, construction,property, commercial and Islamic banking, project finance, intellectual property, information technology, media law,arbitration and local and foreign litigation matters.

The Al Tamimi & Company team is comprised of qualified and experienced lawyers from the UK, North America, Europe,South Africa, the UAE, Iraq and other Arab countries.

Our clients depend on our proficiency in local and regional laws. Within the UAE we enjoy long established contacts withinthe public sector, and regularly confer with government departments and ministries, with respect to new legislation andregulations. Such local contacts and regional knowledge greatly assist our private sector clients and the internationalcorporations that represent the majority of our client base.

TABLE OF CONTENTS

INTRODUCTION ....................................................................................................................... 1

1 PROVISIONS OF THE EA .................................................................................................... 2

2 PERMITTED ACTIVITIES....................................................................................................... 4

I. Conditions in respect of exercising a profession ................................................... 4

II. Conditions in respect of exercising industrial, contracting. agricultural, animal

and fish activities ................................................................................................... 6

III. Conditions in respect of wholesale and retail trading activities ............................. 8

IV. Conditions in respect of exercising handicrafts ...................................................... 9

V. Setting up by GCC Nationals of member countries................................................. 9

3 COMMERCIAL REPRESENTATIVE OFFICES ....................................................................... 11

I. Rules approved by the higher council ................................................................... 11

II. Rules approved by the United Arab Emirates ......................................................... 12

4 PRIVILEGES AND EXEMPTIONS ....................................................................................... 13

5 OWNERSHIP OF REAL ESTATE BY GCC NATIONALS IN MEMBER COUNTRIES............. 15

I. Conditions approved by the higher council ......................................................... 15

II. Implementation of the decision of the higher council by the

United Arab Emirates........................................................................................... 15

6 OWNERSHIP BY GCC NATIONALS OF SHARES IN JOINT STOCK COMPANIES

IN MEMBER COUNTRIES ................................................................................................. 17

I. Rules approved by the higher council.................................................................. 17

II. Implementation of the decision of the higher council by the

United Arab Emirates........................................................................................... 17

7 SPECIFIC CONDITIONS/ REQUIREMENTS OF CERTAINEMIRATES IN RESPECT TO

ACTIVITIES IN GENERAL .................................................................................................. 18

I. Emirate of Abu Dhabi .......................................................................................... 19

II. Emirate of Dubai.................................................................................................. 22

III. Emirate of Sharjah ................................................................................................ 32

THE GCC ECONOMIC AGREEMENT & CUSTOMS LAW

IMPLICATIONS FOR GCC NATIONALS CONDUCTING ECONOMIC ACTIVITY IN THE GULF

INTRODUCTION

On 28 October 2002, H.H. the President of the United Arab Emirates (the “UAE”), issued Federal Decree No. 55 of 2002ratifying the new Economic Agreement signed on 31 December 2001 (the “EA”) between the Gulf Co-operation Council(“GCC”) countries, being Saudi Arabia, Qatar, Kuwait, Bahrain, Oman and the UAE (the “Member Countries”). The new EAreplaced the first Unified Economic Agreement signed between the GCC countries on 18 June 1980 (which was ratified byway of Federal Decree No. 47 of 1982 dated 16 June 1982).

The EA forms a comprehensive economic program aimed at creating a unified economic entity for all GCC countries. The EAsought to cover most, if not all, economic business aspects and fields; commercial, industrial, financial and monetary.

The new EA introduced the GCC Customs Union, which was put into effect in the UAE as of 1st January 2003, as requiredunder the EA.

Following the ratification of the EA and for the purposes of implementing the GCC Customs Union, Federal Law No. 19 of2002 in respect of increasing the customs duties on goods and commodities imported from outside the GCC countries wasissued, and also Federal Law No. 1 of 2003 establishing the Federal Customs Authority, to be the party responsible for customsaffairs in the UAE and to put in place the customs’ policy, prepare unified laws to regulate customs matters and supervise theimplementation of the same.

A number of laws, regulations and ministerial decisions were issued following the ratification of the first Unified EconomicAgreement, which are still applicable, amongst which are the following:

1. Ministerial Decision No. 24 of 1985 in respect to the executive regulations of Federal Law No. 2 of 1984 concerningconducting economic activities by GCC nationals.

2. Decisions of the Ministers’ Council No. 264/2 of 1984 and No. 239/3 of 1991 in respect of permitting GCC nationals toconduct certain activities.

3. Decision of the Minister of Education No. 857/1 of 1997 in respect of permitting GCC nationals to conduct economicactivities in the educational field.

4. Decision of the Ministers’ Council No. 195/02 of 1989 in respect of cancelling the conditions concerning the participationof UAE nationals in economic projects in connection with hotels and restaurants.

5. Ministerial Order No. 88 of 1990 permitting GCC nationals to conduct economic activities in the UAE in the industrialfield.

6. Federal Law No. 2 of 1989 permitting GCC nationals to conduct retail and wholesale trading in the UAE.7. Decision of the Ministers’ Council No. 6 of 1991 in respect of the rules and restraints in relation to conducting retail and

wholesale trading in the UAE by natural and corporate persons who acquired the nationality of GCC countries andDecision No. 5 of 1993 amending the first article of Decision No. 6 of 1991.

8. Ministerial Decision No. 57 of 1991 in respect of the rules and restraints in relation to conducting retail and wholesaletrading by nationals of GCC countries.

9. Decision of the Ministers’ Council No. 12 of 1993 in respect to permitting corporations and production units in GCCcountries to open commercial representative offices in the UAE.

10. Ministerial Decision No. 2 of 1994 in respect of specifying the licensing conditions and procedures of corporations andproduction units in GCC countries to open commercial representative offices in the UAE.

11. Decision of the Ministers’ Council No. 113/20 of 1983 in respect of exempting agricultural, animal, industrial and naturalresources products from custom duties and approving the transit passage regulation.

12. Ministerial Decision No. 12 of 1986 in respect to permitting companies, corporations and productions units in GCCcountries to export its products to the UAE without having to appoint a local agent.

13. Decision of the Ministers’ Council No. 306/2 of 1988 approving the conditions of practising professions adopted by theHigher Council.

This brochure will shed light on the main provisions of the EA and clarify the economic activities permitted to be conductedby GCC nationals in the GCC countries, the restraints and requirements in relation thereto, in addition to the registration andlicensing conditions. It will also briefly touch on certain granted rights, privileges and exemptions, although not all of the sameare activated.

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1 PROVISIONS OF THE EA

The EA, as approved by Federal Decree No. 55 of 2002, provides mainly for the following:

a) Introduction of the GCC Customs Union and the Unified Customs Law for GCC countries (the “Unified Law”), and therequirement to implement the same by GCC countries as of 1st January 2003.

The main purpose of the GCC Customs Union is to eliminate customs duties “taxes”, rules and procedures that restricttrade among GCC countries and to implement unified customs duties and commercial rules towards the outside world.

The basis of the Customs Union is to provide:

� Unified customs duties towards the outside world; � Unified rules and regulations among GCC countries; � Unified customs, financial, administrative rules and regulations relating to export, import and re-export in GCC

countries; � One point of entry where unified customs duties are collected; � Transfer of goods among GCC countries without restrictions (taking into consideration agricultural and veterinary

quarantines, restricted and forbidden goods); and � Treatment of goods produced in any GCC country as national goods.

In implementation of the Unified Law, the UAE issued Federal Law No. 19 of 2002 Increasing the Customs Duties onGoods and Commodities Imported From Outside the GCC countries to 5% (previously 4%) and exempting the followingcategories:

� Diplomatic exemptions; � Military exemptions; � Personal belongings; � Necessities of public benefit associations; and � Returned goods.

The provisions of the Unified Law apply to:

� Lands under UAE sovereignty and its territorial waters;� Any established free zones in such lands (are not subject to the customs provisions); � Any goods that cross the political borders; � Goods coming into the UAE will be subject to the unified customs duties unless excluded under the Unified Law, the

GCC Economic Agreement or any international agreements within the GCC countries; � Goods coming out of free zones or duty free markets are subject to the tariff customs applicable at such dates.

The Unified Law excluded free zones and duty free markets:

� Foreign foods of any origin may come in or out of free zones and duty free markets without being subjected to taxesand customs duties.

� Re-exported foreign goods from within the UAE to a free zone or a duty free market are subject to export restrictionsand customs procedures applicable in this respect.

� Goods coming out of free zones are treated as foreign goods even if such goods contain local raw materials or materialson which customs duties were paid prior to entry to free zones.

� Goods coming out of free zones and duty free markets and going inside or outside the UAE are treated the same asforeign goods.

� Management of free zones and duty free markets are liable against any violation of their employees with regards to anyunlawful leakage of goods from within such zones and markets.

� The AE sets out the controls and rules for exempting industrial components from customs duties. Such rules apply toindustrial establishment in the GCC countries satisfying certain requirements, with no exceptions as to whether suchestablishments are on-shore or offshore.

b) Similar treatment of GCC nationals in the different Member Countries without any distinction or discrimination, especiallywith regards to transportation and residency; employment in governmental and private sectors; social security andretirement; conducting professions and handicrafts; conducting all economic, investment and service activities; ownershipof real estate; movement of capital; taxation; trading in securities; incorporation of companies; and education, health andsocial services.

c) Working on achieving Unification of currency.

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d) Proceeding with the following:

� Unifying investment laws and regulations; � Treating investments of GCC nationals (whether individuals and corporate bodies) as national investments in all

Members Countries; � Unifying the policies and regulations in the financial markets of the GCC countries; and � Adopting unified specifications and classifications.

e) Implementation of the Unified Strategy for the Industrial Development of the GCC countries, in addition to the unificationof industrial laws and regulations.

f) Adopting the necessary policies to promote, supply, develop, or achieve integration and unification in the following: oil,gas and natural recourses; agricultural; education; employment and allowing movement of work force among the GCCcountries; increasing the number of nationals in work places and providing necessary training; supporting scientific andtechnological researches; intellectual property; transportation, telecommunications, setting up of airports, ports, roads, etc.and developing land and sea transport means.

The EA provisions have priority in application in the event of any contradictions with local laws and regulations in any ofthe Member Countries.

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2 PERMITTED ACTIVITIES

Federal Law No. 2 of 1984 in respect of Conducting Economic Activities by GCC nationals in the United Arab Emiratespermitted GCC nationals whether natural or corporate to conduct economic activities in the following fields:a) Industrial;b) Agricultural;c) Animal resources;d) Fishing resources;e) Contracting.

The law further permitted registration of professionals holding the nationality of any GCC country in the following professionsprovided the applicant obtains a licence, register and satisfy the conditions lawfully required to be satisfied by UAE nationalsin respect of those professions:a) Medicine;b) Advocacy;c) Accounting;d) Engineering, including engineering offices; ande) Administrative, Economic, Technical, Agricultural, Industrial and Fishing Consultancy.

Ministerial Orders Nos. 24 of 1985, 306/2 of 1988, 264/2 of 1984, 239/3 of 1991 and Ministerial Order of the Minister ofEducation and Youth No. 857/1 of 1997, in respect of the executive regulations of Law No. 2 of 1984, additionally allowedthe exercise of the following professions, handicrafts and activities:

a) Establishing hotels and restaurants;b) Maintenance (in relation to activities permitted to GCC nationals);c) Supply contracting;d) Marketing services;e) Cleaning services;f) Weighing and measuring;g) Kindergartens;h) Private schools, i) Educational institutions and centres (in the following training specialisations: languages, computer, secretariat,

accountancy, administration and various assistant administrative jobs);j) Pharmacy (permitted to be practised in the UAE by GCC nationals holding appropriate scientific degrees);k) Translation;l) Surveying;m) Soil inspection; andn) Computer programming, analysis and operations.

I. CONDITIONS IN RESPECT OF EXERCISING A PROFESSION

Ministerial Decision No. 24 of 1985 provides general restraints and conditions in respect of exercising the professions, statedin Law No. 2 of 1984, by GCC nationals in the United Arab Emirates and specific ones in respect of certain professions.Additionally, the Ministers’ Council approved the restrictions and conditions adopted by the Higher Council in the samerespect.

The restraints and conditions as stated in Ministerial Decision No. 24 of 1985 are summarised as follows:

(1) General Conditions

The applicant has to:

a) Be registered in the location where the profession is to be conducted;

b) Be fully dedicated to conduct the licensed profession;

c) Provide a certificate of good reputation from the country of origin, authenticated by the Ministry of the United Arab Emirates and by the Ministry of Foreign Affairs in the said country;

d) Present a certificate confirming not having committed any professional breach, which may prevent the applicant from exercising the profession. Such certificate has to be authenticated by the United Arab EmiratesEmbassy and the Ministry of Foreign Affairs in the applicant’s country;

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e) Present a certificate from the competent authority in the country of origin confirming the evaluation of the scientific degree of the applicant and that it is acknowledged and equivalent to scientific degrees in the said country; and

f) The beneficiary of the granted license has personally exercised the profession.

(2) Specific Conditions


a) Hold a B.A. in medicine in addition to having passed the training year or equivalent, after obtaining the B.A.;

b) Have a minimum three years experience as of the date of graduation; and

c) Obtain a license from the Medical Licenses Department at the Ministry of Health in the United Arab Emirates.

B. In Respect of Advocacy


a) Hold a B.A. in Shariá or in Law from one of the acknowledged universities;

b) Have his name registered in respect of exercising advocacy in the United Arab Emirates or in one of the GCCcountries, in addition to having his name registered in the United Arab Emirates pursuant to the applicable procedures with the Ministry of Justice;

c) Personally practise the profession. A non-GCC lawyer may not practise through his office;

d) Be not less than 21 years old;

e) Have full capacity and enjoy good reputation, in addition to not being convicted, whether judicially or disciplinary, for reasons relating to honour and honesty, and

f) Not to be an employee with the government or any of the public institutions at the date of submitting the application whether in the United Arab Emirates or in any of the other GCC countries.

C. In Respect of Accounting


a) Hold a postgraduate university degree in Accountancy, and

b) Be registered in the Auditors’ and Accountants’ Register with the competent authority in the United Arab Emirates.

D. In Respect of Engineering and Engineering Offices


Submit the licensing application form to the competent authority in relation to the work to be conducted in the United Arab Emirates.

E. In Respect of Education


a) Be a natural person who is a resident of the United Arab Emirates or a corporate person fully owned by GCCnationals provided that such corporate person shall have a deputy who has to be a natural person and a national of GCC countries residing in the United Arab Emirates;

b) Conduct activities pursuant to the provisions, laws and regulations applicable in the United Arab Emirates; and

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c) Fulfil all the other rules necessary to conduct the approved economical activities (by the Higher Council of the GCC countries).

(3) Conditions Approved by the Higher Council in Respect of Exercising Professions by GCC Nationals in the MemberCountries

In this respect, the Higher Council approved the following:

a) The applicant has to hold specialised scientific and practical qualifications in the profession desired to be exercised and obtain the licence and registration required from equivalent nationals of the hosting Member Country;

b) The profession has to be practised pursuant to the procedures applicable in each of the Member Countries;

c) Licensed professionals have the right to establish professional companies in association with licensed parties of the same profession and to enter as partners in such companies and in existing professional companies and to own movables necessary to conduct the profession under the same conditions normally enjoyed by equivalent nationals of the hosting Member Country;

d) Licensed professionals have the right to obtain all services to enable them to conduct their profession including public utility services pursuant to the same conditions usually enjoyed by equivalent nationals of the hosting Member Country, and

e) Licensed professionals have the right to obtain the relevant visas necessary to assistants, technical staff, workers and their residency shall be subject to the same conditions required from equivalent nationals in thehosting country provided that employment priority is to be given to GCC nationals.

The Higher Council in this respect defined:

“The Professions” those activities depending on the direct exploitation of human mental capabilities, the pure intellectual talents and on the personal efficiency of the practising person;

“Practise of to personally practise the profession or to participate in theProfession” practice with GCC nationals; and

“GCC Nationals” the natural persons holding the nationality of any of the GCC countries or the corporate persons provided such corporate persons are professional partnerships fully owned by GCC nationals.

The above restraints and conditions apply to professions where no specific restraints are issued. The above restraintsdo not prejudice any existing privileges that are now or may be in the future granted by any Member Country to anyGCC national in the same respect.

II. CONDITIONS IN RESPECT OF EXERCISING INDUSTRIAL, CONTRACTING, AGRICULTURAL, ANIMAL AND FISH ACTIVITIES

Ministerial Order No. 24 of 1985 in respect of the executive regulations of Law No. 2 of 1984 provided for specificrestraints and conditions in relation to conducting industrial, contracting, agricultural, animal and fish activities byGCC nationals in the United Arab Emirates. This is in addition to those approved by the Higher Council of GCCcountries, which apply to economical activities where no specific restraints and conditions are issued.

(1) Specific Conditions

A. In Respect of Industrial Activities

a) Both natural and corporate persons are allowed to conduct economical activities in the United Arab Emiratesin the industrial field;

b) The ownership by GCC nationals in an industrial project has to be not less than 51% of the capital;

c) The industrial project intended to be established has to be a new project and not a branch for the distributionof products of another existing industrial project in one of the GCC countries;

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d) The technical and economical feasibility studies of the project has to be proved in the United Arab Emirates;e) The company implementing the industrial project has to be registered with the Ministry of Economy & Trade

after completing the registration and licensing requirements;

f) The Ministry of Finance & Industry handles the registration procedures and the issuance of the necessary industrial licenses after confirming satisfaction of the lawfully required conditions in respect of exercising such activities;

Application forms have to be submitted to the Industrial Department at the Ministry of Finance & Industry;and

g) The project has to be registered in the Industrial Register at the Industrial Department, after obtaining the necessary approvals from the competent local authorities, as per the following procedures and conditions:

(i) An application of practising industrial activities has to be submitted to the Industrial Department at the Ministry of Finance & Industry. The technical and economical feasibility study has to be attachedto the application pertaining to the project. The establishment of the project has to commence withina period of six months; this period may be extended by a decision of the Minister of Finance & Industry if the applicant states justifiable reasons for the extension, until the project is completed.

(ii) When production starts, the Ministry inspects the project and accordingly grants the project theIndustrial License and the project will be registered in the Industrial Register at the Industrial Department in the Ministry (after obtaining the approval of the competent local authorities. The equipment and machinery necessary for the project shall be exempted from custom duties.

(iii) After the project obtains the Industrial License, an application is submitted to the Industrial Department at the Ministry of Finance & Industry for the purposes of having the products of the project obtain the designation of “national origin” (national product) and accordingly be exempted from custom duties in respect of the GCC countries.

In order to obtain the designation of “national origin” and be treated similarly to national products of theUnited Arab Emirates, the following conditions must be satisfied:

� The minimum value added arising in connection with the production of the industrial products has to be not less than 40% of its final value on completion of its production. For the purpose of calculating the value added the raw and packaging materials purchased fromGCC countries, production expenses, administrative expenses including water, electricity and salaries, and bank interest have to be all included;

� The ownership by GCC nationals has to be a minimum of 51% of the capital of the companyowning the project; and

� Each product to be exempted has to have a certificate of origin certified by the competent governmental authority.

The application to obtain the exemption has to include:

� The first budget (minimum for six months) in respect of the project; and

� Water and electricity invoices and salaries of workers and employees.

If the said department approves the application, it has to be submitted to the General Secretariat of GCCCountries for its approval. The products are exempted from custom duties upon such approval.

The Ministry of Finance & Industry in co-operation with the Ministry of Economy & Trade are responsiblefor the issuance of the required documents for the exemption from custom duties in the GCC countries forfactories which satisfy the appropriate licensing conditions, in addition to satisfying the conditions in respectof the minimum value added locally.

h) As to the factories in Jebel Ali Free Zone Area, Law No. 2 of 1993 provides as follows:

(i) The products of national factories in the Jebel Ali Free Zone wholly or a minimum of 51% owned by UAE nationals or by GCC countries shall be considered as national products which cannot be imported. As such no custom duties shall be levied in respect thereof when such products leave the

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Jebel Ali Free Zone, provided that such factories are licensed by the Ministry of Finance & Industry;

(ii) The above national factories shall be subject to the laws and regulations that apply in respect to factories outside the Free Zone in the Emirate of Dubai and Law No. 2 of 1986 in respect of businesin the Jebel Ali Free Zone shall not apply in relation to the products of such national factories.

Accordingly and after being properly registered and licensed with the Jebel Ali Free Zone Authority, suchfactories can submit applications to the Ministry of Finance & Industry to have their products receive thedesignation of “national origin” and be accordingly exempted.

The General Secretariat of GCC Countries is still considering the issue of giving approval to such factories.

B. In Respect of Contracting Activities

a) GCC nationals have to submit applications to obtain licenses to exercise contracting activities through the relevant municipalities in the United Arab Emirates and to register as contractors with the Ministry of Public Works and Housing and with the competent Chambers of Commerce.

b) No limitations are imposed in respect of the ownership by GCC nationals (for the first five years as of the date of implementing Federal Law No. 2 of 1984 it was required that the ownership of GCC nationals not beless than 51%).

C. In Respect of Agricultural, Animal and Fish Activities

a) GCC nationals, both corporate and natural, are allowed to conduct such activities pursuant to the regulationsand rules issued by the Ministry of Agriculture and Fish Resources in addition to the competent local authorities in the United Arab Emirates.

b) No limitations are imposed in respect of the ownership by GCC nationals.

(2) Conditions Approved by the Higher Council in Respect of Exercising Industrial, Contracting, Agricultural,Animal and Fish Activities by GCC Nationals in the Member Countries

a) These economic activities may be exercised by GCC nationals whether natural persons or corporate persons fully owned by GCC nationals.

b) Persons conducting such activities have the right to:

(i) Establish companies and hold shares in such companies in addition to owning raw materials and movable things normally necessary for such activities, subject to the same conditions usually enjoyed by equivalent nationals of the hosting country;

(ii) Obtain goods and whatever is necessary for them to provide their services pursuant to the regulations and laws applied on equivalent nationals of the hosting country;

(iii) Obtain all services necessary to conduct the work and which are provided for equivalent nationals of the hosting country such as obtaining general utility services;

(iv) Obtain the visas necessary for their workers and, technicians pursuant to the same conditions applied on equivalent nationals of the hosting country, provided that employment priority is given to GCC nationals; and

(v) Open more than one branch to conduct such activities in the United Arab Emirates provided that the necessary licenses are obtained.

III. CONDITIONS IN RESPECT OF WHOLESALE AND RETAIL TRADING ACTIVITIES

Federal Law No. (2) for the year 1989 established the right for GCC nationals, natural and corporate, to conduct wholesaleand retail trading activities in the United Arab Emirates.

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For such purposes “wholesale” was defined as: “the purchase of goods and commodities to be sold directly without amediator to consumers on continuous basis through a licensed outlet”.

And “retail” was defined as: “the purchase of goods and commodities from the local market or the import of the same, to besold in the local market or exported on continuous basis through a licensed outlet”.

Ministerial Order No. 6 of 1991 stated the restraints, rules and conditions in respect of conducting wholesale and retail tradingby GCC nationals in the United Arab Emirates, as follows:

(1) Conditions In Respect of Natural Persons

a) The applicant has to personally conduct the required activity;

b) The applicant may not have more than one outlet to conduct the activity; and

c) In the event of exercising more than one activity, such activities are to be of a similar nature.

(2) Conditions in Respect of Corporate Persons

a) The applicant has to be a company established in one of the GCC countries fully owned by GCC nationals;

b) Nationals of the United Arab Emirates have to own at least 50% of the capital of the company to be established for the purpose of conducting wholesale and retail trading activities, along with the corporate person owned by a GCC national; and

c) The corporate person may open more than one branch to conduct its activity in the United Arab Emirates, provided that the required and necessary licenses are obtained from the competent authorities.

(3) General Conditions

a) The natural or corporate person has to submit an application to the competent authorities to obtain the required licenses to conduct the desired activity, pursuant to the rules applied on natural and corporate persons holding the nationality of the United Arab Emirates;

b) The natural or corporate person has to provide, in respect of retail trading, the spare parts and maintenance requirements and to guarantee the long-lived exported goods; and

c) Natural or corporate persons licensed to conduct wholesale trading may not import goods or commodities or conduct commercial agency business in the United Arab Emirates.

IV. CONDITIONS IN RESPECT OF EXERCISING HANDICRAFTS

Ministerial Order No. 264/2 of 1984 approved the following rules in respect of exercising handicrafts by GCC nationals inthe United Arab Emirates:

a) Such occupations are to be exercised, in respect of all types of handicrafts, by handicraftsmen who shall be subject to the same conditions applied on equivalent nationals of the United Arab Emirates without any discrimination provided that the applicant has to:(i) Be qualified to conduct such handicrafts;(ii) Be a permanent resident of the United Arab Emirates; and(iii) Personally exercise the handicraft after completing the licensing and registration procedures

necessary, if any.

V. SETTING UP BY GCC NATIONALS OF MEMBER COUNTRIES.

A GCC national of any Member Country can set up and establish a sole proprietorship, a branch office or a company in the UAE.

However, the provisions of Federal Law No. 8 of 1984, as amended, in respect of Commercial Companies Law in the UnitedArab Emirates (the “Law”) imposed a restriction in respect to ownership of companies whereby any company of any type(limited liability, partnership, public joint stock companies, private joint stock companies, simple limited partnerships and

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partnerships limited with shares) to be established and incorporated in the UAE has to be owned 51% at least by a UAEnational and the remaining 49% may be owned by non-UAE nationals.

Notwithstanding the above, profits may be divided on other ratios as may be agreed, considering the efforts undertaken bynon-UAE national partners in management, provision of technology or expertise. The non-UAE national partner mayundertake management of a company.

Setting up by GCC nationals is subject to the rules, requirements, regulations and conditions stated herein in addition to beingsubject to the provisions of the Law and to any specific requirements or conditions of each Emirate in the United ArabEmirates.

On the other hand, a GCC national may set up in one of the Free Zone areas in the United Arab Emirates such as Jebel AliFree Zone and Dubai Airport Free Zone in Dubai; Al Hamriyah Free Zone and Sharjah Airport Free Zone in Sharjah, AlSaadiyat Free Zone in Abu Dhabi; Ajman Free Zone in Ajman. There is also the Dubai Media City and the Dubai InternetCity.

The Free Zones, Dubai Media City and Dubai Internet City allow for full ownership of a company by non-UAE nationalpartners, in addition to having less requirements, implementing speedy procedures for setting up, and providing moreservices, privileges and benefits especially with regard to full exemption from custom duties in the UAE.

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3 COMMERCIAL REPRESENTATIVE OFFICES

Institutions and production units in any of the Member Countries are permitted to open commercial representative offices inany of the Member Countries and the Higher Council approved the rules in respect thereto.

Ministerial Decision No. 12 of 1993 stated the rules and conditions in respect to permitting institutions and production unitsto open representative commercial offices in the United Arab Emirates.

(1) RULES APPROVED BY THE HIGHER COUNCIL

The approved rules defined the commercial representative office as the office that attends to the interests of the institutionsand production units in the GCC countries and which is subordinate to such institutions and units and is under its control andsupervision in any of the Member Countries.

Based on the above definition only, industrial institutions and companies are allowed to open representative offices.

The rules sanctioned by the Higher Council in respect to permitting GCC institutions and production units to opencommercial representative offices in the GCC countries do not prejudice any existing privileges granted or that might begranted by any Member Country to the GCC nationals in this respect. Those rules are summarised as follows:

a) The purposes of representative offices are limited to the following:

(i) Contact clients in GCC countries for the purpose of introducing the products of the institutions and production units represented by such offices, to enlarge the circle of distribution and marketing of such products and to further increase the number of clients and consumers of the same.

(ii) To refer offers, orders and complaints received in respect of the products to the institutions and production units it represents.

(iii) To solve and overcome the difficulties in relation to distributing the products it represents.

(iv) To contact the exporters and sellers of raw and semi-processed materials needed by the institutions and production units it represents in addition to facilitating and arranging for its quick delivery.

b) Have the right to address the governments of GCC countries and other competent authorities and to do all that is necessary to achieve its purposes.

c) Have the right to submit services that facilitate the selling and promotion of the products of the institutions and production units it represents, but such offices may not import, export or sell unless the laws and regulations applicable in the GCC country permit the same.

d) Such commercial representative offices may:

(i) Own or lease transportation means with the exception of transportation means for goods;

(ii) Obtain all utilities and services and lease facilities to conduct its business in accordance with the laws and regulations applicable in the GCC country where it conducts its activities;

(iii) Obtain visas necessary for workers and technicians and their residency shall be subject to the same conditions required from those similar to them in the GCC country, provided that priority of work is granted to nationals of GCC countries; and

(iv) Open branches for the representative office pursuant to the licensing and registration rules applicable in the relevant GCC country.

e) Representative offices may not promote any foreign commodities or products.

f) Institutions or production units represented by its commercial representative office are jointly liable with its agent, if any, and the retail merchant to provide spare parts and after sale services including maintenance and warranty of materials and products produced by the institutions or production units it represents.

g) The commercial representative offices conduct its businesses pursuant to the laws and procedures of the GCC country where the representative office is established and which are applied to its nationals, and

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this includes obtaining the license and registration normally required for conducting the relevant activity.

(2) RULES APPROVED BY THE UNITED ARAB EMIRATES

Ministerial Order No. 12 of 1993 in respect of permitting institutions and production units in the GCC countries toopen commercial representative offices in the United Arab Emirates states the rules in relation thereto, whichcorrespond to those approved by the Higher Council. In addition to permitting institutions and production units inGCC countries to open commercial representative offices in the United Arab Emirates without being obliged toappoint a local agent for this purpose.

Ministerial Decision No. 2 of 1994 issued by the Minister of Economy & Trade states the following conditions andprocedures in respect of licensing institutions and production units incorporated in any of the GCC countries to opencommercial representative offices in the United Arab Emirates:

A. In Respect of Registration

a) If the institution or production unit wishing to open a representative office is a sole proprietorship, then such representative office will be listed and registered with the competent authority in the Emirate where the representative office is to be opened, pursuant to the procedures applicable in respect of licensing sole proprietorships for nationals of the United Arab Emirates.

b) If the office represents a company, it will be listed and registered with the Ministry of Economy & Trade in accordance with the companies licensing conditions provided for Federal Law No. 8 of 1984 as amended in respect of Commercial Companies and the decisions implementing this law.

B. In Respect Of Specifying The Quality And Character Of The Products of The Production Units

Any production unit wishing to open a representative office in the United Arab Emirates shall have to presentthe following:

An official certificate issued by the competent authority in the country of the producing institution orcompany, certifying that the products of such institution or company qualify as products of “national origin”pursuant to the conditions stated in the EA in respect of industrial products, in GCC countries, acquiring thedesignation of “national origin”.

And it is conditional for industrial products, in order to acquire the designation of a “national product”, thatthe additional value added arising out of its production in the GCC countries, is not less than 40% of its finalvalue upon completion of its production and that the producing company is fully owned by nationals ofGCC countries or a minimum of 51% is owned by GCC nationals.

Based on the above, institutions and production units in the GCC countries, whose products have notacquired the designation of “national origin”, may not open representative offices in the United ArabEmirates.

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4 PRIVILEGES AND EXEMPTIONS

1. Exempting agricultural, animal, industrial and natural resources products from custom duties in addition to being exempted from fees of similar effect.

In this respect it is conditional for exempting agricultural, animal and natural resources products of any of the GCCcountries that such products be accompanied with a certificate by the competent governmental authorities.

As for industrial products, it is conditional in order for such products to be exempted to have a certificate of originstating that the local value added arising out of its production is not less than 40%. Industrial products obtain thedesignation of “national origin” if:

a) The value added arising out of its production is not less than 40% of its final value;

b) The ownership of GCC nationals in the capital of the industrial company is not less than 51%; and

c) Each exempted product is to be accompanied by a certificate by the competent governmental authority stating that the product has acquired the designation of “national origin”.

2. Granting facilities of transit passage for goods produced in any of the GCC countries without any hindrances or restrictions.

3. Granting the designation of national transportation to the transportation means owned by nationals of any of the GCCcountries.

4. Permitting establishments and companies of GCC countries to export its products to the United Arab Emirates withouthaving to appoint a local agent.

5. Equal taxation treatment to the nationals of GCC countries, whereas GCC nationals shall be treated similar to the nationals of the hosting country in respect of taxation in relation to conducting any of the permitted activities including handicrafts and professions. Provided this does not prejudice any better taxation privileges granted by a member country to GCC nationals.

6. Giving priority for national products in governmental projects for Member Countries provided such products are competitive in respect of price, quality and delivery.

7. Giving priority in respect of governmental purchases to national products of national origin.

For this purpose a national product is defined as:

“Each product that is produced in any of the Member Countries and is considered a national product pursuant to thelaws applicable in the Member Country.”

Federal Law No. 1 for 1979 in respect of organising industrial advice in the United Arab Emirates defined the localindustrial product as follows:

“Each product of an industrial project the production cost of which through industrialisation in the United ArabEmirates is not less than 20% of its total cost.”

The rules approved by the Higher Council further defined the products of “national origin” as follows:

“The product, the value added of which arising out of its production in any of the Member Countries, is not less than40% of its final value on completion of its production and the ownership of any of the nationals of the GCC countriesin the capital of the industrial entity is not less than 51%.

The rules further state that the national products have to be given priority in prices to those similar foreign productsin a percentage not less than 10% and priority to similar products of “national origin” in a percentage not exceeding5%. And in the event of non-availability of a national product, the products of national origin shall be given priorityof 10% to those similar foreign products.

8. Permitting investors who are nationals of the GCC countries to obtain loans from the banks and industrial development funds in the Member Countries.

13

9. Providing protection to industrial products of national origin in the GCC countries. This protection is not granted toany industrial product, which does not satisfy a certain percentage of the need in the market of the Member Countries.Such needs are designated by the protection committee in respect of each product in itself.

The protection is also not granted to products, which do not conform to the standard specifications of GCC countries.And such protection is granted only to products of national origin.

14

5 OWNERSHIP OF REAL ESTATE BY GCC NATIONALS IN MEMBER

COUNTRIES

Article 8/2 of the EA stated that the Member Countries should agree on the executive rules necessary to guarantee GCCnationals in any GCC country in respect of ownership, heirship and bequest, the same treatment as its nationals withoutdifferentiation or discriminations. Accordingly, the Higher Council approved certain rules and conditions for the organisationof real estate ownership by GCC nationals in Member Countries.

I. CONDITIONS APPROVED BY THE HIGHER COUNCIL

The Higher Council organised the ownership of real estate by GCC nationals in Member Countries pursuant to the followingterms:

1. GCC nationals (natural persons only) are permitted to own one or two real estates whether land or a building in theorganised residential areas in any Member Country, provided that the size does not exceed 3,000 sq. metres. The competent authorities in any Member Country may permit ownership of more than two real estates. Such real estatemay be acquired through any act of disposition or through a will.

2. Ownership is limited to the residential purposes of the owner or his family. Any such owned real estate might not beexploited unless the laws of the Member Country permit otherwise.

3. In the event that the owned real estate is land, the owner shall be required to commence construction within a periodof three years as of the date of registering the land in its name and complete construction within a period of five yearsas of the said date. Otherwise, the concerned Member Country may expropriate the real estate and sell the same onthe account of the owner, who will receive the price of the real estate on the date of its purchase or on the date of re-selling whichever is less. The owner shall have the right to raise an objection to the competent authority and theconcerned Member Country may extend the period if convinced of the reasons for the delay.

4. The owner may not dispose of the real estate in a manner that would result in the transfer of ownership within eightyears as of the date of its registration in its name. Exceptionally, in cases of extreme necessity and upon obtaining aprior written approval from the competent authorities, the owner may dispose of the real estate in such a manner.

5. If the ownership came through heritage, such owner shall be treated in the same manner as nationals of the MemberCountry where the real estate is situated.

6. GCC nationals (natural or corporate) are permitted to rent land in any Member Country and to exploit the same in permitted economic projects, and are further allowed to dispose of such right through sale and mortgage in accordance with the laws of the concerned Member Country.

7. The real estate within the territory of Mecca and Al Madina Al Munawarah in Saudi Arabia are excluded from suchorganisation.

8. Notwithstanding the above, the Member Country where the real estate is situated has the right to expropriate the samefor public interest in consideration of a fair indemnity in accordance with the laws applicable to its nationals.

9. This organisation of ownership of lands does not grant or provide better rights to those enjoyed by the nationals of Member Countries and does not prejudice any existing rights which were effective in the past or those that might begranted by all or part of the Member Countries in the future.

II. IMPLEMENTATION FO THE DECISION OF THE HIGHER COUNCIL BY THE UNITED ARAB EMIRATES

The UAE did not issue any executive decisions to implement the decision of the Higher Council as to the organisation ofownership of real estate by GCC nationals in view of the fact that GCC nationals enjoy better ownership rights in the UAEwhether in respect to size or purposes of ownership.

The Emirate of Dubai, Ajman, Ras Al Khaimah impose no restrictions as to ownership of non-granted lands by GCC nationals,whether in respect of the purposes (residency or commercial), the size or time limitations in respect to construction orexploitation or otherwise.

The sale and purchase of lands is suspended in the Emirate of Abu Dhabi pursuant to an Amiri Decree.

15

The Emirate of Um Al Quwain has no restrictions as to ownership of real estates by GCC nationals, however presently thesale and purchase of real estates in Um Al Quwain is suspended until a further decision.

The Emirate of Al Fujairah requires the approval of the Municipality, which may not be granted if the holder of the nationalityof a GCC country is not originally a GCC national of the country which nationality he is holding. Also permission is notgranted to “Al Bidoun” of Kuwait. Further, this Emirate imposes an obligation to construct within a period of two years.

16

6 OWNERSHIP BY GCC NATIONALS OF SHARES IN JOINT STOCK

COMPANIES IN MEMBER COUNTRIES

The Higher Council permitted GCC nationals to own shares in joint stock companies and the transfer of the ownership of thesame in the Member Countries. Accordingly, the Higher Council approved the following unified rules to regulate and governthe ownership and trading of shares by GCC nationals in joint stock companies in the Member Countries.

The rules defined the ‘joint stock company” (JSC) as a company holding the nationality of one of the GCC countries,incorporated pursuant to the companies law or regulations in the said country and its capital is divided to shares of equalvalue and can be traded. The rules further defined “GCC nationals” as the natural persons holding the nationality of one ofthe GCC countries and the corporate persons that the majority of its capital is owned by GCC nationals or GCC Governmentsand holds the nationality of any GCC country.

I. RULES APPROVED BY THE HIGHER COUNCIL

1. GCC nationals are permitted to incorporate JSC conducting one of the economic activities permitted to GCC nationals and to participate in the incorporation of, subscribe for, own and trade in shares of existing JSC’s, all in accordance with the decisions of the Higher Council and the provisions of the EA.

2. GCC nationals may own and trade in shares of JSC’s in accordance with the rules applicable to the nationals of theMember Country where such JSC is located.

3. A Member Country, in which a JSC is incorporated, may require that its nationals own shares in the JSC provided thatsuch ownership does not exceed 51% of the share capital.

4. With the exception of insurance companies, banks and exchangers, GCC nationals are permitted to incorporate JSCand to participate in the incorporation, subscribe for, own and trade in shares of existing JSC’s, which operate in anyof the other non-permitted economic activities to GCC nationals, to the extent of 25% of the share capital of such JSC’s, in accordance with the rules applicable to the nationals of the Member Country where such JSC’s are located.

5. The incorporation and subscription procedures are to be pursuant to the national regulations of the Member Countrythe nationality of which is held by the JSC.

6. Shares owned by any GCC national have the same voting rights and powers as those determined for shares owned by the nationals of the hosting Member Country.

7. With the consideration of the provisions of the companies law of the country where a JSC is registered and also theprovisions of the articles of association of the company, the percentage of representation in the board of directors ofGCC nationals, other than the nationals of the Member Country where the company is registered, shall not exceed the percentage of their ownership.

Any Member Country may require that all members of the board of directors, whether natural persons or representatives ofcorporate persons, be GCC nationals.

The above rules do not prejudice any better rights or privileges effective or previously determined or may be granted in thefuture to GCC nationals in any Member Country, by any or all Member Countries.

II IMPLEMENTATION OF THE DECISION OF THE HIGHER COUNCIL BY THE UNITED ARAB EMIRATES

The UAE did not issue any executive decisions to implement the unified rules of the Higher Council in respect of therules of ownership by GCC nationals of shares in joint stock companies in Member Counties in view of the fact thatthe UAE Commercial Companies Law, Federal Law No.8 of 1984, as amended (the “Law”) permits the ownership byGCC nationals of shares in JSC’s, already existing or being incorporated, in the United Arab Emirates. It furtherpermits the transfer of ownership of such shares provided always that the ownership of UAE nationals in suchcompanies is not less than 51% of the share capital and that the majority of the members of the board of directors ofthe company are UAE nationals in addition to the Chairman being a UAE national. However, the UAE requested fora period of five years to implement unified rules, which were approved in December 1994.

17

7. SPECIFIC CONDITIONS/REQUIREMENTS OF CERTAIN EMIRATES IN

RESPECT TO ACTIVITIES IN GENERAL

As previously mentioned, each of the Emirates might have or impose specific conditions and requirements in relation toactivities other than those stated herein and/or required by the applicable laws. Such conditions and requirements apply toUnited Arab Emirates nationals and non-United Arab Emirates nationals, including GCC nationals, and further apply inrespect to permitted and not permitted activities to GCC nationals.

Lists of activities (including those not permitted to GCC nationals) which require in the Emirates of Abu Dhabi, Dubai andSharjah certain approval(s) from certain official or governmental authorities or which are exclusively licensed to United ArabEmirates nationals or which are presently suspended (not being licensed) are provided below.

These lists do not state all the activities but clarify the main activities as enumerated through obtaining information from thecompetent authorities in the relevant Emirates, without detailing the activities that divaricated from the main ones. Other typesof lawful activities may be licensed.

Further, it is worthwhile to note that suspended activities may be licensed upon obtaining special approvals. Also there mightoccur, at any time, a change as to such activities, whereas it may be decided to resume licensing a certain suspended activityor to license a certain activity to non-UAE nationals or no longer require approval of certain authorities.

18

No. Type of Activity Authority to Grant Approval

1. Branch offices of foreign companies

2. Representation of companies

3. General trading

4. Travelling & tourism

5. Marine transport, chartering vessels and shipping

agencies

6. Public services including bringing in human

resources

7. Hotels and leasing furnished apartments

Executive Council

1. Public Transportation

2. Showrooms:

Sale & Purchase of Used Cars

3. Renting Cars (Committee constituted of the Executive

Council)

4. Money Exchange

5. Selling of Gold

6. Sale and purchase of spare parts for used cars

7. Car repair workshops (painting and mechanical

repairs)

8. Manufacturing of seals, silk screen and keys

9. Carriage and towing of cars

10. Driving training schools

11. Any other activity that requires the approval of the

Police General Directorate

General police Directorate

1. Private medical centres, clinics and hospitals

2. Pharmacies and drug stores

3. Eyesight testing and medical contact lenses

Ministry of Health

1. Selling all kinds of foodstuff, meat (butcheries),

livestock, sheep, guts and leather tanning

2. Repair workshops (cars, A/C units, electrical

appliances)

3. Trading in chemical materials, insecticides, fertilizers

and constructions materials

4. Studios for photocopying and developing

5. Beauty saloons, hotels and sport clubs

Health Department & Food control Laboratory

I. EMIRATE OF ABU DHABI

(1) Activities Requiring Certain Approvals

19

1. Agricultural works and agricultural equipment Agricultural Department & Agricultural Guidance

2. Veterinary medications

1. Licences for educational institutions and schools

2. Educational services

3. Training institutions

Ministry of Education

1. University services Ministry of Higher Education

1. Engineering consultancies (Design & Supervision)

2. Consultancy officesTown Planning Department & Planning Department

1. Kindergarten and administrative training institutions

2. Bringing in human resources and employmentMinistry of Labour & Social Affairs

1. Licences of advocacy and legal consultancy.

2. Legal translation

Ministry of Justice

1. Insurance companies and insurance brokers

2. Accounts auditing licences

3. Opening branch offices of foreign companies

Ministry of Economy & Commerce

1. Banks

2. Representative Offices

3. Sale and purchase of financial bonds

4. Money exchange licences

UAE Central Bank

1. Custom clearance Customs Department

1. Shipment by sea, marine works, sea diving works.

2. Bunkering

Marine Ports Department

1. Shipment by air, passenger services, sales of

travelling tickets

2. Airway transportation

Civil Aviation Department.

1. Wireless and non-wireless equipment Ministry of Transport

1. Services of land and marine fields of oil and gas

2. Sale of petrol derivatives

Higher Council of Petrol

1. Import of oil and gas distribution ADNOC Distribution

20

1. Trading in fire extinguishing, security and safety equipment and installation of security alarm systems General Directorate of Civil Defence

1. Factories General Industry Corporation

1. Pilgrimage and Omrah Ministry of Culture & Islamic Affairs.

1. Transportation of documents General Post Office.

1. The sale and purchase, recording and renting of

audio and video cassettes, laser discs visual and

audio and compact discs

2. Import, export, sale and designing computer

programmes

3. Bookshops: for selling books, newspapers and

magazines

4. Cinemas and theatres

5. Artistic, radio, television, theatrical and musical

production. Artistic studios

6. Management and organisation of exhibitions

7. Publishing houses. Printing establishments and

printing works

8. Licences for publishing newspapers, magazines and

press services

9. Publicity and advertisements, printing of silkscreen,

publicity posters, drawing, calligraphy, publicity gifts,

design and production of press and radio

advertisements

10. Bringing in artistic and theatrical groups

11. Importing satellite dishes and television coding

equipment

12. Importing cinema movies and subtitling and

translating cinema movies

Ministry of Information & Education.

(2) Activities Exclusively Licensed to UAE Nationals

1. General trading.2. Companies representation.3. Travelling & tourism offices.4. Public services.5. Chartering and ownership of vessels and shipping agencies.6. Car clubs.7. Car rentals.8. Public transportation.9. Driving training offices.10. Showrooms for the sale and purchase of used cars.11. Cinemas12. Bringing in human resources and employment.

21

(3) Suspended, Exclusive and Prohibited Activities

1. Importation of oil: ADNOC undertakes the responsibility of this activity as it is the sole distributor of oils.2. Public coffee shops: - Nightclubs outside hotels: - Suspended

Male massage clubs: may not be licensed with female staff.3. Activities violating the Shariá and the laws are prohibited and may not be licensed.

II. EMIRATE OF DUBAI



1. License for Typing/Sign Boards Production Ministry of Information and Culture

1. License for Production of Medicine/Production of

Serums/Production of Medical Chemicals

Ministry of Health/Health & Medical Services Department

1. Production of Veterinarian Medicine Ministry of Agriculture and Fisheries

1. Production of Grease and Lubricant Oils/Production

of Fuel and Lighting Oils

Emirates Corporation/EPPCO

1. License for Ship and Boat Repairs Jeddaf Dubai (not needed always if the site was in JeddafDubai)

1. Production of Gold and Silver Jewellery/Production of Silver Items and Jewellery /Precious Stone Cutting and Polishing/Production of Precious Jewellery

Dubai Police General Head Quarters (Installation SecurityDepartment)

1. Production of Cement/Concrete/Red/ Sand Blocks Dubai Municipality/Construction Research Committee

1. Fuel Station Activities

2. Distribution of Car and Vehicles Fuel

3. Grease and Lubricant Oil Trade

4. Oil Derivatives Trade and Refining

Emirates Petroleum Corporation or EPPCO

1. Government Trade Liaison Office

2. Flowers and Indoor Plant Trade

3. Agricultural Pesticides Trade

4. Chemical Fertilizers Trade

5. Organic Fertilizers Trade

6. Seeds and Buds Trade

7. Tree and Plant Seedlings Trade

Dubai Chamber of Commerce & IndustryDubai Municipality - Agriculture Dept.

22

1. Kerosene and Diesel Trade Ruler’s Court

1. Gold & Silver Jewellery Trade

2. Pearl and Precious Stones Trade

3. Un-cut Gold and Precious Stones Trade

Dubai Police General Head Quarters(Installation Security Department)

1. Sale and Rent of Recorded Video Cassettes

2. Recorded Audio CDs and Cassettes

3. Sale and Rent of Recorded Video CD

4. Specialized Magazines and Newsletter trade

5. Books, Newspapers and other Printed Materials

Trade

6. Radio and TV Programme Trade and Distribution

7. Cinematic Films Distribution and Rent Trade

8. Advertising Agency

9. Library

10. Cinema Theaters

11. Play Theaters

12. Cinema and TV Studios

Ministry of Information and Culture

1 Stamp Trade

2. Courier Services

3. Postal Services

General Postal Authority

1. Medicine Trade

2. Medical Chemicals Trade

3. Pharmacy

Ministry of Health - Health & Medical Services Department

1. Optical and Contact Lenses Trade

2. (License for Practicing Business)

Health & Medical Services Department

1. Veterinarian Medicine Trade Ministry of Agriculture and Fisheries

2. Fish and Sea Animal Trade Ministry of Agriculture and Fisheries (in case of export)

1. Oil Well Chemicals TradeDubai Municipality - Environment Protection Department -Ruler’s Court

1. Fire Fighting Materials Trade Safety and Fire Fighting Equipment and Systems Trade

Civil Defense Department

1. Distribution of LPG Emirates Gas Company

1. Passenger Transport by Bus between Cities. Ministry of Communications

23

1. Passenger Sea Carriage

2. Goods Sea Carriage

3. Carriage of Oil and Its Derivatives by Oil Tankers

4. Passenger Transport by Boat

5. Ship Chartering

6. Renting of Marine Tows and Sandals

7. Goods and Passenger Sea Carriage under Special

Contracts

8. Shipping and Clearing of Goods (by sea)

9. Goods Packing Services

10. Sea Port Management

11. Ship Pilotage and Towage

12. Description and Classification of Marine Transport

Means

13. Salvage of Ships and their Loads

14. Container Loading and Unloading Services

15. Ship Management and Operation

16. Ship Chartering Brokerage

17. Organization of Goods Sea Transport Operations

18. Organization of Passengers Sea Transport Operations

and Related Activities

19. Food Staff Catering Services (in case of ship catering)


1. Fuel Catering Contracts (in case of ship catering) Emirates Petroleum Corporation or EPPCO

1. Land Transport of Cargo

2. Water Carriage by Water Tankers

3. Transport by Refrigerated Traders

4. General Road Transport

5. Transport of Oil Materials by Tankers (Approval from

Emirates - EPPCO)

6. Transport of Money and Valuable Materials

Dubai Police General Head Quarters(Traffic Department)

1. Telecommunications Equipment and Systems (except

for Mobile Telephones)

Ministry of Communications

24

1. Passenger Air Carriage

2. Cargo Air Carriage

3. Air Craft Charter

4. Passenger Transport by On Call Chartered Air Craft

5. Passenger and Cargo Air Carriage under Special

Contracts

6. Cargo Shipping and Clearing Services (Air Cargo)

7. Organization of Air Port Ground Services

8. Description and Classification of Air Transport Means

9. Civil Aviation Movement Related Information

Services

10. Airline Agent

11. Organization of Passenger Air Carriage Operations

and related Services

12. Organization of Cargo Transport by Air

13. International Airlines Office

Civil Aviation Department

1. Organization of International Haj Voyages. Ministry of Justice

1. Wire and Wireless Communication Services

(Telecommunications)Ministry of Communications

1. Car Export Certificates and Licenses Services International Car Club

1. Commercial Bank

2. Credit and Finance Bank

3. Investment Bank

4. Financial Speculations

5. Savings Bank

6. Local Securities Sale and Purchase Broker

7. Futures Sale and Purchase Broker

8. Finance Operations

9. Bank Representative Office

10. Financial Investments

11. Foreign Currency Sale and Purchase (Exchange

Offices)

12. Money Broker

13. Foreign Shares and Stock Sale and Purchase Broker

14. Display and Publication of Exchange Rates and

Precious Metals Prices Services

U.A.E. Central Bank

25

1. Insurance Broker

2. Insurance Underwriter

3. Insurance Actuary

4. Life Insurance

5. Life Re-Insurance

6. Accidents and Liability Insurance

7. Fire Insurance

8. Land, Sea and Air Transport Risks Insurance

9. Savings and Capital Insurance

10. Re-insurance

11. Other Insurance Types

12. Medical Insurance

Ministry of Economy and Commerce

1. Rent of Marine Sports and Leisure Equipment Dubai Municipality

1. Rent of Leisure Helicopters Civil Aviation Department

1. Internal and External Landscaping

2. Sand Compacting Works

3. Refilling and Ground Levelling Works

4. Foundation and Piling Works

5. Erection of Building Steel Structures

6. Erection of Building Steel Components

7. Electrical Wirings and Fixing Works

8. Concrete Works

9. Concrete Patching Works

10. Execution of Interior Design Works

11. Refurbishment of Monumentary Buildings

12. Execution and Installation of Pre-stressed Structural

Units

13. Land Drying Out Works

14. Preparatory Works for Civil Purposes

Dubai Municipality

1. Construction of Telecommunications Towers and

Lines (Dubai Municipality after Initial Approval)

2. Installation of Wire and Wireless

(Telecommunications) Equipment

3. Consumption, Industrial and Agricultural Cooperative

Marketing Activities - Bazaar

Dubai Municipality

Ministry of Labour and Social Affairs

26

1. Chemical & Biological Analysis Laboratory

2. Gold and Precious Metal Analysis and Test

Laboratory

3. Mechanical and Physical Test Laboratory

4. Weight and Measurement Calibration Laboratory

5. Inspection and Repair of Pipelines.

Dubai Municipality - Laboratories

1. Soil Test Services Dubai Municipality - Building Research Section

1. Books and Printed Material Publishing Services

2. Type Setting Services

3. Advertisements Design & Production

4. Shooting Commercial Advertisements

5. Sub-Titling of Cinema and TV Films and Tapes

6. Preparation and Distribution of Newspaper Articles

7. Production of Cinema Films

8. Shooting Documentaries

9. Shooting Special TV Conferences and Shots

10. Production of TV Programmes and Series

11. Production of Radio Programmes

12. Audio Tape Recording

13. Video Tape Recording

14. Re-Broadcasting of International TV Network

Programmes

15. Recording of Audio and Video CD.


1. News Agency

2. Printings and Stationery Kiosk

3. Newspaper, Magazine and Periodicals Publishing

4. Other Publishing Activities.


1. Blind Institution - Deaf and Mute Institution Ministry of Labour and Social Affairs Ministry of Education

1. Schools of all Stages - Specialized Professional Schools – Kindergartens.


1. Disabled Institute – Nurseries. Ministry of Labour and Social Affairs

1. Nursing Schools Ministry of Health & Ministry of Education

1. Religious Schools and Institutes Ministry of Education

27

1. Language Institute

2. Business Services Institute

3. Educational and Social Services

4. Drawing and Sculpture Institute

5. Housekeeping Educational Centre (If Granting

Degrees).

6. Holy Quran Memorizing Centre

7. Religious Center.


1. Specialized Professional Centre

2. University College

3. Communal College

4. University

5. University and Institute Admission Services.

Ministry of Higher Education

1. Flying Training Centre Civil Aviation Department

1. Computer Operations Training Center.

2. Computer Programming Training Centre

3. Administration Training Services

4. Technical Training Services.


(If Giving Certificates)

1. Public Welfare Society/Humanitarian Society

2. International Business Organization

3. International Agency Office


1. Insurance Consultancy

2. Survey and Assessment

Ministry of Economy & Commerce

1. Financial Investment Consultancy U.A.E. Central Bank

1. Engineering Consultancy Dubai Municipality - Contractors

1. Construction Quantity Survey Registration Committee

1. Clinics

2. Hospitals

Ministry of Health - Clinics Department

1. Laboratories

2. Other Medical ActivitiesHealth and Medical Services Dept.

28

1. Veterinarian ClinicMinistry of Health Ministry of Agriculture and Fisheries

Other Medical Services namely:

1. X-Ray and Diagnostic Examinations Center

2. Health and Treatment Contracting Services

3. Dental Laboratory

4. Reparative (Compensatory) Aid Plant

5. Optical Services

Ministry of Health & Medical Services Dept.

1. Laboratories Ministry of Health - Clinics Department

1. Medical Analysis Laboratory Health and Medical Services Dept.

1. Manpower Supply and Recruitment Services. Ministry of Labour and Social Affairs

1. Management and Organization of Awqaf

(Endowments)Awqaf and Islamic Affairs Department

1. Car Wash

2. Car Oil ChangeDubai Municipality - Drainage Section

1. Metal Blasting Dubai Municipality - Environment Protection Department

1. Repair of Telecommunications Equipment and System (except for mobile telephones)

Ministry of Communications

1. Collection and Preparation of Non Metallic Waste

2. Welding and Black Smith Workshop

3. Waste Collection, Removal and Transport Services

4. Sea and Beach Cleaning Works

5. Metal Waste Collection Works

6. Used Lubricant Oil Collection.

Works + Approval from Emirates. Petroleum

Corporation or EPPCO.

7. Organic Waste Collection Works.

8. Collection of Food Stuff Left Over and Waste.

9. Removal of Pollution and Environment Protection

Services.

10. Collection and Processing of Non-Metallic Waste.

Dubai Municipality - Environment Protection Department

1. Goldsmith Dubai Police General Head Quarters

29

1. Silver Smith Installation Security Department

1. Fire Works

2. Private Security

Dubai Police

1. Sewage and Water Drainage

1. Laundry Services

2. Carpet Wash and Cleaning Services

3. Barber Shop

4. Ladies Beauty Saloon

5. Ladies Hair Dresser

6. Hena Saloon

7. Gents Beauty Saloon

8. Bakery (Issue Only)

9. Oriental Hammam For Men

10. Oriental Hammam For Ladies

11. Health Clubs for Gents and Ladies

Dubai Municipality - Health and Drainage Department

1. Hair Cutting Training Center

2. Beauty Saloon Staff Training Centre


1. Fish Seller

2. Butcher

3. Green Grocer

4. Refreshment Kiosk

Dubai Municipality - Markets Section

1. Cutting and Fixing Eye Glass Lenses Health & Medical Services Department

1. Diving Services Coast Guard - Ministry of Interior

1. Pet Shelter and Training Dubai Municipality - Veterinarian Section

1. Legal Consultancy Ruler’s Court

1. Auditing Ministry of Economy and Commerce

1. Translation Services Ministry of Justice

1. Pattern Registration Agency Ministry of Finance & Industry

1. Billiard Hall Emirates Billiard Association

30

1. Leisure Sports Club Concerned Sport Federation

1. Equestrian Club

2. Bowling Club

3. Karate Club (Martial Arts)

4. Judo Club (Martial Arts)

5. Taekwando Club (Martial Arts)

6. Diving Training Club

7. Body Building Club

Ministry of Education and Youth

1. Sport Race and Tournaments Organization Services

2. Sport Services and Contracting

Ministry of Education and Youth

1. Physical Fitness Club For Gents

2. Physical Fitness Club For Ladies

Municipality Clinic

1. Social Club

2. Restaurants & Coffee Shop Activities

Municipality

1. Regional Liaison Office

2. Government Trade Liaison Office

Dubai Chamber of Commerce &Industry

(2) Activities Exclusively Licensed to UAE Nationals with Exceptions

1. General trading (GCC nationals are exceptionally excluded as they are permitted to conducted this activity).

2. Car rentals.3. Institutions for teaching motor cycles driving.4. Brokerage in respect to the sale and purchase of real estate.5. Sale and purchase of real estates.6. Printing.7. Clinics (exceptionally GCC nationals are permitted to conduct this activity).8. Engineering consultancy (are exclusively licensed to UAE nationals with the exception of branch offices of

foreign companies).9. Institutions for the teaching of driving machinery and heavy vehicles.10. Institutions for teaching car driving.11. Real estate renting and management services.12. Land public transportation.13. Hospitals (exceptionally GCC nationals are permitted to conduct this activity).

(3) Suspended Activities

1. Constructions Works.2. Commercial information services.

31

III EMIRATE OF SHARJAH



1. Printing establishments.

2. Video store.

3. Bookshops.

4. Computer programs.

5. Silkscreen.

6. Publicity and advertisements.

7. T.V. production.

8. Companies selling satellites.

Ministry of Information (Federal)

1. Institutions.

2. Private schools.

Ministry of Education & Youth (Federal)

Directorate of Continuous Education

Directorate of Private Teaching

1. Private hospitals.

2. Clinics.

3. Pharmacies.

4. Medications factories.

5. Medications stores.

6. Medical spectacles and contact lenses.

7. Companies importing and trading in medications,

medical herbs and cosmetics.

8. Fitness, health, massage and rubbing centres.

Ministry of Health (Federal)

1. Farms.

2. Trading in fodder.

3. Trading in transplants, flowers, organic fertilizers.

4. Veterinary clinics.

5. Trading in veterinary medications.

6. Trading in animals.

7. Trading in imported fish.

Ministry of Fish Resources

(Federal)

1. All commercial agencies.

2. Accountants.

3. Insurance and re-insurance.

4. Foreign companies and branches.

5. Insurance brokers.

6. Insurance consultants.

7. Offices of surveyors and loss adjusters

Ministry of Economy (Federal)

32

1. Law offices.

2. Legal translation.Ministry of Justice (Federal)

1. Trading in wireless and non-wireless equipment and

maintenance of the same.

Ministry of Communication (Federal)

1. Private universities. Ministry of Higher Education (Federal)

1. Kindergartens.

2. Bringing in human resources

3. Associations of public benefit


1. Banks.

2. Exchangers.

3. Companies trading in shares.

4. The bourse

5. Financial investment companies

6. Banking financial and investment consultancies.

7. Financial brokers.

8. Finance companies

UAE Central Bank (Federal)

1. Companies selling fire extinguishing equipment,

tools and materials.Civil Defence Department (Federal)

1. Express Mail.

2. Delivery of documents. General Authority of the Post.(Federal)

1. Manufacturing of seals and keys. Police Directorate (Local)

1. Transportation.2. Car rentals.3. Sewage suction.

Police Directorate (Local)

1. Travel and tourism

2. Air shipping

3. Air custom clearance.

4. Air transport companies.

5. Aviation training.

6. Air survey.

7. Aircrafts chartering.

8. Aircrafts spare part.

Civil Aviation (Local)

33

1. Shipping by sea.

2. Marine custom clearance.

3. Marine navigation.

4. Maintenance of ships and marine engineering.

5. Ship supply.

6. Transport by sea.

7. Ship agents.

8. Trading in ships and vessels.

UAE Central Bank (Federal)

1. Drilling for oil.Civil Defence Department (Federal)Directorate of Oils &

Minerals (Local)

1. Pilgrimage and Omrah.

2. Teaching and memorizing Al Quran.

3. Charitable Centres.

Directorate of Religious Endowments (Local)

1. Laying gas pipes.

2. Digging of artesian wells.

3. Electricity contracting

Sharjah Electricity & Water Authority (Local)

1. T.V. Stations. Sharjah Television (Local)

1. Foreign banks. Central Financial Directorate (Local)

1. Organization of exhibitions Sharjah Chamber of Commerce & Industry (Local)

(2) Activities Exclusively Licensed to UAE Nationals with Exceptions

(3) Suspended Activities

1. Leasing of tourist resorts pursuant to the dividing of time system. 2. Financial investments.3. Purification and bottling of drinking water (suspended only in respect of factories).4. Trading in scrap and trading in aluminium, iron and copper scrap.5. Accumulation of plastic remains.6. Stone cracking.7. Services in respect of collecting, removing and transporting garbage.8. Services of street cleaning.9. Collecting of mineral trash.10. Leather tanning.

34

PUBLICATIONS PRODUCED BY AL TAMIMI & COMPANY

The informative brochures listed below are available free of charge from the lobby of any of our offices in the UAE. Wewould also be happy to send them to you by post if you contact our Dubai office reception. Alternatively, the text of thebrochures may be accessed on our website at www.tamimi.com

Arbitration: Theory and Practice in the United Arab Emirates

Laws Regulating Insurance in the United Arab Emirates

Summary of International Agreements signed between the UAE and other countries

UAE Immigration Laws and proceedures in Dubai

E-Commerce and the UAE Law

Bankruptcy in the United Arab Emirates- Laws and Proceedures

UAE Labour Law

Companies under the UAE Commercial Companies Law

Schedule of Trademark Charges

Registration of Industrial Patents, Drawings and Designs in the United Arab Emirates

The Copyright Law in the United Arab Emirates

UAE Construction Law and Dispute Resolution

Media Query- Setting up in Dubai Media City

IT Query - E-Commerce and the UAE Law

Framework for Litigation in the United Arab Emirates

Islamic Finance- A UAE Legal Perspective

Banking and Security law in the UAE

Establishing Offshore Companies in the Jebel Ali Free Zone

Customs Law in the GCC

Standards & Classifications in the UAE

Al Tamimi & Company also has a free monthly newsletter called Law Update which provides readers with the latest newson legal and commercial developments in the region. To subscribe please send an email to: [email protected] orcall +971 4 3317090 or Fax: +971 4 3313177.

visit us at www.tamimi.com

the gcc economic agreement & customs law

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