| |
 |
| |
|
|
Abu
Dhabi is the political capital of UAE and counted as one of the
beautiful cities in the world. It possesses96% of the total oil reserve
of the country. The Emirate offers multiple investment opportunities
involving almost all economic sectors; particularly those import
substituting projects and those export-oriented projects.
Abu Dhabi offers attractive investment incentives for investors from
any part of the world. Its oil and gas sector provides a high
competitive potential mainly for chemical and petrochemical industries
and products. The first commercial quantities of oil were found in
1958. Exports began four years later. Ongoing exploration, both on and
off shore, has so far identified one tenth of the world’s crude
reserves, enough, even at the present rate of production of over 2
million barrels a day, to last another one hundred and fifty years at
least. Finding oil was the first step. Before it could reach the tanker
ships there had to be massive construction of rigs, pipes, tanks and
terminals, which brought a surge of industry and investment to Abu
Dhabi and it is still happening.
In 1971, the government of Abu Dhabi, in common with other major oil
producers in the Middle East, negotiated new concessions with its
foreign partners securing the controlling interest in its precious oil
resources. Gas reserves belong wholly to the government, The Abu Dhabi
National Oil Company (ADNOC) was established to administer the
industry. ADNOC is usually the first port of call for those wanting to
do business in Abu Dhabi. Current expansion and development of the oil
and gas industry, which ADNOC administers, translates into projects,
mostly for heavy industry, worth many millions of dollars
General Procedure for Acquiring Licenses
The Abu Dhabi Chamber of Commerce & Industry and Department of
Planning & Economy approve the required trade name and the Abu
Dhabi Municipality Licensing Committee and Department of Planning &
Economy review applications for licenses. The relevant competent
authority is then involved for the approval of documents and the
Chamber issues the membership certificate on approval from the
authority. The Municipality and Department of Planning & Economy
license is finally acquired after all requirements to rules and
regulations as applied by the Municipality and Department of Planning
& Economy have been met. The Ministry of Economy & Planning is
also involved if the applicant is a commercial company.
Further, the Abu Dhabi Government issued the local law No. 5 of 1998
concerning the procedures of issuing the licenses in the Emirate.
Accordingly, licenses issued by respective concerned authority shall be
categorized as:
|
|
1. Agricultural (Fisheries & Livestock) License
2. Industrial License
3. Commercial License
4. Professional License
5. Vocational License.
Industrial Sector of Abu Dhabi
Specialized Economic Zones
The government of Abu Dhabi recognizes the importance of the industrial
sector and has always believed it to be the pioneering sector of
economic development. The Industrial zones in different part of the
Emirate come under the supervision of the Higher Corporation for
Specialized Economic Zones (HCSEZ). HCSEZ is charged with creating a
suitable environment for industries being set up in Mussafah Industrial
City, Al Ruwais Industrial Area and the Al Ain Industrial Area.
Higher Corporation for specialized Economic Zones
The mission of the Higher Corporation for specialized Economic Zones is
to provide Economic Parties with the best services that add value to
their works and to promote and develop the economic investment in the
Emirate of Abu Dhabi so as to meet the needs of the Emirate within the
perspective of sustainable Economic development.
The newly founded body, under chairmanship of the Abu Dhabi Economic
Department, has the task of providing support structures for
establishment and management of specialized zones in the capital. The
Abu Dhabi Department of Economy has emerged over the last two years as
a driving force in the development of non-oil industries in the
emirate.
Mussafah Industrial City |
|
Mussafah
Industrial City is one of the most important industrial and investment
centers in the emirate of Abu Dhabi. It is 30kms from the Abu Dhabi
City Centre, and boasts of very good road network linking it with Abu
Dhabi and the other emirates. It is situated at about 30kms from the
Abu Dhabi International Airport and 40 Kms from the Zayed Sea port
(Port Zayed). The Mussafah Industrial area covers sq.kms 14 and is made
up of six varieties of industrial zones based on their activities.
Zone 1: Automobiles, Machineries & Spare Parts shops
Zone 2: Food, Textile & Soft drink manufacturing
Zone 3: Engineering works, Wood and Herbal Industries
Zone 4: Chemical, Plastic & Petrochemical Industries
Zone 5: Building & Construction related materials
Zone 6: Advanced Technology Industries
|
|
Availability of Natural Gas
The Mussafah Industrial Area is the only industrial area which supplies
industrial gas. Normal Gas Unit Price is 4 Dirham/MBTU. Gas connection
installation cost depends on factors such as size, distance and input.
Land rent starts from 10 fils/sq. ft.
Starting a Project
An Industrial Project requires the approval from General Industrial
Corporation, Abu Dhabi Chamber of Commerce and Industry and the Abu
Dhabi Municipality and Town Planning Department.
Industrial City of Abu Dhabi (ICAD)
ICAD is located 30 kilometers from the centre of Abu Dhabi City and 25
kilometers from Abu Dhabi International Airport. It has shown very
rapid recent growth with 355 major manufacturing companies employing
more than 30,000 workers. The City provides all basic services and
facilities for a wide range of industrial activities.
Land Rental Rate (Approximate):
Standard 50 fils per sq.ft
Sea side: AED 2 per sq.ft
Khalifa Port and Industrial Zone
Abu Dhabi government plans to construct a new seaport and an industrial
city at Taweelah situating on the Dubai-Abu Dhabi coastline. The new
port and industrial zone are in line with the current strategy of the
local government to step up its pace of development in industrial,
economic and tourism sectors
It is expected the new initiative shall help to increase the
competitiveness and enhance the image as a globally recognized hub for
investment and international trade. The Khalifa Port and Industrial
City will be located at the geographically attractive area having
access to deep water, power generation centers, and proximity to major
expressways. The first phase of the city is expected to be completed in
5 years and entails an industrial estate, ancillary and supporting
commercial and residential developments. The industrial zone will be a
public-private joint venture and the sectors of industries are yet to
be announced. The total financial outlay of the project is estimated as
AED 8billion.
100% Ownership for Foreign Investors
Reflecting the aim of Abu Dhabi Govt. to transform its economy into a
well-developed, modern and diversified economy, a landmark law has been
enacted in 2006 to allow 100% ownership to foreign investors in certain
of the industrial sectors. Initially the ownership shall be allowed in
Industrial City-2 (ICAD-2) for those companies engaging in oil and gas
related activities. ICAD-2 is a10 sq. kilo meters mixed industrial
estate for accommodating dedicated oil and gas industrial services
complex, as well as a building materials cluster. The law gives
regulatory powers to the Higher Corporation for Specialized Industrial
Zones (HCSEZ) to deliver on Abu Dhabi’s new economic diversification
drive by developing a new economic model of public private partnership,
granting companies 100% ownership, issue licenses & permits,
provide tax exemptions, issue customs deferrals, carry out municipality
functions and provide utility services.
< Advanced Industrial Units
Three basic types of Industrial Units offering offices, toilets &
services are available for lease to industries that would like to start
in ready made buildings
Cost of Services
|
|
Water
|
AED 2.20 /C.M
|
Unit type 01
|
2000 m2
|
Electricity
|
15 fils/kwh
|
Unit Type 03
|
1000 m2
|
Natural gas
|
AED 4 /MBTU
|
Unit T |
|
|
|
sector
with AED 130.6 billion worth of projects under construction in 2005,
accounting for 63.7% of the total value of projects under construction
in the GCC states. The construction sector in UAE is booming and at an
all time high. Its output grew at an average annual rate of 11% over
the last decade, rising from AED14.5 billion in 1996 to AED 25.4
billion in 2004. Given the wave of real estate development during the
last few years, the average growth rate during 2002-2004 exceeded 16%
annum. The Real Estate GDP of UAE in 2004 stood at AED 29.5 billion and
40% of this was from the emirate of Dubai.
Property Law
In
August 2005, President His Highness Shaikh Khalifa Bin Zayed Al Nahyan,
in his capacity as the ruler of Abu Dhabi, issued a law regulating the
right to own and transfer real estate for citizens and expatriates. The
Law states that the right to own properties shall be limited to UAE
nationals and other corporate bodies wholly owned by them. GCC citizens
will be entitled to properties within the areas designated for
investment. Foreign Nationals will have the right to own surface
property, but not the land itself, in investment areas. Expatriates
will have the right to arrange all their properties on it and to derive
benefit from the real estate based on a long term land title agreement
which shall last for 99 years or a long term surface ownership
agreement of 50 years.
Classification of Contracting Firms:
Contracting Firms have been classified under Regulation (4) by the
contractors’ classification committee in the year 1980. Under this law,
contractors/engineering firms are recognized under the following
classifications as mentioned in the table below
|
|
Category
|
Minimum Value of capitals &
Assets (AED)
|
“Technical Conditions” Permanent Technical Staff
|
“Experience conditions”
Contracts executed
During the last 6 years
before applying for
classification
|
Estimated value of the contracts
that he may participate in:
|
Special
|
20,000,000
|
1. Full time Engineering and technical specialized staff consists at least of:
- Senior Engineer with experience not less than 15 years.
- Engineer with experience not less than 12 years-Two
engineers with experience not less than 10 years each
2. Full time Accounting staff
|
Three contracts at least
well executed, value of
each not less than
80,000,000
|
More than 50,000,000
|
First
|
10,000,000
|
1. Specialized Engineering & Technical staff consists at least of:
- One Engineer with experience not less than 12 years.
- Two Full time Engineers with experience not less than 5 years
each. 2. Full time Accounting staff.
|
Two contracts at least,
well executed, value of each not less than
40,000,000
|
More than
20,000,000 up
to 90,000,000
|
Second
|
5,000,000
|
1. Full time Specialized Engineering & Technical staff consist at least of:
-Engineer with experience not less than 10 years.
- Engineer with experience not less than 5 years.
2. Full time Accounting staff.
|
Two contracts at least, well executed, value of each contract not less 20,000,000
|
More than
10,000,000 up
to 50,000,000
|
Third
|
3,000,000
|
1. Full time Specialized Engineering & Technical Staff at least: -
- One Engineer with experience not less than 7 years.
2. Accountant.
|
Two contract at least,
well executed, value of each not less than
10,000,000
|
More than Five
5,000,000 up to
30,000,000
|
Fourth
|
1,000,000
|
Full time Specialized Engineering & Technical Staff at least: - one Engineer with experience not less than 5 years.
|
Two contract at least, well executed value of each not less than
3,000,000
|
More than 2,000,000 up to
15,000,000
|
Fifth
|
500,000
|
Full time Specialized Engineering
Technical Staff f, at least: One Engineer with experience not less than 3 years. .
|
|
5,000,000
|
|
|
Procedures for Contractor Classification Registration
A Contractor, who wishes to register in the Contractor Classification
Registration, will have to submit an application to the Committee
Secretariat enclosing the following certificates and documents
1. Chamber of Commerce Membership Certificate
2. Commercial Registration Certificate.
3. Report from a locally registered
audit firm regarding financial position of the applicant
4. List of technical staff, along
with approved certificates of their qualifications and experiences.
5. Certificate for all contracts
carried out by the applicant duly approved by the concerned
authorities.
The Contractor shall be granted a certificate for the categories and
specializations he has been classified in and this certificate should
be renewed every two years. Final decision of the Contractors
Classification shall be published in the official gazette. Only
contractors whose names are recorded in the classification register are
allowed to participate in tenders offered by governmental departments
for contracting works. Governmental departments may invite the
Contractor to participate in contracts falling under the category he is
classified in.
However, exceptions are given to foreign companies and establishments,
which have their main office outside the United Arab Emirates and have
no branch office in the UAE. Their participation in contracting works
shall be according to the current laws and regulations, provided that
this will be limited to the specialized technical works, which cannot
be performed by the contractors who are classified under the provisions
of these systems.
Engineering Consultancy Firm -
Requirements for registering Foreign Company Branch
· Document of the
Resident Engineer (R.E) not less than 10 years experience duly
certified.
· Copy of the Resident
Engineer’s passport as well as his University Degree in Engineering.
· Power of Attorney to
the (R.E.) duly attested to act as manager and representative of the
office.
· Partnership contract
duly attested (if any).
· Certificate of
incorporation, duly attested,
· A written
undertaking to employ an engineering team after the issue of License.
· Previous experience
and projects, duly attested, showing value of projects and type of
works with completion certificates and contracts.
· Board Resolution to
open a branch in Abu Dhabi.
· All supporting
documents should be duly attested by the concerned authorities, then by
the Embassy and UAE Ministry of Foreign Affairs.
· Sponsorship contract
(if any) duly attested.
· Undertaking from Main
Office to accept responsibilities of the Branch Office.
Rudiments for New UAE Local License
· UAE National holding
B.Sc in Engineering with experience of more than 3 years.
· A technical manager
should be appointed in the office that should have ten (10) years
experience as Resident Engineer.
· Copy of the owner’s passport.
· No Objection
Certificate in case the UAE National is a government employee.
· An undertaking to
appoint the Engineering team of the office, civil, architecture, or as
required.
Rudiments for Consultancy Office (Branch of UAE Company)
· Copy of the Municipality License.
· Copies of the degree
certificate of the UAE National and of his passport.
· Previous experience
of executed projects.
· Documents of the
engineer, manager of the branch with power of attorney, duly attested.
· Partnership contract
with the engineer, (if any).
· Certificate of
incorporation inside and outside UAE for the Foreign office.
· Sponsorship Contract – (if any).
· An undertaking to
transfer the engineer’s sponsorship and to appoint the Engineering team
after obtaining the license
|
|
|
|
|
|
|
|
