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“Routes to Market UAE” Steve Barton Senior International Trade Adviser UK Trade and Investment Team East Midlands

“Routes to Market UAE” Steve Barton Senior International Trade Adviser UK Trade and Investment Team East Midlands. TRADE. UAE is UK’s 9 th largest export market (2005). Dubai alone UK’s 10 th largest export market. Dubai largest market in Middle East.

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“Routes to Market UAE” Steve Barton Senior International Trade Adviser UK Trade and Investment Team East Midlands

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  1. “Routes to Market UAE” Steve Barton Senior International Trade Adviser UK Trade and Investment Team East Midlands DUBAI - United Arab Emirates

  2. TRADE • UAE is UK’s 9th largest export market (2005). • Dubai alone UK’s 10th largest export market. • Dubai largest market in Middle East. • UK exported goods worth over £4.5 billion to Dubai in 2005 (but stats only one indicator of growth in UK trade) • 90% of trade conducted through Dubai and Northern Emirates. • Minimum of 45% of imports are re-exported: Asia, Africa, GCC and Middle East. • Gateway to a $150 billion market. • Springboard into more challenging Markets. DUBAI - United Arab Emirates

  3. REGIONAL HUB • Significant visitor , and ex-pat markets • Development of Jebel Ali & Taweelah Ports • Growth of Emirates & Etihad Airlines • Dubai is world’s third largest re-export centre • Dubai handled around 73% of UAE foreign trade (2004) DUBAI - United Arab Emirates

  4. HOW DUBAI WORKS Al Maktoum (Ruling Family) Al Futtaim, Al Naboodah, Al Ghurair, Al Majid Al Habtoor, Al Tayer, Al Gurg, Al Rostamani Galadari, Lootah DUBAI - United Arab Emirates

  5. Ruling Family DUBAI - United Arab Emirates

  6. LEADING TRADING FAMILY Al Futtaim IKEA, ToysRUs, M&S Al Futtaim Motors Al Futtaim Electronics -Sanyo Al Futtaim Auto & Machinery (FAMCO) Al Futtaim Real Estate www.al-futtaim.com Al Ghurair Gulf Extrusions Dubai Polyfilm Arabian can Industry Burjuman Shopping Center Al Ghurair City Mashreq Bank Dome Café Printing & Publishing www.Algurair-pvt.com Al Gurg Al Gurg Tyres, Batteries & Automobile Accessories Al Gurg Cigarette Div Mac Al Gurg Arabian Explosive Co Al Gurg Al Laing Paint Benetton Franchise ID Design www.algurg.com DUBAI - United Arab Emirates

  7. LEADING TRADING FAMILY Al Habtoor Al Habtoor Eng. Ent Al Habtoor Motors Bentley Aston Martin Mack Truck Real Estate Hotel Metropolitan Group Publishing-Al Shindagha www.habtoor.com Al Majid Al Majid Property EMW Lifts & Escalators GENAVCO GULFCO Taj Hotel Skyline Travels EPS www.al-majid.com Al Naboodah Al Naboodah Cont. Al Naboodah Cargo Travels & Tourism SMKA Electric Co Al Naboodah Laing O’Rourke Swaidan Trading www.alnaboodah.com DUBAI - United Arab Emirates

  8. LEADING TRADING FAMILY Al Rostamani Thomas Cook Exchange Arabian Automobiles Co Dubai Int’l Securities Emirates Electrical Eng. Federal Bldg Industries Envo Gulf Steel United Diesel www.alrostamani.com Al Tayer Al Tayer Motors-Jaguar Abb Industries Fashion & Jewellery Aati Contracts Co Perfume & Cosmetics Al Nisr Publishing Motivate Publishing www.Altayer.com DUBAI - United Arab Emirates

  9. LEADING TRADING FAMILY Galadari Khaleej Times Mazda Baskin Robbins Galadari Travel Group Dubai Intercontinental Hotel Galadari Columbo Galadari Industrial www.Gabros.com Lootah Lootah Industries National Aluminium Lootah Building & Construction Lootah General Trading National Readymix www.lootahgroup.com DUBAI - United Arab Emirates

  10. UAE MAJOR PROJECTS Palm Island Projects, Healthcare City Dubai International Finance Centre The World, Dubailand, Airport Expansions & New Airports Over 100 New Hotels Burj Tower Business Bay Yas Island DUBAI - United Arab Emirates

  11. MAJOR PROJECTS (Contd…) • A new national grid linking all power stations & distribution networks in Dubai & Abu Dhabi (valued at US$164million) • Dolphin Gas Project linking Qatar , UAE & Oman • Light Rail system throughout Dubai • Dept for Economic Development-New Projects to encourage the development of manufacturing industry over the next 5 years DUBAI - United Arab Emirates

  12. KEY ISSUES • Don’t forget the growing Northern Emirates & Abu Dhabi • Niche opportunities for British companies • Have a Middle East Strategy (and beyond?) not just UAE • Understand the wider pricing issues • Take legal advice with M.E knowledge • Research , research , research DUBAI - United Arab Emirates

  13. DOING BUSINESS IN UAE • Direct Export - Agent/Distributor • Representative Office • Branch Office • Limited Liability • Joint Venture/Participation • Freezone or Sponsor/Partner? DUBAI - United Arab Emirates

  14. DOING BUSINESS IN UAE • Direct Export - Agent/Distributor • No distinction between agent & distributor • Cultural aspects – research , research , research • Registered or Unregistered agent ? • Exclusivity can be via product line / specific service • Dubai and Abu Dhabi separate agencies ? • Agreement subject to UAE law – ICC possible ? • Ensure “getoutability” of contract DUBAI - United Arab Emirates

  15. DOING BUSINESS IN UAE • Representative Office • Branch Office • Sponsor generally needed – registration/formalities • Sponsors – no liability , investment , management • Fees are fairly established • Specialist UAE firms offer matching service • Termination may be difficult DUBAI - United Arab Emirates

  16. DOING BUSINESS IN UAE • Limited Liability Company - LLC • At least 51% to be held by UAE national/company • Initial share capital 150k dhs/300k dhs for Dubai • Profit share may be disproportionate to shares • All or most share capital provided by foreign Investor • Vast majority of profits passed to foreign investor DUBAI - United Arab Emirates

  17. DOING BUSINESS IN UAE • Joint Venture/Participation • UAE Companies Law permits joint participation • 2 or more partners agree to share profits/losses • Does not need to be formally registered • Establishment immediate • JP would use name/trade licence of local registered • Disadvantage – independent financing limited ? DUBAI - United Arab Emirates

  18. DOING BUSINESS IN UAE • Free Trade Zones • 40+ FTZ’S – existing & proposed • No customs duties • No restrictions – profit transfer / capital repatriation • Exemption – corporate , withholding , inheritance taxes • No personal income tax or currency restrictions • BUT need local agent to trade in UAE • ICAD may circumvent this – with Executive Council DUBAI - United Arab Emirates

  19. OUR SERVICES  Overseas Market Introduction Service  Market Visits  Programme Arrangements  Exhibitions  Company Information & Profiles  Major Project Data  Market Summaries But don’t forget others that can be helpful  British Business Groups  Middle East Association  Arab British Chamber of Commerce  UAE Chambers of Commerce DUBAI - United Arab Emirates

  20. SUMMARY • Research , research , research • Understand cultural issues • Develop a regional strategy • Maintain personal contact • Plan for the long term , not a quick fix • Enjoy the experience !!! DUBAI - United Arab Emirates

  21. CONTACT www.uktradeinvest.gov.uk www.emids.uktradeinvest.gov.uk www.britishembassy.gov.uk/uae Steve Barton- International Trade Adviser UK Trade and Investment Team – East Mids Tel : 0845 052 4001 DUBAI - United Arab Emirates

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