Exporting to United Arab Emirates
Growing, diverse economy
The UAE’s economy continues to grow and diversification has made it less vulnerable to oil price changes. Dubai has become a major centre for business, logistics, media and leisure. Large investments will be made in infrastructure and other assets associated with Expo 2020 in Dubai, opening up new business opportunities.
Strategic location
Dubai is a regional hub and commercial capital for the Middle East, North Africa and beyond. The UAE is a major entry route into other Gulf Cooperation Council (GCC) countries and an important market for re-export into other countries. Its liberal trade regime attracts capital from across the region.
British presence
The majority of the UAE’s population consists of expats, including a considerable British presence. British companies operating in the UAE include BP, Shell, Rolls-Royce, BAE Systems, Mott McDonald, HSBC, Marks and Spencer, Waitrose and John Lewis. Many Emiratis have studied and have homes in the UK, and have a taste for British goods.
Ease of doing business
16th
out of 190 countries (World Bank, 2019)
Currency
UAE dirham
Business languages
Arabic, English
Arabic is the official language with English widely spoken
GDP per capita
$40,710
UK is $42,560 (IMF, 2018)
Economic growth
1.7%
(IMF, 2018)
Time zone
GMT +4
High potential industries in the country for UK businesses
There are opportunities for UK companies across a broad range of industries. Our trade advisers in the UAE have identified particular opportunities for UK businesses in the following sectors.
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Education and training
Education is one of the UAE’s top priorities, as it aims to build a knowledge-based economy and position itself as the academic hub in the Gulf region. There’s also an increasing focus on technical and vocational training.
Demand for UK schools and universities
Efforts are underway to bring more British schools to the UAE and secure recognition of UK further and higher education qualifications. There’s also an appetite for more technical and vocational training. UK businesses could collaborate in developing new British schools and universities in the UAE, and in curriculum setting and capacity building.
Demand for teachers and training
The UAE has a fast growing and young population, and demand for a British education is high and continues to grow. This creates opportunities for UK businesses to provide qualified, skilled UK teachers and teacher training.
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Energy
The UAE government aims to increase the contribution of clean sources to the country’s energy mix. However, oil, gas and nuclear remain vital to the sector. The government aims to invest 600 billion United Arab Emirates Dirham by 2050 to meet the growing energy demand and ensure sustainable growth for the country's economy.
Oil and gas
The oil and gas sector is a key contributor to GDP and a vital source of income for the UAE. The country has both onshore and offshore oil reserves. Abu Dhabi National Oil Company and its subsidiaries manage the oil and gas supply chain and major projects are in the pipeline.
Nuclear
There’s a continuing need for nuclear power in the UEA and the country’s first nuclear power plant is in the pipeline. There are supply chain opportunities for UK businesses in research and development, waste management, and education and training. Companies willing to invest and enter into joint ventures are welcomed.
Sustainability
Environmental sustainability is a priority for the UAE government as it aims to increase the contribution of renewables to the energy mix. This offers opportunities for UK companies with products which can reduce energy usage. UK businesses will also find growth potential in solar power and waste to energy.
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Financial and professional services
Dubai has the largest and most sophisticated financial services industry in the region and Islamic finance is a growing sector. Both Abu Dhabi and Dubai are home to companies from the UK’s financial services industry. UK companies are active in both the UAE’s onshore and offshore financial services markets.
Dubai International Financial Centre
The Dubai International Financial Centre (DIFC) is an offshore free zone, regulated by the Dubai Financial Services Authority in line with English law. The centre focuses on banking, capital markets, asset management and fund registration, as well as insurance and reinsurance, Islamic finance and professional services.
The Abu Dhabi Global Market
The Abu Dhabi Global Market (ADGM) on Al Maryah Island is the emirate’s fifth financial free zone. It concentrates on private banking, wealth management and asset management.
Opportunities for UK firms
Both the DIFC and ADGM are home to a number of banks and legal, consultancy and insurance firms, including many from the UK. There are opportunities for more companies in the financial and professional services sectors to set up in these free zones.
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Healthcare
Steady population growth, increased awareness of health issues and the rising prevalence of lifestyle-based diseases are all increasing demand for healthcare in the UAE. Increasing average incomes are also contributing to the growth of the sector.
Demand for UK clinical expertise and products
Newly built medical facilities offer opportunities for UK companies to fill gaps in provision in areas such as oncology, paediatrics, mental health, primary care, trauma, emergency services and long term rehabilitation. There’s also a need for high quality equipment, digital health solutions, high quality training for staff, facilities management and infrastructure construction.
Sector growth
The UAE aims to develop healthcare infrastructure and help the sector to grow to international standards, opening up opportunities for UK companies. Increased investment is creating attractive opportunities for public private partnerships, while the UAE’s healthcare-focused free zones will attract hospitals and associated medical services, with UK Export Finance support.
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Infrastructure
The UAE has substantial plans for infrastructure, underpinned by its national development plan, Vision 2021. Government bodies and the large merchant families that dominate the private sector are maintaining spending on infrastructure, especially tourist and social infrastructure.
Demand for UK expertise
There are opportunities to provide both goods and services for infrastructure projects. There’s demand for general construction, specialist sub-contracting and consulting services, and solutions for green buildings and sustainable infrastructure. Building materials, air conditioning and automation systems, water saving devices, and security and swimming pool equipment are also needed.
Opportunities to collaborate
A number of major infrastructure projects are planned or underway. These include the Expo 2020 in Dubai, airport building and expansion, rail and metro line projects and island and waterfront developments, as well as the One Central commercial district and a deep-sewer tunnel project in Dubai.
Sector growth
The government continues to spend on infrastructure projects in line with its national development plans. Major growth in infrastructure is predicted as the country moves away from hydrocarbon dependency. The UAE has and continues to use UK Export Finance to fund projects, which opens up the market for UK companies.
Doing business in UAE
Preparing to export
VAT
VAT was implemented in the UAE on the 1 January 2018 at 5%. Read more about VAT in the UAE.
Import duties
The customs duty rate on imported goods is usually around 5%. Higher rates apply to alcohol and tobacco. Some categories of goods are exempt, such as certain agricultural products, printed material and pharmaceuticals. Goods imported for industrial or manufacturing purposes may also be exempt.
You won’t have to pay customs duties on goods imported into a UAE free zone.
Customs documents
The documents you need to export goods to the UAE are:
- invoices (initiated by the supplier)
- a certificate of origin
- bills of lading or airway bill
Regulations
The UAE prohibits and restricts the import of some products. Find out which items are restricted or prohibited.
Other countries in the Gulf Cooperation Council (GCC) ban and restrict different goods, so if you want to re-export within the GCC make sure you check the relevant country’s regulations.
Packaging requirements
The Gulf Standardization Organization (GSO) sets the framework for the UAE’s packaging and labelling requirements.
All UAE food imports must provide the following information in Arabic, either as part of the packaging or as an affixed label:
- products and brand name
- lot identification
- production and expiry dates
- country of origin
- manufacturers name
- net content weight in metric units
- list of ingredients and additives in descending order of proportion
Product standards
In addition to the Saudi-based GSO, the UAE also operates under the Emirates Authority for Standardisation and Metrology (ESMA). ESMA is a federal body which sets standards in the UAE on a wide variety of consumer products from food and drink to toys. It often introduces new standards for products coming in to the UAE, like quality marks. Check the ESMA website for new announcements.
Operating in UAE
You should always seek legal advice when doing business in the UAE, whether it’s finding a distributor or agent or setting up an office or representation in the company. There are many English speaking legal firms in the UAE who often specialise in company law.
Intellectual property
As a first step, we advise you to speak to an intellectual property (IP) lawyer if you think you need patent protection when exporting.
While there is a legislative framework for IP in the UAE, there are no specialist IP courts and a lack of specialist local advocates. This can make civil litigation challenging, so enforcement of IP rights is often achieved in other ways, such as by filing complaints about counterfeiters with the police or customs authorities.
Business language
English is widely spoken throughout the country. Although it’s common for written correspondence to be in English, Arabic is often preferred within some public sector organisations. It’s a good idea to have one side of your business card printed in Arabic.
Business culture
Face-to-face meetings are preferred in the UAE because phone calls and emails are sometimes seen as impersonal. However, WhatsApp is increasingly used as a means of communication and LinkedIn, Twitter and Instagram are becoming more popular and are used for the promotion of business.
The working week in UAE is Sunday to Thursday.
Next steps
DIT can advise you on doing business abroad, and help put you in touch with other people who can help such as lawyers and distributors.
