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U.S. Department of State 
1996 U.A.E. Country Commercial Guide 
Office of the Coordinator for Business Affairs 
 
 
 
 
                        COUNTRY COMMERCIAL GUIDE FY 1996 
                            UNITED ARAB EMIRATES 
 
 
 
                         TABLE OF CONTENTS 
 
 
I.    Executive Summary 
II.   Economic Trends and Outlook 
III.  Political Environment 
IV.   Marketing U.S. Products and Services    
V.    Leading Sectors for U.S. Exports and Investment 
VI.   Trade Regulations and Standards 
VII.  Investment Climate    
VIII.   Trade and Project Financing 
IX.    Business Travel 
       -Business Customs 
       -Travel Advisory and Visas 
       -Holidays 
       -Business Infrastructure 
 
X.   Appendices 
     A. Country Data 
     B. Domestic Economy 
     C. Trade 
     D.   Investment Statistics 
     E.   Contacts 
 
 
This Country Commercial Guide (CCG) presents a comprehensive look at the 
United Arab Emirate's commercial environment through economic, political 
and market analyses. 
 
The CCGs were established by recommendation of the Trade Promotion 
Coordinating Committee (TPCC), a multi-agency task force, to consolidate 
various reporting documents prepared for the U.S. business community.  
Country Commercial Guides are prepared annually at U.S. Embassies 
through the combined efforts of several U.S. government agencies. 
 
 
 
                      CHAPTER I.  EXECUTIVE SUMMARY 
 
The United Arab Emirates remains the most dynamic, and perhaps the only 
expanding economy in the Gulf region, despite the continued weakness in 
world oil prices. U.S. exports to the UAE dropped by about 10 percent in 
1994 but the first quarter of 1995 shows U.S. exports to the UAE up more 
than 25 percent. U.S. exports should reach record levels in excess of 
2.2 billion dollars in 1995. The UAE's economic growth is being fueled 
by two main factors: an ongoing construction boom in both Abu Dhabi and 
Dubai, and expansion of the greater Dubai economic zone (including 
neighboring emirates of Sharjah and Ajman) as a regional business center 
and trading hub. Major projects throughout the Emirates, ranging from 
refinery expansions and petrochemical projects to hotel and tourism 
facilities to airport upgrades and expansions will ensure that this boom 
continues at least through 1996. Serious efforts at enforcing new 
intellectual property rights laws during the past 12 months are 
encouraging many U.S. firms, from film and videos distributors to 
computer software manufacturers to look seriously at the UAE for the 
first time, which should add another boost to the local market and the 
UAE's role as regional trade center. 
 
U.S. firms are continuing to pursue major military sales opportunities, 
particularly in Abu Dhabi.  Procurement of naval frigates, air force 
fighters, and heavy transport vehicles tops the list of some US dollars 
six billion of military hardware expected to be decided in the next 12 - 
18 months. Emirates Airlines will start taking delivery of six Boeing 
777 aircraft and may exercise options on an additional six airplanes (a 
purchase worth some US dollars 800 million). 
 
The UAE remains a highly competitive market dominated by government 
procurement, where the emphasis is on being lowest bidder.  This is a 
strategy which many U.S. firms prefer not to follow. The blush of 
goodwill for US companies and products which followed the 1991 Gulf War 
is long gone from UAE markets. Japanese firms have returned to the UAE 
with a vengeance, especially in such key sectors as telecommunications, 
motor vehicles, heavy machinery, and petroleum equipment. European firms 
continue to win a major portion of telecommunications, construction, 
power and water, and defense major projects.  
 
The role of the greater Dubai economic zone as a regional business and 
trading center expanded phenomenally during the past 24 months. The 
Jebel Ali Port (the largest man-made harbor in the world), industrial 
complex, and Free Zone at Jebel Ali now boasts more than 1,000 
international commercial and industrial ventures including petroleum-
related industries, huge sugar and flour mills, warehouses, and many 
light industries. There are daily cargo charter flights from Dubai, 
Sharjah and even Fujairah airports to all the former Soviet Union 
republics, a volume of trade which reached close to US dollars one 
billion in 1994 (and continues to grow in 1995).  Dubai airport will 
double capacity to 12 million passengers per year by the year 2,000, and 
the increasing number (and size) of Dubai's trade exhibitions shows no 
sign of slowing down.  In sum, the UAE remains the most attractive, 
growing business center between the Mediterranean and India, and has 
direct trade links with a region encompassing almost one quarter of the 
world's population.  
 
AGRICULTURAL EXECUTIVE SUMMARY: 
High value U.S. food products with strong market potential in the UAE 
include frozen poultry (parts and whole birds, eggs, fresh apples, 
almonds, processed cheeses, dressings, dips, hot sauces and snack foods.  
In addition, growth in the local food processing industry is driving 
demand for semi-processed products such as beverage bases, vegetable 
oils, raw peanuts, specialty flours and a variety of food ingredients. 
 
Country Commercial Guides are available on the National Trade Data Bank 
on CD-Rom or through the Internet.  Please contact Stat-USA at 1-800-
STAT-USA for more information.  To locate Country Commercial Guides via 
the Internet, please use the following world wide WEB address:  
WWW.STAT-USA.GOV.  CCGS can also  be ordered in hard copy or on diskette 
from the National Technical Information Service (NTIS) at 1-800-553-
NTIS. 
 
 
 
                CHAPTER II.  ECONOMIC TRENDS AND OUTLOOK 
 
Major Trends and outlook 
The United Arab Emirates (UAE) is a federation of seven emirates located 
on the Arabian Peninsula.  The UAE has coastline and seaports inside as 
well as outside the Strait of Hormuz, which is the entrance to the 
Persian Gulf.  The seven emirates are Abu Dhabi, Dubai, Sharjah, Ajman, 
Umm Al Qaiwain, Fujairah, and Ras Al Khaimah.  The total area of the UAE 
is about the size of Maine.   Each emirate is ruled by a shaikh.  The 
ruler of Abu Dhabi, Shaikh Zayid Bin Sultan Al Nahyan, is the president 
of the federation. 
 
A high degree of political and economic power resides in the individual 
emirates.  Each shaikh retains control over natural resources, including 
oil, within his emirate, and regulates commercial activity.  Because 
hydrocarbon reserves, and thus revenues, are not equally distributed, 
the seven emirates are not equal in terms of wealth, power, or level of 
economic development.  Abu Dhabi, the largest oil producer, is the 
wealthiest and most powerful, followed by Dubai, the federation's 
commercial center and second largest oil producer.   
 
The terrain is mostly sand desert, barren mountains, and salt flats.  
Before the exploitation of petroleum deposits, beginning in the 1960's, 
the UAE had a subsistence economy, which consisted of fishing, date 
farming, camel husbandry, trading, and pearling.  Now, the UAE is a 
prosperous country of global economic significance, with a 1993 per 
capita GDP of 16,920 dollars.     
 
GDP, dependent on oil prices, has followed a roller coaster pattern, 
soaring during the 1970's and declining precipitously during the 1980's.  
These swings in income have caused the authorities to look for ways to 
diversify the economy, particularly in Dubai, where oil production is 
declining.  The search for diversification has been only partially 
successful, however.  Government spending of past, present, and future 
(through borrowing) oil revenues remains the engine that powers the 
economy.  Oil revenues provided 80 percent of fiscal revenue and about 
60 percent of export earnings in the period 1990-1994.  Real GDP 
declined by 1.4 percent in 1993 but grew by 1.1 percent in 1994.  The 
growth in 1994 was due to five percent growth in the non-oil sector.  
Inflation in 1994 was at 4.6 percent, a slight decline from 1993.  
 
The UAE is in better financial condition than its immediate neighbors.  
The government is not delaying payments to contractors or borrowing from 
foreign commercial banks to pay its debts.  It is however drawing down 
its own overseas assets and borrowing from domestic commercial banks in 
which it has an ownership share.  The UAE maintains an extensive cradle 
to grave welfare system for UAE nationals, comprised of numerous 
subsidies, grants, loans, and provision of free services.  Most 
nationals are employed by the government.  The government provides many 
subsidized services which also are extended to foreigners, who form 80 
percent of the total population.  In 1994, the government undertook to 
reduce these subsidies by increasing fees charged to foreigners for some 
services, such as health, water, and electricity.  The increases do not 
fully  cover costs, and nationals still receive many of these services 
at reduced rates or free of charge.  Government officials have discussed 
privatization of government owned industries and the establishment of a 
stock market.  As of July 1995, no government owned entity had been 
privatized and the stock market is awaiting cabinet approval. 
 
Economic analysis in the UAE is difficult because the federal and 
emirate governments and their semi-autonomous entities do not publish 
comprehensive, accurate statistics in a timely manner.  Similarly, 
private sector institutions, including banks and foreign oil companies, 
are not allowed to disseminate statistics to the public.  Information on 
oil and gas production and pricing, overseas investments, and government 
budgets is only available from external sources.   
 
 
Principal Growth Sectors 
 
Agriculture 
The local food processing industry continues to expand offering export 
opportunities for semi-processed agricultural products.  Major growth 
sectors are beverages (juices and soft drinks), dairy products (ice 
cream and yogurt), snack foods and cookies/biscuits. 
 
 
The Oil Sector 
The UAE claims to have nearly 100 billion barrels of proven oil 
reserves, or about 10 percent of total proven world oil reserves, most 
of it in the emirate of Abu Dhabi, and 5.7 trillion cubic meters of 
proven gas reserves, which amounts to 4.6 percent of total world proven 
gas reserves, again, most of it in Abu Dhabi, which makes the UAE the 
fourth largest gas reserve country in the world after Russia, Iran, and 
Qatar.  UAE oil production in mid-1995 is at the level of the UAE's OPEC 
quota, 2.16 million barrels per day (mmbd), with about 0.3 mmbd coming 
from Dubai and the rest from Abu Dhabi.  Capacity is much higher.  While 
Dubai produces at maximum capacity, Abu Dhabi is nearing completion of a 
5.0 billion dollar capacity expansion program that will take Abu Dhabi 
capacity to 2.5 mmbd by 1996.     
 
Largely because of flat or declining oil prices, oil's share of GDP has 
declined from 44.2 percent in 1990 to 33.2 in 1994.  Despite this, there 
is considerable growth potential in this sector.  In Abu Dhabi, the 
government is considering whether to expand capacity further.  It may do 
so, depending on its assessment of future market trends.  It has 
finally, after years of consideration, decided to go ahead with two 
major downstream projects, petrochemicals and refinery expansion.  
  
There are two refineries in the UAE, both in Abu Dhabi, both owned by 
the Abu Dhabi National Oil Company (ADNOC), with a combined capacity of 
about 215,000 barrels per day (b/d).  ADNOC has decided to expand the 
larger of the two, located in the Ruwais Industrial area, by adding 
facilities to process an additional 130,000 b/d of condensate, a new 
crude oil unit to double distillation capacity to 270,000 b/d, expansion 
of residual oil conversion facilities, including a new 40,000 b/d 
hydrocracker and a 36,000 b/d visbreaker, and other upgrading work.  
ADNOC is also seeking a foreign partner to construct a 400,000 ton per 
year polyethylene plant, to be located in Ruwais near the existing 
natural gas liquid (NGL) fractionation plant operated by Abu Dhabi Gas 
Industries Ltd (GASCO).  The petrochemical plant would use as feedstock 
the ethane that the NGL plant produces as a by product.  The ethane is 
currently either flared or reinjected.  The only existing petrochemical 
facility is a joint venture fertilizer plant that produces ammonia and 
urea.  It is also located in Ruwais.   
 
The rationale for both of these projects is that Abu Dhabi needs to add 
value to its basic product in order to increase income from it.  It 
cannot hope to significantly earn more from oil by producing more, even 
though it has the capacity to do so, as long as it adheres to an OPEC 
quota that hasn't changed in over two years, unless the price goes up.  
Most observers, however, expect oil prices to remain flat or decline.  
Non-OPEC production is at an all time high, OPEC is once again in a 
swing producer role, and the prospect of Iraqi return hangs over the 
market like a cloud.  Under these circumstances, Abu Dhabi has finally 
decided to go ahead with its long delayed plans for downstream 
investment.  The authorities have said that following the establishment 
of the first petrochemical plant, others will be built, with local 
private sector participation. 
 
Abu Dhabi also is in the process of increasing income from its enormous 
gas reserves.  Abu Dhabi is the only producer and exporter of liquefied 
natural gas (LNG) in the region.  In 1994 it doubled the capacity of its 
LNG plant on Das Island to five million tons per year.  LNG accounts for 
about five percent of total UAE (not just Abu Dhabi) export earnings.  
In addition, the completion of the Onshore Gas Development (OGD) scheme 
in 1995 will mean an additional 130,000 b/d of condensate production 
that does not count against an OPEC quota.  Part of the refinery 
expansion project mentioned above will include facilities to process 
this condensate. 
 
Crescent Oil Company, based in the emirate of Sharjah, leads an 
international consortium planning to build a gas pipeline from Qatar's 
North Dome field to Pakistan.  Crescent's plan calls for this pipeline 
to cross UAE territory.  So far, the emirates of Abu Dhabi and Dubai 
have shown little enthusiasm about Crescent's pipeline. 
 
 
The Non Oil Sector 
Several factors have contributed to the growth of the non-oil sector in 
recent years.  These included government investments in electricity, 
water, and other infrastructure, development of financial services, and 
strong demand for re-exports.  An open economic system, free movement of 
capital, and financial stability has also contributed.  Government 
support through provision of incentives and subsidies, along with a high 
level of government expenditure in housing, have also played an 
important role.   
 
In percent of GDP, the largest contributors after oil (33.2 percent in 
1994) are, in descending order, government services (12 percent), trade 
(11 percent), construction (10 percent), manufacturing (8.6 percent), 
real estate (6.7 percent), transportation, storage, and communications 
(6.2 percent), and finance and insurance (5.6 percent).  The real growth 
rates of these sectors in 1994 were minus 5.8 percent for oil, 4.5 
percent for government services, 4.4 percent for trade, 7.5 percent for 
construction, 0.7 percent for manufacturing, including natural gas and 
petroleum processing, 6.9 percent for real estate, 4.6 percent for 
transportation, storage, and communications, and 5.7 percent for finance 
and insurance.  
 
 
Government Role in the Economy 
The UAE has a mixed economy, with the most productive assets owned by 
the governments of the individual emirates but considerable scope given 
to private enterprise, with a legal regime that favors UAE nationals 
over foreigners.  In both Abu Dhabi and Dubai, international oil 
companies maintain equity interests in their operations.   
   
Some banks are privately owned.  They represent one of the principal 
types of commercial establishment in which stock is sold to the public.  
Only UAE nationals are permitted to own stock in UAE joint stock 
companies.  Foreigners are permitted to own up to 49 percent of a 
limited liability partnerships.  The remaining 51 percent must be owned 
by a UAE national.  Foreign companies can market their products in the 
UAE either through these limited liability companies or through 100 
percent UAE national owned distributorships.  Foreign contractors or 
service businesses require UAE national sponsors, one for each emirate 
in which they do business.  Foreigners are not allowed to own land in 
Abu Dhabi or Dubai.   
 
The UAE federal government is attempting to establish a legal framework 
covering all aspects of doing business in the UAE.  The most recent 
additions were the intellectual property rights protection laws, passed 
in 1992 and enforced in 1994, and the commercial code, passed in 1993 
and containing for the first time in the UAE provisions for bankruptcy.   
 
There are no restrictions on the import or export of either the UAE 
dirham or foreign currencies, by foreigners or UAE nationals, with the 
exception of Israeli currency and the currencies of those countries 
subject to United Nations sanctions.   Otherwise, all currencies can be 
freely exchanged in the UAE at market rates.     
 
The government sector includes the accounts of the federal government as 
well as the accounts of the seven individual emirate governments.  Only 
the federal budget, a small part of the total, is published.  For 1994, 
outside observers estimate the consolidated fiscal deficit at 12 percent 
of GDP.  It is financed by domestic borrowing, principally by overdrafts 
from banks, usually those in which government entities have an ownership 
share, and drawing down overseas assets.  The UAE does not borrow from 
foreign commercial banks or issue bonds.  Various utilities and public 
services (including medical treatment) in 1994 instituted higher fees, 
in some cases a scaled fee structure with higher charges imposed on 
foreigners.  
 
The UAE federal government is considering a draft bill to establish an 
official UAE stock market.  Currently, shares in about 30 UAE companies 
are traded informally.  Authorities of the federal government and some 
emirate governments are also considering offering to the public (UAE 
nationals only) shares in some existing government owned businesses.   
 
There is no income tax in the UAE.  Foreign banks pay a 20 percent tax 
on their profits.  Foreign oil companies with equity in concessions pay 
taxes and royalties on their proceeds.  There are no consumption taxes, 
and the highest customs duty assessed is four percent.  There is no 
minimum wage. 
 
 
Balance of Payments Situation 
In 1994, the UAE ran a current account surplus of 455 million dollars.  
This represented 1.3 percent of GDP.  The surpluses had been declining 
steadily from 5,460 million dollars in 1990, which represented 16.2 
percent of GDP in that year.  Outside observers project that by the year 
2,000, based on present world oil prices, the current account will run a 
deficit of 2,074 million dollars, equivalent to 4.3 percent of GDP. 
Outside observers estimate that the current account surplus will decline 
to 25 million dollars, or about 0.1 percent of GDP in 1995.  Total 
exports are expected to increase by 10 percent, but imports will also 
increase by about the same amount, and the outflow of private transfers 
will increase. 
 
In 1994, the United States took 2.2 percent of UAE exports and provided 
8.5 percent of UAE imports, down from 9.2 percent in 1993. 
 
The UAE maintains a free exchange and liberal trade system.  The UAE 
dirham has been pegged to the U.S. dollar at a rate that has not changed 
since 1980.  this has helped to maintain a low inflation rate and 
fostered private sector confidence.  Recent sharp depreciation of the 
U.S. dollar against Japanese yen has hurt the UAE's terms of trade, in 
that Japan is the UAE's largest crude oil export market and provides 15 
percent of UAE imports.  However, the UAE is committed to maintaining 
the dollar link.     
 
The Gulf Cooperation Council (GCC), grouping the UAE, Saudi Arabia, 
Kuwait, Bahrain, Qatar, and Oman has been discussing a common external 
tariff for some years.  In a step toward establishing a common external 
tariff, the UAE in 1994 took the decision to raise its import duties 
from one to four percent.  This rate is applied on less than 25 percent 
of imports, however.     
 
The UAE enjoys a booming re-export trade.  In 1995, 34 percent of all 
exports were re-exports.  Traditional re-export markets are the GCC 
states and Iran, but UAE traders have aggressively sought out new 
markets in such areas as Russia, the newly independent states of central 
Asia, and South Africa, particularly as Iran, formerly the largest re-
export market, has sharply restricted imports in an attempt to come to 
grips with a deteriorating economy and mounting debts. 
 
A problem affecting compilation of the UAE's balance of payments 
statistics is that the government does not provide statistics for many 
transactions.  Major gaps include workers' remittances, investment 
income, oil and gas revenues, foreign direct investment transactions, 
and capital transactions.     
 
 
Infrastructure Situation 
The UAE has a fairly well developed and modern infrastructure.  Land 
transportation is by road.  A concrete highway network links all main 
cities.  Authorities in Abu Dhabi and Dubai are busily engaged in 
widening existing roads and replacing worn stretches.   There is no rail 
system in the UAE, nor any domestic air transportation network, despite 
the fact that the country has 6 modern airports.  All emirates also have 
modern seaports.  The port of Jebel Ali in Dubai is the largest man made 
port in the world.  Goods are imported for the most part by sea and 
distributed by truck within the UAE and to nearby locations in 
neighboring GCC countries.     
 
As part of its drive to diversify its economy away from oil to regional 
trade, Dubai has developed two seaports and it's airport to handle re-
export cargo with considerable expertise and precision.  Given that 
international shippers operating between Europe and the Far East prefer 
to make only one stop in the Gulf, Dubai has managed to secure the 
lion's share of the business of unloading, breaking down, and reloading 
cargo for onward shipment.  Dubai's physical facilities and sheer 
expertise in this area make its ports the preferred stops for most 
shippers on these routes.  Dubai aggressively seeks out new re-export 
markets, and, though it still depends on its traditional re-export 
markets of Iran and the GCC, it has developed trade ties with the newly 
independent Central Asian states of the former Soviet Union, South 
Africa, and the subcontinent.  Road and rail lines carry cargo unloaded 
at Dubai and ferried across the Gulf to Iranian ports to markets it 
central Asia.  This route shows great promise, particularly if central 
Asian states succeed in developing their enormous oil and gas reserves 
and become booming markets for imports as a result.  Dubai's cargo 
village at its international airport handles more air cargo than any 
other airport in the world, much of it coming into Dubai by sea from the 
far east or the subcontinent and then going out by air to Europe. 
 
Other ports in the region, including in the UAE, have noticed Dubai's 
success and are seeking to take some of the re-export business for 
themselves.  While they may never be able to match Dubai for sheer 
expertise, two of them at any rate, Khor Fakkan and Fujairah, both in 
the UAE, possess something Dubai never will -- they are located on the 
Gulf of Oman outside the straits of Hormuz entrance to the Persian Gulf.  
An international cargo ship can cut 24 hours off the sailing time from 
Europe to the Far East by not joining the queue to pass through the busy 
straits, not to mention the savings from lower insurance rates for not 
entering the Gulf. 
      
A private commuter airline operating between Abu Dhabi and Dubai 
airports was shut down two years ago only a month after its start up by 
Abu Dhabi authorities fearful that it would drain international travel 
away from Abu Dhabi International to Dubai International.  Similar 
concerns block the establishment of a rapid transit system that would 
connect the principal cities of the UAE, as such a system would permit 
individuals to reside and work in different cities, with consequent 
negative effects on demand for rental property in cities less desired as 
residential sites.       
 
The UAE has well developed water and electricity utilities.  The federal 
and emirate governments have constructed facilities to generate 
electricity, either using gas (which the UAE has in abundance) turbines, 
with steam turbines added to make them combined cycle units, or steam 
turbines in conjunction with gas fired boilers.  In many plants, flash 
distillers are added to the turbine units to produce desalinated 
seawater using the waste heat from the turbines or boilers.       
 
The UAE has about 5,000 megawatts of installed electricity generating 
capacity at present.  It plans to install at least 3,000 more by the end 
of the decade.  In addition, plans are underway to establish an 
electricity grid linking the seven emirates.  After that is done, the 
UAE and Omani grids will be linked as a step toward a GCC-wide 
electricity grid. 
 
The UAE currently produces over 200 million gallons per day of 
desalinated water, and projects currently underway but not yet finished 
will add over 100 million gallons per day more.  Desalination plants 
currently provide 74 percent of non-agricultural water and 29 percent of 
all water used in the UAE. 
 
 
 
                   Chapter III: POLITICAL ENVIRONMENT: 
 
Nature of Bilateral Relationship with the United States: 
Relations between the UAE and the United States are friendly and strong.  
The two countries have similar viewpoints on most issues of 
international concern.  The UAE supports the Arab-Israeli peace process 
and is firm on upholding U.N. Security Council sanctions against Iraq.  
It views with concern Iran's efforts to build up its military, acquire 
weapons of mass destruction and support international terrorism.  The 
U.S. has made a number of military sales to the UAE, and U.S.naval 
vessels call at ports in the UAE more frequently than in any other 
country of the world. 
 
 
Major Political Issues Affecting Business Climate: 
The UAE, especially Dubai, has considerable trade with Iran.  At the 
same time, there is an ongoing dispute between the UAE and Iran over 
three islands in the Gulf (Abu Musa and the Greater and Lesser Tumbs) 
which the UAE seeks to resolve by peaceful means.  In 1994, the UAE 
joined the other GCC states in declaring an end to the secondary and 
tertiary aspects of the Arab boycott against Israel. 
 
Brief Synopsis of Political System, Schedule for Elections, and 
orientation of major political parties 
The UAE is a federation of seven emirates.  Each emirate retains a high 
degree of autonomy within the federal system.  The president of the UAE 
is chosen by the Supreme Council, which is composed of the rulers of the 
seven emirates.  Abu Dhabi Ruler, Shaykh Zayid Bin Sultan Al Nahyan has 
been president of the UAE since the country's foundation in 1971.  In 
addition to the Supreme Council, the federal structure includes a 
Council of Ministers, a Federal Judiciary, and the Federal National 
Council (FNC), which consists of 40 members representing the seven 
emirates.  The FNC does not have the power to legislate, but it can 
summon ministers; and it performs an oversight function.  There are no 
political parties or elections in the UAE. 
 
 
 
          CHAPTER IV:  MARKETING U.S. PRODUCTS AND SERVICES 
 
A.  Distribution and Sales Channels: 
U.S. exporters do business in the U.A.E. by: selling directly to the 
end-user; selling through an informal, non-exclusive re-seller 
arrangement; selling through an agent/distributor; establishing a 
company presence through a joint venture; or by authorizing a local firm 
to sell its products via a licensing or franchising arrangement.   Re-
seller arrangements avoid the legal problems associated with U.A.E. 
federal agency laws, and they are suitable for products where local 
promotion and after-sales service are not factors.  While re-seller 
relationships are not uncommon because they offer low-risk arrangements, 
they are also a passive, reactive form of marketing with very limited 
growth and profit potential.  A more aggressive, proactive, and growth 
oriented marketing program should select an alternative method to 
penetrate the U.A.E. market. 
 
 
Distribution and Sales Channels - Agriculture 
There are numerous food importers, many of whom are also wholesales, 
distributors, and retailers.  Four to five companies dominate retail 
food sales.  Many fruit and vegetable importers also import eggs. 
 
Dubai is a major transhipment center for a variety of food products.  It 
is estimated that about 60 percent of total UAE food imports are re-
exported to other destinations, primarily other Gulf countries, Iran, 
India and increasingly the former Soviet Union. 
 
 
B.  Use of Agents/Distributors; Finding a Partner: 
U.A.E. law does not distinguish between an agent or distributor, 
referring to both as commercial agents.  All agents must be registered 
with the Ministry of Economy and Commerce.  Selection of the right agent 
is probably the most important decision that the exporter can make.  
Agents may not be terminated, except with sufficient cause as determined 
by a government committee that has usually ruled in favor of the local 
agent.  In most cases, compensation to a terminated agent is required 
even if the committee rules for the foreign firm.  Only U.A.E. nationals 
or companies wholly owned by U.A.E. nationals can register with the 
Ministry of Economy and Commerce as local agents. 
 
The terms and conditions of agency contracts vary greatly.  Commissions 
and other forms of compensation typically depend on the amount of work 
required of the agent, and sales volume.  The agent's responsibilities 
and performance measures should be clearly defined.  Agents may be 
appointed on a project basis, with the relationship restricted to that 
project and terminated automatically upon reward or completion. 
 
Establishing the geographic territory of an agent is critical.  U.A.E. 
law automatically awards exclusivity to the agent in the geographic area 
covered by the agreement.  An agent must have a presence and be licensed 
to operate in each emirate he does business in.  There is no blanket 
license for the whole of the U.A.E.  Consequently, U.S. exporters 
seeking U.A.E.-wide coverage must appoint a separate agent for each 
emirate, or appoint a master agent with offices or sub-agents in each 
emirate.  Virtually all of the most successful trading houses fall into 
the later category.    
 
Local agency laws prohibit the importation and sale of brand name food 
products by other than the principle agent.   
 
 
Use of Agents/Distributors - Agriculture  
Local agency laws prohibit the importation and sale of brand name food 
products by other than the principle agent. 
 
 
C.  Franchising: 
The U.A.E. market is poised for considerable growth during the next five 
years.  Currently, franchises are operating in fast foods; dine-in 
restaurants and clubs; auto leasing; apparel; soft drink bottling; 
beauty products; hotels; toys; photography; jewelry; vending machines; 
dry cleaning; furniture; hardware; natural health products; 
publications; and sporting goods.  The largest segment is the fast food 
franchise group which is highly sought after by local companies.  Most 
of the major U.S. fast food companies are already established in the 
market.  However, the industry is currently going through a 
restructuring with several major franchises being sold to new owners.  
These changes are seen as a positive change from weaker to stronger 
management, and not a reflection of weakness in the market.  There 
remains considerable potential for franchises of all kinds. 
 
There is no special legislation for franchises in the U.A.E.  General 
contract and commercial law apply to franchise agreements.  U.A.E. law 
mandates that only U.A.E. citizens or corporations wholly owned by 
U.A.E. citizens  are allowed to conduct retail operations, the most 
common type of franchise.  U.S. businesses must work through a local 
partner as licensee, or enter into a joint venture.  Franchisees usually 
prefer to own 100 percent of the franchise themselves.  In other cases, 
the franchisee enters into a joint venture with the franchisor to 
operate all outlets as "company owned" stores employing local managers.   
 
As with other types of business operations in the U.A.E., the selection 
of the local partner is critical.  One common practice used by 
franchisors in the past that has, in many cases, caused considerable 
problems and significant lost sales is the selection of a master 
distributor to cover the entire Gulf through the use of sub-distributors 
in each country.  Each market is different and requires qualified local 
partners to exploit its opportunities.
 
Master distributors, when operating outside their primary market, even 
with a local agent, often do not service these secondary markets 
sufficiently, and lack the local influence to solve problems that may 
arise.  In the U.A.E. an additional concern must be the ability of 
franchisees to conduct business in each separate emirate.  U.S. 
franchisors are strongly urged to consider the above factors before 
appointment of any franchisee.     
 
 
D. Direct Marketing: 
Other than for large orders, usually related to private or public 
project procurement or large businesses for their own use, the direct 
sale to the end-user approach is suitable only for infrequent, low 
volume exports.  For most exporters seeking a high volume, fast turnover 
sales network, a more aggressive campaign executed through local 
distributors has been the best marketing strategy.  
 
 
E. Joint Ventures/Licensing: 
There are distinct advantages in maintaining a local presence in the 
U.A.E.  Local businessmen and government officials prefer to deal with 
someone they know and trust.  Personal relationships are much more 
important to doing business in the Middle East than they are in the 
United States.  In addition, local firms are closer to the local and 
regional market, customers, contacts, and other elements affecting 
business.  
 
In general, U.A.E. law requires that all companies be licensed and at 
least 51 percent owned by U.A.E. nationals.  There are exceptions to 
this rule, the most relevant for U.S. firms being those for firms 
operating within free zones, professional or artisan companies, and 
branches or representative offices.  Each of these exemptions allows 100 
percent foreign ownership, but with restrictions on the allowable scope 
of business activities. 
 
While joint ventures with foreign firms require local majority 
ownership, profit and loss distribution can be prescribed.  There is no 
need to license the joint venture or publish the terms of agreement.  
The foreign partner deals with third parties under the name of the local 
venture.    
 
Banks, insurance, and financial companies must be run as public 
shareholding companies.  This requires minimum capitalization of Dhs. 10 
million (us$ 2.725 million), the chairman and majority of directors 
being U.A.E. nationals, and a more restrictive distribution of profit 
than allowable under a joint venture.  However, foreign banks, insurance 
and financial companies can establish a presence in the U.A.E. by 
operating a branch or representative office.  This option allows 100 
percent foreign ownership, but, in general, limits business activities 
to offshore operations.  
 
Licensing of manufacturing processes is a growing market, especially 
with the U.A.E.'s desire to increase the quality and diversity of local 
production.  However, the total market for industrial licenses remains 
relatively small due to the limited amount of manufacturing done in the 
U.A.E. 
 
The majority of licensing is done for the fabricating and/or marketing 
of trademarked items.   Licensees of U.S. sports logos, universities, 
animated characters, etc., are servicing a very active market with one 
of the world's highest disposable incomes.  Licenses to sell U.S. 
branded products (an authorized dealer), as distinct from a standard 
distribution arrangement, or U.S. logos/names/characters on a non-U.S. 
product, are becoming very sought after, especially in the apparel 
market.  Licensing is often the best way to rapidly and effectively meet 
the current demand, especially among young consumers, for american 
styles.  
 
 
F.  Steps to Establishing an Office: 
In the U.A.E., economic activity is regulated by the individual 
emirates, as well as the federal government.  The exact requirements 
that a U.S. firm setting up an office will face will depend mostly on 
the nature of the business the firm is engaged in, its level of 
involvement in the U.A.E., and the emirate where it locates.  This last 
item is usually the least important, in terms of procedure, because the 
laws are very similar among emirates.     
 
First, firms will need a local sponsor, both for the firm and for its 
resident employees.  A sponsor must be a U.A.E. citizen, or institution, 
such as a free zone.  The sponsor can be involved in the business, or 
simply a service sponsor providing, for a fee, legally required 
administrative functions.   
 
Second, firms are required to be licensed by the emirate of domicile 
before beginning business activities.  In general, individual emirates 
will issue:  Trade Licenses covering all kinds of trading activity;  
Professional Licenses covering professions and services;  Industrial 
Licenses for industrial and manufacturing activities;  and Vocational 
Licenses for craftsmen and artisans.   Licenses for some categories of 
business require approval from certain federal ministries and other 
authorities:  for example, banks and financial institutions from the 
Central Bank of the U.A.E., insurance companies and related agencies 
from the Ministry of Economy and Commerce, manufacturing from the 
Ministry of Finance and Industry, and pharmaceutical and medical 
products from the Ministry of Health.  More detailed procedures apply to 
businesses engaged in oil and gas production and related industries.  
 
In addition to the required licenses, all firms must be registered with 
the chamber of commerce in each of the emirates where the business is 
licensed to operate.  In the U.A.E., chambers are part of the government 
and membership is mandatory.  
 
Firms must decide on the purpose of the office it wishes to establish, 
as this will determine ownership requirements.   For firms conducting 
regional marketing or administrative functions, a representational 
office, allowing 100 percent ownership, may be best.  For firms 
conducting offshore services, a branch office, also allowing 100 percent 
ownership, is suggested.  Establishing an office in any of the free 
trade zones available in the U.A.E., regardless of activity, allows 100 
percent ownership.  While the above options allow maximum ownership, 
they restrict activities allowed in the U.A.E. market itself.         
 
For U.S. firms wanting to establish an office to directly conduct 
business in this market, U.A.E. law requires a joint venture with U.A.E. 
nationals owning a minimum of 51 percent of the venture.  Exceptions to 
this rule include professional or artisan companies where 100 percent 
foreign ownership is permitted. 
 
 
G. Selling Factors/Techniques: 
The commercial tradition of the U.A.E. is that of the middleman or 
trader acting as a conduit for goods from large manufacturers to South 
Asia, the Gulf, and East Africa. Today, with Dubai as the hub, the 
U.A.E. services those markets and North Africa, South Africa, West 
Africa, Central Africa, the rest of the Middle East, and the newly 
independent states of Central Asia.  International trade customs 
(predating letters of credit and international bank finances) 
traditionally required merchants trusting business associates from other 
tribes and ethnic groups with items of value over an extended period of 
time and distance, fostering a business style that put a very high 
premium on personal relationships and perceptions of integrity.  Thus 
price and personal relationships are the key determinants in the U.A.E. 
market. 
 
Traditional approaches to business are beginning to change. One of these 
changes is a more sophisticated understanding of long term value, as 
opposed to initial purchase price, takes hold.  There is a growing 
emphasis on quality, after-sales service, and maintenance requirements 
and costs.  As traditional one man and family businesses get larger and 
more complex there is a layering effect that separates the top echelon 
from all but the most important business decisions.  The many expatriate 
managers of these firms also are not part of this traditional business 
world and bring with them more modern concepts of management. 
 
This new trend, of the impersonal businessman/consumer, has changed some 
of the business style, but does not yet represent the dominant practice.  
Personal relationships, particularly when U.A.E. nationals are involved, 
still predominate.  Since these relationships take time to nurture, U.S. 
firms are advised to invest time in the market with, preferably, a local 
presence, or at least very frequent trips.  This is not an activity that 
can be done long distance.  Face-to-face contact is essential.  In 
addition, U.S. firms should seek a local sponsor, agent, or partner with 
sufficient access and influence in those circles most important to that 
particular business.    
 
In addition to personal relationships, price remains most often the 
dominant buying factor.  For U.S. firms selling to traders, which is the 
dominant business type in the U.A.E., there is no substitute for price. 
Government procurement also places heavy emphasis on selection of the 
low bidder, as long as the lowest price bidder is compliant with all 
technical specifications.  
   
Even though the U.A.E. is relatively less conservative than other Arab 
states and English is widely spoken, sensitivity to local traditions and 
Islamic beliefs is essential, and the use of Arabic in packaging and 
advertising is both desirable and effective in the marketing of consumer 
goods.   
 
 
H. Advertising and Trade Promotion: 
The U.A.E., in particular Dubai, serves as the commercial center for the 
region.  From late September through May, with the exception of the holy 
month of Ramadan, the U.A.E. hosts an almost continuous and growing 
series of well attended major trade exhibitions and conferences.  U.S. 
firms new to this region are advised to consider participation in one of 
these shows as an excellent method of market evaluation and initial 
penetration. 
 
Advertising plays a significant role in sales promotion.  The language 
of business is English.  Only about 30 percent of the population are 
native Arabic speakers from the U.A.E. or other Arab states.  The 
balance of the population is a mixture of South and East Asian, Iranian, 
and European/North American.  However, Arabic is the official language 
and required for all governmental documentation.  In addition, duel 
English/Arabic usage is common on signage and for many publications.  
English-only promotional literature is acceptable, but those that are in 
both English and Arabic have a decided edge as Arabic speakers in key 
decision making positions appreciate the extra effort and sensitivity to 
their culture that bilingual publications imply. Arabic labeling for 
consumer products, especially foodstuffs, is an important advantage in 
competitive marketing.  
 
There are two major English language daily newspapers, the Gulf News and 
Khaleej Times, and several weekly and monthly English language magazines 
that are effective consumer market vehicles.  There are also Arabic and 
third country language publications available.  Radio and television 
broadcasts are primarily in English, Arabic, and Hindi.  The U.A.E., and 
other Gulf states, are Islamic nations and have a different perspective 
on certain issues than non-Islamic states.  U.S. firms are strongly 
urged to consider cultural sensitivities in the preparation of any 
promotional activity.  
 
It is important to stress quality since U.S. foods tend to be higher 
priced than products from other origins.  Gulf consumers recognize the 
high quality of U.S. food products and are willing to pay a premium for 
such products. 
 
 
List of Newspapers: 
English Newspapers 
 
Gulf News 
P.O. Box 6519, Dubai, UAE 
Tel. 971-4-447100, Fax. 971-4-441627 
Contact Mr. Nihal Kaniera, Senior Editor 
 
Khaleej Times 
P.O. Box 11243, Dubai, UAE 
Tel. 971-4-382400, Fax. 971-4-382238 
Contact: Mr. Nihal Singh, Exec. Editor 
 
Emirates News 
P.O. Box 791, Abu Dhabi, UAE 
Tel. 971-2-451446, Fax. 971-2-453662 
Contact: Mr. Peter Hellyer, Managing Editor 
 
Arabic Newspapers 
 
Al Khaleej 
P.O. Box 30, Sharjah, UAE 
Tel. 971-6-598777, Fax. 971-6-599336 
Contact: Mr. Ghassan Tahboub, Managing Editor 
 
Al Bayan 
P.O. Box 2710, Dubai, UAE 
Tel. 971-4-444400, Fax. 971-4-447846 
Contact: Mr. Khaled Mohammed, Editor 
 
Al Ittihad 
P.O. Box 791, Abu Dhabi, UAE 
Tel. 971-2-455555, Fax. 971-2-451653 
Contact: Mr. Obeid Sultan, Managing Editor 
  
Al Fajer 
P.O. Box 505, Abu Dhabi, UAE 
Tel. 971-2-478300, Fax. 971-2-478436 
Contact: Mr. Obeid Al Mazroui, Chief Editor 
 
 
I. Pricing Products: 
For consumer goods, price is the primary buying factor for the middle 
and lower classes.  These market segments are served through small 
stores and shops in traditional souks, or markets.  Retailers in this 
category operate under razor thin margins, one to two percent is common, 
and rely on volume.  Since the population of the U.A.E. is small, 
approximately 2.4 million, the volume is supplemented by the over one 
million business and tourist visitors that come to the U.A.E. each year.  
At the other end of the scale is the very large number of U.A.E. 
nationals, expatriate residents, and visitors that have considerable 
purchasing power.  For this group price is not a primary buying factor 
and retail margins are exceptionally high.   This segment is serviced 
through specialty shops.  U.S. exporters must be ready to use price 
aggressively to gain market share in order to gain market acceptance of 
their products non-price features.    
 
The average importer markup on food products is about 10-15 percent.  
Retail food prices are generally 20-30 percent above import/wholesale 
prices.   
 
 
J. Sales Service/Customer Support: 
The commercial and industrial markets are also very competitive. For 
these markets price is also a key purchase factor, but quality, 
durability, and after-sales service are increasingly becoming dominant 
determinants for purchases by government and business.  The increasing 
emphasis on after-sales service favors those products backed by local 
distributors with adequate part stocks and routine maintenance 
capabilities.  The training of qualified maintenance and repair 
personnel is a critical marketing factor when catering to the more 
sophisticated end of the market.  
 
 
K. Selling to the Government: 
Government buyers are either the federal or emirate governments.  
Federal purchases are administered through the respective agency in Abu 
Dhabi or Dubai.  Purchases by the emirates are arranged by the relevant 
local authority, often with the assistance of a federal agency.  In most 
cases for non-military purchases, government entities will deal only 
with firms registered in the U.A.E., or the particular emirate, and will 
favor local products over imports.  Only when a good or service of 
acceptable quality is not available locally will the procurement 
authority seek outside sources.  It is common for bids not to go out on 
a public tender, but are sent to select firms that were prequalified 
with the organization in question.     
 
There are two military structures in the U.A.E. operating under the 
Ministry of Defense: the national military elements (Army, Air Force, 
Navy) reporting to the General Headquarters (GHQ) in Abu Dhabi; and 
Dubai's Central Military Command.  The federal organization is 
significantly larger.  Its procurement rules prohibit the use of agents, 
and requires the use of offset arrangements for 60 percent of the value 
of the contract.  The Central Military Command allows, but does not 
require, a Dubai-based agent, but there are no offset requirements. 
                
For all types of government procurement and projects, U.S. firms are 
encouraged to seek a presence in the U.A.E,  and get their 
goods/services prequalified to bid.  Competition in the public sector is 
very strong.  Besides some very large military procurement projects, 
governments in the U.A.E. are investing heavily in infrastructure 
projects such as roads, power generation and distribution systems, 
desalination facilities, sewage systems, public housing, recreational 
facilities, hospitals and other    medical facilities and services, 
schools, athletic facilities, refineries and other hydrocarbon 
facilities, airports, government buildings, and many other areas.  U.S. 
goods and services enjoy an outstanding reputation for quality, but, 
with the exception of hydrocarbon-related industries, are under-
represented in this market. 
 
 
L. Protecting Your Product from Copyright Infringement: 
The U.A.E. was a major center for the production, sale, and export of 
pirated and counterfeit products.  However, during the last two years 
the U.A.E. government has passed new IPR laws and begun enforcement 
actions aimed at reducing or eliminating such practices, and bringing 
its IPR regime up to international standards.  While there has been 
considerable improvement in the overall IPR situation, particularly in 
copyright enforcement for audio and video recordings, and to a lessor 
but still significant extent for software, there remain important IPR 
issues yet to be addressed.  This is particularly true in the patent 
area, especially for pharmaceuticals.  It is significant that the U.A.E. 
has joined the General Agreement on Tariffs and Trade (GATT), and wants 
to become a member of the World Trade Organization.  Membership in the 
GATT requires adherence to certain minimum standards of IPR protection, 
which should help sustain and expand the initiatives already taken.  The 
U.A.E. is currently on the U.S. Watch List administered by the U.S. 
Special Trade Representative because of its IPR deficiencies.  However, 
in recognition of its efforts to improve its IPR regime, the U.A.E. will 
be the subject of a mid-cycle review in the fall of 1995, the findings 
of which could change its Watch List status.  U.S. firms wanting to 
register their trademarks, copyrights, or patents in the U.A.E. should 
contact local legal counsel for assistance.   
 
 
M. Need for a Local Attorney: 
The need for a local attorney will obviously be affected by the size, 
complexity, and nature of the business to be conducted.  However, there 
are some general points that U. S. firms should consider before doing 
any type of business in the U.A.E.  First, the legal system of the 
U.A.E. is very different from that of the U.S.  Prior to the modern era, 
business was conducted according to the dictates of religious law, The 
Sharia, and traditional custom.  Codified law based on modern standards 
is new and still evolving, as are practices based on the law, such as 
court and other legal procedures.  Second, where laws appear to govern 
certain practices according to commonly accepted principles, terms and 
definitions are often at variance with usual interpretations.  What the 
law says is one thing, what the law means is another thing.  Third, the 
requirements of licensing, registration, sponsorship, immigration and 
labor laws for a workforce almost totally expatriate, the difficulty of 
termination of agency agreements, partnership requirements, and the 
preferences given to locals in dispute resolution, among other 
differences with the U.S. system, argue strongly for U.S. firms to 
consult local legal counsel.  There are many law firms with experience 
in dealing with U.S. clients, and some U.S. attorneys experienced in the 
local market.  
 
 
 
CHAPTER V: LEADING SECTORS FOR U.S. EXPORTS AND INVESTMENT 
 
NON AGRICULTURAL: 
 
Part 1. Title Line: Best Prospects- U.A.E.   
Rank of sector:  1      
Name of sector:  Architecture/Construction/Engineering Services 
Three-letter ITA Industry sector code:  ACE  
 
Part 2. Narrative: 
The ACE related services are increasing in Abu Dhabi and Dubai, less so 
in the Northern Emirates.  The increase is based on UAE government 
agencies developing plans for the year 2010.  In Abu Dhabi, the 
government has allocated US$ one billion for the construction of 1,666 
high rise buildings and villas and a new ministries area to house 
federal government headquarters. Similarly, in Dubai the ACE related 
major projects include Chicago Beach Hotel, which will cost US$327 
million for which two U.S. contractors, J.A. Jones Construction and 
Turner Steiner are competing and the expansion of Dubai international 
airport, valued at US$200 million, for which International Bechtel is 
the consultant.  U.S. firms such as Alliance Architects, Hellmut, Obata 
& Kassabaum, MMM, Turner Construction and J.A. Construction are new 
entrants to the UAE market.  
Government laws call for preregistration and prequalification.   
Strong competition comes from local, European, Korean and Canadian 
firms. 
 
In 1994, the U.S. market share was 25 percent. 
There are no regulatory/demand issues affecting the market.   
 
The most promising subsectors within this sector, with the estimated 
1996 total market size of each:      
 
o Mining Engineering Services                     300 
o Petrochemical engineering services              200 
o Energy Conserv/Bldgs: Design/Retro-fit          100 
o Designing Engineering          50     
 
Part 3.  Data table: 
                                1994         1995         1996 
 
Total market sales              1012         1124         1405 
Sales by local firms            251          271          338.7 
Sales by local firms            0            0            0 
Sales by Foreign owned firms    761          853          1066.25 
Sales by US owned firms         250          293          366.25 
 
The above statistics are unofficial estimates. 
Exchange rates used US$ 3.671  
 
*NOTE: Reexports indicated where total imports exceed market size. 
 
Part 1. Title Line: Best Prospects - U.A.E.   
Rank of sector: 2    
Name of sector: Defense Industry Equipment 
Three-letter ITA Industry sector code:  DFN 
 
Part 2.  Narrative:  
There are two principal entities in the U.A.E. engaged in the 
procurement of defense equipment - the General Headquarters of the Army 
(GHQ) in Abu Dhabi and the Central Military Command (CMC) in Dubai.  
U.S. firms wishing to do business with the UAE Military must register 
their interest with the Director General of Purchasing.  Only pre-
qualified companies are invited to bid in tenders.  Defense equipment, 
including the navy and air force, ranges between spare parts for armored 
vehicles to communications and fighter planes.   
 
GHQ has plans to purchase Air Defense systems, four frigates, 80 fighter 
planes, heavy duty armored trucks and the expansion of its Command 
Control and Communication (CCC) project.  Currently, Westinghouse is 
working on US$300 million contract for the upgrade of its CCC.  AT&T was 
awarded US$120 million fiber optic project in March of this year. 
 
Major competitors include companies from Russia, U.K. France, Germany, 
Italy and Spain. 
 
In 1994, the U.S. market share was 30 percent. 
There are no regulatory/demand issues affecting the market.   
 
The most promising subsectors within this sector, with the  
estimated 1996 total market size of each:      
  o Heavy duty armored trucks      350 
  o CCC Communications             150 
  o Telecommunication spare parts   70 
 
Part 3  Data table: 
 
                                1994         1995         1996 
 
Total market size               700          900          1,500 
Total local production          0            0            0 
Total exports*                  0            0            0 
Total imports                   700          900          1,500 
Total imports from U.S.         210          315          450 
 
The above statistics are unofficial estimates. 
 
Exchange rates used US$ 3.671  
 
*NOTE: Reexports indicated where total imports exceed market size. All 
figures are estimates in millions of USD. 
 
Part 1. Title Line:   Best Prospects- U.A.E.   
Rank of sector:  3    
Name of sector: Oil and Gas-Field Machinery & Services 
Three-letter ITA industry sector code:  OGM 
 
Part 2. Narrative: 
Major oil and gasfield projects are the backbone of Abu Dhabi's economic 
program.  Recently, the Supreme Petroleum Council approved several major 
projects, including the expansion of Ruwais refinery, valued at US$1.5 
billion and Ruwais petrochemical complex valued at US$1.5 billion.  
Fluor Daniel, Foster Wheeler and MW Kellogg, all U.S. firms were 
shortlisted for the Ruwais refinery expansion.   Several U.S. firms are 
expected to compete for the Petrochemical complex.   
 
Although U.S. suppliers dominate this industry, competitors from Europe 
such as B.P, Technip, John Brown Engineering, and Japanese firms 
including Mitsui Corp., Chiyoda, and Mitsubishi is intense. 
 
In 1994, the U.S. market share was 48 percent. 
There are no regulatory/demand issues affecting the market.   
 
The most promising subsectors within this sector, with the estimated 
1996 total market size of each:  
 
o  Oil/Gas Field Mach/Svcs: Oilfield Eq         300 
o  Oil/Gas Pipeline Con Eq: Compres/Cntrls      150 
o  Oil and Gas Pipeline Systems                 100 
o  Oil/Gas Field Mach/Svcs: Chemicals           60 
 
Part 3.  Data table:  
                                1994         1995         1996 
 
Total market size               539          590          708 
Total local production          0            0            0 
Total exports*                  36           40           25 
Total imports                   575          630          733 
Total imports from U.S.         259          285          342 
 
The above statistics are unofficial estimates. 
Exchange rates used US$ 3.671  
 
NOTE: Reexports indicated where total imports exceed market 
      size. All figures are estimates in millions of USD. 
 
 
 
Part 1.  Title Line: Best Prospects - UAE 
Rank of Sector: 4 
Name of Sector: Construction Equipment  
ITA Industry Code: CON 
 
Part 2.  Narrative: 
The construction industry is one of the most active sectors of the UAE 
economy.  The government has earmarked two billion dollars for the 
construction of new infrastructure projects and  government, commercial, 
and residential buildings in 1995.  In addition, new investment by the 
private sector for commercial and residential construction during 1995 
is expected to reach one billion dollars.   
 
Industry sources are confident that the upward trend in the construction 
industry will continue during the next three years. Thus additional 
construction equipment will be in demand to support this high level of 
construction activity in the UAE. 
 
All construction equipment needs are met through imports. U.S. market 
share is expected to increase during the next three years.  Market 
sources related in growth directly to prices as a result of the 
appreciation of the Japanese Yen against the dollar.  In addition, U.S. 
manufacturers and exporters enjoy an excellent reputation for product 
quality and durability. 
 
The most promising subsector within this sector, with the estimated 1996 
total market size of each: 
 
O  Heavy Construction Machinery             113.8 
O  Road Construction Machinery               99.4 
O  Earth Moving Machinery                    89.2 
 
Part 3.  Data table:  
 
                                1994         1995         1996 
 
A: Total Market Size            272.9        317.9        356.4 
B: Total Local Production       0            0            0 
C: Total Exports*               106.2        123.6        138.5 
D: Total Imports                379.1        441.5        494.9 
E: Imports From U.S.A.          156.8        184.4        213.8 
 
Exchange Rate: USD 1 = Dhs. 3.673 
The above statistics are unofficial estimates in millions of U.S. 
dollars. 
 
*NOTE: Reexports indicated where total imports exceed market size. 
 
POTENTIAL GROWTH FOR U.S. EXPORTS IS 17 % 
 
Part 1.  Title Line: Best Prospects - UAE 
Rank of Sector:  5 
Name of Sector: Building Products 
ITA Industry Code: BLD 
 
Part 2.  Narrative: 
The UAE import of building products is influenced largely by the level 
of construction activities.  Local market demand for building products 
is growing rapidly as public and private sectors are floating tenders 
for the construction of diversified commercial residential and 
institutional buildings.  Local importers and distributors of building 
products indicated that U.S. manufacturers/suppliers have an excellent 
reputation for supplying quality-engineered products and foresee an 
increase in the U.S. market share.  The primary reason for this expected 
growth is due to the satisfaction among end-users with the quality of 
the U.S. building products.  There are no significant trade barriers to 
the importation and sale of building products in the UAE. Custom duties 
are four percent. 
 
The most promising subsector within this sector, with the estimated 1996 
total market size of each: 
 
o  Wood & Wood Products             184.2 
o  Architectural Glass              146.7 
o  Electrical Products              132.4 
o  Ceramic Products                 122.1 
o  Plumbing Products                 63.4 
 
Part 3.  Data Table: 
 
                                1994         1995         1996 
 
A: Total Market Size            998.9      1,175.9      1,380.1 
B: Total Local Production       165.4        183.2        208.8 
C: Total Exports*               213.6        263.8        311.3 
D: Total Imports              1,047.1      1,256.5      1,482.6 
E: Imports From U.S.A.          125.6        150.8        177.9 
 
Exchange Rate: USD 1 = Dhs. 3.673 
 
The above statistics are unofficial estimates in millions of U.S. 
dollars. 
*NOTE: Reexports indicated where total imports exceed market size. 
 
POTENTIAL GROWTH FOR U.S. EXPORTS IS 20 % 
 
Part 1.  Title Line: Best Prospects - U.A.E. 
Rank of sector:  6 
Name of sector: Water Resources Equipment 
Three-letter ITA industry sector code:  WRE 
  
Part 2: Narrative:   
U.A.E. imports of water resources equipment in 1994 amounted to US$470 
million.  The water desalination equipment segment alone amounted to 
US$376 million.  The Government has allocated US$1.5 billion for the 
development of its power and water desalination capacity during 1995/6.  
Among the largest projects planned 
is the final phase "C" of the Abu Dhabi Taweelah Power/Water 
Desalination plant calling for the addition of power generation of 400 
MW and water desalination production capacity of 40 mgpd.  Taweelah "C" 
is reported to be planned for implementation in 1996.  Demand for water 
has been growing at a rate of 20 percent per annum.  More than 20 
percent of water is used for irrigation and agricultural purposes. 
 
U.S. companies face tough competition from French, Italian, British, 
German and Japanese companies. 
 
In 1994, the U.S. market share was 21 percent. 
 
There are no regulatory/demand issues affecting the market.   
 
The most promising subsectors within this sector, with the estimated 
1996 total market size of each:      
  
 o  Desalination equipment         385 
 o  Irrigation Equipment           75 
 o  Water supply/Dist. systems     100 
 
Part 3.  Data table: 
 
                                1994         1995         1996 
 
Total market size               422          509          555 
Total local production          0            0            0 
Total exports*                  48           51           55 
Total imports                   470          560          610 
Total imports from U.S.         99           151          157 
 
The above statistics are unofficial estimates. 
Exchange rates used US$ 3.671  
 
*NOTE: Reexports indicated where total imports exceed market 
       size. All figures are estimates in millions of U.S. 
       dollars. 
 
Part 1.  Title Line: Best Prospects - UAE 
Rank of Sector: 7 
Name of Sector: Airconditioning & Refrigeration 
ITA Industry Code: ACR 
 
Part 2. Narrative: 
The combination of booming construction sector, high population growth 
and harsh climatic conditions make the UAE excellent market for 
airconditioning and refrigeration equipment.  Total new investment by 
the private sector alone in office/residential construction during 1995 
is expected to reach one billion dollars. 
 
The United States and Japan together supply over 50 percent of the UAE 
import market.  During 1994, the United States became a leading supplier 
of airconditioning and refrigeration equipment to the UAE.  The key 
factor that boosted the demand for U.S. made products in 1994 is the 
relatively weak position of the U.S. Dollar against the Japanese Yen. 
 
Use of CFC (Chlorinated Fluor Carbon) is not prohibited but there is a 
tendency to replace it by non hazardous chemicals that will not affect 
the ozone layer in the atmosphere. 
 
The most promising subsector within this sector, with the estimated 1996 
total market size of each: 
 
o  Central Airconditioning             95 
o  Window Airconditioning              59 
o  Mini Split Airconditioning          61 
o  Cold Storage Equipment              60 
 
Part 3.  Data table: 
 
                                1994         1995         1996 
 
A: Total Market Size            215          247          282 
B: Total Local Production       11           12           14 
C: Total Exports*               52           60           68 
D: Total Imports                256          295          336  
E: Imports From U.S.A.          82           106          135  
 
Exchange Rate: USD 1 = Dhs. 3.673 
 
The above statistics are unofficial estimates in millions of U.S. 
dollars. 
 
*NOTE: Reexports indicated where total imports exceed market size. 
 
POTENTIAL GROWTH FOR U.S. EXPORTS IS 28 % 
 
Part 1.  Title Line: Best Prospects - UAE 
Rank of Sector:  8 
Name of Sector: Computers/Peripherals 
ITA Industry Code: CPT 
 
Part 2.  Narrative: 
Computer utilization is on the rise with current computer users moving 
towards upgraded and higher capacity computers.  Government offices and 
businesses are shifting from mainframes to more flexible, faster and 
cheaper micro computers or personal computers in networking 
environments. 
 
The current price war in the computer industry in the U.A.E. have made 
computers of U.S. origin more affordable; and making it more attractive 
to persons who wish to buy quality products.  In 1994 U.S. market share 
rose to 46 percent against 35 percent in 1993.  U.S. computer 
manufacturers are looked upon as market leaders and will maintain their 
edge to the extent that they continue to be able to introduce state-of-
the-art technology and products at competitive prices.  Major 
competitors are Japan, U.K., Netherlands, Taiwan and Singapore. 
It is estimated that re-exports to Iran for computers/peripherals will 
increase due to U.S. sanctions in place. 
 
There are no regulatory/demand issues impacting the market. 
 
The most promising subsectors within this sector, with the estimated 
1996 total market size of each: 
 
o    Personal Computers           70 
o    Workstations                 45 
o    Computer Monitors            40 
o    Printers, computer           38 
o    LAN equipment                34 
o    Modems                       23 
 
Part 3.  Data table: 
 
                                1994         1995         1996 
 
A.   Total Market Size          164          203          251 
B.   Total Local Production     0            0            0 
C.   Total Exports*             66           73           80 
D.   Total Imports              230          276          331 
E.   Imports from the U.S.      75           90           110 
 
Exchange Rate: USD 1 = Dhs. 3.673 
 
The above statistics are unofficial estimates in millions of U.S. 
dollars. 
 
*NOTE:  Reexports indicated where total imports exceed market size. 
Potential Growth for U.S. = 41% 
 
Part One.  Title Line: Best Prospects- U.A.E. 
Rank of Sector:  9    
Name of sector: Telecommunications Equipment 
Three-letter ITA Industry sector code:  TEL 
 
Part 2.  Narrative: 
ETISALAT is the local PTT of the UAE.  During the next two years, 
ETISALAT plans to invest an average of US$300 million per year in the 
procurement & expansion of telecommunication services.  In addition they 
have appointed a German consultant to prepare a feasibility study for 
the purchase of two satellites.  The project is expected to cost US$250-
300 million. 
 
Other end users include Abu Dhabi National Oil Company (ADNOC), Dubai 
Petroleum Company,  Ministry of Interior and the UAE Armed Forces/GHQ.  
ADNOC's subsidiary ZADCO awarded Societech of France a US$70 million 
telemetry/SCADA contract this year.  Similarly, Westinghouse, AT&T, 
Northern Telecomm are competing with Marconi/Plessey, British Telecom 
and Alcatel for large communication projects in the UAE Armed Forces.  
U.S. companies face strong competition from Japanese, British and French 
companies. 
 
In 1994, the U.S. market share was 13 percent. 
There are no regulatory/demand issues affecting the market.   
 
The most promising subsectors within this sector, with the estimated 
1996 total market size of each:      
 
o    Satellite Telecommunications Equipment   300 
o    Fiber optic transmission equipment       100 
o    Telephone switching systems              80          
o    Local Area Networks                      50 
o    Telecommunications: ISDN Equipment       50 
o    Teleconferencing Equipment               20 
    
Part 3.  Data Table: 
                                1994         1995         1996 
 
Total market size               401          441          535 
Total local production          0            0            0 
Total exports*                  128          141          155 
Total imports                   529          582          690 
Total imports from U.S.         45           50           90 
 
The above statistics are unofficial estimates. 
Exchange rates used US$ 3.671  
All figures are estimates in millions of U.S. dollars. 
 
*NOTE: Reexports indicated where total imports exceed market 
       size.  
 
Part One.  Title Line: Best Prospects- U.A.E. 
Rank of sector: 10    
Name of sector: Electric Power Systems 
Three-letter ITA Industry sector code:  ELP 
 
Part 2.  Narrative: 
U.A.E. power demand is projected to increase to 6,900 MW by 1999, up 
sharply from 4,200 MW in 1994.  Electricity consumption is rising 15-20 
percent annually.  Existing expansion plans include the expansion of 
Taweelah "A",  the final phase "C" of the Abu Dhabi Taweelah Power/Water 
Desalination plant calling for the addition of power generation of 400 
MW and water desalination production capacity of 40 mgpd.  Taweelah "C" 
is reported to be planned for implementation in 1996.  Dubai Electricity 
and Water Authority has plans to construct a 600MW power station at Al-
Awir.  Bid deadline for this US$272 million project is mid-July 1995.  
 
Early this year, the Federal Ministry of Electricity and Water awarded 
two separate turbine contracts, to General Electric for US$60 million & 
European Gas Turbine (EGT) for US$30 million, both of which will supply 
seven gas turbines to produce 210 MW of power.  Kuljian Corporation is 
presently drawing up a 25 year study of water and electricity needs for 
the northern emirates, where power and water shortages are most acute.  
Similarly, International Bechtel is studying water and electricity 
demand for the Emirate of Abu Dhabi, until the year 2010.   
 
Major competitors include ABB, Siemens, Ansaldo, Mitsubishi, John Brown, 
and Nuova Pignoni. 
 
In 1994, the U.S. market share was 13.6 percent. 
 
There are no regulatory/demand issues affecting the market.   
 
The most promising subsectors within this sector, with the  
estimated 1996 total market size of each:   
    
  o Electrical generating equipment/turbines          313    
  o Electrical distribution & transmission equipment  67 
  o Electrical power distribution                     63 
 
Part 3.  Data Table: 
 
                                1994         1995         1996 
 
Total market size               360          396          475 
Total local production          0             
Total exports*                   
Total imports                   407          449          535 
Total imports from U.S.         49           54           90 
 
The above statistics are unofficial estimates. 
Exchange rates used US$ 3.671  
 
*NOTE: Reexports indicated where total imports exceed market size.  All 
figures are estimates in millions of USD. 
 
Part 1.  Title Line:  Best Prospects - U.A.E. 
Rank of Sector: 11 
Name of Sector: Automotive Parts and Service Equipment 
ITA Industry Code: APS 
 
Part 2.  Narrative: 
With per capita income among the highest in the world, the automotive 
sector has traditionally fared well in this small but lucrative market.  
U.S. cars are increasing market share due to more favorable exchange 
rates vis-a-vis Japan and Germany.  Most well known brand names are 
already represented in this highly competitive market.  Local companies 
are increasingly interested in joint ventures/licensing agreements to 
manufacture in the U.A.E. items such as spark plugs, shock absorbers, 
air/oil/fuel filters etc. for the regional market.  SRF Limited, India 
is currently setting up a tire cord factory with an investment level of 
US$27 million in the Jebel Ali Free Zone.  Trial runs are scheduled for 
November 1995 with exports to India initially, with the objective of 
ultimately entering other markets.  U.S. market share for 1994 was 14 
percent.  It is estimated that re-exports to Iran for automotive parts 
and service equipment will increase due to U.S. sanctions in place on 
June 5, 1995. 
 
There are no regulatory/demand issues impacting the market. 
 
The most promising subsectors within this sector, with the estimated 
1996 total market size of each: 
 
o Automotive Engine Parts                      153 
o Automotive Repair Maintenance Equipment      46 
o Automotive Accessories                       41 
o Motor Vehicles H/V/A/C Equipment             23 
o Automotive Electronic Parts                  15 
 
Part 3.  Data Table: 
 
                                1994         1995         1996 
 
A.   Total Market Size          267          295          327 
B.   Total Local Production     0            0            0 
C.   Total Exports*             119          137          157 
D.   Total Imports              386          432          484 
E.   Imports from the U.S.      38           42           46 
 
Exchange Rate: USD 1 = Dhs. 3.673 
The above statistics are unofficial estimates in millions of U.S. 
dollars. 
 
*NOTE:  Reexports indicated where total imports exceed market 
        size. 
 
Potential Growth for US = 8% 
 
Part One.  Title Line: Best Prospects- U.A.E. 
Rank of sector:   12 
Name of sector: Security & Safety Equipment 
Three-letter ITA industry sector code:   SEC  
 
Part 2.  Narrative: 
With the  allocation of Abu Dhabi government of US$ one billion in the 
construction area together with a new ministries area to house federal 
government headquarters, there is a very good market for safety and 
security equipment.  Similarly, the development of additional hotels by 
Dubai's Commerce and Tourism Promotion Board should present 
opportunities for access control and fire and smoke detection equipment.  
There are 58 banks operating in the UAE.  Most offer ATM services and 
are required by the UAE Central Bank to provide maximum security alert 
equipment.  The  UAE Government is serious to provide safeguards to its 
industrial installations, airports, petrochemical plants, industrial 
zones and marine surveillance.  Opportunities in this field alone 
represent more than US$15 million annually. 
 
In 1994, the U.S. market share was 24 percent. 
 
There are no regulatory/demand issues affecting the market.   
 
The most promising subsectors within this sector, with the estimated 
1996 total market size of each:      
 
o Alarms & other detection apparatus         25 
o Industrial Security Equipment              25 
o Electronic Surveillance/Access control Eq. 15 
o Banking Automation & Security Systems      10 
o Hotel Security systems                      5 
 
Part 3.  Data Table: 
                                1994         1995         1996 
 
Total market size               135          149          160 
Total local production          0            0            0 
Total exports*                  26           28           32 
Total imports                   161          177          192 
Total imports from U.S.         38           42           46 
 
The above statistics are unofficial estimates. 
Exchange rates used US$ 3.671  
 
*NOTE: Reexports indicated where total imports exceed market   
       size. 
 
Part 1.  Title Line:  Best Prospects - U.A.E. 
Rank of Sector: 13 
Name of Sector: Cosmetics/Toiletries 
ITA Industry Code: COS 
 
Part 2.  Narrative 
Innovative new product formulations and increased promotional activity 
characterize this highly competitive market.  Opportunity for further 
development and expansion exist especially for hypo-allergenic and 
therapeutic skin care products.  Demographic trends indicate an ageing 
population which offers potential further growth for anti-ageing 
products.  U.S. market share for the U.A.E. is 15 percent.  U.S. 
companies offering natural cosmetic/toiletry products comparable to the 
Body Shop, U.K. have excellent potential in the U.A.E. 
 
Market share for U.S. and competitor countries for total imports into 
the U.A.E. are: U.S. 11%; France 28%; U.K. 16%; Germany 6%; Italy 3% and 
Spain 2%. 
 
Cosmetic creams which offer recuperative or restorative skin care must 
be approved by the Ministry of Health before market entry into the 
U.A.E. 
 
The most promising subsectors within this sector, with the estimated 
1996 total market size of each: 
 
o Cosmetics                     69 
o Perfumes                      58 
o Skin Care Products            41 
o Haircare Products             35 
o Cosmetics & Toiletries - Men  29 
 
Part 3.  Data Table: 
 
                                1994         1995         1996 
 
A.   Total Market Size          202          228          256    
B.   Total Local Production     16           18           19 
C.   Total Exports*             88           97           107 
D.   Total Imports              274          307          344 
E.   Imports from the U.S.      30           35           40 
 
Exchange Rate: USD 1 = Dhs. 3.673 
The above statistics are unofficial estimates in millions of U.S. 
dollars. 
 
*NOTE:  Reexports indicated where total imports exceed market 
        size. 
 
Potential Growth for U.S. = 18% 
 
Part 1.  Title Line: Best Prospects - U.A.E. 
Rank of Sector: 14 
Name of Sector: Franchising 
ITA Industry Code: FRA 
 
Part 2.  Narrative: 
It is increasingly being recognized in the U.A.E. that in most instances 
franchise operations is a relatively safe and profitable business 
concept with fewer risks than traditional distribution/retail practices.  
U.A.E. investors seek successful, efficient, and reliable franchises to 
develop.  Although many major franchise operations are already in the 
U.A.E., this sector is still underdeveloped relative to potential 
demand.  Industry experts expect the number of franchise operations to 
grow at a rate in excess of 20 percent over the next few years.  The 
U.S. enjoys an excellent reputation for the variety, quality, and name 
recognition of its franchises.  U.S. franchising companies are advised 
to seriously consider entry into the U.A.E. and assess the market 
potential for their particular type of operations.  It is estimated that 
U.S. market share was 57 percent for 1994. 
 
Franchisors in the food industry should ensure that all packaging of 
their food products is as required under U.A.E law.  There are no 
regulatory/demand issues impacting the market. 
 
The most promising subsectors within this sector, with the estimated 
1996 total market size of each: 
 
o   Franchising: Soft drinks          60 
o   Franchising: Fast Food            80 
o   Franchising: Automotive           43 
o   Business to Business Services     12 
 
Part 3.  Data Table: 
 
                                1994         1995         1996 
 
A.   Total Market Size          156          181          208 
B.   Total Local Production     14           15           15 
C.   Total Exports*             0            0            0 
D.   Total Imports              142          166          193 
E.   Imports from the U.S.      47           86           105 
 
Exchange Rate: USD 1 = Dhs. 3.673 
The above statistics are unofficial estimates in millions of U.S. 
dollars. 
 
*NOTE:  Reexports indicated where total imports exceed market 
        size. 
 
Potential Growth for U.S. = 18% 
 
Part One.  Title Line: Best Prospects - U.A.E. 
Rank of Sector:  15 
Name of sector: Medical Equipment 
Three-letter ITA industry sector code:  MED     
 
Part 2. Narrative: 
Comments: The Ministry of Health's budget for 1996 is estimated at $600 
million.  During the next two years, approximately $400 million will be 
spent on construction and procurement of equipment for several clinics 
and hospitals.  New projects include a 150 bed psychiatry and Neurology 
hospital and narcotics prevention center; the extension of the present 
Corniche hospital to 480 bed pediatric hospital; 20 VIP wings at Medina 
Zayed hospital; rehabilitation hospital in Abu Dhabi; a 200 bed general 
hospital in Ajman and a 150 bed hospital in Dubai (Al Barahq hospital). 
 
Major imports from the U.S. continues to be diagnostic, therapeutic and 
patient monitoring equipment as they are perceived as sources of new and 
high technology.  
 
The U.K., and Germany are the major competitors. 
 
In 1994, the U.S. market share was 20 percent. 
 
There are no regulatory/demand issues affecting the market.   
 
The most promising subsectors within this sector, with the estimated 
1996 total market size of each:      
 
o Diagnostic eq: CAT/MRI/Radiology        30 
o Disposable medical products             25 
o Patient Monitoring Systems/Apparatus     7 
o Physiotherapy Equipment                  7 
o Anesthesia and Resuscitation Equipment   5 
 
Part 3.  Data Table 
 
                                1994         1995         1996 
 
Total market size               87           94           100.5 
Total local production          0            0            0 
Total exports*                  9            10           11 
Total imports                   78           84           89.5 
 
Total imports from U.S.   17   19.3   22 
The above statistics are unofficial estimates. 
Exchange rates used US$ 3.671  
 
*NOTE: Reexports indicated where total imports exceed market 
       size. All figures are estimates in millions of USD. 
 
Part 1.  Title Line: Best Prospects - U.A.E. 
Rank of sector: 16 
Name of sector: Airport/Ground Support Equipment 
Three-letter ITA industry sector code: AVG 
 
Part 2. Narrative: 
There are six international airports and two military bases in  United 
Arab Emirates.  Some of these airports are planned for expansion during 
1995/1998.  Abu Dhabi Public Works Department (PWD) has prequalifed 
turnkey contractors for the construction of an additional runway at Abu 
Dhabi International Airport and construction of a VIP lounge and three 
hangers for Amiri (Royal) Flights Directorate.  These projects in Abu 
Dhabi will cost well over US$150 million. The winning contractor will be 
responsible for supplying the necessary airport ground support 
equipment.   
 
Dubai's Civil Aviation Department has selected Int'l Bechtel, Inc. of 
the U.S. as consultant for the construction of new passenger terminal 
building to accommodate 22 aircraft.  Contractors for this US$100 
million project are expected to be invited to bid by end of 1995 or 
early 1996. Other plans in Dubai include construction of a new airport 
in Dubai to support bi-annual Dubai Airshow event, and construction of 
an 82/78 meters hanger to house Royal Flight B-747 at a cost of US$ 110 
million. 
 
In 1994, the U.S. market share was 24 percent. 
 
There are no regulatory/demand issues affecting the market. 
 
The most promising subsectors within this sector, with the estimated 
1996 total market size of each. 
 
Airport Control Systems            18 
Airport Ground Support Equipment   11 
Commercial Maintenance             13     
 
Part 3.  Data Table: 
 
                                1994         1995         1996 
 
Total market size               23           37           45 
Total local production          0            0            0 
Total exports*                  5            4            7 
Total imports                   28           41           52    
Total imports from U.S.         7            13           19 
 
The above statistics are unofficial estimates. 
Exchange rates used US$ 3.671 
 
Part 1.  Title Line:  Best Prospects - U.A.E. 
Rank of Sector: 17 
Name of Sector: Pollution Control 
ITA Industry Code: POL 
 
Part 2. Narrative: 
Although the environmental control industry is only at its infancy, 
protection of the local environment has drawn the attention of various 
UAE government authorities.  In 1993, the UAE formed the new Federal 
Environmental Agency (FEA).  It will have the power to draft, carry out 
studies and propose general environmental policies in the country.   
 
The principal areas of pollution which are of most concern in the UAE 
are the inadequate handling and recycling of solid waste, treatment of 
hazardous waste, and upgrading the standards of governmental hospital 
incinerators.  In addition the UAE is facing problems with the 
salination and fast depletion of its underground water supplies.  
Therefore, the government has been focusing on reusing sewage water for 
irrigation to meet increasing demand for water.  Priority has been given 
to sewage and rain water drainage projects and landfills that use modern 
technology.    
 
U.S. Manufacturers of pollution control equipment have competitive 
advantages over third-country suppliers in the UAE market since their 
equipment is designed to meet U.S. EPA requirements which are accepted 
internationally.  
 
UAE firms will allocate substantial funds to purchase pollution control 
equipment as the new Federal Environmental Agency starts enforcing new 
legislative requirements for the protection of the UAE environment.    
 
The most promising subsector within this sector, with the estimated 1996 
total market size of each: 
 
o  Solid waste management equipment          33 
o  Water treatment                           16 
o  Air pollution control/measuring equipment 15 
 
Part 3. Data Table: 
 
                                1994         1995         1996 
 
A: Total Market Size            56           60           65    
B: Total Local Production       0            0            0 
C: Total Exports*               7            8            9 
D: Total Imports                63           68           74 
E: Imports From U.S.A.          24           27           31 
 
Exchange Rate: USD 1 = Dhs. 3.673 
The above statistics are unofficial estimates in millions of U.S. 
dollars. 
 
*NOTE: Reexports indicated where total imports exceed market size. 
 
POTENTIAL GROWTH FOR U.S. EXPORTS IS 14 % 
 
Part 1.  Title Line: Best Prospects - U.A.E. 
Rank of Sector: 18 
Name of Sector: Hotel and Restaurant Equipment 
ITA Industry Code: HTL 
 
Part 2. Narrative: 
Plentiful sunshine, great low cost shopping, beaches, tennis, golf and 
water sports and personal safety are key elements that have earned Dubai 
a growing reputation as one of the world's most rapidly developing 
leisure destinations. 
 
The fast growth in tourism is boosting construction of hotels and 
leisure facilities, including a new island and offshore leisure complex 
and several large theme parks.  An ambitious project to reclaim 500 
hectares at The entrance of Dubai Creek, estimated to cost over USD 500 
million, is under consideration.  A new tourism development project in 
Dubai to build a 200 room hotel on a reclaimed island off Chicago Beach 
Hotel is currently under construction.  Total estimated cost of the 
project is well over USD 400 million.  There are four other luxury 
resort hotels in the construction phase.  The Oberoi Hotel group are 
currently negotiating to build and operate two major hotel complexes in 
Dubai. 
 
The most promising subsector within this sector, with the estimated 1996 
total market size of each: 
 
o  Food Preparation Equipment        65 
o  Restaurant Equipment              41 
o  Laundry Equipment                 6 
o  Vending Machines                  2 
 
Part 3.  Data Table: 
 
                                1994         1995         1996 
 
A: Total Market Size            98           107          118 
B: Total Local Production       0            0            0 
C: Total Exports*               27           30           33 
D: Total Imports                125          137          151 
E: Imports From U.S.A.          12           13           15 
 
Exchange Rate: USD 1 = Dhs. 3.673 
The above statistics are unofficial estimates in millions of U.S. 
dollars. 
 
*NOTE: Reexports indicated where total imports exceed market size. 
  
POTENTIAL GROWTH FOR U.S. EXPORTS IS 15% 
 
Best Agricultural Prospects: 
 
Name of Sector: Dairy, Livestock and Poultry 
PS&D Commodity Heading:  Table Eggs 
 
Comments:  Within the past few years, the United States has become the 
UAE's leading egg supplier.  Demand for U.S. eggs is expected to remain 
strong due to their high quality and competitive price.  Holland and 
Saudi Arabia are main competitors.  Local egg production remains limited 
due to harsh environmental conditions and high production costs.  A 
reduction in the shelf life of table eggs to three months has caused 
concern for some U.S. suppliers. 
 
Data Table: 
 
                                1994         1995         1996 
                                       (million dozen)    
 
A.   Total Market Size          32           34           36 
B.   Total Local Production     18           19           20 
C.   Total Re-exports           14           15           17 
D.   Total Imports              20           30           33 
E.   Total Imports from U.S. 1/ 14           15           16 
 
1/ Assumes continuation of Export Enhancement Program. 
 
Name of Sector:  Dairy, Livestock and Poultry 
PS&D Commodity Heading: Poultry Meat 
 
Comments: Demand for U.S. frozen poultry, particularly parts is strong 
due to high product quality, competitive prices and packaging 
improvements.  Most U.S. whole birds are sold to caterers and other 
institutional end users while most parts are sold to the retail sector.  
Brazil, Denmark and France are major competitors.  Local production is 
marketed as fresh at premium prices and does not compete directly with 
frozen imports.  Two pound trays are the market standard for parts; 900-
1,200 grams are the most popular whole bird sizes. 
 
Data Table: 
 
                                1994         1995         1996 
                                           (1,000 MT) 
 
A.   Total Market Size          65           66           68 
B.   Total Local Production     18           19           20 
C.  Total Re-exports            36           41           44 
D.   Total Imports              83           88           92 
E.   Total Imports from U.S. 1/ 12           15           18 
 
1/ Assumes continuation of Export Enhancement Program 
 
Name of Sector: Horticultural and Tropical Products 
PS&D Commodity Heading: Apples, Fresh 
 
Comments:  U.S. origin apples are very popular in the UAE because of 
their high quality.  Demand from institutional end users is particularly 
strong.  Iran is currently the principal supplier of apples (mostly 
golden) to the UAE.  Chile, France, Turkey and Lebanon are other major 
suppliers.  Due to improvements in shipping and storage technology, U.S. 
origin apples are available in the local market virtually year round. 
 
Data Table: 
 
                                1994         1995         1996 
                                          (1,000 MT)          
       
A.   Total Market Size          40           44           50 
B.   Total Local Production     0            0            0 
C.  Total Re-exports            50           56           60 
D.   Total Imports              90           100          110 
E.   Total Imports from U.S.    11           14           16 
 
 
 
          CHAPTER VI.  TRADE REGULATIONS AND STANDARDS 
 
Trade Barriers, Including Tariffs, Non-Tariff Barriers, and Import Taxes 
Tariffs in the UAE were raised in 1994 from one percent to four percent.  
However, over 75 percent of imports still enter duty free.  Each emirate 
operates its own customs authority, but tariffs and general policies are 
coordinated through a national committee.  Only firms with the 
appropriate trade license can engage in importation.  Documentation 
requirements follow international standards and delays in custom 
clearance have been infrequent.  The competition for business between 
the port facilities of the different emirates has kept user rates to a 
minimum and put a premium on services.  There are no duties on exports.  
For religious and security reasons, there are various restrictions on 
import of alcohol, tobacco, firearms, and pork products. 
 
The UAE maintains non-tariff barriers to trade and investment, in the 
form of restrictive agency/sponsorship/distributorship requirements and 
there is still a lack of adequate intellectual property rights 
protection. 
 
In order to do business in the UAE outside of one of the free zones (see 
below), a foreign business must have a UAE national sponsor, agent, or 
distributor.  Once chosen, sponsors, agents, or distributors have 
exclusive rights.  They cannot be replaced without their agreement.  
Government tendering is not conducted according to generally accepted 
international standards.  Retendering is the norm, often as many as 
three or four times.  To bid on federal projects, a supplier or 
contractor must either be a UAE national or a company in which at least 
51 percent of the share capital is owned by UAE nationals.  Federal 
tenders are required to be accompanied by a bid bond in the form of an 
unconditional bank guarantee for five percent of the value of the bid. 
 
The UAE has no requirement that a portion of any government tender be 
subcontracted to local firms.  There is a ten percent price preference 
on procurement and tenders.  The UAE requires a company to be registered 
in order to be invited to receive government tender documents.  To be 
registered, a company must have 51 percent UAE ownership.  However, 
these rules do not apply on major project awards or defense contracts, 
where there is no local company able to provide the goods or services 
required.   
 
In 1992, the UAE passed three laws protecting intellectual property:  a 
copyright law, a trademark law, and a patent law.  Implementation of the 
copyright law began in September 1994.  As a result, pirate versions of 
western audio and video tapes are no longer present in the market.  
Unfortunately, legitimate versions of western video tapes are also 
largely absent from the market, as producers have hesitated to fill the 
vacuum left by the pirates.   
 
In April 1995, the United States Trade Representative announced that he 
would maintain the UAE on the Special 301 Watch List for a fifth year.  
He cited incomplete enforcement of software copyrights and inadequate 
patent protection, particularly in the area of pharmaceuticals, as the 
reasons.    
 
As of July 1995, the UAE had not joined the World Trade Organization 
(WTO).  The UAE had reached agreement with the other GATT contracting 
parties on its services schedule, but not on its market access schedule 
for goods.  An April 26 deadline was missed, and it was apparent that 
the process could last into the fall at least.  The three UAE IPR laws 
do not conform with GATT TRIPS standards.  The UAE is not a member of 
any international IPR convention.  It is a member of the World 
Intellectual Property Organization (WIPO), and has hosted WIPO IPR 
seminars. 
 
 
Agricultural Trade Barriers 
The UAE Currently levies a four percent import duty on all processed 
food products from non-GCC countries.  Bulk agricultural commodities and 
semi-processed food products are exempt from the duty.  In May 1995, UAE 
officials announced that the duty on processed food products would be 
eliminated, possibly as soon as July 1, 1995. 
 
 
Customs Valuation: 
Maximum duty in the UAE is 4 percent for most goods, with duties of from 
25 to 50 percent levied on alcohol and tobacco products. Many essential 
items, including foodstuffs and pharmaceuticals, are allowed duty free 
status.  
 
 
Import Licenses: 
All imported beef and poultry products require a health certificate from 
the country of origin and a halal slaughter certificate issued by an 
approved Islamic center in the country of origin. 
 
 
Export Controls: 
All goods exported or reexported from the UAE must have proper 
documentation issued by the Ministry of Economy and Commerce and the 
various Chambers of Commerce in the respective individual emirates. U.S. 
firms seeking to export or reexport goods from the UAE should consult 
the appropriate legal authorities for specific guidelines. 
 
 
Import/Export Documentation: 
Standard trade documentation, including certificates of origin, bills of 
lading and various government/embassy attestations must be presented for 
all imports and exports.  A Guide to Doing Business in the UAE which 
details documentation requirements is available from all U.S. Department 
of Commerce District Offices, the Department in Washington, and the U.S. 
Commercial Offices in Abu Dhabi and Dubai.  
 
 
Temporary Entry: 
Goods may be imported duty free and stored in any of several free zones 
in the UAE.  Goods which enter the UAE from these free zones must pay 
the (minimal) duty noted previously.  There is no provision for duty 
free entry of parts or components which are intended for manufacture of 
products which are subsequently exported. In practice, as duties are 
already so low, this has not been a major impediment to manufacturing 
industries in the UAE. 
 
 
Labeling 
Food labels must contain product and brand names, production and expiry 
dates, country of origin, name of the manufacturer, net weight in metric 
units, and a list of ingredients and additives in descending order of 
importance.  All fats and oils used as ingredients must be specifically 
identified on the label.  Regulations require that labels be in Arabic 
or Arabic/English, but English only labels are currently permitted. 
 
 
Prohibited Imports 
Irradiated food products are prohibited.  Imports of alcohol and pork 
products are strictly regulated. 
 
 
Standards: 
The UAE currently has no central standards authority.  However, both the 
national and emirate governments, as well as professional associations 
are reviewing standards requirements.  This is particularly true for the 
construction industry.  Currently, government agencies and private firms 
stipulate the standards required on a project-by-project basis.  This 
allows for a wide range of acceptable product performance, makes health 
and safety monitoring difficult, and permits the use of low quality 
products and manipulation of tender specifications.  A UAE company first 
qualified for ISO 9000 certification in 1993.  Since then, more have 
received the designation, and the EU is funding a standards center in 
the UAE to implement ISO 9000 certification.  
 
 
Free Trade Zones 
There are at present three free zones operating in the UAE and three 
more are planned.  Since UAE tariffs are low and are not levied against 
most imports, the chief attraction of the free zones is the waiver of 
the requirement for majority local ownership.  In the free zones, 
foreigners may own up to 100 percent of the equity in an enterprise.   
 
The largest and most successful of the free zones is the Jebel Ali Free 
Zone (JAFZ) in Dubai.  Each free zone offers special incentives to 
attract tenants, such as no taxation for many years, subsidized energy 
rates, and full repatriation of capital and profits.  In addition, for a 
nominal fee the zone authorities provide significant support services, 
such as sponsorship, worker housing, dining facilities, recruitment, and 
security. 
 
Within the JAFZ, three types of licenses are issued.  The licenses are 
valid while a company holds a current lease from the free zone authority 
and are renewable annually as long as the lease is in force.  They are 
the general license, the special license, and the national industrial 
license.  The special license is issued to companies incorporated, or 
otherwise legally established, within the free zone or outside the UAE.  
In such cases, no other license is required, and the ownership of the 
company may be 100 percent foreign.  The license is issued for any 
activity permitted by the free zone authority, including manufacturing.  
A company with a special license can operate only in the Jebel Ali Free 
Zone or outside the United Arab Emirates, but business can be undertaken 
and sales made in the UAE through or to a company holding a valid Dubai 
Economic Department license.  However, a company with a special license 
can, itself, purchase goods or services from within the UAE. 
 
 
Membership in Free Trade Arrangements: 
The UAE is a member of the Gulf Cooperation Council (GCC).  In 1981, the 
GCC issued the Unified Economic Agreement, a plan for complete economic 
integration among the six member states (Saudi Arabia, Kuwait, the UAE, 
Bahrain, Qatar, and Oman).  In practice, the provisions of this 
agreement have not all been implemented.   
 
Under the agreement, all agricultural, animal, industrial, and natural 
resource products from member states are exempt from duties and other 
charges when traded among member states.  To qualify as a GCC national 
product, the value added in a GCC member state must not be less than 40 
percent of the final value, and produced kin a factory with at least 51 
percent local ownership, unless 100 percent is owned by GCC nationals, 
and licensed by the respective ministry of finance and industry.  All 
intra-GCC shipments claiming this exemption must be accompanied by a 
duly authenticated certificate of origin. 
 
The GCC has been conducting talks with the European Community on the 
subject of establishing a free trade agreement between the respective 
blocks for a number of years, but so far with little progress.  The GCC 
also conducts economic dialogues with Japan and the U.S. 
 
 
 
                   CHAPTER VII.  INVESTMENT CLIMATE 
 
Openness to Foreign Investment 
The regulatory and legal framework favors local over foreign investors.  
There is no national treatment for investors in the UAE.  Except for 
companies located in the free zones, at least 51 percent of a business 
establishment must be owned by a UAE national.  A business engaged in 
importing and distributing a product must be either a 100 percent UAE 
owned agency/distributorship or a 51 percent (UAE) - 49 percent 
(foreign) limited liability company (LLC).  Subsidies for manufacturing 
firms are only available to those with at least a 51 percent local 
ownership.  Foreigners cannot own land or buy stocks.   
 
Most of the infrastructure described in section IV above and the most 
productive areas of the economy are in government hands.  No new 
upstream investment in the oil and gas sector is being accepted by Abu 
Dhabi authorities, although this is the sector in which there is the 
most interest on the part of potential foreign investors.  Similarly, 
private investment in power generation is not permitted in the UAE.  
Ninety percent of residential and commercial construction in Abu Dhabi 
is funded by the emirate government.  Severe restrictions on land 
ownership and transfer of land exist in Abu Dhabi and Dubai.   
 
There is no privatization program in operation in the UAE.  Although the 
authorities have discussed the possibility of offering shares (to UAE 
nationals only) in five businesses owned by the Abu Dhabi General 
Industries corporation (GIC), a bank partly owned by the federal 
Ministry of Finance, a poultry and dairy farm owned by Abu Dhabi 
emirate, and a retail gasoline distribution chain owned by the federal 
Ministry of Finance, as of June 1995, none of these entities had been 
privatized.  The authorities first developed a plan to establish a stock 
market in the early 1980's, as of June 1995, none had been established, 
although the Central Bank drafted a second plan for one in 1994.   
 
 
The Abu Dhabi authorities in the late 1980's instituted an offset 
program.  Under it, defense sales contractors are required to invest an 
amount equal to 60 percent of their contract in the UAE.  The terms of 
investment and amount are subject to negotiation with the UAE offset 
office, which must approve each investment project.  The projects must 
show a profit after seven years.  The contractor may not own more than 
49 percent of the project.  The remaining 51 percent must be held by UAE 
nationals.  By July 1995, the program had resulted in 22 projects, and 
it was not clear whether they would show the required profit.  
Meanwhile, a large backlog of offset obligations has accumulated, as the 
UAE armed forces continues to make purchases.  Principal problems 
associated with the program are a dearth of investment opportunities, 
with so much of the economy off limits to private foreign investment, 
difficulty in finding UAE national partners for the majority 51 percent, 
and difficulty in obtaining cooperation from emirate and federal 
bureaucracies for required permits, licenses, and other documentation 
needed to establish any new project. 
 
Foreign banks are required to pay a 20 percent income tax, although 
there is room to negotiate the actual payment of the tax.  Domestic 
banks pay no income tax.  No other foreign companies pay income taxes to 
the UAE government.  Neither foreign nor UAE nationals pay individual 
income or property taxes in the UAE.   
 
There are no significant government financed and/or subsidized 
industrial research and development programs in the UAE.   
 
Visas, residence permits, and work permits are required of all 
foreigners in the UAE.  U.S. citizens receive ten year, multiple entry 
visas, authorizing stay up to six months per entry, with the possibility 
of a six month extension. 
 
 
Conversion and Transfer Policies 
There are no restrictions on the transfer of funds into or out of the 
UAE, except that the currency of Israel may not be bought or sold in the 
UAE.  All other currencies are traded freely at market determined rates.  
No license is required to change money.  The UAE dirham has been pegged 
to the dollar at 3.671 dirhams per dollar since 1980.  At present, there 
is a divergence of about 2.0 percentage points or more in U.S. and UAE 
inflation rates.  Despite this, the authorities are under no pressure to 
adjust the peg.     
 
 
Expropriation and Compensation 
There have not been any expropriations in the UAE involving foreigners.  
There are no set rules governing compensation were expropriation to 
occur, and individual emirates would treat this, as so many other 
matters, differently.  In practice, authorities in the UAE would not 
expropriate unless there were a compelling developmental or public 
interest need to do so, and in such cases compensation would be 
generous.    
 
Dispute Settlement 
There have been no significant investment disputes over the past few 
years involving U.S. or other foreign investors, but there have been 
several contractor disputes in the UAE.  Most disputes have eventually 
been satisfactorily handled through arbitration.  However, dispute 
resolution can be difficult and uncertain.  Arbitration may commence by 
petition to the federal courts on the basis of mutual consent, a written 
arbitration agreement, independently by nomination of arbitrators, or 
through a referral to an appointing authority without recourse to 
judicial proceedings.  Enforcing judgments has not always been easy.  
The UAE is a member of the international center for the settlement of 
investment disputes. 
 
In 1993 the Abu Dhabi Chamber of Commerce and Industry formed the Abu 
Dhabi Commercial Conciliation and Arbitration Center in an effort to 
accelerate commercial dispute resolution.  The center is chaired by the 
president of the chamber, and the president of the chamber's customs and 
arbitration committee acts as the center's general secretary.  The 
center has jurisdiction to conciliate or arbitrate commercial disputes.  
The center's executive regulations govern its conciliation and 
arbitration procedure.  Referral by two adverse parties of a dispute to 
the center entails the parties acceptance of the finality of the centers 
decision.  The proceedings of the center may be in arabic of in any 
other language selected by the parties.  The efficacy of the center will 
depend in part on the willingness of local courts to grant rapid 
enforcement to the center's awards. 
 
The Dubai Chamber of Commerce and Industry promulgated commercial 
conciliation and arbitration rules last year which appear to be quite 
flexible, in the judgment of western legal experts.  The rules permit 
parties to agree to have conciliation or arbitration under the auspices 
of the chamber but under other rules.   
 
The UAE federal supreme court has held that a foreign arbitration clause 
in a registered commercial agency agreement is unenforceable as a matter 
of public policy.  The decision was based on the commercial agencies law 
of 1981, which states that the courts of the UAE shall have jurisdiction 
over commercial agency disputes.  The federal supreme court did not 
comment on the wisdom of registration of commercial agency agreements 
that contain clauses, such as foreign arbitration clauses, that could 
later be held unenforceable. 
 
The provisional constitution of the UAE established a federal court 
system while acknowledging the right of the individual emirates to 
maintain a court system of their own.  The federal court system consists 
of federal courts of first instance, two federal courts of appeal and a 
federal supreme court.  The court of first instance consists of civil, 
criminal, and shariah (Islamic religious) courts.  The shariah and civil 
legal systems exist concurrently for the most part.  Commercial disputes 
involving foreign parties tend to come before the civil courts and major 
commercial disputes are ordinarily heard by a panel of three judges.  
All cases involving banks and financial institutions are required to be 
heard by civil courts and not by shariah courts. 
 
In 1992, President Zayed issued a new code of civil procedure.  The code 
contains new rules on arbitration, conciliation and amicable settlement 
of disputes.  According to an analysis prepared by western trained 
attorneys, the new arbitration rules are similar to those recommended by 
the Federation of the UAE Chambers of Commerce and Industry.  The 
agreement of the parties to a dispute to refer it to arbitration is 
recognized and made enforceable.  No party is now permitted to file a 
claim with a court if such party has already agreed to refer such claim 
to arbitration.  Reference to arbitration may be made at any stage 
during litigation.  The new code sets out in detail rules governing the 
qualification and disqualification of arbitrators and many other aspects 
of the arbitration process.  The venue of arbitration is required to be 
within the uae, and if not, the resultant award is to be treated like a 
foreign judgment.  There are also rules to ensure the prompt enforcement 
of awards.  The new code also introduced procedures to expedite certain 
business claims.  Comprehensive rules were provided in connection with 
the various types of preventive and provisional remedies prior to the 
litigation process and upon the issuance of judgments, including 
attachment of property, confiscation of the defendant's passport and 
prohibitions on travel, as well as the detention of the defendant in 
certain instances. 
 
 
Political violence (as it may affect investments): None 
 
 
Performance Requirements/Incentives 
Incentives are given to foreign investors in the free zones.  Outside 
the free zones, no incentives are given. 
 
 
Right to Private Ownership and Establishment 
Except as detailed elsewhere in this report, there are no restrictions 
on the right of private entities to establish and own business 
enterprises and engage in all forms of remunerative activity. 
 
 
Protection of Property Rights 
With the exception of some intellectual property issues, private 
property is protected and respected in the UAE. 
 
 
Regulatory System 
The federal commercial code, the last building block in the edifice of 
federal commercial legislation in the UAE, was promulgated on september 
20, 1993.  The commercial code devotes an entire chapter to bankruptcy, 
which is the first comprehensive legislation in the UAE on the subject 
of bankruptcy.  Prior to enactment of the commercial code, creditors of 
bankrupt persons were often faced with a race to the courthouse with 
other creditors in order to obtain satisfaction of their claims.  The 
commercial code chapter on bankruptcy, however, governs the procedures 
and effects of bankruptcy in the UAE and should provide a mechanism for 
the orderly evaluation and distribution of assets of a bankrupt entity, 
in the judgment of western legal experts. 
 
The concept of a mortgage does not exist.  With few exceptions, title to 
all land in Abu Dhabi, the largest emirate, resides in the ruler.  Most 
construction, commercial and residential, is financed by a specialized 
agency of the government of Abu Dhabi.  Commercial banks finance the 
remainder.  Their collateral traditionally has been access to the rent 
stream of the building or the personal guarantee of the developer.  In 
the past, developers unable to pay off bank loans simply walked away 
from the problem.  The new commercial code's bankruptcy provisions seek 
to give lenders access to the assets of persons issuing personal 
guarantees.  These provisions have not been tested in court however.   
 
The laws and regulations governing foreign investment in the UAE 
evolving but are expected to remain conducive to foreign investment.  
Therefore, it is recommended that potential investors consult a local 
attorney to obtain the most current investment information at an early 
stage of planning. 
 
Regulation of the establishment and conduct of business in the UAE is 
shared at the federal and emirate levels.  In general, foreign companies 
which undertake business activities in the UAE or make their products 
available in the UAE have either entered into a joint venture with UAE 
nationals for the establishment of limited liability companies, 
appointed commercial agents, or set up branch offices.   
 
The fundamental instrument by which all of the emirates regulate 
business activity is the requirement that any place of business must be 
properly licensed by the municipal authorities of an emirate.  A license 
is not required unless a place of business is set up in the UAE.  
Therefore, foreign businesses exporting to the UAE but without a regular 
or continuing business presence in the UAE do not need a license.  
Licenses available include trade licenses, industrial licenses, service 
licenses, professional licenses, and construction licenses. 
 
Several federal regulations govern business activities in the UAE 
outside free trade zones.  Activities within the free zones are governed 
by special bylaws. 
 
1.  The Federal Companies Law:  the companies law applies to all 
commercial companies established in the UAE and to branch offices of 
foreign companies operating in the UAE.  The following provisions are of 
particular importance: 
 
A.  Companies established in the UAE are required to have a minimum of 
51 percent UAE national ownership.  However, profits may be apportioned 
differently. 
 
B.  Branch offices of foreign companies are required to have a national 
agent unless the foreign company has established its office pursuant to 
an agreement with the federal or an emirate government. 
 
C.  All general partnership interest must be owned by UAE nationals. 
 
D.  Foreign shareholders may hold up to a 49 percent interest in limited 
liability companies. 
 
There are seven types of local companies that may be organized under the 
companies law: 
 
1.  General partnership 
2.  Limited partnership 
3.  Share partnership 
4.  Joint venture company 
5.  Limited liability company 
6.  Publicly held company 
7.  Private shareholding company. 
 
Among the forms of business activities under the companies law, the 
limited liability company is now considered to be the most suitable form 
of joint ventures between local and foreign entities. 
 
 
2.  The Commercial Agencies Law:  the commercial agencies law requires 
that foreign principals distribute their products in the UAE only 
through exclusive commercial agents that are either UAE nationals or 
companies wholly owned by UAE nationals.  The foreign principal can 
appoint one agent for the entire UAE or for a particular emirate or 
group of emirates.  The law provides that an agent may be terminated 
only by mutual agreement of the foreign principal and the local agent, 
notwithstanding the expiration of the term of the agency agreement. 
 
3.  The Federal Industries Law.  The industry law stipulates that 
industrial projects must have 51 percent UAE national ownership.  The 
law also requires projects either to be managed by a UAE national or 
have a board of directors with a majority of UAE nationals.  Exemptions 
from the law are provided for projects relating to extraction and 
refining of oil, natural gas, and other raw materials.  Additionally, 
projects with a small capital investment or special projects governed by 
special laws or agreements are exempt from the industry law. 
 
 
4.  Government Tenders Law:  under the tenders law, a supplier, 
contractor, or tenderer with respect to federal projects must either be 
a UAE national or a company in which at least 51 percent of the share 
capital is owned by UAE nationals.  Therefore, foreign companies wishing 
to bid for a federal project must enter into a joint venture or agency 
arrangement with a UAE national or company.  Federal tenders are 
required to be accompanied by a bid bond in the form of an unconditional 
bank guarantee for five percent of the value of the bid. 
 
 
Bilateral Investment Agreements 
The UAE has bilateral investment agreements with a number of countries, 
including the UK.  There is no bilateral investment treaty with the U.S.   
 
 
OPIC and Other Investment Insurance Programs 
The U.S. And the UAE signed an agreement on investment guarantees (an 
opic agreement) in september 1991.  The UAE is a member of the 
multilateral investment guarantee agency (MIGA) 
 
 
Labor 
The Right To Organize and Bargain Collectively: 
UAE law does not grant workers the right to engage in collective 
bargaining, and it is not practiced.  Workers in the industrial and 
service sectors are normally employed under contracts that are subject 
to review by the Ministry of Labor and Social Affairs.  The purpose of 
the review is to ensure that the pay will satisfy the employee's basic 
needs and secure a means of living.  For the resolution of work-related 
disputes, workers must rely on conciliation committees organized by the 
Ministry of Labor and Social Affairs or on special labor courts.  
Domestic servants and agricultural workers are not covered by UAE labor 
laws and thus have great difficulty in obtaining any assistance in 
resolving labor disputes.  In the free port where manufacturing takes 
place, the same laws and regulations apply as in the rest of the 
country.   
 
 
Prohibition of Forced or Compulsory Labor 
Forced or compulsory labor is illegal and not practiced.  However, 
foreign workers may be recruited in their own countries by unscrupulous 
agents who bring them into the UAE under conditions approaching 
indenture.   
 
 
Minimum Age for Employment of Children 
Labor regulations prohibit employment of persons under age 15 and have 
special provisions for employing those aged 15 to 18.  Laws prohibiting 
the employment of children are enforced by the Department of Labor.  
Labor regulations allow contracts only for adult foreign workers.  In 
January, 1993, the government announced new regulations prohibiting the 
employment of young children as camel jockeys and decreed that camel 
jockeys should weigh no less than 45 kilograms.  It also created a camel 
racing association which is expected to enforce the new rules.  Small 
children who were employed as jockeys were returned to their parents.  
 
 
Acceptable Conditions of Work 
There is no legislated or administrative minimum wage.  Supply and 
demand determine compensation.  However, according to the Ministry of 
Labor and Social Affairs, there is an unofficial, unwritten minimum wage 
rate which would afford a worker and family a minimal standard of 
living.  As noted in Section 6.B., the Labor and Social Affairs Ministry 
reviews labor contracts and does not approve any contract that 
stipulates a clearly unacceptable wage.   
 
The standard workday and workweek are set at eight hours per day, six 
days per week, but these standards are not strictly enforced.  Certain 
types of workers, notably domestic servants, may be obliged to work 
longer than the mandated standard hours.  The law also provides for a 
minimum of 24 days per year of annual leave plus 10 national and 
religious holidays.  In addition, manual workers are not required to do 
outdoor work when the temperature exceeds 45 degrees celsius (112 F.)    
 
Most foreign workers receive either employer-provided housing or a 
housing allowance, medical care, and homeward passage from their 
employers.  The vast majority of such workers, however, do not earn the 
minimum salary of 5000 dirhams (approximately 1370 U.S. dollars) per 
month currently required for them to sponsor their families for a UAE 
residence visa (the UAE raised the minimum from about 1000 dollars to 
1370 dollars in August, 1994.  Employers have the option to petition for 
a ban from the work force of one year for any foreign employee who 
leaves his job without fulfilling the terms of his contract.  
 
The government sets health and safety standards, which are enforced by 
the Ministry of Health, the Ministry of Labor and Social Affairs, 
municipalities, and civil defense units.  Every large industrial concern 
is required to employ an occupational safety officer certified by the 
Ministry of Labor.  If an accident occurs, a worker is entitled to fair 
compensation.  Health standards are not uniformly observed in the 
housing camps provided by employers.  Workers' jobs are not protected if 
they remove themselves from what they consider to be unsafe working 
conditions.  However, the Ministry of Labor may require employers to 
reinstate workers following an investigation of the alleged unsafe 
working conditions.  All workers have the right to complain to the Labor 
Ministry, whose officials are accessible to any grievant, and an effort 
is made to investigate all complaints.  The Ministry, which oversees 
worker compensation, is, however, chronically understaffed and 
underbudgeted so that complaints and compensation claims are backlogged. 
 
Foreign nationals, especially from India, Pakistan, the Philippines, 
Bangladesh, and Sri Lanka, continue to seek work in the UAE in large 
numbers.  There are many complaints that recruiters in the country of 
origin use unscrupulous tactics to entice manual laborers and domestic 
servants to the UAE, promising unrealistically high salaries, housing 
and other benefits and may even  bring them in illegally.  In return, 
workers may pay a fee up front and/or promise the recruiters several 
months of future wages to secure their passage.  When they arrive, there 
are often no jobs waiting for them so they seek jobs as undocumented 
workers, accepting wages far below the accepted minimum.  Such 
complaints may be appealed to the Labor Ministry and, if this does not 
resolve the issue, to the courts.  However, many laborers choose not to 
protest or to engage in such a lengthy process for fear of reprisals or 
of deportation.  Moreover, since the UAE tends to view foreign workers 
through the prism of their various nationalities, employment policies, 
like immigration and security policies, have at times been conditioned 
upon national origin. 
 
A number of accounts, including some in the local press, continue to 
call attention to abuses suffered by domestic servants, particularly 
women, perpetrated by individual employers.  These have included 
allegations of excessive work hours, extremely low wages, verbal abuse, 
and, in some cases, physical abuse. 
 
 
Capital Outflow Policy 
There are no restrictions or incentives with regard to the export of 
capital and outward direct investment. 
 
 
Major Foreign Investors 
Principal foreign investors are the UK, U.S., France, India, and 
Germany. 
 
 
 
             CHAPTER VIII.  TRADE AND PROJECT FINANCING 
 
Brief Description of the Banking System 
The banking sector has rebounded from Desert Storm and the failure of 
the Bank of Credit and Commerce International (BCCI).  Steady economic 
growth and the implementation of new Central Bank directives to 
strengthen the banking system are leading to the emergence of a sounder, 
more rational, more profitable banking sector in the UAE.  
 
In the UAE there are 19 UAE-owned banks with 207 branches inside the 
country and 43 abroad, 28 foreign banks with 119 branches, one 
restricted license bank, two investment banks, and 10 representative 
offices.  The National Bank of Abu Dhabi, according to the Central Bank, 
operates an off-shore banking unit.  The Central Bank requires a ten 
percent capital adequacy ratio for all UAE banks.  At present, the UAE 
is rated by the Bank for International Settlements (BIS) as a high risk 
lending area. 
 
The Central Bank also prohibits lending an amount greater than seven 
percent of a bank's capital base to any single customer.  The Bank 
defines customer as an individual, a company, or a group of companies 
under common ownership and capital base as local capital.  Foreign banks 
with branches in the UAE are not permitted to calculate loans as a 
percentage of their global capital (which may however be used to 
calculate the capital adequacy ratio).  In a revision to the rule, the 
Bank in 1993 said it would exclude from the requirement non-funded 
exposures, such as letters of credit and guarantees.  In general, the 
banking sector enjoyed a very profitable year in 1994.  The Central Bank 
has also announced its intention to implement internationally recognized 
and accepted accounting principles, in the form of the International 
Accounting Standard (IAS) number 30 on disclosure.  The rule would unify 
the basis of bank reporting and significantly increase the level of 
disclosure by banks in the UAE.   
 
Other federal rules require banks to display interest rates, charges and 
fees and express loan rates on a reducing balance (annual percentage 
rate) basis and bank guarantors for personal loans for expatriates.  The 
Central Bank is considering the introduction of a deposit insurance 
scheme.   
 
As the UAE dirham is tied to the dollar, interest rates in the UAE tend 
to parallel those in the U.S.  When rates were low, banks and their 
corporate borrowers sought to strengthen their balance sheets rather 
than engage in new lending and borrowing.  However, there are 
indications that interest-sensitive industries, such as construction, 
were able to maintain relatively high levels of activity through the 
second half of 1993 and the first half of 1994, when oil prices hit 
their lowest point in years, by responding to lower rates.  The linkages 
between construction and manufacturing would explain the relatively good 
performance of the latter sector, noted above.   
 
The authorities believe that the exchange rate of 3.671 to the dollar, 
unchanged since 1980, promotes stability and confidence in the currency 
and mitigates against capital flight.  The dollar peg also has the 
advantage of passing changes in the dollar's own effective rate of 
exchange directly through to the UAE economy.  This is important, given 
the continued reliance on a single export that is priced in dollars.   
 
The Central Bank no longer issues licenses for new foreign banks to 
establish branches in the UAE.  Citibank is the only U.S. Bank in the 
UAE which offers full banking services.  Bank of America has a 
representative office in Dubai.  Some bankers and certain emirate 
governments favor the establishment of offshore banking, but the UAE 
Central Bank is opposed to it.  
 
Most non-oil investment in the UAE is financed by local banks.  Even so, 
the banks lack sufficient lending opportunities for their funds, and 
consequently place many of them abroad.  Most of the manufacturing 
sector operates with higher levels of debt than prescribed by the 60:40 
debt to equity ratio, generally the norm for this sector.  Debt is 
almost entirely made up of bank borrowings.  Some three-fourths of gross 
fixed capital formation in manufacturing is directly or indirectly 
financed by the banking system. 
 
 
The trade and building sectors receive a disproportionate share of bank 
loans.  Banks lend to the services, trade, and building sectors due to 
lack of major investment scope in other productive sectors.  The oil 
sector is the province of the government and is beyond the reach of the 
banks.  The farming sector is relatively small and is heavily 
subsidized. 
 
Local banks invest in foreign stock markets to absorb excess liquidity.  
There is no domestic stock market.  Share dealing is conducted through 
brokers by telephone.  The number of joint stock companies and banks is 
80.  The number of companies and banks whose shares are actually traded 
in the market does not surpass 30 (13 banks and 17 joint stock 
companies), the market value of which is about 35.5 billion dirhams.  
The number of companies actively traded is probably less than 20. There 
is no available data on the volume of shares traded.  However, the 
number of shares available for trading compared to the total shares 
issued is extremely low, and does not exceed three percent.   
 
The local share trading department of the National Bank of Abu Dhabi 
(NBAD) maintains an unofficial index, with a base of 1,000 points, based 
on the prices of the shares of the companies quoted by the bank.  The 
index measures the market value of shares of 22 companies and banks 
representing a percentage of 95 percent of the value and number of 
shares traded in the market.   
 
No non-UAE nationals are permitted to buy, sell, or own shares.  The 
NBAD publishes a UAE share directory containing the managerial and 
economic profiles of these companies.  The directory was first issued in 
1989.  NBAD issues weekly and monthly reports on locally traded shares.  
It also issues a monthly financial bulletin.   
 
 
Banks operating in the U.A.E. are: 
 
ABN Amro Bank 
ANZ Grindlays Bank PLC 
Abu Dhabi Commercial Bank 
Al Ahli Bank of Kuwait 
American Express Bank Ltd. 
Arab African International Bank 
Arab Bank for Investment & Foreign Trade 
Arab Bank PLC 
Arab Emirates Investment Bank Ltd. 
Banca Commerciale Italiana 
Bank Melli Iran 
Bank of America (Representative Office) 
Bank of Baroda 
Bank Brussels Lambert 
Bank of Sharjah PLC 
Bank of Toyko Ltd. 
Bank Saderat Iran 
Banque Banorabe 
Banque Du Caire 
Banque Indosuez 
Banque Libanaise Pour Le Commerce 
Banque Nationale De Paris 
Banque Paribas 
Barclays Bank PLC 
The British Bank of the Middle East 
Citibank NA 
The Commercial Bank of Dubai Ltd. 
Commercial Bank Int'l PLC 
Credit Lyonnais 
Credit Suisse 
Dubai Islamic Bank 
El Nilein Bank 
Emirates Bank International 
Emirates Industrial Bank 
First Canadian Capital Corporation 
First Gulf Bank 
Gulf International Bank (BSC) 
Habib Bank AG Zurich 
Habib Bank Limited 
Investment Bank for Trade & Finance LLC 
Janata Bank 
Lloyds Bank PLC 
Mashreq Bank 
Merrill Lynch International Co. 
Middle East Bank (A subsidiary of Emirates Bank Int'l Ltd) 
National Bank of Abu Dhabi 
National Bank of Bahrain (BSC) 
National Bank of Dubai Ltd. 
National Bank of Fujairah 
National Bank of Oman Ltd. (SAOG) 
National Bank of Ras Al Khaimah (PSC) 
National Bank of Sharjah 
National Bank of Umm Al Qaiwain PSC 
Oman Finance Co. Ltd. 
Royal Bank of Canada 
Standard Chartered Bank 
Union Bank of Switzerland (Representative Office) 
Union National Bank 
United Arab Bank 
United Bank Ltd. 
 
 
 
                       IX. BUSINESS TRAVEL: 
 
A.  Business Customs 
Men and women do work together in offices in the U.A.E. Women usually 
dress conservatively and modestly.  Only women working as teachers in 
the public (Islamic) schools are required to wear long skirts or 
traditional black abayas. 
 
U.A.E. nationals are well-represented in the higher ranks of the public 
sector.  The private sector environment is somewhat different.  U.A.E. 
nationals are less well-represented, even in the higher ranks.    
 
As is the case with the business practices in many Middle Eastern 
countries, meetings can often run late and projects may experience 
postponements and extensions.  American business visitors, however, are 
expected to be punctual for all appointments and it is most important to 
respond to all fax and other communications promptly. 
 
In a typical business meeting, the guest may be offered tea, coffee or a 
soft drink when he arrives. Formal greetings can take several minutes.  
It is considered impolite to begin addressing business topics without 
taking several minutes for small talk. Courtesy is more emphasized in 
the UAE than in typical U.S. business meetings, although this can be 
exaggerated, and many UAE business executives are becoming more time-
conscious. 
 
 
B. Travel Advisories and Visas 
A Passport and visa are required for entry into the U.A.E.  Multiple-
entry visas for business or tourism and valid for up to ten years are 
available to U.S. passport holders from U.A.E. Embassies abroad.  
Sponsors are not required, but applicants may be asked to provide an 
invitational letter to confirm the purpose of travel. 
 
With 2-3 weeks advance notice (sometimes less), a local sponsor 
(company, major hotel or U.A.E. Government agency) can arrange for a 
transit visa valid for a single stay of up to two weeks.  Local sponsors 
(companies or individuals) can also arrange for visitor visas valid for 
one month with extensions possible of up to three months upon 
application. 
 
An AIDS test is mandatory for obtaining a residence permit which is a 
must for all expatriates and their dependents living in the U.A.E.  The 
test has to be conducted in the U.A.E. by the Preventive Medicine Unit. 
 
For further information, travellers may contact the U.A.E. Embassy, 
Suite 740, 600 New Hampshire Blvd., Washington, D.C. 20037, Telephone: 
202) 338-6500. 
 
As of July 1995, there is no travel advisory in effect specifically for 
the U.A.E.  A general advisory is in effect for the Middle East, 
however, and travellers should contact the Department of State's Office 
of Citizen Services or the nearest U.S. Embassy or Consulate for an 
update. 
 
 
C. HOLIDAYS 
 
New Year's Day                    January 1 
Ascension Day                     December 19* 
Martin Luther King Day            January 13 
Eid Al Fitr                       February 21-24* 
Waqfa                             April 29* 
Eid Al-Adha                       April 30-May 2* 
Islamic New Year                  May 20* 
Shaykh Zayed Accession Day        August 6 
Prophet's Birthday                July 30* 
U.A.E. National Day               December 2 & 3 
 
* U.A.E. religious holidays are dependent upon the sighting of   the 
moon.   
 
 
D.  Business Infrastructure 
Language:  The language of business is English, but Arabic, Farsi, Urdu 
and Hindi are also widely spoken.  Most taxi drivers understand 
sufficient English to get you where you want to go, even if they do not 
speak it. 
 
Accommodations:  Most major international hotel chains are represented 
in the U.A.E., including the Hilton, Sheraton, Inter-Continental, Hyatt 
Regency, Holiday Inn, Forte, JW Marriott, Novotel, Ramada and Meridien. 
 
Transportation:  Taxis are the prevalent form of transportation and are 
widely available throughout the Emirates.  In Abu Dhabi taxis are 
metered and fares rarely exceed USD 3.50 including tip.  Luxury radio 
taxis are available from the major hotels for perhaps triple the rate of 
street taxis, but still a bargain.  In Dubai, taxis are not metered but 
fares should not exceed 10-20 Dirhams (USD 2.80-5.60) unless you are 
traveling to the outer suburbs.  The fare from the World Trade Centre to 
the Jebel Ali Free Trade Zone is about 35 Dirhams (USD 10.00). 
 
Housing:  Housing for western ex-patriots is expensive.  Villa rental 
rates can run from USD 28,000 to USD 70,000 per annum, payable one year 
in advance.  Local laws permit rents to increase 10 percent annually.  
Apartments are somewhat less expensive. 
 
Health:  Public health services in Abu Dhabi and Dubai are adequate, 
i.e. major trauma cases can be stabilized.   Major hospitals have the 
most recent equipment and trained personnel to operate it.  Health 
services are provided to all foreign residents for a small annual fee.  
 
 
 
                       CHAPTER X: APPENDICES 
 
APPENDIX A: Country data 
 
A. Profile 
 
Population:  With a 1995 estimate of 2.3 million, the population of the 
United Arab Emirates has been growing about 3.0% annually.  Major ethnic 
groups include Arab, Pakistani, Indian, Iranian, and Filipino.  Only 
about 15 percent of the population are nationals of the United Arab 
Emirates. 
 
Religion(s): The official religion is Islam, 90 percent of the 
population are Muslims.  The authorities permit worship of other 
religions.  There are Christian churches and Hindu temples in Abu Dhabi, 
Dubai and Sharjah. 
 
Government System: The government is a federation of the seven emirates 
headed by a president and a vice president (since its inception in 1971 
the rulers of Abu Dhabi and Dubai respectively).  The rulers of each of 
the emirates belong to the Supreme Council, which is the U.A.E.'s 
highest legal authority and promulgates federal laws.  The Federal 
National Council, consisting of 40 nationals appointed by the rulers, 
acts as an advisory legislative body.  The Council of Ministers, 
appointed by the Supreme Council, run the day to day affairs of the 
federation. 
 
Each Emirate has it's own local government involved with municipal 
affairs, and in some cases major public utilities like power and water 
(similar in fact to the United States system). 
  
Language(s):  The official language is Arabic, but English is widely 
used in business.  Hindi, Urdu, and Farsi (Persian) are also spoken. 
 
Work Week: The regular work week is from Saturday to midday Thursday.  
Most private business offices are also open on Thursday afternoon.  
Working hours vary.  Government offices and banks close for the day at 
1:00 p.m., but commercial outlets re-open in the afternoon from about 
4:30 p.m. - 8.00 p.m.  Note: The oil sector in Dubai works 8:00 a.m. - 
5:00 p.m. Sunday through Thursday.  Many other Dubai companies are 
trending this way. 
 
The U.S. Embassy in Abu Dhabi is open from 7:30 AM to 4:00 PM, the 
Consulate General in Dubai from 8:00 AM to 4:30 PM, Saturday through 
Wednesday. 
 
 
APPENDIX B:  Domestic Economy 
 
USD Millions 
 
                                1994         1995         1996 
 
GDP (Current Prices)            36,094       38,872       n/a 
Real GDP Growth Rate(Percent)   1.1          3.3          2.8 
GDP Per Capita                  n/a          n/a          n/a 
Government Spending as a  
Percentage of GDP               41.1         39.2         n/a 
Unemployment                    n/a          n/a          n/a 
Official Foreign Exchange 
Reserves                        6,659        n/a          n/a 
Average Exchange Rate for 
USD 1.00                        3.671        3.671        3.671 
Debt Service Ratio              n/a          n/a          n/a 
U.S. Economic/Military/ 
Economic Assistance             n/a          n/a          n/a 
 
 
Appendix C - Trade        
 
                                1993         1994 (e)     1995 (e) 
                                          (USD millions) 
 
Total U.A.E. Exports             4,890.6      5,500        5,500 
Total U.A.E. Imports            17,885.4     19,000       20,000 
U.S. Exports to the U.A.E.       1,811.4      1,600        2,200 
U.S. Imports from the U.A.E.       774.5        600          450 
U.S. share of U.A.E. imports  
(percent)                           10.1         10           10 
 
Imports of manufactured goods 
(HS 28-40, 42, 46, 48-97 less 71) 
 
- Total (from world)            14,296       15,182       16,093 
- From the U.S.                 1,443.9      1,514.7      1,590 
- U.S. share of manufactured  
  imports (percent)             10.1         11           11 
- Manufactured goods trade   
  balance with the U.S.         1,247.9      1,300        1,355 
- Projected average annual  
  growth rate from world  
  through 1996 (percent)        6.2          6            6 
- Projected average annual  
  growth rate from U.S.  
  through 1996 (percent)        4.9          (5)          10 
 
 
Appendix D:  Investment Statistics 
 
Figures on foreign direct investment are not available.  Total U.S. 
Investment in the UAE is estimated at USD 750 million.   
 
 
Appendix E. - Contacts: 
 
Abu Dhabi: Senior Commercial Officer - Charles Kestenbaum 
Tel: (971-2) 345545, Fax: (971-2) 331374 
Dubai: Commercial Officer - Terry Sorgi 
Tel: (971-4) 313584, Fax: (971-4) 313121 
 
Washington D.C.: 
U.A.E. Desk Officer: David Guglielmi Tel:(202)482-5545;Fax: (202) 482-
0878; Flash Fax:(202) 482-1064 
Regional Director: Ben Brown 
Associate Regional Director: Shakir Farsakh 
Tel: (202) 482-4836, Fax: (202) 482-5179 
 
Dubai Business Council 
P.O. Box 9281, Dubai, UAE 
Tel: 971-4-314735; Fax: 971-4-314227 
Contact: John Morris, President 
 
Presidential Court  of the UAE 
P.O. Box 280 Abu Dhabi, UAE 
Tel: 971-2-652000, Fax: 971-2-651962 
Chamberlain: Shaykh Suroor Bin Mohamed Al Nahyan 
Office Director: Khamis Butti Al Rumaithi 
 
Court of the Crown Prince of Abu Dhabi  
(Shaykh Khalifa Bin Zayid) 
P.O. Box 124, Abu Dhabi, UAE 
Tel: 971-2-652265, Fax: 971-2-650505 
Chairman: Shaykh Sultan Bin Khalifa 
 
UAE Armed Forces General Headquarters (GHQ) 
P.O. Box 3755, Abu Dhabi, UAE 
Tel: 971-2-414999, Fax: 971-2-414082/415510 
(Chief of Staff: Shaykh Mohamed Bin Zayid 
 
Ministry of Communications 
P.O. Box 900, Abu Dhabi, UAE 
Tel: 971-2-651900, 971-2-651691 
Minister: Mohamed Saeed Al Mulla 
 
Federal Civil Aviation 
P.O. Box 900, Abu Dhabi, UAE 
Tel: 971-2-662907, Fax: 971-2-651691 
Director General: Majed Saif Majed 
 
Abu Dhabi Department of Civil Aviation 
P.O. Box: 20, Abu Dhabi, UAE 
Tel: 971-2-757500, Fax: 971-2-757285 
Chairman: Shaykh Hamdan Bin Mubarak Al Nahyan 
 
Dubai Civil Aviation Dept. 
P.O. Box 2525, Dubai, UAE 
Tel: 971-4-2062727, Fax: 971-4-244074 
Director General: Mohieddin Bin Hindi 
 
Ministry of Economy and Commerce 
P.O. Box 901, Abu Dhabi, UAE 
Tel: 971-2-215455, Fax: 971-2-215339 
Minister: Saeed Ghobash 
 
Ministry of Electricity and Water 
P.O. Box 629, Abu Dhabi, UAE          
Tel: 971-2-335099, Fax: 971-2-213738 
Minister: Humaid Nasser al Owais 
 
Water and Electricity Department of Abu Dhabi 
P.O. Box 219, Abu Dhabi, UAE 
Tel: 971-2-971-2-731100, Fax: 971-2-784033 
Chairman: Shaykh Suroor Bin Mohamed Al Nahyan 
 
Ministry of Health 
P.O. Box 848, Abu Dhabi, UAE 
Tel: 971-2-330000,331000, Fax: 971-2-215422  
Minister: Hamad Abdul Rahman Al Medfa (acting) 
 
Ministry of Labor and Social Affairs 
P.o. Box 809, Abu Dhabi, UAE 
Tel: 971-2-651890, Fax: 971-2-665889 
Minister: Saif Al Jarwan 
 
Ministry of Petroleum and Mineral Resources 
P.o. Box 59, Abu Dhabi, UAE 
Tel: 971-2-651810, Fax: 663414 
Minister: Rakadh Bin Salem Bin Hamad Bin Rakadh (Acting) 
Undersecretary: Nasser Mohd Al Sharhan 
 
Ministry of Public Works and Housing 
P.O. Box 904, Abu Dhabi, UAE 
Tel: 971-2-211699, Fax: 971-2-311375 
Minister: Rakadh Bin Salem Bin Hamad Bin Rakadh 
 
Abu Dhabi Finance Department 
P.O. Box 246, Abu Dhabi, UAE 
Tel: 971-2-651500, Fax: 971-2-662114 
Chairman: Mohamed Habroosh Al Suweidi 
 
Abu Dhabi Municipality 
P.o. Box: 263, Abu Dhabi, UAE 
Tel: 971-2-788888, Fax: 971-2-786766 
Chairman: Shaykh Mohamed Bin Butti Al Hamid 
 
Abu Dhabi Chamber of Commerce & Industry 
P.O. Box 662, Abu Dhabi, UAE 
Tel: 971-2-214000, Fax: 971-2-215867 
Director General:  Al Taher Mesbeh Kindi Al Merer 
 
Abu Dhabi General Industry Corporation 
P.O. Box 4499, Abu Dhabi, UAE 
Tel: 971-2-214900, Fax: 971-2-325034 
Chairman: Shaykh Hamad Bin Tahnoon Al Nahyan 
 
Dubai Chamber of Commerce & Industry 
P.O. Box 1457, Dubai, UAE 
Tel: 971-4-221181, Fax: 971-4-211646 
Director General: Abdul Rahman G. Al Mutaiwee 
 
Abu Dhabi Immigration & Naturalization Department 
P.O. Box 29444, Abu Dhabi, UAE 
Tel: 971-2-462244, Fax: 971-2-461261 
Director: Mohammed Mohammed Badr Al Hameli 
 
Abu Dhabi Public Works Department 
P.O. Box 3, Abu Dhabi, UAE 
Tel: 971-2-434111, Fax: 971-2-434338 
Chairman: Shaykh Sultan Bin Zayid Al Nahyan 
 
Abu Dhabi Commercial Buildings and Social Services Dept.  
(The "Khalifa Committee") 
P.O. Box: 3564, Abu Dhabi, UAE 
Tel: 971-2-215411, Fax: 971-2-310032 
Director: Shaykh Sultan Bin Zayid Al Nahyan 
Chairman: Saif Bin Ahmed Jaber Al Hamili 
 
Abu Dhabi Town Planning Dept. 
P.O. Box 862, Abu Dhabi, UAE 
Tel:971-2-780000, Fax: 971-2-786716 
Director: Engr. Mohammed Abdullah Al Suwaidi 
 
Abu Dhabi Purchasing Department 
P.O. Box 838, Abu Dhabi, UAE 
Tel:  971-2-212700, Fax: 971-2-343696 
Chairman: Khalfan Ghaith Al Moheirbie 
 
Abu Dhabi National Oil Company (ADNOC) 
P.O. Box 8989, Abu Dhabi, UAE 
Tel: 6020000, Fax: 971-2-6023389 
Director General: Yousef Bin Omayr 
 
Abu Dhabi Investment Authority (ADIA) 
P.O. Box 3600, Abu Dhabi, UAE 
Tel: 971-2-213100, Fax: 971-2-324605 
Managing Director: Mohamed Habroosh Al Suweidi 
 
Abu Dhabi Marine Operating Company (ADMA-OPCO) 
P.O. Box 303, Abu Dhabi, UAE 
Tel: 971-2-6060000, Fax: 971-2-720099 
General Manager: Mr. M. Villiard 
 
Abu Dhabi Company for Onshore Oil Operations (ADCO) 
P.O. Box 270, Abu Dhabi 
Tel: 971-2-6040000, Fax: 971-2-669785 
General Manager: Kevin Dunn 
 
Dubai Port Authority 
P.O. Box 17000, Dubai, UAE 
Tel: 971-4-815000, Fax: 971-4-815142 
Chairman: Sultan Bin Sulayem 
 
Dubai Municipality 
P.O. Box 67, Dubai, UAE 
Tel: 971-4-221141, Fax: 971-4-231795 
Chairman: Qassim Sultan 
 
Dubai Petroleum Company (DPC) 
P.O. Box 2222, Dubai, UAE 
Tel: 971-4-442990, Fax: 971-4-4062200 
President: Ron Rutherford 
 
Agricultural Trade Office (ATO), P.O. Box 9343, Dubai, United Arab 
Emirates, Tel: 971-4-314063, Fax: 971-4-314998 
 
 
Market Research Firms: 
 
SSS Corporate Research, P.O. Box 7814, Abu Dhabi, UAE 
Tel: 971-2-583336/263455, Fax: 971-2-583337/263466,  
Contact: Mr. Peter D. Alcock 
 
Ram Information Center, P.O. Box 72594, Abu Dhabi, UAE 
Tel: 971-2-789174, Fax: 971-2-794092
Contact:  Mr. George Reynolds, General Manager 
 
Falcon Marketing & Consulting Company Ltd, P.O. Box 47121 
Abu Dhabi, UAE, Tel. 971-2-333061, Fax. 971-2-322650 
Contact: Mr. Fadi Mitri, General Manager 
 
Core Management Consultants, P.O. Box 4357, Sharjah, UAE 
Tel: 971-6-366349, Fax: 971-6-366351
Contact:  Mr. Pervaiz Nasir, Managing Partner 
 
Dryland Consultants-Economics & Management, P.O. Box 9388 
Dubai, UAE, Tel: 971-4-310345, Fax: 971-4-310278 
Contact:  Dr. Robert Edward, Managing Director 
 
Middle East Marketing Research Bureau, P.O. Box 6097, Sharjah, UAE, Tel: 
971-6-596919/596116, Fax: 971-6-520400,  
Contact:  Mr. John Presutti, General Manager 
 
Pan Arab Research Center WLL, P.O. Box 50114, Dubai, UAE 
Tel: 971-4-376696, Fax: 971-4-344456
Contact:  Mr. Sami Raffoul, General Manager 
 
Griffin Nagda & Company, P.O. Box 1400, Dubai, UAE. 
Tel: 971-4-222537, Fax: 971-4-242367
Contact: Abdul Wahid Nagda, Managing Director. 
 
U.S. Dept. of Agriculture, Foreign Agricultural Service, Trade 
Assistance and Promotion Office, Tel: 202-720-7420. 
 
 
Appendix F:  Market Research 
 
List of Agricultural Reports 
 
- Annual Marketing Plan 
- Monthly ATO Activities Report 
- Directory of U.S. Company Representatives in the GCC 
- Guide for Doing Business in the GCC 
- Update on U.S. Agricultural Exports to the GCC 
- Wheat and Edible Oil Sales Update 
- GCC Food Shelf Life Standards 
- GCC Food Regulations: Salmonella 
- Grain Trade Update  
- Market Brief - Almonds 
- Gulf Food '95 Final Report 
- Weekly Poultry and Egg Price Report 
- Foreign Buyers List 
- Annual Poultry Report 
- Agricultural Situation Report 
 
 
2.  INDUSTRY  - MARKET RESEARCH 
 
Industry Sub-Sector Analyses (ISAS) 
 
Title   Date Prepared  
- Pumps-Water (PVC)   March 1995 
- Medical Equipment   March 1995 
- Desalination Equipment   March 1995 
- Textile Furnishings   May 1995 
- Plumbing Products   June 1995 
- Oil and Gasfield Machinery   December 1995 
- Teleconferencing Equipment      January 1996 
- Defense Industry Equipment   April 1996 
- Heavy Construction Machinery   April 1996 
- Diagnostic Equipment: CAT/MRI/Radiology   May 1996 
- Personal Computers   May 1996 
- Central Airconditioning   May 1996 
- Skin Care Products/Cosmetics   June 1996 
 
 
Appendix G:  Trade Event Schedule 
 
INDUSTRY 
 
Dates (1995)         Type of Event           Name & Location of Event 
 
Sep 27-Oct 1         '95, Dubai                     U.A.E. 
Oct 8-12              Arab Water Technology         Gulf Building 
                      Refrigeration & Aircon-       Dubai, U.A.E. 
                      ditioning, Landscaping, 
                      Gulf Cleaning&Maintenance 
                      & Construction Equpmnt, 
                      Arab Agri-business 
Oct 17-20             Arab Jewellery '95,           Abu Dhabi, U.A.E. 
                      Organizer: 
                                                    Emirates Exhibition 
Center 
                        P.O. Box 26964 
Abu Dhabi, U.A.E. 
Tel: 971-2-795444; Fax: 971-2-795136 
 
Oct 18-21   BIO      Motexha/Childexpo,         Dubai, U.A.E. 
Oct 18-22            Arab Horse '95,            Dubai, U.A.E. 
Oct 28-31            Computer Shopper,          Dubai, U.A.E. 
Oct 28-31   BIO      GITEX,                     Dubai, U.A.E. 
Nov. 5-19            Media International Dubai 
                     Television -Mid TV '95,    Dubai, U.A.E. 
Nov 14-16   BIO      Franchising & Licensing 
                     in the Middle East,        Dubai, U.A.E. 
                                                Hilton Hotel, Dubai 
Nov 12-16   BIO      Dubai Airshow '95,         Dubai, U.A.E. 
                     U.S. Pavilion Organizer: 
                     Thomas Kallman, Kallman Associates Inc. 
                     Tel: 201-652-7070, Fax: 201-652-3898 
Nov 21-25            Middle East International 
                     Motor Show,                Dubai, U.A.E. 
Nov 21-25            Overseas Property &  
                     Investment Exhibition,     Dubai, U.A.E. 
 
1996 
Jan 9-12        Middle East Health '96          Abu Dhabi, U.A.E. 
                Organizer: Emirates  
                Exhibition Center 
                P.O. Box 26964,                 Abu Dhabi, UAE. 
                Tel: 971-2-795444;  
                Fax: 971-2-795136 
Jan 14-16       INDEPO, Dubai, U.A.E. 
Jan 14-17       Middle East Electricity,         Dubai, U.A.E. 
Mar 4-8         Salon du Parfum et 
                Cosmetiques (SAPACO '96),        Abu Dhabi, U.A.E. 
                Organizer: Emirates Exhibition 
                Center, P.O. Box 26964 
                Tel: 971-2-795444; 
                Fax: 971-2-795136 
Mar 10-13       Arab Oil & Gas,                  Dubai, U.A.E. 
Mar 12-14       Toys, Games and Hobby Fair,      Dubai, U.A.E. 
Mar 20-23       Middle East International        Dubai, U.A.E. 
                Cable&Satellite Exhibition 
Mar 20-23       Consumer Electronics,            Dubai, U.A.E. 
Apr 2-4         Gulf Leisure and Fun Park,       Dubai, U.A.E. 
Apr 2-5         Sportex Middle East '96,         Dubai, U.A.E. 
Apr 7-9         Waste Expo & No Dig,             Dubai, U.A.E. 
Apr 9-12        8th Gulf Education&Training,     Dubai, U.A.E. 
Apr 14-17       World of Concrete,               Dubai, U.A.E. 
Apr 15-18       Arab Banking Equipment,          Dubai, U.A.E. 
                Technology & Services 
                Exhibition '96, 
Apr 17-21       Retexha/Childexpo,               Dubai, U.A.E. 
Apr 21-23       MIDCOM- The Middle East          Dubai, U.A.E. 
                International Communications 
                Expo '96, Abu Dhabi, U.A.E. 
                Organizer: Infocenter  
                International, World Trade Centre 
                P.O. Box 9392, Dubai, UAE. 
                Tel:971-4-310551; 
                Fax: 971-4-310096 
Apr 23-25       Networking '96,                  Dubai, U.A.E. 
May 22-25       Middle East International Boat 
                Show,                            Dubai, U.A.E. 
June 3-6        Middle East International  
                Commercial Security, Fire & 
                Safety Exhibition,               Dubai, U.A.E. 
Mar 19-23   BIO IDEX- International Defense 
                Exhibition,                      Abu Dhabi, U.A.E. 
                U.A.E. Contact: CODEX '97, 
                P.O. Box 27426, Abu Dhabi 
                Tel: 971-2-324744 
                Fax: 971-2-347299. 
                U.S. Pavilion Organizer:  
                Hans Hollander, American 
                Aerospace Industries, Inc. 
                Tel: 914-698-9385; 
                Fax: 914-698-3979 
Oct 13-16  BIO  Abu Dhabi International          Abu Dhabi, U.A.E. 
                Petroleum Exhibition & 
                Conference, Abu Dhabi, U.A.E. 
                Organizer: Abu Dhabi 
                International Exhibitions, 
                P.O. Box 5546, Abu Dhabi, UAE. 
                Tel:971-2-446900;  
                Fax: 971-2-446135 
 
For further information on the exhibitions in Dubai, contact: The Dubai 
World Trade Center, P.O. Box 9292, Dubai, United Arab Emirates. Tel: 
971-4-314200; Fax: 971-4-3064089. 
 
 
AGRICULTURE  
 
1. In-store promotion of U.S. Food Products, November 1995 
2. In-store promotion of U.S. Food Products, April 1996 
3. GULFOOD'97, February 1997
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