doing business part1

Group EntitiesMorison (UAE) ConsultingMMIT and e-Security SolutionsMorison Muscat Chartered Accountants L.L.CMenon Consulting Iran Ltd, Tehran

www.morisonmenon.comwww.morisonuaeconsulting.comwww.doingbusinessinuae.com

Morison Menon Chartered Accountants

Dubai: 204, Tower-A, Gulf Towers, Oud MethaP.O.Box 55535, Tel. +971 4 33 66 99 0, Fax. +971 4 33 66 99 2e-mail: [email protected]

Abu Dhabi: 204,Sohail Bin Hilal Rasheed Al Mazrooi Bldg, Salam StreetP.O.Box 31616, Tel. +971 2 677 27 27, Fax. +971 2 677 37 37e-mail: [email protected]

Jebel Ali: Office No. 140, LB-16P.O.Box 61136, Tel. +971 4 887 17 2 7, Fax. +971 4 881 32 2 9e-mail: [email protected]

Sharjah: M-2, Al Arbash Tower, Old Airport RoadP.O.Box 5199, Tel. +971 6 573 04 40, Fax. +971 6 572 28 4 8e-mail: [email protected]

Part-1 Commercial, Industrial and Services

4th Edition 2006

Group EntitiesMorison (UAE) ConsultingMMIT and e-Security SolutionsMorison Muscat Chartered Accountants L.L.CMenon Consulting Iran Ltd, Tehran

Doing Business in UAE&

UAE Free Trade Zones

Doing Business in UAE&

UAE Free Trade Zones

HH Sheikh Humaid bin Rashid Al Nuaimi

Ruler of Ajman

HH Sheikh Saqr bin Mohammed Al QasimiRuler of Ras Al Khaimah

HH Sheikh Hamad bin Mohammed Al Sharqi

Ruler of Fujairah

HH Dr. Sheikh Sultan bin Mohammed Al Qasimi

Ruler of Sharjah

HH Sheikh Rashid bin Ahmed Al Mu’alla

Ruler of Umm Al Quiwain

HH Sheikh Khalifa bin Zayed Al NahyanPresident of UAE & Ruler of Abu Dhabi

HH Sheikh Mohammed bin Rashid Al Maktoum Vice President & Prime Minister of UAE,

Ruler of Dubai

Co

nt

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tsContents:

Page - 9 Page - 11Page - 12Page - 13Page - 15 Page - 20Page - 28Page - 34Page - 38Page - 41

Page - 42Page - 48Page - 54Page - 57Page - 61 Page - 62Page - 64

ForewordPreface

Facts About United Arab EmiratesThe Country

Setting Up A Business entity in the UAEDoing Business in ABU DHABI

Doing Business in DUBAI

Doing Businessin SHARJAHReal Estate in the UAE

Corporate Initiatives of Dubai Government

General InformationCustoms Procedure

Port Charges & Shipping LinesImmigration Requirements

SchoolsInstitutions for Higher Education

Fee particulars of DED DubaiFree Trade Zones in the UAESnapshots of Free Trade Zones

JAFZA JAFZA Offshore

Dubai Maritime CityDubai Gold and Diamond Park

Dubai Aid CityDubai Airport Free Zone

Dubai Silicon OasisDubai Flower CentreDubai Logistics CityDubai Internet City

Dubai Knowledge VillageDubai Media City

Dubai Outsource ZoneDubai Biotechnology and Research Park

Dubai Studio CityInternational Media Production Zone

Dubai Healthcare CityTechno Park

Dubai Textile CityDubai Cars and Automotive Zone

Heavy Equipment and Trucks ZoneDubai Building Materials Zone

Dubai Auto Parts CityHamriyah Free Zone

Sharjah Airport International Free Zone (SAIF-Zone)Ajman Free Zone

Ahmed Bin Rashid Free Zone (Umm Al Quiwain)Ras Al Khaimah Free Zone (RAK Free Zone)

Fujairah Free Zone

Upcoming Free Zones

Page - 66Page - 67Page - 68Page - 70Page - 71 Page - 72Page - 73Page - 74Page - 75Page - 76Page - 77Page - 78Page - 80 Page - 81 Page - 84 Page - 85Page - 86Page - 87Page - 88Page - 89Page - 90Page - 91Page - 92Page - 93 Page - 94 Page - 96 Page - 97Page - 98Page - 99

Page - 102

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Sheikha Lubna Al QasimiMinister of Economy

UAE

Writing a foreword is a good time to reflect, contemplate and look back. As a UAE national, scrutinizing the emergence of my country as a flourishing economy in the Middle East is always a source of immense pride. It reinforces my respect and faith in the vision of my country’s founding leaders, who looked far into the future when making strategic choices that would affect the daily lives of generations to come.

I ardently believe that it is their long-term growth strategies that have given the UAE economy its inherent dynamism. Today, it can be safely asserted that the UAE economy rests on strong funda-mentals that are not merely oil-driven. Sectors like tourism, educa-tion, media, health and industry have evolved as ideal platforms for enhanced institutional investment. There is extensive diversifica-

tion, into value added industries, which facilitates an impressive economic growth rate. All-round development is perceptible all over the UAE - in all the emirates – led by Abu Dhabi, Dubai and Sharjah. Through broad-based strategies that look far ahead into the future, each emirate has been strengthening its resource base, offering more opportunities for investors and making rapid strides in developmental initiatives. The benefit of such in-depth planning gives greater impetus to the country’s planners to roll out more cutting edge ideas. The healthy business climate of the UAE has, over the years, attracted overseas investors, who have even sometimes shifted entire operations to the country. Setting up businesses - not restricted to trading - have contributed to diversifying the economy even further. The Free Zones of the UAE too have played a major role in boosting the UAE’s identity as a hotbed for entrepreneurs. Apart from offering near-total economic freedom to the investors, which some do not enjoy even in their countries, the Free Zones offer a tax-free package and world-class infra-structural facilities. It is encouraging to note that the Free Zones have now come to encompass niche sectors too, such as the Dubai Silicon Oasis, Dubai Outsource Zone, Dubiotech, and Dubai Metal and Commodity Centre.

In this context, the handbook by Morison Menon Chartered Accountants, ‘Doing Business in UAE and UAE Free Trade Zones,’ is relevant, timely and is expected to be extremely helpful for compa-nies and individuals looking to invest in the UAE. The current edition appears to have been further revised and enhanced to accommodate the entrepreneurial climate offered by the various emirates. The all-encompassing nature of the book should make it a helpful resource for anyone wishing to understand the business climate of the UAE. Business houses gain confidence from the power of knowledge and information. Facts and figures have to be laid out in black and white with no scope for ambiguity. This handbook serves that purpose.

I wish the venture, and our foreign and local investors, all future success.

Foreword

9Morison Menon

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Partners

Girija Menon, PartnerDubai Office

Pushpakaran K Parambath, PartnerJebel Ali Office

Khalid Al ShamsDirector, Jebel Ali OfficePartner, MMIT

Prabhakar KamathPartnerMorison (UAE) Consulting

Saju Augustine, PartnerSharjah Office

Zeid Qadan, PartnerAbu Dhabi Office

K.R.V. Panicker, PartnerMMIT & e-Security Solutions

B. KannanBusiness Head, HR Consulting & BPO

Dr.Christian Vogt PartnerInternational Affairs

The fourth edition of ‘Doing Business in the UAE and UAE’s Free Zones’ could not have come at a more opportune time. The only constant, that is change, is making its presence felt across the Gulf region. Economies are on high gear – not driven by oil alone.

The market dynamics is reflected in the way the world perceives the region too. There is a renewed inter-est in emerging economies like the UAE, which is fast becoming an investment hub for foreign investors. The well-rounded growth in all sectors of the economy – be it banking, trade and finance,real estate, commodities, services or media – has translated into a greater need for authentic informa-tion.

This is only natural in the face of emerging developments including the sustained enthusiasm in the stock market and the coming of age of the commodities and financial markets in the UAE. Business is no longer governed by the simple logic of demand and supply. Entrepreneurship has entered a phase wherein the right information channel propels the direction of growth of any business venture.

It is in this context that the fourth series of this hand-book comes with a well-delineated two-part struc-ture. The first profiles three vital segments of the economy – industry, services and trade. The second deals with the intricacies of doing business in finance, commodities and banking.

Both the sections have been evolved through careful research and extensive background check to ensure that the right information has been culled and collated for the benefit of any investor who is totally new to the region.

Old-timers might recall how this handbook has evolved from a simple one-stop information capsule outlining the elementary business modules of the UAE and its free zones. This edition, in marked contrast, is a reflection of the changing times as well as the shifting dynamics of the regional economy.

We would like to put on record our appreciation for the wholehearted support all of you have extended to our editions. Indeed, your feedback has been our prime mover; your response has helped us nurture, shape and build on this venture.

When we embarked on this, we never imagined the scope of work that would await us in the coming years. Every year has seen radical changes in the way you could do business in the UAE. But then again, some things haven’t changed. Those - the investor-friendly environment, the infrastructural support, the swiftness and efficiency of governmental and Free Zone departments, the hospitality of the people – form the bedrock of doing business in the UAE. That, indeed, is a solid one, built over many centuries of trusted trading links fostered far and wide.

Best Regards,Board of Partners

Safiya Haji Akbar Mohammad Partner

Raju MenonManaging Partner

Preface

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Location Middle East; Eastern Coast of the Arabian Peninsula, in the South Western

part of the Arabian Gulf

Geographic Coordinates Between the latitudes of 22o and 26.30o North and longitude of 51o and

56.30o East.

Total Area 83,600 sq. kms

Boundaries Oman 410 Kms; Saudi Arabia 457 Kms

Climate Desert; cooler in eastern mountains

Coastline 1318 Kms + 1500 Kms adding by Nakheel Water Front projects

Population 4.32 million (comprises local population and expatriates from South Asia,

Far East, Middle East, Europe and USA)

Federation with specific powers delegated to the UAE Federal Government

and other powers reserved to the member emirates

Administrative Divisions 7 Emirates viz., Abu Dhabi, Dubai, Sharjah, Ajman, Umm Al Quiwain, Ras

Al Khaimah, Fujairah

Capital Abu Dhabi

Independence 2nd December 1971 (from UK)

Legal System Federal court system introduced in 1971; all emirates except Dubai and Ras

Al Khaimah have joined the federal system; all emirates have secular and

Islamic law for civil, criminal and high courts.

Languages Arabic (official), Persian, English, Hindi and Urdu

Currency Arab Emirate Dirhams (AED)

Political Parties None

GDP

Exchange Rate US $ 1.00 = AED 3.667

Major Trading Partners Japan, China, USA, UK, India, Pakistan, Iran, S. Korea, Germany, Italy

Major Export Products Crude Oil, Natural Gas, Re-Exports, Aluminium, Dried Fish, DatesMajor Import Products Manufactured goods, Machinery, Foodstuff, Transportation equipment.

Taxation No corporate, personal and withholding taxation

Customs Duty

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Facts About United Arab Emirates

Inflation Rate (consumer price)

AED 424 billion (US$ 115.63)(2005)

3.2% (2004)

5% import duty (No import duty on industrial raw materials)

Position to attract FDI 22nd ( UNCATD)::Countries to which FTAs negotiation in

progress

USA, Australia, Singapore

FTA through GCC : EU, China, India & Pakistan

Government Type

AED 379 billion (2004)

The

Coun

try

The Country above. The Federation was established on 2nd December 1971 of six Emirates, then the Emir-ate of Ras Al Khaimah joined the Federation on the 10th of February 1972. According to the constitution, The Supreme Council of the Federa-tion is the highest political authority in the coun-try. It consists of all the Rulers of seven Emirates. The President and the Vice President of the State are elected by the Supreme Council and from its members, The President appoints the Prime Minister with the consent of the members of the Supreme Council. The members of the Federal Government are appointed by a decree from the President upon recommendation from the Prime Minister. The Federal National Council (FNC), which consists of representatives of each Emir-ate, is the Legislative Council (Parliament). It exercises the authority to discuss the sanction

of all Federal Laws and then refer them to the Supreme Council for enactment.

Nature of Business ActivitiesThe UAE economy has witnessed rapid economic developments. Even before 1957, the economy of the Emirates constituting the Federation, under their self-ruling system, was dependent on the available natural and human resources. Economic resources varied in each Emirate in accordance to the area, population and the abundance of the resources of each of them. They were almost wholly dependent on cer-tain activities such as pearl fishing and trading, fishing, trade, agriculture and some handicraft industries. Each Emirate differed from the other by its relative dependence on a special economic resources. In 1957, another stage of economic development started. It was the beginning of the era of oil producing and exporting in Abu Dhabi,

Doing Business in UAE and UAE Free Trade Zones 4th Edi t ion 2006

Geographic LocationThe United Arab Emirates extends along the coast of the Gulf, from the base of Qatar penin-sula to a short way beyond Ras Al Khaimah and across the Mussandum peninsula to the Gulf of Oman. The Federation comprises the seven emirates of Abu Dhabi (the capital), Dubai (the thriving commercial capital), Sharjah, Umm Al Quiwain, Ajman, Ras Al Khaimah and Fujairah. In all, the UAE covers an area of about 83.6 thou-sand square kms.

ClimateUAE lies within a subtropical zone with very hot summers, high humidity, mild and pleasant win-ters. Rainfall is erratic generally, lasting for a few days and rarely exceeding 5 to 10 inches a year.

PopulationIn 2005, the population of the UAE was esti-mated to have reached 4.32 million Immigrant employees who form a large portion of the pop-ulation predominantly from the Indian Subcon-tinent, Iran, Europe and other Arab countries. Expatriates are attracted to UAE by the oppor-tunities offered by the rapid development of the country.

CultureArab Islamic culture dominates the lifestyle of UAE. However, it is tolerant of the different creeds and beliefs of its large expatriate commu-nity. Arab heritage and folklore finds expression in poetry, dances and songs. The traditional all-pervasive hospitality gives a great deal of charm to life in UAE. Cultural activities of other nations are very much popular in this country.

LanguageThe official language is Arabic, but English is the common language, Urdu and Persian are also widely spoken. Arabic and English are usually used in business and commerce.

Political SystemThe United Arab Emirates is a Federal Sovereign State which consists of 7 Emirates mentioned

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Dubai in 1969, and then in Sharjah. This stage had witnessed the increasing importance of the oil sector since the huge amount of revenues it provided in comparison with other sources of the national income. This rendered the traditional economic activities to become less important, particularly the sector of pearl fishing and trad-ing. Since then oil and its related industries have become the backbone of the UAE Economy.

The Economic PolicyThe economic policy of UAE is based on safe-guarding and respecting the individual freedom in ownership of the means of production, prac-ticing any type of business activities and pro-viding all facilities. There are no restrictions on

imports and exports except some minor customs and administrative duties. The government plays a supervisory role in issuing legislation, which organize the functioning of the various economic sectors while causing no hindrance to the busi-ness activities.

Trading Regulations of UAE International manufacturers and exporters may conduct business with UAE by concluding trans-actions directly with importers and traders who are already established in the market. This type of arrangement may be suitable for low-volume trade. However, for an ongoing business rela-tionship, overseas companies may well want to consider a more permanent form of repre-sentation.

Commercial AgenciesA foreign company wishing to supply goods and

services from abroad, but without establishing a physical presence in UAE, may find it advanta-geous to appoint a commercial agent. The main provision of the Federal Commercial Agency Law No 18 of 1981, as amended by Law No 14 of 1988, is that an agent must be a UAE national, or a company 100 per cent owned by UAE nationals. A commercial agent may not carry out activities in the UAE unless its name is entered in the Com-mercial Agency Registry maintained at the Minis-try of Economy.

DistributorIt is possible for an overseas trader to appoint a local Distributor to distribute the products in UAE market. Unlike a Commercial Agent, the

Distributor can be any local, registered company including companies with foreign ownership.

Other RegulationsImport duties are largely standardized at five per cent (except for tobacco products (100%) and intoxicating liquors 50%) but there are many exemptions, including food, medical products and any item destined for the Free Trade Zones. Trade practices in UAE are in line with normal international standards. As a sophisticated market, full technical specifications should be provided with CIF UAE prices and Middle East references. UAE is a member of WTO. Only importers who have appropriate trade licence can undertake imports into UAE.

Before 1984, each emirate viz., Dubai, Abu Dhabi, Sharjah, Ajman, Ras Al Khaimah, Umm

Pro Business Attitude Best Regulatory Environment

Multi-lingual workforce The Best Connected Location in the Region Consistently Strong Economic Outlook Easy Access to Regional Markets Strong Foreign Trade Thriving Tourist Destination Cosmopolitan Work Environment Exemption from corporate, withholding and inher-itance taxation

No taxes and duty levied on profits or production

No restrictions on profit transfer or capital repa-triation

5% customs duties [certain items are fully exempted]

Attractive working environment

No personal income tax

No currency restriction


Al Quiwain and Fujairah, followed its own proce-dures governing the operations of foreign busi-ness interests. In 1984, Federal Law No. 8 of 1984, its amendment by Federal Law No. 13 of 1988 - the ‘Commercial Companies Law” and its by-laws have been issued. The law makes it con-ditional that the companies be wholly owned by nationals or that nationals own at least 51% of its share capital, while the remaining 49% may belong to foreigners. (The proposal to increase the percentage of shareholding capital by for-eigners in a LLC is under discussion). The law provides that commercial companies established in the UAE must take any of the following legal forms:

1. General Partnership CompanyIt is a firm which consists of two or more part-ners who are jointly and severally responsible for all the firm’s liabilities. Partnership companies are confined to UAE nationals only because part-ners are responsible towards the liabilities of the

firm by all their assets, which may not be applied to foreigners as in most of the cases their assets are usually abroad.

2. Partnership in-commendam (Limited Part-nership)It is a firm consisting of one joint partner or more who is liable with all his money for the firm and another in-commendam partner or more who shall not be responsible for the liabilities of the firm except to the value of his share in the capi-tal. According to law, all joint partners in such type of firms should be nationals of the UAE.

3. Public Shareholding Company (PJSC)Public Shareholding Company is a company with a capital divided into equal negotiable shares. In such companies a shareholder’s liability is limited by the number of shares held by him. Minimum capital required to form a Public Shareholding Company is AED 10 million (US $ 2,727,025) with a nominal face value of AED 1 – 100, for a banking entity it is AED 40 million and for insurance and investment companies it is AED 25 million. Among the other requirements for the establishment of a public joint stock company is the preparation of a founders’ agreement, a prospectus or invitation for public subscription supported by an overall business plan or feasibil-ity study, an auditor’s certificate, a due diligence survey and a memorandum & articles of asso-ciation. A PJSC must have at least 10 founder members and its management should be vested in a board of directors consisting of a minimum of three to a maximum of fifteen persons whose term of office may not exceed three years. The Chairman and majority of the Directors in a public shareholding company must be UAE nationals. In addition , at least 51% of the shares of the PJSC should be held by UAE nationals. The founder members may only hold 45% of the share capital, as 55% is required to be offered to the public. The Law stipulates that the compa-nies engaged in banking, insurance or financial activities should be run as public share holding companies.

Setting up a business entity in the UAE

ADVANTAGES OF UAE FOR BUSINESS

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General Assembly:The founding members shall invite the sub-scribers to a general assembly meeting within 30 days of the close of subscription.Quorum:¾ of the owners of the sharesIf no quorum: Second Meeting – After 30 days; quorum is half of the owners of sharesThird Meeting – After 15 days; no quorum requiredAfter the general assembly within 7 days, appli-cation for declaration of company to be in existence to be provided to the Ministry.Minister will issue a decree within 30 days regarding the establishment of the company. 4. Private Shareholding CompanyA Private Shareholding Company is incorpo-rated by a number of persons not less than three. Unlike public shareholding company, a private shareholding company cannot invite the public for subscribing in its shares. The mini-mum share capital to form a private sharehold-ing company is AED 2 million (US $ 545,405). The Chairman and majority of the Directors in a private shareholding company must be UAE nationals.

5. Limited Liability Company(LLC)A Limited Liability Company is the most common form of business entity currently formed in UAE. A limited liability company can be formed by a minimum of two and a maximum of 50 persons whose liability is limited to their shares in the company’s capital. The minimum equity participation by UAE national is 51%. Capital required to form a limited liability company in Dubai is AED 300,000 (US$ 81,811) contrib-uted in cash or in kind. However, in other Emir-ates viz., Abu Dhabi, Sharjah, Fujairah,Ras Al Khaimah,Umm Al Quiwain, and Ajman. the cap-ital requirement is AED 150,000 (US$ 40,906). Profit or loss distribution can be prescribed and responsibility of management of an LLC can be vested in the foreign or national part-ners or third party. The shares of such com-

Founders

Subscription of Money

Period of Subscription ::

Subscription:

:

: 20% or above but less than

45%. Certificate from the

bank to be provided

10 – 90 days

Minimum Subscription 100%

25% of the commercial value. Balance 75% within a period of maximum 5 years. (How-ever, subject to company’s contract.)

Name To be derived from the purpose

Capital AED 10,000,000

Number of founding mem-

bers

Minimum 10

Committee to continue

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Duration of the Company To be decided by the founder members:Memorandum of Associa-

tion

Procedures to set up a Public Shareholding Company

Application Procedure:

Entities, looking for raising finance through Initial Public Offering, (IPO) must have completed 2 years profitable operation in UAE

To be prepared in consultation with

the standard Memorandum of Asso-

ciation available with the Ministry

of Economy

3 – 5 members among founding mem-

bers

A1. Application

4. Permission from the Emirate where the company is intended to be established.

1. The Ministry shall set up a committee to study the project

4. If the application is rejected, the applicants can contest before Civil Court within 60 days.

2. Memorandum of Association

5. Suggested completion period of the execution of the project to start its operations to be provided

B

2. The committee shall prepare a report within 2 weeks of the application

3. The Ministry shall issue a decision within 60 days from the date of application. If the decision has not been issued within the period the application is deemed rejected.

3. Feasibility Study of the Project Application to be submit-ted to the Ministry of Economy

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pany are not open for subscription by the public and they do not issue negotiable shares. PROCESS OF ESTABLISHING A ‘LLC’

Obtain initial approval for name and activity from the Department of Economic Development or the Economic Development Department/Municipality/the Chamber of Commerce.

Obtain approval from concerned Ministry/Department in case the activity is of special nature.

Draw up company’s Memorandum of Associa-tion and have it notarized from courts of respec-tive Emirates.

Capital contribution certificate to be obtained from banks for cash shares and auditor’s certifi-cate for both cash shares and kind shares.

Submit applications and initial approval along with notarised copy of Memorandum of Asso-ciation, capital certificate, tenancy contract etc., to the Department of Eco-nomic Development or the Municipality.

After scrutiny by the legal department, the Company name will be entered in the Commer-cial Register and have its Memorandum of Association published in the Ministry of economy bulletin.

The Department of Economic Development or the Municipality will then issue the licence.•Department of Economic Development: Licencing

Authority in the Emirate of Dubai.

•Economic Development Department: Licencing

Authority in the Emirate of Sharjah.

•Municipality/Chamber of Commerce: Licencing

Authority in other Emirates.

Activities requiring special approval Licence to practice majority of the activities are directly issued by the licencing authority in the respective emirate. However, certain activ-ities require special approval from the related Ministry/Department. (for e.g., medical, phar-macy etc – ministry of health; air transport, air cargo etc – dept. of civil aviation, financial insti-

tutions, banks, money exchange etc – central bank; new industrial project, expansion – minis-try of finance and industry; publishing, printing, newspaper, advertising, video film, photography etc – ministry of information; education, train-ing etc - ministry of education; agriculture, vet-erinary etc – ministry of agriculture; customs clearance, freight forwarding, sea cargo etc – seaports & customs authority, telecommunication equipment – ministry of communication; branch of foreign company, insurance company, chartered accountants firm etc – ministry of Economy), legal consultancy - rulers’ office - engineering & con-tracting - municipality.

6. Joint Venture (Consortium Company)A Joint Venture is a type of company where two

or more partners agree by contract to share the profits or losses of one or more commercial enterprises, which will be carried on in the name of one of the partners. Con-tract of Joint Ventures may be written or oral and not required to be notarized. Third parties can recourse only to the

partners with whom they deal. However, should the Joint Venture be disclosed to the third par-ties, all the partners are liable to the third par-ties. Existence of Joint Venture may be proved by any method of proof.

7. Professional Companies (Professional Partnership)A firm shall be regarded as a professional com-pany which practices a profession as its main object and that partners rely on their livelihood on the intellectual effort they exercise more than on profiting from the business of others. On this basis the professional companies are set up between professionals or partisans and carry out non-commercial activities. The firms, which are, registered as professional firms may only practice specific activities and not extend that to commer-cial activities. Such activities include rendering

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the services of legal practice and consultancy, auditing, organizing and keeping accounting records and books, civil engineering, architecture consultancies and services, managerial and eco-nomic consultancy and studies, technical serv-ices, medical and curative services, educational services and other similar services.

8. Proprietorship Firm to practice profes-sional activities (100% foreign investor/s owner-

ship)

Foreign investors are permitted to practice certain types of professional activities without having a national partner. Such activities are legal consul-tancy, IT consultancy, management consultancy, marketing consultancy and similar services. How-ever, it is a condition that the firm must have a

local service agent and accordingly the service agency contract is required to be authenticated by a notary public ( except for legal consultancy services).

9. Appointing a Commercial Agent (Exclu-sive Distributor)Foreign investors may appoint a commercial agent to represent their interests in the UAE instead of establishing a permanent presence. The UAE Commercial Agencies Law (Federal Law No. 18 of 1981, as amended by Federal Law No. 14 of 1988) regulates and governs the appoint-ment of commercial agents, sales representa-tives, and distributors in the UAE. This law defines a commercial agency as any arrange-ment whereby a foreign company is represented by an agent to “distribute, sell, offer, or provide goods or services within the UAE for a commis-sion or profit”.

The primary requirements and characteristics of commercial agencies are: 1. Commercial agents must be UAE nation-als or companies incorporated in the UAE and owned entirely by UAE nationals. 2. Commercial agents must be registered with the UAE Ministry of Economy to engage in commercial agency activities. 3. The agency agreement must be regis-tered in order for the agent to avail himself of the protections afforded under the law and to have the agency relationship recognized under UAE law. 4. Commercial agents are entitled to an exclusive territory encompassing at least one Emirate for the specified products (Article 5(1) of the Commercial Agencies Law).5. Unless otherwise agreed, commercial agents are entitled to receive commissions on sale of the products in their designated territory irrespective of whether such sales are made by or through the agent (Article 7 of the Commer-cial Agencies Law). 6. Commercial agents are entitled to pre-vent products subject to their agency from being imported into the UAE if the agent is not the con-signee. 7. Commercial agents are entitled to receive compensation from the principal if the agency is terminated without substantial justifi-cation or if the agency is not renewed by the foreign principal, and the agent may be able to preclude the foreign party from appointing a replacement agent in such circumstance.

10. Opening a branch or representative office of foreign companyThe Companies Law, in article (313) allows a foreign company to exercise its main activity in the UAE by opening a branch or a representa-tive office. The difference between the two is that the foreign company which opens a branch in the UAE may exercise freely the activities for which it is licenced whereas a representa-tive office may practice only promotional busi-ness for the products and services provided by the parent company. Unlike a foreign branch, a representative office cannot conduct business operation or market directly its product. In order to engage a foreign branch to conduct its opera-tion in UAE, it should obtain a licence from the

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Ministry of Economy prior to obtain the licence from the concerned authority in the respective Emirate. Foreign companies licenced to operate in UAE may not start their activities before being inscribed in the Ministry’s Register of Foreign Companies. The main stipulation for opening a representative office or a branch of a foreign company in the UAE is to appoint a Service Agent who should be a UAE national. A service agent is not an empowered agent who can bind his prin-cipal as explained in the definition of the term “agent” in the Commercial Companies Law. A service agent is not responsible to undertake any financial obligations concerning the activities of the company’s branch or office within the UAE or abroad. He should not interfere in the mat-ters related to the company’s management or activities. His duties towards the company and others are confined to providing such services as required by the principal. These services usu-ally include obtaining of entry/residence permits, acquir-ing of the necessary licences or facilitating the processing of its transactions with the government authorities. The service agent is remunerated in lump sum for the services rendered to the foreign company, which shall be subject to an agreement between him and the company.

Foreign company’s branch or representative

offices are required to submit a bank guarantee

of AED 50,000 favoring the Ministry being part

of the licence processing procedure. The licence

of the foreign company’s branch/representative

office shall be cancelled if it is not renewed

within two years after the expiry date and the fee

due to the Ministry shall be deducted from the

guarantee.

11. Establishments by GCC CitizensThe states of the Gulf Cooperation Council (the

UAE, Saudi Arabia, Sultanate of Oman, Qatar,

Kuwait and Bahrain) signed the United Economic

Agreement in Riyadh on 7th June 1981, with a

view to coordinate and unify economic, financial,

monetary, commercial and industrial legislations

and UAE endorsed this agreement in 1982. It is

conditional as per the Federal Law No. 2 of 1989

concerning permitting the GCC citizen to con-

duct a business operation in UAE that the inves-

tor should be a natural person residing in UAE

and practice the required activity by himself and

have a licence to practice the activity in his coun-

try of origin.

Setting up of Branch of GCC Companies in Dubai The Department of Economic Development(DED),

Dubai has recently released a circular clarifying

the procedures of setting up Branches of GCC

companies wholly owned by GCC nationals.

The circular stipulates that Branches of GCC

Companies shall be required to register only in

DED and the concerned parties shall not refer to

the Ministry of Economy, provided other Govern-

ment Departments’ approvals may be required

for the activities in question.

The GCC companies shall not be required to

appoint Service Agents.

If there are shareholders who are not from the

GCC in the mother company, such company shall

be considered as a foreign company and is

required to register at the Ministry of Economy

in accordance with usual procedure.


19Morison Menon

20

ness in Abu Dhabi. Current expansion and devel-opment of the oil and gas industry, which ADNOC administers, translates into projects, mostly for

heavy industry, worth many millions of dollars. General Procedure for Acquiring LicencesThe Abu Dhabi Chamber of Commerce & Industry and Department of Planning & Economy approve the required trade name and the Abu Dhabi Municipality Licensing Committee and Depart-ment of Planning & Economy review applications for licenses. The relevant competent authority is then involved for the approval of documents and the Chamber issues the membership certificate on approval from the authority. The Municipality and Department of Planning & Economy license is finally acquired after all requirements to rules and regulations as applied by the Municipality

and Department of Planning & Economy have been met. The Ministry of Economy is also involved if the applicant is a commercial com-pany. Further, the Abu Dhabi Government issued the local law No. 5 of 1998 concerning the pro-cedures of issuing the licences in the Emirate. Accordingly, licences issued by respective con-

cerned authority shall be categorized as:

(1)Agricultural (Fisheries & Livestock) Licence

(2)Industrial Licence

(3)Commercial Licence

(4)Professional Licence

(5)Vocational Licence

Industrial Sector of Abu DhabiSpecialized Economic Zones The goverment of Abu Dhabi recognizes the

Doing Business inAbu Dhabi Abu Dhabi is the political capital of UAE and counted as one of the beautiful cities in the world. It possesses 96% of the total oil reserve of the country. The Emirate offers multiple invest-ment opportunities involving almost all economic sectors; particularly those import substituting projects and those export-oriented projects. Abu Dhabi offers attractive investment incentives for investors from any part of the world. Its oil and gas sector provides a high competitive potential mainly for chemical and petrochemical industries and products.The first commercial quantities of oil were found in 1958. Exports began four years later. Ongo-

ing exploration, both on and off shore, has so far identified one tenth of the world’s crude reserves, enough, even at the present rate of production of over 2 million barrels a day, to last another one hundred and fifty years at least. Finding oil was the first step. Before it could reach the tanker ships there had to be massive construction of rigs, pipes, tanks and terminals, which brought a surge of industry and invest-ment to Abu Dhabi, and it is still happening. In 1971, the government of Abu Dhabi, in common with other major oil producers in the Middle East, negotiated new concessions with its foreign partners securing the controlling inter-est in its precious oil resources. Gas reserves belong wholly to the government, The Abu Dhabi National Oil Company (ADNOC) was established to administer the industry. ADNOC is usually the first port of call for those wanting to do busi-

tries

Zone 5: Building & Construction related materials

Zone 6: Advanced Technology Industries

Availability of Natural GasThe Mussafah Industrial Area is the only indus-trial area which supplies industrial gas. Normal Gas Unit Price is 4 Dirham/MBTU. Gas connec-tion installation cost depends on factors such as size, distance and input. Land rent starts from 10 fils/sq. ft.Starting a ProjectAn Industrial Project requires the approval from General Industrial Corporation, Abu Dhabi Cham-ber of Commerce and Industry and the Abu Dhabi Municipality and Town Planning Depart-ment.Industrial City of Abu Dhabi (ICAD)

ICAD is located 30 kilometres from the centre of Abu Dhabi City and 25 kilometres from Abu Dhabi International Airport. It has shown very rapid recent growth with 355 major manufac-turing companies employing more than 30,000 workers. The City provides all basic services and facilities for a wide range of industrial activities. Land Rental Rate (Approximate)

Standard: 50 fils per sq.ftSea side: AED 2 per sq.ftKhalifa Port and Industrial Zone Abu Dhabi government plans to construct a new seaport and an industrial city at Taweelah situat-ing on the Dubai-Abu Dhabi coastline. The new port and industrial zone are in line with the cur-rent strategy of the local government to step up its pace of development in industrial, economic and tourism sectors. It is expected the new ini-tiative shall help to increase the competitiveness

22

importance of the industrial sector and has always belived it to be the pioneering sector of economic development. The Industrial zones in different part of the Emirate come under the supervision of the Higher Corporation for Spe-cialized Economic Zones (HCSEZ). HCSEZ is charged with creating a suitable enviornment for industries being set up in Mussafah Industrial City, Al Ruwais Industrial Area and the Al Ain Industrial Area.Higher Corporation for specialized Eco-nomic ZonesThe mission of the Higher Corporation for spe-cialized Economic Zones is to provide Economic Parties with the best services that add value to their works and to promote and develop the eco-nomic investment in the Emirate of Abu Dhabi so as to meet the needs of the Emirate within the perspective of sustainable Eco-nomic development. The newly founded body, under chair-manship of the Abu Dhabi Economic Department, has the task of providing support structures for establishment and management of specialized zones in the capital. The Abu Dhabi Department of Economy has emerged over the last two years as a driving force in the develop-ment of non-oil industries in the emirate.

Mussafah Industrial CityMussafah Industrial City is one of the most impor-tant industrial and investment centres in the emirate of Abu Dhabi. It is 30kms from the Abu Dhabi City Centre, and boasts of very good road network linking it with Abu Dhabi and the other emirates. It is situated at about 30kms from the Abu Dhabi International Airport and 40 Kms from the Zayed Sea port (Port Zayed). The Mus-safah Industrial area covers 14 sq.kms and is made up of six varieties of industrial zones based

on their activities.

Zone 1: Automobiles, Machineries & Spare Parts

shops

Zone 2: Food, Textile & Soft drink manufacturing

Zone 3: Engineering works, Wood and Herbal Indus-

tries

Zone 4: Chemical, Plastic & Petrochemical Indus-

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and enhance the image as a globally recognised hub for investment and international trade. The Khalifa Port and Industrial City will be located at the geographically attractive area having access to deep water, power generation centres, and proximity to major expressways. The first phase of the city is expected to be completed in 5 years and entails an industrial estate, ancillary and sup-porting commercial and residential developments. The industrial zone will be a public-private joint venture and the sectors of industries are yet to be announced. The total financial outlay of the project is estimated as AED 8billion.100% Ownership for Foreign InvestorsReflecting the aim of Abu Dhabi Government to transform its economy into a well-developed,

modern and diversified economy, a landmark law has been enacted in 2006 to allow 100% owner-ship to foreign investors in certain of the industrial sectors. Initially the ownership shall be allowed in Industrial City-2 (ICAD-2) for those companies engaging in oil and gas related activities. ICAD-2 is a10 sq. kilo meters mixed industrial estate for accommodating dedicated oil and gas indus-trial services complex, as well as a building mate-rials cluster. The law gives regulatory powers to the Higher Corporation for Specialised Industrial Zones (HCSEZ) to deliver on Abu Dhabi’s new economic diversification drive by developing a new economic model of public private partner-ship, granting companies 100% ownership, issue licences & permits, provide tax exemptions, issue customs deferrals, carry out municipality func-tions and provide utility services.Advanced Industrial Units

Water

Electricity

Natural Gas

AED 2.20 /C.M

15/Kilo Watt-H

AED 4 /MBTU

Unit Type 01

Unit Type 03

Unit Type 04

2000m²

1000m²

500m²

Cost of Services


Three basic types of Industrial Units offering offices, toilets & services are available for lease to industries that would like to start in ready made buildings.

Construction & Real Estate SectorThe UAE dominates the Gulf construction sector with AED 130.6 billion worth of projects under construction in 2005, accounting for 63.7% of the total value of projects under construction in the GCC states. The construction sector in UAE is booming and at an all time high. Its output grew at an average annual rate of 11% over the last decade, rising from AED14.5 billion in 1996 to AED 25.4 billion in 2004. Given the wave of real estate development during the last few years, the average growth rate during 2002-2004 exceeded 16% annum. The Real Estate GDP of UAE in 2004 stood at AED 29.5 billion and 40% of this was from the emirate of Dubai.

Property LawIn August 2005, President His Highness Sheikh Khalifa Bin Zayed Al Nahyan, in his capacity as the ruler of Abu Dhabi, issued a law regu-lating the right to own and transfer real estate for citizens and expatriates. The Law states that the right to own properties shall be limited to UAE nationals and other corporate bodies wholly owned by them. GCC citizens will be entitled to properties within the areas designated for invest-ment. Foreign Nationals will have the right to own surface property, but not the land itself, in investment areas. Expatriates will have the right to arrange all their properties on it and to derive benefit from the real estate based on a long term land title agreement which shall last for 99 years or a long term surface ownership agreement of 50 years.Classification of Contracting Firms

23Morison Menon

24

Classification ConditionsMinimum Finan-cial Conditions Value of capitals & Assets(AED)

“Experience condi-tions” Contracts exe-cuted during the last 6 years before apply-ing for classification

“Technical Conditions” Permanent Technical Staff

Estimated value of the contracts that he may partici-pate in

Special 20,000,000 1. Full time Engineering and technically specialized staff consist at least of: - Senior Engineer with experience not less than 15 years. - Engineer with experience not less than 12 years. - Two Engineers with experience not less than 10 years each 2. Full time Accounting staff

Three contracts at least well executed, value of each not less than 80,000,000

More than 50,000,000

First 10,000,000 1. Specialized Engineering & Technical staff consists at least of: - One Engineer with experience not less than 12 years. –Two Full time Engineers with experi-ence not less than 5 years each. 2. Full time Accounting staff.

Two contracts at least, well executed, value of each not less than 40,000,000

More than20,000,000 up to 90,000,000

Second 5,000,000 1. Full time Specialized Engineering & Technical staff consists at least of: - Engineer with experience not less than 10 years. - Engineer with experience not less than 5 years. 2. Full time Accounting staff.

Two contracts at least, well executed, value of each contract not less than 20,000,000

More than 10,000,000 up to 50,000,000

Third 3,000,000 1. Full time Specialized Engineering & Technical Staff consists at least of: - One Engineer with experience not less than 7 years. 2. Accountant.


More than 5,000,000 up to 30,000,000

Fourth 1,000,000 Full time Specialized Engineering & Technical Staff consists at least of: - One Engineer with experience not less than 5 years.


More than 2,000,000 up to 15,000,000

Fifth 500,000-----

5,000,000Full time Specialized Engineering & Tech-nical Staff consists at least of: - One Engi-neer with experience not less than 3 years.

Contracting Firms have been classified under Regulation (4) by the contractors’ classification committee in the year 1980. Under this law, contractors/engineering firms are recognized under the following clas-sifications as mentioned in the table below.

Category

26

A Contractor, who wishes to register in the Con-

tractor Classification Registration, will have to

submit an application to the Committee Secretar-

iat enclosing the following certificates and docu-

ments1. Chamber of Commerce Membership Certifi-

cate

2. Commercial Registration Certificate.

3. Report from a locally registered audit firm

regarding financial position of the applicant

4. List of technical staff, along with approved

certificates of their qualifications and experi-

ences.

5. Certificate for all contracts carried out by

the applicant duly approved by the concerned

authorities.

The Contractor shall be granted a certificate

for the categories and specializations he has

been classified in, and this certificate should

be renewed every two years. Final decision of

the Contractors Classification, shall be published

in the official gazette. Only contractors whose

names are recorded in the classification register

are allowed to participate in tenders offered

by governmental departments for contracting

works. Governmental departments may invite

the Contractor to participate in contracts falling

under the category he is classified in.

However, exceptions are given to foreign compa-

nies and establishments, which have their main

office outside the United Arab Emirates and have

no branch office in the UAE. Their participation

in contracting works, shall be according to the

current laws and regulations, provided that this

will be limited to the specialized technical works,

which cannot be performed by the contractors

who are classified under the provisions of this

systems.

Engineering Consultancy Firm -Requirments for registering Foreign

Company Branch

•Document of the Resident Engineer(R.E) not

less than 10 years experience duly certified.

•Copy of the Resident Engineer’s passport as

well as his University Degree in Engineering.

•Power of Attorney to the (R.E.) duly attested to

act as manager and representative of the office.

•Partnership contract duly attested.(if any).

•Certificate of incorporation, duly attested,

•A written undertaking to employ an engineer-

ing team after the issue of Licence.

•Previous experience and projects, duly attested,

showing value of projects and type of works with

completion certificates and contracts.

Procedures for Contractor Classification Registration

•Board Resolution to open a branch in Abu

Dhabi.

•All supporting documents should be duly

attested by the concerned authorities, then by the

Embassy and UAE Ministry of Foreign Affairs.

•Sponsorship contract (if any) duly attested.

•Undertaking from Main Office to accept respon-

sibilities of the Branch Office.

Rudiments For (New) UAE Local Licence.•UAE National holding B.Sc in Engineering with

experience of more than 3 years.

• A technical manager should be appointed in

the office who should have ten (10) years expe-

rience as Resident Engineer.

•Copy of the owner’s passport.

•No Objection Certificate in case the UAE

National is a government employee.

• An undertaking to appoint the Engineering

team of the office, civil, architecture, or as

required.

Rudiments For Consultancy Office (Branch of UAE Firm)• Copy of the Municipality Licence.

• Copies of the degree certificate of the UAE

National and of his passport.

• Previous experience of executed projects.

• Documents of the engineer, manager of the

branch with power of attorney, duly attested.

• Partnership contract with the engineer, (if

any).

• Certificate of incorporation inside and outside

UAE for the Foreign office.

• Sponsorship Contract – (if any).

• An undertaking to transfer the engineer’s

sponsorship and to appoint the Engineering team

after obtaining the licence.


27Morison Menon

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From its earliest days, Dubai has been involved in trading. For over six centuries, its creek has provided a safe haven for the merchant vessels laden with goods from Dubai’s traditional trad-ing partners in the Far East, Indian subcontinent and Africa. In the past, these goods were sold to the camel caravan tribes in the vast desert hinter-land. Today, the city is a major re-export centre and the world comes to shop in Dubai. Dubai was also once one of the world’s foremost pearl-ing centres. The emergence of cultured pearls in the 1930’s could well have devastated the economy, however, Dubai with a reputation as a world centre for trading in gold and other pre-

cious metals continues right up to this day. Dubai is the second largest of the seven Emirates. The Late Ruler of Dubai, His Highness Sheikh Rashid, together with late His Highness Sheikh Zayed, former President of the UAE, were instrumen-tal in forming the federation, which has brought stability and prosperity to the region.

Procedure for Licencing in Dubai The Department of Economic Development, with the institutional support from the Dubai Chamber of Commerce & Industry, is the statutory body that regulates and controls the licencing proce-dures for an entity in Dubai. It was formed to organize and activate industry as well as inter-nal and external trade in the Emirate and pre-pare studies relating to industrial and commercial activities.

Types of Licences issued in Dubai1. Trade Licence

A trade licence is issued to a natural or juridical person to practice any trading activity for the purpose of profit making through buying and selling of goods. These licences are issued for engaging wholesale or retail trade enterprises, contractors, hotels, transport and storing estab-lishments etc., A Trading Licence can be a General Trading or Specific Trading. A specific trading licence limits the scope of activities to trade in only closely related items. [For e.g. a company can not trade in building materials, if its licenced activity is trading in computer peripherals]

2. Industrial License An industrial licence is issued to a natural or juridical person to practice any investment activ-ity, the object of which is to discover natural resources or transform raw materials in terms of its structure or appearance into manufactured products or to transform the semi-manufactured products into fully manufactured products by using mechanical power and segregate the prod-ucts, filling, assembling or packing them. 3. Professional Licence

A professional licence is issued to a natural or juridical person to practice any profession in which he depends on his physical or mental efforts rather than depending on a cash capital. This licence is issued to practise certain profes-sions such as engineering consultancy, other consultancy services and studies, auditing and

DOING BUSINESS IN Dubai

Engineering firm operating in Dubai shall adopt one of the following forms:a) A Local Engineering FirmLocal Engineering Firm is the firm owned by one or more UAE nationals who are entered in the Register. One or more expatriates may have share in the ownership of the firm, provided that they are entered in the Register and maximum such ownership allowed is 49%. A local engi-neering firm may be classified as follows:

b) An Associate Engineering Firm

A local engineering firm classified as First Cat-

egory may associate with a Foreign Engineering

Firm in establishing not more than one Associ-

ate Engineering Firm to carry out some special-

ized engineering works, provided that such firms

should have previously practiced the engineering

profession for a period not less than 10 years

inside or outside the country in the field required

to be licenced. c) An Expert Engineering Firm

An Expert Engineering Firm is the firm carrying

out some of the sophisticated specialized engi-

neering works. Its work shall be limited to pro-

vide opinion to the local engineering firms, the

associate engineering firms or any of the official

bodies. The applicant of the Expert Engineering

Firm licence must hold a scientific degree in a

UAE national(not less than)

Number of Years of Experience

Expatriate(not less than)

Category I

Category II

Category III

10

5

3

15

10

5

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(i)

accounting, business, medical and educational services and similar services. Engineering Consultancy (Dubai Municipality Requirements)

• To be a UAE national• To be holder of a BSc. Degree in engineering from a recognized university in one of the engi-neering fields for which he requires to obtain a license• To have experience in the specialization field not less than three years after obtaining the uni-versity degree• To be a member of the Engineers’ Association in the Country• Not to be an owner or a partner in any of the contracting companies nor building materials

trading companies

Expatriate persons may, pursuant to the stipulations and conditions provided for, apply for registration in the register of engineers subject to the following condi-tions:• To be exclusively dedicated to the business of the Engineering Firm• To have experience in the concerned engineer-ing field not less than 5 years after obtaining the university degree. Expatriate engineer must reside in UAE not less than 9 months in a year. One more expatriates may join the firm, provided they are entered in the Register of Practicing Engineers and the maximum shareholding in the capital allowed shall not exceed 49%.

29Morison Menon

30

(ii)

statement of such projects shall be attached with

supporting drawings and documents.

• The foreign engineering branch office in the

Emirate should have devoted technical staff of

high qualifications as follows:

a) Each of the licensed fields of activity to be

practiced should be lead by an engineer whose

experience is not less than 15 years in sophis-

ticated specialization and it is permissible to

appoint one of the specialization heads as a resi-

dent office general manager.

b) The specialization head should be assisted

by a number of assistant engineers whose expe-

rience is not less than 7 years and that their

number should be consistent with the volume

of the current works assigned to the firm and

that the head office should undertake to appoint

the number necessary to reside in the Emirate

throughout the period of carrying out the projects

which require their presence.Medical and Related Professions (Ministry of Health, Department of Health and Dubai Munic-ipality Requirements)Stage – I: Approval by Ministry Of Health

• Formal application with local sponsor’s partic-

ulars and suggested trade name

• Provide address/location of proposed clinic/

pharmacy/centre for formal inspection by the

MOH

• Obtain no objection from MOHStage – II – Approval by Department of Health (DOH)

• A DOH qualified manager

sophisticated engineering specialization, have

practiced the profession in his sophisticated spe-

cialization for a period of not less than 15 years

and required to carry out the activity personally.

It is conditional for an Expert Engineering Firm

(if the licencee is an expatriate) to appoint a UAE

national as Local Service Agent whose domicile

is in Dubai. d) A branch office of Foreign Engineering Firm

Foreign Engineering firm Branch Office is defined

as “the branch established in the Emirate by one

of the foreign specialized engineering firms”.

Licensing of the same shall be limited to the

fields of sophisticated specialization not com-

monly provided by local engineering firms. Conditions for granting licence:

• The foreign engineering branch office should

have high technical qualifications and special-

ized in one or more of the sophisticated engi-

neering field and existing in the native country

for a period of not less than fifteen years.

• The management of the firm should be vested

in a manager in charge, entered in the register

of practitioners of the engineering consultancy

profession, whose experience in the practice of

profession is not less than 15 years. A registered

local engineer may also be assigned for the man-

agement of the firm, provided that he is totally

devoted to the business of such a firm.

• The head office of the firm in the mother coun-

try should have carried out a number of projects

of large technical and financial value. When

submitting the application for the license, a full

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rently practicing as a lawyer/legal consultant in

the country.

4.A letter of confirmation from the Law Firm

stating the applicant is a partner or working with

the firm and the number of years.

5.Passport Copy of the Applicant.

6.Two passport size photographs.

7.Qualification Certificate/s duly legalised from

the UAE Embassy.Management Consultancy (DED Requirements)

• To be exclusively dedicated to the business of

the consultancy firm

• To be holder of Bachelor Degree in the field in

which he requires to obtain a License.

• To have experience in the specialization field

for not less than 3 years after obtaining the Uni-

versity degree.

• Not to be owner or a partner in any of the con-

sultancy companies.

• To submit copies of work experience certifi-

cates and academic qualifications

• To obtain a certificate of good conduct and

reputation from Dubai Police General H.Q.

Industrial Areas in DubaiThe Dubai Government has allocated a number

of Industrial areas and provided them with all

necessary facilities, such as internal roads, elec-

tric power, water, telecommunication services

and other facilities. The local government offers

various incentives to the businesses involved in

industrial projects. These include exemption from

customs duty on import of items for the use of

• If the manager is a new appointment he should

appear for DOH exam before obtaining permis-

sion to proceed for the licence. Exams shall be

conducted within 2 weeks time from the date of

submitting the application.

• Upon successful clearance of the exam a

formal request letter has to be submitted in the

name of a UAE national to the “Director, Licenc-

ing and Specification Department” with passport

copy, nationality card, profile about the proposed

establishment, experience of the doctor, location

etc.

• Upon reviewing the application, the depart-

ment shall issue the no-objection letter to the

department of Economic Development and Dubai

Municipality.Stage – III – Approval by Dubai Municipality and issue

of Licence by Dept. of Economic Development

• Submit formal licence application and name

approval form to the Department of Economic

Development

• Submit formal application for permission to the

“Clinics” Department of Dubai Municipality

The Municipality/DOH shall conduct formal inspec-

tion to satisfy their requirements as per the stand-

ards set.

• The license shall be a professional licence and

issued in the name of UAE national.

• The legal structure shall be sole proprietorship,

however, the same may be converted into part-

nership subject to the approval of the Director

(Licencing & Specification Dept) of DOH

• The partnership must be in the name of a pro-

fessional doctor.Legal Consultancy(Ruler’s Office Requirments)

1.A formal letter addressed to “H.H. Sheikh

Mohammed bin Rashid Al Maktoum, the Ruler

of Dubai” requesting for the approval to practice

the activity “legal consultancy” in Dubai.

2.A detailed profile of the applicant mentioning

his/her experiences in the legal consultancy field

,i.e., curriculum vitae.

3.A certificate duly authenticated by the con-

cerned authority confirming the applicant is cur-

31Morison Menon

(iii)

(iv)

32

industrial projects such as raw mate-

rials and machinery, in addition to a

10% price preference in government

prices over imported goods. There are

five basic requirements to be com-

plied by an entrepreneur to start up

an industrial project in Dubai.

1. No objection from Dubai Municipality

2. Obtain initial clearance from Ministry

of Finance & Industry (Industrial Depart-

ment)

3. Apply for industrial licence with Depart-

ment of Economic Development

4. Arrange the factory site (such as

preparation of factory site, installation of

machinery, import of raw materials etc.)

5. Register the project in the Industrial Register at the Ministry of

Finance & Industry

The Industrial areas, which can accommodate new manufac-

turing projects, are the following:

Features:•Price competitiveness for fully devel

oped plots

• No hidden charges

•Different size of plots

•Complete infrastructure

•Equity participation by Dubai Invest-ments PJSC

•Easy access to major freeways, Jebel Ali sea port and airport

•Water supply network

•Wastewater collection and treatment

•Diversification to create infrastructure suitable to attract high-tech industries

Location

Promoters

Size

Zoning in DIP

Type of Industries

Approximate Land Rental

Lease Period

Ownership

Cosmetics, food, light engineering, logistics & distribution, paper products and plastics. In short DIP is focusing mainly on small and medium sized industries

Dubai Investments Park (DIP)

Close to proposed Jebel Ali International Airport

Dubai Investments Park Development Company (LLC)

33,950,000 sq. meters

Industrial Zone

Commercial Zone

Residential & Recreational Zone

Education Zone

Manufacturing US$ 4.10[AED 15] per sq.meterWarehousing/Storage US$ 13.10[AED 48] per sq.meter

Up to 30 years, renewable for further 30 years

51:49

661 hectares

1838 hectares

20 hectares

102 hectares

391 hectares

545 hectares

84 hectares

Ras Al Khor Industrial Area

Al-Quoz Industrial Area

Al-Safa Area

Al Khubaisi Area

Um-Ramool Industrial Area

Al-Qusais Industrial Area

Jebel Ali Industrial Area

Dubai Industrial City (DIC)

Location

Promoters

Size

Zoning in DIC

Land Rent

Lease Period

Ownership

Close to proposed Jebel Ali International Airport

Dubai Holdings

560 million sq. feet

• Zone 1 Food and Beverage• Zone 2 Base Metals• Zone 3 Mineral Products• Zone 4 Transport Equipment and Parts• Zone 5 Machinery and Mechanical Equipment • Zone 6 Chemicals• Zone 7 Logistics Zone (Trans PARK DUBAI)• Zone 8 Academic Zone

Features:International Standards Activities in Dubai Industrial City will be governed under international safety, quality & environmental standards. Dubai Industrial City will introduce the Dubai Quality Mark (DQM) for products manufac-tured in the city.Industrial Fund

Dubai Industrial City is setting up a multi-million dollar fund to provide financial products tailored to the needs of the industrial sector. The fund is being set up in conjunction with leading banks, investment houses and prominent business groups in the region. The fund will be managed by glo-bally renowned industrial fund managers.Advanced Logistics: TransPARK - Dubai

One of the major segments and attractions of the Dubai Industrial City will be a dedicated Logistics Park. This will be especially designed to meet the

special logistic needs of the tenants. It has specialized facilities from ware-housing, labeling and packaging to advanced transportation systems.Education

Academic zone will host the first Engineering University in Dubai. The Engineering University will be estab-lished in partnership with one of the leading globally branded schools. Several technical training centers will also be set up in partnership with prominent business houses to cater

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to skill needs of specific sectors. Amenities

The Dubai Industrial City will be a complete city of its own, with a Downtown area that will have varied facilities such as hotels, entertainment, con-ferences & residential complex areas.Single Window Clearance

Dubai Industrial City also offers a One Stop Shop providing a single window of clearance for gov-ernment services, support services and access to labor from all over the world.

AED 2.5 - 3.00 per sq.feet [US$ 0.68 - 0.82](Minimum 100,000 sq.ft to be leased)

30years, renewable for further 50 years

51:49 (100% foreign ownership is at proposal stage)

33Morison Menon

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Being the third largest of the seven emirates, which

form the United Arab Emirates, Sharjah is located

on the Arabian Gulf in the West and the Gulf of

Oman & the Indian Ocean in the east, offering the

investor the best of both the worlds. Sharjah is the

only Emirate to have land on both, the Arabian

Sea and the Indian Ocean. Sharjah encourages

the flow of investments in various production and

service sectors. Emphasis is given to cementing the

mutual forward and backward linkages between

the different sectors, whereby the inputs and out-

puts of each sector would be utilized adequately

to serve and enhance the growth of other sectors.

The government welcomes foreign investments in

the fields of manufacturing industries, trade, tour-

ism, financial services and transport. In its drive

to diversify the economy and source of income,

Sharjah gives continued and active support to the

industrial sector as an inherent component of its

policy. The Emirate concentrates and understands

the role of private sector that accelerates the con-

tribution to the national economy. Priority is allot-

ted to project proposals that are capital intensive,

utilize sophisticated technology, use locally avail-

able raw materials and are environment friendly.

Procedure for Licencing in Sharjah Sharjah Economic Development Department with

the joint participation of Sharjah Chamber of

Commerce & Industry and Sharjah Municipality is

the authority to issue a licence to set up a project

in the Emirate of Sharjah. Investment in Sharjah

is based on a legal and organizational framework

of the distinct applications. Accordingly, licences

are issued under the following legal and organi-

zational frameworks:

a) Licences as per the Federal Framework -

discussed at the beginning of this book

b) Licences as per the Regional Framework and

ministerial decision applicable to GCC citizens

c) Licences as per the administering of laws and

local orders issued by HH the Ruler of Sharjah

d) Practicing professions and crafts by non-citi-

zens according to the local order No. 1/1991

As per this law, non-citizens of UAE can prac-

tice professions and crafts within the follow-

ing bounds:

• Sole Establishments, provided that the number

of employees in the establishment does not exceed

five.

• Civil Companies organized by Federal Civil

Transactions Law No. 5/1985 article 683-690.

This relates to a company where two or more per-

sons agree to undertake a work and guarantee

such work, against an accepted wage. They may

also jointly or severally distribute the work among

them, ensuring harmony in operations.

Both the sole establishment and the civil company

should appoint a local service agent who will not

be financially liable to them. These organizations’

DOING BUSINESS IN SHARJAH

name shall not be registered in the Commercial

Register of the Ministry of Economy. However, as

per the article (9) of the local order the licensing

authority should observe the federal law on grant-

ing licences for certain categories of the profes-

sions and craft.

Practicing activities by non-citizens according to

the local order No. 1/1992

(100% Foreign Ownership Establishments)

Commercial Activities Non-local people are allowed to practice commer-

cial activities through individual establishments

with a local service agent. The application to

practice a commercial activity through individual

establishment needs joint approval of Municipal-

ity, Chamber of Commerce and Economic Devel-

opment Department.

Industrial ActivitiesThe above said local order allows non-local people

to practice industrial activities through an individ-

ual establishment and a local service agent, pro-

vided the following conditions are met:

• The industrial project will not be subject to the

provisions of Federal Industrial Law No. 1/79

• The project should have high technology and

serve the industrial development goals of Shar-

jah.

• A preliminary viability study for the project

should be submitted to the licencing committee.

Agricultural Activities

The local order allows non-citizens to embark on

agricultural projects on the following conditions:

• The project should achieve the general goal of

agricultural reclamation with careful utilization of

availing water resources.

• The project should increase agricultural and

animal production.

In the above case also the establishment should

have a local service agent.

Investment privileges in Industrial Sector

The Sharjah Government has developed 17 indus-

trial zones - executed by the Sharjah Chamber of

Commerce and Industry - to give an extra boost

to the development of industry and to encourage

industrial investors. This has resulted in a tailor-

made model industrial zone with state-of-the-art

facilities, infrastructure and utilities. It has been

set up west of the city, covering 26 sq. kms., with

2,649 individual plots of between 10,000 and

20,000 sq. ft. An ideal location with first-class

road links to Sharjah’s air and seaports. There

is an efficient drainage system and the excellent

power and water supplies are subsidized by as

much as 70%. As the SCCI is a non-profit organi-

zation, plots can be purchased at cost price. The

Chamber offers technical advice and assistance

in the preparation of preliminary viability studies.

The Chamber has also established the Industrial

Development Department, which assists in the

operational stage by conducting field studies and

assessing progress. The Department also assists in

Doi

ng B

usin

ess

in

Shar

jah


35Morison Menon

EMIRATES INDUSTRIAL CITY (EIC)Sharjah [Saja’a District, along

Dubai Ring Road]

Al Hanoo Holding Company

2004 [expect to be opera-

tional by early 2006]

83,000,000 sq. feet

40 km from Dubai Interna-

tional Airport

Location

Promoter / Developer

Established

Size of Area

Distance

36

full capability production and advises on ways and

means of overcoming difficulties.

• The Government of Sharjah is committed to

providing the infrastructure for the expansion of

all industrial activity.

• This industrial area represents 40% of the total

land area of Sharjah. It includes manpower-hous-

ing areas and is linked by a modern road network

to air and seaports.

• Industrial production costs including that of

manpower wages, cost of living and accommoda-

tion, are 35% less than they are in the other Emir-

ates. Power and water are also subsidised to an

extent of 70% by the Government.

Features of EIC• Can accommodate over 3,000 medium and light

industrial operations

• EIC provides a modern comprehensive infra-

structure developed at par with international

standards

• The area provides internal road networks rang-

ing from 24.4 to 70 meters wide

• All main roads surrounding the project are 100

meters wide, which facilitates the connectivity of

the area especially for heavy load trucks

• Project offers a variety of plot areas and dif-

ferent usages (residential, commercial and indus-

trial) which fulfil the requirements of the different

investment plants in the area

• The permitted building height for commercial/

residential plots is ground plus three floors

• The basic foundation of the land is ready with

all the necessary treatments and ready for con-

struction.

• Locally Manufactured products are given a pric-

ing margin of 10% if they are of the same quality

and competitiveness as similar imported prod-

ucts.

• Sharjah applies international specifications and

standards in respect of its product classifications.

Thus investors find it easy to export and sell goods

of internationally recognized quality.

Zones/Sectors

Facilities

Plot Sizes

Lease Period

Rental (for 99 years)

8 Sectors comprises of Indus-

trial Park, Commercial and

Residential Areas

Land for constructing Ware-

house / Commercial Units

21,000-70,000sq.ft

Up to 99 years

AED 44-53 (US$ 12 to 14.46)

per sq ft

The economy of the UAE has been on a steady climb over the past 4 years and the real estate sector has contributed immensely towards this. Accord-ing to latest statistics, the United Arab Emirate’s real estate market is inclined to rise to US$63 billion (AED 230 billion) in the next seven years. A study submitted by the National Bank of Dubai estimates the spending on real estate in the UAE at AED 30-35 billion annually. It adds that Dubai

controls AED 70% of this spending volume.

The real estate sector in the UAE had witnessed

an average 4.1% growth level and accounted for

16.5% of the Emirates GDP in 2004. The boom

in the real estate is supported by strong infra-

structure investments led by various arms of the

government. Growth in the real estate sector has

mainly been due to the abundant number of free

hold properties rising all over the emirates. Real

estate markets have a great impact on the con-

structions sector and it is no surprise that dubai

holds the lion’s share in construction sector. It is

estimated that the UAE dominates the Gulf con-

struction sector with AED130.6 billion worth of

projects under construction in 2005, accounting

for 63.7% of the total value of projects under

construction in the GCC states. As of June 2005,

there were a total of 1,825 building construction

projects being implemented within the GCC. The

UAE leads the market with 820 projects account-

ing for 45% of the total.

Abu Dhabi though a late entrant to the free holds

property market has seen huge projects taking off

within a short time. There is enormous potential

for growth in the real estate sector in Abu Dhabi

after the government introduced a law giving

property ownership and transfer rights to foreign-

ers. Seven start-up property development compa-

nies are set to launch in Abu Dhabi over the next

six months with a total capital of more than US$

2billion. Some of the major projects coming up in

Abu Dhabi are Al Raha Gardens, Al Raha Beach,

Central Market, Reem Islands etc.

Dubai has been at the epicentre of the real estate

boom in the UAE and has created a niche for itself

in the worldwide real estate market. Projects such

as The Palm, The World and the proposed highest

tower in the world The Burj Dubai Tower have indeed

put Dubai on the world map. These awe inspiring

projects have cemented Dubai’s place as one of the

most desirable places to live in the world and earned

it the title of “most hip” place to live in. Some of

the major ongoing projects in Dubai are The Palm

– Jumeirah, Jebel Ali & Deira, The World, Emirates

Living, Downtown Dubai and the Burj District, Dubai

Marina, Dubai Waterfront, Dubai Land, Jebel Ali Air-

port City etc. It is estimated that the “New Dubai”

area between Jumeirah and Jebel Ali will cater to a

population of nearly 2-3 million people by the year

2015.

A typical 2 bed room apartment would range from

AED 1.5 million to AED 3 million and a 3 bed room

villa from AED 2 million to AED 4 million at current

market prices. Prices have been constantly varying

due to market demand but it is expected that free

38

Real Estate in the UAE


hold property prices will stay stabilized in the

coming years with the introduction of a federal

law and proper regulation. Dubai has one of the

highest yields in the world.

When free hold properties started to materialize

in the UAE, a very high percentage of the buyers

were investors and few people actually bought

them to live or rent out. However with increasing

real estate yields (7-8% residential and 11-12%

commercial) comparable to worldwide standards,

and increasing rents, more and more people are

buying properties to rent out or to live in. It is

estimated that rents in Dubai have increased by

over 23% in the year 2005.

What is of further interest to the investor is the

tremendous increase in the tourist inflow into the

country. This has boosted the number of hotels

and rooms available in Dubai. A good portion of

the real estate is expected to be used for serviced

hotel apartments based on the tourist inflow.

The Emirates of Abu Dhabi, Dubai & Sharjah form

a good chunk of the real estate development in

the UAE. The other emirates mainly Ajman, Ras

Al Khaimah, Umm Al Quiwain & Fujairah have

recently joined the free hold rush and have drawn

ambitious plans to develop themselves. Al Hamra

Village in Ras Al Khaimah will feature about 1300

residential units and is the first free hold develop-

ment in the emirate. The close proximity of Ajman

to Sharjah and Dubai has enabled the emirate to

cash in on those who work in Dubai and prefer to

live in these areas due to the high rental costs in

Dubai. Several large projects are under construc-

tion in the Northern emirates like the US$ 300 mil-

lion Al Ameera Village in Ajman, the US$ 8 billion

Al Salam City and Emirates modern industrial area

in Umm Al Quiwain, the Al Jaber tower in Fujairah,

US$ 5 billion Nujoom Islands in Sharjah etc.

Although there are certain pessimistic views on the

property markets in the UAE, strong and planned

overall infrastructure growth aimed on catering to

the rising population and tourist flow have given

consumers and investors confidence in the UAE

real estate sector over the past few years. This

trend is expected to continue with the government

placing a lot of confidence and support in the real

estate sector.

Real Estate Yields (of Major Cities)

Yield RatesCity Commercial ResidentialBangaloreBeijingBrisbaneChennaiDubaiDelhiGuangzhaouHong KongHyderabadKolkataMumbaiSeoulShanghaiSingaporeSydney

Tokyo

11.0-12.0%9.60%

7.0-8.0%11.0-12.0%11.0-12.0%

7.5-9.5%9.0-10.0%

3.95%11.0-12.0%8.0-12.0%

10.0-12.0%8.00%8.90%

5.0-5.5%6.5-8.0%4.0-8.0%

6.0-7.0%8.30%

NA3.5-5.0%7.0-8.0%5.0-6.0%

2.40%3.75%

6.0-7.0%5.5-7.0%5.0-7.0%

NA7.50%

2.0-3.0%NANA

Source:NBD Investment Research

39Morison Menon

Rea

l Est

ate

in t

he

UA

E

40

Key CommunitiesAl Hamra Village – Ras Al KhaimahNujoom Islands - SharjahDubai Investment Park – DubaiBusiness Bay – DubaiDubai Land – DubaiJumeirah Beach Residence – DubaiThe Green Community - DubaiArabian Ranches – DubaiBurj Dubai – DubaiDowntown Dubai – DubaiDubai Marina – DubaiEmaar Golf Homes – DubaiEmaar Towers – DubaiEmirates Hills – DubaiMeadows – DubaiOld Town – DubaiSprings – DubaiThe Burj Residences – DubaiThe Greens – DubaiThe Lakes – DubaiThe Links – DubaiThe Parklands – DubaiThe Views – DubaiUmm Al Quiwain Marina Discovery Gardens – DubaiDubai Water Front – DubaiInternational City – DubaiJewel of the Palm – DubaiJumeirah Islands – DubaiJumeirah Lake Towers – DubaiJumeirah Village – DubaiThe Lost City – DubaiThe Palm, Deira – DubaiThe Palm, Jebel Ali – DubaiThe Palm, Jumeirah – DubaiThe World – DubaiMangrove Islands – Ras Al KhaimahPorto Arabia – Ras Al KhaimahSaraya Islands – Ras Al KhaimahShams Abu Dhabi – Abu DhabiAl Ameera Village – AjmanAl Salam City – Umm Al QuiwainDubai Lagoon - Dubai

Master DeveloperAl Hamra Real EstateAl Hanoo HoldingsDubai InvestmentsDubai PropertiesDubai PropertiesDubai PropertiesUnion PropertiesEmaarEmaarEmaarEmaarEmaarEmaarEmaarEmaarEmaarEmaarEmaarEmaarEmaarEmaarEmaarEmaarEmaarNakheelNakheelNakheelNakheelNakheelNakheelNakheelNakheelNakheelNakheelNakheelNakheelRAK PropertiesRAK PropertiesSaraya HoldingsSorouhTameerTameerTown Centre Mgt Ltd

Note: This list is not all inclusive and lists all major developments that were available at the time of research.


41Morison Menon

Corporate Initiatives of Dubai Government[Some of the major holdings and subsidiary entities]

Dubai Aerospace Enterprise (DAE)[formed by a consortium of six partners - Emaar, Dnata, Mercator, ENOC, Amlak and DAFZA][subsidiaries, yet to be named]

•Airport Development and Operations

•Aircraft Maintenance, Repair and Overhaul (MRO)

•Aircraft Leasing and Finance

•Aerospace University

•Research and Development Centre

•Components & Engines Manufacturing Facility

Dubai Holdings

• Dubai International Capital

• E-hosting datafort

• Dubai Internet City

• Dubai Media City

• Dubai Knowledge Village

• Dubai Outsource Zone

• Dubiotech

• Dubai Studio City

• International Media Production Zone

• Dubai Health Care City

• Samacom

• Dubai International Properties

• Dubai Properties

• Dubailand

• Jumeirah International

• Dubai Humanitarian City

• Dubai Industrial City

• Arabian Radio Network

• Dubai Energy City

• Dubai Investment Group

• Empower Energy Solutions

The Corporate Office (TCO)

•Ports, Customs & Free Zone Corporation

•DP World Group

•Nakheel Group

•Dubai Multi Commodities Centre Group

•Al Aweer Free Zone Group

•Jebel Ali Free Zone Authority

•Tejari

•Dubai Customs

•Techno Park

•Platinum Yacht Repairing FZCO

•Dubai Maritime City

•Jadaf Dubai

•Dubai Drydocks

42

exhibitions must be re-exported within 90 days of import. Permits to such exhibitions which are issued by the concerned authorities must be presented at the time of import. Equipment imported for temporary use in construction, sci-entific research, development projects, for repair or maintenance are given sufficient time to re-export considering the period of contract or other documentary evidence to justify the period required.TransitConsignments received through bill of lading and consigned to a destination outside the UAE, and dispatched overland are cleared on a “Transit Bill”. The agent should submit to Customs (a) Delivery Order by the Shipping Agent (b) Copy of Bill of Lading or Manifest (c) Evidence of value

(if available or else Customs will estimate.) (d) Deposit or Guarantee amounting to the potential duty liability shall be required which will be refunded or released on production of proof of exit of the goods out of the UAE within 30 days of the Transit Bill date. TransshipmentConsignments received through Bill of lading and consigned to a destination outside the UAE and dispatched by sea direct from the port (SHIP-SHORE-SHIP or SHIP-TO-SHIP) are cleared on Transshipment Bill. The ship’s Agent should submit to Customs a Delivery Order.Re-Export Procedure for goods of foreign origin:(a)Documentation Requirement:• Original Invoice• Re-export Declaration duly completed• Copy of the import bill for re-export

GeneralInformationCustoms Procedures (Dubai)Importer CodeAn importer code is a pre-requisite for import-ers. This is issued to traders who hold valid trade license issued by the economic or municipal departments in the UAE. Importers are allowed to import only goods in the category specified in the license.Import BillsThe normal imports for local or any other AGCC country consumption is cleared on Import Bills. The documents required are:1. A delivery

order from the Shipping Agent in duplicate. 2. Original Invoice 3. Original Certificate of Origin 4. Packing List 5. Bill of Lading Second original. On presenting the above doc-uments, customs will collect customs duty, if applicable, and clear the import bill. Import for Re-exportConsignees, with Customs approval, may import goods with the intention of re-exporting them within 180 days, on payment of a deposit or submission of a bank guarantee in lieu of duty. In these cases the deposit or bank guarantee is refunded/released on proof of re-export. Goods remaining in the UAE after 180 days are liable for duty payment. Temporary AdmissionIn both the cases documentation is the same as for Import for Re-export except declared as for “Temporary Admission”. Goods imported for

Gen

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Info

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ion

In the case of vehicle re-export, export permit from the Traffic Department is required.(b) Goods imported for re-export are sub-ject to Customs inspection before they are re-exported in order to get the deposit refunded or guarantee released(c) The re-export is cleared on an Export Bill. While re-exporting goods on which is the importer intends to claim the deposit paid on importation, the following documentation should be completed.Re-Export by:(a) Road:

• An Exit/Entry Certificate duly certified by the customs inspector evidencing the stuffing or packing etc. and by the customs authorities at the point of exit • Road Manifest.(b) Sea:

• An Exit/Entry Certificate duly certified by the cus-toms inspector evidencing the stuffing or packing etc. and by the customs authorities at the point of exit; and• Clear the export Bill.(c) Air:

• An Exit/Entry Certificate duly certified by the customs inspector evidencing the stuffing or packing etc. and by the customs authorities at the point of exit• Airway bill• Export Bill.(d) Exports by launches or other country

crafts:

• An Exit/Entry Certificate duly certified by the customs inspector evidencing the stuffing or packing etc. and by the customs authorities at the point of exit.• Export Manifest.Export Procedure for Goods of UAE Origin:There is no duty on exports, but shippers are required to provide Customs with the following information:• Original Invoice• Export Declaration duly completed

• In the case of vehicle export, export permit from the Traffic Department is required. Export Declaration must not be raised for export cov-ered by Free Zone, DFSA, Transit Bills. • The export is cleared on an Export Bill

Customs Procedures in Jebel Ali Free ZoneThe Jebel Ali Customs Centers (JACC) clears alto-gether six types of bills depending on the move-ment of the consignments being cleared(a) Free Zone Bills of Entry (BOE):The required documents for clearance: The Delivery Order (DO) issued by the shipping agent, original invoice issued by the supplier, packing list (P/L), Bill of Lading (B/L), certificate of origin (COG). If the client possibly lacks any

of the above documents, refundable amount of AED.500 should be paid, claim of which should be forwarded to the Jebel Ali Customs Centers within 60 days from the bill date. The incoming FZ consignments must be sealed while delivering at the free zone.

(b) Ex-FTZ Export Bill: These types of bills are cleared on a deposit payment ( usually cash/cheque/guarantee) and usual registration charges (deposit is not applicable for the clear-ance of bill for ship-shore-ship forwarding). The required documents for clearance: original invoice prepared by the licensee, P/L, Delivery Advice by licensee and exit/entry certificate. The refund claim should be submitted within 60 days from the bill date though the exporting time limit is only 30 days. In addition to the deposit, 10% of the FOB price would be collected as penalty if the client has failed to submit claim together with the attested copies of the exit/entry certificate within the stipulated time. The Jebel Ali Customs Centers issues Road Transport and GCC Transit Manifests towards this. And if it is forwarded by country crafts the Transit and Export (sea freight) Manifests would be issued while proce-


43Morison Menon

44

dure remain the same including deposit payment and registration charges. In all cases the licensee should produce the copy of the license together with other documents.(c) Ex-FTZ Import Bill: This is cleared on duty payment (if dutiable) plus registration charges. Document: original invoice and DA by licensee, copies of licenses of seller and buyer. The Free Zone Bills Of Entry, if any, should be referred to separately.(d) FTZ Internal Transfer Bill: This is cleared on payment of only the registration charges. Required documents: invoice by the seller show-ing items sold to the buyer (both will be FZ licen-sees), DA by seller, supplier’s original invoice, letter showing transfer of ownership signed by both the seller and buyer and licenses of both

seller and buyer.(e) Ex-FTZ Import Bill for Re-Export: This is cleared on payment of deposit (cash/bank guar-antee) and registration charges. This is a benefi-cial facility the DP & C have extended to the sole authorized agents representing multinationals in the UAE markets to import goods into the local market from them instead of importing it from overseas. To qualify to do this business transac-tion, the local agent should produce to the JACC an ‘Agency Registration Certificate’ issued by the Ministry of Economy in UAE along with the FZ licensee’s letter confirming the respective agent’s representation in UAE market for their prod-ucts. Required documents: DA, seller’s original invoice, copies of the licenses of both parties. It must be re-exported within six months. Addi-tional 60 days has been given for the claim set-tlement. 5% duty will be collected for the items

that have not been re-exported.(f) Ex-FTZ Temporary Exit Bill: This is cleared on payment of deposit and registration charges. The goods being taken out of JAFZ temporarily for overhauling/repair/exhibition/etc. are cleared on this bill. Documents: DA, invoice and copy of license. When the item/s is brought back or taken out of JAFZ it is checked together with the bill copy and the deposit will be refunded as per the finding of the Customs Inspector. The goods temporarily taken out of the Free Zone on this bill should be brought back within 90 days and the claim for refund of deposit should be submit-ted to the JACC within 30 days of the expiry time of bringing the goods back to the FZ. In other words, within three months from the bill date, claim for refund to deposit must be made.Export Through Jebel Ali Free Zone (JAFZ)Goods purchased in local market could be for-warded to destinations through the JAFZ port. It could be sea-freighted by both the individuals and organizations. The prescribed ‘Declaration Form’ is to be filled up and produced to the JACC along with the respective invoice at the time of exportation. The ‘Vehicle Clearance Certificate’ issued by the Dubai Traffic Department of the Dubai Police is to be submitted, in addition, if the consignment forwarded is of vehicles. Dhs.10 is collected on Miscellaneous Receipt (MR) towards this by the JACC.Miscellaneous The record of the spares used for repair/overhaul of machinery within the FZ should be maintained by the concerned licensee for JACC verification.The JACC reserves the right to verify stock records of the licensees in the FZ. Corrections on documents prepared by the JACC are made on payment of AED 10.For all Free Zone Export Bills, whether deposit paid or not or, otherwise, exported on ‘ship-shore-ship’ basis, the key document of exit/entry certificate with full endorsement by the exit point Customs authorities should be submitted to the JACC within the stipulated time.Customs DepositsIn order to speed up clearance procedures in cases such as Imports, Import for re-export and overland transits, consignee or agent can pay

• Claims submitted within 30 days from the expiry date : Deduction of 25% of the deposit. • Claims submitted within 31 to 60 days from the expiry date: Deduction of 50% of the deposit. • Claims submitted after the expiry of the above period will be totally rejected.

Customs Duty Deposit: Refundable fully if claimed within 60 days. Claims submitted after this period shall be subject to the following rates of deductions:• Claims submitted within 30 days from the expiry date: Deduction of 10% of the Deposit. Import for Re-export Deposits: The goods must be re-exported within 180 days from the date of the bill. Refundable in full if claimed within 240 days. Claims submitted after this period shall be

subject to the following rates of deductions:• Claims submitted within 1 to 60 days after the expiry date: Deduction of 15% of the deposit.• Claims submitted within 61 days to 90 days after the expiry date: Deduction of 30% of the deposit.

• Claims submitted within 90 days to 120 days after the expiry date: Deduction of 45% of the deposit.• Claims submitted after the above period will be totally rejected.Transit and Free Zone Export Deposits:Goods must leave the country within 30 days. Refundable fully if claimed within 45 days. Claims submitted after this period shall be subject to the following rates of deductions: • Claims submitted within 15 days from the expiry date: Deduction of 25% of the deposit. • Claims submitted within 16 to 45 days from the expiry date: Deduction of 50% of the deposit. • Claims submitted after the above period will be totally rejected.Apart from the above, a penalty of 10% of the value of the cargo will be imposed in case of failure to export goods cleared for export from


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a deposit to Customs as a security against duty liability.Types of Deposit:Duty Deposit: Paid in lieu of duty when a possible exemption is expected or in cases where the documents evi-dencing exemption are not available at the time of clearance.Deposit against original documents:Collected against lack of original invoice, certif-icate of origin, packing list, bill of lading etc. Import for Re-export/Ex.Free Zone Import for Re-Export Deposit: Collected on goods imported and cleared on Re-Export Bills.Transit and Inter-port Transfer Deposits: Collected on goods cleared on Transit BillsEx.Free Zone Overland Export :Collected on goods exported out of Free Zones and cleared on Ex.Free Zone Export Bills.Temporary Admission Deposit:Collected on goods imported and cleared on Temporary admission bills.Deposit for lack of docu-ments:Deposit against lack of documents is AED.500 against each document. Transit Deposits are usu-ally equal to the duty value of the consignment. But Customs shall determine what is to be paid in individual cases. Custom’s decision in such cases is final. Deposit payments are rounded to the nearest AED.100.Refund of deposit:Claims for refunds must be submitted to the Cus-toms Office where payment was made. Refund cheques can be collected from the payment office or the Customs Main Office as preferred by the Shipper.Claims for refund of Deposits are subject to time limits. In summary they are as follows: Deposit against original documents: Refundable if claimed within 60 days. Claims submitted after this period shall be subject to the following rates of deductions:

45Morison Menon

46

the Free Zone.

Bank GuaranteesThere are occasions when Customs will accept Guarantees instead of payment by banks so as to allow companies to facilitate their operations. Guarantees are only acceptable if issued by a Bank in UAE and the text must be in a form acceptable to Customs. The period may be lim-ited but in many cases the Guarantee is automat-ically renewed each year.

Standing GuaranteesClearing and Forwarding Agents, Consignees and all e-clearance consignees having export may apply to Customs for permission to pro-vide a “Standing guarantee” as security instead of making a cash deposit payment for each consignment. The following time limits and payments will apply to bills cleared for import for Re-Export under Standing Guarantee:• Goods should be re-exported within 180 days from the date of the bill. • Additional 60 days will be allowed to submit the claim for release of the guarantee • Claim submitted after 240 days, the fol-lowing percentage of fine will be applied on the guaranteed amount:• Claim submitted within 241 to 270 days – 15%• Claim submitted within 271-300 days – 30%• Claim submitted after 300 days from the bill date will be totally rejected and the guaranteed amount in full should be paid.• In case of non re-exportationFull amount of duty must be paid within 30 days after the expiry of the time limit for re-exporta-tion (180 days)Otherwise for delayed payments, the following payments will be applied:Dhs 1000 if duty is paid within 31 – 60 days after the expiry date.Dhs 2000 if duty is paid within 61 – 90 days after the expiry date. The Standing Guarantee facility shall be with-drawn in case the payment is delayed beyond the above periods.

Auction of GoodsWhen goods are not removed from Customs premises within the stipulated period (3 months for FCL cargo, vehicles and road moving equip-ment, 6 months for LCL and one month for refrigerated and dangerous containerized cargo), they are sold in public auction by Customs. The sale proceeds are appropriated as follows: 1. In payment of auction expenses, customs duties,

port charges and other government charges.

2. To settle the carrier’s lien on the goods against

their proven claims within one year from the date of

auction.

The balance shall be retained for one year for re-

imbursement to the owner of documents of title

against proven claim.

The proceeds shall be transferred to non-refundable

government funds if no claims have been proven

within one year from the date of auction.

Restricted GoodsThe following goods are not allowed to be

imported without a previous permission from the

concerned government bodies:

1.All kind of weapons and ammunition.

2.Alcohol and liquor.

3.Pharmaceuticals used for medicinal purposes.

4.Chemical, organic fertilizers, agricultural fixers and

lethal plant epidemics.

5.Seeds and agricultural arboretums.

6.Medicines and medical drugs.

7.Publications, visual and audio tapes.

8.Telecommunication equipment.

9.All foodstuffs.


10.Living bees and bee queens.

11.Fireworks and explosives.

12.All kinds of camels.

13.”Habara” falcons.

14.Equine breed (horses, mules, donkey, ponies and

zebras).

GCC Customs UnionThe GCC customs union was implemented effective

from 1st January 2003 based on the following prin-

ciples:

•A Common External Customs Tariff for products

imported from outside of the GCC customs union.

•A Common Customs Law.

•Unified customs regulations and rules applicable in

all member States.

• Unification of the internal customs, financial and

administrative regulations

and procedures relating to

importation, exportation

and re-exportation in the

GCC States.

• The free movement of

goods among the GCC

States without customs or

non-customs restrictions,

while taking into considera-

tion the implementation of

the veterinary and agricul-

tural quarantine regulations and the prohibited and

restricted goods.

• Treatment of the goods produced in any of the

GCC States as national products.

• Any land, sea or air customs port of the GCC

States that has connection with the external world

shall be deemed as a point of entry of the foreign

goods into any member State.

• The first customs port of the GCC States vis-à-vis

the external world shall conduct the inspection of

the goods imported to any member State, verify

their conformity to the required documents, ensure

that they do not contain any prohibited commodi-

ties and collect the applicable customs duties.

• Unification of the restrictions imposed on the

goods permitted to be imported subject to the fulfil-

ment of certain conditions in all the GCC States.

• The adoption of unified rules for importation

and movement of the government imports and of

exemptions from customs duties.

• The goods whose importation is prohibited in

certain member States while permitted in other

member States shall be directly imported through

the importing State or through another member

State that permits entry of such goods provided that

such goods shall not transit the territories of the

member States that prohibit importation of these

goods.

• The foreign goods imported into the GCC States

from the free zones shall be subject to the customs

duties when exiting these zones and shall be treated

during movement to the other member States the

same as other foreign goods.

• The common customs tariff of the GCC Customs

Union shall be 5% on all foreign goods imported

from outside of the Customs union with effect from

1st January 2003.

Customs duties are col-

lected at the first customs

point of entry of the GCC

States with the world as

of 1st January 2003. The

shares of the member

States of the customs pro-

ceeds shall be distributed

according to the final des-

tination of the goods for

the first three years following the establishment of

the GCC customs union (Transitional Period).

Goods taken from the free zones into the customs office shall be treated as foreign goods even if incorporating local raw materials or articles on which customs duties and taxes have been collected prior to their admission into the free zones.


Gen

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47Morison Menon

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48

Port TariffsContainer Handling and Storage Charges

During the second month, as from the date of arrival of goods

During the third month, as from the date of arrival of goods

During the fourth month, as from the date of arrival of goods

For each day onwards:

20ft TEUAED/Per Day

40ft TEUAED/Per Day

Storage ChargesFirst 30 days – Free of Charge

Abu DhabiSea Port

Port Zayed (Mina Zayed)Port Zayed (Mina Zayed) is the main

seaport of Abu Dhabi. Operated by

Abu Dhabi Sea Port Authority, the

port has 21 berths with individual

depths varying between 9.5 and

15 meters, allowing the arrival of

all types of commercial trans-ocean

ships. In addition to the normal port

services, Port Zayed offers the facil-

ity of Fresh Water, Towage, Launch

Services, Provisions, Repatriation,

Gyco/Radio Repairs, Fumigation, Bun-

kering, Medical, Surveys, Rubbish

Collection, Container repairs and tem-

perature controlled warehouses. It

has 13 berths dedicated for cargo

services.

10

20

20

25

20

25

30

35

AED

200

100

250

150

250

300

75

150

150

200

80

150

200

100

150

20 ft. loaded full

20 ft. empty

40 ft. loaded full

40 ft. empty

20 ft. use of special equipment

40 ft. use of special equipment

20 or 40 ft. moving inside vessel

20 or 40 ft. moving inside vessel and off-loading on to quay

20 ft. transhipment

40 ft. transhipment

40 ft. or 20 ft. elec. supply to reefers per 24 hrs

20 ft. stripping in L.C.L shed

40 ft. stripping in L.C.L shed

20 ft. stripping without moving to shed

40 ft. stripping without moving to shed


Gen

eral

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Afris Line

APL

Arab Line

Autoliners (Hual)

Baltic Shipping Co

Barber Shipping

Bon Voyage Co

Choyang

CMA-CGM

CMBT

Conti-Lines

COSCO

D.S.R. SENATOR

Egyline

Ellerman

Evergreen

Gear-Bulk

Global Container Line

Global Maritime

Global Shipping

Hapag-Lloyd

Hinode Kisen

Hoegh-Ugland

HYUNDAI

Hyundai Merchant Marine

Integrated Feeder Services

Jordan National Shipping Line

K- Line

Kingswood

Maersk Line

Mediterranean Shipping Co

Messina Line

MISC

MOL

Pakistan National Shipping Corpn.

Pan Islamic Steamship Co.

PanOcean Shipping Co

Rickmers Line

Sea-Land

Senator Line

Ship, Corp. of S.A.

SIMATECH

UASC

Uniglory

WaInyk

Wakl

Wanhai Shipping Line

Willine (W. Wilhelmsen)

X-Press Container Line (WAKL)

Shipping Liners calling Port Zayed

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50

Additional Services

Jebel Ali to all Free Zone Tenants, Break Bulk Cargo.

Jebel Ali Container Yard to all Free Zone Tenants Containers

round trip.

Grounding of container or move from ground to trailer

using hammer

Hire of tractor with driver applicable only for Jebel Ali Free

Zone Companies and is subject to availability

Use of Low Bed Trailer

Delivery plus backload of new cargo

Inter Port Transfers — between Terminals Jebel Ali Con-

tainer Terminal and Port Rashid Container Terminal

:

:

:

:

:

:

:

AED 230 per trip per trailer

AED 185 per trip per trailer 1 x 40’ or 2 x

20’ Containers

AED 85 per 20’ Container; AED 110 per 40’

Container

AED 120 per hour

Rates plus 50%

Rates plus 50%

AED 110 per TEU

Note: Inter Port Transfer rate is applicable to full Containers only and it includes TLUC.

Full

Full Transship

Empty

Empty Transship

Over 20’Full

Full Transship

Empty

Empty Transship

450

508

236

344

665

708

321

494

Upto 20’

Std RateMovesAED

Port TariffsLoading/Discharging of Containers

Dubai

Gen

eral

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Jebel Ali (Outside)

Dubai City

Sharjah

Ajman

Umm AI Quiwain

Ras AI Khaimah

Hatta

Dhaid

Manama

Masafi

Fujairah

Khorfakkan

Dibba

Mafraq

Suwiehan

AI Ain

Umm AI Nar

Mussafah

Abu Dhabi

Sadiyat Island

Tariff

Ruwais

Jebel Dhana

Habshan

Abuhasa

310

395

445

545

615

750

855

720

820

855

885

955

1,020

785

785

1060

785

785

820

1,090

1,230

1,500

1,500

1,435

1,570

2X2 or 1X40’ Container &General Cargo

1 X 20’ Container 7 ton truck

AED AED AED275

340

410

515

580

720

820

680

785

785

820

885

955

720

720

990

720

720

785

1,025

1,230

1,435

1,435

1,365

1,500

105

240

310

340

410

515

515

445

515

545

615

680

720

410

410

750

410

410

480

750

820

990

990

955

1025

Commercial Trucking Services and charges from Jebel Ali to:

Average Transit time to various ports in the world from UAE[Days are calculated from Jebel Ali Port; +/(-)

one day from other emirates]

DestinationPusan Pect - Japan

Hong Kong

Jakarta

Jeddah

Karachi

Kuwait

Manila, North Harbour

Kobe-Osaka

Panjang

Sokhna

Rangoon

Salalah

Singapore

Tokyo

Yokohama

19 days

16 days

13 days

10 days

2 days

1 day

18 days

25 days

18 days

15 days

13 days

5 days

11 days

26 days

26 days

DestinationCebu

Klong Toey

Cochin

Chennai

Vishakapatnam

Mundra

Nave Sheva

Colombo

Doha

Haiphong-Vietnam

19 days

15 days

11 days

16 days

21 days

8 days

10 days

7 days

1 day

17 days

DestinationBrisbaneMelbourneSydneyBudapestCopenhagenHamburgGlasgowLisbonManchesterPragueZurichBuenos AiresColon Free Zone, PanamaAtlantaAustin, TexasBaltimore, MarylandOhio CaliforniaNew York

38 days33 days35 days24 days30 days22 days29 days33 days24 days24 days23 days56 days37 days34 days33 days34 days33 days32 days33 days

Average Transit time



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DestinationMississippiBoston, MassachusettsCarson, CaliforniaCedartown, GeorgiaChicagoCleburne, TexasClyde, OhioColorado Springs, ColoradoDenver, ColoradoElgin, IllinoisMichiganHawaiiAlabamaQuebecNew JerseySydney

Average Transit time33 days34 days30 days34 days32 days32 days33 days34 days33 days34 days30 days32 days31 days36 days33 days33 days

DestinationTampa, FloridaToronto, CanadaVancouverWashington, D.C.BristolOkalahomaAarhus, DenmarkAmsterdamAntwerpBelfastFloridaPennsylvaniaKentucky

Virginia

Average Transit time33 days37 days28 days35 days24 days34 days31 days22 days18 days30 days33 days33 days30 days35 days

Shipping Liners calling Jebel Ali Port, Dubai

• APL• China Shipping Container Line• Compagnie Maritime D`Affretement (CMA)• Conti Lines• Contship Containerlines Limited• Cosco-China Ocean Shipping• Delmas• Ecu Line Middle East LLC• Elite Shipping Line• Ellerman / Andrew weir shipping Limited • Evergreen Marine Corporation• Global Container Line (GCL)• Gold Star Shipping Line• Hanjin Line• Hapag - Lloyd• Hoegh - Ugland Auto Liners A/S (HUAL)• Hyundai Merchant Marine• Ial Container Line• Iic Container Line Pte Limited• Islamic Republic of Iran Shipping Lines• Kien Hung Shipping Company Limited• K-Line-Kawasaki Kisen Kaisha Limited• Lauritzen Reefers A/S• Maersk Sealand• Malayasia International Shipping Corporation (MISC)• Mediterranean Shipping Company (MSC)• Messina Line• Mitsui Osk Lines (MOL)• National Shipping Company Of Saudi Arabia (NSCSA)• Neptune Orient Lines Limited (NOL)• Norasia Container Lines Limited• Nyk Lines• Orient Express Lines Limited (OEL)• Orient Overseas Container Line (OOCL)• P&O Nedlloyd LLC• Pacific International Lines (PIL)• Pakistan National Shipping Corporation (PNSC)• Pan Ocean Shipping Line• Polish Ocean Line• Regional Container Line (RCL)• Rickmers Line• Safmarine Line (SCL)• Samudera Shipping Line• Sei Line LLC• Senator Line• Stalco Line• United Arab Shipping Company (UASC)• Walleniuswilhelmsen Line• Wan Hai Lines (WHL)• Western Bulk Shipping Line (WBC)• Yang Ming Line


‘K’ LineAmerican President LineANL LineBay LineChina Shipping Container LineCMA-CGMContshipCoscoEthiopian Shipping LineFarmus LineGlobal Container LineGlobal Container LineHanjin Shipping LineHapag LloydHyundaiHyundai Merchant MarineI.R.I.S.L. LineIntegrated Container Feeder ServiceIran Marine ServicesLaurel Navigation LineMaersk Sea LandMediterranean Shipping Co.Norasia LineNYKOOCLPILPONLReef LineSafmarineSamudraSea Consortium (WAKL & XCL)Senator LineSimatech LineUnigloryUnited Arab Shipping Co.Wan Hai LinesYang Ming Line

Schedule of Port Charges

LCL Cargo 20’ 40’

AED AED

Stuffing & Unstuffing

Stuffing & Unstuffing (if cargo is palletized)

Removing from ware-house to trailer or vice versa

LCL Sorting to sub mark

500

200

Per frt. Tonne

Per frt. Tonne

400

10

7.50

LCL Cargo Storage Charges

First 20 days

thereafter per

freight tonne

Per 10 days period

Or part thereof

Thereafter

21-40 days

41-70 days

Free

AED

5.00

6.00

7.00

LCL Cargo Storage Charges

Full Import

Export

First 10 days

Thereafter per day

First 30 days

Thereafter per day

20’

AED

Free

15

Free

15

40’

AED

Free

30

Free

30

Shifting Containers

At line / Agent request on Terminal –

full or empty

At line / Agent request off Terminal –

full or empty

20’

AED

75

100

40’

AED

100

125

Sharjah Shipping Lines Calling Sharjah Ports

53Morison Menon

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54

Immigration Requirements for New Entities in the UAEIt is a mandatory requirement to register a new company’s name with Immigration Department and the Ministry of Labour & Social Affairs. Since most of the companies recruit their employees from abroad it needs to register a file at the Min-istry of Labour & Social Affairs and Immigration Department once they received their trade licence. Without registering with both these departments an entity cannot employ its staff. Upon register-ing the company/entity shall be issued a regis-tration card from Ministry of Labour & Social Affairs called ‘Establishment/Labour Card’. The card issued by Immigration Department is called ‘Establishment/Immigration Card’. All the visa applications submitted to both the departments should be accompanied with copy of the above ‘Cards’.Employment Permits/Visas: Employment Visa or Permit shall be issued by the Immigration Department for a foreign national in order to work in a company in UAE after the approval from Ministry of Labour and Social Affairs. Employ-ment permit/visa allows the holder to enter UAE once for a period of 30 days and are valid for a period of 2 months. When the employee entered the country on the basis of the employment visa the sponsoring company should arrange to com-plete the formalities of his residence stamping. It is the preliminary stage to arrange for the health card and medical fitness examination for the employee from a government health center. The employee must undergo for a medical test and obtain a medical certificate. Once the medical certificate is issued by the health department an application for Labour Card should be submitted to the Ministry of Labour & Social Affairs within 30 days of the employee’s entry into the country. The next step is to submit the application to Immi-gration Department for stamping the residency on employee’s passport. All the above formalities should be completed within 60 days of the arrival of the employee in UAE. Investor Visa: An expatriate investor in an LLC company who holds minimum shareholding of

AED 70,000 in the share capital shall be issued an investor visa. Such visas shall be issued directly from Immigration Department and does not need the approval from Ministry of Labour & Social Affairs. In Dubai, it is required to deposit an amount of AED 10,000 to obtain investor visa and if the capital is less than AED 70,000 the deposit shall be AED 20,000. In Dubai, a professional licence holder is also eli-gible for Investor visa and the required deposit amount is AED 20,000. Residence Visa: A residence visa is required for those who intends to enter UAE for living indefinitely with a person who is already a resi-dent of the country. This type of visa is issued for wife whose husband or son/daughter whose parent is employed in UAE.

It should be noted that if the person who is a resi-dent of UAE stays more than six months period at a time out of the country his permit becomes invalid. Visa Requirement and Regula-tions for Visitors to DubaiAGCC CitizensCitizens of the Arab Gulf Co-operation Council member states (Bahrain, Kuwait, Qatar, Oman, Saudi Arabia) do not need a visa.AGCC ResidentsAGCC expatriate residents who meet certain con-ditions may obtain a non-renewable 30-day visa upon arrival at the approved ports of entry.Citizens of Western Europe and the Pacific RimCitizens of France, Italy, Germany, Holland, Bel-gium, Luxembourg, Switzerland, Austria, Sweden, Norway, Denmark, Portugal, Ireland, Greece,

Gen

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Cyprus, Finland, Spain, Monaco, Vatican City, Ice-

land, Andorra, San Marino, Liechtenstein, USA,

Canada, Australia, New Zealand, Japan, Brunei,

South Korea, Singapore, Malaysia, Hong Kong

(holders of Hong Kong Certification of Identifica-

tion may not obtain any type of visa to enter the

UAE) and UK Overseas Passport Holders born in

China or Hong Kong will be granted a free of

charge visit visa on arrival in the UAE. The visa

enables them to stay for 60 days. The visa may be

renewed once for a period of 90 days for a fee

of AED 500. Citizens of the UK (with the right of

abode in United Kingdom) are granted a free of

charge 30-day visit visa upon arrival in the UAE.

Entry Service PermitAn Entry Service Permit applies to the following

categories and their families accompanying them:

company managers, representatives, sales man-

agers, accountants, auditors, delegations from

companies or establishments to carry out a com-

mercial activity in the UAE, enquirers requested

by any of the establishments/companies operating

in the UAE assumed to carry out an urgent task.

Such visa is also availed to nationalities author-

ised to obtain a tourist visa, as per the Ministerial

Council’s decision. This visa is valid for use within

14 days from the date of issue. The duration of

stay is 14 days from date of entry, exclusive of

arrival and departure days. It is non-renewable.

The Entry Service Permit holder may enter and

depart the UAE through any airport.

Visit VisasThe Visit Visa applies to tourists who wish to

spend more than 14 days in Dubai, those coming

for family visits as well as those on long-term

business visits. It requires the sponsorship of any

UAE resident or any company or hotel licensed to

operate within the UAE. This visa is valid for entry

within two months from its date of issue. The Visit

Visa is valid for 60 days and is renewable for a

total stay of upto 90 days. A fee of AED 500 is

charged for this renewal. The Visit Visa holder

may enter and leave the country through any port

of entry in the UAE.

The Authority has recently amended visit visa

rules. Accordingly a visit visa will be issued for

three months for a fee of AED 600. It can be

renewed for an additional fee of AED 1,200 for

another three months, resulting in a total stay of

six months. Earlier, a visit visa cost AED 100 for

two months and could be renewed for another

month at a cost of AED 500. The visitor then

had to leave the country after 90 days and return

under a new visa. Now those who want to stay

for more than three months can remain for six

months at a total visa cost of AED 1,800. Under

the new regulation, the AED 600 must be paid

along with the application, and the visa will be

issued for three months, regardless of whether

the visitor stays for a month or more. However,

this rule does not apply to other types of entry

visas, including those issued to citizens of 33

countries who receive visit visas for 30 days upon

their arrival.

Tourist VisasA special category of visa under the Visit Visa

type is a Tourist Visa, which can be obtained for

individual tourists from: East and West Europe,

Turkey, Bulgaria, Poland, Ukraine, Albania, Russia,

the Hellenic Republic, St Kitts-Nevis, St Lucia,

Mexico, Cuba, Bermuda, Belize, Guyana, French

Guiana, Martinique, Antigua and Barbuda, Saint

Vincent, Kingston, Palao other non-defined Amer-

ican nationalities, Thailand, South Africa, Singa-

pore, China, Malta and Cyprus. The Tourist Visa

entitles its holder to a 30 day stay and is non-

renewable. The Tourist Visa requires the sponsor-

ship of hotels and tour operators who bring in

visitors from the above listed countries.

55Morison Menon

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Multiple-Entry VisasMultiple-entry Visas are availed to business visi-tors who have a relationship with either a multi-national or other reputable local establishments, and who are frequent visitors to the UAE. This type of visa is valid for six months from the date of issue and the duration of each stay is 30 days. The validity is non-renewable. The cost of this visa is AED 1,000. The visitor must enter the UAE on a visit visa and obtain the multiple entry visa while in the country. The visa would be stamped on the passport.Mission Entry VisaExpatriate doctors, engineers, lawyers and tech-nicians are entitled to obtain the newly introduced Mission Entry Visa, according to an Interior Min-istry’s decision. The visa will be issued to those who come for temporary jobs with the permis-sion of the Ministry of Labour and Social Affairs. It is issued for three months for a fee of AED 600 and can be renewed only once for another three months for an additional fee of AED 1,200, along with the permission of the labour ministry. Visas for 90 days are being issued to workers who are needed for special projects. Companies are clas-sified according to their size and performance. A quota is specified for each company and they will only be allowed to bring in a certain number of workers on the Mission Entry Visa. Workers brought in must be provided health care and paid sick leave by the company. The grace period for renewal or departure of a visitor on a 90-day visa will be seven days.Transit VisasThis is a special type of visa which applies to pas-sengers passing through UAE airports. The pas-senger can obtain a visa for up to 96 hours. The travel document will be stamped with an entry seal. The visa is only valid if the passenger is traveling onwards from UAE to another destina-tion and not returning to the country of original departure. Only airlines operating in UAE, as dis-tinctly from business, may apply for this type of transit visa. US CitizensUS citizens (tourists and businessmen) may apply

to the UAE embassies in US for a one to ten year multiple entry visa. A sponsor is required to grant such visas and the maximum duration of stay should not exceed 6 months per visit.German CitizensGerman citizens (tourists and businessmen) may apply to the UAE embassy in Germany for a one or two year multiple entry visa. No sponsor is required. The maximum duration of stay of visa holders should not exceed 3 months per year. The visa fee is AED 1,500.Streamlining Tourism Traffic between Dubai and OmanOman visitors (citizens of European Union coun-tries, Scandinavia, America, Canada, Australia, Japan, Hong Kong, New Zealand, South Korea, Taiwan, China, South Africa, Singapore, Malay-

sia, Switzerland, Indonesia and Iceland) can enter Dubai as a tourist group or individual through Hatta (by obtaining “Tourist Entry Permit”). Visi-tors can stay 30 days in Dubai from date of entry. Visa is free, non-renewable and no sponsor is required. Application is filled up through hotel or tour operator. Dubai visitors (citizens of European countries, former Soviet Union, America, Canada, Australia, Thailand, Japan, Hong Kong, South Africa, Sin-gapore, Malaysia and China) can visit Oman as a tourist group or individual through Al Seeb Inter-national Airport or Al Wajaja Centre (by obtain-ing “Tourist Joint Visa Statement”). Visitors can stay in Oman for 3 weeks. Visa is renewable for additional one-week stay, free and no sponsor is required. Application is filled up through hotel or tour operator.

Name of School Curriculum Location WebsiteThe British School- Al Khubairat

Abu Dhabi International (Pvt) School

Al Rayyan National Pvt School

Al Worood Academy

Our Own English High School

The American Community School of Abu Dhabi

The American International School in Abu Dhabi

The Cambridge High School

The Sheikh Zayed Private Academy for Girls

Abu Dhabi International (Pvt) School

Abu Dhabi Secondary School

Al Bateen Model School

Al Ma’ali International School

Al-Shomoo Private School

Emirates National School

Lycee Louis Massignon

The International School of Choueifat

Khalifa bin Zayed Secondary School

Lebanese International Private School (LIS)

Emirates Private Schools



Dubai American Academy

Al Khaleej National School

American School of Dubai

Arab Unity School

Cambridge International School

Delhi Private School

Dubai College

Dubai English Speaking School

Dubai International School

Dubai Russian Private School

Emirates International School

Horizon School

Jebel Ali Primary School

Jumeirah College

Latifa School for Girls

NIMS Group of School

British

British

British

American

CBSE

American

American

CBSE. IGCSE

UAE & Canadian

British, IGCSE

Arabic

Arabic

American, Arabic School

American

International Primary Curriculum

French school

SABIS

Arabic

Lebanese school

British, US, Egytian

SABIS

CBSE, IGCSE

American and IB

American

American

British

British

CBSE

British

British

UAE

Russian

IGCSE

British

British

British

British

CBSE

Abu Dhabi

Abu Dhabi

Abu Dhabi

Abu Dhabi

Abu Dhabi

Abu Dhabi

Abu Dhabi

Abu Dhabi

Abu Dhabi

Abu Dhabi

Abu Dhabi

Abu Dhabi

Abu Dhabi

Abu Dhabi

Abu Dhabi

Abu Dhabi

Abu Dhabi

Abu Dhabi

Abu Dhabi

Abu Dhabi & Al Ain

Al Ain

Al Ain

Dubai

Dubai

Dubai

Dubai

Dubai

Dubai

Dubai

Dubai

Dubai

Dubai

Dubai

Dubai

Dubai

Dubai

Dubai

Abu Dhabi, Al Ain

www.britishschool.sch.ae

www.aisuae.com

www.alrayyanschool.com

www.alworood.sch.ae

www.ooehs-dxb.sch.ae

www.acs.sch.ae

www.aisa.sch.ae

www.tchs-auh.sch.ae

www.zayedacademy.ac.ae

www.ais.sch.ae

www.abudhabischool.sch.ae

www.bateen.sch.ae

www.maali.sch.ae

www.shomointl.sch.ae

www.ens.sch.ae

www.llm.ae

www.iscad-sabis.net

www.khalifa.sch.ae

www.lebaneseschool.com

www.emips.sch.ae

www.iscalain-sabis.net


www.dubaiacademy.com

www.akns.net

www.asdubai.org

www.arabunityschool.com

www.tchs-dxb.sch.ae

www.dpsdubai.com

www.dubaicollege.org

www.dessdxb.com

www.dischool.com

www.russianschool.net

www.eischool.com

www.horizonschooldubai.com

www.jebelalischool.com

www.jc-dxb.sch.ae

www.lsg.sch.ae

www.nims.sch.ae

Schools


57Morison Menon

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Name of School Curriculum Location WebsiteOur Own English High School

Regent School

The English College

The Indian High School


The Millennium School

The Modern High School

The Westminster School

Al Diyafah High School

Al Imam Malik School

Al Mawakeb School

Al Rabee School

American Academy for Girls

Deira International School

Dubai American Scientific School

Dubai British School

Dubai Japanese School

Dubai Scholars Private School

Gulf Indian High School

Jumeirah Primary School

Kindergarten Starters

Lycee Libanais Francophone Prive

Modern Renaissance School

Our Own Indian School

Pakistan Islamia School

Pristine Private School

Rashid School for Boys

Saeed Ahmed Lootah Educational Institutions

CBSE

British

British

CBSE

SABIS

CBSE

ICSE

British, IGCSE

IGCSE

Arabic

UAE

Arabic School

American

British

American & Interna-

tional

British

Japanese

British

CBSE

British

CBSE

French

British

CSBE

Federal Board of

Intermediate and Sec-

ondary Education

British

British

Islamic studies

Dubai

Dubai

Dubai

Dubai

Dubai

Dubai

Dubai

Dubai

Dubai

Dubai

Dubai

Dubai

Dubai

Dubai

Dubai

Dubai

Dubai

Dubai

Dubai

Dubai

Dubai

Dubai

Dubai

Dubai

Dubai

Dubai

Dubai

Dubai


www.regentschooldxb.com

www.englishcollege.ac.ae

www.indianhighschooldubai.org

www.iscdxb-sabis.net:88

www.tms-dxb.sch.ae

www.modernhighschool.com

www.tws-dxb.sch.ae

www.diyafah.com

www.emammlk.sch.ae

www.almawakeb.org

www.almawakeb.org

www.aag.ae

www.disdubai.ae

www.dass.sch.ae

www.dubaibritishschool.ae

www.japanese.sch.ae

www.dubaischolars.com

www.gihs.sch.ae

www.jpsdubai.com

www.kgs-dxb.sch.ae

www.llfp.com

www.modernrensch.com

www.oois-dxb.sch.ae

www.pisf.sch.ae

www.pristineschool.com

www.rashidschoolforboys.sch.ae

www.lootah.com

The Apple International School

The Oxford School

The Sheffield Private School

The Winchester School

Towheed Iranian Boys’ School

United International Private School

Universal American School

Al Ahlia Charity School

NIMS Group of Schools

Australian International School


Fujairah Private Academy



Lycee Georges Pompidou

Montessori Private School


Sharjah American International School

Sharjah English School


Victoria English School

Wesgreen International School

& Greenbelt Nursery

Abu Dhabi Indian School

English School of Kalba

Lycee Georges Pompidou de Sharjah

School of Creative Science

Sharjah Model School



Name of School Curriculum Location Website

The Apple International School

The Oxford School

The Sheffield Private School

The Winchester School

Towheed Iranian Boys’ School

United International Private School

Universal American School

Al Ahlia Charity School

NIMS Group of Schools

Australian International School


Fujairah Private Academy



Lycee Georges Pompidou

Montessori Private School


Sharjah American International School

Sharjah English School


Victoria English School

Wesgreen International School

& Greenbelt Nursery

Abu Dhabi Indian School

English School of Kalba

Lycee Georges Pompidou de Sharjah

School of Creative Science

Sharjah Model School


British

British, IGCSE

British

British

Iranian school

Filipino

American

Arabic School

CBSE

Australian

CBSE, IGCSE

British

SABIS

CBSE

French

UAE

CBSE

American

British

SABIS

British

British

CBSE

British

French

British

Arabic School

CBSE

Dubai

Dubai

Dubai

Dubai

Dubai

Dubai

Dubai

Dubai

Dubai,

Dubai

Fujairah

Fujairah

Ras Al Khaimah

Sharjah

Sharjah

Sharjah

Sharjah

Sharjah

Sharjah

Sharjah

Sharjah

Sharjah

Sharjah

Sharjah

Sharjah

Sharjah

Sharjah

Sharjah

www.apple.sch.ae

www.oxford.sch.ae

www.sheffield-school.com

www.winchester.sch.ae

www.bi-st.com

www.uips.ae

www.uasdubai.ae

www.khalifa.sch.ae

www.nims.sch.ae

www.ais.ae


www.fpa.sch.ae

www.iscrak-sabis.net

www.dpssharjah.com

www.montessorischool.sch.ae


www.regentschooldxb.com

www.seschool.ae

ww.iscshj-sabis.net

www.victoria.sch.ae

www.wesgreen.net

www.adisuae.com

www.eskalba.com

www.lgp.ae

www.scs-sharjah.com

www.shjmodel.sch.ae

www.nims.sch.ae

Schools

59Morison Menon

Gen

eral

Info

rmat

ion

The creation of the new Dubai Education Council is an

indication of the commitment of the UAE’s vibrant busi-

ness center to integrating IT into education as the key to

maintaining a successful economy, as well as recogni-

tion of the need to modernise the education system. The

council has been established by the decree of His High-

ness Sheikh Mohammed bin Rashid Al Maktoum. The

Council’s board, comprising ten top educational and

cultural figures, is entrusted with the task of devising

an educational strategy that dovetails with the require-

ments of UAE society and the IT era. The Council is to be

funded through the allocation of 5% of the income from

the Palm and Jumeirah Residence projects in Dubai.

Dubai Schools – Internationally AccreditedDubai Schools is a new initiative by the Dubai Edu-

cation Council that will focus on the development of

branches of international schools and new schools

that meet the quality and accreditation standards

of some of the best schools in the world.

Dubai Knowledge Universities [Dubai Academic City] Dubai Knowledge Universities, a strategic initiative of

Dubai Knowledge Village provides a ready start-up

campus, allowing universities to incorporate themselves

into the market in their first few years of opening with-

out heavy investment of building their own infrastruc-

ture.

Dubai Academic City (DAC) is the next stage of devel-

opment of Dubai Knowledge Village after its successful

launching of Dubai Knowledge Universities, phase I & II.

DAC will provide its universities to mature and construct

their own campuses for a permanent presence in the

region. DAC shall be situated on 150 million sq. feet area

comprises student dormitories, sports stadium, accom-

modation and other amenities. It is expected DAC shall

house at least 25 universities with more than 36,000 stu-

dents.

University Licensing: A university licence is issued to the

branch of reputed and ranked international universities/

colleges or to universities/colleges accredited by the

higher education authority in the UAE.

60

Dubai Education Council

Accreditation: A university licence is issued after deter-

mining the rating of the program provided by the insti-

tution in its respective country. In addition the program

must be accredited by a government body or an auton-

omous body constituted by the federal government

or an industry (incase of technical courses) or pro-

fessional association (in case of professional courses).

Minimum factors being considered while evaluating an

institution are : curriculum, learning, student evaluation

process, teaching, research, learning resources, con-

sultancy, infrastructure, student support, organization

and management practices.

University Classification: Universities conducting grad-

uate and postgraduate education program are cate-

gorized as: (1) Category–A: Up to 1000 student; (2)

Category-B: Up to Apprx 3000 students and (3) Cate-

gory-C: Above 5000 students.


Gen

eral

Info

rmat

ion

Name of the University Location Website

Institutions for Higher Education in UAE

Abu Dhabi Petroleum University

Ajman University Of Science & Technology

American Inter Continental University

American University in Dubai

American University of Sharjah

Arabic University College

Dubai Polytechnic

Al Ghurair University

Islamic Studies Department - Preston University

Ittihad University

UAE University

University of Law

University Of Sharjah

University Of Wollongong - Dubai

World Al Lootah University

Zayed University

BEAMS International Educational Institute

Dubai Medical College for Girls

Dubai University College

e-TQM College

Emirates Aviation College

Emirates Training College

Etisalat College of Engineering

Gulf Medical College

Higher Colleges of Technology

Hospitality Management College

The Islamic College

Sharjah College

Skyline College Sharjah

MAHE, Manipal

BITS, Pilani

Middlesex University

Islamic Azad Univeristy

Shaheed Zulfikar Ali Bhutto Institute of Science

& Technology

Mahatma Gandhi University

Heriot Watt University

Dubai Men’s Colleges

London School of Economics

Dubai Women’s College

S P Jain Center

Emirates Institute of Hospitality Management

Dubai Institute of Business Management

Abu Dhabi

Ajman,Abu Dhabi, Al Ain , Fujairah

Dubai

Dubai

Sharjah

Sharjah

Dubai

Dubai

Ajman

Ras Al Khaimah

Al Ain

Sharjah

Dubai

Dubai

Abu Dhabi, Dubai

Dubai

Dubai

Dubai

Dubai

Dubai

Sharjah

Ajman

Al Ain, Abu Dhabi, Sharjah, Dubai

Ras Al Khaimah, Fujairah

Dubai

Dubai

Sharjah

Sharjah

Dubai

Dubai

Dubai

Dubai

Dubai

Dubai

Dubai

Dubai

Dubai

Dubai

Dubai

Dubai

Dubai

www.pi.ac.ae

www.ajman.ac.ae

www.aiustudyabroad.com

www.aud.edu

www.aus.ac.ae

www.geocities.com

www.agu.co.ae

www.islamicstudiespu.com

www.ittihad.ac.ae

www.uaeu.ac.ae

www.jurists-uae.org

www.sharjah.ac.ae

www.uowdubai.ac.ae

www.lootah.sch.ae/

www.zu.ac.ae

www.beamscollege.com

www.dmcg.edu

www.duc.ac.ae

www.etqm.net

www.dac.ac.ae

www.emiratestraining.com

www.ece.ac.ae

www.gmcajman.com

www.hct.ac.ae

www.hospitality-management

-college.com

www.islamic-college.co.ae

www.shjcollege.ac.ae

www.skylinecollege.info

www.mahedubai.com

www.bitsdubai.com

www.mdx.ac.uk/dubai

www.iau.ae

www.mgudxboc.com

www.hwud.com

www.dbm.hct.ac.ae

www.iitmedu.ae

www.dwc.hct.ac.ae

www.spjaindubai.org

www.emiratesacademy.edu

www.dibm.ae

61Morison Menon

62

1. Issuance1.1 Department of Economic DevelopmentInitial ApprovalBooking a trade nameProfessional/Trade/Industrial Licence regnGeneral TradingBuilding ContractingService agent (annually)Licence printing

1.2 Dubai MunicipalityA. Market Feescommercial+professional+IndustrialBanks Private propertyAccomodation fees (non UAE nationals)Waste fees

5% of the rent15% of the rentAs per committee decision5% of the rentAs per the report of the waste section

B. Service Improvement feesLocal onlyLocal+partner (professional + industrial)Local+partner (commercial)Banks+hotels+furnished apartments

100300500

1000

C. Local FeesLocal onlyLocal+partner (professional + industrial)Local+partner (commercial)Banks+hotels+furnished apartments

100150200200

1.3 Ministry of EconomyLimited Liability CompaniesPartnershipBranch

300030001000

2. Renewal2.1 Department of Economic Develop-mentProfessional/trade/industrial licence reg-istrationGeneral TradingBuilding contracting

550

3000

30003000

2.2 Dubai MunicipalityThe fees mentioned in item 1-2 in addi-tion to labour fees

3. Amendments3.1 Department of Economic DevelopmentEach amendmentAdvertisement feesLicence printing

50050050

3.2 Dubai MunicipalityDifference in market fees (Change of location)Accomodation fees (new partner/manager)-non UAE nationals

5% of the rent

10003.3 Ministry of EconomyAmendment

10001000

4. Cancellation4.1 Department of Economic Devel-opmentCancellation feesAdvertisement fees

4.2 Dubai MunicipalityFees in item 1-2 above for all licences cancelled after 6 months of their expiry date

5. Other FeesRegistration delay penalty (monthly)Foreign trade name (annually)Trade name for trade mark/franchise (annu-ally)Trade name that indicates the firm’s cov-erage (e.g. Middle east, International etc.) (annually)Trade name including abbreviation (annually)Trade name including words such as “Dubai”, “UAE.”, or “Gulf ” (annually)Trade name including number (annually)Trade name including Arabized wordsTranslation of licence/ Comercial registrationRepresentative cardUrgent transactionCancellation of transactionCertificate to whom it may concernActivity classification bookBooklet (Group related activities-Fees FAQ)Extract from the fileDuplicate copy of licence/commercial regis-trationAdvertisement of shop mortagageForgery penaltyBounced cheque penalty(Minimum AED 1000)

20020001000

1000

20002000

20001000250

1000500500100501050

550

3,50015,00010% of

the cheque amount

Dept of Economic Development, Dubai - License fee particulars

110200550

15,00010,000

70050

AED

AED

AED

AED

AED

AED

AED

AED

AED

M o r i s o n M e n o n64


FREE TRADE ZONES IN UAEThe UAE, being considered as the home of free trade zones in the Middle East, is a model country to show how it could achieve the current enviable economic benefits by establishing number of Free Trade Zones. The country’s economic indexes show the industrial upswing due to its flourishing Free Zones. The Free Zones in UAE could generate abundant employment opportunities, massive direct foreign investment, caused to develop various infrastructures etc. Free Trade Zones offer various incentives to investors, such as:

Jebel Ali Free Zone (JAFZA)Dubai Gold and Diamond ParkDubai Maritime CityDubai Aid CityTechno ParkDubai Airport Free ZoneDubai Silicon OasisDubai Flower CentreDubai Logistics CityDubai Internet CityDubai Media CityDubai Knowledge VillageDubai Outsource ZoneDubai Biotechnology and Research ParkDubai Studio CityInternational Media Production ZoneDubai Healthcare CityDubai International Financial CentreDubai Multi Commodity ExchangeDubai Textile CityDubai Carpet Free ZoneDubai Auto Parts CityHeavy Equipment and Trucks ZoneDubai Building Materials ZoneDubai Cars and Automotive Zone

The Corporate Office (TCO)

Dubai Technology and Media Free Zone Authority / Dubai Holdings

[Covered in Part 2][Covered in Part 2]

Al Awir Free Zones

Sharjah Free Zones

Upcoming Free Zones

Sharjah Airport International Free Zone (SAIF-Zone)Hamriyah Free Zone Ajman Free ZoneAhmed Bin Rashid Free Zone (Umm Al Quiwain)Ras Al Khaimah Free Zone (RAK Free Zone )Fujairah Free Zone

• Exemption from all taxes and duties levied on profits or production

• No restrictions on profit transfer or capital repatriation

• No customs duties• Attractive working environment• Exemption from corporate, withholding and

inheritance taxes

• No personal income tax• No currency restriction• No recruitment restriction • Modern efficient communication system• State-of-the-art infrastructure• Abundant Energy

Dubai Design Centre (TCO)Dubai Auto Zone (TCO)Dubai Energy City (Dubai Holdings)Industrial City of AbuDhabi (HCSEZ)Dubai Academic City( Dubai Holding)

Currently there are 36 Free Trade Zones (Existing & Proposed) in UAE viz..

Location

Established

Distance

Size of the Zone

Dubai-U.A.E

1985

40 Kms from Dubai International Airport

100,000,000 s.q. mtrs (Free Zone North);

50,000,000 sq. meters (Free Zone South)

Facilities Offered Office Units Warehouse/Light Industrial Units Plot of land

StandardUnit

26.88 m2

Multi-Storeyed

No Space restriction

TotalArea556 m2313 m2

Warehouse/LIU Area 510 m2267 m2

Office Area46m246m2

Minimum 2500m2

Rent Per Annum

Lease Period One year, annually renewable One year, annually renewable Upto fifty years

US$12,272(AED45,000)

US$ 491-600/m2(AED1,800-2,200per sq. meter)

US$ 5.45 – 21.82/m2(AED 20-80) per sq. meter

US$ 53,177US$ 59,995 [for high power](AED 220,000)

(AED 195,000)

US$ 32,724 (AED 120,000)

Possible Legal Entities

Capital-cashphysicalNo. of ShareholdersFormation Fee

Branch of a ForeignCompany(Including OffshoreCompany)

None

-US $1,364

(AED 5,000)

Branch of a UAEcompany

None

-US $1,364

(AED 5,000)

Free ZoneEstablishment

(FZE)

US$ 272,703(AED 1,000,000)

OneUS $ 2,727

(AED 10,000)

Free ZoneCompany(FZCO)

US$ 136,352(AED 500,000)Min 2, Max 5US $ 4,091

(AED 15,000)

Types of licenses issuedLicense fee

Trading

US $ 1,500(AED 5,500)

*General Trading

US $ 8,187(AED 30,000)

Service

US $ 2,182(AED 8,000)

Logistics(Service)

US $ 8,187(AED 30,000)

Industrial

US $ 1,500(AED 5,500)

NationalIndustrial

US $ 1,500(AED 5,500)

Business Segment

Port facilities

Visas

Time span to form companyOther Info

Number of activities is restricted.*General Trading Licence is issued only on a case-to-case basisA company can obtain additional licence with different activities and operate under different name.Jebel Ali Port, Port Rashid, Dubai Airport:Pre-built office; 4 Nos :Multi-storeyed: Depends on space leased (80 sq.ft per person):Pre - built warehouse : 20 nos:Facility on leased land : Depends on requirement and subject to EHS compliance

20-30 daysSublease of leased land is allowed for sister company/s provided the existing company or shareholder is the major shareholder in the sub-lessee company. JAFZA charges an annual fee of US $ 5,454 (AED 20,000) for sub-lease. Warehouse units and Buildings Constructed on leased land are subject to a Public Health Levy which is charged at 2% on annual rental at a maximum of AED 10,0005% of office and warehouse rental is charged as one time deposit. For factories fee for Industrial Effluent Disposal shall be US$ 6,812 (AED 25,000) for the first connection, then calculated at US$ 1.4 (AED 5.00) per 1000 imperial gallons, for discharge into the marine environment using Free Zone drainage lines.Industrial licence holding companies should hold separate licence for trading activity.JAFZA has created 8 industry specific zones in the South Zones viz., Dubai Distribution Centre, Digital Valley, Construction Square, Pharma-Med Park, Chemical & Plastic Field, Paper Pack Zone, Fragrance & Beauty Park, Food & Beverage Park.

JEBEL ALI FREE ZONE

66

Jebel Ali Free Zone

Legislative AuthorityDate of EnactmentCompany StatusShareholdersSuffix to the NameCapital StructureCorporate CapacitySharesAdministrationDirectorsSecretaryActivities Allowed

Activities Restricted

Registration

Registration FeeAnnual RenewalWinding up

IncorporationDocuments

JAFZA Offshore Company Regulations 200315 January 2003Limited LiabilityMinimum 1 and no maximum [individual/corporate]‘Limited’Decided by shareholdersHas the capacity and privileges of a natural personMust be fully paid when allotted; No bearer shares allowed; No different classes of shares Must have a Registered Agent approved by JAFZA;Regd office may be in JAFZ or in DubaiMinimum two directorsMust have a SecretaryProfessional contact with legal consultants, lawyers, accountants and auditorsTo hold shareholders’ and directors’ meetings in the UAE.To own real property developed by Nakheel, Emaar or any other developers approved by the Authority.To hold an account in a bank in the UAE for the purpose of conducting its routine operational transactionsTo engage in General Trading [Out of UAE]To engage in commercial, industrial, agricultural and activities considering and observing international rules and regulations and statute law of country where the company operates its activity including international trading, investment and other related activitiesTo open branch offices or representative offices in any part of the world.To become a shareholder in a Limited Liability Company to be formed in Dubai/UAE.To carry on the business as an investment holding outside UAETo become a shareholder in an entity which may be formed either in UAE or UAE Free ZonesTo carry on business with persons resident in the UAE.Own an interest in the real property situated in the UAE other than approved by the Authority. To carry on banking, financial, insurance, re insurance, insurance agent or insurance brokerTo carry out any trade in the free zone or in the UAE.To carry on Professional services, Consulting services, Intellectual property, Media, Security, Publishing, Advertising, Movie, Production, Management, Gambling, Casino, Property Development, Game & Win, Advisory, Real Estate, Military, EducationThe Registrar is the final authority to accept or reject the registration. Upon registration, an offshore company registration number will be allotted and registration certificate will be issuedUS$ 2,727 (AED 10,000)Registration must be renewed annually; Renewal Fee is US$ 682 (AED 2,500)Summary under chapter 1 of Part 13 of the Regulation;By its creditors under chapter 2 Part 13 of the Regulation;By the court under the UAE Commercial Transactions Law No.18 of 1993.Incorporation CertificateMemorandum and Articles of AssociationList of Directors [addressed to an institution (bank) as per request]

JEBEL ALI FREE ZONE OFFSHORE COMPANY [JAFZA OFFSHORE]


67Morison Menon

JEBEL ALI FREE ZONE OFFSHORE COMPANY (Jafza Offshore)

68

LocationEstablishedDistanceSize of the ZoneFacilities Offered

Zones in DMC

Dubai [located between Port Rashid & Dubai Dry Drocks]200310 Kms from Dubai International Airport25,000,000 sq. feet, man made peninsulaCommercial, Office, Warehouse, Land, Workshop, YardOption of Freehold and LeaseholdCommercial Area, Leisure Area, Repair Area, Research and Academy Area

DUBAI MARITIME CITY

Business Segments

VisasTime span to form companyOther Info

Types of companies which can be formed

Capital-cash physical

No. of ShareholdersFormation fee

Branch of a Foreign Company

(Including Offshore Company)

None

(AED 5,000)US$ 1,364 US$ 1,364

(AED 5,000)

-

Branch ofa UAE

Company

None

-


US$ 136,352(AED 500,000)Min 2, Max 5US $ 4,091

(AED 15,000)


(FZE)

US$ 272,703(AED 1,000,000)

OneUS $ 2,727(AED 10,000)

Shipping ServicesMarine management servicesMarine related marketing

Marine research & educationMarine recreational servicesDesign and manufacturing

Ship Classification, Ship Catering, Ship SuppliesShip Safety & Damage Assessment, Insurance, Legal Businesses,Vessel Registration & Global Inspection Marine Exhibition, Trade shows and exhibitions, Media Information Groups, World Media Relations, Ship ShowsMarine Academy, Naval Museum

Marine Merchandise Selling, Buying and Renting,Other attractions like a Divers CenterShip Designers & Manufacturers, Ship repair and maintenance,. Ship modification

Depends on the facility leased/purchased.

30 days

Currently licences are issued on a case to case basis and allowed to operate in Dubai. The investors must transfer their operation to DMC once the facilities are ready.

Type of licence issued Service

Licence fee US$ 1,500 (AED 5,500)

Dubai Maritime City

LocationEstablishedDistanceSize of the Zone

Dubai-U.A.EMay 200120 Kms from Dubai International Airport522,070 Sq. feet [Phase I: 167,885 sq. ft] & Phase II: 354,185]

DUBAI GOLD & DIAMOND PARK


Business Segments

OwnershipVisasCompany formation periodOther Info

FacilitiesOfferedRental per annum

Lease Period

Pre-builtmanufacturing unit

(1000 sq .feet)

Office Units[740 sq. ft –

Show Rooms[6500 sq. ft – 9,300

sq.ft]

Trading Licence

US $ 1,500 (AED 5,500)

Manufacturing Licence

US $ 1,500 (AED 5,500)

Gold and diamond trading;Designing, manufacturing and crafting of gold and diamond jewellery.Unlike other free zones Gold & Diamond Park offers retail-shopping facility for shoppers.100%Depends on the size of the space leased. 5 - 10 days

Registration, Licencing and visa formalities with respect to an entity are controlled by JAFZA.Facilities of the park are managed by Emmar Properties.

Branch of a Foreign

Offshore Company)None

-

None

Branch of a UAECompany

None

-

None

Possible Legal EntitiesCapital-cashphysicalNo. of Shareholders

Formation Fee

FZG(Single/Multiple Shareholding)

US $ 27,270(AED 100,000)

Minimum One Shareholder. If more than one shareholder the capital can be divided as

US $ 13,635 (AED 50,000 each).None

Retail Outlets[288 sq. ft – 1,164 sq.ft]

US $ 68.20 per sq. foot (AED 250) plus

service charges

One year, annually renewable




US $ 84.55 per sq. foot (AED 310)

US $ 49.30 per sq. foot (AED 180)

US $ 41 per sq. foot(AED 150)

plus service charges

(IncludingCompany

2,300 sq.ft]

70

Dubai Gold & Diamond Park



Adjacent to JAFZA, Dubai-U.A.E200340 Kms from Dubai International Airportphase I : 1,000,000 sq.meterphase II : 1,000,000 sq.meter

DUBAI AID CITY [PCFC]

Facilities OfferedRent Per AnnumLease Period


Capital-cashphysicalNo. of Shareholders

Formation Fee



None-

US $ 1,362 (AED5,000)

Branch of UAE

Company

None-

US $ 1,362 (AED5,000)

Free ZoneEstablishment(FZE)

US$ 273,224(AED 1,000,000)

One

US $ 2,727 (AED 10,000)

Free Zone Company(FZCO)

US$ 136,612(AED 500,000)

Minimum 2Maximum 5US $ 4,091

(AED 15,000)

Business SegmentsPort facilitiesVisasTime span to form companyOther Infos

Activities related to humanitarian and charitable aid.Jebel Ali Port, Port Rashid, Dubai Airport, Jebel Ali AirportVisas are issued according to requirements10-20 days

Dubai Aid City will also offer facilities for cool and cold storage for sensitive food and medical supplies, in addition to dry cargo facilities. Aid agencies can enjoy access to warehousing, office facilities and distribution solutions at dedicated areas in Jebel Ali Port - JAFZA and Port Rashid - Dubai City

Types of LicensesIssued

License fee

Trading/Services

US $ 1,500 (AED 5,500)

Office Units[Rate to be announced]


Pre-built warehousing & storage areas[Rate to be announced]


71Morison Menon

DUBAI AID CITY


Dubai-U.A.ENovember 1996Adjacent to Dubai International Airport1,200,000 s.q. mtrs

DUBAI AIRPORT FREE ZONE

Facilities Offered

Rental Per Annum

Lease Period

Branch of ForeignCompany

None

None None

-

Branch of UAECompany

None

-

Free ZoneCompany (FZCO)

US$ 136,352(AED 500,000)Min 2, Max 5US $ 4,091

(AED 15,000)


Possible Legal EntitiesCapital-cashphysicalNo. of ShareholdersFormation Fee

Trading

US $ 2,727(AED 10,000)

Service

US $ 2,727(AED10,000)

Industrial

US $ 2,727(AED10,000)

Business Segments

Port facilitiesVisas

Company formation period

Dubai Airport, Port Rashid, Jebel Ali Port4 visas for 50m2 office and 20 visas for LIU. However, no restriction for industrial/assembly units operating in leased land as required by the activity.30 days

US $ 35.45/m2(AED 130/m2)

15 years, renewable every

15 years

Two years, renewablefor similar period



Free ZoneEstablishment (FZE)

US$ 272,703(AED 1,000,000)

OneUS $ 2,727 (AED 10,000)

Warehouse[Area of Unit 350 m2 -]

Light Industrial Unit [Area of Unit

350 m2]

Offices [Minimum 50 sq. meters; no space restriction]

US $ 545/m2(AED 2000/m2)[plus 7% service

charge]

US $ 191/m2(AED 700/m2)

[plus 5% service charge]

US $ 164/m2(AED 600/m2)

[plus 5% service charge]

Land[Minimum2500 m2]

Licences are issued based on investor’s business activities. Number of activities is restricted to two. Any additional activity requires a fee payment of AED 3,000 per activity.No General Trading Licence is issued. However, a company can obtain an additional licence provided minimum office space leased is 100 sq meters. Companies can opt renewing the licence for a period of one or three years subject to payment made full in advance.FZCO is required to pay an amount of US$ 818(AED 3,000) as annual good standing fee.

72

Dubai Airport Free Zone (DAFZA)

Location

EstablishedDistanceSize of the Zone

Dubai-U.A.E at the intersection of Emirates Road & Dubai - Al Ain Road2004Dubai-Al Ain Road.17 kms from Dubai International Airport



Formation Fee

Branch of Foreign Company


None

-

None

Branch of a UAE Company

None

-

None


(FZE)

US$ 272,703(AED 1,000,000)

One

US $ 2,727(AED 10,000)


US$ 136,352(AED 500,000)


(AED 15,000)

DUBAI SILICON OASIS (DSO)

Facilities Offered(Leasehold and Freehold)

Rent Per Annum

Lease Period

Office UnitsMinimum space available is 500 sq. feet

( No space restriction )

Rate is decided by the Management Rate is decided by the Management

3 Years – renewable

Plot of land10,000 m2 and above

Warehouses & Light industrial unit

Up to fifty years

Types of licenses issued

License fee

Business Segments

Visas


Other Info

R&D, Design, Development & Manufacturing of integrated Circuits, Microelectronics, Optoelectronics and related activities.

1 employee visa per 100 sq of office space, additional visas would be issued based on requirement and justification.

Dubai Silicon Oasis (DSO) is a strategic Project of the Dubai Government. A world class Semiconductor and Microelectronics technology park, it is attracting IC design, development and manufacturing companies focusing on the areas of Photovoltaics, Micro, Nano and Opto-electronics. In addition, DSO is creating a thriving urban master-planned community consisting of educational, commercial and residential areas. Working with global technical universities & institutes, DSO is taking a leading role in the region in creating a highly talented engineering workforce. As an established Free Zone, DSO offers a highly competitive infrastructure and outstanding logistics ensuring success for its hi-tech partner companies.

30 days

Trade License

US $ 4,091(AED 15,000)

Service License

US $ 4,091(AED 15,000)

Industrial License

US $ 4,091(AED 15,000)


73Morison Menon

Dubai Silicon Oasis (DSO)


Dubai-U.A.E, (Close to Dubai International Airport)October 2005[became operational]Adjacent to Dubai International Airport32,000 sq. meters [Phase I – 10,000 sq. meters]

DUBAI FLOWER CENTRE (DFC)

Facilities OfferedWarehouse Chambers

Office Units Business Units

Rental Per Annum

Lease Period 3 years, renewable for similar period

3 years, renewable for similar period

3 years, renewable for similar period

3.5% service charge is also applicable 3.5% service charge is also applicable

<200 sq. mers:US $ 250/m2 (AED 917) per m2

>201 sq. meters:US $ 220/m2(AED 807) per m2


None-

None

Branch ofUAE Company

None-

None


US$ 136,352(AED 500,000)


(AED 15,000)


Possible Legal EntitiesCapital-cashphysicalNo. of Shareholders

Formation Fee

Trading

US $ 2,727(AED 10,000)

Service

US $ 2,727(AED 10,000)

Industrial

US $ 2,727(AED 10,000)

Business Segments



Processing and trading of Flowers, Fruits and Vegetables

Dubai Airport, Port Rashid, Jebel Ali Port4 visas for 50m2 office. However, no restriction for processing units operating in warehouse chambers as required by the activity.30 days

[150 m2 to 577 m2]

US $ 350/m2(AED 1,284)

US $ 500/m2(AED 1,834)

Free ZoneEstablishment(FZE)

US$ 272,703(AED 1,000,000)

One

US $ 2,727(AED 10,000)

74

Dubai Flower Centre (DFC)



Dubai-U.A.E200540 Kms from Dubai International Airport25 square kilometres; [DLC is part of 140 sq. km Jebel Ali Airport City (World Central)project]

Facilities

Size of Plots

Rent Per Annum

Lease Period





None-

To be announced

Branch ofUAE

Company

None-

To be announced


(FZE)

US$ 272,703(AED 1,000,000)

OneTo be announced


US$ 136,352(AED 500,000)

Min 2,Max 5To be announced

Business Segments

License fee To be announced

Warehousing, Distribution, Cargo Handling, Contract Logistics Services, Cargo Airline Operators Trading, Assembly/Light Manufacturing preferably from automotive, electronics, consumer goods, healthcare and life science, aviation, energy, machinery are encouraged


Other Info The unique feature of DLC is it combines with the airport, the seaport and the free zone into a single customs bonded area. *Upto 50% of the currently used plot size can be reserved adjacent to the existing plot at 25% of the existing rental rate per sq. meter for maximum of 2 years. *An amount of AED 10 per sq. meter is payable as development charge.Companies can rent office space in one of the centrally located DLC Office building to support customer front end and administration services or services for DLC Clients

Jebel Ali International Airport, Jebel Ali Sea Port, Port Rashid, Dubai AirportVisas are issued according to requirement & facility leased.

*Plot of Land for Forwarders5000 sq. meters & above

US$ 6.82 (AED 25) 5000&above US$ 5.45 (AED 20)10000&above

*Plot of Land for Industry and Logistics2500 sq. meters & above

US$ 8.20 (AED 30) 2500&aboveUS$ 6.82 (AED 25) 5000&above US$ 4.92 (AED 18)10000&above US$ 4.10 (AED 15) 20000&above

5-20 years; renewal for similar period

[Long term lease of 10 years or more subject to rental

review every 5 years]

5-20 years; renewal for similar period

[Long term lease of 10 years or more subject to rental review every 5

years]

One year; annual renewable

DLC Shared Warehouses50 sq. mts to 1000+sq. mtrs[with offices on upper floor]

Rate to be announced

75Morison Menon

DUBAI LOGISTICS CITY (DLC)

LocationEstablishedDistanceSize of the ZoneRegulated by

Dubai-U.A.E200325 Kms from Dubai International Airport1,000,000 sq. feetDubai Technology and Media Free Zone Authority

Branch of a ForeignCompany

(Parent company should be in existence for

minimum 2 years)

None-

US $ 955(AED 3,500)

Branch of a UAECompany including Entities established in other UAE Free

Zones

None-

US $ 955(AED 3,500)

FZ LLC(Multiple

Shareholding)Value per share is US $ 273 (AED 1,000)

* US$ 13,635(AED 50,000)Minimum Two

US $ 955(AED 3,500)


License fee



Formation Fee

Business Segments

VisasCompany formation periodOther Info

Education Partners, International Universities, Management Development Centre, Online Academic Institutions, Academic Service Provider, eLearning Provider, HRD Centre, Professional Training Centre, Innovation Centres Testing Centre etc. Depends on the size of the space leased. Executive Office is eligible for maximum 3-4 visas.

30 days

Entity operating in Open Office/ Executive Office/Executive Suite requires to pay a Joining Fee of US$ 1,364 (AED 5000) and a refundable Security Deposit of US$ 1,364 (AED 5,000)/US $ 2,728 (AED 10,000)/US $ 4,091(AED 15,000) respectively.Freelance Permit allows an individual to operate as a sole practitioner and enables him to conduct the activity in his birth name as opposed to brand name. Fee for Freelancer licence is US$ 2,182 (AED 8,000) which includes fee for processing residence visa.Academic Institute license is provided to the Branch of reputed and ranked International Universities and Colleges. Academic Institute license is provided after determining if the program provided by the institute is a top ranked program in their respective country and if the program is accredited by a top accrediting body. Academic Institute license holders are responsible for the curriculum, faculty, examinations and administration of the campus. The application for the Academic Institute license should be accompanied by an academic plan An Academic Institute is eligible to apply for the student visa. Student visa holder is not eligible to work. In case a student is found working while on being on a student visa, the university would be held liable for the student’s action.* Capital amount shown above is only minimum indicative figure and can vary according to project outlay

FZ LLC(Single Shareholding)Value per share is US $ 273 (AED 1,000)

* US$ 13,635(AED 50,000)

OneUS $ 955

(AED 3,500)

Facilities Offered

Rental per annum

Lease Period

Commercial Spaces(No space restriction)

US $ 32.75 (AED 120)/ per sq. footOne year, annually

renewable

Executive Offices [Business Centre]Availability is in

between 100 to 250 sq ft)

US $ 95 /sq. foot(AED 350)


Executive Suite[Business Centre]

US $ 76.36/ sq. foot(AED 280)


Open Office [Business Centre]

US $ 4091(AED 15,000)


General Segments

US $ 4,091(AED 15,000)

University Segments[Offer Graduate Courses]

US $ 13,635(AED 50,000)

University Segments[Offer both Graduate and Post Graduate Courses]

US $ 27,270(AED 100,000)


Dubai-U.A.EJanuary 200025 Kms from Dubai International Airport4,000,000 sq. metersDubai Technology and Media Free Zone Authority

DUBAI INTERNET CITY (DIC) [Member of Dubai Holdings]



minimum 2 years)


Zones

FZ LLC(Single

Shareholding)Value per share is US $ 273 (AED1,000)

FZ LLC(Multiple

Shareholding)Value per share is US $ 273 (AED1,000)

None

-US $ 955

(AED 3,500)

None

-US $ 955

(AED 3,500)

*US$ 13,635(AED 50,000)

No RestrictionUS $ 955

(AED 3,500)



Capital-cashphysical

No. of ShareholdersFormation Fee

According to the DIC Segments

US $ 4,091 (AED 15,000)

Business Segments

VisasCompany formation period

Other Info

Web Based, Back Office, Consultancy, IT Support, Software Development, Business Services.Depends on the size of the office space leased. 30 days

*Capital amount shown above is only the minimum indicative figure and can vary according to project outlay.First Step at DIC enables new investors to explore the business opportunities by leasing office space for a short-term period. This helps the companies to test the viability of the plan before setting up a full-fledged operation unit. However, short term lease in First Step does not qualify the company for a Trade Licence.

Office UnitsMinimum space available is 700 sq. feet

(No space restriction)US $ 32.75 (AED 120)/ per sq. foot


Plot of land(Different Sizes)

Subject to Mgt decisionUp to fifty Years

One

*US$ 13,635(AED 50,000)

US $ 955(AED 3,500)

Facilities Offered

Rental Per Annum

Lease Period

76

Dubai Internet City (DIC) [Member of Dubai Holdings]


Dubai-U.A.E200325 Kms from Dubai International Airport1,000,000 sq. feetDubai Technology and Media Free Zone Authority



minimum 2 years)

None-

US $ 955(AED 3,500)


Zones

None-

US $ 955(AED 3,500)

FZ LLC(Multiple



US $ 955(AED 3,500)


License fee



Formation Fee

Business Segments

VisasCompany formation periodOther Info

Education Partners, International Universities, Management Development Centre, Online Academic Institutions, Academic Service Provider, eLearning Provider, HRD Centre, Professional Training Centre, Innovation Centres Testing Centre etc. Depends on the size of the space leased. Executive Office is eligible for maximum 3-4 visas.

30 days

Entity operating in Open Office/ Executive Office/Executive Suite requires to pay a Joining Fee of US$ 1,364 (AED 5000) and a refundable Security Deposit of US$ 1,364 (AED 5,000)/US $ 2,728 (AED 10,000)/US $ 4,091(AED 15,000) respectively.Freelance Permit allows an individual to operate as a sole practitioner and enables him to conduct the activity in his birth name as opposed to brand name. Fee for Freelancer licence is US$ 2,182 (AED 8,000) which includes fee for processing residence visa.Academic Institute license is provided to the Branch of reputed and ranked International Universities and Colleges. Academic Institute license is provided after determining if the program provided by the institute is a top ranked program in their respective country and if the program is accredited by a top accrediting body. Academic Institute license holders are responsible for the curriculum, faculty, examinations and administration of the campus. The application for the Academic Institute license should be accompanied by an academic plan An Academic Institute is eligible to apply for the student visa. Student visa holder is not eligible to work. In case a student is found working while on being on a student visa, the university would be held liable for the student’s action.* Capital amount shown above is only minimum indicative figure and can vary according to project outlay


* US$ 13,635(AED 50,000)

OneUS $ 955

(AED 3,500)

Facilities Offered

Rental per annum

Lease Period

Commercial Spaces(No space restriction)

US $ 32.75 (AED 120)/ per sq. footOne year, annually

renewable

Executive Offices [Business Centre]Availability is in


US $ 95 /sq. foot(AED 350)


Executive Suite[Business Centre]

US $ 76.36/ sq. foot(AED 280)


Open Office [Business Centre]

US $ 4091(AED 15,000)


General Segments

US $ 4,091(AED 15,000)

University Segments[Offer Graduate Courses]

US $ 13,635(AED 50,000)

University Segments[Offer both Graduate and Post Graduate Courses]

US $ 27,270(AED 100,000)


77Morison Menon

Dubai Knowledge Village (KV) [Member of Dubai Holdings]


Dubai-U.A.EJanuary 200125 Kms from Dubai International Airport300,000 sq. metersDubai Technology and Media Free Zone Authority



minimum 2 years)

None-

US $ 955(AED 3,500)


Zones

None-

US $ 955(AED 3,500)




Formation Fee

Publishing Licence

US $ 5,454(AED 20,000)

BroadcastingLicence

US $ 6,818(AED 25,000)

Other Licences

US $ 4,091(AED 15,000)

Business Segments:

VisasCompany formation period

Others

Broadcasting, Production, Advertising, Public Relations, Recruitment, Music, Publishing,Business Consultancy, News Agency, Post-production, Research etc.

Depends on the size of the office space leased. Executive Office is eligible for maximum 3-4 visas. 30 days

Entity operating in Media Business Centre Executive Office requires to pay a Joining Fee of US$ 1,364 (AED 5,000) and Security Deposit of US $ 2,728 (AED 10,000)Freelance Permit allows an individual to operate as a sole practitioner and enables him to conduct the activity in his birth name as opposed to brand name.A Freelancer can use the ‘Hot Desk’ facility of Media Business Centre and total cost for the facility is US$ 6,545 (AED 24,000) which includes fee for freelance permit, visa, and a refundable deposit of US $ 1,364 (AED 5,000).

Facilities

Offered

Rental per annum

Lease Period

CommercialOffice Spaces (minimumavailability is 600 sq. feet)(No

space restriction)

US $ 32.75 (AED 120)/ per sq. foot

One year,annuallyrenewable

Loft Offices

US $ 36.82 (AED 135) per sq. foot


Boutique Offices(Exclusive Offices in Private Villas)Entire Villa 5772 sq. feet/Ground Floor 2533 sq. feet

US$ 122,717 (AED 450,000) -US$ 149,986 (AED 550,000)


Executive Offices in Media Business Centre)Availability is in


US $ 95 sq. feet(AED 350)


Executive Desk (Media Business Centre)

US $ 6,000(AED 22,000)



*US$ 13,635(AED 50,000)

OneUS $ 955

(AED 3,500)

FZ LLC(Multiple


*US$ 13,635(AED 50,000)Minimum Two

US $ 955(AED 3,500)

* Capital amount shown above is only minimum indicative figure and can vary according toproject outlay.

78

Dubai Media City [Member of Dubai Holdings]


Dubai-U.A.E (Dubailand)200515 Kms from Dubai International Airport21 million square feetDubai Technology and Media Free Zone Authority

DUBAI BIOTECHNOLOGY AND RESEARCH PARK (DUBIOTECH) [Member of Dubai Holdings]



minimum 2 years)

None-


Zones

None-

FZ LLC(Multiple



US $ 955(AED 3,500)




Formation Fee

Business Segments

Visas

Company formation periodOther Info

Biotechnology, Pharmaceutical R&D, Diagnostics, Bioinformatics, Medical Devices/Equipment, Forensics, Agricultural Biotechnology, Industrial Biotechnology,Pharmaceutical Manufacture and Support Services. Depends on the size of the office space leased. Executive Office is eligible for maximum 3-4 visas.

30 days

xEntity operating in E ecutive Office/availing Hot Desk faciltiy requires to pay a Joining Feeof US$ 1,364 (AED 5,000) and Security Deposit of US $ 2,727 (AED 10,000) / US$ 1364(AED 5000) respectively*Capital requirement shown above is for General Segments. Capitalization for manufacturing/production activities under ‘Therapeutics’, ‘Diagnostics’, ‘Agricultural Biotechnology’, Environment’, ‘Specialty Supplies’ and ‘Equipment’ segments is US $

* rates are subject to change81,811 (AED 300,000).


* US$ 13,635(AED 50,000)

OneUS $ 955

(AED 3,500)US $ 955

(AED 3,500)US $ 955

(AED 3,500)

Facilities Offered

Rental per annum

Lease Period

Commercial Office Tower (Al Thuraya

Tower – 1)[685 sq. ft to 1670

sq.ft]* US $ 32.75 (AED 120)/ per sq. foot


Executive Offices



Plot of Land

Subject to management

decision30-50 years

Hot Desk*(Equipped

workstation)

US $ 2,454(AED 9,000)


According to the DUBIOTECH Segments

General SegmentsUS $ 4,091

(AED 15,000)

Production /ManufacturingUS$ 6,818

(AED 25,000)

80


Dubai-U.A.E (Close to Dubai Academic City)January 200515 Kms from Dubai International Airport450,000 square feet (built up office area) & 30 plots of landDubai Technology and Media Free Zone Authority

DUBAI OUTSOURCE ZONE (DOZ) [Member of Dubai Holdings]



minimum 2 years)

None-

US $ 955 (AED 3,500)


Zones

None-

US $ 955 (AED 3,500)

US $ 955 (AED 3,500)

US $ 955 (AED 3,500)




According to the DOZ Segments

License fee US $ 4,091(AED 15,000)

Business Segments

VisasCompany formation periodOthers

Outsourcing Services for Finance & Accounting, Customer Care, Human Resource,Transaction Processing, Information Technology Management, Documents Management, Call Center Training.

Depends on the size of the office space leased.

30 days

First Step at DOZ enables new investors to explore the business opportunities by leasing office space for a short-term period. This helps the companies to test the viability of the plan before setting up a full-fledged operation unit. However, short term lease in First Step does not qualify the company for a

* Rate is subject to change

Trade Licence.

FacilitiesOffered

Rental per annum

Lease Period

* US $ 20.45 (AED 75)/ per sq. foot Subject to management decision

One year, annually renewable 30 years


US$ 81,811(AED 300,000)

One

FZ LLC(Multiple


US$ 81,811(AED 300,000)Minimum Two

Office Buildings

[Minimum 1500 sq.ft]

Plot of Land

(Average 50,000sq,ft)



Dubai-U.A.E (Dubailand)200515 Kms from Dubai International Airport21 million square feetDubai Technology and Media Free Zone Authority

DUBAI BIOTECHNOLOGY AND RESEARCH PARK (DUBIOTECH) [Member of Dubai Holdings]



minimum 2 years)

None-


Zones

None-

FZ LLC(Multiple



US $ 955(AED 3,500)




Formation Fee

Business Segments

Visas


Biotechnology, Pharmaceutical R&D, Diagnostics, Bioinformatics, Medical Devices/Equipment, Forensics, Agricultural Biotechnology, Industrial Biotechnology,Pharmaceutical Manufacture and Support Services. Depends on the size of the office space leased. Executive Office is eligible for maximum 3-4 visas.

30 days

xEntity operating in E ecutive Office/availing Hot Desk faciltiy requires to pay a Joining Feeof US$ 1,364 (AED 5,000) and Security Deposit of US $ 2,727 (AED 10,000) / US$ 1364(AED 5000) respectively*Capital requirement shown above is for General Segments. Capitalization for manufacturing/production activities under ‘Therapeutics’, ‘Diagnostics’, ‘Agricultural Biotechnology’, Environment’, ‘Specialty Supplies’ and ‘Equipment’ segments is US $

* rates are subject to change81,811 (AED 300,000).


* US$ 13,635(AED 50,000)

OneUS $ 955

(AED 3,500)US $ 955

(AED 3,500)US $ 955

(AED 3,500)

Facilities Offered

Rental per annum

Lease Period

Commercial Office Tower (Al Thuraya

Tower – 1)[685 sq. ft to 1670

sq.ft]* US $ 32.75 (AED 120)/ per sq. foot


Executive Offices



Plot of Land

Subject to management

decision30-50 years

Hot Desk*(Equipped

workstation)

US $ 2,454(AED 9,000)


According to the DUBIOTECH Segments

General SegmentsUS $ 4,091

(AED 15,000)

Production /ManufacturingUS$ 6,818

(AED 25,000)

Dubai Biotechnology And Research Park (Dubiotech) [Member of Dubai Holdings]


81Morison Menon



Dubai-U.A.E (Dubai land)200540 Kms from Dubai International Airport22 million sq. feetDubai Technology and Media Free Zone Authority

Facilities Offered

Rental per annum

Lease Period





minimum 2 years)

Branch of a UAE Company including Entities established in other UAE Free

Zones

FZ LLC(Single

Shareholding)Value per share

is US $ 273 (AED 1,000)

FZ LLC(Multiple

Shareholding)Value per share

is US $ 273 (AED 1,000)

None

-US $ 955

(AED 3,500)

None

-US $ 955

(AED 3,500)

*US$ 13,635(AED 50,000)

One

US $ 955 (AED 3,500)


US $ 955 (AED 3,500)

Business Segments

Visas

Company formation

period

Other Info

Filmed Entertainments/Production, Post Production, Film Distribution, Media Content Management and

Provider, Film Content Right Management, Animation, Set Construction, Prop Shops, Casting Agency,

Modelling Agency, Equipment Rental, Music & Entertainment, Broadcasting, Broadcast Management,

Broadcasting System Integrators, Leisure and Events

Film schools, training institutes through SAMACOM, the integrated satellite service provider to Dubai

Technology and Media Free Zone, companies can uplink/downlink content and live feeds. Broadcasting

community has the opportunity to save cost through use of shared features and facilities in DSC.

Film Schools with accredited programmes and Training Institutes offer courses to groom talents

Proximity to Dubai Sports City, Dubai Autodrome, Aqua Dubai, Dubai Bazaar in Dubai Land and Polo &

Golf Course in Arabian Ranches help movie producers.

*Capitalisation of Companies (FZLLC) for the Broadcasting segment is US$ 681,756 (AED 2,500,000)

Capital amount shown above is only the minimum indicative figure and can vary according to project outlay.


30 days

Types of LicensesIssued

License fee General SegmentsUS $ 4,091 (AED 15,000)

BroadcastingUS $ 6,818 (AED 25,000)

According to the DSC Business Segments

Boutique Studios(1200-3000 sq. ft)


1 Year; annually renewable


1 Year; annually renewable


Up to 50 years

Commercial Offices(No space restriction)

Plot of land(Minimum 30,000 sq. ft)

*

84

DUBAI STUDIO CITY (DSC) [Member of Dubai Holdings]


Dubai-U.A.E, Dubai LandJuly 200315 Kms from Dubai International Airport50 million sq. feetDubai Technology and Media Free Zone Authority

INTERNATIONAL MEDIA PRODUCTION ZONE (IMPZ) [Member of Dubai Holdings]



minimum 2 years)

None-


Zones

None-

US $ 955 (AED 3,500)

US $ 955 (AED 3,500)

US $ 955 (AED 3,500)

US $ 955 (AED 3,500)

Types of licenses issuedLicense fee(General segments)



Formation Fee

According to the IMPZ Segments

US $ 4,091(AED 15,000)

Business Segments

Visas


Others

Publishing, Printing, Packaging, Media Production (Manufacturing), Trading in Media Products (Machinery /Consumables), General Services etc.

Depends on the size of the facility and requirements of the project.

30 days

*Capital requirement shown above is for General Segments. Capital for ‘Printing Segment’ and ‘Publishing Segment’ are US $ 136,352 (AED 500,000) and US $ 54,540 (AED 200,000) respectively.

Facilities Offered

(declared as

Rental per annum

Lease Period


*US$ 81,811(AED 300,000)

One

FZ LLC(Multiple



(A) Pre-built Production Units (2.3 million sq. feet)

(B) Plot of Land (6 million sq. feet); sizes available from 60,000 sq. feet to 100,000 sq. feet(C) Other Facilities (Sizes and rates to be announced): Publishing Pavilion, Office Blocks, Media Tower (Offices), Media Market (Retail/Wholesale), Logistic Centre etc.

Warehouses

Sizes (sq. feet)

Store,

Office & Others

6837

43572480

8893

64122481

15316

128362480

8425

62192206

7747

55422205

10458

72303228

26953

195407413

Showrooms

Warehouse/ShowroomsTo be announcedOne year, annually renewable

Plot of LandUSD 1.90 (AED 7.00) per sq. feetUp to 30 years; renewable for similar period

of date)


85Morison Menon

International Media Production Zone (IMPZ) [Member Of Dubai Holdings]

86


Dubai-U.A.E20038 Kms from Dubai International AirportPhase I : 4.1 million feet; Phase II: 15 million sq.feet.Center for Healthcare Planning and Quality [CPQ]

DUBAI HEALTH CARE CITY (DHC) [Member of Dubai Holdings]



minimum 2 years)

None-

US $ 955 (AED 3,500)

US $ 955 (AED 3,500)

US $ 955 (AED 3,500)

US $ 955 (AED 3,500)


Zones

None-



Professional Licences Clinical Operating CommercialLicence Permits

Segments Academic Medical Centre: Harvard Medical School Centre, Teaching Hospital, Research CentreWellness Cluster: Check up facilities, Sports Medicine, Wellness Centre, Nutrition Centre, Resort & Spa, Health Farm.Medical Cluster: Pharmaceutical and Equipment, Private Hospitals and Clinics, Transplantation Centre, Rehabilitation Centre, Diagnostic Centre, Day Clinics, Alternative MedicineHealth Care and Support Cluster: Telemedicine, Telehealth, Health Care Services, Healthcare Consultants, Medical Engineering Services, Medical Laboratories,


* Rental rates shown above is subject to changePrivate Developers also offer real estate facilities in DHCC

30 days

Facilities Offered(Leasehold/Freehold)

Rental per annum [Leaseholdproperty]

Subject to management decision


US$ 81,811(AED 300,000)

One

FZ LLC(Multiple


US$ 81,811(AED 300,000)Minimum Two

Spaces: Clinical/Office/Centres

*US $ 32.73AED 120/sq. ft

Plot of Land

[To construct Centres/Clinics/Offices]

Company formationperiodOther info

Visas

Type of license

Fee [for two years term]

Health Care Professionals:

Allied Health Professionals:

US $ 1,364 (AED 5,000)

US $ 327(AED 1,200)

Hospital:

Diagnostic Centre:

Private Practitioner

Outpatient Surgery CentreLong-term Care CentreMulti Speciality Clinic

Outpatient rehabili-tation Centre/Laboratory/GeriatricCare Centre Pharmacies

US $ 7,363- – US $ 19,635

(AED 27,000-72,000)US$ 5,999

(AED 22,000)

US $ 3,000(AED 11,000)

US$ 5,999 (AED 22,000)

US $ 9,545(AED 35,000)

US $ 8,863(AED 32,500)

US $ 4,909(AED 18,000)

US $ 5,454(AED 20,000)

US $ 3,600(AED 13,200)

Dubai Health Care City (DHCC) [Member Of Dubai Holdings]



Adjacent to Jebel Ali International Airport, Dubai-U.A.E200340 Kms from Dubai International Airport30 sq. kilometres

Facilities Offered

Rent Per Annum

Lease Period

Possible Legal

Entities

Business Segments Hi-Tech, Oil & Gas & Water Desalination [preliminary focus]

Port facilities

Visas

Time span to form company

Jebel Ali Port, Port Rashid, Dubai Airport, Jebel Ali Airport

Visas are issued according to requirements

20-30 days [depends on project approval]

Other Info * Alternatively, prospective investors can form a Free Zone Establishment (FZE)/Free Zone Company (FZCO) in Jebel Ali Free Zone as per JAFZA Regulations and open its branch in Techno Park.

* Companies registered at Techno Park have the opportunity to showcase their products at dedicated exhibition spaces in Techno Park.

*Branch of a Foreign Company(Including Offshore Company)

Entity

Capital-cash physical

No. of Shareholders

Formation Fee

Free ZoneEstablishment (FZE)

US$ 273,224(AED 1,000,000)

One

US $ 2,727 (AED 10,000)


US$ 136,612(AED 500,000)


(AED 15,000)

Office Units

[Rate to be announced]


Plot of LandUSD 5.45 – 21.80

(AED 20-80) per sq. meter

Upto fifty years

*Branch of a UAECompany

License fee US $ 1,500(AED 5,500)

DUBAI TECHNO PARK

87Morison Menon

88


Al Awir Free Zone, Al Awir - Dubai2004 [Expect to be operational by early 2006]20 Kms from Dubai International Airport6,000,000 sq. meters

DUBAI TEXTILE CITY (DTC)

Branch of Foreign Company (including offshore

company)


Types of licenseissuedLicense fee


Trading Licence

US $ 1,500 (AED 5,500)

Business Segments Trading in Textile Fabrics

7 visas for per trade licence/Unit. [However, additional visas may be issued subject to requirement]5 – 10 days

* Investors can sublease the facility * No rental for office facility is charged for first 15 years; from 16th to 30 year rent as per

market price less 50% with a minimum of US $ 2 (AED 7.5) per sq. foot. * The facility shall be leased only to TEXMAS members and a wholesale dealer of textiles. * Currently registration, licencing and visa formalities with respect to an Entity in Al Awir

Free Zone are controlled by JAFZA.

Facilities Offered

Rental per annum

Lease Period

FZT(Single/MultipleShareholding)

Ground Show Room*Mezzanine OfficeGround Warehouse

US $ 0.11 (AED 0.40) per sq. foot30 years; renewable for similar period

Units -Type A(3070 sq. feet)

3633632344

Units-Type B(5781 sq. feet)

6176174547

Units-Type C(11581 sq. feet)

122312239135

Other Info

Company formationperiod

Visas


Formation Fee

No. of Shareholders

US $ 27,270(AED 100,000)

None

None None

None

- -

(US $ 2,727)AED 10,000

Minimum One Shareholder. If more than one shareholder the

capital can be divided as US $ 13,635 (AED 50,000 each).

*

Dubai Textile City (DTC)


Al Awir Free Zone, Al Awir - Dubai April 200020 Kms from Dubai International Airport8,000,000 sq. feet

DUBAI USED CARS AND AUTOMOBILE ZONE (DUCAMZ)


company)




Trading Licence

US $ 1,500 (AED 5,500)

Business Segments Trading in used cars and automobiles

For office units depends on the space leased; For show rooms maximum 8 visas.

5 – 10 days

Currently registration, licencing and visa formalities with respect to an Entity in Al AwirFree Zone are controlled by JAFZA.

Facilities Offered

Rental per annum

Lease Period

US $ 13,635 (AED 50,000)

US $ 9,681

One year One year 30 years; renewable for similar period

FZD(Single/MultipleShareholding)

Office Units (for service activityonly)

(17 sq. meters)

Warehouse/Workshop(334 sq. meters)

<20 sq. meters US $ 327 per m2 (AED 1200)>20 sq. meters is negotiable

(Office + open area)Office 42 sq. metersOpen area 1000 sq. meters

Other Info


Visas


Formation Fee

No. of Shareholders

US $ 27,270(AED 100,000)Minimum One

Shareholder. If more than one shareholder the

capital can be divided as US $ 13,635(AED 50,000) each.

None

None None

None

- -

US $ 2,727(AED 10,000)

(AED 35,500)


89Morison Menon

Dubai Cars and Automotive Zone (DUCAMZ)

90



HEAVY EQUIPMENT & TRUCK ZONE (HETZ)

Types of license issuedLicense fee

Business SegmentsVisas


FacilitiesOfferedRental per annumLease Period

Plot of Land[Minimum 10,000 sq. meters]

*US $ 1.90 to US $ 3.27/m2 (AED 7-12)30 years; renewable for similar period

Trading in Heavy and Construction Equipment8 visas for 10,000 sq. meters of plot. [However, additional visas may be issued subject to requirement]5 – 10 days

Currently registration, Licencing and visa formalities with respect to an Entity in Al Awir Free Zone are controlled by JAFZA.It is a mandatory requirement that every entity must construct office unit (plan to be approved by FZ Authority) and size can vary in between 100 m2 to 300m2


(including offshore company)

None

-

None


None

-

None



No. of Shareholders

Formation Fee

Free Zone Company(Single/Multiple Shareholding)

US $ 27,270(AED 100,000)

Minimum One Shareholder. If more than one shareholder the capital can be

divided as AED 50,000 each (US $ 13,635)

US $ 2,727(AED 10,000)

Trading Licence

US $ 1,500 (AED 5,500)


Heavy Equipment & Truck Zone (HETZ)




HEAVY EQUIPMENT & TRUCK ZONE (HETZ)






*US $ 1.90 to US $ 3.27/m2 (AED 7-12)30 years; renewable for similar period

Trading in Heavy and Construction Equipment8 visas for 10,000 sq. meters of plot. [However, additional visas may be issued subject to requirement]5 – 10 days

Currently registration, Licencing and visa formalities with respect to an Entity in Al Awir Free Zone are controlled by JAFZA.It is a mandatory requirement that every entity must construct office unit (plan to be approved by FZ Authority) and size can vary in between 100 m2 to 300m2



None

-

None


None

-

None



No. of Shareholders

Formation Fee


US $ 27,270(AED 100,000)

Minimum One Shareholder. If more than one shareholder the capital can be

divided as AED 50,000 each (US $ 13,635)

US $ 2,727(AED 10,000)

Trading Licence

US $ 1,500 (AED 5,500)



Al Awir Free Zone, Al Awir - Dubai 2005 [Expect to be operational by early 2007]20 Kms from Dubai International Airport14,000,000 sq. meters

BUILDING MATERIAL ZONE (BMZ)


company)




Trading Licence

US $ 1,500 (AED 5,500)

Business Segments Trading in Building Materials

8 visas for 10,000 sq. meters of plot. [However, additional visas may be issued subject to requirement]5 – 10 days

*Rate is subject to change* Investors can construct warehouses on leased plots in accordance to their requirement with prior approval from Free Zone yAuthorit .

Facilities Offered

Rental per annum

Lease Period 30 years; renewable for similar period

Free Zone Company(Single/MultipleShareholding)


*US $ 1.90 to US $ 3.27 per sq. meter (AED 7-12)

Other Info


Visas


Formation Fee

No. of Shareholders

US $ 27,270(AED 100,000)

Minimum One Shareholder. If more than

one shareholder the capital can be divided as

US $ 13,635 (AED 50,000) each

None

None None

None

- -

US $ 2,727(AED 10,000)

91Morison Menon

Building Material Zone (BMZ)

92



AUTO SPARE PARTS ZONE (ASPZ)





Plot of Land[minimum 5,000 sq. meters]*US $ 1.90/m2 (AED 7.00)

30 years; renewable for similar period

Trading in New and Used Auto Spare Parts8 visas per trade licence/10,000 sq. meters of plot. [However, additional visas may be issued subject to requirement]5 – 10 days

*Rate is subject to change

It is a mandatory requirement that every entity must construct office unit (plan to be approved by FZ Authority) and size can vary in between 100 m2 to 300m2.

Currently registration, licencing and visa formalities with respect to an Entity in Al Awir Free Zone are controlled by JAFZA.



None

None


None

--

None



No. of Shareholders

Formation Fee


US $ 27,270(AED 100,000)


AED 50,000 each(US $ 13,635)

US $ 2,727(AED 10,000)

Trading Licence

US $ 1,500 (AED 5,500)

Auto Spare Parts Zone (ASPZ)




AUTO SPARE PARTS ZONE (ASPZ)





Plot of Land[minimum 5,000 sq. meters]*US $ 1.90/m2 (AED 7.00)


Trading in New and Used Auto Spare Parts8 visas per trade licence/10,000 sq. meters of plot. [However, additional visas may be issued subject to requirement]5 – 10 days

*Rate is subject to change

It is a mandatory requirement that every entity must construct office unit (plan to be approved by FZ Authority) and size can vary in between 100 m2 to 300m2.

Currently registration, licencing and visa formalities with respect to an Entity in Al Awir Free Zone are controlled by JAFZA.



None

None


None

--

None



No. of Shareholders

Formation Fee


US $ 27,270(AED 100,000)


AED 50,000 each(US $ 13,635)

US $ 2,727(AED 10,000)

Trading Licence

US $ 1,500 (AED 5,500)


Sharjah (Al Hamriyah) - U.A.ENovember 1995 (Operation started in 1998)35 Kms from Dubai International Airport24,000,000 sq. meters

HAMRIYAH FREE ZONE



Branch of ForeignCompany(Including

NoneNone

offshore company)

Branch ofU.A.E

Company

Business Segments Import, Export, manufacturing, processing, assembling, packaging, distribution, consolidation, storage, international business consultancy and different kind of services unless otherwise restricted by federal or local authorities.

Hamriyah Free Zone Port (feeder service), Sharjah Airport, Port Khalid, Khorfakkan Port

4 visas for 22.40 sq. meters office and further depends on the size of the space leased. However, no restriction for industrial/assembly units operating in pre-built warehouse and leased land as required for the activities. Trade Licence will be ready within 24 hours subject to completion of legal formalities and registration documentations.

Manager of a company must hold Free Zone visa.

Facilities Offered

Rental per annum

Lease Period

Free ZoneCompany

(FZC)

US$ 40,905(AED 150,000)

Minimum 2Maximum 5

US $ 2,454(AED 9,000)


(FZE)

US$ 40,905(AED 150,000)

One

US $ 2,454(AED 9,000)

Office Units

15.30 m2 to 42.00 m2

US $ 4,636 to US $ 12,313(AED 17,000 to AED 45,150)One year, annually renewable[option for 25 years]

One year, annually renewable[option for 25 years]

Renewable forsimilar period

US $ 29,997 / 21,816 / 14,999(AED110,000 / 80,000 / 55,000)

US $ 3.56 – 5.45(AED 13-20/sq. mtr)

Total Area614 m2416 m2276 m2

Warehouse Area500 m2328 m2250 m2

Minimum 2500m2

Office Area114 m288 m226 m2

Other Info


Port facilities

Visas


Formation Fee

No. of Shareholders

None None

- -

Warehouse Plot of land

Commercial(Up to 5 items)

General Trading Service Industrial *National Industrial

US $ 750(AED 2,750)

US $ 3,272(AED 12,000)

US $ 750(AED 2,750)

US $ 750(AED 2,750)

US $ 750(AED 2,750)

5 years upto 25 years

Hamriyah Free Zone

93Morison Menon

94


Sharjah - U.A.EMay 199525 Kms from Dubai International Airport1,000,000 sq. meters

SHARJAH AIRPORT INTERNATIONAL FREE ZONE

Business Segments



Import, export, manufacturing, processing, assembling, packaging, distribution, consolidation, storage, international business consultancy and different kind of services unless otherwise restricted by federal or local authorities.Sharjah Airport, Port Khalid, Khorfakkan Port4 Nos. for pre-built office; additional visas depends on the size of the office space leased. However, no restriction for industrial/assembly units operating in pre-built warehouse and leased land as required by the activities. Trade Licence will be ready within 24 hours subject to completion of legal formalities and registration documentations. Other Real Estate facilities available in SAIF-Zone are: Temporary storage area, bunker and container parking area. Executive Office Unit/Suites are leased with furniture.

Facilities Offered Office Units Warehouse/Light Industrial Units Plot of land

ExecutiveOffice Suite Minimum

24 sq. meters

WarehouseArea

113 m2206 m2343 m2490 m2

Office Area12 m244 m257 m2110 m2

Minimum2500 m2

Rent Per Annum

Lease Period One year, annually renewable

[option for 25 years]


[option for 25 years]

Up to 25 yearsRenewable forsimilar period

US $ 345 (AED1266/sq.meter)

US $ 409 (AED 1500/sq.meter)

US $ 2.73 – 5.45(AED 10-20) per sq. meter

US $ 13,090 / 20,453 / 27,270 / 38,178(AED 48,000 / 75,000 / 100,000 / 140,000)



Formation Fee


(Including offshore company)

None

-

None

Branch ofUAE

Company

None

-

None


US$ 40,905(AED 150,000)

One

US $ 2,727(AED 10,000) (AED 10,000)

Free ZoneCompany

(FZC)

US$ 40,905(AED 150,000)


ExecutiveOffice UnitMin 21 sq.

meters

Total Area

125 m2250 m2400 m2600 m2


License fee

General Trading

US $ 3,681(AED 13,500)

Commercial(Maximum limit is 3

similar items)US $ 955

(AED 3,500)

Service

US $ 955(AED 3500)

Industrial

US $ 955(AED 3500)

94

Sharjah Airport International Free Zone (SAIF-ZONE)


Ajman – UAE198820 Kms from Dubai International Airport1,000,000 sq. meters

AJMAN FREE ZONE



Branch ofa UAE

Company



Trading Professional/ServiceUS $ 1,364(AED 5,000)

Industrial NationalIndustrial

General Trading:One Activity:Two Activities:Three Activities:

US $ 1,909 (AED 7,000)US $ 818 (AED 3,000)US $ 1,091 (AED 4,000)US $ 1,364 (AED 5,000)

US $ 1,909(AED7,000)

US $ 1,909(AED 7,000)

Business Segments Import, export, manufacturing, processing, assembling, packaging, distribution, consolidation, storage, international business consultancy and different kind of services unless otherwise restricted by federal or local authorities.

Ajman Port (feeder vessel), Ports in Sharjah, Ports in Dubai

5 visas of office unit. However, no restriction for industrial/assembly units operating in pre-built warehouse and leased land as required for the activity.

Manager of a company must hold Free Zone visa.

3 – 4 days

Facilities Offered

Rental per annum

Lease Period


(FZE)

Free ZoneCompany

(FZC)

Office Units(Minimum 16 m2)

US $ 7,500( AED 27,500)

One year, annually renewable One year, annually renewable

Warehouse/Light Industrial Units (225/360/540/560 m2)(257/330m2) (new)

US $ 68.20 (AED 250)sq meter

Plot of land(Minimum 2000 m2)

US$ 2.73/m2 (AED10)


Other Info


Visas

Port facilities


Formation Fee

No. of Shareholders

US $ 50,000(AED 185,000)

US $ 50,000(AED 185,000)

OneMinimum 2Maximum 20

None

None None None None

None

- -

96

Ajman Free Zone


Umm Al QuwainApril 199855 kms from Dubai International Airport 118,000 sq. mtrs.

AHMED BIN RASHID FREE ZONE (UMM AL QUWAIN)



Branch ofa UAE

Company



Business Segments Manufacturing, Trading and Consultancy

Ahmed Bin Rashid Port (feeder vessel), Ports in Sharjah

4 visas for office unit. However, no restriction for industrial/assembly units operating in leased land as required for the activity.

3 – 4 days

Facilities Offered

Rental per annum

Lease Period

Office Units Plot of Land


Visas

Port facilities


Formation Fee

No. of Shareholders

One year 15 years; renewal for similar period

None

None None

(DepositAED 2,000)

US $ 6,818(AED 25,000)

None

- -

Special Licence(Industrial Licence)US $ 545(AED 2,000)

General Trading LicenceUS $ 1,364(AED 5,000)

Management & Consultancy(Except shipping agencies)

US $ 1,364(AED 5,000)

US $ 5.45 per sq. meter for constructed area and US $ 1.36 per sq. meter for pen area per year. The investor can construct the factory unit according to his requirements, however, subject to the approval of the Free Zone Authority.

Ahmed Bin Rashid Free Zone (UMM AL QUIWAIN)


97Morison Menon

98


Ras Al Khaimah – UAEMay 1, 2000100 Kms from Dubai International Airport1,880,000 sq. meters

RAS AL KHAIMAH FREE ZONE (RAK FREE ZONE)

Business Segments

Port facilitiesOwnershipVisas


Import, export, manufacturing, processing, assembling, packaging, distribution, consolidation, storage, different kind of services unless otherwise restricted by federal or local authorities.Ras Al Khaimah Port (Mina Saqr). Ras Al Khaimah Airport100%Visas are issued on the basis of the size of the office space leased. However, no restriction for industrial/assembly units operating in pre-built warehouse and leased land.Licencing within 48 hours upon approval for Trading, Assembling and Warehousing.Licencing for Manufacturing upon the approval of agreement for premises. *Minimum capital requirement for General Trading and Real Estate Licence is US$ 136,352 (AED 500,000).Other facilities available are: Shared Office, Flexi Office, Flexi DeskWarehouses in different sizes are also available.

Facilities Offered

Rental per annum

Lease Period




(Including offshore company)

None

-None

Branch ofa UAE

Company

None

-None


(FZE)

*US $ 27,270(AED 100,000)

OneUS $ 1,909

(AED 7,000)

Free ZoneCompany

(FZC)

*US $ 27,270(AED 100,000)Min 2, Max 5US $ 1,909

(AED 7,000)


License fee

Commercial-GeneralTrading

Commercial(Maximum 7 similar

line of products)

Consulting/Service

Real Estate Licence

Industrial

Warehouse/Light Industrial Units

(200m2)

US $ 10,908(AED 40,000)

US $ 818(AED 3,000)

US $ 4,091(AED 15,000)

US $2,045(AED 7,500)

US $ 4091(AED 15,000)

US $ 1,364(AED 5,000)



5 - 15 years; renewable for similar period

US$ 5,890(AED 21,600)

US $ 16,362(AED 60,000)

Executive Offices(Minimum 18m2)

Plot of land(5000 m2)

Ras Al Khaimah Free Zone (RAK FREE ZONE)


Fujairah – UAENovember 1987120 Kms from Dubai International Airport2,100,000 sq. meters

FUJAIRAH FREE ZONE



Branch ofa UAE

Company



Business Segments Import, export, manufacturing, processing, assembling, packaging, distribution, consolidation, storage, international business consultancy and different kind of services unless otherwise restricted by federal or local authorities.

Fujairah Port, Khorfakkan Port

4 visas for office unit. However, no restriction for industrial/assembly units operating in pre-built warehouse and leased land as required for the activity.

* Fujairah Free Zone can build customized warehouse for the investor subject to general construction guidelines and Free Zone policy.* With effect from May 2005, Dubai Port Authoirty and Fujairah Port Authority jointly manage Fujairah Port’s container terminal. * A company can obtain additional licence with different activities and operate under different name.

Trade Licence will be ready within 24 hours subject to completion of legal formalities and registration documentations.

Facilities Offered

Rental per annum

Lease Period


(FZE)

Free ZoneCompany

(FZC)

Warehouse/Light Industrial Units Units are available in 250m2, 500 m2, 1000 m2`

Office Units(28 m2 onwards)

Plot of land(Minimum 2500 m2)

From US$ 2.72 m2 (AED 10/m2) onward15 years; renewable for similar period

Other Info


Visas

Port facilities


Formation Fee

No. of Shareholders

US$ 40,905(AED 150,000)

US$ 40,905(AED 150,000)

One Minimum 2

US $ 50.45m2 (AED 185) ( Min per Sq.mtr)

US $ 6,818(AED 25,000)

Minimum Two years One year, annually renewable

None

None NoneUS $ 1,363

(AED 5,000)US $ 1,363

(AED 5,000)

None

- -

Trading(Normal)US $ 682(AED 2,500)

GeneralTradingUS $ 1,364(AED 5,000)

Professional/ServiceUS $ 682(AED 2,500)

Industrial

US $ 1,364(AED 5,000)

NationalIndustrialUS $ 1,364(AED 5,000)

Fujairah Free Zone


99Morison Menon


Dubai Design Centre has been envis-

aged as an exclusive trade outlet

for home furnishing and accessories.

Both wholesalers and retailers of inte-

rior designing, trading and related

are encouraged to set up their opera-

tion in DDC.

The DDC will be the largest develop-

ment of its kind, measuring 4.2 kil-

ometers in length and 150 metres in

width, offering 5.7 million square feet

of net usable prime retail and office

space.

Dubai Design Centre compliments the

purpose of the International City, will

be an exclusive out of town mega-cen-

tre for traders and retailers offering

a complete range of home furnish-

ing, design, gardening and construc-

tion solutions. The centre will help

meet the demands of Dubai’s grow-

ing population, and serve clients pur-

chasing properties in the Emirate and

beyond. Spreading over an area of 12

million square feet, the Dubai Design

Centre will be the largest such devel-

opment in the world.

The DDC is located in the Al Warsan

area of Dubai at the intersection of

the Emirates Road, Al Aweer Road

and the Academic City Road.

Dubai Design Centre The Dubai Design Centre also features office blocks pro-

viding 80,000 square meter of prime office space.

Dubai Auto Zone (DAZ)Dubai Auto Zone is a newly proposed industrial zone for

automobile industries which shall be located in ‘Ruwaya’

along Dubai Bypass road. The facilities to be available in

the Zone are showrooms, supply depots, light manufac-

turers, service providers and others in automotive and

machinery industry. Dubai Auto Zone will consist of a

Free Zone to attract foreign direct investment, a Spe-

cialized Economic Zone to Cater to the GCC market,

and a Retail Zone to serve the local market. In addition

to high quality customer service, Dubai Auto Zone will

provide its partners with state-of-the-art facilities includ-

ing advanced telecommunication system, high capacity

power supplies, integrated road network, Waste Treat-

ment Plant and various service facilities. However, Dubai

Cars and Automotive Zone (Ducamz) a Jafza-managed

complex established with the aim of promoting re-exports

of used cars to Asian and African countries will continue

to remain in business after the creation of Dubai Auto

Zone.

Dubai Energy City [Energy Zone]The Energy City has been designed as a self contained

business, residential and leisure community specifically

catering to the needs of the energy sector. The principal

focus of the city shall be ‘Green Buildings, Wind Energy,

Solar Energy, Waste Water Treatment, District Cooling

and Hydrogen Energy and Fuel Cells. Energy City shall

be located in the heart of Dubai, more specially in the

Business Bay. The City will cater to companies and insti-

tution, which make up the complete value chain of Oil &

Gas, Petrochemical, Power & Electricity, H2 & Renewable

Energy.

Industrial City of Abu Dhabi - Covered in page 22 & 23

Dubai Academic City - Covered in page 60

Upcoming Free Zones

102

doing business part1

Documents

ras al khaimah

umm al quiwain

dubai silicon

customs inspector

rak free zone

dubai knowledge

private shareholding

jebel ali