| |
 |
| |
|
|
Geographic Location
The
United Arab Emirates extends along the coast of the gulf, from the base
of Qatar peninsula to a short way beyond Ras AL Khaimah and across the
Mussandum peninsula to the Gulf of Oman.
The federation comprises of seven emirates which includes Abu
Dhabi (the capital), Dubai (the thriving commercial capital), Sharjah,
Umm Al Quwain, Ajman, Ras Al Khaimah and Fujairah. In all the UAE
covers an area of about 83.6 thousand square Kms.
Climate in the United Arab Emirates
UAE lies within a subtropical zone with
very hot summers, high humidity, mild and pleasant winters. Rainfall is
erratic generally, lasting for a few days and rarely exceeding 5 to 10
inches a year.
Population
In 2005, the population of the UAE was
estimated to have reached 4.32 million Immigrant employees who form a
large portion of the population predominantly from the Indian
Subcontinent, Iran, Europe and other Arab countries. Expatriates are
attracted to UAE by the opportunities offered by the rapid development
of the country.
Culture
Arab Islamic culture dominates the
lifestyle of UAE. However, it is tolerant of the different creeds and
beliefs of its large expatriate community. Arab heritage and folklore
finds expression in poetry, dances and songs. The traditional
all-pervasive hospitality gives a great deal of charm to life in UAE.
Cultural activities of other nations are very much popular in this
country.
Language
The official language is Arabic, but
English is the common language, Urdu and Persian are also widely
spoken. Arabic and English are usually used in business and commerce.
Political System
The United Arab Emirates is a Federal Sovereign State which consists of
7 Emirates mentioned above. The Federation was established on the 2nd
December 1971 of six Emirates, and then the Emirate of Ras Al Khaimah
joined the Federation on the 10th of February 1972. According to the
constitution, The Supreme Council of the Federation is the highest
political authority in the country. It consists of all the Rulers of
seven Emirates. The President and the Vice President of the State are
elected by the Supreme Council and from its members. The President
appoints the Prime Minister with the consent of the members of the
Supreme Council. The members of the Federal Government are appointed by
a decree from the President upon recommendation from the Prime
Minister. The Federal National Council (FNC), which consists of
representatives of each Emirate, is the Legislative Council
(Parliament). It exercises the authority to discuss the sanction all
Federal Laws and then refer them to the Supreme Council for enactment.
The Economic Policy
The economic policy of UAE is based on
safeguarding and respecting the individual freedom in ownership of the
means of production, practicing any type of business activities and
providing all facilities.
There are no restrictions on imports and exports except some minor
customs and administrative duties. The government plays a supervisory
role in issuing legislation, which organize the functioning of the
various economic sectors while causing no hindrance to the business
activities.
Nature of Business Activities
The UAE economy has witnessed rapid
economic developments. Even before 1957, the economy of the Emirates
constituting the Federation, under their self-ruling system, was
dependent on the available natural and human resources. Economic
resources varied in each Emirate in accordance to the area, population
and the abundance of the resources of each of them.
They were almost wholly dependent on certain activities such as pearl
fishing and trading, fishing, trade, agriculture, grazing and some
handicraft industries. Each Emirate differed from the other by its
relative dependence on special economic resources. In 1957, another
stage of economic development started. It was the beginning of the era
of oil producing and exporting in Abu Dhabi, Dubai in 1969, and then in
Sharjah. This stage had witnessed the increasing importance of the oil
sector since the huge amount of revenues it provided in comparison with
other sources of the national income. This rendered the traditional
economic activities to become less important, particularly the sector
of pearl fishing and trading. Since then oil and its related industries
have become the backbone of the UAE Economy.
Trading Regulations of UAE
International manufacturers and exporters
may conduct business with UAE by concluding transactions directly with
importers and traders who are already established in the market. This
type of arrangement may be suitable for low-volume trade. However, for
an ongoing business relationship, overseas companies may well want to
consider a more permanent form of representation.
. Commercial Agencies
A foreign company wishing to supply goods
and services from abroad, but without establishing a physical presence
in UAE, may find it advantageous to appoint a commercial agent. The
main provision of the Federal Commercial Agency Law No 18 of 1981, as
amended by Law No 14 of 1988, is that an agent must be a UAE national
or a company 100 per cent owned by UAE nationals. A commercial agent
may not carry out activities in the UAE unless its name is entered in
the Commercial Agency Registry maintained at the Ministry of Economy
and Commerce.
. Distributor:
It is possible for an overseas trader to
appoint a local Distributor to distribute the products in UAE market.
Unlike a Commercial Agent, the Distributor can be any locally
registered company including companies with foreign ownership.
Other Regulations
Import duties are largely standardized at five per cent (expect for
tobacco products (100%) and intoxicating liquors 50%) but there are
many exemptions, including food, building materials, medical products
and any item destined for the Free Trade Zones.
Trade practices in UAE are in line with normal
international standards. As a sophisticated market, full technical
specifications should be provided with CIF UAE prices and Middle East
references. UAE is a member of WTO. Only importers who have appropriate
trade license can undertake imports into UAE. |
|
|
|
|
|
|
|
|
