Doing business in the United Arab Emirates

Transcription

Doing business in
the United Arab Emirates
2013 / 2014
© 2013 Grant Thornton UAE. All rights reserved.
1
Content
Introduction
UAE Profile
Economy
Taxation
Setting up a business in the UAE
Dubai International Finance Centre
(DIFC)
Immigration and Visa Process
UAE Free Zones
About Grant Thornton
Contact us
Appendices
UAE Free Zones
3
4
7
8
9
12
13
14
15
19
22
23
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Introduction
“The United Arab Emirates (UAE) has continued to strengthen
its position within the global market. The opportunities which
are present, along with the UAEs strong connections with some
key financial and international markets, makes this a region of
choice for dynamic businesses.
Investment in the UAE reflects the continued growth of the
region post the recent economic downturn experienced around
the world. Economic restructuring has been underpinned by
efforts to strengthen the business climate, boost investment and
foster the emergence of a more vibrant private sector. The UAE
aims to be a regional financial hub and the present market
conditions, external market feedback and optimism indicate a
positive change in trends.
This guide will provide an overview of the financial, business
and legal infrastructure, aswell as a key insight into doing
business within the UAE.”
Hisham Farouk,
Managing Partner, Grant Thornton UAE
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UAE Profile
Capital:
Largest city:
Main language:
Main religion:
International dialing code:
Abu Dhabi
Dubai
Arabic
Islam
+971
The UAE has continued to grow to become one of the largest economies in the Middle East. The country offers
endless investment opportunities to local and international investors and attracts trade due to a number of free
zones located throughout the Emirate which offer lucrative incentives attracting investment. Currently there are
over 20 free zones in the UAE which offer differing benefits throughout the region allowing investors to chose
the favorable option for there needs.
Geographical Location
The UAE is a federation of seven emirates, the constituent emirates are Abu Dhabi, Dubai, Sharjah, Ajman, Ras
al-Khaimah, Fujairah, and Umm al-Quwain. The capital is Abu Dhabi, which is also the state's center
of commercial and cultural activities. Dubai is seen as the most attractive emirate for business.
The UAE is located on the Eastern coast of the Arabian peninsula. It is within close proximity to Oman, Saudi
Arabia and Qatar. It is located within the northern approach to the Strait of Hormuz, a pivotal point for world
crude oil. The total area of the UAE is approximately 77,700 square kilometers, Abu Dhabi being the largest
emirate and Ajman being the smallest.
Petroleum and natural gas are two of the predominant natural resources which encourage investment and trade.
The UAE has close transport links internationally, with airports located in Abu Dhabi, Dubai and Sharjah. Dubai
airport serves as one of the major international hubs in the Middle East, which allows it to contribute to the
economy with current figures showing that it “supports over 250,000 jobs in Dubai and contributes over US$22
billion, which represents around 19% of total employment in Dubai, and 28% of Dubai’s GDP”. The aviation
industry continues to grow, with expected figures in 2020 showing a significant increase to this industry.
Population
The population of the UAE is 8.1 million according to united nations statistics. The region has a high migration
rate and has one of the worlds largest growing populations specifically due to the migration. The region has a
large expatriate community who come from the United States, India, Pakistan and the United Kingdom to name
a few. This has supported the UAE in ensuring the highest skilled workforce is available to support the local
community to continue strengthening the economy.
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Language
The native language of the UAE is Arabic which is widely spoken by the local community. English is the second
language of the UAE, however due to the high levels of migration the region also benefits from a diverse
language skill set with the following languages spoken across the UAE; Urdu, Hindi, Persian, Pashto, Malayalam,
Bengali, Tamil, Balochi, Russian, Tagalog and Mandarin Chinese.
Climate
Due to the UAE being mainly located on prior desert land, it lies in the arid tropical zone. The climate is
characterized by high temperatures and humidity in summer with the temperature reaching above 50 degrees
celsius. During the winter months, the region has irregular rainfall with the annual average rarely exceeding no
more than 10 inches.
Currency
The currency for the UAE is Dirhams, the currency abbreviation is AED. There are a number of international
banks located within the region which makes foreign currency exchange easily accessible.
Business hours/time zone
The working week in the UAE is Sunday to Thursday with Friday and Saturday being the national weekend. The
time zone is +4hrs GMT which allows the UAE to continue to respond to international business needs
throughout the world, with many seeing the region as the MENA business hub.
Public holidays
The public holiday dates differ annually in the UAE dependent on the month that Ramadan falls. The
government has confirmed the following public holidays for 2013 (dependent upon the moon the date may
change):
1 Jan
New Year's Day
24 Jan
Milad un Nabi (Birth of the Prophet Muhammad)
4 Jun
Lailat al Miraj (Night of Ascension)
7 Aug
Eid al-Fitr (End of Ramadan)
14 Oct
Eid al-Adha (Feast of Sacrifice)
4 Nov
Al-Hijra (Islamic New Year)
2 Dec
National Day
The following public holidays have been confirmed for 2014 (dependent upon the moon the date may change):
01 Jan
New Year's Day
13 Jan
Milad un Nabi (Birth of the Prophet Muhammad)
27 May
Lailat al Miraj (Night of Ascension)
28 Jul
Eid al-Fitr (End of Ramadan)
04 Oct
Eid al-Adha (Feast of Sacrifice)
25 Oct
Al-Hijra (Islamic New Year)
02 Dec
National Day
Government
The UAE is a constitutional federation of seven emirates; Abu Dhabi, Dubai, Sharjah, Ajman, Umm al-Qaiwain,
Ras Al Khaimah and Fujairah. The federation was formally established in December of 1971. The term of elected
office for the Vice President is five years, with the current Vice President of the UAE being Sheikh Mohammed
bin Rashid Al Maktoum. The UAEs political system, which is a unique combination of the traditional and the
modern, has underpinned this political success, enabling the country to develop a modern administrative
structure, whilst ensuring that traditions are maintained, adapted and preserved.
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Investment and business opportunities
There are many options open to international companies seeking to establish a business in the UAE. Apart from
forming a trading relationship through commercial agencies, for many companies there are distinct advantages in
having an on-the-spot presence. This makes it easier to research market prospects, make contacts, liaise with
customers and see through the details of any transactions.
Having a presence is also important in the context of the commercial culture of the Middle East. Business
owners and people in the region prefer to deal with someone they know and trust by building personal
relationship. Another regional factor that adds to the importance of having a physical presence is that the buying
patterns of some countries served by the UAE are unpredictable, creating a need for first class market
intelligence and information.
Direct trade
International companies wanting to trade directly with the UAE by supplying goods and services from abroad
should appoint a commercial agent who is already established in the market. The agent must be a UAE National,
or a company solely owned by a UAE National. The foreign principal and the agent in the UAE are required to
enter into a commercial agency agreement specifying the products and the territories to be covered by the
contract. They should also comply with the relevant provisions of the Federal Commercial Agency Law and the
procedures and conditions prescribed therein. It should be noted that a commercial agent can not carry out
activities in the UAE unless the name is entered in the Commercial Agency Register maintained at the Ministry
of Economy and Commerce.
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Economy
The economy in the UAE has continued to grow throughout the years and has overcome the economic
downturn rapidly. It has increased by more than six fold over the past 26 years to become the fourth largest
economy in the Arab world. Recent years has witnessed the emergence of pioneer industries in view of the
advantages and incentives granted to investors along with the simplicity of procedures for practicing businesses
in the UAE. The UAE economy rose by 20.8% in 2012 to $360 billion supported by diverse sector strength,
ranking it third in the Middle East and 30th in the world.
The UAE offers lucrative investment incentives and opportunities to local and internationals investors which are
not as widely accessible internationally. Significant among these are no corporate or income tax, no personal
income tax, no foreign exchange controls, 100% repatriation of capital and profits, amongst many other benefits
which attract foreign investors to the region.
Abu Dhabi
Abu Dhabi is the capital of the UAE and is ruled by Khalifa bin Zayed Al Nahyan, who also is the president of
the UAE. It has a population of over one million people of whom 80% are expatriates.
One of the worlds largest producers of oil, Abu Dhabi has actively attempted to diversify its economy in recent
years through investments in financial services and tourism. Abu Dhabi has adopted rapid industrialization as a
strategic option with a view to diversify the income. As a result the share of GDP of the non-oil sector, mainly
the industrial sector has steadily increased.
The Government has continued to increase investments in the emirate, besides steps to attract foreign direct
investments. With privatization as the key work in the economic development, the Government and the Abu
Dhabi Chamber of Commerce and Industry have been making strenuous efforts to attract private capital. This
has increased the tempo of the industrial activity and production in the emirate.
Dubai
Oil has played a progressively diminishing role in the Emirates. In 1985, the oil sector contributed to just under
half of Dubai's GDP, in 1993 that figure had fallen to 24% and by 2007 to less than 6%. It has been predicted
that by 2015, oil revenues are expected to account for less than 1% of Dubai's GDP.
Investment in the UAE reflects the continued growth of the region post the economic downturn experienced
around the world. The UAE GDP per capita is currently third in the world and second in the Middle East after
Qatar and Kuwait, the UAE has almost US$ 1 trillion in foreign invested assets.
Economic restructuring has been underpinned by efforts to strengthen the business climate, boost investment
and foster the emergence of a more vibrant private sector which continues to ensure that Dubai is seen as the
emerging leader in re-export, following the likes of Hong Kong and Singapore.
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Taxation
The UAE has no personal income, corporate or withholding taxes. The country is characterised by an almost
complete absence of taxation.
Bank and Petroleum Taxes
With the exception of banks and oil companies no corporate income tax is payable by businesses in the UAE.
Oil companies’ pay up to 55% tax on UAE sourced taxable income whereas foreign banks pay 20% tax on
taxable income generated in the Emirate. The taxable income of banks is as per the audited financial statements
whereas that of oil companies is as per the concession agreement. Oil companies also pay royalties on
production.
Customs Tax
Imports into the UAE can only be undertaken by those importers who have the appropriate trade license.
Import duties have been largely standardised at 5%, but there are many exemptions, including food, building
materials, medical products and any item destined for a free zone. Cigarettes are the exception to the general
rule with the federal government approving 100% tax., a 50% tax is levied on alcohol.
Free Trade Agreements
The UAE is under an agreement with the GCC (Gulf Cooperation Council) and therefore required to levy 10%
duty on all luxury goods. By law, approximately 70 goods have been exempted from tariffs, including medicines,
agricultural machinery, un-worked silver and gold, iron and steel for use in construction, and raw or partially
worked materials for use by local manufacturers. Goods produced within the GCC are also exempt from duties
as are goods destined for a Free Zone.
Municipality Taxes
Municipality service charges are levied on individuals living and working in the UAE. Service charge
percentages vary among the emirates. A service charge of five to ten per cent is charged on food purchased in
restaurants. Furthermore, hotels charge a ten to fifteen per cent service charge per night on room rates. These
charges are usually included in the customer’s bill, which the municipality will collect from restaurants and
hotels.
UAE Free Zone Taxes
Free Zones contain financial incentives to establish manufacturing industries in the UAE. These are primarily
focused on exemption from all taxes and duties levied on profits or production.
The major incentives offered by the UAE Free Trade Zones are:
• 100% foreign ownership with 100% repatriation of capital and profits.
• No corporate taxes for 50 years
• No personal income taxes.
• Exemptions from customs duties.
• Absence of currency restrictions.
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One of the important aspects of doing business in the UAE is the legal structure. In the past, each Emirate
followed its own procedures governing the operations of foreign business interests. Since 1984, steps have been
taken to introduce a codified companies’ law applicable throughout the UAE. Federal Law No. 8 of 1984, as
amended by Federal Law No.13 of 1988 – the "Commercial Companies Law" – and its by-laws have been
issued.
The Commercial Companies Law also defines several categories of legal entities which can be established in the
UAE. It sets out the requirements for companies in terms of shareholders, directors, minimum capital levels
and incorporation procedures. It further lays down provisions governing conversions, merger and dissolution of
companies.
Licenses
The basic requirement for all business activity in the UAE is to secure one of the following three categories of
licenses:
• Commercial licenses covering all kinds of trading activity;
• Industrial licenses for establishing industrial or manufacturing activity.
• Professional licenses covering professions, services, craftsmen and artisans;
These licenses are issued by the Department of Economic Development with the exception of licenses for
hotels and other tourism related businesses which are issued by the Department of Tourism and Commerce
Marketing. However, licenses for some categories of business require prior approval from certain ministries and
other authorities, such as:
• Banks, financial institutions and financial service providers - from the Central Bank of the UAE;
• Manufacturing companies - from Ministry of Finance and Industry;
• Pharmaceutical and medical products - from the Ministry of Health;
More detailed procedures apply to businesses engaged in oil or gas
production and related industries. In general, all commercial and
industrial businesses in the UAE should be registered with the
Chamber of Commerce and Industry.
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Legal Structure
Some of the important legal entities, permitted to be registered under the Commercial Companies Law, are
broadly characterized as under:
Limited Liability Company
A Limited Liability Company can be formed by a minimum of two and a maximum of fifty shareholders
whose liability is limited to their shares in the company's capital. At least 51% of the share capital of the
company should be owned by UAE National(s). Such companies are recognized as offering a suitable
structure for foreign individuals or organisations interested in developing a long term relationship with the
local business community.
In the UAE, there is no minimum capital required (to be contributed in cash or in kind) for the Limited
Liability Company engaged in business activity other than general trading. Although the maximum foreign
equity participation in a Limited Liability Company is 49%. Profits can be distributed in different proportions
as agreed by the promoters/shareholders of the company. With the approval of the UAE National
Shareholder(s), the entire business operations of the company may be entrusted to the foreign shareholder(s).
The foreign shareholder(s) can, therefore, claim a higher share of profit in case such shareholder(s) provides
exclusive management and/or any special services or facilities to the company. As far as the protection of the
minority shareholder(s) interest is concerned, this can be done by way of shareholders resolutions and certain
related security documents.
In case the UAE national partner is not practical and only acts as the companies local sponsor for annual fee.
Supplement agreement will be signed by each parties to ensure and the rights and obligations for both.
Although the rules and regulations for establishing Limited Liability Companies are generally similar in all the
seven Emirates of UAE.
Branches and Representative Offices of Foreign Companies
Foreign countries may not practice its main business in the state, and may not establish branches unless
licensed to do that by the Ministry of Economy after obtaining the approval of the concerned authorities,
which license shall specify the business it is licensed to practice, provided that such license may not be issued
unless the company has a national agent.
The obligations of the agent towards his company and third parties shall be limited to rendering the services
required for the company without holding any responsibility or financial commitment in respect of his
company's branch or office business or activity inside the Emirate or abroad.
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The representatives offices and branches of the foreign companies shall be the headquarters of its business
and its business shall be subject to the provisions of the UAE law.
The main difference between a branch office and a representative office is that a branch office may exercise
freely the activities for which it is licensed whereas a representative office may practice only promotional
business for the products and services provided by the parent company.
The branch name and activity should be the same of the parent company in the country of origin.
The foreign companies and its branches shall have an independent budget, independent profit /loss
accounts, and shall have an auditor.
If the foreign companies or its branches practiced their business inside the state without carrying out the
above mentioned provisions, the persons practicing such business shall be personally and severally
responsible for that.
Professional Firm
Under the local laws of the various Emirates, foreign nationals are permitted to open a Professional firm in
their own name or in partnership with UAE Nationals or foreign nationals to practice a vocation or a
profession such as legal consultancy, IT services, accountancy, management consultancy and other similar
services. Such establishments can, as per current regulations, be 100% foreign owned and do not require a
UAE National as a partner.
However, it may be noted that for carrying out certain specific professional activities, it is necessary to
comply with the related laws and regulations which include obtaining prior approvals from the concerned
Government and Local Authorities and appointing a UAE National as a Partner or Service Agent.
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Dubai International Finance Centre
The Dubai International Finance Centre more commonly known as DIFC houses some of the largest financial
services, banking, legal and accountancy firms in the world. It was developed and resembles the financial hubs in
New York, London and Hong Kong. Its primary aim is to serve the vast region of the Middle East, North Africa
and South East Asia, which allows many to believe that Dubai is soon to become the MENA business hub of the
world.
The DIFC focuses on several sectors within the financial industry such as banking services, capital markets, asset
management and fund registration, insurance and reinsurance, Islamic finance, business processing operations
and ancillary services.
The Dubai International Finance Centre was established to create a regional capital market, offering investors
and issuers of capital world class regulations and standards. The hallmarks are integrity, transparency and
efficiency.
The DIFC offers organisations that reside there a highly attractive investment environment including:
•
100% foreign ownership
•
0% tax rate on income and profits
•
Wide network of double taxation treaties available to UAE incorporated entities
•
No restrictions on foreign exchange or capital/profit repatriation
•
Transparent operating environment with high standards of rules and regulations
•
Strict supervision and enforcement on money laundering laws
•
State of the art infrastructure, data protection/security
However, unlike ‘offshore’ tax havens, DIFC is a fully fledged ‘onshore’ capital market, comparable to Hong
Kong, London and New York.
The Dubai Financial Services Authority (DFSA)
As the independent regulator of financial and ancillary services undertaken in or from the DIFC, the DFSA
licenses, authorises and registers businesses and individuals who wish to conduct these services in the Centre;
supervises their activities and will enforce the law where necessary.
Grant Thornton UAE is registered by the DFSA as Approved Auditor and Ancillary Service Provider. For
further information relating to DIFC, please contact us.
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Immigration and Visa Process
It is a mandatory requirement that all companies register with the Ministry of Labour and Department of
Immigration in order to employ a foreign workforce. Business travellers are allowed to visit and can obtain
a visa prior to travel from any reputable and registered agent to attend meetings, training, exhibitions etc.
Citizens from the following countries can obtain a visa on arrival which is valid for 30 days and can be
extended for another 30 days from the Ministry of Immigration: Andorra, Australia, Austria, Belgium,
Brunei, Denmark, Finland, France, Germany, Greece, Hong Kong, Iceland, Ireland, Italy, Japan,
Liechtenstein, Luxembourg, Monaco, New Zealand, Norway, Portugal, San Marino, Singapore, South
Korea, Spain, Sweden, Switzerland, The Netherlands, United Kingdom, US and Vatican.
GCC Country Residents
Residents of the GCC who have a valid residence visa for at least 180 days can obtain a visa on arrival for
30 days which can be extended for a additional 30 days.
Applying for a visa due to work
All applications for employing foreign nationals must be approved by the Ministry of Labour. Every
company is required to register and obtain the Establishment card from the Ministry of Labour. Once the
application has gone through clearance the Dubai department of immigration will issue the entry permit.
The employee will be required to undergo a medical check and obtain a cleared medical report. Once the
cleared medical report has been obtained, the employee will be issued with a two year visa (three year in a
free zone) which can be renewed pending approval from the employer.
Consequently, the employer will then need to apply for a Labour card after which the employee will be able
to commence employment for the respective company.
Emirates ID card
Once the visa has been obtained, the company will put in a respective application for a Emirates ID card.
The employee will be required to go to the relevant office (as mentioned when undergoing their medical
test), to have their picture and fingerprinting done. Once this has been done, they will receive their
Emirates ID card within 30 working days.
Investor Visa
A Partner of a Limited Liability Company (LLC) or a professional firm can obtain a investor visa which is
issued from the Immigration Department. They require no further approval and this can be obtained
without authorization from the Ministry of Labour. However, this must be checked on the intended date.
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UAE Free Zones
The introduction of Free Zones has transformed the economic market of the UAE within the last 20 years,
bringing about tremendous change in the industrial scene of this young nation. The pioneer in the Free Zone
Empire in the UAE is Jebel Ali Free Zone, which was started in Dubai on 9th February, 1985. Jebel Ali Free
Zone being the first Free Zone in the country has created the benchmark for regulations and incentives. Its
rapid growth has also provided a powerful economic inspiration to the other Emirates, which have set up their
own Free Zones to attract investment. Success of any viable Free Zone largely depends on quality of service
and facilities it offers and the UAE is a brilliant example of this hypothesis. With the number of Free Zones
increasing, their impact on the UAE economy has deepened.
The primary UAE Free Zones are listed hereunder and each provide differing incentives which can be found in
the appendices:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
Jebel Ali Free Zone, Dubai (JAFZA)
Dubai Airport Free Zone (DAFZA)
Dubai Multi Commodities Centre & Jumerah Lake Towers (DMCC & JLT)
Dubai Internet City (DIC)
Dubai Media City (DMC)
Dubai Healthcare City
Dubai Studio City (DSC)
Dubai International Academic City (DIAC)
Dubai knowledge village (DKV)
International Media Production Zone (DMPZ)
Dubai Biotechnology & Research Park ( DuBiotech)
Dubai Outsourcing Zone (DOZ)
Dubai World Central (Dubai Logistics City)
Dubai Gold & Diamond Park,(DGDP)
Sharjah Airport International Free Zone (SAIF Zone)
Hamriyah Free Zone, Sharjah (HFZ)
Ras Al Khaimah Free Zone (RAK)
Saadiyat Free Trade Zone
Abu Dhabi Airport FZ
Twofour54 – Abu Dhabi
MASDAR City – Abu Dhabi
Khalifa Industrial Zone (Kizad) - Abu Dhabi
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About Grant Thornton
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About Grant Thornton UAE
Grant Thornton UAE
Grant Thornton UAE is a member firm within Grant
Thornton International Ltd We have been providing
assurance and advisory services to growth oriented,
entrepreneurial companies which are based in all
markets and industries since 1966.
The extensive local and regional knowledge gained
through the years has supported the development of
the firm’s reputation for providing a distinctive client
service to its local, national and international client
base.
Our Middle East Reach
Grant Thornton combines the international reach,
depth and expertise of the larger firms with the
personal attention, value for money and relationship
approach of the smaller firms. This service focus has
made us the leading firm in each of our chosen
markets, and the business advisers of choice to dynamic
businesses.
Our extensive Middle East reach provides us with
access to over 600 professional employees, spread
across 18 offices.
The firm adopts best in class international tools,
methodologies and independence/ risk management
standards across all service lines in order to ensure
the service provided is to the highest technical,
professional and ethical standards for the benefit of
all our clients.
Grant Thornton offices in the UAE
Grant Thornton Dubai
PO Box 1620
Dubai, UAE
T +971 (4) 268 8070
E info@ae.gt.com
Grant Thornton Abu Dhabi
Al Sifa Tower 1, Al Maryah Island
24th Floor, Office no 2462
PO Box 128666
T +971 (2) 694 8556
E: info@ae.gt.com
Grant Thornton – DIFC Office
Office No .5, Level 3
Gate Village 4, DIFC, Dubai, UAE
T +971 (4) 268 8070
E info@ae.gt.com
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About Grant Thornton International
35,000 people, in over 120 countries with a combined revenue of over $4bn
Grant Thornton is one of the world's leading organisations of independent assurance, tax and advisory firms. The
combined network revenues equated to $4.2 billion in 2012, which represented a10.4% global growth, the highest
growth rate in our sector. In 2012 regional growth increased to over 18% in the Middle East.
These firms help dynamic organisations unlock their potential for growth by providing meaningful, actionable
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Proactive teams, led by approachable partners in these firms, use insights, experience and instinct to solve
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17
Dynamic services for dynamic clients
We offer a comprehensive suite of services for dynamic organisations of all sizes. Whether you are an SME that
has just set up or a large business wishing to expand our tailored services will support your growth.
To find out more visit www.grantthornton.ae
18
Contact us
19
To find out more contact us…
Hisham Farouk is the Managing
Partner at Grant Thornton.
Hisham began his career in assurance services and has worked
with a number of large family owned businesses in the region. He
further went on to develop advisory capabilities for the firm.
He has wide exposure in assurance and management consulting
services and has advised multinational, regional and local
businesses on a wide range of issues including compliance and
regulatory matters, as well as conducting numerous valuation
exercises, due diligence and feasibility studies.
Hisham has completed the professional leadership programme at
Harvard Business School. He is the Client Relations Partner and
point of contact for all DIFC related services and sits on the
board of a regional investment house.
E: hisham.farouk@ae.gt.com
Mohamed Abu Shaara is the
Legal Manager at Grant Thornton.
Mohamed has over 12 years of legal experience gained within the
professional service sector in both Egypt and the UAE.
Mohamed provides client focused and tailored legal advisory
services. He has a broad and thorough knowledge of the UAE’s
commercial and labour rules and regulations.
Throughout his career, he has developed key stakeholder
relationships and often liaises with governmental authorities to
ensure clients’ needs are supported. Mohamed has experience of
working across all sectors and industries.
E: mohamed.abushaara@ae.gt.com
20
Unlock your potential for growth with
Grant Thornton UAE
21
Appendices
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UAE Free Zones
1. Jebel Ali Free Zone, Dubai
JAFZA is Economic Zones World’s flagship operation. One of the world’s largest and the fastest growing free
zones. Established in 1985, Jafza today is spread over an area of 48 sq. kms and is home to over 6400 companies,
including over 120 of the Fortune Global 500 enterprises, from across the world. It is a leading driver of the
burgeoning UAE economy. With its impeccable track record, Jafza stands for innovation, customer centricity,
transparent operations and entrepreneurial dynamism.
The value proposition consists of the integration of products and services offered. The “basics” of the value
proposition include services and incentives, such as 100% foreign ownership, no customs duty, 0% income and
corporate tax, no labor restrictions, no currency restriction, and one-stop shopping for services.
JAFZA issues various types of company licenses:
• General Trading License allows the holder to import, distribute and store all items as per Jafza rules and
regulations.
• Trading License allows the holder to import, export, distribute and store items specified on the license.
• Industrial License allows the holder to import raw materials, carry out the manufacture of specified
products and export the finished product to any country.
• Service License allows the holder to carry out the services specified in the license within the Free Zone. The
type of service must conform to the parent company’s license, issued by the Economic Department or
Municipality of the relevant Emirate in the UAE.
• National Industrial License is designed for manufacturing companies with an ownership or shareholding
of at least 51% with AGCC (Arabian Gulf Co-operation Council) nationals / citizens. The value added to the
product in the Free Zone must amount to a minimum of 40%. This company license allows the holder the
same status as a local or AGCC inside the UAE.
Jebel Ali free zone companies may be formed within Jafza as the following types of companies:
• Free Zone Establishment (FZE) and Free Zone Company (FZCO): FZE and FZCO applicants can
avail of Jafza’s unique offer of forming a company as a separate legal entity. A FZE formation can be with a
single shareholder with a minimum capital of AED 1 million. An FZCO can be formed with 2 to 5
shareholders with a minimum capital of AED 500,000.
• Branch Company: Companies having valid registration and license outside Jafza can apply for the formation
of a branch Company in Jafza.
• Special Status Non-Resident Offshore Companies: Jafza, under Jebel Ali Free Zone Offshore Companies
Regulations 2003, allows the formation of an offshore Company by individuals or corporate bodies, as a nonresident company, having a corporate legal entity. Grant Thornton UAE are registered as one of the
approved offshore agents that can support.
23
UAE Free Zones
2. Dubai Airport Free Zone
The Dubai Airport Free Zone is located on more than 1.2 million sq. meters of land that includes apron space
of 473,000 sq. meters, on the north side of the Dubai International Airport. The significant advantages of
Dubai Airport Free Zone are its location within the boundaries of Dubai International Airport; fast and
effective cargo clearance services; on the-spot presence of international freight forwarders and logistics
companies; on-line customer service; excellent business facilities and round -the –clock services provided
online by the Customs Authority.
The highpoint of the Airport Free Zone is the attractive business incentives which include 100% foreign
ownership, no corporate or personal income taxes, the freedom to repatriate both capital and profits, full
exemption of import duties on goods used in re-export trade and for industrial purposes and the waiving of
currency restrictions.
Investors planning to conduct their business activities within any Dubai free zone are required to establish
their legal presence and obtain Dubai Business license for the activities they propose to undertake. Companies
looking to incorporate their services in Dubai Airport Free zone can choose from three types of licenses,
which can be selected according to your own requirements:
• Trade License: import, export, distribution, storage of specific products.
• Service License: the license's activity should conform to the parent company’s license, issued by the
Economic Department or Municipality of the relevant Emirate in the UAE.
• Industrial License: light manufacturing, processing, assembling and packaging.
Dubai Airport Free zone offers three different types of companies that can be set up at our premises. Each
offers you different options and benefits matching your specific business requirements. You can chose either;
• Free Zone Establishment (FZE)
Formed with one shareholder, either individual (a person) or non-individual (a company). A minimum
share capital of AED 1 million (USD 272,500) is required.
• Free Zone Company (FZCO)
Formed by a minimum of two and maximum of five shareholders. The shareholders can be individuals
(persons) of non-individual (companies) or a combination of both. A minimum share capital of AED
500,000 (USD 136,000) is required.
• Branch Office of an existing company
A foreign company can set up a branch of its existing company in Dubai Airport Free zone. No share
capital is required.
24
UAE Free Zones
3. Dubai Multi Commodities Centre / Jumeirah Lake Tower
The Dubai Metals and Commodities Centre (DMCC) has been created as a strategic goal of the Dubai
Government to establish a commodity market place in Dubai. DMCC was launched in April 2002 by the
decree from the Government of Dubai.
DMCC offers a unique opportunity for participants in a wide range of metals and commodities industries. It
provides facilities that bring together the gold trade, the diamond trade (housing a Diamond Exchange), and
trading in other selected commodities. The Centre aims to attract key players throughout the entire value
chain of each of these industry sectors, together with relevant support industries such as finance, logistics and
insurance.
DMCC is the master developer and licensing authority for the Jumeirah Lakes Tower (JLT) Free Zone, one of
the largest free zone developments in Dubai.
By offering a fit- for purpose regulatory framework, modern infrastructure, freehold property, innovative
product and cost efficient, value – added services, JLT successfully attracts key participants throughout the
entire value chain of wide range of commodities sector along with range of business from shipping
management, IT, project management and more.
Companies or individuals interested in setting up and licensing a new or existing company in JLT can choose a
trade or services license from a wide range of business activities.
The JLT free zone offers two types of business license:
• DMCC License (activities in commodities and related trade/services)
• JLT License (other business activities)
Within the JLT Free Zone, companies can set up as a:
• New Company
• Branch
• Subsidiary
• Representative Office
25
UAE Free Zones
4. Dubai Internet City
The Dubai Internet City was established under the Dubai Technology, Electronic commerce and Media Free
Zone Law which was promulgated by a Decree of H. H. The Ruler of Dubai in January 2000. This new Free
Zone creates a business and regulatory environment in which Technology, Electronic Commerce, Internet
and Media companies can operate globally out of Dubai with significant competitive advantages. Unlike the
other Free Zones in Dubai, The Dubai Internet City is industry specific. The business and activities that can
be carried out in the Free Zone include the following:
• Web Based
• Back Office
• Consultancy
• IT Support
• Software Development
• Sales and Marketing
• ASP
The companies registered in The Dubai Internet City are permitted to deal in all kinds of products except
those goods and services that are in violation of intellectual property laws, products boycotted in the UAE and
the goods and services that are generally prohibited under the UAE law. Companies operating in the Free
Zone are allowed to be 100% foreign owned. The companies are also able to obtain renewable leases of up to
fifty years on ready to operate offices or land and are facilitated by a "single window" clearance for all
Government approvals. These companies are permitted to sell their goods and services throughout the UAE
and are exempted from any taxes on corporate or personal income. There are also no restrictions on the
repatriation and transfer of capital, profits and wages in any currency to any place outside the Free Zone.
5. Dubai Media city
In March 2001 many prominent media businesses representing the multifaceted media community,
comprising broadcasting, production, music, multimedia, publishing, advertising, research and printing,
commenced operations from Dubai Media City. The buildings in the city are interlinked with smart
networking that reflects its core philosophy to provide a free and flexible environment where ideas flow with
transparency and without any barriers. The aim is to provide the media business community, the creative
talent in this City, together with the regional and international cooperation a launch-pad to the future of the
global media operations.
26
UAE Free Zones
Dubai Media City brings to the media community an advance infrastructure based upon a global
interconnected network, linked by satellites, computers, the internet, television, radio, journalism, cinema and
film production. The city also offers the most advance scalable IT network including web hosting. A
Customer Care Centre provides all technical and support services. Companies working in Dubai Media City
have the unique edge of commercial benefits derived from the Free Zone status including 100% business
ownership requiring no sponsorship, no customs duties, and guaranteed 50 years exemption from tax on
personal and corporate income. Media trade license will be issued from Dubai Media City. With the assurance
of hassle free, single window completion formalities for all its partners – be it large corporation or
independent entrepreneurs.
To pave the way for freelance talent in the rapidly growing arena of media evolution, Dubai Media City also
offers total office solutions through the Media Business Centre which provides a modern, supportive,
dynamic, and flexible infrastructure inclusive of latest technology and professional administrative services.
Assured sponsorship, simplified visa procedures, flexibility in leasing arrangements, a comprehensive business
infrastructure, highly skilled business assistance are just some of the facilities the Media Business Centre offers
to allow individual and corporate investors to participate in the media industry’s promising future.
6. Dubai Healthcare City
The Government of Dubai is developing Dubai Healthcare City (DHCC) with the goal of creating a regional
center of excellence for medical cervices, medical education, and life science research and development and
patients to receive world class health care and enjoy first class medical and wellness services. DHCC is an
integrated healthcare community providing a comprehensive medical treatment and prevention portfolio with
an optimised process and patient/customer flow.
The purpose of DHCC initiative is to provide the highest quality healthcare cervices to medical care and
wellness seekers from the region by creating a world class cluster of healthcare professionals and services
providers at the heart of Dubai. DHCC aspires to provide state of the art medical care services in selected
disciplines that are relevant to the problems facing the patients in the region.
DHCC has invited internationally respected institutions in health care delivery, education, services and
research and development to collocate on the site to take advantage of the synergies brought about by
physical proximity, interconnectivity and professional collaboration. Medical centers in Great Britain,
Germany and the United States are participating in the DHCC, with particular interest directed to the
academic medical center component. The DHCC tenants will have to meet international building standards
and quality standards.
27
UAE Free Zones
Featured below are some of the many features and benefits of Dubai Healthcare City:
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
100% tax free
Low operating costs
State-of-the-art facilities
Integrated healthcare community providing specialized first-class medical care
Business support services (hospitality, events, etc.)
Healthcare community
Networking and connectivity with global brands/customers
Coverage of the entire value chain of healthcare
Access to world-class, specialist medical care
Highest service quality in a culturally sensitive environment (private rooms, family
accommodation, etc.)
Access to best quality medical equipment and devices
Competitive, world-class working conditions
Access to state-of-the-art facilities in day clinics and hospitals
Access to doctor network and leverage of medical knowledge and training
Attractive investment opportunity and financial return
Increased brand exposure
7. Dubai Studio City
Dubai is fast emerging as a global entertainment destination with its media-friendly initiatives and
cosmopolitan lifestyle. The Dubai Media City free zone has firmly established itself as the media hub of the
region. The opportunity to work in such a dynamic networking environment has brought together over 1000
companies, including CNN, BBC and Sony, making it a vibrant mix of talent and resources.
As a business partner, you will enjoy benefits like:
•
•
•
•
100% exemption from personal, income and corporate taxes
100% repatriation of capital and profits with no currency restrictions
Opportunity to channel the vast amount of untapped wealth from local investors for project finance and
long-term investment
• Channel development opportunities
Dubai Studio City invites companies offering services from the film and broadcast production value chain to
set up their facilities here.
28
UAE Free Zones
8. Dubai International Academic City
The Dubai International Academic city is the first and only zone to be dedicated to the educational
institutions. It was introduced in 2007 and aims to develop the local talent pool, by becoming known as the
regions knowledge centre. It is located on a 18,000 sq. feet campus and hosts academic institutions from 11
different countries.
DIAC is able to license Higher Education authorities(such as Universities and Colleges), Online Universities,
Management development training centres, Education service providers, Non-academic service providers and
freelancers.
The benefits of this free zone include but are not limited to the following:
• 100% foreign ownership
• Full repatriation of profits and capital are permitted
• 100% tax free with a guaranteed 50 year exception from income, personal and corporate tax.
• Exceptions from custom duty of goods and services
DIAC is seen as bringing the very best of the international knowledge pool into one strategic location, to
continue its vision of being known as the regional knowledge centre.
9. Dubai Knowledge Village
Dubai Knowledge Village (DKV) launched in 2003, and is known as the destination for learning
excellence. Its picturesque campus sets the right environment for a knowledge-based sector with many
professional training centres and learning support entities.
This thriving knowledge community was founded as part of a long-term economic strategy to develop the
region’s talents, in an effort to introduce new skills and the latest learning methods and tools following
international standards of upgrading individual skill and professionalism.
The benefits include but are not limited to:
• 100% freedom from taxes
• 100% repatriation of assets and profits and effortless visa issuance procedures.
DKV is a unique hub that offers the best selection of Human Resource Management, Consultation, Training
and Personal Development programmes on a picturesque 1km long campus in the heart of Dubai.
29
UAE Free Zones
10. International Media Production Zone
Dubai's International Media Production Zone (IMPZ) seeks to create a environment for media production
companies from across the industry value chain, and from across the world, to interact and collaborate
effectively.
Catering exclusively to companies in the following industries – Graphic art, Publishing and Packaging – it is an
initiative of the Dubai government. It provides an environment of growth by building key facilities, investing
in infrastructure, and forming a unique free zone that incorporates industrial, commercial, residential and
community service projects under its mantle. The vast complex is housed on over 43 million square feet of
land, in the heart of commercial Dubai.
The initiative is part of Dubai's vision to develop itself into a global media hub. As such, it will provide a probusiness environment, sophisticated technology and community infrastructure to support and foster the
growth of media production.
11. Dubai Biotechnology & Research Park
The Dubai Biotechnology and Research Park (DuBiotech), is the region’s first business park dedicated entirely
to the global life science industry. DuBiotech’s aims to create, develop and advance the life sciences sector in
Dubai and the region by developing an industry cluster, establishing affiliations with international research
centers, educational institutions, regulatory bodies, and providing value-added services. DuBiotech aspires to
be the central hub for all life science industries for the Middle East.
The park offers drug discovery, R&D, manufacturing companies and industry specific service providers all the
support needed to make their presence. This includes suppliers of laboratory equipment and reagents, venture
capital firms, CROs, waste management firms, regulatory bodies etc.
Licensing and Activities
DuBiotech has identified a broad range of licensing categories and activities under which companies are
allowed to perform within the Park, which include:
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ƒherapeutics
T
Diagnostics and Analysis
ƒ
Agricultural, Forestry, Horticulture, Food
Environment
Specialty Supplies
Equipment
Life Science Consultancy
Life Science and Biomedical Associations (Non Profit)
30
UAE Free Zones
12. Dubai Outsourcing Zone
Dubai Outsource Zone (DOZ) is the perfect environment for companies that provide mid to high-end
outsourcing services and captives as well as serving as an offshore centre for disaster recovery facilities. Being
at the centre of trade, DOZ is well-positioned to cater to off shoring requirements from Europe, the US, the
Middle East, Asia and Africa.
Some of the key sectors that can thrive in DOZ are call centers, IT, finance, insurance, healthcare, logistics,
tourism, real estate, and energy with knowledge processes, research and development, and business continuity
and planning as the primary outsource functions. Dubai Outsource Zone combines all technologies in a
custom-made infrastructure that includes next-generation telecom, office space in intelligent buildings and
facilities management. The telecom services include:
•
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•
•
•
•
•
•
ƒeliable High-Bandwidth
R
Connectivity
IP Telephony
Automatic Call Distribution
Interactive Voice Response
Predictive Dialing Systems
Satellite Communications Services
Technical Support
31
UAE Free Zones
13. Dubai World Central (Dubai Logistics City)
Dubai Logistics City is optimally located alongside the apron of Al Maktoum International Airport and is in
close proximity to the Jebel Ali Port and Free Zone. DLC is positioned to serve a wide range of
transportation, logistics, and value-added operations within a single-bonded free zone environment. Due to
its adjacent location and direct connection with the Jebel Ali Port and Free Zone through the Dubai
Logistics Corridor (direct infrastructure connection, custom bonded), DLC will facilitate the
transportation of goods from air to sea and vice versa.
The categories of License available within DLC are as follows:
Logistics License:
Allows the holder to carry out specified logistics services (e.g. storage, transportation, distribution, sorting,
forwarding and clearing activities, order management, inventory management etc.). The license holder will be
able to pick up and deliver (but not sell) products within the UAE.
Industrial License:
Allows the holder to carry out a specified light manufacturing activity (e.g. blending, mixing, purifying,
assembling forming, repacking, or wrapping of products) by utilising hand labour or quiet machinery in a
manner which does not produce smoke, gas fumes, heat, light or other effects which may cause a
disturbance or nuisance to others. Industrial Licenses will not be issued without proof that an
Environmental Impact Assessment for the project has been carried out and approved by Dubai Municipality.
Trading License:
Allows the holder to import, export, sell, distribute and store items specified in the License. However, Free
Zone Enterprises holding a Trading License may only sell completed products in the UAE market
through a local distributor or a commercial agent which is properly registered in the UAE.
Service License:
Allows the holder to carry out services specified in the Licence within the DWC Free Zone and elsewhere in
the UAE (although additional local licenses may be required in some Emirates). Service Licences are issued to
Free Zone Enterprises supporting the logistics industry and will include services such as consulting, software,
training, repair, catering, insurance, and human resources services.
Education License:
Allows the holder to carry out educational and social services, educational, training and educational
consultancy services
32
UAE Free Zones
14. Gold and Diamond Park
The Gold & Diamond Park is a part of the Jebel Ali Free Zone Area, whereby all tenants can benefit from the
facilities offered by the free zone authority. Tenants can form their own companies having 100% ownership
and also easy access to obtain visas for owners and employees alike. Other facilities include:
• Healthy environment through proper ventilation systems, exhaust facilities and provision of acid disposal
points.
• Safety and security through 24-hour security (patrols & video surveillance), fire alarms and fire defense
systems.
• Handy labor accommodation and transport.
• Hallmarking provided by the Dubai Municipality's regular pickup services for all gold manufactured and
sold from the Gold & Diamond Park.
• Visitors centre attracting tourists and shoppers.
15. Sharjah Airport International Free Zone (SAIF-Zone)
Spread over 10 million square meters and equipped with the state of- the-art facilities, SAIFZONE has been
designed to cater to both local and international investors and offers the tools to cope with the rapidly
changing business environment in the region. Ideally located in the centre between the east and the west,
SAIF-ZONE is looking to become a major distribution centre for the European market and the Far East
market as well as catering to the growing demand from the CIS and Africa.
The various advantages of operating in SAIFZONE include:
• No corporate or personal income-tax
• 100 per cent foreign ownership and full repatriation of capital and profits.
• Access to the Sharjah International Airport which receives all categories of aircraft and handles all types of
cargo and has one of the most sophisticated hub stations in the region.
Investors can avail different types of licenses in order to do business in the SAIF-Zone.
• Industrial License - Allows the investor to import raw material, manufacture, process, assemble, package
and export the finished product. (Subject to clearance from SAIF-Zone Health & Environment Dept.)
• Commercial License - Allows the investor to import, export, distribute, consolidate and store items
specified in the license. There is a maximum limit of three similar product lines.
• General Trading License - As the name suggests, a large number of products fall within its ambit. This
type of license can be obtained under the commercial license.
• Service License - Allows the investor to carry out only specified services. (Unless restricted by the federal
or local authorities, all types of services are allowed within the SAIF-Zone).
33
UAE Free Zones
16. Hamriyah Free Zone
Located 15 kilometers north of Sharjah city and based around Hamriyah Port in Sharjah, this new Free Zone
derives its strength from its strategic location which not only provides deep water access but also, being on the
UAE’s highway network, links all the seven Emirates and provides connections to neighboring Gulf States.
The Free Zone area consists of approximately ten million square meters of prime industrial and commercial
land and a deepwater harbor with enough room for expansion in future. It offers purpose built office
accommodation, warehousing and factory units and an international business centre having space for
Executive office suites with state-of-the-art conferencing and Internet facilities.
Over 1 million sq. meters is being zoned for developing a residential area, an international hotel and recreation
and leisure facilities on the beach and the Hamriyah sea water lagoon. In addition to usual investment
incentives of 100% foreign ownership, no corporate or personal income taxes, exemption from all commercial
levies, full repatriation of capital and profits and land lease up to 25 years renewable for further 25 years, the
special advantages offered by Hamriyah Free Zone include:
• Access to the Arabian Gulf and the Indian Ocean through the two ports of Sharjah situated on east and
west coasts linked by modern multilane highway network;
• Customs privileges for goods destined for Hamriyah Free Zone;
• Quick and simple procedures for approval of License Applications and unrestricted recruitment and
sponsorship of personnel and procurement of visas;
• Easy access to one of the most important cargo hubs of the region at Sharjah International Airport;
• Access to Internet, e-mail and other secretarial and day-to-day administrative services existing at the Free
Zone.
• With a highly flexible and dynamic management, Hamriyah Free Zone is all set to develop into a leading
industrial base of the UAE.
Investors can set up a different typesof legal entities in order to do business in the HFZ, Branch of foreign /
local company, free Zone Establishment (FZE) is a single share holder limited liability company which can be
incorporated in Hamriyah Free Zone. The minimum capital requirement for incorporating a Free zone
Establishment (FZE) is Dhs.150, 000 (Applicable for Land / Warehouses) (Approximately US$ 40,000).
However Free Zone Company (FZC) will be a similar incorporation with multiple shareholding (maximum 5
shareholders).
34
UAE Free Zones
17. Ras Al Khaimah Free Trade Zone
Established in 2000, RAKFTZ is one of the fastest growing, most cost-effective free zones of the region.
With tax-free environment, customised solutions, hassle-free procedures, value-added services and all the
facilities that you expect from a free zone,
The advantages:
• 100% tax exemption
• Transparent laws and regulations , 100% capital & profit expatriation.
• Strategic location with access to over 2.2 billion consumers.
• Simple and fast application procedures.
Types of Business License:
• Commercial License
• General Trading License
• Consultancy/Services License
• Industrial License.
A business at RAK FTZ can be registered as one of the following four legal entities:
New Establishments (100,000 DHS minimum share capital)
Free Zone Establishment - a new business entity with a sole business owner.
Free Zone Company - a new business entity owned by 2 - 5 partners.
Branches:
Local Branch - A branch of a domestic firm residing in the United Arab Emirates. The parent company should
have existed for more than a year (also applicable to a subsidiary company).
Foreign Branch - A branch of a foreign firm residing outside the United Arab Emirates. The parent company
should have existed for more than a year (also applicable to a subsidiary company).
18. Saadiyat Free Trade Zone
The zone covers an area of about 3,500 hectares, and will provide storage facilities for 67 commodities, such
as oil, gas, precious metals, food, etc. This feature makes the zone unique and first of its kind in the Gulf. The
zone has invited a number of international banks to apply for licenses to operate wholly within the free trade
zone as an offshore entity independent of the UAE Central Bank. The trade zone aims to serve 3.5 billion
people all around the world.
Special benefits include:
• The zone enables investors to store 67 commodities, such as oil, diamonds, copper, gold, etc.
• The Saadiyat Island is connected with the mainland by a six kilometer bridge, which makes it convenient
to travel from Abu Dhabi.
35
UAE Free Zones
19. Abu Dhabi Airport FZ
Abu Dhabi Airport free zone was incorporated in March 2006 to spearhead the major redevelopment of the
Emirates aviation infrastructure. This was launched as a ambitious development from the Abu Dhabi
Government aimed at promoting long-term economic and tourism activity and to support in building a more
vibrant economy which promotes and attracts private sector investment.
The free zone provides it customers with great benefits such as:
•
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•
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•
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Congestion free facilities
Location within Abu Dhabi International Airport premises
Fast and efficient cargo clearance services
Easy access to airport apron
Access to international freight forwarders and logistics services
One stop shop solutions for all investor related services
Smart business facilities with advanced IT solutions
Onsite customs inspections
Online customer service
24 hour access to facility
20. TwoFour54
Named after the geographical co-ordinates of Abu Dhabi, twofour54's vision is to enable the development of
world class Arabic media and entertainment content, by Arabs for Arabs, and to position Abu Dhabi as a
regional centre of excellence in content creation across all media platforms including film, broadcast, music,
digital media, events, gaming and publishing.
twofour54's aim is to create a collaborative and supportive campus community; stimulating creative and
professional partnerships. There three pillars are supported by a business enabler tawasol, which provides
support to organisations and individuals looking to join the twofour54 community.
It offers media and entertainment organisations a complete range of services including:
•
•
•
•
•
•
Registration and licensing for media businesses at twofour54.
Company and personal set-up services for your business and staff.
World-class studio production and post-production facilities supported by technical staff.
Broadcast services
Vocational media training
Industry investment and business support for Arab entrepreneurs
36
UAE Free Zones
21. Masdar City – Abu Dhabi
Masdar is a multi-faceted company advancing the development, commercialisation and deployment of
renewable energy solutions and clean technologies. Masdar City, a six-square-kilometre special economic zone,
is a place where businesses can thrive and innovation can flourish. A low-carbon, renewable energy-powered
development, Masdar City not only embodies Abu Dhabi’s commitment to a sustainable future but is also
pioneering best practices in sustainable urban planning, design and development.
As a special economic zone, Masdar City offers, amongst other benefits, a rapid set-up process, reduced tax
footprint and pro-business environment. Economic benefits include:
•
•
•
•
•
•
•
Quick and easy set up
No corporate or personal taxes
Unrestricted repatriation of both capital and profits
No recruitment restrictions
No currency restrictions
Visa processing and Government services
For most companies, whatever their size or stage of development, there are three main ways to benefit from
engaging with Masdar City:
1) as a pilot-study partner exploring technology solutions for the city,
2) as a supplier that provides the products and solutions used to develop and operate the city, or
3) as a partner that operates from the city, thereby benefiting from its one-of-a-kind cleantech cluster
environment and from providing the city with products and solutions.
Business Licensing Services:
Masdar City facilitates quick and straightforward incorporation services to businesses, allowing them the legal
structure required to establish their businesses. Companies operating in Masdar City do so in accordance with
the Masdar City Companies Registration Regulations. It is Masdar City’s goal to see that each one of its
business partners and tenants enjoys a successful transition into the community. Partners can be licensed in
three ways:
Limited Liability Company (Limited)
Companies incorporated in Masdar City benefit from the unique business environment offered, which
includes: 100% foreign ownership, exemption from personal income and corporate taxes. The minimum
required paid up capital for incorporation of a LLC in Masdar City is AED 150,000.
Branch of Foreign / Offshore Company
Companies can register a branch office of a Foreign/Offshore company in Masdar City.
Branch of Local UAE Company
Companies can register a branch office of a UAE company in Masdar City.
37
UAE Free Zones
22. Khalifa Industrial Zone (Kizad) - Abu Dhabi
World class infrastructure, transportation and logistics options, as well as its low operating cost environment
not only promote business efficiency they also make it easier to achieve business goals.
Kizad offers local and international investors easy access to local, regional and international markets, within a
low operating cost environment and a meticulously designed setting to make doing business easy. Kizad is set
to transform the way Industrial zones help businesses become and stay successful.
Kizad is an integral part of the Abu Dhabi Economic Vision 2030. With industry at the heart of its
diversification program, this Vision sets a clear roadmap to achieve sustainable growth of the Emirate’s
economy and the prosperity of its people. Kizad, with its massive 417sqkm of prime industrial land and worldclass facilities, is a statement of intent by the Government of Abu Dhabi, creating a wealth of opportunities
on a global scale.
It’s strategic location linking the east and the west, and its world-class transport infrastructure via sea, air,
roads and rail, gives businesses easy and efficient access to over 4.5 Billion consumers within four time zones.
With vertically integrated clusters setting new standards of industrial efficiency, competitive lease prices and
some of the lowest utilities costs in the world in a tax-free setting, Kizad provides businesses with
unparalleled, long term competitive commercial advantages.
38
References
Dubai international airport - http://en.wikipedia.org/wiki/Dubai_International_Airport
World Bank, updated Jan 17th 2013 http://www.google.co.uk/publicdata/explore?ds=d5bncppjof8f9_&met_y=sp_pop_totl&idim=country:ARE
&dl=en&hl=en&q=uae%20population
Demographics of the UAE http://en.wikipedia.org/wiki/Demographics_of_the_United_Arab_Emirates#Population_growth_rate
United Arab Emirates Public Holidays 2013 http://www.ameinfo.com/united_arab_emirates_public_holidays/
UAE Free Zones – http://www.uaefreezones.me
39
Disclaimer: Whilst every effort has been made to avoid errors or omissions, any mistake or omission is not intended. The information given is liable to
change without notice dependent upon new laws and regulations. It should be noted that we will not be responsible for any damage or loss, or any other
consequences of any decisions/investment or business set up done based on the contents of this guide.
“Grant Thornton” refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or
refers to one or more member firms, as the context requires. Grant Thornton UAE is a member firm of Grant Thornton International Ltd (GTIL). GTIL and
the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member firms.
GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate, one another and are not liable for one
another’s acts or omissions.
40

Doing business in the United Arab Emirates

Transcription

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