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1、AN INTRODUCTION TODoing Business in Dubai 2023This edition of Doing Business in Dubai was produced by a team of professionals atDezan Shira&Associates,with Chris Devonshire-Ellis as Editor.Creative design of the guide was provided by Aparajita Zadoo.2023 Dezan Shira&Associates VISIT US ON FACEBOOKFO
2、LLOW US ON TWITTERDezanShiraMdEastBriefingVISIT OUR WEBSITEDisclaimerThe contents of this guide are for general information only.For advice on your specific business,please contact a qualified professional advisor.Copyright 2023,Asia Briefing Ltd.No reproduction,copying,or translation of materials w
3、ithout prior permission of the publisher is permitted.ChinaIndiaVietnamASEANIndonesiaHong KongRussiaSingaporeBelt&RoadTHE DOING BUSINESS IN ASIA GUIDES SERIES3AN INTRODUCTION TO DOING BUSINESS IN DUBAI 2023About Dezan Shira&AssociatesDezan Shira&Associates is a pan-Asia,multi-disciplinary profession
4、al services firm,providing legal,tax and operational advisory to international corporate investors.Operational throughout China,India,ASEAN and the Middle East,our mission is to guide foreign companies through Asias complex regulatory environment and assist them with all aspects of establishing,main
5、taining and growing their business operations in the region.With more than two decades of on-the-ground experience and a large team of lawyers,tax experts and auditors,in addition to researchers and business analysts,we are your partner for growth in A4AN INTRODUCTION TO DOING BUSINESS IN DUBAI 2023
6、Daily business and regulatory updates concerning the entire Middle East region,plus our complimentary weekly e-news update,delivered directly to your inbox.Complimentary subscription available hereUAE&Dubai Daily Business Updates 5AN INTRODUCTION TO DOING BUSINESS IN DUBAI 2023Dezan Shira&Associates
7、 Dezan Shira&Associates has maintained an interest in Dubai for many years,however recent geopolitical changes have meant that we established our first wholly owned and licenced presence in the Emirate last year.Today,the Middle East,and Dubai are fast growing hubs that are increasingly acting as a
8、bridge between East and West.With about 50%of our practice clients coming from the West,yet our corporate presence encompassing Asia,we have found Dubai a logical step in creating that link between the two.The UAE,of which Dubai is just one of the seven Emirates,experienced its highest growth in ove
9、r a decade during 2022 and was one of the fastest growing economies in the world last year.Neighbouring Saudi Arabia is expected to be the worlds fastest growing major economy in 2023.We see our role as facilitating trade and investment in both directions-from Europe and the United States into Dubai
10、 and the Middle East,and then onto Asia.We also see trade and investment from Asia-China,ASEAN and India going in the opposite direction,into the Middle East and beyond.Our practice is actively involved not just in Dubai,but elsewhere through our professional relations with firms across the MENA reg
11、ion,including Turkiye,Jordan,Oman,Qatar,and Iran,and Egypt and East Africa.It is a significant footprint.Providing market and business intelligence,corporate establishment,tax advisory and trade compliance,please contact us as your eyes and ears for what is happening in this dynamic,emerging region.
12、PrefaceMARIA KOTOVARegional Director Dezan Shira&Associates CONTACT6AN INTRODUCTION TO DOING BUSINESS IN DUBAI 2023About This GuideWe understand that Dubai is a new market for many foreign investors.Yet unlike many local firms,we have extensive experience throughout the rest of Asia as well.For that
13、 reason,in this brand new Dezan Shira&Associates operational handbook,for 2023 we have concentrated on setting the scene,with examples of how Dubai and the immediate regions are becoming increasingly interconnected and have included a lot of intelligence not just concerning the UAE but examples and
14、some case studies of how it is increasingly interconnected both regionally and with Asia.To do this,we have kicked off Part 1 with a general Economic Overview and discuss the UAEs overall business development strategy-important for foreign investors to be aware of.In Part 2,we discuss instances of R
15、egional Trade and Investment developments to guide readers through the wide amount of international economic,trade and investment diversity that is the new normal is this rapidly developing region,with examples from Azerbaijan to China to ASEAN,India and the United Kingdom.In Part 3,we look at some
16、of the developing trends in terms of foreign investment-with the UAE very much at the forefront of new tech such as digital finance,electric vehicles,and green economies.In Part 4 we get into some detail concerning the various UAE and Regional Free Trade Agreements and Trade Partnerships-when settin
17、g up a company here in Dubai,your business can also take advantage of these,meaning it is good to know what additional trade options are available.In Part 5 we concentrate specifically on the Middle Easts trade and investment relations with China,the regions largest trade partner.Part 6 covers the i
18、ssuance of UAE visas,and Part 7 Intellectual Property.In Part 8,we discuss Corporate Establishment options,and Part 9 we cover the changing Tax Regime-the corporate tax structure is being amended in mid 2023 and affects all foreign investors.Unlike other regional business guides this year we have op
19、ted for a far more inclusive approach-as doing business in Dubai isnt just about the regional regulations-its also very much about the opportunities that Dubai presents as a Gateway to the Middle East,and Asia.Our firm,with 30 years experience throughout the Asian region,is one of the very few to ha
20、ve this kind of expertise.For assistance with operations or to discuss your overall Asia strategy,please contact us at .7AN INTRODUCTION TO DOING BUSINESS IN DUBAI 2023Table of ContentsPreface05About This Guide06Part 1|Setting The Scene10UAEs Strong 2022 Economic Growth Highest For 11 Years11An Intr
21、oduction To Dubais Industrial Development Strategy14Dubai Introduces A Metaverse Dispute Arbitration Platform18Part 2|Regional Trade19Azerbaijan UAE 2023 Trade and Investment Development Prospects20UAE Russia Bilateral Trade Up 68%In 202223UAE Begins Fast Track Talks Over Eurasian Economic Union Fre
22、e Trade Agreement24Abraham Accords Leading To UAE-Israeli Investments26UAE-India Bilateral Trade Up 10%Since CEPA Trade Agreement Signed27Singapore As A Gateway To Asia For UAE Based Businesses28Chinas Engagement With The Gulf Cooperation Council:Latest Updates31UAE-China Non-Oil Trade Up 78.5%35UAE
23、,South Korea Sign 23 Bilateral Trade Agreements36UK Progresses With Trade Wins As GCC Trade Deal Looks Promising 388AN INTRODUCTION TO DOING BUSINESS IN CHINA 2023Part 3|Industrial Sectors To Watch40Green Channel For Food Imports Into Dubai Now Operational41Foreign Investment Opportunities In the UA
24、E E-Commerce Market43Dubai Becomes Global Hub For Rough&Polished Diamond Trade45Dubai Cancels 30%Alcohol Tax46Indian EV MNC To Test Market UAE Manufacturing For Electric Powered Buses And Commercial Vehicles47New Dubai Urban Tech District To Help Create Future Smart Cities49Cryptocurrency To Play Ma
25、jor Role In UAE Global Trade Minister of Foreign Trade51Dubai Expecting A Busy 2023 In Developing An International IPO Market52Part 4|Free Trade Agreements,Closer Economic Partnership Agreements&Free Trade Zones 53The Gulf Cooperation Council(GCC)54UAE,Israel,Sign Free Trade CEPA Agreement55Notable
26、Free Trade Agreements&Comprehensive Economic Partnerships56Part 5|The Middle Easts Trade With China&India80Dubai Free Trade Zones81Table of Contents9AN INTRODUCTION TO DOING BUSINESS IN DUBAI 2023Tax,Investment,and Trade Agreements Between Countries in the Middle East and China83The Middle Easts Tax
27、,Investment,and Trade Agreements with Hong Kong89Part 6|Obtaining Visas95Applying For A 2022/2023 Virtual Work Visa In The UAE96Obtaining Work&Residence Visas In The UAE98Part 7|Intellectual Property101UAE Intellectual Property Law Updates102Part 8|Corporate Establishment 105Establishing A Company I
28、n Dubai106Establishing A Representative Office In The UAE108Part 9|Tax111Dubai And UAE Foreign Investors Must Prepare For New Tax Rules Effective June 1st112UAE Sets Zero Corporate Tax Threshold At US$100,000114UAE New Tax Regime Allows Corporate Losses To Be Carried Forward Against Future Profits11
29、5Non-Residents In UAE Need Not Register For Corporate Income Tax116Applying For Tax Relief Under the UAE SME Tax Relief Programme11710AN INTRODUCTION TO DOING BUSINESS IN DUBAI 2023UAEs Strong 2022 Economic Growth Highest For 11 YearsAn Introduction To Dubais Industrial Development StrategyDubai Int
30、roduces A Metaverse Dispute Arbitration PlatformSetting The Scene 1Dubais National Development Plans 11AN INTRODUCTION TO DOING BUSINESS IN DUBAI 2023Opportunities for foreign investors to access new markets in a region promising higher than global average growth projections and market stability The
31、 UAE economy grew by 7.6%for 2022,the highest in 11 years,driven by both oil and non-oil sectors,according to the latest estimates by the UAE Central Bank.The robust growth is driven by a sharp increase in oil revenue,as well as a noticeable improvement in the real non-oil GDP,the regulator said in
32、its latest Quarterly Economic Review 2022.“Overall real GDP continued to grow at a strong pace in the third quarter of 2022,after a robust increase in the first half of the year,”the Central Bank said in the report.“It was driven by a further rise in oil production,as well as significant improvement
33、 in the real non-oil GDP.”However,the UAE Central Bank has revised its output growth for 2023 as Opec and its allies decided to cut oil production starting in November amid economic headwinds.The countrys economy is projected to grow 3.9%next year,down from the 4.2%forecast in the previous report.Sl
34、ightly Differing ForecastsAccording to the International Monetary Fund,the UAE is set to grow more than 6%,according to the Emirates NBD forecasts.The First Abu Dhabi Bank projects a 6.7%expansion and Abu Dhabi Commercial Bank estimates growth of 6.5%“There are increased chances for growth being str
35、onger in 2022 due to mainly better-than-expected performance in some of the non-oil sectors such as tourism and hospitality,real estate,transportation and manufacturing,”the Central Bank said.Dubai hosted 11.4 million overnight international visitors in the first 10 months of the year,up 134%from th
36、e same period in 2021,and is close to returning to pre-pandemic levels,according to the latest data from the Department of Economy and Tourism.Foreign TradeThe UAEs foreign trade is expected to reach Dh2.2 trillion(US$599.4 billion)by the end of 2022 as the countrys economy proves to be an exception
37、.UAEs Strong 2022 Economic Growth Highest For 11 Years112AN INTRODUCTION TO DOING BUSINESS IN DUBAI 2023The Emirates,which recorded a foreign trade volume of Dh1.9 trillion at the end of 2021,expects 15%growth this year,a significant increase compared with the World Trade Organisations 3.5%growth ex
38、pectation for global trade,an attractive driver for investors into the region.Real EstateProperty transactions also continued to rise in the country amid a recovery in the property sector.Off-plan and secondary property sales in Dubai reached a 12-year high in the third quarter,both in terms of volu
39、me and value,a report by Property Finder said.A total of 25,456 sales transactions worth Dh69.72 billion were recorded in the quarter,marking an increase of about 62%in terms of volume and more than 65%in value,compared with the third quarter of 2021.Abu Dhabis property market recorded 4,441 transac
40、tions amounting to US$5.7 billion in the third quarter,according to the Department of Municipalities and Transport.Manufacturing BoomThe UAE is also boosting its manufacturing sector.It plans to more than double the contribution of the industrial sector to the countrys economy to Dh300 billion by 20
41、31.EnergyThe UAEs oil production in the third quarter averaged 3.17 million barrels per day while the countrys hydrocarbon GDP is estimated to have grown 13%annually during the period,data from the Central Bank showed.Oil GDP is projected to grow by 11%and 3%in 2022 and 2023,respectively,with perfor
42、mance in both years depending on the“evolution of the Russia-Ukraine conflict,potential global economic slowdown,further Opec+decisions to change production levels,potential reduction in output by some of the other Opec members,and further post-Covid recovery”,the Central Bank said.Starting last mon
43、th,Opec and its allies,including Russia,agreed to cut production by 2 million bpd amid demand concerns as global economies slow down on account of rising interest rates and the Ukraine crisis.Non-Energy Sectoral GrowthFor 2022 and 2023,the Central Bank projects that the countrys non-oil sector will
44、expand 6.1%and 4.2%respectively,on the back of the easing of pandemic-related restrictions,recovery in global travel and tourism and booming real estate and construction sectors,it said.Along with the oil price boost,increased government and private sector spending is driving GDP growth,the Central
45、Bank said.Given the rally in oil and gas prices and the expected increase in production,2022 has witnessed higher government revenue,boosting public spending further.Revenue&ExpenditureGovernment revenue increased in the first half of 2022 by 46.7 per cent on a yearly basis to Dh305.6 billion due to
46、 an increase in taxes and social contributions.On the expenditure side,13AN INTRODUCTION TO DOING BUSINESS IN DUBAI 2023current spending rose by 6.1 per cent yearly in the first half of 2022 to Dh180.1 billion compared to 5 per cent during the same period of the previous year.The Central bank also r
47、evised its projection for the UAE headline inflation downwards to 4.9 per cent factoring the latest developments in oil prices,with the regulator forecasting average Brent prices to be around$102 a barrel in 2022,less than previously expected,in addition to a moderation in food prices,compared to a
48、quarter ago.Overall the conditions bode well for foreign investors into the UAE as regional growth elsewhere coupled with market stability make the UAE an attractive proposition for global investors seeking higher than global average returns and access to new growth consumer markets.Dezan Shira&Asso
49、ciates maintain an office in Dubai and advise foreign investors into the region.For assistance please contact Maria Kotova at CONTACT14AN INTRODUCTION TO DOING BUSINESS IN DUBAI 2023Dubai is scaling up efforts to transform itself into a global industrial and manufacturing hub and attract major inves
50、tments across key sectors such as aerospace,pharma and medical equipment,and more.This is consistent with the Dubai Industrial Strategy which projects an additional US$5 billion in its industrial sector growth by 2030.In the past 10 years,the contribution of Dubais industrial sector to its GDP has b
51、een around 11-14%,making it the third largest sector,after trade and logistics.It has continued to demonstrate solid growth even during times of global crisis,buoyed by a range of strategic government initiatives and programs,such as the Dubai Industrial Strategy,to boost the global competitiveness
52、of the sector and attract foreign investments.His Highness Sheikh Mohammed Bin Rashid Al Maktoum,the Dubai Prime Minister,has said“The Dubai Industrial Strategy aims to leverage our advanced infrastructure,enabling an environment to transform the UAE into a global platform for innovative industries
53、and a destination of choice for international companies seeking an integrated and favorable environment for growth and sustainability.”Global companies have built manufacturing facilities and research and development centers in Dubai a move that is in line with the Emirates industrial strategy to bo
54、ost Make in UAE production in key sectors,including pharmaceuticals and medical products.Many of these are attracted to Dubai Industrial City,a Free Trade Zone in the Emirate.Saud Abu Alshawareb,Executive Vice President,Managing Director of Dubai Industrial City,explains that“As one of the regions l
55、argest industrial hubs,Dubai Industrial City takes pride in providing a platform where businesses from around the world can expand and benefit from a favorable business climate,world-class infrastructure,and unrivalled connectivity.Our community is home to giants like Al Barakah Dates,Standard Carpe
56、ts,and Anorka Food Industries and OSE Industries,all of which are exporting across the region and to the US,Europe,Africa,and Australia.”Established in 2004,Dubai Industrial City is home to more than 750 businesses and hundreds of advanced factories using fourth industrial revolution technologies to
57、 make everything from car parts to coffee.Its ease of doing business,advanced infrastructure,logistics network,availability of raw and packaging materials,and access to specialized talent have cemented Dubais position as a preferred manufacturing,industrial,and R&D hub.As a result,some of the worlds
58、 largest companies have now chosen Dubai to expand their reach and impact,reflecting the vast opportunities in the region that the emirate offers access to.The Dubai Industrial Strategy 2030,which was launched in June 2016 with the goal of elevating the Emirates into a global platform for knowledge-
59、based,sustainable,and innovation-focused businesses,has identified 75 initiatives to transform Dubai into an industrial hub.An Introduction To Dubais Industrial Development Strategy15AN INTRODUCTION TO DOING BUSINESS IN DUBAI 2023Five key objectives of the Dubai Industrial Strategy1.Increase the tot
60、al GDP and value-added of manufacturing Increase the total output of manufacturing,making the sector a growth engine4.Promote environmentally friendly and energy-efficient manufacturing Support green economy initiatives Limit manufacturing pollutants Limit energy consumption5.Make Dubai a center for
61、 the global Islamic products market Increase the number of Halal-certified manufacturing companies in Dubai Increase Dubais Islamic products manufacturing2.Enhance the depth of knowledge and information Improve labor productivity Increase spending on research&developement3.Make Dubai a preferred man
62、ufacturing platform for global business Increase the presence of global manufacturers in Dubai Support global outreach of homegrown companies Increase manufactured exportsThe strategy has further identified six priority sub-sectors:AerospaceBy manufacturing parts for aircraft and providing aircraft
63、services,Dubai can leverage its position as a global hub for aviation.Emirates Airlines is considered to be one of the leading airlines in the world,and the strategy aims at supporting Emirates Airlines through the localization of manufacturing capabilities and increasing levels of research and deve
64、lopment in the sector.MaritimeDue to Dry Docks World and Dubai Maritime City,the Emirate is considered a front-runner in the field of maritime maintenance and repair.DP World is considered one of the largest port operators in the World.Dubai is perfectly positioned as a hub for trade and maritime se
65、rvices.The strategy will seek to broaden its activities as the magnitude and scale of sea traffic grows.16AN INTRODUCTION TO DOING BUSINESS IN DUBAI 2023Pharmaceuticals and medical equipmentPharmaceuticals and medical equipment is a vital sector for any economy.Lucrative opportunities exist to devel
66、op this sector.Many international firms have expressed their interest in moving plants and research centers abroad to take advantage of new markets and lowered business costs.Dubai is considered as one of the prime hubs to host these international firms.Increasing investments in R&D,infrastructure a
67、nd building capacity help step up to the next phase of manufacturing pharmaceuticals which requires advanced technology,skilled human capital and strong R&D capabilities.Aluminum and Fabricated MetalsDubai is one of the largest producers of fabricated metals(especially aluminum)worldwide.The UAE is
68、one of the top global producers of aluminum.The industrial strategy will aim to expand its production capacity of fabricated metals.This will be achieved by enhancing the capabilities of the downstream and finished goods manufacturing domains to increase the overall added value and maximize benefits
69、 from the existing smelters.Food and BeveragesWith countries in the Gulf Cooperation Council(GCC)importing 70%of their food needs and registering an annual growth of more than 3 per cent,Dubai can play a significant role in becoming a major hub for food products in the region.Dubais logistical capab
70、ilities will serve as a driver for F&B escort.The growing demand for Halal products is also poised to cement Dubais position as the capital of the Islamic economy and enhance local manufacturing.17AN INTRODUCTION TO DOING BUSINESS IN DUBAI 2023Machinery and EquipmentThe machinery and equipment secto
71、r represents 25%of the overall industrial sector in Dubai,making it one of the largest industrial sub-sectors in Dubai.Efforts to develop this sector and boost its global competitiveness are expected continue to add a significant amount of value to Dubais overall GDP,given the investment opportuniti
72、es and strong demand.With the Dubai Industrial Strategy and focused government initiatives to make Dubai a global industrial and manufacturing hub,the UAE is taking steps towards building a future-ready economy and becoming a preferred destination for investors and businesses from across the world.S
73、ignificant positive impact on Dubais economy by 2030160 billion AED increase in Dubais total GDP700 million AED increase in R&D expenditures27,000 more specialized jobs created16 billion AED increase in exports18AN INTRODUCTION TO DOING BUSINESS IN DUBAI 2023The Dubai International Arbitration Centr
74、e(DIAC)is putting up a Metaverse dispute resolution platform,where those involved in the dispute can get onto the Metaverse platform and participate in finding a resolution from wherever they might be in the world.The process provides an equal opportunity for all parties to participate in dispute re
75、solution proceedings,minimising the impact of their resources or financial ability.Dr.Tariq Humaid Al Tayer,Chairman of DIAC said that“This new offering comes in line with Dubais aspiration to be a global Metaverse hub.It reinforces DIACs position as the leading international arbitration centre,enha
76、nces our capabilities to offer innovative and novel methods for resolving disputes,and reflects our vision to be the ultimate global destination for dispute resolution.”“As the use cases for the Metaverse continue to develop,parties can expect further advancements in virtual dispute resolution,such
77、as AI-driven analytics,enhanced security measures,and personalised avatars for better user experience,”DIAC said in a statement.Last year,the DIAC introduced new arbitration rules in line with international best practices,and further consolidating Dubais position as a dispute resolution hub.A new st
78、rategy will be launched during Q2-2023,along with improvements to corporate governance and operations.Dubai Introduces A Metaverse Dispute Arbitration Platform19AN INTRODUCTION TO DOING BUSINESS IN DUBAI 2023Azerbaijan UAE 2023 Trade and Investment Development ProspectsUAE Russia Bilateral Trade Up
79、68%In 2022UAE Begins Fast Track Talks Over Eurasian Economic Union Free Trade AgreementAbraham Accords Leading To UAE-Israeli InvestmentsUAE-India Bilateral Trade Up 10%Since CEPA Trade Agreement SignedSingapore As A Gateway To Asia For UAE Based BusinessesChinas Engagement With The Gulf Cooperation
80、 Council:Latest UpdatesUAE-China Non-Oil Trade Up 78.5%UAE,South Korea Sign 23 Bilateral Trade AgreementsUK Progresses With Trade Wins As GCC Trade Deal Looks PromisingRegional Trade Examples Of Different Countries Engaging In Trade With Dubai 220AN INTRODUCTION TO DOING BUSINESS IN DUBAI 2023Bilate
81、ral trade doubled in 2022 with plenty more room for growth In recent years,Azerbaijans image as a reliable trade partner has improved.As a result of the countrys successful,multifaceted foreign policy,Azerbaijan has established strong partnerships with both European countries,and countries of the Tu
82、rkic world,as well as with Arab states.Concerning the Middle East,Azerbaijan has a great historical and cultural connection with the Arab world.Back in 2005,a Memorandum of Understanding was signed between Azerbaijan and the League of Arab States,where Azerbaijan has observer status.In 2007,as part
83、of the official visit to Egypt,President Ilham Aliyev met with former Secretary General Amr Moussa at the headquarters of the Arab League and addressed the ambassadors of the League member countries.The Declaration was adopted following the results of the first“Forum of Cooperation and Economic Coop
84、eration of the League of Arab States Central Asia Azerbaijan”,held in Riyadh in 2014,which emphasizes the importance of resolving the past Armenian-Azerbaijani conflict based on the principles of sovereignty and territorial integrity in accordance with UN Security Council resolutions.At the same tim
85、e,the Declaration noted the importance of the Humanitarian Forum initiated by President Ilham Aliyev and held annually under his auspices.Just last year,on June 17,2022,President Ilham Aliyev received Secretary General of the Arab League Ahmed Abul Ghaith,who took part in the IX Global Baku Forum he
86、ld in Azerbaijan.Arab countries have also regularly expressed their support for the territorial integrity and sovereignty of Azerbaijan.At the same time,all member states of the Arab League are also members of the Non-Aligned Movement(NAM),which is currently chaired by Azerbaijan.Azerbaijan has ampl
87、e opportunities for cooperation with Arab countries within the framework of this organization.Today,Azerbaijans cooperation with Arab countries has entered a new stage of development.The UAE is one of Azerbaijans main partners in the Arab world.Over the last 30 years after the diplomatic relations w
88、ere established between the two countries,Azerbaijan and the UAE have been rapidly developing their cooperation in various fields and aspects.Economic relations between the two countries are at a high level.The trade turnover between the two countries constantly shows significant growth.In 2021,the
89、trade turnover between Azerbaijan and the UAE amounted to US$50.42 million.There has been close to 100%growth.Azerbaijans trade turnover with the UAE from January through November 2022 amounted to US$94.62 million.While the growth rate is impressive,the still relatively small volumes show there is m
90、uch additional capacity to develop bilateral trade ties.Azerbaijan UAE 2023 Trade and Investment Development Prospects21AN INTRODUCTION TO DOING BUSINESS IN DUBAI 2023At the same time,tourism ties between the two countries are expanding.In 2021,about 17,000 UAE citizens arrived in Azerbaijan.The num
91、ber of UAE citizens arriving in Azerbaijan in 2022 has more than doubled.The Joint Intergovernmental Commission on Economic,Trade,and Technical Cooperation between the Government of the Republic of Azerbaijan and the Government of the United Arab Emirates serves to strengthen this cooperation.To dat
92、e,eight meetings of this commission have been held.The last meeting was held in Dubai in November 2021.The final protocol signed at the end of the eighth meeting provides for strengthening cooperation in the fields of bilateral economic relations,investment,trade,green energy,agriculture,food safety
93、,innovation,logistics,tourism,healthcare,science,and also provides for the expansion of business relations between the two countries and partnerships between small and medium-sized enterprises,as well as the creation of Business Council and working groups on mutual investment promotion.Moreover,sinc
94、e 2017,a Trade Representative Office of Azerbaijan has been operating in Dubai,and since 2019,the Azerbaijan Trading House has been operating to organize the sale of local products in the UAE and the Persian Gulf countries and promote the“Made in Azerbaijan”brand in the UAE market.Currently,360 comm
95、ercial organizations with UAE investments are registered in Azerbaijan and engaged in industry,agriculture,transport,construction,trade,and services.One of the most outstanding projects implemented between Azerbaijan and the UAE is the construction of a 230 MW Garadagh solar power plant,carried out
96、by Masdar company.The investment Agreement,the Energy Purchase Agreement,and the Contract on connection to the transmission network was signed between the relevant structures of Azerbaijan and the Arab company in April 2021.According to preliminary estimates,the plant will produce 500 million kWh of
97、 electricity annually,which will save 110 million cubic meters of natural gas per year,prevent more than 200,000 tons of carbon dioxide emissions,and provide electricity to 110,000 homes.The total cost of the project is about$200 million.At the same time,the project is planned to be implemented enti
98、rely at the expense of foreign investments.On March 15,2022,Baku hosted the ceremony of laying the foundation stone of the Garadagh solar power plant.22AN INTRODUCTION TO DOING BUSINESS IN DUBAI 2023Within the framework of the special session of the Baku Energy Week held in the city of Shusha on Jun
99、e 4,2022,the Ministry of Energy of Azerbaijan and Masdar company signed several agreements on the assessment and development of solar power projects with a capacity of 1 GW,as well as onshore wind power projects with a capacity of 1 GW.An agreement on the evaluation,development,and implementation of
100、 integrated wind and green hydrogen projects with a capacity of 2 GW in the sea was also signed.Both Azerbaijan and the UAE pay great attention to sustainable economic development.Abu Dhabi Sustainable Development Week(ADTA),which starts tomorrow in the UAE,is a global initiative supported by the UA
101、E and Masdar company,aimed at accelerating sustainable development and achieving economic,social,and environmental progress.The participation of President Ilham Aliyev at this event is of particular importance.Azerbaijan approved the“2030 Agenda for Sustainable Development”at the UN Summit on Sustai
102、nable Development in 2015 and,thereby,joined the global efforts to implement the Sustainable Development Goals.At the same time,the National Coordinating Council for Sustainable Development of the Republic of Azerbaijan was established in 2016 by the decree of the President of Azerbaijan.Azerbaijans
103、 cooperation with the UAE continues to develop in various fields,starting from business and trade to green energy.Constant high-level contacts between the two countries give grounds to say that not all the potential has been explored in the relationship yet,and both Azerbaijan and the UAE are strivi
104、ng to further strengthen this cooperation.The visit of President Ilham Aliyev to the UAE this week confirms this trend.While promoting cooperation with the Western world,Azerbaijan equally pays careful attention to its partners in the Middle East.The Azerbaijani multilateral foreign policy placed Az
105、erbaijan on a platform where investors are welcome and appreciated by different countries of the East and West with the UAE a key new market destination for Azeri exporters and manufacturers looking to reach new regional markets.For example,the UAE is a member of the Greater Arab Free Trade Area Agr
106、eement(GAFTA),giving it free trade access to markets in Saudi Arabia,Kuwait,Bahrain,Qatar,Oman,Jordan,Egypt,Iraq,Lebanon,Morocco,Tunisia,Palestine,Syria,Libya,and Yemen.Additionally,within the Gulf Cooperation Council(GCC)framework,the UAE has signed Free Trade Agreements with New Zealand,Singapore,
107、and EFTA countries.Negotiations are currently underway with several countries and trade groups,including the European Union,Japan,China,Korea,Australia,Pakistan,India,Turkey,and the Mercosur member countries:Argentina,Brazil,Paraguay,and Uruguay.Azerbaijan is also a key transport hub with its Caspia
108、n Baku Port,able to ship goods from Europe,the Caucasus and Turkiye via the INSTC and directly to the UAE via Irans road and rail network to its southern Gulf Ports.Getting to market in the Middle East has never been easier for Azeri exporters.23AN INTRODUCTION TO DOING BUSINESS IN DUBAI 2023The dia
109、mond trade leads the way as trade hits US$9 billion while FTA talks get underwayDenis Manturov,Russias Industry and Trade Minister,has said that Russias trade turnover with the UAE increased by 68%to US$9 billion in 2022.He was speaking at the IDEX 2023 exhibition in Abu Dhabi.Exports from Russia to
110、 the UAE amounted to US$8.5 billion(+71%),and imports from the UAE totaled US$500 million(+6%).Manturov stated that“The partnership between our countries is on the rise,and this positive trend is reflected in the statistics of Russian-UAE trade.According to our data,in 2022,trade between Russia and
111、the UAE increased by 68%and reached$9 billion.This is a record level in the history of relations between our countries.The UAE has retained its first place among the countries of the Arab world in terms of trade with Russia.”Breaking these trade statistics down further,Thani bin Ahmed Al-Zeyoudi,the
112、 UAE Minister of State for Foreign Trade had previously stated in December 2022 that the non-oil trade between the UAE and Russia increased by 57%during the first nine months of the year and had reached US$5.5 billion.Compounded over the full 12 months of 2022,this would imply that the bulk of UAE-R
113、ussia trade is non-oil and amounts to US$7.3 billion of the US$9 billion total.Russia is one of the largest diamond producers in the world,and the UAE one of the worlds largest diamond polishing hubs for gems to be sold onto the international jewelry market.Russia also exports services in terms of t
114、ransport and IT,while energy accounts for a smaller percentage of trade.The UAE exports shisha tobacco products,broadcasting equipment and some aviation parts.The UAE is Russias largest Gulf trading partner,accounting for 55%of the total Russian-Gulf trade,with the UAE accounting for 90%of Moscows t
115、otal investments in the Arab countries.The UAE hosts more than 4,000 Russian companies,while Abu Dhabi owns 60 projects in Russia.Al-Zeyoudi had mentioned in December that he had met with Rustam Minnikhanov,the President of Tatarstan,one of the most industrialised Russian republics,to discuss ways t
116、o stimulate cooperation to broaden horizons.Tartarstan has been active in the Middle East with trade offices also opening in Iran and Turkmenistan.UAE-Russia trade may receive another boost the countries are discussing a Free Trade Agreement between the UAE and the Eurasian Economic Union(EAEU)which
117、 includes Russia in addition to Armenia,Belarus,Kazakhstan and Kyrgyzstan.UAE Russia Bilateral Trade Up 68%In 2022Dezan Shira&Associates have offices in Dubai and a presence in Russia,are familiar with the sanctions and banking related issues,and can assist Russian investors into the UAE market.Serv
118、ices provided include market and business intelligence,corporate establishment,assistance with visas and bank account openings,tax advisory,trade compliance and related matters.Please contact our Russian speaking director,Maria Kotova at for assistance.CONTACT24AN INTRODUCTION TO DOING BUSINESS IN D
119、UBAI 2023Bilateral trade Up 60%as Russian&EAEU Businesses Eye Dubai and Abu Dhabi OpportunitiesThe Eurasian Economic Union(EAEU)countries Armenia,Belarus,Kazakhstan,Kyrgyzstan and Russia have approved the commencement of talks to conclude a free trade agreement between the EAEU and the United Arab E
120、mirates(UAE).The EAEU took the decision on Friday(December 9)in Bishkek as part of the Supreme Eurasian Economic Council(SEEC),the trade bloc of the Eurasian Economic Commission has stated.During the talks,the parties are set to transfer discussions to fast track mode,and hold the first round as ear
121、ly as March next year,according to EEC Trade Minister Andrei Slepnev.“The work of the joint study group has shown that establishing a FTZ with the UAE would create conditions for growth in our supplies of more than 1,300 commodity items in both the industrial sector and the agro-industrial complex,”
122、Slepnev commented.An agreement with the UAE is under consideration as a way to strengthen the positions of EAEU exporters in the Gulf countries in the context of the Greater Eurasian Partnership and the North-South corridor,the EAEU noted.The EAEUs trade turnover with the UAE surged 60.9%over the pa
123、st year to US$6.3 billion,with imports decreasing 6.8%to around US$418 million and exports soaring 69.4%to US$5.9 billion.UAE Begins Fast Track Talks Over Eurasian Economic Union Free Trade Agreement25AN INTRODUCTION TO DOING BUSINESS IN DUBAI 2023The EAEU has currently concluded a respective FTZ ag
124、reement with Vietnam that entered into force on October 5,2016;with Iran that entered into force on October 25,2019,as an interim agreement,and talks are underway to establish a full-fledged FTZ;and with Serbia that entered into force on July 10,2021.The EAEU signed a FTZ agreement with Singapore in
125、 October 2019 that has not yet entered into force owing to EAEU countries settling respective bilateral agreements with Singapore.Negotiations on a FTZ agreement with Egypt are being completed,and negotiations with India and Indonesia have been approved.A joint group has been established in order to
126、 study the feasibility of concluding a FTZ agreement with Mongolia.The UAE is a friendly nation to Russian and other EAEU member countries with a relatively easy administrative business environment,low taxes and the ability to open bank accounts.There are direct flights between Dubai,Moscow and St.P
127、etersburg in addition to multiple connecting regional flights throughout the Middle East.26AN INTRODUCTION TO DOING BUSINESS IN DUBAI 2023US VC firms able to exit Israeli projects with Gulf investment capitalThe Abraham Accords a combination of peace and trade directives aimed at encouraging greater
128、 links between Israel and the Gulf States,are starting to deliver concrete results.The UAE became the first Gulf state to normalize relations with Israel under a US-brokered agreement,under the Abraham Accords,in 2020.A consortium led by Abu Dhabi state holding firm ADQ are in advanced negotiations
129、to acquire a controlling stake in Israeli financial firm Phoenix Group in a deal valued around 9.2 billion shekels(US$2.70 billion),the companies said in December 2022.US private investment firms Centerbridge Partners and Gallatin Point Capital,which hold 33.4%of Phoenix,are in talks to sell about 2
130、5 30%of the company to the Abu Dhabi funds for about US$680 million,the two companies said in a statement.Phoenixs chief executive and chairman,it said,would also buy 1-2%of the company“The transaction will be subject to regulatory approvals,which will include a control permit from Israels Capital M
131、arket,Insurance and Savings Authority,”Centerbridge and Gallatin said in the statement.Some 58%of Phoenixs shares would remain traded on the Tel Aviv Stock Exchange.ADQ is buying Centerbridges stake in Phoenix,in a non-binding deal,which may take months to complete to receive regulatory and sharehol
132、der approvals,according to a source familiar with the deal.The Phoenix Group is one of the largest financial firms in Israel with a market capitalisation of around US$2.8 billion,and is a provider of multi-line insurance,asset management,investment and financial services.An investor group led by Jar
133、ed Kushner tried to acquire control of this insurer several years ago for less than US$1 billion.ADQs venture capital arm DisruptAD,along with a fund managed by US-French private equity firm L Catterton,in July led a US$105 million investment round in Israels Aleph Farms,a lab-grown meat start-up fi
134、rm,another example of Israel being a center of interest for Gulf based investors looking to acquire developed businesses based on US initial seed capital financing Gulf money allowing US primary investors to exit from Israeli based,US VC financed projects.On a more regional basis,yet illustrating th
135、e same theme,Israeli wines are now available for purchase in Dubai liquor stores and selected bar and hotel outlets unthinkable two years ago.Abraham Accords Leading To UAE-Israeli InvestmentsIsrael-China Bilateral Trade and Investment OutlookIndia-Israel Bilateral Trade and Investment TrendsRELATED
136、 READING27AN INTRODUCTION TO DOING BUSINESS IN DUBAI 2023The UAE-India Closer Economic Partnership Agreement(CEPA),a trade deal signed off on February 18 last year and now at its first anniversary,has helped bilateral trade rise by 10%in the past twelve months.Dr Thani Al Zeyoudi,the UAE Minister of
137、 State for Foreign Trade,speaking on February 18,2023 said“It is a landmark agreement that has created a powerful nexus of fast-growth nations who are helping to redefine the future of trade.And it has delivered from day one.”Non-oil trade has risen to nearly US$50 billion since the CEPA was signed,
138、putting it on track to achieve its US$100 billion goal by 2030.Al Zeyoudi said that India,South Asias largest economy,is emerging as a“fourth economic pole”alongside the United States,European Union,and China.“In parallel,we are cementing our position as a middle power an innovation hub,a global mar
139、ket and a gateway to the world.As the economic centre of gravity shifts south and east,the UAE-India Cepa is creating an economic alliance that promises to help unlock the Asian future and establish the trade routes of tomorrow”he stated.The CEPA deal includes mutually enhanced market access,lower o
140、r eliminated tariff rates,simpler customs procedures,and clear regulatory guidelines.The local office of the UAE-India Business Council in Dubai was also launched on Friday.It aims to improve collaboration between the nations business sectors and help them to access each others markets and expertise
141、.Our review of what the CEPA agreement means for both the UAE and India can be read here.UAE-India Bilateral Trade Up 10%Since CEPA Trade Agreement SignedDezan Shira&Associates has offices in both Dubai and India and can assist investors from each in their chosen markets.Services provided include ma
142、rket and business intelligence research,corporate establishment,tax advisory,compliance and related matters.Please email us at for assistance.CONTACT28AN INTRODUCTION TO DOING BUSINESS IN DUBAI 2023Bilateral trade between the United Arab Emirates and Singapore has continued to grow in recent years a
143、nd was valued at S$22 billion(US$15.7 billion)in 2021.As such,the UAE is Singapores largest partner in the middle east.Supporting the increased trade between the two countries is the Gulf Cooperation Council and Singapore free trade agreement(GSFTA),which came into force in 2013.This FTA was a miles
144、tone agreement because it was the first FTA signed by the GCC and the second by Singapore with a country in the middle east,following the Singapore-Jordan FTA in 2004.UAE and Singapore trade still dominated by oilThe UAE enjoys a trade surplus mainly which is dominated by oil and its derivatives.Mor
145、e than US$11 billion worth of mineral fuels,mineral oils and products of their distillation were exported from the UAE to Singapore in 2021.Singapore is one of the most important trading and oil refining hubs in the world and has a total refining capacity of 1.5 million barrels per day.In addition,S
146、ingapore is a market leader for floating production storage and offloading(FPSO)and a number of multinational oil companies have their headquarters in the city-state.In recent years output from Singapores oil and gas industries was valued at over US$60 billion to the local economy.Further,Singaporea
147、n companies such as Trescorp and Rotary Engineering have built oil storage tanks in the UAE,specifically in Fujairah and Jebel Ali.In addition to oil and its derivatives,the UAEs other major export to Singapore is precious stones,precious metals,and natural or cultured pearls,totaling more than US$8
148、00 million in 2021.For Singapore,its main exports to the UAE include precious metals and stones(more than US$914 million)machinery and nuclear reactors(more than US$900 million),and electrical equipment(more than US$750 million).According to the UAEs Ministry of Foreign Affairs,more than 600 Singapo
149、rean companies are operating in the UAE in a variety of fields ranging from construction to information technology to infrastructure and real estate.The Singapore-UAE Comprehensive PartnershipIn 2019,Singapore and the UAE signed the Singapore-UAE Comprehensive Partnership(SUCP)which was witnessed by
150、 UAEs President(Crown Prince at the time)Sheikh Mohamed bin Zayed Al Nahyan and Singapores Prime Minister,Lee Hsien Loong.Singapore As A Gateway To Asia For UAE Based Businesses29AN INTRODUCTION TO DOING BUSINESS IN DUBAI 2023The SUCP is a framework to deepen existing areas of cooperation such as in
151、 defense,sustainable development,trade,investment,and leveraging on the GSFTA.Under the agreement,both countries will hold regular political consultations between respective foreign ministries and explore ways to enhance diplomatic cooperation.In the field of trade and investment,the UAE and Singapo
152、re will do more to promote viable commercial opportunities,particularly in the aviation and maritime sectors.Both countries will also facilitate the effective supervision of each others financial institutions and promote innovative financial services.Why should UAE businesses establish in Singapore?
153、Access to ASEANSingapore has long been a preeminent destination for setting up a regional headquarter to pursue business opportunities across ASEAN and Asia.ASEAN includes Brunei,Cambodia,Laos,Myanmar,The Philippines,Thailand,and Vietnam in addition to the huge Islamic markets of Indonesia and Malay
154、sia.ASEAN is one of the fastest-growing economic blocs in the world and is projected to have the fourth-largest economy by 2030.By then,domestic consumption is expected to double to US$4 trillion and a population of over 700 million people and 575 million of which will be internet users.Over the nex
155、t decade,ASEAN is also expected to add 140 million consumers.Access to RCEPSingapore,as a member of ASEAN,is also a member of the Regional Comprehensive Economic Partnership(RCEP)Free Trade Agreement.In addition to the ASEAN nations,RCEP also includes Australia,New Zealand,China,Japan,and South Kore
156、a.In terms of adding value,it allows the use of lower cost countries(such as some of the ASEAN nations)the ability to finish products from the more expensive brands in Australia,Japan and South Korea while retaining the Made in Japan(or similar)styled labels and provides manufacturing cost savings w
157、hen producing premium brands,and access to this gigantic region.UAE businesses would need to establish a subsidiary in one of the RCEP countries to do so but having a subsidiary in a relatively low-cost jurisdiction such as Cambodia,and carry out finishing and related services there would also give
158、free trade market access to premium markets in Japan,South Korea,and Australa.Business friendly policiesSingapore is globally renowned as a business-friendly destination that offers a stable socio-political environment,free market economy,highly efficient infrastructure,and an attractive tax regime.
159、As such,a primary advantage of Singapore is its ability to act as a centerpiece for the holding and management of regional assets.Holding companies are a vital component of any international expansion strategy,and Singapore offers investors a stable environment from which to administer operations in
160、 more speculative markets in Asia.The city-state has already 30AN INTRODUCTION TO DOING BUSINESS IN DUBAI 2023attracted more than 37,000 international companies and 7,000 multinational companies that utilize Singapore as their regional headquarters.A strong free trade agreement networkDespite region
161、al players maintaining strong FTA networks,they are not as extensive as Singapores.Due to these factors,the country will continue to be the default location for businesses seeking to expand into Southeast Asia and neighboring regions.The countrys 14 bilateral and 13 regional FTAs include some of the
162、 largest combined trade agreements in the ASEAN-China,ASEAN-India,and ASEAN-Hong Kong trade blocs providing Singapore-based businesses with access to preferential markets,free or reduced import tariffs,as well as enhanced intellectual property regulations.There are two types of FTAs:bilateral(agreem
163、ents between Singapore and a single trading partner)and regional(signed between Singapore and a group of trading partners).Dezan Shira&Associates maintain offices in both Dubai and Singapore,are familiar with the various tax treaties between them and can assist investors from both countries in their
164、 respective markets.For assistance please visit us at or email CONTACT31AN INTRODUCTION TO DOING BUSINESS IN DUBAI 2023Over the past 20 years,China has become increasingly engaged with the six Gulf Cooperation Council(GCC)members Bahrain,Kuwait,Oman,Qatar,Saudi Arabia,and the United Arab Emirates(UA
165、E).While Beijings interest in the region may have been initially driven by energy needs,the relationship is now diversifying.China has become a significant partner for GCC states in several fields,such as infrastructure investment,trade in goods and services,digital technology,and defense.China has
166、emerged in recent decades as a significant trading partner for many Cooperation Council(GCC)states,most notably Saudi Arabia and the United Arab Emirates.Most of the GCC governments depend on energy trade to support the diversification of their economies,while China requires the Gulf hydrocarbons to
167、 power its economy.Relations between China and the GCC In the second half of the 20th century,when Deng Xiaoping(197889)started his modernization drive and looked to the Middle East(West Asia)as the only place that could provide enormous quantities of oil and gas,China became interested in the regio
168、n.By the end of 1993,Beijing had established diplomatic relations with all major Arab states.Fast forward to the turn of the century,and China was exporting a wide range of goods,stepping up its investments,constructing infrastructure,and transferring technology,while importing half of its energy ne
169、eds from the region.Beijing has emphasized the strategic importance of its economic ties with the Arab Gulf states on numerous occasions.During his official tour in 2022 to the region,Chinese Foreign Minister Wang Yi emphasized that Beijing wants to“inject new momentum”into improving ties with the G
170、CC and“accelerate”discussions on the creation of a free trade area.China-Arab States Cooperation Forum(CASCF)Beijing established the China-Arab States Cooperation Forum(CASCF)in 2004 and the uptick in commercial engagement outcome was noticeable:trade between China and the Arab League nations increa
171、sed from US$36.7 billion in 2004 to US$145.4 billion in 2010.The cooperation was taken to a further level when,in March 2012,China and the Arab countries established the Higher Council for Energy Cooperation.Chinese and Arab governments applauded the accomplishments of their first 10 years of collab
172、oration(20042014)during the Sixth CASCF in 2014,jointly hosted by China and Morocco.Common objectives for the future ten years(2014-2024)are to broaden the areas of collaboration,boost cross-investments,and improve communication between civic societies.Chinas Engagement With The Gulf Cooperation Cou
173、ncil:Latest UpdatesIdentify the Optimal Investment Destination with Cross Country Competitiveness BenchmarkingRELATED SERVICES32AN INTRODUCTION TO DOING BUSINESS IN DUBAI 2023China-Gulf states economic ties Energy The heart of China-GCC collaboration remains Chinese energy needs.Saudi Arabia provide
174、d 17 percent of Chinas oil imports in 2021,making it the latters top crude oil supplier.Qatar,a major natural gas exporter to China,signed several long-term contracts with Chinese firms in December 2021 after placing its first order for vessels carrying Chinese liquefied natural gas(LNG)for US$762 m
175、illion in October of the same year.Similarly,a huge portion of oil exports from Kuwait,Iraq,the United Arab Emirates(UAE),and Oman are directed to China.In the GCC economies,where the oil and gas industry still generates the bulk of public sector revenue,there has been a persistent lack of economic
176、diversification,in turn resulting in an indirect fiscal dependence on big energy users like China.However,the distribution of this indirect dependence varies considerably across the region.In the first half of 2021,China bought around 83 percent of Omans total oil exports,but other GCC states do bus
177、iness with a variety of trade partners.Moreover,while Asia accounts for a large portion of the demand for crude oil from the Gulf,China is not the only partner in the equation.The third largest Arab crude oil exporter after Saudi Arabia and Iraq the UAE delivered more oil to Japan than any other nat
178、ion in 2020.In 2021,the International Energy Agency(IEA)predicted that,over the next two decades,India will account for the largest portion of the increase in global energy consumption.About 85 percent of Indias oil demands and 50 percent of its natural gas needs are imported,with oil and gas likely
179、 to continue to satisfy the baseload of the countrys energy demand in the near future.Other sectors China also appears destined to play a significant role in the continued growth of the GCCs non-oil industries.There is great synergy between China and GCC governments on anticipated development areas
180、like tourism,telecommunications,renewable energy,smart cities,artificial intelligence,and technology-oriented businesses.The relatively young population in the Arab Gulf will steadily be exposed to a growing Chinese technology presence,from social networking applications to digital payment platforms
181、.Beyond the GCC,Chinese influence is becoming more noticeable in the Gulfs financial and educational sectors.The Iraqi government and two Chinese businesses entered into agreements in December 2021 to construct 1,000 schools over a two-year period.Chinese initiatives to reduce educational disparitie
182、s in Iraq,in exchange for payment in oil products,have the potential to significantly influence regional socioeconomic trends.Within the GCC,sovereign wealth funds are promoting closer ties:in 2015,a US$10 billion UAE-China Joint Investment Fund was established by Mubadala in Abu Dhabi,China Develop
183、ment 33AN INTRODUCTION TO DOING BUSINESS IN DUBAI 2023Bank Capital,and the Chinese State Administration of Foreign Exchange.In recent years,officials from the GCC sovereign wealth funds have pushed to focus more of their portfolios on Asian economies,especially Chinas.China-Gulf states:investment an
184、d trade The China Global Investment Tracker by the American Enterprise Institute shows a persistent Chinese interest in investing in Gulf economies.Chinese investments and construction projects totaled US$43.47 billion in Saudi Arabia,US$36.16 billion in the UAE,US$30.05 billion in Iraq,US$11.75 bil
185、lion in Kuwait,US$7.8 billion in Qatar,US$6.62 billion in Oman,and US$1.42 billion in Bahrain between 2005 and 2021.Chinese investments are dispersed throughout the region in a manner that is roughly inversely correlated to the gross domestic product of each nation.China has swiftly overtaken Saudi
186、Arabia as the countrys main commercial partner,with total bilateral trade rising from US$42.4 billion in 2010 to US$76 billion in 2019.As of the third quarter of 2021,China continued to be Saudi Arabias biggest import and export partner;nevertheless,the value of imports and exports has not increased
187、 consistently during the previous 10 years.About 80 percent of Saudi Arabias exports to China in 2019 were made up of minerals,including crude oil and petroleum gas,showing that energy prices are a significant factor in shifting trade flow values.Special Economic Zones Trade and investment flow betw
188、een China and the GCC are supported by several policy initiatives,including special economic zones.The China-UAE Industrial Capacity Cooperation Demonstration Zone,for instance,is in the Khalifa Industrial Zone in Abu Dhabi and is being built by the Jiangsu Overseas Cooperation and Investment Compan
189、y under the direction of the China National Development and Reform Commission.Not every zone plan has been successful.For example,Chinese promises for a US$10 billion joint investment park in the Special Economic Zone in Duqm,Oman,have taken a long time to materialize.The role of the Gulf states in
190、the Belt and Road Initiative The Gulf countries position on Chinas Belt and Road Initiative(BRI)has typically been centered on regional partners,building projects,and energy,in addition to being essential nexus locations for commerce in emerging countries.From the standpoint of the Gulf region,the B
191、RI represents a crucial support connection for allies like Pakistan and Egypt.Through the BRI,China has been instrumental in the development of the Suez Canal Area Development Project in Egypt as well as the Gwadar port and pipeline project in Pakistan.Considering the current national digital plans
192、in GCC countries,the BRIs Digital Silk Road is incredibly pertinent to the area.Digital infrastructure initiatives for Chinese companies continue Dezan Shira&Associates maintain offices in Dubai and have a significant,14 office presence in China and Hong Kong.We are familiar with the various tax tre
193、aties between the UAE,China and Hong Kong and can assist investors from both countries in their respective markets.For assistance,please visit us at or email CONTACT34AN INTRODUCTION TO DOING BUSINESS IN DUBAI 2023to be feasible even during times of resource shortages and delivery-related difficulti
194、es due to pandemic-related supply chain delays and lockdowns.Long before the COVID-19 pandemic broke out,Gulf countries began to see the intensification of technology-based cooperation to diversify their industries and build knowledge economies.In the years to come,technology-based cooperation is ex
195、pected to stay prioritized.China-Gulf states future trade prospects It is no secret that China would like to reach an FTA with the GCC.This kind of deal would enable China to engage with the region under preferred trade status.Moreover,a Chinese-Gulf FTA would be a significant boost for the area.Fiv
196、e rounds of negotiations between China and the GCC have so far resulted in agreements on most trade-related issues.The focus of these negotiations has been on energy-related products,though not exclusively.Other products,particularly those related to agriculture,fruits,spices,building materials,and
197、lastly,trade in services,are being taken into consideration.From a financial perspective,the economic power of the GCC countries,which control sovereign wealth funds worth more than US$2 trillion,is important to Chinas global financial system,as in the GCC foreign currency markets,particularly in th
198、e UAE and Qatar,the RMB has a high standing.Several banks in Dubai issued foreign bonds in RMB in 2021.Finally,many of the GCC countries plan to align their national economic development programs with Chinese projects,particularly those sustained through the BRI.These include Saudi Arabias 2030 Visi
199、on and Kuwaits 2035 Vision.Chinas President Xi Jinping flanked by Sheikh Mohamed bin Zayed Al Nahyan Crown Prince of Abu Dhabi,left,and Sheikh Mohammed bin Rashid Al Maktoum,ruler of Dubai and Prime Minister of the UAE.35AN INTRODUCTION TO DOING BUSINESS IN DUBAI 2023Non-Oil UAE-China Imports&Export
200、s Also Up To US$32 Billion in 2022 YTDThe trade diversification policies outlined by the Emirates several years ago have been paying off,as non-oil trade between the UAE and China increased by 78.5%in the nine years from 2012 to 2021,reaching AED223.5 billion(US$60.85 billion)for 2021.According to f
201、igures from the Federal Competitiveness and Statistics Centre(FCSC),during the 2012-2021 period,the total value of non-oil trade exceeded AED1.72 trillion(US$468.28 billion).The FCSCs figures also showed that the non-oil trade exchange between the UAE and China in the first half of 2022 reached AED1
202、18.4 billion(US$32 billion),consisting of imports valued at AED102.7 billion,non-oil exports valued at AED5.5 billion,and re-exports valued at AED9.8 billion.Telecommunications devices have topped the list of goods imported from China over the past year,amounting to AED70 billion,followed by data pr
203、ocessing equipment at AED23.6 billion,medical vaccines at AED4.1 billion,display screens at AED2.5 billion,and headphones and amplifiers at AED2.5 billion.In the list of top five goods exported to China,ethylene polymers came in the first place with AED4 billion,followed by propylene polymers with A
204、ED1.9 billion,rapeseed oil with AED1.4 billion,copper scraps with AED600 million,and residues of fatty oil extraction with AED570 million.UAE-China Non-Oil Trade Up 78.5%UAE exporters interested in the China market may contact Dezan Shira&Associates local Dubai office at .The firm has 30 years of ex
205、perience of assisting foreign investors into the China market and has 13 offices throughout the country.Their 2023 Doing Business in China guide may be downloaded on a complimentary basis here.CONTACT36AN INTRODUCTION TO DOING BUSINESS IN DUBAI 2023The UAE and South Korea have signed 23 trade and in
206、vestment agreements to bring businesses in the two countries closer together and mutually benefit from each others expertise.Attending the UAE-Korea Business Forum in Abu Dhabi,Yoon Suk-yeol,President of the Republic of Korea,encouraged Emirati investors to benefit from Korean investment opportuniti
207、es and expertise in vital sectors,affirming his countrys commitment to enhancing economic cooperation and partnerships with the UAE,its strategic partner in the Middle East.The forum,attended by Abdullah bin Touq Al Marri,Minister of Economy;Ahmed Ali Al Sayegh,Minister of State;Abdulla Mohamed Al M
208、azrui,Chairman of UAE Chambers and Abu Dhabi Chamber,also included presentations by several officials from both countries on significant investment opportunities in several vital sectors,as well as bilateral meetings.Al Marri stated:“The UAE and Korea have always shared warm and friendly ties,and th
209、e vitality of our relationship is reflected in the increased trade volume between our countries,the rise in investment flows and the movement of people,professionals and entrepreneurs.For example,in 2022,there was a 20.4%growth in the volume of non-oil trade exchanges between the two countries durin
210、g the first nine months of the year compared to the same period in 2021,reaching almost US$4 billion.“At the same time,UAEs non-oil exports to Korea grew from US$450 million in the first nine months of 2021 to$560 million in the first nine months of 2022 an impressive 24%growth,while re-exports witn
211、essed 14%growth.”“The Korea-UAE Business Forum is an excellent opportunity to discuss the strengthening of the existing economic partnership between the UAE and South Korea in the coming stage,at a time when the global economy is undergoing important changes and the UAE is accelerating its transitio
212、n to a new economic model,”he added.In his opening speech,Abdulla Mohamed Al Mazrui said:“The forum represents an exceptional opportunity for participants from the public and private sectors to exchange experiences,explore opportunities for cooperation,and build strategic partnerships in sectors of
213、common interest.”He also highlighted the two countries plans to shape a better future and build upon the unique achievements in various vital economic sectors,including energy,infrastructure,biology,medicine,space,defence,and future technology.”South Korea is a member of the RCEP Free Trade Agreemen
214、t which also includes Australia,Brunei Darussalam,Cambodia,China,Indonesia,Japan,Laos,Malaysia,New Zealand,Singapore,Thailand and Vietnam.The UAE is a member of the Greater Arab Free Trade Area Agreement(GAFTA),giving it free trade access to markets in Saudi Arabia,Kuwait,Bahrain,Qatar,Oman,Jordan,E
215、gypt,Iraq,UAE,South Korea Sign 23 Bilateral Trade Agreements37AN INTRODUCTION TO DOING BUSINESS IN DUBAI 2023Lebanon,Morocco,Tunisia,Palestine,Syria,Libya,and Yemen.Additionally,within the Gulf Cooperation Council(GCC)framework,the UAE has signed Free Trade Agreements with New Zealand,Singapore,and
216、EFTA countries.Negotiations are currently underway with several countries and trade groups,including the European Union,Japan,China,Korea,Australia,Pakistan,India,Turkey,and the Mercosur member countries(Argentina,Brazil,Paraguay and Uruguay).38AN INTRODUCTION TO DOING BUSINESS IN DUBAI 2023UK Progr
217、esses With Trade Wins As GCC Trade Deal Looks Promising The UK has secured some trade concessions prior to the third round of negotiations with the Gulf Cooperation Council(GCC)as the British look towards securing a free trade or similar cooperation agreement.The GCC includes Bahrain,Kuwait,Oman,Qat
218、ar,Saudi Arabia and the United Arab Emirates.As negotiators sat down for talks in the Saudi capital Riyadh,Britains Business and Trade Secretary Kemi Badenoch welcomed the early progress in trade relations with Gulf nations as hopes of a 1.6 billion pact increase.Saudi Arabia has agreed to remove a
219、trade barrier and open up the kingdoms market to British honey firms in a move valued at 6 million over five years to UK businesses.Women entrepreneurs in the UAE are the focus of a UK trade mission to Dubai,which aims to help businesswomen build connections with British companies.Ms Badenoch painte
220、d a positive outlook for negotiations with the GCC,nine months after meetings began.She said such a treaty would support British manufacturers and improve the prospects of the green energy industry.“A free trade deal with the Gulf will strengthen supply chains and grow our food and drink,manufacturi
221、ng and renewable energy sectors.39AN INTRODUCTION TO DOING BUSINESS IN DUBAI 2023British officials in trade,animal and plant health,and food worked with the Saudi Food and Drug Authority to establish a new system which would allow UK producers to register their intention to export to the kingdom.Pro
222、gress has also been made to drive exports to Saudi Arabia for UK education and sports companies.UK Companies Can Use the UAE To Access IndiaCurrent UK-GCC trade is running at 33 billion annually and the bloc as a whole is equivalent to the UKs fourth largest export market.A trade deal is expected to
223、 increase this by about 16%.The region also offers access and would deepen understanding and access to additional regional markets such as India,which the GCC also has a Free Trade Agreement with.UK companies based in for example in Dubai have the opportunity to access such agreements if they have a
224、 subsidiary in the country or within the GCC in general.The United Kingdoms Prince(now King)Charles on a visit to the Sheikh Zayed Grand Mosque in 2016.Dezan Shira&Associates assist British companies in the GCC and have an office in Dubai.We provide market research and business intelligence services
225、,corporate establishment,tax advisory and trade related services and have over 30 years experience in Asia.Please visit us at and for assistance kindly contact Maria Kotova at .CONTACT40AN INTRODUCTION TO DOING BUSINESS IN DUBAI 2023Green Channel For Food Imports Into Dubai Now OperationalForeign In
226、vestment Opportunities In the UAE E-Commerce MarketDubai Becomes Global Hub For Rough&Polished Diamond TradeDubai Cancels 30%Alcohol TaxIndian EV MNC To Test Market UAE Manufacturing For Electric Powered Buses And Commercial VehiclesNew Dubai Urban Tech District To Help Create Future Smart CitiesCry
227、ptocurrency To Play Major Role In UAE Global Trade Minister of Foreign TradeDubai Expecting A Busy 2023 In Developing An International IPO MarketIndustrial Sectors To Watch 341AN INTRODUCTION TO DOING BUSINESS IN DUBAI 2023Regional consumer exporters to Dubai need to apply for green channel licensin
228、g A new Green Channel for food imports that is aimed to make groceries arrive faster and cheaper in Dubai markets has started receiving shipments,according to Sultan Ali Al Taher,director of the Dubai Food Safety Department.The Green Channel is an initiative of the Dubai Emirate and was announced du
229、ring the Dubai International Food Safety Conference in November 2022.“We received our first shipment through the Green Channel last month”Al Taher stated,also saying that the Food Safety department now has a selected number of companies on the list for Green Channel,based on their Dubai trade histor
230、y over the previous three years.“All companies are evaluated based on their history in our system,and food safety and quality in their respective countries,”he pointed out.Dubai is in the first phase of the initiative and a few companies have already benefited greatly from this initiative,with more
231、companies expected to join in the coming months.The Green Channel uses Artificial Intelligence(AI)and machine learning techniques to ensure safe and quality foods from reputed companies and countries of origin are released directly to the market without being delayed at the Dubai ports.This will bri
232、ng down import time and operational cost,thereby reducing the cost of grocery items imported to Dubai.The move is also expected to push food importing businesses to achieve higher safety standards to enter the Green Channel.Risk assessmentThe Dubai authorities said the Green Channel utilises smart t
233、echnology to rapidly analyse the chemical,microbial,and physical risk assessment data of food products and identify any potential risks associated with their country of origin.By doing so,the initiative enables Dubai to quickly approve the release of shipments that are compliant.Meanwhile,it also pr
234、events the entry of non-compliant food items that do not adhere to the standards and regulations of the countrys food authorities.The initiative seeks to establish a global blueprint for a secure digital food system that enhances food safety,promotes food security,and improves quality of life.It als
235、o aims to reduce inspection-related burdens and expedite the release of imported food using AI and machine learning technologies.This builds on previous successful efforts to conduct research,develop innovative technologies,and engage in digital transformation through data analysis.Al Taher said pri
236、marily low-risk foods are given import approval through the Green Channel.Green Channel For Food Imports Into Dubai Now Operational42AN INTRODUCTION TO DOING BUSINESS IN DUBAI 2023Impact of food safetyDawoud Al Hajri,the Director-General of Dubai Food Safety,said the Emirates participation in the sc
237、heme aims to educate food product merchants and importers on the latest quality and safety procedures,as well as how to implement them.“Additionally,we are highlighting important services and initiatives we offer in Dubai,a crucial hub for the food industry in both the regional and global economy.”A
238、l Hajri pointed out that ensuring the safety of food is crucial because it has a direct impact on peoples health and Dubais reputation.“Our top priority is to ensure that all food establishments comply with standards.Dubai is dedicated to enhancing trust in food safety by utilising integrated ecosys
239、tems and implementing the best international and local practices.We also establish and employ uniform monitoring procedures for imported food institutions in Dubai to guarantee the safety of their products and activities.Additionally,we strive to raise awareness of food safety and uphold the highest
240、 food hygiene standards in the city.”Regional exporters looking at the Dubai market for food supplies may contact Dezan Shira&Associates regional office for assistance and advise on Green Channel applications.Please email .CONTACT43AN INTRODUCTION TO DOING BUSINESS IN DUBAI 2023Market value expected
241、 to hit US$9.2 Billion by 2026Analysis from the Dubai Chamber of Commerce has stated that the value of the UAE e-commerce market is expected to reach US$9.2 billion by 2026,while the sectors share of total retail sales in the UAE is projected to increase by 12.6%the same year.The study,based on data
242、 from Euromonitor highlighted several factors boosting e-commerce activity in the UAE,as well as high-potential growth opportunities.We highlight these market developments.The Domestic MarketTotal e-commerce sales in the UAE recorded remarkable growth in 2021,reaching US$4.8 billion during the year,
243、compared to US$2.6 billion in 2019,the year prior to covid.Mobile devices,such as Smartphones and tablets,accounted for a majority of e-commerce transactions last year as the mobile retail market reached US$2.6 billion,accounting for 44%of the total e-commerce market value.Mobile retail sales are ex
244、pected to record a compound annual growth rate of 15.6%over the 2022-2026 period to reach US$4.6 billion.The study shows that more than one third of consumers in the UAE bought a product or service using their smartphone at least once a week above the global average of weekly online purchases.Among
245、the key trends supporting the strong growth in mobile e-commerce transactions is the availability of apps,which has increased pricing transparency,the study said,adding that the growing number of loyalty rewards programmes offered by online retailers also drove up demand for online shopping in the U
246、AE.Shoppers in the UAE,according to the report,preferred local retail websites to overseas retailers.In 2021,domestic e-commerce websites accounted on average for 73%of the total sales while foreign websites received only a 27%share.Foreign E-Commerce Platforms Expected To Increase Market ShareThe r
247、eport stated that despite the clear preference of buyers utilising domestic websites,increased competition from foreign e-retailers is projected in the future.Between 2022 and 2026,foreign e-commerce platforms are expected to grow by 19.2%,which would mark a 34%gain in market share.The UAEs e-commer
248、ce landscape has evolved and grown considerably in recent years,through major investments,acquisitions and partnerships with global companies.Foreign Investment Opportunities In the UAE E-Commerce Market44AN INTRODUCTION TO DOING BUSINESS IN DUBAI 2023Investments in the sector have significantly cha
249、nged the dynamics of the UAE e-commerce market,with the main impact being a downward pressure on prices due to increased competition and supply.Consumer TrendsThe improvement and modernisation of payment systems and services was identified as another key factor that has boosted demand and business a
250、ctivity within the UAEs e-commerce sector.Consumer electronics in the UAE constituted the top-selling online products in 2021 with a 34%share,consisting mainly of smartphones,phone accessories,computer accessories,tablets,computers and TVs.Apparel and footwear accounted for 31%,food and beverages 12
251、%,media products 8%,personal accessories 5.8%,and consumer appliances 3.3%.The relatively high shares of products purchased online indicate increased competition between online channels and traditional channels for electronics,apparel,accessories,cosmetics,as well as food and beverages.Among the mai
252、n product categories offering the most untapped potential in the e-commerce market in 2022 are:Apparel and Footwear,Personal Accessories,Beauty and Personal Care Home&Gardening.Growth momentum within the UAEs e-commerce sector is expected to continue,supported by rising demand for online shopping,an
253、d steady investment flows in the sectors infrastructure.Establishing A Representative Office In The UAERELATED READINGDezan Shira&Associates have a presence in Dubai and can assist foreign investors into the local UAE market.Please contact Maria Kotova at for assistance.CONTACT45AN INTRODUCTION TO D
254、OING BUSINESS IN DUBAI 2023Dubai,through its Dubai Multi Commodities Centre(DMCC),a Free Trade Zone in the Emirate,has reported a 17%year-on-year increase in the value of diamond trade in 2022,worth a total of US$37.4 billion combined for rough and polished diamonds.This included a 42%rise in polish
255、ed diamonds and a 7%rise in rough diamonds.These soaring figures are evidence of the rapid rise of Dubai as the worlds leading hub for rough and polished diamonds,according to media statements made at the International Colored Gemstone Association(ICA)Congress 2023 at Almas Conference Centre in Duba
256、i.The ICA is one of the top industry bodies for the global colored gemstone industry.It comprises over 500 gem industry leaders,including miners,manufacturers,suppliers,retailers,trade associations,and others committed to promoting coloured gemstones.Dubai is now looking to increase support and add
257、further value to the colored gemstone industry.This includes gemstones like emeralds,rubies,and sapphires mined,manufactured,and sold worldwide.Ahmed bin Sulayem,Executive Chairman and Chief Executive Officer of DMCC stated“We could not have chosen a better moment to reveal these figures,which furth
258、er proves Dubais monumental rise in the diamond trade.DMCC is growing and maturing fast,and it goes without saying that we want to replicate our success with diamonds to other precious stones and commodities.The colored gemstone industry is exciting given the strong growing global demand,and we want
259、 to firmly position Dubai centrally in that trajectory.We have seen this first hand with the number of emerald,ruby,and sapphire tenders held at our Dubai Diamond Exchange.DMCC has a proven track record of boosting commodities trade from nearly zero to multi-billion dollar figures,and as such,I am c
260、onfident that the future of the coloured gemstones industry is in,and through,Dubai.”Dubai Becomes Global Hub For Rough&Polished Diamond Trade46AN INTRODUCTION TO DOING BUSINESS IN DUBAI 2023The Dubai Emirate has ended a 30%tax on alcoholic drinks while making obligatory liquor licenses free to obta
261、in.The initiative is apparently aimed at boosting tourism.However,a 5%VAT rate still applies.Previously,alcohol had been available at expensive costs either at government sanctioned hotels and bars,or at special off-licences.At the latter,individuals could purchase alcohol but had to register includ
262、ing provision of passports.The initiative came into force on Sunday(January 1)and will last during 2023 with a decision to make it permanent or not made at the year end.Much will depend on the behaviour of Western expatriates and holidaymakers during the period.Monica Malik,Chief Economist of the Ab
263、u Dhabi Commercial Bank,noted that the move“should further support the tourism and hospitality sectors,”adding that it“should also be welcomed by many Dubai residents,who are predominantly expatriates.”Almost 90%of the population of the United Arab Emirates,where Dubai is the biggest city,are Wester
264、n expatriates.The decision to cut taxes on alcoholic drinks comes after the Gulf country approved a new tourism strategy in November in a bid to boost its competitiveness and attract 100 billion dirham(US$27 billion)in additional investment by 2031.Dubai Cancels 30%Alcohol TaxEstablishing A Represen
265、tative Office In The UAERELATED READING47AN INTRODUCTION TO DOING BUSINESS IN DUBAI 2023Switch Mobility changing from fuel to EV based vehicles with production in Ras Al Khaimah.If anywhere has sunshine and can generate electricity from solar power,it is the United Arab Emirates one reason why India
266、s Mumbai based Hinduja Group will start testing demand in the UAE for electric-powered buses and light commercial vehicles.These are likely to be based on its existing liquid fuel-based models.Dheeraj Hinduja,the Executive Chairman of Hinduja has stated that various government incentives that are av
267、ailable for a transition to electric power will help.Hinduja,who have factories in both India and the UK,already have an order book for 5,000 electric buses and around 2,500 light vehicles.Hinduja said that“The UAE would be a great market to get into for the EV range whether that means shipping our
268、vehicles from India or the UK needs to be tested.All of that will depend on the price points,the demand,and so on.If all goes well,we will have an assembling facility in the UAE.”If so,that is likely to see Hinduja site an assembly line at its existing Ras Al Khaimah operations,in the neighboring Em
269、irate,an example of how Dubai acts as a focal business and investment point and can introduce investments into other Emirates with a lower manufacturing cost base.The Ras Al Khaimah plant also makes Ashok Leyland branded buses and other vehicles.Hindujas conversion to EV production occurred when mer
270、ging the electric vehicle operations of Ashok Leyland with that of UK-based Optare,which the Group had acquired.That business has been rebranded as Switch Mobility.The Ras Al Khaimah facility is already operating at full capacity,bolstered by the latest win for 1,400 fuel-powered buses.“Ashok Leylan
271、d is the brand of first choice for local and Gulf-wide school and staff transport needs”said Hinduja.“If we do build an EV(assembly)facility in the UAE,it will still be in Ras Al Khaimah.That makes better sense for us because we have an extensive vendor base supplying our existing operations.”“With
272、the Ras Al Khaimah facility,we are very much part of the Make in UAE initiative.We are open to all the support the government can give us in expanding the UAEs green agenda.This is what we hope to achieve by creating that demand for electric-powered buses.The UAE is definitely a place where we can k
273、eep expanding.”It also means that India is outsourcing manufacturing to resell back to India.“India continues to grow at 6-7%and that cannot be overlooked”said Hinduja.“We will keep parking investments in core sectors.”Indian EV MNC To Test Market UAE Manufacturing For Electric Powered Buses And Com
274、mercial Vehicles48AN INTRODUCTION TO DOING BUSINESS IN DUBAI 2023The experience of Hinduja makes a great case study into how Asian businesses can utilize the UAE as a testing ground for new technologies.The UAE government provides investment incentives in such schemes,and these,when coupled with dom
275、estic incentives(in this case from the government of India)for manufacturers to switch to EV or clean fuel alternatives can see interesting collaborations and partnerships emerge,in this case within the Ras Al Khaimah emirate where labor is less expensive,and port facilities provide additional Middl
276、e Eastern and South Asian market access.Recent trade agreements are also paving the way for astute investors to commence operations.How Businesses Are Expected to Gain from the India-UAE CEPAIndias Trade and Investment Ties with the Gulf Cooperation Council(GCC)RELATED READING49AN INTRODUCTION TO DO
277、ING BUSINESS IN DUBAI 2023Opportunities for International Architectural and Related Businesses in The UAE Dubai is planning to open a new urban tech district at the Creekside at Al Jaddaf,aiming to create over 4,000 jobs in urban technologies,education,and training,while also welcoming entrepreneurs
278、 to encourage a collaborative tech ecosystem.The district will provide facilities for training,research,conferences,business incubations,shared-desk spaces,and dedicated offices.It will also be home to an urban tech institute,which hopes to drive innovation by investing in applied research and by en
279、abling public-private partnerships.International architects and related businesses should be considering getting involved in the project as there are plenty of regional investment opportunities in the Middle East and beyond looking at such technologies and developments.The concept behind the develop
280、ment revolves around the idea that innovation and research centers such as these can inform the evolution of future cities.The tech-enabled urban district seeks to provide solutions to challenges in food availability,energy production,water harvesting,and zero-waste management.It also aims to develo
281、p more equitable living conditions by integrating technologies in the planning of cities,while also addressing environmental challenges and the threats of climate change.The development is planned to become a net zero-carbon district,while also helping partner businesses reduce their carbon footprin
282、t.Each business in the district is expected to enlist in a tenant zero carbon engagement program,which hopes to tackle emissions by raising collective awareness and optimizing operational performance.The design of the buildings uses passive and active strategies for reducing the overall energy deman
283、d of the building.To provide occupational efficiency,safety,and security,the indoor lighting and temperature are automatically adjusted by sensors that monitor variables like the number of occupants in a room,time of day,and exterior weather.The interior spaces also feature biophilic design to promo
284、te well-being and improve the office environment.The district provides a wide range of flexible working areas,all of which integrate greenery and natural elements as a proven way to increase the creativity,productivity,and happiness of employees.Breakout spaces with trees and landscaped gardens are
285、also integrated into the design of the district.The integrated Urban Tech Institute further enhances this collaborative system by promoting networking events,conferences,workshops,lectures,and exhibitions.Overall,the Urban Tech District aims to provide the necessary support for innovators and entrep
286、reneurs to develop more liveable and resilient cities.Across the world,innovation campuses are tackling various themes and challenges of urban environments.In Chicago,OMA recently unveiled the design of the new headquarters for the Discovery Partners Institute,which offers spaces for offices,laborat
287、ories,and classrooms New Dubai Urban Tech District To Help Create Future Smart Cities50AN INTRODUCTION TO DOING BUSINESS IN DUBAI 2023where the students of the University of Illinois System can meet industry professionals.BIG also won a competition to design a Culinary Research and Innovation Hub in
288、 San Sebastian,while Snhetta is designing the central building for Fords Research&Engineering Campus in Dearborn,Michigan.Dezan Shira&Associates have a long track record in assisting architectural and design businesses establish operations in Asia.For assistance with establishing a presence in Dubai
289、,please contact Maria Kotova at .Establishing A Representative Office In The UAERELATED READING51AN INTRODUCTION TO DOING BUSINESS IN DUBAI 2023Thani Al-Zeyoudi,the UAEs Minister of State for Foreign Trade declared that crypto would have a crucial role in UAEs global trade,speaking at the World Econ
290、omic Forums(WEF)annual summit at Davos.Notably,Al-Zeyoudi said that the UAE seeks to have significant regulations on crypto to promote further growth in the already flourishing crypto industry.Al-Zeyoudi said the Emirates would ensure global governance of crypto:“Crypto will play a major role for UA
291、E trade going forwardThe most important thing is that we ensure global governance when it comes to cryptocurrencies and crypto companies.”Such moves could well position the UAE as a leading global exchange hub for Cryptocurrency transactions,especially as a slow fracturing of trust in the global SWI
292、FT payments network is occurring as the United States has begun weaponizing the Dollar and Euro.Al-Zeyuodis remarks follow on from those made last week by the UAEs Sheikh Mohammed bin Rashid Al Maktoum,the Prime Minister and ruler of the United Arab Emirates,who announced that the country has create
293、d a new law regarding crypto ensuring“much warranted international standards for crypto governance”.Following the announcement,Al-Zeyoudi reiterated that the Emirates have implemented crypto regulations with an intention to transform the Gulf country into a fully established crypto hub,with crypto-f
294、riendly policies,saying that“We started attracting some of the companies to the country with the aim that well build together the right governance and legal system,which are needed.”The UAE statement of intent would curtail potential Western sanctions on the development of potential crypto exchanges
295、 springing up in financial centers in New York,London,Frankfurt and Tokyo and serving as conduits for sanctioned countries to use them as transactional hubs.Instead,the UAE could develop as a global,digital transactional center as Western institutions shy away under US pressure to maintain Dollar he
296、gemony and support for its own trade finance policies including the upholding of sanctions.It may not all be plain sailing.The UAEs Minister of State for Artificial Intelligence and the Digital Economy,Omar Sultan Al Olama,also present at the World Economic Forum,said that the fall of the crypto fir
297、m FTX has been a major concern.However,he added that the UAE still aspires to become a crypto hub,commenting that global crypto companies“calling the UAE home is definitely a positive thing”.Dezan Shira&Associates maintain an office in Dubai.Financial firms wishing to keep up to date with the latest
298、 in UAE crypto regulations may contact us at for advisory assistance.Cryptocurrency To Play Major Role In UAE Global Trade Minister of Foreign Trade52AN INTRODUCTION TO DOING BUSINESS IN DUBAI 2023Dubai is ready for more IPO listings from state-owned and private enterprises,driven in part by the rec
299、ently launched Dubai Economic Agenda(D33)goals.Helal Saeed Al Marri,Director-General of Dubai Department of Economy,has stated that“Despite the many challenges faced,we saw robust GDP growth in 2022 and several other positive indicators,including growth in trade and tourism sectors.Ultimately,the ma
300、jority of the progress in any economy comes from growth within the private sector.However,the government still plays a role,and Dubai has defined several projects to aid this growth.”Al Marri was speaking at the first MENA IPO Summit,which began on Monday(January 23).Last year,Dubai accounted for 40
301、%of all IPO activity in the Gulf region,representing Dh673 billion(US$183 billion).Al Marri said the D33 has set a clear roadmap for companies and investors.Dubai is one of the few cities in the region helping companies accelerate their growth from SMEs to large-scale companies by giving them easy a
302、ccess to capital markets,he added.DFMs target as part of D33 is to identify 400 high-potential companies to support the capacity building capabilities of SMEs and help them develop into global brands.Mohammad Al Bastaki,CEO of Emirates NBD Capital,said he is confident international companies will al
303、so be listing on Dubai financial markets soon.While he did not share timelines for when this would begin,Dubais robust logistics capabilities and the access the Emirate has to great talent will drive international firms to seek local listings.Dubai is poised to become a Middle Eastern financial hub,
304、offering services such as available in Hong Kong and Singapore,but for the Gulf region.Professional services and financial firms wishing to avail themselves of these opportunities may discuss them with Dezan Shira&Associates Dubai office at .The firm has over 30 years experience of advising foreign
305、investors into Asia.Dubai Expecting A Busy 2023 In Developing An International IPO Market53AN INTRODUCTION TO DOING BUSINESS IN DUBAI 2023The Gulf Cooperation Council(GCC)UAE,Israel,Sign Free Trade CEPA AgreementNotable Free Trade Agreements&Comprehensive Economic PartnershipsFree Trade Agreements,C
306、loser Economic Partnership Agreements&Free Trade Zones 454AN INTRODUCTION TO DOING BUSINESS IN DUBAI 2023Dubai,as part of the United Arab Emirates,is a member of the Gulf Cooperation Council(GCC),a trade bloc that also includes Bahrain,Kuwait,Oman,Qatar,and Saudi Arabia.These countries enjoy various
307、 free trade tariff exempt trade and investment encouragements between them.Foreign investors can take advantage of this by establishing a fully licensed company in Dubai,as the business is considered a UAE resident as a legal entity.The Gulf Cooperation Council(GCC)The UAE has signed GCC Free Trade
308、Agreements with several countries and trade groups across the world to enhance its position as a global trade hub and major destination for investments.It also seeks to increase Emirati exports,improve competitiveness in foreign markets,regulate competition,reduce trade barriers facing national prod
309、ucts,boost its investments abroad,and protect intellectual property rights.This also covers tariff barriers,trade services,investments,intellectual property rights,dispute settlement,investment in manufacturing sectors,and protection of property rights to prevent trafficking of counterfeit products.
310、The UAE,within the GCC framework,has signed GCC Free Trade Agreements with many countries including India,New Zealand,Singapore,and EFTA countries.Negotiations are currently underway with several countries and trade groups,including the European Union,Japan,China,Korea,Australia,Pakistan,Turkiye,and
311、 the Mercosur member countries(Argentina,Brazil,Paraguay and Uruguay)as well as the UK.55AN INTRODUCTION TO DOING BUSINESS IN DUBAI 2023The UAE and Israel have ratified a free trade agreement,reducing or removing tariffs on about 96%of goods traded between the nations,Israels Foreign Ministry has sa
312、id.The two countries first reached the agreement last May,promising to boost bilateral trade after they normalized ties in 2020 in a U.S.-brokered deal under the Abraham Accords.That has now been expanded into a full Closer Economic Partnership Agreement.The deal will also allow Israeli companies to
313、 gain access to government tenders in the UAE,and vice versa.Israeli Foreign Minister Eli Cohen said the agreement would“strengthen the connection”with the UAE and that Israel was working to normalize ties with more Arab countries.The deal will also support service sectors such as hospitality,financ
314、ial services,distribution,and construction and provide a platform for small to medium-sized enterprises in both countries to expand internationally.It is expected to advance bilateral trade beyond US$10 billion within five years and add US$1.9 billion to the UAEs GDP within the same time period.Tota
315、l UAE exports to Israel are expected to increase 0.5%by 2030.The UAE-Israel deal is part of a series of initiatives that the UAE has launched to build a stronger,more resilient economic future.Trade deal negotiations are due to start in a matter of weeks with Ukraine and follows the recent conclusio
316、n of other UAE CEPA with India and Indonesia.The UAE is also in trade talks with Turkey,Georgia and Cambodia,as part of its strategy to double its economy to US$817 billion by 2030.Dezan Shira&Associates have an office in Dubai and can assist Israeli businesses into the UAE.For assistance,please con
317、tact Maria Kotova at .UAE,Israel,Sign Free Trade CEPA Agreement56AN INTRODUCTION TO DOING BUSINESS IN DUBAI 2023Notable Free Trade Agreements&Comprehensive Economic Partnerships Greater Arab Free Trade Agreement(GAFTA)The Greater Arab Free Trade Area(GAFTA)is a pan-Arab free trade zone that has been
318、 in place since 1997.It now includes 18 countries:Algeria,Bahrain,Egypt,Iraq,Jordan,Kuwait,Lebanon,Libya,Morocco,Oman,Palestine,Qatar,Saudi Arabia,Sudan,Syria,Tunisia,the UAE and Yemen.Member states comprise a total area of 11.46 million km and have a collective population of about 433 million peopl
319、e,or about 5.5%of the total world population.With an economic output of US2.8 trillion US dollars annually,it represents around 2.9%of the global economy.The members participate in 96%of the total internal Arab trade,and 95%with the rest of the world by applying the following conditions:Overall Impa
320、ctThe GAFTA has been unevenly applied and is somewhat erratic;customs treatment remains uneven between member countries.However,it can offer companies based within the area significant benefits,especially in agriculture.Foreign investors should take professional advise over what benefits applying GA
321、FTA regulations to their business in Dubai can provide.Contact for assistance.57AN INTRODUCTION TO DOING BUSINESS IN DUBAI 2023Free Trade Agreement between the Gulf Cooperation Council(GCC)and the European Free Trade Association(EFTA)StatesThe Free Trade Agreement between the GCC and EFTA states con
322、sists of a total of 93 Articles and 16 annexes and covers a broad range of areas including trade in goods,trade in services,government procurement,intellectual property rights,administration and dispute settlement and competition.The EFTA-GCC Joint Committee supervises the agreement and provides a d
323、ispute settlement mechanism through arbitration.In addition,bilateral agreements on agricultural products between each of the three individual EFTA States and the GCC form an integral part of the agreement.The EFTA includes Iceland,Liechtenstein,Norway&Switzerland.Trade in GoodsIndustrial goods,incl
324、uding fish and other marine products,benefit from duty free access to the respective markets of the EFTA States.For products imported into the GCC,most customs duties are eliminated.Certain products become duty free after a transitional period of 5 years,while some others remain excluded from tariff
325、 dismantling or from the scope of application.The agreement also provides for tariff concessions on processed agricultural products.Basic agricultural products are covered by the bilateral agricultural agreements,which are part of the instruments establishing the free trade area between the parties.
326、With regard to the rules of origin,the agreement is based on the European model,incorporating EUR.1 movement certificates.It furthermore includes provisions on antidumping,state trading enterprises and subsidies,as well as sanitary and phytosanitary measures and technical regulations.Trade in Servic
327、esThe chapter on Trade in Services closely follows the GATS approach which is currently followed in the GCC FTA negotiations with other countries and economic blocs.Positive listing of the commitments is followed as a basis to determine the obligations taken by each party.Both sides commitments unde
328、r the FTA go beyond their current level of obligations in the WTO.Moreover,additional commitments are accorded by the UAE in this FTA,such as professional services,environmental,construction,health,tourism,transportation,telecommunication and maritime services.The Trade in Services chapter will ensu
329、re that each party will treat each services supplier no less favourably than their domestic supplier in similar circumstances.It will also reduce the restrictions on market access.58AN INTRODUCTION TO DOING BUSINESS IN DUBAI 2023GCC-Singapore Free Trade Agreement(GSFTA)The GCC-Singapore FTA(GSFTA)wa
330、s signed in 2008 and is a milestone agreement in strengthening ties between the GCC countries and Singapore,which can provide,via investment,both with benefits in accessing each others regional markets:the GCC and ASEAN.The Agreement includes Trade in Goods,Rules of Origin,Customs Procedures,Trade i
331、n Services and Government Procurement.Trade In GoodsThe GSFTAs Trade in Goods arrangements allows the GCC goods full duty-free access to Singapore market.The GSFTA also qualify 99%of Singaporean domestic exports to the GCC for tariff-free concessions.Some of the remaining goods shall maintain the ba
332、se rates for five years from the date of entry into force of this Agreement.Thereafter,such goods shall be allowed import into the GCC free of customs duties The rest of the goods shall not enjoy any elimination or reduction of customs duties under the Agreement.Key GCC sectors benefitting include p
333、etrochemicals,jewellery,machinery and iron and steel-related industry.Trade In ServicesThe GSFTA builds on the commitments made by Singapore and the GCC at the WTO General Agreement on Trade in Services(GATS).Businesses enjoy preferential access in the following services sectors:Business services:professional services,computer and related services,rental and others;Communication services;Construct