Living In UAE

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WHY

Unlimited Opportunities 2012

UNITED ARAB EMIRATES

MINISTRY OF FOREIGN TRADE


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WHY

Unlimited Opportunities

2012



nvesting in the future

rouge has an annual manufacturing capacity of 2 million tonnes of polyolens in Abu Dhabi,

ee logistics hubs in Asia, compounding facilities in China, and sales ofces throughout the

dle East and Asia Pacic. Supported by the unique Borstar technology and a culture of

ovation, Borouge continues to invest in the future and deliver value added solutions to itstomers.

rouge, a joint venture between ADNOC and Borealis, is making a difference to everyday life.


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@ 2012 All Rights Reserved by:Ministry of Foreign Trade

P.O. Box 110555 Abu Dhabi, United Arab Emirates

Tel.: +971 2 495 6000

Fax: +971 2 449 9164

E mail: [email protected]

Website: www.moft.gov.ae


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It is because of the rapid and

dynamic changes in the global economicscene that our economy today needs

quality investments that bring modern

technology and high levels of technical

and managerial expertise that will

enable our economy and products to

compete globaly.

Khalifa Bin Zayed Al Nahyan

His Highness Sheikh Khalifa Bin Zayed Al NahyanPresident of the United Arab Emirates


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Mohammed Bin Rashid Al Maktoum

Thanks God, we turned the dreaminto reality and great achievements

that put the UAE on the spotlight and

attracted the largest multinational

companies that seek profitability,

secur ity and future growth

His Highness Sheikh Mohammed Bin Rashid Al MaktoumVice President and Prime Minister of The United Arab Emirates,

Ruler of Dubai


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Lubna Bint Khalid Al QasimiMinister of Foreign Trade

I welcome you to the UAE,a country with an ever-renewed spirit and an ever-wideningbase of opportunities that is today celebrating 40 years of a continuous and united race towards excellence.Being amongst the best nations in the world is a promise that was made by our leaders not only to thecitizens of the UAE, but to the investors, businessmen, employees and families who chose to work and livein it.

Around fulfilling this promise revolve our visions, aspirations, initiatives and mandates.After 40 years of hard and diligent work, I stand proud of our achievements. I am also proud and

confident of the unique and well-structured value proposition that we today present to the internationalbusiness community.

Our unrivaled infrastructure, accommodating internationally-benchmarked laws and regulations,cutting-edge technological environment and, above all, a determination to aim higher continue to makeus the location of choice for the most renowned multinational companies, international investors and well-qualified professionals.

No longer is the UAE only associated with the high production of oil and natural gas or with the worldstallest buildings or the worlds only seven star hotels. Those vital sectors are only some of the unlimitedopportunities that can be exploited in choosing the UAE. Today, the UAE is the de facto financial centrebetween Singapore and London and the host of the worlds largest man-made port and some of the worldsbusiest airports. It also hosts the worlds first free zone dedicated to biotechnology and research and hasthe worlds only capital connected with a fiber network, just to name a few of what our drive for innovationhas fruited.

In this challenging and fiercely competitive global economic environment, having a partner of trust anda base from which operations can be conducted securely becomes more crucial than ever. Thats what the

UAE can offer you all. No matter what field your business operates in, the UAE is committed to provide atailor-made solution and business environment that will enable it to focus on its core business and overcomeits difficulties.

In these 40 years, we built, from the ground up, cities, seaports, skyscrapers, airports and internationalcompanies, attracted most of the top Fortune 500 companies to setup in the UAE, became among the top 25nations globally in competitiveness and among the leading nations in the quality of lifestyle. It is to sharethis ambition and to take part in this success story that I invite you all.

In this book, titled Why UAE?, you can explore some of the reasons why this nation lying on theshores of the Arabian Gulf is the location of choice to start a successful business. Through a comprehensiveoverview of our resilient economy, diverse and ever growing base of opportunities, friendly and business-oriented legal environment and smooth procedures to register a business, you can construct a full picture ofthe countrys promise and potential. Not to forget the openness embedded in our culture and the amazinglifesty le that you and your family can enjoy. Thats what I can label as The Emirati dream.

I thank you all for taking the time and showing the interest to explore the country.Regards


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The United Arab EmiratesThe FundamentalsThe UAE: Histories of Openness and Achievements

The UAE: Strategic Location and Diversified Terrains

The UAE: A Unique Demographic Structure

The UAE: A Unique Model of Integration

Abu Dhabi

Dubai

Sharjah

Ajman

Ras Al-Khaimah (RAK)

Umm Al Quwain

Fujairah

Why UAE?The Layers of UniquenessA Gateway to Growth

An Inspiring Society and Spirit

A Plug and Play Solution

A Climate of Trust

A True Knowledge Economy

A Recognized Global Brand

The United Arab EmiratesA Sound and Resilient EconomyThe UAE: A Strong Economic Heritage

The UAE Economy: A Unique Orchestration

The UAE Economy: The Pillars of Success

The UAE: A Story of Growth

The UAE: A Sound Macroeconomic Environment

A Bright Economic Outlook

The UAE: A Progressive Economic Policy

The UAE: an Open and Flexible Trade Policy

The UAE: A Visionary Approach

The United Arab EmiratesA World of OpportunitiesEnergy

[Oil and Natural Gas Exploration and Production, Petrochemicals, Utilities Infrastructure

Development, Renewable Energy, Mining and Quarrying]

Real Estate and Construction

[Real Estate Development and Investment, Construction, Infrastructure Development,

Property and Facility Management ]

Tourism and Hospitality

[Spas and Recreation Facilities, Tourism and Travel Services, Museums and Historical

Tourism, Events and Incentives Tourism]

Manufacturing

[Petrochemical Industries, High Tech and Heavy Industries, Light and Mechanical

Industries, Consumer Industries, Food Processing Industries]

Health Care and Pharmaceuticals

[Pharmaceutical Manufacturing, Hospitals and Clinical Treatment, Medical Tourism,

Medical Equipment and Technology]

Telecommunications, Media and Information Technology

[Telecommunications, Satellite Communications, Business Process Outsourcing,

Information Technology, Media]

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Contents

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205

Chapter 1

Chapter 2

Chapter 3

Chapter 4

Setting Up a Business in the UAE Seizing The Opportunities

Understanding the UAE Market

Establishing a Business in the UAE

Business Licensing Authorities in the UAE

Selecting a Trade Name

Selecting a Local Partner Sponsor or Service Agent

Selecting the Form of the Business Entity

Types of Business Licenses in the UAE

Third Party Approvals

Commercial Registration

Establishing a Free Zone Business Entity:

Employment in the UAE: Easy Regulations and Spirited Workforce

The United Arab Emirates Seven Pearls and Beyond

Abu Dhabi- Free Zones

Dubai - Free Zones

Sharjah - Free Zones

Ajman - Free Zones

Umm Al Quwain - Free Zones

Ras Al Khaimah - Free Zones

Fujairah - Free Zones

The United Arab Emirates Accommodating Legal Environment[The Constitution, Legislative Authorities, Judicial Authorities,

Characteristics of the Legal System, Civil Litigation Process, Arbitration]

Legal environment in Free zones Vs. Inland

Legal Topics Relevant to doing Business in the UAE

Commercial Transaction

Commercial Companies

Employment

Intellectual Property

Exchange of Securities & Commodities

Insurance

Telecom

Electronic Transactions & Commerce

The United Arab Emirates A Rooted Business Culture

The Emirati Identity

[Modern Identity Burj Al Arab, Dubai Burj Khalifa, Dubai

The Palm Trilogy and The World, Dubai International Sports, Saadiyat Island

Abu Dhabi, Yas Island Abu Dhabi]

Down to Business

[The Emirati Perspectives, Interaction, Conversations, What to Wear]

Relocating to the United Arab Emirates

Things to do Prior to Arrival

Housing and Accommodation

Banking Processes and Procedures

Essential Dos and Donts

Education

Driving and Etiquette

Health Services on Offer

Lifestyle and Entertainment

Getting Around

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Chapter 5

Chapter 6

Chapter 7

Chapter 8

Chapter 9


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The United Arab Emirates The Fundamentals

Rooted in its unique fundamentals of unlimited

ambition, flexibility and openness, the United Arab Emirates

succeeded to evolve to be the energetic modern civilization as

perceived today. The same cultural foundations that have built

the blocks of the nation along with the foresighted strategic

planning by visionary leadership have been driving the countrys

economy to a higher level.

Chapter 1

The United Arab EmiratesThe Fundamentals


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The Unlimited Opportunities2012

Chapter 1

WhyUAE?


Unlimitedness is the characteristic thatdefines the fundememntals upon whichthe United Arab Emirates are based. It was nota coincidence that a country, born in the second

day of December 1971 is now a top global

investment and trading hotspot. Evidences

from different historical periods show that

the United Arab Emirates, through the

boundless opportunities it always presented,has been an important location in the global

economic map, thus attracting significant

Because it is located in the centre of

the Gulf countries, Indian Sub-Continent,

Commonwealth of Independent States

(CIS) and Africa, the UAE enjoys a strategic

position that allows it to present unlimited

opportunities across a wide range of sectors.The diverse and geographically-proximate

terrains that range from plains to mountains

and from deserts to beaches give the UAE a

distinguished competitive advantage. This

set of ever-present factors will continue to be

primary drivers and logical reasons to answerthe question: Why UAE?

17

UAE - Basic InformationCountryThe United Arab Emirates

National DayDecember 2,1971The date the UAE was founded

CapitalAbu Dhabi

PresidentH.H. Sheikh Khalifa bin Zayed Al Nahyan

Vice-PresidentH.H. Sheikh Mohammed bin RashidAl Maktoum

EmiratesAbu Dhabi, Dubai, Sharjah, AjmanUmm Al Quwain, Ras Al Khaimahand Fujairah

LanguagesArabic - Official LanguageEnglish - Widely Spoken

Working DaysSunday-Thursday

Time ZoneGMT+4

ReligionIslam

CurrencyUnited Arab Emirates Dirham (AED),USD = AED 3.6725

international commercial interests.

This unlimitedness, deeply rooted in its

culture, has also produced an embedded

openness that resulted in a very unique

demography throughout the history. Its port-

cities, from Jelfar to Dubai, have always been

points of attraction for those who seek growthand for those with ambition. Recognizing

these unique fundamentals, the leaders of the

countrys most recent renaissance have chosen

the most flexible model to establish the basis

of the nations governance that will assure the

preservation of its fundamental values andcapitalize upon them to build a vibrant society

that will always reach the top.

1900Population25,000

NationalitiesLocal Arabs

Business ActivitiesPearl DivingHerding

1980Population1.04 million

NationalitiesArabs, Asians,and a few Westerners

Business ActivitiesTrading, Services,Manufacturing, and OilProduction

2011Population8.6 million

NationalitiesA True MulticulturalSociety with morethan200 Nationalities

Business ActivitiesA Diversified Economy

1950

Population50,000

NationalitiesLocal Arabs andWestern Asians

Business ActivitiesTradingFishingSea Faring


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Chapter 1

WhyUAE?


route to India by Vasco de Gama who was

helped by Ahmed bin Majid, a local navigator

from Jelfar. In 1650, local Arabs managed

to liberate the area from the Portugueseinfluence. However, it became a target for

several competing European colonizing

powers. As a move to protect its Indian trade,

the British government invited the Sheikhs of

the region to sign a maritime treaty. In 1820,

the treaty was signed and the area was namedas the Trucial St ates.

In 1892, the relations between the UnitedKingdom and the Trucial States became

stronger in their signing of a Protection

Agreement. The British agreed to defend the

Trucial Coast against any foreign attack and

in return the Sheikdoms agreed not to enter

into relations with any foreign governmentwithout their consent. However, the sheikhs

kept their control over their local jurisdictions

As indicated by excavations and

archeological discoveries in different areas

of the country, the United Arab Emirateshas an ancient history that goes back to the

pre-historic times. Throughout the different

historical eras, the land has been the home

of active and rich civilizations that interacted

positively and effectively with other

civilizations in the neighboring Mesopotamia

and small Asian communities. It had been thehome of rich and important strategic resources

from diverse civilizations that inhabited the

ancient western Asia. This part of the world

has always been considered the main transitpoint between the east and the west. Thus,

interaction with the outside world in the form

of foreign trade has been a recurring motif in

the history of the UAE.

The first known human existence onthe UAE can be traced as far back as 5500

B.C . However, its initial recorded contactwith the outside world, particularly with the

The UAE: Histories ofOpenness andAchievements

civilizations in the north of Persia and

Mesopotamia, was during the end of the

third millennium B.C. During that time, twoprominent civilizations flourished in the

country and were in contact with neighboringcivilizations. The first was Majan civilization

located in the area today shaping parts ofthe Emirate of Abu Dhabi. The port of Umm

al Nar, now near the city of Abu Dhabi, wasa major trading port for this civilization. The

second was Milokha located in the central part

of the Emirate of Sharjah today. Foreign trade,motivated by copper export, increased with

many parts of the world including Persia, Iraq,the Indian sub-continent and even China.

The domestication of camels, around the

year 2000 B.C., further contributed to the

rise of the areas trading activity with itsneighboring regions.

During the 1st century A.D., the portof Omana known today as Umm al-Quwain

started its fundamental role as an alternativesea-route to the Red Sea that was used for

centuries. During this stage, pearl diving andtrading flourished as a main source of income

for the region. Seafaring was also a common

business activity for the region. Dibba, a portin the eastern coast of the UAE, was known as

a host of one of the major trade fairs wheregoods coming from India, China and Africa

get traded with merchants from all over theregion.

In 630, Islam reached the region; peopleconverted without a battle. Moreover, Jelfar

today Ras al-Khaimah became a staging base

for Muslims to travel throughout the IndianOcean, spreading Islam to vast areas over

many centuries. As a result of the growingpolitical and commercial importance, city

turned into a very wealthy port. Throughoutthe middle Ages, the regional sailors and

merchants dominated the most important

trade routes between the east and the westrunning through the Indian Ocean, Arabian

Sea, the Gulf and the Red Sea.

In the early 16th century, the Portuguese

succeeded in controlling the Indian Ocean by

invading and ruling the key port cities of India,Oman and East Africa. This was preceded by

the historical event of exploring the spice

and the people. Due to the stabilizedpolitical situation, the pearling industry

flourished during the 19th and early 20thcenturies, creating more income and business

opportunities to the people of the Gulf region.Unfortunately, this industry was smashed by

the economic depression of the late 1920s and

early 1930s coupled with the Japanese culturalpearl invention as well as the new taxes

imposed by the government of India. Pearldiving and trade completely disappeared in the

region by the start of the Second World War.

19


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Chapter 1

WhyUAE?


Umm Al-Quwain, and Fujairah. The last Emirate

to join was Ras Al-Khaimah on February 1972.

With the visionary leadership and hard work

of the father of the new-born country, Sheikh

Zayed bin Sultan Al Nahyan along with the

other founding fathers, a revolutionary erahad began.

Since then, the nation and its seven

Emirates started their journeys of success into

building one of the regions most modern and

developed nations and a global role model

for sustainable development and balanced

relations with the whole world. After SheikhZayed passed away in 2004, his eldest

son His Highness Sheikh Khalifa bin

Zayed Al Nahyan was appointed as

the president of the UAE. Under

his leadership, the United ArabEmirates continues to target and

reach new heights of success.

The decade of the 1960s was marked by

one of the countrys historical milestones,

namely the discovery and export of oil

from Abu Dhabis desert. A massive plan of

infrastructure development had been set to

transform the emirate when the late SheikhZayed Bin Sultan Al Nahyan became the ruler

in 1966. Dubai ruler, the late Sheikh Rashid Bin

Saeed Al Maktoum, also started the journey

of a comprehensive building strategy as oil

revenues started its inflow in 1969.

As the United Kingdoms protection

agreement with the Trucial Coast was

approaching its end on December 2nd

1971, early calls of unifications were

made by the new fully independent

states Sheikhs. On December 2nd

1971, the United Arab Emirateswas announced as a uniquely-modeled federation consisting of

Abu Dhabi, Dubai, Sharjah, Ajman,

5500BC

3000BC

2000BC

630 15071st

CenturyAD

First knownhuman

occupation

Interactionwith outside

world.Copper Trade

exporting to Persia,Mesopotamia

Tradingand flourshing.Domesticationof the camel

Seabornetravel through port

of Oman,Umm al-Qaiwain

todayPortugese

Colonized theregion.

1820 1930 1960 1971 2004 Today

Peace Treatywith British

Governement

The Collapseof pearlindustry

The times were hard on people of the

emirates. However, they continued, as was

the case throughout the history, to create new

ways of utilizing their resources and pursing

their role in bridging and facilitating trade

between India, Africa, the Arabian Gulf andthe surrounding region. In that particular

time, some visionary individuals sniffed the

opportunities lying ahead for the emirates

and the region. The late 1940s and 1950s

witnessed the birth of whats today some of

the largest conglomerates not only in the UAEbut in the region at large.

21

Conversionto Islam

Discovery of oil.Early calls ofUnification.

Thefederation

was formed;

Sheikh Zayedpresident

of the UAE

HH SheikhKhalifa bin Zayed

becamethe presidentof the UAE

Still breakingall of the world

records


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Chapter 1

WhyUAE?


In spite of it is small size and limited

area, the UAE is characterized by diversified

environment and rich landscape, adding an

extra advantage to its strategic location. Thus,those two factors combined were important

fundamentals that contributed to shaping

the UAEs history and its current and future

economic and demographic landscape.

The country has a significant coastline on

the Gulf of Oman on its east and the Arabian

Gulf on its west and northwest. The UAE is alsolocated next to the southern lines of the Strait

of Hormuz, an essential passage for more than

40% of the world crude oil. This location has,

in some way, shaped the countrys history.

Contacts with ancient civilizations like the

civilization of north of Persia and Mesopotamiaduring the third millennium B.C. were mainly

because of this ideal location. Its for the

same reason the UAE ports and airports today

are ranked among the top choices for major

carriers when planning their routes from the

east to the west.

Area and Boundaries

LocationSouthwest of Asia in the south of theArabian gulf and towards thesouth-eastern edge of the Arabianpeninsula. Very Close to the southernedge of the strait of Hormuz

Total Area83,600 km1

BoundariesSaudi Arabia 457 km

Oman 410 km

Geographic Co-OrdinatesBetween 22 - 26.5 north latitude andbetween 51 - 56.5 east longitude

Elevation ExtremesSea level 0.0m (lowest)Jabal Jais in Ras Al-Khaimah 1737m(highest)

IslandsMore than 200

CoastlineOver 800 km on both the Arabian Gulfand the Gulf of Oman

The UAE: An AttractiveLocation

Positioned in the heart of the old world,

the geographic location of the Middle Eastis certainly very strategic. On this part of the

Earth, the earliest civilizations flourished, not

just because of its importance as the ideal

access point to the three continents but also

because of its wealthy natural resources.

Being located on the eastern entry point ofthis strategic region,the UAEs role as a vital

transit point between the east and the west

through its access to both the Arabian Gulf

and the Indian Ocean has been a competitive

advantage of the country since the ancient

times.

The UAE: StrategicLocation and DiversifiedTerrains

The UAEs Diverse TerrainsThe UAEs diversified terrains are comprised

of flat, barren coastlines, vast deserts, and high

mountains. The beautiful coasts mostly consist

of clean salt pans. The five emirates, AbuDhabi, Dubai, Sharjah, Ajman, Ras Al Khaimah,

and Umm Al Quwain are located on the coast

of the Arabian Gulf, whereas Fujairah and a

part of Sharjah are on the coast of the Gulf of

Oman. Just a few kilometers from the coast

lay vast, rolling sand dunes that covers wideareas of the south and the west of the country;

those dunes and vast desert areas shaped the

natural eastern edge of Ar-rub-al-khali ( the

empty quarter), one of the largest desert areas

in the Arabian peninsula and the region. The

desert, however, is permeated by importantoases like Liwa and Al Ain that provide

the area with a great source of underground

water used for sustainable settlements andpermanent cultivation.

In the north, east and the southeast ofthe UAE, bordering the Sultanate of Oman,lay Al Hajar al Gharbi (Western Al Hajar)Mountains. They rise in some places to almost

2,000 meters and extend southeastward forabout 150 kilometers to the southernmostUAE-Oman border on the Gulf of Oman. The

sharp mountain slopes run directly to theshore in many places. However, in Fujairah themountains do not approach the coast, only

sandy beaches. On the other hand, there aresmall harbors at Dibba Al-Hisn, Kalba, andKhor Fakkan on the Gulf of Oman.

This diverse yet proximate terrains base thatthe UAE possesses provides not only for anecological richness, but shapes a solid ground

for the creating of a flourishing tourismindustry that provides visitors and business

travelers with a unique experience and varietyof choices for different interests.

23

1-The UAE Government Official Portal


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WhyUAE?


Climate

General WeatherHot and Humid (summer)Moderate cool (winter)

Highest Temperature48 C

Lowest Temperature14 C

Hottest MonthsJuly and August

Coldest MonthsJanuary and February

IslandsMore than 200

The Average Annual Rainfall120-350 mm

ClimateThe UAE climate is an arid subtropical

climate because of its location within the

northern desert belt and as the tropic of cancer

passes through its lands. Its temperaturesslightly differ from a place to another as well

as from time to another due to diversified

geographical altitudes. In the mainly-desert

inlands of the western legions, for instance,

the daily temperature range is significantly

wider than the coastline cities and areas.During summer, the UAEs inland temperatures

are extremely high with dryness while it gets

a bit cooler in mountains. In contrast, the

climate on the coastal areas is known of its

high humidity. However, the UAE is considered

as one of the worlds best winter destinations

since its average temperature is 15 C - 26 C.Humid southeastern winds, known as Al Kaws,

may also blow throughout the summer as rain

may fall in the coastal area, sometimes causing

floods in usually dry valley beds (Wadies). The

region overall is exposed to occasional dust

storms just like the rest of the GCC countries.

Flora and FaunaThe UAE is a home to a wide range of

native flora. Estimates show that the deserts,

mountains and islands of the UAE containmore than 6,500 indigenous floras. A variety

of trees such as date palms, acacia andeucalyptus grow in the oases, grasses, thorn

bushes, and many plants like peganum harmal,

heliotropium bacciferum and citrullus are

spread all over the desert. Many of these plants

are used conventionally and traditionally to

develop different pharmaceutical products.

The UAE also has an indigenous faunaand a rich wildlife. The famous Arabian Oryx

and leopards are just two examples of the

species that have their habitats in the UAEs

rich ecological system. In addition, the UAE is

also rich in marine life and fisheries resources.

Some of the coastal fish that can be found offthe UAE coastlines are mackerel, perch and

tuna, as well as sharks and whales.


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Chapter 1

WhyUAE?


EducationThe rapid rise in population has demanded

a significant investment in education. As aresponse to the societys call and derived

from the governments strong belief on the

importance of good education as a major pillar

of the societys overall continuing development

and progress, approximately 25 percent of the

total federal government spending has beendedicated to education. New policies and

modern high advanced educational techniques

and programs have been enforced by the

Ministry of Education in order to prepare

men and women to actively participate in the

society and to provide a reliable competitive

workforce. Good education has been

providing the country great advantages to be

at the head of the nations by building morecompetitive and comparative strengths. The

fast economic growth is greatly attributed

to the greater portion of the population

(91%) that attends or graduates from schools.

Business education in particular has been a

field of emphasis as stated by the Minister ofHigher Education and Scientific Research.

Demographic Indicators

UAE Population8,264,0702

Population Growth Rate3.28%

Population in Urban3,489,9883

Male / Female Ratio6.16 million males2.10 million females1

Age Structures4

0-14 years - 16.8%15-64 years - 81.9%64+ years - 1.3%

Literacy Rate91%

Labor Force2,559,000

LanguageArabic (official), English,Persian, Hindi, Urdu

Religions5

Islam - 96%, Others - 4%

PopulationSince the declaration of the United

Arab Emirates in 1971, the strong

economic growth along with the

embedded openness of the societyand the business-friendly policies

and regulations implemented by thegovernment have been attracting

opportunities and success seekersfrom around the globe to join thedevelopment renaissance in the

country. This attractiveness hasresulted in an exponential growth in

the size of the countrys population

The UAE: A UniqueDemographic Structure

from 680,000 in 1975 to reach 8.26 million as

of 2010 estimates.

Despite the consequences of recent

economic downturn, the UAE sustained a

strong annual population growth trend. With

an annual growth rate of 3.69%, the UAE

today is ranked the 1st internationally in thiscategory in 20095. Among the GCC countries,

the UAE has the second largest population

in the region of which the majority is

urban residents. The largest portion of the

population lives in the three largest emirates;

Abu Dhabi, Dubai, and Sharjah. This high

urbanization rate has driven the country to

focus on building and providing efficientpublic services, strong transportation system,

and reliable communication networks.

Additionally, this urbanization has led the

drive to improve the business environment

and to create service sectors that are today

globally competitive.

The UAEs population is predominantlyyoung. According to the National Bureau of

Statistics estimates based on a total population

of 8.20 million in the year of 20 09, around 81.9percent of the population is 15 to 59 years of

age, around 16.8 percent is less than 14 years

of age, and 1.3 percent is 60 years old andolder4. The population is male dominant, with

males numbering 6 millions and females, 2

millions6. Studies have shown that there is a

correlation relationship between GDP growth

and the percentage of 15-64 years old agegroup. The UAE was among the first nations

to understand the strong relationship between

the young population and the economic

growth and in accordance it made policies to

maximize the benefits by providing them with

high knowledge, skills and comprehensiveeducation systems.

1970 75 80 85 90 95 2000 05 2010

UAE Population Growth

8,000,000

6,000,000

4,000,000

2,000,000

0

Population by Emirates Population by Educational Status

Abu Dhabi

Dubai

Sharjah

33%

33%

20%

Ajman

Umm Al Quwain

Ras Al Khaimah

Fujairah

5%

1%

5%

3%

Below UniversityUniversityAbove UniversityNot Stated

IlliterateRead & WritePrimaryPreparotarySecondary

9.32

13.90

15.63

17.90

25.93

4.01

12.50

1.50

0.10

3-Census Data 2005, National Bureau of Statistics

4-Analytical Report on Economic and Social Dimensions UAE

5-CIA The World Factbook

6-Population Estimate 2006-2010, National Bureau of Statistics

1-The UAE Government Official Portal

2-Estimates 2010, National Bureau of Statistics

27

National Bureau of Statistics, Census Data 2005National Bureau of Statistics, Census Data 2005


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WhyUAE?


Women in WorkforceA lack of formal education had prevented

the majority of women from participating in

the development of the countrys economy

before the creation of the union. However,

under the leadership of the founding father ofthe UAE, the late Sheikh Zayed bin Sultan Al

Nahyan, rapid actions were taken to promote

womens education. Since then, women in the

UAE have been taking their roles in all political

and economic life. The Government, through

its policies and incentives, supports theengagement of females to actively participate

in both the government sector and the private

sector and strongly believes on the importanceof empowering them through good education.

According to latest figures from Statistics Center

Abu Dhabi (SCAD), Emirati women workforcegrew by 24.6% between 2005 and 2008. They

make about 26 percent of the national labor

force. Womens participation in the workforce

will continue to grow. Even though more

women prefer working in the public sector,

major indications show womens share in theprivate sector has been gradually increasing

due to the supportive strategies of the federal

and local governments. In order to encourage

the engagement of women in the private

sector, the policies implemented in workenvironments are designed to be suitable

to their nature such as the maternity law.

Successful and hardworking women reachedgreater heights in the UAE. Today, women

in the UAE are teachers, engineers, lawyers,

businesswomen, and even ministers. The equal

opportunities given to both genders by the

religion and implemented by the government

along with the womens ambitions were themain drivers of the obvious females successes

as perceived over all sectors and positions.


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The UAEs FederalGovernment: A Formula ofEfficiency and Effectiveness

yet independently. Those branches are the

Supreme Council, the Cabinet, the Federal

National Council and the Federal Supreme

Court.

The UAE is a presidential, elected system

that has a president, vice president, prime

minister and a cabinet. The president is electedby the members of the Federal Supreme

Council, which includes the rulers of the seven

emirates constituting the federation. The

election of the president takes place every five

years. Currently, His Highness Sheikh Khalifa

bin Zayed Al Nahyan, the ruler of Abu Dhabi,is the President of the Federation.

The Federal Supreme Council is the forum inwhich general policy for the UAE is formulated

and by which all legislations, being Federal

Laws or other key federal decisions, are finallyratified before being issued by the president.

It meets periodically to set the stage for thefuture milestones of the federation and agree

on critical matters related to policies and

strategies. The council is also responsible for

the appointment of the Supreme Court judges.

The UAE: A Unique Modelof Integration

responsibilities of both the federal government

and the local emirates governments.

In accordance to the constitution, the

federal government issues the policies andlegislations and retains executive control inareas that impact the internal and external

sustainability of the country, including defense,internal security, foreign relations, healthcareand environmental planning and control,

labor market regulation and management,telecommunications and inter-emiratestransportation, (the comma used here is called

a serial comma and its use is essential to avoidmisunderstanding) and utilities infrastructure.By this, it assures the achievement of the vision

and objectives set by the constitution.

In order to maintain a unified rhythm to

the development process of the country, thefederal government also maintains legislativecontrol over major areas of activity, such as

civil and commercial transactions, bankingand monetary system control, protection ofagriculture and animal wealth, criminal law,

procedures of litigation, and intellectual andindustrial property protection.

Apart from the above, the constitutiongave the local governments the right ofcontrolling the natural resources in its lands,

such as oil and other mines. In addition,they are responsible for municipal affairsas well as licensing economic activities in

their territories. By this formula, each localgovernment will have the flexibility to

effectively plan its economic strategy thatgoes in conjunction with that of the overallfederal level vision and plan, and yet to have

its unique, distinctive brand that enriches the

offerings of the whole nation.

The evident success of the unity model ofthe UAE has not only been a result of short-

term interests or wealth-related factors. On the

contrary, it has been a result of deeply rooted

historical ties between the different parts

of the region, the great economic similarities

and correlations as well as the close relationsbetween the different tribes living in the area.

In fact, many of the ruling families and key

tribes in then seven emirates are close relatives,such as the ruling families of Abu Dhabi and

Dubai, (the comma used here is called a

serial comma and its use is essential to avoidmisunderstanding) and the ruling families of

Ras Al Khaimah and Sharjah.

However, the most important factor that

made the UAE one of the most successful

unification examples of the region is the

flexible, pragmatic and well-integrated

nature of governance and distribution of

authorities between the federal governmentof the country and the local governments of

the individual member emirates. Since the

inception of the country in 1971, the founding

fathers have understood how a carefully-

engineered decentralized union can offer a

great deal of efficiency in using the countrysresources and can create a highly effective and

far-reaching nation. Therefore, the constitution

of the UAE clearly laid out the authorities and

Looking closely at the structure of the

federal government of the United Arab

Emirates, the model appears to allow for both

fast and effective decision making and sets the

ground for the development of well-plannedpeople participation. Thanks to the visionary

leadership of the founding fathers and the

wisdom of the current leaders of the country

under the guidance of Sheikh Khalifa Bin

Zayed Al Nahyan, the president of the United

Arab Emirates, that have always managed to

strike a balanced between the preservationof the culture and traditions and the adapting

of the most internationally-recognized

standards for effective governance and

excellence in all governmental services. The

UAEs Federal Government is structured intofour different branches that work effectively

31


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All laws and decrees are issued by thepresident. The cabinet is the main executive

authority of the federation. It is headed by

a prime minister appointed by the president.

Currently, the vice president and prime

minister of the UAE is His Highness Sheikh

Mohammed bin Rashid Al Maktoum. Alongwith his 22-members cabinet, the prime

minister overlooks the implementation of

the leadership vision for the country and

supervises the performance of the different

federal government bodies. The cabinetsresponsibilities include budget proposal, of

legislations, driving and implementing federal

level strategies.

The legislative part of the UAEs Federal

Government is represented by the FederalNational Council, a 40-members parliamentary

body that serves as an advisor to the executive

government. The councils role is critical to theeffective functioning of the government system

as it examines and suggests any amendments to

proposed federal legislations. In addition, it has

the right to question ministers on per formance

of their ministries and gives alternative course

of action on that regard. Membership of the

council is distributed fairly and evenly between

representatives of the seven member emirates.

In accordance with the enablement strategy

embraced and announced by His Highness

Sheikh Khalifa Bin Zayed Al Nahyan, the

president of the UAE, half of the members of

the Federal National Council (FNC) are to beelected by 129,274 UAE nationals in the seven

emirates in the next elections to be held in the

24th of September 2011. This will mark another

step towards greater people participation in

shaping the bright future of the country. The

other half of the FNC is appointed by the rulersof the seven emirates based on experience and

capability.

The Federal Supreme Court is the fourth

pillar of the Federal Government system. TheUAEs constitution assures the independence of

the judiciary system. The system consists of the

Federal Supreme Court as well as courts of firstincidence. The president and the five judges of

the Supreme Court are appointed directly by

the federal supreme council of the UAE. (For

more details on the judiciary and legal system

refer to chapter 6 of the book)

Federal NationalCouncil

Consists of the Consists ofForty Members, Twenty

Members are Elected

The FederalSupreme CouncilConsists of the Rulersof the Seven Member

of Emirates

President of theUnited Arab Emirates

Cabinet

Federal

Supreme CourtPresident andFour Judges

33


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Chapter 1

WhyUAE?


borders. Through Majans capital and main

port, Umm Al Nar, foreign trade with other

nations emerged. The economy of the region

flourished due to the increased export of the

main product (copper) that was extracted from

Al Hajar Mountains. By the late 16th century,a very influential Bedouin tribe known as

Bani Yas had moved to the area and made a

settlement off the Arabian Gulfs coast after

finding great sources of underground fresh

water. More than 20 subsections came out

of Bani Yas tribe one of which is Al Bu Falahthat decided to migrate to the modern area of

Abu Dhabi. A section of Al Bu Falah subsection

known as Al Nahyan Family has been ruling

Abu Dhabi since 1761.

Abu DhabiArcheological evidences have demonstrated

that Abu Dhabi has a rich history that has

been built-up since the third millennium B. C.

During that time, Majan Civilization inhabited

the area between Baynounah, a town

located in the west of Abu Dhabi, and Qatar

its unprecedented growth era, driven by the

vision of the new ruler, Sheikh Zayed bin Sultan

Al Nahayan. Abu Dhabi started exporting oil

on 1962 and the Sheikh used the revenues to

fund the infrastructure projects.

Even though Abu Dhabi city is technicallyan island, located less than 250 meters from

the mainland, it is connected to the mainland

by Maqta and Mussafah bridges and to other

islands by motorways-bridges as shown in the

illustration.

Being the capital of the country, AbuDhabi today is the home of the main officesof the federal government as well as the

headquarters of many financial institutions

and leading organizations. Due to its ongoing

development and uprising urbanization, the

emirate has grown to be a multicultural city and

transformed to become the country s centre ofpolitical and economical activities. Currently,

Abu Dhabi produces 2.7 million barrels of oil

per day, positioning itself internationally as

one of the worlds largest producers. Despite

this fact, it has been putting forward steps

in the global non-oil sector through strategicinvestments in financial services, tourism,

telecommunication, and real estate sectors.

According to Fortune magazine and CNN news

press, Abu Dhabi was the richest and 50th

most expensive city in the world in 2010.

Basic Information

TranslationFather of Gazelle

Area

67,340 km (Largest in the UAE)

Population1,826,673 (Largest in the UAE)

RulerH.H. Sheikh Khalifa bin Zayed Al Nahayan

Crown PrinceH.H. Sheikh Mohammed bin ZayedAl Nahyan

Geographic LocationSouth Central and Southwest of UAE

Main TownsAl Ain, Madinat Zayed, Liwa, Al Marfa,Dalma Island, Al Salaa, and Ghaithy

Main Tourist AttractionsEmirates Palace, Al Ain Museum, Sir BaniYas Island, Hafeet Mountain, Western ZoneSand Dunes, Dalma Islands, Marina Mall

Ports

Abu Dhabi International Airport, Al AinInternational Airport,Zayed Port,Al Bateen Executive Airport, Khalifa Port

GDP ContributionUSD 162.39 billion (60%)(At current prices, 2009 estimates)

Average Monthly Household IncomeUSD 12,839 (Nationals)USD 4,133 (Expatriates)

Average Monthly Household ExpenditureUSD 7,013 (Nationals)USD 2,447 (Expatriates)

Official Websitewww.abudhabi.ae

During the 19th and early 20th centuries,

the Emirate had been successfully developing

its economy by depending on pearling industry,

camels herding, fishing, and dates production.

However, the situation started to hardenwhen cultured pearls invaded the globe in

the late 1890s. Throughout the following

years, the residents of the emirate had faced

a lot of difficulties finding alternative sources

of cash earnings. By the Britishs withdrawal

and the discovery of oil, the emirate began

Remarkable Achievements

The first Arab capital to host the headquarters of a United Nations specializedagency IRENA

The worlds top-most in per capita GDP

The location of the worlds first zero-carbon city Masdar

One of the worlds richest cities

The first capital in the world to be fully connected with fiber network

35


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drove the development wheel and took Dubai

to the next level. In 1971, His Highness alongwith Sheikh Zayed began the initial steps of

forming the federation.

By the 20th century, due to its strategically

located port, Deira, a major town in Dubai,

became the most important commercial city

on the coat of the Arabian Gulf. Merchants

from around the globe began coming in large

numbers and its economy was booming. The

emirate depended mainly like other emirates

on pearling industry that had collapsed in 1929because of introduction of the artificial pearls.

The discovery of oil in 1966, however, had saved

the emirate from the depression and Sheikh

Rashid worked immediately into developing

infrastructures of schools, hospitals, roads,

ports, communications and transportationsnetworks, preparing Dubai to have one of the

most modern business environments in the

world.Dubai is known of its cultural diversity and

welcoming people. Its shinning sun during the

whole year, mysterious desert, and wonderful

clean beaches, coupled with its luxurious

hotels and malls, historical architectures, andprosperous businesses welcome millions of

tourists and business seekers from all over the

world each year.

Even though Dubai is distinguished by

its desert surface in the south, wonderful

vast sands dunes provide astonishing views

for visitors. The flat sandy desert gives way

to the Western Hajar Mountains, which run

alongside Dubais border with Oman at Hatta.Characterized by its shallow waters and many

coral reefs, Dubais territorial water has been a

rich source of pearls and fish.

Basic Information

TranslationBaby Locusts

Area4,114 km (2ndLargest in the UAE)

Population1,770,978 (2ndLargest in the UAE)

RulerH.H. Sheikh Mohammed bin RashidAl Maktoum

Crown PrinceH.H. Sheikh Hamdan bin MohammedAl Maktoum

Geographic LocationNorth Eastern of the UAESouthwest of the Arabian Gulf

Main TownsBur Dubai, Deira, Al Awir, Al Hebab, AlMadam, Hatta

Main Tourist AttractionsThe Dubai Creek, Dubai Museum, TheHistorical Bastakiya, Hajar Mountains,Sheikh Saeeds House, Jumeirah Mosque,Jumeirah Beach, Burj Khalifa, Bait AlWakeel, The Souks, and Burj Nahar

PortsDubai International AirportAl Maktoum International AirportPort Rashid, Jebel Ali Port

GDP ContributionUSD 80.09 billion (29.6%)(At current prices, 2009 estimates)



Official Websitewww.dubai.ae

the mysterious Bronze Age Majan civilization.

During that time, the main trading exchange

depended on the export of copper extracted

from Al Hajar Mountains and pearls obtained

from Dubai Creek. Other excavations found on

Jumeirah, another suburb of Dubai, revealed a6th-century A.D. caravan station, proving that

people kept trade routes well maintained.

In 1833, a dynasty of Bani Yas tribe known

as Al-Maktoum migrated from Abu Dhabi

to Dubai and settled down around Dubais

creek. Since then, Al Maktoum family hasbeen ruling Dubai. It has been a great geartoward establishing Dubai as an important

business and leisure hub in the world. With

foresighted vision and supporting policies,

the founding father of modern Dubai, Sheikh

Rashid bin Saeed Al Maktoum, efficiently

The builder of the worlds largest man-made island Palm Jumeirah

The host of the worlds largest shopping mall The Dubai Mall

Where the worlds tallest building is located Burj Khalifa

The emirate that has the worlds largest man-made harbor Jebel Ali Port

Among the top ten destinations cities in the world for business tourism with

7.9 million visitors in 2010

DubaiAlthough little known about the ancient

history of Dubai, archeological traces that

were found on Al Qusais area, a suburb in

Dubai, show that the history of the city could

go back as far as 3000 years ago, linking it to

37



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Chapter 1

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As a result of being an important

transportation point that connects Asia to

Africa and Europe for over 500 0 years and as the

only emirate to have both exits on the ArabianGulf and Oman Gulf, Sharjah developed to

be one of the most prosperous towns in the

region for thousands years. In order to control

the most essential trading route in the history,several dominating powers attempted to

conquer the area. The Portuguese during

the 17th century, and British during the 18th

century succeeded somehow to control a

part of the region but the Dutch failed. With

the coming of the ruling family Al Qasimitribe in 1727 that established the emirate as

an independent Sheikhdom, succeeded to

liberate the emirate. Since then, the emirate

made moves ahead toward modernization by

establishing the first school in the UAE in 1903and the first journal in 1927. It also built thefirst airport in the region in 1932. Following

the steps of its neighboring emirates, Sharjah

was the third to join the united federation

since its establishment on December 2, 1971.

The production of oil in 1972 with the previouslydeveloped infrastructures was behind the

early business success of the emirate.

Even though the desert environment

dominates most of the countries in the region,

Sharjah features vegetarian seasonal cover in

addition to the many types of trees that are

considered safe haven for a large number of

animals. Sharjah has important oasis areas, themost famous of which is Dhaid where a wide

range of vegetables and fruits is cultivated on

its rich and fertile soil. In addition, Sharjah hasseveral unique islands: Abu Mousa and Sir Abu

Nuayr located on the Arabian Gulf. Coastal

and marine environment also provide a greatvariety of fish and marine animals that are

endemic in this environment.

Basic Information

TranslationThe Shinning State

Area

2,590 km (3rdlargest in the UAE)

Population882,000 (3rdlargest in the UAE)

RulerH.H. Sheikh Sultan bin MohammedAl Qasimi

Crown PrinceH.H. Sheikh Sultan bin Mohammed binSulthan Al Qasimi

Geographic LocationNorth of the UAE ,between Ajman and Dubai

Main TownsSharjah City, Al Dhaid, Khor Fakkan,Kalba, Dibba Al-Hisn, Islands of AbuMousa & Sir Abu Nuair

Main Tourist AttractionsAl Qasbaa, Arabian Wildlife Centre,Sharjah Art Museum, Expo Centre,The Planetarium, & Sharjah Aquarium

PortsSharjah International Airport,Port Khalid, & Hamriya Port




Official Websitewww.sharjah.gov.ae

A significant regional cultural hub, was chosen as the Arab cultural capital for 1998

The host of one of the top universities of the region - The American University of Sharjah

The host of one of the most notable art exhibitions in the region - Sharjah biennial

A manufacturing hub of the UAE, represents 48% of the UAEs industrial production

39

are considered as a witness, demonstrating

the ancient citys deep-rooted heritage. As

a reward for maintaining its unique genuine

traditions, the emirate was awarded as the

Cultural Capital of the Arab World by UNESCO

in 1998.

SharjahSharjah is a distinguished oasis off the

Arabian Coast that combines between the

nobility of the past and the pride of the

present by refined blending between the old

and the new in a unique contemporary style.

It is rich in many historical monuments that



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Basic Information

TranslationThe Name is Related to an Ancient Tribe

Inhibited the Area

Area259 km (7thlargest in the UAE)

Population224,000 (4thlargest in the UAE)

RulerH.H. Sheikh Humaid bin RashidAl Nuaimi

Crown PrinceH.H. Sheikh Ammar bin HumaidAl Nuaimi

Geographic LocationNorthwest of the UAE

Main TownsAjman city, Masfut, Al Manama

Main Tourist AttractionsAjman Museum, Dhow Yard, Mowaihat,and the Souks

PortsAjman Port

GDP ContributionUSD 3.78 billion(1.4%)(at current prices, 2009 estimates)

Average IncomeUSD 9,719 (Nationals)USD 2,959 (Expatriates)

Average ExpenditureUSD 4,624 (Nationals)USD 2,138 (Expatriates)

Official Websitewww.ajman.ae

defiantly heading to a growth over all sectors.

For these reasons and for the increasing

population of the neighboring emirates,

Ajmans population has been largely growing

for the last five years, demanding more

construction projects.

As the whole regions history, Ajmanshistory goes back to the civilization of Majan

times, 5000 years ago. Throughout the ages,

people who lived in the region depended

mainly on fishing, herding, and cultivation.

The capital city, Ajman, preserves much of itsancient history, and traces of the old town are

still visible. In 1803, the current ruling familysettled down in the area and established

Ajman as an autonomous state.

Ajman was among the four emirates thatsigned the General Treaty of Peace with the

British on January 8th, 1820. On 2 December1971 after the withdrawal of the British, the

UAE was formed, of which Ajman was a founder.

Since then, the emirates leadership has been

putting forward steps toward developingpeoples life standards by implementing

major infrastructure plans and developingcommercial and touristic mega projects.

Ajman is the smallest emirate in the UAE

in terms of area. It is geographically located

on the coast of the Arabian Gulf; its coast

extends for 16 km. The emirate is comprised

of Ajman city and the towns of Masfut and

Al Manamah. Most of the population residesin Ajman city, between the land protruding

between the Gulf and the creek. As for Masfut

and Al Manama, they are located on the east

side of the country and a small portion of the

emirates population lives there. These towns

are environmentally-distinguished. Their

mountains are rich in magnesium, chrome and

lime stones and their fertile valleys produce a

variety of crops each year.

The host of globally recognized players in the ship and boat manufacturing industry

The host of one of the first and biggest private universities networks in the GCC region

41

industrial, commercial, and architecturalgrowth. Major infrastructure projects have

been developed. With increasing ship

movements and trading activity through

Ajman port, that contains the largest ships

maintenance site in the world, the emirate is

defiantly heading to a growth over all sectors.For these reasons and for the increasing

population of the neighboring emirates,Ajman port, that contains the largest ships

maintenance site in the world, the emirate is

AjmanAjman has an ancient history that goes back

to thousands years ago and a bright future that

is looking to pursuit to achieve more progress

toward modernization. Due to its strategic

location between the emirates of Sharjah and

Umm Al Quwain and to its closeness to Dubai,Ajman has been witnessing an unprecedented



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Basic Information

TranslationThe Top of the Tent

Area2,478 km (4thlargest in the UAE)


RulerH.H. Sheikh Saud bin Saqr Al Qasimi

Crown PrinceH.H. Sheikh Mohammed bin SaudAl Qasimi

Geographic LocationNorth of UAE

Main TownsOld Ras Al Khaimah, Nakheel, and JaziratAl Hamra

Main Tourist AttractionsThe National Museum of Ras AlKhaimah,Sheebas Palace, Dhaya Fort, Al Falaya,Jazirat Al Hamra, the Old City, & Souqs

PortsRas Al Khaimah International Airport

GDP ContributionUSD 4.30 billion (1.59%)(at current prices, 2009 estimates)



Official Websitewww.rak.ae

greatly on the spread of Islam. In the early 18thcentury, the Emirates ruling family tribe, Al

Qawasim, had settled in Ras Al Khaimah and

established it as an independent Sheikhdom.

On 11 February 1972, Ras Al Khaimah was the

last emirate to join the United Arab Emirates

federation.

RAK is located at the end of the northernterritory of the UAE. It has a strategic

geographical location, being the entry gate of

the Arabian Gulf, neighboring three emirates

Sharjah, Fujairah, and Um Al Qaiwain, andbordering the Sultanate of Oman. T he emirate

has also a variety of terrains from low sandplains that are connected to the Gulf from

the west, and a chain of mountains that go

along the Gulf from the northern part to the

southern. It has also a number of valleys and

Sulphuric water sources like Ain Khat.

When RAK decided to join the federation, it

sat its vision into becoming a major industrial

producer. Toward implementing its economicpillars, RAK built the first cement company in

the UAE in the early 1970s and today after a

long consistent hardworking coupled with

Sheikhs support and intelligence, it became

the largest cement producer regionally. Ithas as well established the worlds largestceramics producer and became a leader in

pharmaceutical industries.

The First and Largest Cement Producer in the UAE

The Regions First Pharmaceuticals Producer

The Worlds Largest Ceramics Producer

43

civilization that inhabited the region, which

was the Umm Al Nar civilization that emerged

in the third millennium, were found ondifferent parts of RAK. The civilization had a

great impact on toward the development of

the emirate since there are strong evidences

proving the foreign trade with Mesopotamia

and Persia. During this period, RAK became

a very wealthy town that depended on theexport of high quality pottery. The emirate

then was known as Julfar and had played a

very important and patriotic role as a defense

stage of the country through its castles and

forts. Thus, today it is famous of its historicalancient monuments that are linked to many

events in the region. The emirate has also

taken a strategic part for being a commercial

and economic role point during the Islamic

period on 630 A.D.. Through its extensive

trade network, RAK traders participated

Ras Al-Khaimah (RAK)Ras Al Khaimah (RAK) has been an

incubation of several civilizations and a

settlement for human inhabitation for

more than 5000 years, as the archeological

evidences in the national museum of the

emirate demonstrate. Remnants of a major



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WhyUAE?


However, the modern history of the

emirate began when Al Ali tribe moved due

to limited water sources from Al-Sinniya Islandand established an independent Sheikhdom

in Umm Al Quwain. The current ruling family

is a dynasty of Al Ali tribe. Similar to other

emirates, Umm Al Quwain signed the General

Maritime Treaty with the British in 1820.

Because of its distinguished location on theroute to India, the United Kingdoms province

at that time, the emirates import and export

trade thrived. On December 2nd, 1971, the

emirate joined the United Arab Emirates union.

Since then, the emirate made effective efforts

Basic Information

TranslationMother of Two Powers

Area777 km (6thlargest in the UAE)


RulerH.H. Sheikh Saud bin Rashid Al Mualla

Crown PrinceH.H. Sheikh Rashid bin Saud Al Mualla

Geographic LocationNorth of UAE, between Ajman and RasAl Khaimah

Main TownsUmm Al Quwain, and Falaj Al Mualla

Main Tourist AttractionsUmm Al Quwain Fort, Islands ofUmm Al Quwain, Al-Dour, Old HarborDreamland Aqua Park

Ports

Umm Al Quwain PortUmm Al Quwain Airport

GDP ContributionUSD 0.63 billion (0.23%)(at current prices, 2009 estimates)



Official Websitewww.uaqcci.com

to provide a decent life for the people of Umm

Al Quwain. By focusing on industrializing

the emirate by attracting foreign capital toprovide all possible facilities, the emirate

has been witnessing a comprehensive revival

resembled by the impressive achievements

culturally, socially, and economically.

Umm Al Quwain enjoys great touristic

elements which include the availability of

different facilities, beautiful beaches, variousarcheological sites, and distinguished islands.

The emirate is technically positioned betweentwo creeks: Khor Al-Baida and Khor Umm Al

Quwain and is divided into two parts the first

part is salty which is adjacent to the coast,while the other part is sandy. Despite its small

size, its islands: Al Sinniya, Jazirat Al Ghalla,

Al Keabe, Al Sow, Al Qaram, Al Humaidi, Al

Chewria and Al Harmala make a great portion

of its area. Al Sinniya is about 90 km2 and

blessed by several environmental privileges.

It contains the third largest colony of Socotra

Cormorant in the world, ubiquitous green

turtles, remarkable black tip reef sharks, and

archeological sites that date back to the

beginning of Islam in 630 A.D. Between theisland and the mainland runs Khor Al-Beida,

an extensive area of sand and mud.

The host of the worlds largest Aqua park Dreamland

45

and began copper trade during, 3000 B.C.

The metal was sent to all prominent ports on

the Gulf, Umm Al Nar was one of them, and

exported mainly to Mesopotamia. Not only had

the copper trade flourished during the Bronze

Age but also agriculture and pottery. Al-Dour, the largest pre-Islamic site in the region

that was located in Umm Al Quwain, was an

important port used by several civilizations.

In order to defend itself against any foreign

attacks, the emirate started building its forts

and castles. The emirate was also known as thehaven for Arab ships that escaped the foreign

attacks.

Umm Al QuwainUmm Al Quwain is the most ancient

emirate in the country. Archeological traces

show strong evidences of the emirates

relations with Mesopotamia that existed

during the 3rd millennium B.C. Semi-

nomadic tribes settled down in the region



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Chapter 1

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Fujairah is distinguished from the other

emirates in several aspects. It is the onlyemirate located entirely on the Gulf of

Oman while others are on the Arabian Gulf.

Its astonishing beach extends for about

Basic Information

TranslationThe Name Derived from a Spring of Waterthat comes Underneath a Mountain

Area1,450 km (5th largest in the UAE)

Population137,000 (6th largest in the UAE)

RulerH.H. Sheikh Hamad bin MohammedAl Sharqi

Crown PrinceH.H. Sheikh Mohammed bin HamadAl Sharqi

Geographic LocationEast of UAE

Main TownsFujairah City, Dibba Fujairah, Masafi, AlBedieh, Gidffa, and Al Bathna

Main Tourist AttractionsFujairah Fort, Fujairah MuseumThe Heritage Village

PortsFujairah International AirportFujairah Port




Official Websitewww.fujairah.ae

70 km2 Fujairah does not have a desertlike Dubai and Abu Dhabi and it is mostly

mountainous, covered by Al Hajar Mountains

that separate the emirate from the rest of

the country. The high percentage of rainfall

comparing to other emirate allows the farmers

to grow more crops each year. Due to its sunnybeaches, and pleasant weather, the emirate

is one of the most convenient places in the

world for water sports like swimming, sailing,

water skiing, and fishing; thus, it was given

the name the Jewel of the Middle East.The business-friendly procedures and theexcellent infrastructures had played key-roles

to support investors in order to build, developand diversify business activities.

The emirates economy depends on cement,stone crushing, and mining industries. The

establishment of the newly free zone has

moved the economy and created a vibrant

business environment in Fujairah. Its

outstanding geographic location gave an ease

of communication with the major shippingports in the world. More than 40 giant oil-

vessels pass the port. The port is also one of

the most important livestock shipping ports inthe world, where the largest cattle station in

the Arabian Peninsula was created.

47

Peninsula, which was later known as

Phoenicians. Throughout the ages, the area

had been a matter of dispute among several

local dominating powers because of its

strategic location. The ruling family descended

from tribes which migrated from Yemen afterthe collapse of the Marib Dam. It settled down

in the region on 1808, and established Fujairah

as an independent state. During that time, the

settlement and development evolved around

Fujairahs fort which was built on 1500 and

used as a defense stage against any attack.Since then, the emirate has been enjoying

a state of peace and began to focus on its

development. It was the last state to join the

Trucial States after the singing the General

Maritime Treaty with the British in 1902. On

2 December 1971, Fujairah joined the UnitedArab Emirates. The ruling family has been the

driving force behind the commercialization of

the emirates economy.

FujairahFujairahs historical importance goes back

to 3000 B.C. when the area was inhibited by

herders and fishermen. It was then named as

the Land of Titans Ard Al Jababerah. It was

the home for people who were migrating

from the southeastern part of the Arabian

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Its appeal does not only come from its s trategic

location at the heart of the emerging world nor from its

unrivaled business-readiness. Its an effect of a well-

blended, hard-to-resist combination of unique layer

that makes the UAE the ultimate base for businesses

and ventures that are built to last

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The late years of the first decade and thefirst two years of the second decade ofthe 21st century has brought about a new realmthat changed the way business is done aroundthe world. Subsequent to a global economicdownturn that has not been witnessed for justunder a century, a larger number of natio ns arecompeting to attract capital that has becomemore risk averse and selective. Drastic changeshave taken place in the way internationalinvestors think and make investment choices

and decisions. Investors, whether individualor institutional, are now highly cautious whenselecting a country or a market to invest in. Inaddition, the level of awareness in the globalinvestor circle is highly increasing due to easyaccess to information and the accumulation ofexperience during boom time, raising the levelof cautiousness among those investors.

Along with those significant changesin investors behavior, there has been anincreasing level of competition among theworlds developed and emerging nations toattract a greater share of the global flow offoreign direct investment s and to increase theirnations competitiveness in international trade.To achieve those objectives, countries comeup with various polices to encourage ForeignDirect Investment (FDI) inflow includinginvestment incentives, investment-friendlylegislations and different forms of investmentpromotion activities. This competition has led

to a further level of complexity in the processof making the right investment decision due tothe increased choices for investors and traderswishing to enter a specific geographic regionor to seize certain economic benefits and tothe perceived similarity in the offerings andbenefits presented by each nation or region.

At the center of all trade and investmentpromotion efforts of any country is comingup with a unique value proposition thattranslates the specific features and elementsoffered by the nation into tangible benefitsfor potential investors and trade partners. Thisdifferentiated value proposition is what helpsto answer the question Why invest in thisspecific country or region? For the UAE, theanswer for the question Why UAE? wouldbe summed up in two words: uniquenessand partnership. The nation continues topromise investors a fruitful partnership thatwill help them realize potential and growththrough the different economic cycles usingall the innovation, resources and capabilitiesrequired to do so. What is good for business

AGatewayto

Growth

ATrueKnowledgeEconomy

AClimateofTrust

APlugandPla

ySolutionAnI

nspiringSoci

etyandSp

irit

ARecognized

GlobalBrand

is always the best for the UAE and the trustand growth for investors and businessmen isan integral objective inthe nationsstrategy.

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These investments will ensure that sufficient

capacity exists in order to continue the highgrowth trajectory.

Most of these projects were actuallydesigned to provide a close proximity betweena companys warehouse and the transportationport. The Al Maktoum International Airport,for example, is at the skirts of Jebel AliFree Zone, Jebel Ali Industrial Area, DubaiInvestment Park and Dubai Industrial Cityto name a few. In addition, its been anational norm to provide mega projects withconnectivity between sea and air transportallowing for goods to be transferred from theformer to the latter in less than one hour.

Operation wise, the country has a strongbase of regional and international logisticscompanies that can transport all types of goodsin a cost effective manner, complimentedwith dedicated warehousing areas for alltypes of products as well as consolidated

ground and back office services due to thevolume of cargo.

With its welcoming nature and easy accessfrom around the globe, the UAE has alsodeveloped a proven ability to bring togetherbuyers and sellers from different parts ofthe world. Combined with the countrysenrollment in a wide range of bilateral tradeagreements and economic blocs, the UAE hasbecome a favorite choice for traders lookingto penetrate certain regional markets or tolaunch regional distribution operations.

The UAEs neutral and balanced regionaland international relations have been oneof the most enabler for the country toattain this distinguished regional economicstatus . The UAE is an active member in the

Gulf Cooperation Council (GCC), enablingcompanies registered within its jurisdiction tobenefit from the customs union and the gulfcommon market that allow export of goodsand opening of branches of companies indifferent GCC states with no restrictions orcustoms duties. The UAE have also signed asignificant number of treaties to avoid doubletaxation and to protect investments withina number of countries around the world. Insimple terms, this means enabling companiesand investors who choose the UAE to explorethe opportunities around them with anadvantageous position.

One of the reasons why companies decideon the UAE for regional distribution of bothlocally produced and imported good is infact the absence of direct taxes on corporateprofits or personal income along with theminimal customs duties on imports of 5%.

Full repatriation of capital and profits isalso permitted, with no controls on foreignexchange.

Consultants, service providers, contractorsand expert houses have been also takingthe advance of the UAEs flexible andinternationally-benchmarked regulatoryenvironment, lavish business amenities,facilities and ultra-modern lifestyle to use itas their base for their operations across theregion. The ability to fly to the destinationof interest, get business done and come backmost of the time in the same day is one of thepros that set the country aside from the restof the region.

A Gateway to a Thriving RegionThroughout its ancient and modern history,

The UAE has been able to successfully andeffectively exploit its ideal geo-strategiclocation at the crossroads of Asia, the MiddleEast, Africa and Europe to connect buyers withmerchants and suppliers across the differentsectors and then to quickly and convenientlydeliver goods to the vast and expandingconsumer markets. As such, the countryslocation allowed it to become the de-factoand most important business hub not only forGulf region, but also for Europe, Middle East,South West Asia, Africa, and Russia and eventhe Caucasus and Central Asian States.

It is important to note that a potential

market of more than two billion people livewithin four hours traveling time from the UAE,which makes it the ultimate base for exportand re-export activities as well as serviceproviding for companies that seek to exploitthis favorable demographics advantage. Thegood news is that the population growthtrend that this region is witnessing is expectedto continue for years to come. This will meanan increase not only to the number of youngconsumers of products and services, but to thepool of talents that companies, based on theUAE, can access as employees and knowledgeworkers.

In the last decade, the region surrounding

A Gateway to Growth

the UAE, including the Middle East, NorthAfrica and South Asia, have been witnessingan unprecedented economic renaissance.Aided by a growing hydrocarbons price, abooming demographic growth trend and hugeinvestments in infrastructure, the economy ofthe region is soaring compared to many otherdeveloped economic blocks. Even at the peakof the Global Financial Crisis in 2008-2009, theregion maintained a positive growth trendof 1.9% according to the World Bank. Soon,the region rebounded and recovered quicklyfrom the effects of the global downturn tohave a combined growth rate of 4.4% in 2010.Countries across the region are opening upits economies and creating real opportunitiesfor investors, service providers, financial

institutions and goods exporters from aroundthe world to tap into their rapid expansionsand growing demand potential.

The strategic location was actuallycomplimented with a matrix of infrastructuredevelopments, logistics facilities and flexibleexporting regulations. Billions of dollars havebeen invested, in recent years, to develop thewarehousing and transportation infrastructurein major cities with the construction of newprojects such as Khalifa Port and IndustrialZone, Dubai Logistics City and Al MaktoumInternational Airport as well as the expansionto current developments such as Jebel AliPort, Dubai Cargo Village and Zayed Port.

AGatewa

y

toGrowth

AGateway

toaThri

vingReg

ion

Confidencei

ntheEcon

omy

AnOasisofSta

bility

OpenDoorPolicy

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The two funds were scheduled to beginoperations in the final quarter of 2011 andare just two examples reflecting the interestof international financial institutions in takingpart in the success story of the UAE economy.It is not strange here to recall the fact that in2008, the UAE, represented by the emirateof Dubai, was the top global destination forforeign direct investments, attracting morethan USD 21 billion of investment capitals toits rich base of projects and opportunities.

It is also important to notice here thesignificance of the UAE governments movetowards stimulating small and medium sizedenterprises (SMEs). These projects serve thenational economy and create jobs for youngcitizens. Representing around 60% of thetotal number of enterprises in the economy,the growth and healthiness of this sector willrevive the market and solve any potential

liquidity issues. It will also help in diversifyingthe sources of national income and stimulatingentrepreneurship thats the guarantor for thecontinuous pulse of change in the UAE.

Of particular interest here is the realestate sector, which is currently witnessing arenewed interest by foreign investors. Despiteall the negative hype, the UAEs real estatesector did not experience the same extent ofdownturn seen in other countries. Real estateregulations in Dubai and the other emirates

have given investors confidence to return asthe government took speedy measures tosave the sector from the adverse effects ofthe global credit crunch. Local and foreignbanks were encouraged to lend and weregiven the right guarantees. In additions, newdevelopment and investment opportunitiesare emerging in different parts of the countrywith end user demand and vast potential for

growth, including the western region of AbuDhabi, Umm Al Quwain and other parts of thecountry. This promises a new dawn for thissector that has for long shaped a main pillar ofconfidence in the national economy.

Consumer confidence is also gearing up.A recent report by the The Nielsen Companyshows the UAE as one of the countries on theworlds top-10 consumer confidence list in thefirst half of 2011 moving up 12 ranks from theyear before.

Confidence in the EconomyBecause the UAE economy was structured in

a healthy manner, it boosts further confidencefrom various stakeholders both inside andoutside the country. In addition, the countryseconomy was able to quickly emerge strongerfrom the aftermaths of the Global FinancialCrisis in 2008-2009 due to its solid pillars andstrong foundation.

The head of Middle East and North Africa

Department at the International MonetaryFund (IMF) has declared in Augu st 2011 that theUAE economy has been steadily performingpositively and has continued to attractforeign direct investments. According to IMF,this is only a reflection of the internationalconfidence in the Emirati economy.

Moreover, the embedded nature ofdiversity is another factor that increases thelevels of confidence in the countrys economy.The governments policy has been to widenthe diverse base of the economy and pushto increase the contribution of the non-oilsectors to the national GDP. In fact, thereare two boosting players here. The high oil-based income provides a guarantee againstmarket turbulences in many aspects, while thediversification builds up the trust of foreignand local investors in the national economyas it provides them with lucrative and stableopportunities to thrive in.

The continuous influx of foreign directinvestment is another sign of the level of trustin the UAEs national e conomy. In August 2011,First Capital Bank of Switzerland announcedthe launch of a fund with a capital of USD 500million for health services covering hospitalsand labs in the United Arab Emirates. Anotherfund with a capital of USD 500 million was tobe established in the precious metals trade.

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Open Door PolicyIf one country in the Middle East is to be

described as the sole free trade nation inthe region, that would be the United ArabEmirates and thats for valid reasons. This isevidenced by the countrys tax-free status,world-class infrastructure, low tariffs and 100per cent ownership for foreign investors in freezones, making it the ideal location for settingup new businesses. UAE is also appealing toinvestors thanks to its world-class free zones,100% repatriation of capital and profits, andbeing in close geographic proximity to the topEuropean and Asian markets.

In fact, while the UAE follows global bestpractices and creates a conducive environmentfor businesses to operate, and presents ampleopportunities for both investors from theregion and around the world, the governmentencourages the private sector in a free traderegime with low tariff barriers and minimumlegal hurdles.

At the political level, the UAE, a memberof the World Trade Organization (WTO) since1996, supports open trade and has stable traderelations with countries throughout the world.Thanks to its open economy, attractive businessenvironment and continued economic growth,the UAE has emerged as a key internationaltrading hub between East and West. The WTOhas named it the leading Arab economy interms of global trade and one of the top 30nations in the world. The UAE Governmentsfree-market policy and flexible economic andcommercial laws are the prime factors in the

countrys rise as a regional and global leader.

In terms of imports and exports, thecountry applies a liberal trade regime withtariffs based on the GCC tariff structure.Customs

Documents

Living In UAE