Routes to Market

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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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TRADE

• UAE is UKs 9th largest export market (2005).
• Dubai alone UKs 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.
  

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REGIONAL HUB

• Significant visitor , and ex-pat markets

• Development of Jebel Ali Taweelah Ports

• Growth of Emirates Etihad Airlines

• Dubai is worlds third largest re-export centre

• Dubai handled around 73 of UAE foreign trade
  (2004)

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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
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Ruling Family
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LEADING TRADING FAMILY
Al Futtaim IKEA, ToysRUs, MS 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

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LEADING TRADING FAMILY
Al Majid Al Majid Property EMW Lifts
Escalators GENAVCO GULFCO Taj Hotel Skyline
Travels EPS www.al-majid.com

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 Naboodah Al Naboodah Cont. Al Naboodah
Cargo Travels Tourism SMKA Electric Co Al
Naboodah Laing ORourke Swaidan
Trading www.alnaboodah.com
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LEADING TRADING FAMILY
Al Rostamani Thomas Cook Exchange Arabian
Automobiles Co Dubai Intl 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
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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
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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
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MAJOR PROJECTS (Contd)

• A new national grid linking all power stations
  distribution networks in Dubai Abu Dhabi
  (valued at US164million)
• 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

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KEY ISSUES

• Dont 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

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DOING BUSINESS IN UAE

• Direct Export - Agent/Distributor
• Representative Office
• Branch Office
• Limited Liability
• Joint Venture/Participation
• Freezone or Sponsor/Partner?

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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

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DOING BUSINESS IN UAE

• Representative Office
• Branch Office
• Sponsor generally needed registration/formalitie
  s
• Sponsors no liability , investment , management
• Fees are fairly established
• Specialist UAE firms offer matching service
• Termination may be difficult

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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

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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 ?

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DOING BUSINESS IN UAE

• Free Trade Zones
• 40 FTZS 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

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OUR SERVICES

• ? Overseas Market Introduction Service ? Market
  Visits
• ? Programme Arrangements ? Exhibitions
• ? Company Information Profiles ? Major Project
  Data
• ? Market Summaries
• But dont forget others that can be helpful
• ? British Business Groups
• ? Middle East Association
• ? Arab British Chamber of Commerce

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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 !!!

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CONTACT
www.uktradeinvest.gov.uk www.emids.uktradeinvest.g
ov.uk www.britishembassy.gov.uk/uae Steve
Barton- International Trade Adviser UK Trade and
Investment Team East Mids Tel [phone]
4001