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.” “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 Know your product Do some desk research Do some desk research Language and culture Language and culture Identify your market Identify your market Visit the market Visit the market Appoint a good Agent Appoint a good Agent Draft a robust agreement Draft a robust agreement Agree payment terms Agree payment terms Export documentation 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 1. Algeria 2. Bahrain 3. Comoros 4. Djibouti 5. Egypt 6. Iraq 7. Jordan 8. Kuwait 9. Lebanon 10. Palestine 11. 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 Algeria 33.3 million Algeria 33.3 million Bahrain 0.7 million Bahrain 0.7 million Comoros 0.7 million Comoros 0.7 million Djibouti 0.5 million Djibouti 0.5 million Egypt 80.1 million Egypt 80.1 million Iraq 27.5 million Iraq 27.5 million Jordan 6.1 million Jordan 6.1 million Kuwait 2.5 million Kuwait 2.5 million Lebanon 3.9 million Lebanon 3.9 million Libya 6.1 million Libya 6.1 million Morocco 33.1 million Morocco 33.1 million Mauritania 3.2 million Mauritania 3.2 million Palestine 6.5 million Palestine 6.5 million Oman 3.3 million Oman 3.3 million Qatar 0.9 million Qatar 0.9 million Saudi Arabia 27.6 million Saudi Arabia 27.6 million Sudan 39.3 million Sudan 39.3 million Syria 19.3 million Syria 19.3 million Somalia 9.1 million Somalia 9.1 million Tunisia 10.2 million Tunisia 10.2 million UAE 4.4 million UAE 4.4 million Yemen 22.2 million Yemen 22.2 million

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 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 Emiratesshaykhs

The United Arab Emirates Abu Dhabi (Capital) Abu Dhabi (Capital) Dubai Dubai Sharjah Sharjah Ajman Ajman Umm Al Quwain Umm Al Quwain Fujairah Fujairah Ras Al Khaimah Ras Al Khaimah President : H.H. Sheikh Khalifa Bin Zayed Al Nahyan Prime Minister & Vice President: H.H. Sheikh Mohammed bin Rashid Al Maktoum

Rulers of the Emirates HH President Sheikh Khalifa bin Zayed Al Nahyan, Ruler of Abu Dhabi HH Vice-President and Prime Minister Sheikh Mohammed bin Rashid Al Maktoum, Ruler of Dubai HH Dr Sheikh Sultan bin Mohammed Al Qasimi, Ruler of Sharjah HH Sheikh Saqr bin Mohammed Al Qasimi, Ruler of Ra’s al-Khaimah HH Sheikh Hamad bin Mohammed Al Sharqi, Ruler of Fujairah HH Sheikh Rashid bin Ahmed Al Mu’alla, Ruler of Umm al-Qaiwain HH Sheikh Humaid bin Rashid Al Nuaimi, Ruler of Ajman

The United Arab Emirates 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. 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. The UAE’s economy is booming, and its programme of investment and privatisation offers good opportunities for UK businesses. 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. 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. UK Exports to UAE £3.6bn UK Exports to UAE £3.6bn UK Imports from UAE £1.1bn UK Imports from UAE £1.1bn Opportunities: Tourism Tourism Consumer goods Consumer goods Banking and finance Banking and finance Training Training IT IT Pharmaceuticals Pharmaceuticals Aerospace/airports Aerospace/airports Timber Timber Textiles Textiles Power supply Power supply Know-how Know-how Teaching Teaching Construction Construction Power generation equipment Power generation equipment Vehicles Vehicles Industrial machinery Industrial machinery Telecommunications Telecommunications

UK’s main export sectors Manufactured goods Manufactured goods Telecommunication Telecommunication Industrial machinery Industrial machinery Vehicles Vehicles Power generation equipment Power generation equipment Know how Know how

The Market UAE is the leading regional hub UAE is the leading regional hub A growing market A growing market A prosperous market A prosperous market A diversified market A diversified market An accessible market An accessible market

Business Environment Highly developed economy Highly developed economy Free enterprise system Free enterprise system State-of-the-art telecommunications State-of-the-art telecommunications Sophisticated financial and service sector Sophisticated financial and service sector Top international exhibition and conference venues Top international exhibition and conference venues High quality office and residential accommodation High quality office and residential accommodation Reliable power and utilities Reliable power and utilities First class hotel, hospitals, schools, shops and leisure facilities First class hotel, hospitals, schools, shops and leisure facilities Cosmopolitan lifestyle Cosmopolitan lifestyle

UAE Business Climate No Personal income and capital taxes No Personal income and capital taxes No corporate taxation No corporate taxation 100% repatriation of capital and profits 100% repatriation of capital and profits No currency restrictions No currency restrictions Competitive import duties (5% with many exemptions) Competitive import duties (5% with many exemptions) Modern efficient communications facilities Modern efficient communications facilities Simple staff recruitment procedures Simple staff recruitment procedures Competitive freight charges Competitive freight charges

UAE Business Climate Open & transparent market Open & transparent market English is widely spoken English is widely spoken Full range of banking and business Full range of banking and business services services First class infrastructure First class infrastructure Pro-business government policies Pro-business government policies Free zones Free zones

Doing Business in UAE UAE is a member of the WTO UAE is a member of the WTO No foreign-exchange controls No foreign-exchange controls Customs Valuation & Import Tariffs Customs Valuation & Import Tariffs Calculated on the CIF value at the rate of 5% Calculated on the CIF value at the rate of 5% Intoxicating liquors: 50% of the CIF value Intoxicating liquors: 50% of the CIF value Tobacco products: 100% of the CIF value Tobacco products: 100% of the CIF value

UAE Free Zones 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. 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. 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 Jebel Ali Free ZoneJebel Ali Free ZoneJebel Ali Free Zone Saadiyat Free Zone Saadiyat Free ZoneSaadiyat Free ZoneSaadiyat Free Zone Hamriyah Free Zone (Sharjah) Hamriyah Free Zone (Sharjah)Hamriyah Free Zone (Sharjah)Hamriyah Free Zone (Sharjah) Ajman Free Zone Ajman Free ZoneAjman Free ZoneAjman Free Zone Sharjah Airport Free Zone Sharjah Airport Free ZoneSharjah Airport Free ZoneSharjah Airport Free Zone

Doing Business in UAE Sell directly to dealers and distributors Sell directly to dealers and distributors Commercial agency arrangements Commercial agency arrangements Agent must be a UAE national/company Agent must be a UAE national/company Agreement to be registered with Ministry of Economy and Commerce Agreement to be registered with Ministry of Economy and Commerce Branch or representative office Branch or representative office 100% foreign ownership permitted 100% foreign ownership permitted Local sponsor must be appointed Local sponsor must be appointed Limited liability company Limited liability company foreign ownership restricted to 49% foreign ownership restricted to 49% local partner is required local partner is required Free zone establishment Free zone establishment 100% foreign ownership 100% foreign ownership No sponsor or partner required No sponsor or partner required no import duties no import duties

Free Zone Incentives 100 per cent foreign ownership 100 per cent foreign ownership Exemption on all import and re-export duties Exemption on all import and re-export duties 100 per cent repatriation of capital and profits 100 per cent repatriation of capital and profits Freedom from corporate taxation for 50 years with an Freedom from corporate taxation for 50 years with an option to renew option to renew No personal income taxes No personal income taxes An abundant and inexpensive energy supply An abundant and inexpensive energy supply Simple, efficient recruiting procedures Simple, efficient recruiting procedures High level of administrative support from authorities High level of administrative support from authorities

Electronics Equipment Electronics Equipment Jewellery Jewellery Vehicles Vehicles Machinery Machinery Metals Metals Textiles Textiles Top 5 Source Countries India (1) India (1) China (2) China (2) USA (3) USA (3) UK (4) UK (4) Japan (5) Japan (5) Singapore (15) Singapore (15) Imports

Developments World’s 3 largest man-made islands The Palm Jumeirah The Palm Jumeirah The Palm Jebel Ali The Palm Jebel Ali The Palm Deira The Palm Deira Over 60 luxury hotels, 5,000 residential beachside villas, 5,000 apartments, marinas and theme parks Over 60 luxury hotels, 5,000 residential beachside villas, 5,000 apartments, marinas and theme parks Due for completion by 2009 Due for completion by 2009 Dubai MetroDubai Metro Shopping MallsShopping Malls

The World Islands Consists of over 300 man-made islands that are designed to represent the world mapConsists of over 300 man-made islands that are designed to represent the world map Located 4km offshore from Dubai Located 4km offshore from Dubai 9km (width) by 7km (length) 9km (width) by 7km (length) Visible from space Visible from space As of April 2006, 90% of land reclamation is complete, with 270 islands visible above water As of April 2006, 90% of land reclamation is complete, with 270 islands visible above water Due for completion by lateDue for completion by late2008

Burj Dubai World’s tallest tower, iconicWorld’s tallest tower, iconic structure of Downtown Burj structure of Downtown Burj Dubai Project Dubai Project Completed 80 floors (277m) as of Oct Completed 80 floors (277m) as of Oct Burj Dubai is adding a new floor every 3 days Burj Dubai is adding a new floor every 3 days Will house one of the first Armani Hotels Will house one of the first Armani Hotels Observation Deck at 442m. Observation Deck at 442m. To be completed in 2008 To be completed in 2008

UAE The Place To do business in To do business in To Exhibit in To Exhibit in To holiday in To holiday in To live in To live in

Thank you Abdeslam El Idrissi Director of Trade Services The Arab-British Chamber of Commerce