Transcript Slide 1

The Arab-British Chamber of Commerce
Mr Abdeslam El Idrissi
Director of Trade Services
“Our relations with Britain are age-old. We are so close
with one another and through this mutual closeness we
have found that Britain is worth of respect and trust.”
The late president and founder of the UAE
Sheikh Zayed bin Sultan Al Nahyan
Overview
The 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 Tips
 Know your product
 Do some desk research
 Language and culture
 Identify your market
 Visit the market
 Appoint a good Agent
 Draft a robust
agreement
 Agree payment terms
 Export documentation
The Arab States
“The Arab States region is
home to over 330 million
people, living in 22
countries that stretch from
Morocco, Mauritania
and 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 States
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Algeria
Bahrain
Comoros
Djibouti
Egypt
Iraq
Jordan
Kuwait
Lebanon
Palestine
Libya
12. Mauritania
13. Morocco
14. Oman
15. Qatar
16. Saudi Arabia
17. Somalia
18. Sudan
19. Syria
20. Tunisia
21. UAE
22. Yemen
The 22 Arab States Population
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Algeria
Bahrain
Comoros
Djibouti
Egypt
Iraq
Jordan
Kuwait
Lebanon
Libya
Morocco
Mauritania
33.3 million
0.7 million
0.7 million
0.5 million
80.1 million
27.5 million
6.1 million
2.5 million
3.9 million
6.1 million
33.1 million
3.2 million
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Palestine
Oman
6.5 million
3.3 million
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Qatar
0.9 million
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Saudi Arabia
Sudan
Syria
Somalia
Tunisia
27.6 million
39.3 million
19.3 million
9.1 million
10.2 million
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UAE
4.4 million
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Yemen
22.2 million
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Until 1500 : The area was a centre of sea piracy.
16th century: The Portuguese started trade there.
18th century: The British started trading in this region.
1820: The British force the shaykhs on the coast to stop
piracy.
1853: A treaty signed between the shaykhs and the
British. The region is given the name of 'Trucial coast'.
1873: The Trucial Coast is administered by the British.
1952: The seven emirates establish a Trucial Council.
1970: Independence is given to the emirates.
1971: United Arab Emirates established, and is made up
of six of the emirates.
1972: Ra'su l-Khayma joins the United Arab Emirates
The United Arab Emirates
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Abu Dhabi (Capital)
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Dubai
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Sharjah
President :
H.H. Sheikh Khalifa Bin Zayed Al Nahyan
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Ajman
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Umm Al Quwain
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Fujairah
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Ras Al Khaimah
Prime Minister & Vice President:
H.H. Sheikh Mohammed bin Rashid Al Maktoum
Rulers of the Emirates
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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 Emirates
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The United Arab Emirates (UAE) is the largest
market in the Middle East for the UK, in real
terms it is the UK's 9th largest export market
in the world.
Opportunities:
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Tourism
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Consumer goods
Banking and finance
Training
IT
Pharmaceuticals
Aerospace/airports
Timber
Textiles
Power supply
Know-how
Teaching
Construction
Power generation
equipment
Vehicles
Industrial machinery
Telecommunications
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The UAE’s economy is booming, and its
programme of investment and privatisation
offers good opportunities for UK businesses.
Trade between the two countries is growing at
a fast pace and UK businesses are increasingly
participating in the UAE's property and
construction sectors.
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UK Exports to UAE
£3.6bn
UK Imports from UAE £1.1bn
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UK’s main export sectors
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Manufactured goods
Telecommunication
Industrial machinery
Vehicles
Power generation equipment
Know how
The Market
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UAE is the leading regional hub
A growing market
A prosperous market
A diversified market
An accessible market
Business Environment
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Highly developed economy
Free enterprise system
State-of-the-art telecommunications
Sophisticated financial and service sector
Top international exhibition and conference venues
High quality office and residential accommodation
Reliable power and utilities
First class hotel, hospitals, schools, shops and leisure
facilities
Cosmopolitan lifestyle
UAE Business Climate
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No Personal income and capital taxes
No corporate taxation
100% repatriation of capital and profits
No currency restrictions
Competitive import duties (5% with many
exemptions)
Modern efficient communications facilities
Simple staff recruitment procedures
Competitive freight charges
UAE Business Climate
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Open & transparent market
English is widely spoken
Full range of banking and business
services
First class infrastructure
Pro-business government policies
Free zones
Doing Business in UAE
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UAE is a member of the WTO
No foreign-exchange controls
Customs Valuation & Import Tariffs
Calculated on the CIF value at the rate of
5%
Intoxicating liquors: 50% of the CIF value
Tobacco products: 100% of the CIF value
UAE Free Zones
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Further to its strategic location between Europe and Asia, the UAE has
established numerous Free Trade Zone Areas to give businesses an
additional incentive to be located there.
The Free Trade Zones in the UAE are well equipped with all the
amenities, facilities and communication infrastructure required to set
up a business. Furthermore, 100% foreign ownership is allowed with
no recruitment or sponsorship requirements. Corporate tax and
customs duty exemption on imported raw materials and equipment
and no levy on exports and imports are some of the other benefits.
Jebel Ali Free Zone
Saadiyat Free Zone
Hamriyah Free Zone (Sharjah)
Ajman Free Zone
Sharjah Airport Free Zone
Doing Business in UAE
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Sell directly to dealers and distributors
Commercial agency arrangements
Agent must be a UAE national/company
Agreement to be registered with Ministry of Economy and Commerce
Branch or representative office
• 100% foreign ownership permitted
• Local sponsor must be appointed
Limited liability company
• foreign ownership restricted to 49%
• local partner is required
Free zone establishment
• 100% foreign ownership
 No sponsor or partner required
• no import duties
Free Zone Incentives
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100 per cent foreign ownership
Exemption on all import and re-export duties
100 per cent repatriation of capital and profits
Freedom from corporate taxation for 50 years with an
option to renew
No personal income taxes
An abundant and inexpensive energy supply
Simple, efficient recruiting procedures
High level of administrative support from authorities
Imports
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Electronics Equipment
Jewellery
Vehicles
Machinery
Metals
Textiles
Top 5 Source Countries
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India (1)
China (2)
USA (3)
UK (4)
Japan (5)
Singapore (15)
Developments
• World’s 3 largest man-made islands
• The Palm Jumeirah
• The Palm Jebel Ali
• The Palm Deira
• Over 60 luxury hotels, 5,000 residential
beachside villas, 5,000 apartments,
marinas and theme parks
• Due for completion by 2009
•Dubai Metro
•Shopping Malls
The World Islands
•Consists of over 300 man-made
islands that are designed to
represent the world map
• Located 4km offshore from
Dubai
• 9km (width) by 7km (length)
• Visible from space
• As of April 2006, 90% of land
reclamation is complete, with 270
islands visible above water
•Due for completion by late
2008
Burj Dubai
•World’s tallest tower, iconic
structure of Downtown Burj
Dubai Project
• Completed 80 floors (277m)
as of Oct 31 2006
• Burj Dubai is adding a new
floor every 3 days
• Will house one of the first
Armani Hotels
• Observation Deck at 442m.
To be completed in 2008
UAE The Place
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To do business in
To Exhibit in
To holiday in
To live in
The Arab-British Chamber of Commerce
Thank you
Abdeslam El Idrissi
Director of Trade Services
0207 659 4880
[email protected]
www.abcc.org.uk