About UAE

ABOUT UAE 

The United Arab Emirates is a Middle-East country situated in the southeast of the Arabian Peninsula in Western Asia on the Persian Gulf. It is bordered by Oman and Saudi Arabia, and the Persian Gulf. The state shares maritime borders with Iraq, Kuwait, Bahrain, Qatar, and Iran. The United Arab Emirates comprising of seven emirates Abu Dhabi (capital), Dubai, Sharjah, Umm Al Quwain, Ajman, Ras Al Khaimah and Fujairah covering an area of 32,278 square miles. It has an estimated population of 9.2 million. The country has an average life expectancy of seventy-five years. The United Arab Emirates has the world's highest migration rate, about 21.71. The majority of the population is composed of expatriates. The highest number of migrants is of Indian origin followed by Pakistan, Bangladesh, Sri Lanka, and other South-east Asian nations. Emiratis and other Arabs form less than half of the total population. In recent years, UAE has drawn a number of immigrants from Europe, North America, Asia,

The Dirham denoted by the ISO 4217 code AED is the official currency of the United Arab Emirates. It is normally abbreviated as DH or Dhs. The dirham is subdivided into 100 fils. It was adopted as the national currency in December 1971, replacing the Qatar and Dubai riyal. Arabic is the officially recognized language of the UAE spoken by the majority of the population. Islam is the dominant and the official state religion of the United Arab Emirates.

The country is grouped under the category of very high Human Development in Human development report 2015. Petroleum, natural gas, and oil are the major drivers of the economy. UAE has the sixth-largest oil reserves in the world. Foreign trade also adds to the revenues. The major imports are: machinery, manufactured goods, and transportation equipment; while the principal exports include dates, crude oil, and natural gas. The International Monetary Fund classifies the United Arab Emirates as a high-income developing economy. Japan, Thailand, Pakistan, Iran, United States, and India are the major trading partners.

UAE Offers

  • Well-established trading links throughout the AGCC, Iran , and other neighbouring countries.
  • A buoyant and prosperous domestic market.
  • Wide choice of potential trading partners.
  • Port and airport facilities unrivalled in the region in terms of size, flexibility and efficiency.
  • Dubai Ports Authority ranks among the world's top ten in terms of berths.
  • Dubai's state-of-the-art-air cargo village helps ensure the world's fastest sea-air transfers.
  • Air links via 65 airlines to over 100 cities worldwide.
  • Leading regional and international freight forwarders, shipping companies, insurers etc.
  • Free Enterprise system.
  • Free trade Zones with 100% foreign ownership.
  • 100% repatriation of capital and profit.
  • No corporate taxes and no income taxes. However value added tax and CSR tax will be introduced from Jan 2018 onwards
  • No foreign exchange controls and a stable, freely convertible currency.
  • International exhibition centers and conference venues.
  • Time zone bridge between the far east and Europe.
  • Unlimited low cost warehousing and storage facilities.
  • Excellent regional road transport links via a modern highway network.
  • Abundant skilled and experienced workforce.
  • World class telecommunication facilities / high speed internet access.
  • International hotels, schools, hospitals and other infrastructure facilities.Cosmopolitan western life, tolerant, virtually crime free environment.

Setting up of Business in UAE in non free zone

Commercial Law applicable:

The Federal Commercial Companies Law No.2 of 2015, fully enforced in 2016, regulates business in the U.A.E. The Law stipulates a company shall take one of the following forms and is either wholly owned by the nationals or at least to the extent of 51% of the share capital.

  1. Joint Liability Company (100% national ownership).
  2. Simple Commandite Company (100% national ownership)
  3. Limited Liability Company.
  4. Public Joint Stock Company.
  5. Private Joint Stock Company.

Exception for the above are in case the company:

  • Is being formed been formed in free zone.
  • Activities are open to 100% AGCC ownership.
  • Where wholly owned AGCC companies enter into partnership with UAE nationals.
  • Which is foreign company registering its branches or a representative office.
  • Is professional or artisan company where 100% foreign ownership is permitted

Licensing:

The basic requirement for all business activity is one of the following three categories of licenses

  • Commercial licenses covering all kinds of trading activity.
  • Professional licenses covering professions services craftsmen and artisans.
  • Industrial licenses for establishing industrial or manufacturing activity.

These licenses are issued from the economic department/ministries.

UAE Free Zones

Benefits of forming a company in Free Zone

  • 100% foreign ownership
  • 100% repatriation of capital and profits
  • 100% exemption of import and export duties

Limitations

  • A free zone company is not allowed to trade directly with the UAE market
  • The free zone company can trade within UAE only through locally appointed distributors.Custom Duty of 5% is applicable when the free zone company sells in the local market
  • Employees with visas from free zone companies are expected to work only from the company‚Äôs offices within that free zone.

List of free zones

  • Abu Dhabi Airport Free Zone (ADAFZ)
  • Abu Dhabi Global Market (ADGM)
  • Higher Corporation for Specialized Economic Zones (HCSEZ)
  • Industrial City of Abu Dhabi (ICAD 1 and 2)
  • Khalifa Industrial Zone Abu Dhabi (KIZAD)
  • Khalifa Port and Industrial Zone (KPIZ)
  • twofour54 (Two Four Fifty Four / 54) media and production free zone, tel +971-2-4012454, toll free 8002454, fax +971-2-4012345, email info@twofour54.com. Where the twofour54 tadreeb institute is.
  • Dubai Airport Free Zone (DAFZ), tel +971-4-2995555, fax +971-4-2995500, email invest@dafza.gov.ae
  • Dubai Car and Automotive City Free Zone (DUCAMZ), tel +971-4-3335000, +971-4-3335777, email mktg@jafza.co.ae
  • Dubai Flower Center Free Zone - at Dubai International Airport.
  • Dubai Gold and Diamond Park, +971-4-3477788, fax +971-4-3473206, email gdp@emaar.ae.
  • Dubai Health Care City (DHCC), tel +971-4-3245555, fax +971-4-3249000.
  • Dubai Industrial City (DIC)
  • Dubai International Financial Centre (DIFC) - financial services, located off Sheikh Zayed Rd near the Dubai World Trade Center.
  • Dubai Internet City (DIC),
  • Dubai Knowledge Village (DKV)
  • Dubai Media City,
  • Dubai Multi Commodities Centre (DMCC),
  • Dubai Gold and Commodities Exchange (DGCX) - part of DMCC.
  • Dubai Silicon Oasis
  • Dubai Technology and Media Free Zone (TECOM) - includes DIC, DMC, DKV.
  • Economic Zones World (EZW) - includes Techno Park, Dubai Auto Zone, Jafza International, JAFZ.
  • Jebel Ali Free Zone (JAFZ)
  • Ajman Airport Free Zone (AAFZ) - might be part of the new Ajman Airport development but no information provided yet.
  • Ajman Free Zone (AFZ) - tel +971-4-7425444, fax +971-4-7429222.
  • Ajman Free Zone Authority (AFZA)
  • Fujairah Free Zone (FFZ), tel +971-9-2228000, fax +971-9-2228888, email freezone@emirates.net.ae
  • Fujairah Creative City - tel +971-9-2244100, fax +971-9-2244101
  • RAK Free Trade Zone (RAKFTZ or RAK FTZ) - tel +971-7-2041111, fax +971-7-2280859, email inquiry@rakftz.com.
  • RAK Investment Authority Free Zone (RAKIA FZ) - tel +971-7-2447253, fax +971-7-2445270, email enquiry@rakinvestmentauthority.com.
  • Ras Al Khaimah Media Free Zone (RAKMFZ) - RAK Media City - tel +971-7-2445125, email enquiries@rakmediacity.com.
  • RAK Center for Business Excellence or RAK Training Center for Business Excellence.
  • RAK Education Zone.
  • RAK Financial Center.
  • RAK Industrial and Technology Park.
  • Sharjah Free Zones
  • Hamriyah Free Zone - tel +971-6-5263333, fax +971-6-5263555, email hfz@hamriyahfreezone.ae
  • Sharjah Airport International Free Zone (SAIF) - tel +971-6-5570000, fax +971-6-5571131, email info@saif-zone.com
  • Ahmed Bin Rashid Free Zone (ABRFZ), tel +971-6-7655882, fax +971-6-7651552, email abrpaftz@emirates.net.ae