Did you know exporting to overseas markets just got easier? Talk to UKTI about the first steps to expanding your business in UAE.

Transcription

1 Did you know exporting to overseas markets just got easier? Talk to UKTI about the first steps to expanding your business in UAE.

2 2 United Arab Emirates United Arab Emirates 3 The United Arab Emirates (UAE) has grown from a quiet backwater to one of the Middle East s most important economic centres. UAE has one of the highest GDP s per capita, ranked sixth in the world by Forbes Magazine and according to the World Bank is ranked the 23rd easiest country in which to do business. Having diversified its economy away from oil, non-oil sectors now contribute approximately 70% of Gross Domestic Product (GDP). Key facts about the UAE market UAE is the UK s largest export market in the region and 12th biggest globally UAE has a diverse economy continually growing and expanding There is no taxation on personal income and capital gains English is widely spoken and accepted as the language of business The geographical location makes the UAE a key market for re-export into other countries The majority of the UAE population is made up of expatriates, with around 120,000 UK residents One of the most liberal trade regimes in the Gulf attracting capital from across the region

3 4 United Arab Emirates United Arab Emirates 5 Which products and services? UKTI have teamed up with i2i Events Group to deliver a number of international trade shows in the following specific industries: Homewares, jewellery, gifts (Spring Fair), education and training (Bett, The Education Show), fashion and clothing (Pure), media (BVE), electronics, automotive and energy (CWIEME). Trade shows can be one of the best ways to promote your products, as well as find out much more about the market in which you want to export to. Be sure to explore how you can have exporting success in UAE by attending one or more of these trade shows. Thinking about exporting to UAE? Here are three top tips to help you prepare for exporting: 1. Do your market research by accessing the UKTI website and reading the Doing business in UAE guide. Search the Internet and talk to others who have successfully exported. 2. Make use of the UKTI experts, such as an International Trade Advisor (ITA) and Commercial Officer (CO). They will advise you and provide a myriad of services, most of which are completely free of charge. 3. Attend a trade show that attracts international visitors.

4 6 United Arab Emirates United Arab Emirates 7 The market, and how to get there The United Arab Emirates (UAE) is a federation of seven states. Each Emirate retains control of regulatory powers. This covers commercial activities such as issuing of trade licenses and the incorporation of corporate entities, where the activity is not already regulated under federal legislation. The interaction of federal laws, individual emirate laws and free zone laws can be complex and confusing but UKTI will be able to advise how to get the information from the right state and recommend which is the most appropriate area in which to set up. Under federal legislation, the principal relevant options available for conducting business in the UAE are; participation in a local company or other commercial entity, establishment of a branch office, appointment of a commercial agent or distributor and lastly the establishment of a branch or subsidiary in one of the free zones of the UAE. If you re establishing a branch office, you need consent from the Ministry of Economy and deposit a bank guarantee of AED 50,000. The branch office has to be sponsored by a UAE national or a locally registered company entirely owned by UAE nationals. If you just intend to export goods or services to the UAE, you may want to appoint an agent, distributor or franchisee, which must be either a UAE national or a company entirely owned by UAE nationals. The free zones offer a wide variety of benefits to businesses and a degree of flexibility including; no national agent required for branch offices of foreign companies, no customs duties on imports and re-exports (except re-exports into onshore UAE), special assistance in getting work permits for staff, guaranteed exemptions from corporate taxes and much more. As you can see there are a few options for establishing your business in UAE. UKTI experts can help you decide which option is best for your business.

5 8 United Arab Emirates United Arab Emirates 9 Tax, customs and regulations UAE has a vast experience with foreign companies operating in its territory and offers a reliable framework in which to do business. In regards to taxation, UAE does not have any enforced federal income tax legislation for general business. An income tax decree has been enacted by each Emirate, but in practice, the enforcement of these decrees is restricted to foreign banks and to oil companies. There is currently no value added tax or sales tax in the UAE, although the imposition of a GCC wide value added tax has been widely discussed for the last several years. Capital gains in the UEA are also non-taxable. In regards to customs, the UAE generally levies customs duties on imported goods at the rate of 5%. Higher rates of duty apply to alcohol and tobacco. Some categories of goods are exempt. Exemptions may also be granted for goods imported for industrial or manufacturing purposes. Where goods are imported into a UAE free zone, customs duties are not payable. A Certificate of Origin is needed for all exports to clear customs. Certificates of Origin must be provided by the original exporter and recognized by an authorised representative in UK. If you intend to trade or invest in the UAE, you need the correct authorisations and licenses. It would wise to check with the local authorities through your ITA as to which specific regulations you will need to adhere to as each Emirate may also have additional requirements.

6 10 United Arab Emirates United Arab Emirates 11 Tax, customs and regulations continued Intellectual property, trademarks and certification While a framework of legislation for the main intellectual property (IP) rights in the UAE does exist, there are no specialist IP courts and a lack of specialist local advocates. This can make civil litigation a challenge, so enforcement of IP rights is often achieved in other ways. This includes in the case of trade mark infringement by filing complaints about counterfeiters with the police or customs authorities. Culture and etiquette The UAE has a diverse and multi-cultural society with 80% of the UAE population expatriates. As a result the UAE is regarded as relatively liberal within the region and provides schools, cultural centres and restaurants catering for international cultures. The national culture revolves around the religion of Islam, although other religions are also respected and churches and temples can be found alongside mosques. The Islamic dress code is not compulsory. Most UAE national (Emiratis) males wear a kandura, an ankle length white shirt and most Emirati women wear an abaya, a black flowing over garment covering most of the body. English is widely spoken throughout the country. Although it s common for written correspondence to be in English, Arabic is often preferred within some public sector organisations. Face-to-face meetings are preferred because phone calls and s are sometimes seen as impersonal. The working week is Sunday to Thursday.

7 gov.uk/ukti UKTI UK Trade & Investment is the Government Department that helps UK-based companies succeed in the global economy. We also help overseas companies bring their high-quality investment to the UK s dynamic economy acknowledged as Europe s best place from which to succeed in global business. Disclaimer Whereas every effort has been made to ensure that the information in this document is accurate, neither UK Trade & Investment nor its parent departments (the department for Business, Innovation and Skills, and the Foreign and Commonwealth Office) accept liability for any errors, omissions or misleading statements, and no warranty is given or responsibility accepted as to the standing of any individual, firm, company or other organisation mentioned. Crown copyright 2014 You may re-use this information free of charge in any format or medium, strictly in accordance with the terms of the Open Government Licence. To view this licence, visit: or psi@nationalarchives.gsi.gov.uk. Where we have identified any third party copyright information in the material that you wish to use, you will need to obtain permission from the copyright holder(s) concerned. Any enquiries regarding this material should be sent to us at enquiries@ukti.gsi.gov.uk or telephone +44 (0) This document is also available on our website at Published November 2014 by UK Trade & Investment UKTI HEAD OFFICE General enquiries: 1 Victoria Street London SW1H 0ET Telephone: enquiries@ukti.gsi.gov.uk Contact form: contactus.ukti.gov.uk