United Arab Emirates Economy Profile - Doing Business
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Doing Business 2019 United Arab Emirates
Economy Profile
United Arab Emirates
Page 1
Doing Business 2019 United Arab Emirates
Economy Profile of United Arab Emirates
Doing Business 2019 Indicators
(in order of appearance in the document)
Starting a business Procedures, time, cost and paid-in minimum capital to start a limited liability company
Dealing with construction permits Procedures, time and cost to complete all formalities to build a warehouse and the quality
control and safety mechanisms in the construction permitting system
Getting electricity Procedures, time and cost to get connected to the electrical grid, and the reliability of the
electricity supply and the transparency of tariffs
Registering property Procedures, time and cost to transfer a property and the quality of the land administration
system
Getting credit Movable collateral laws and credit information systems
Protecting minority investors Minority shareholders rights in related-party transactions and in corporate governance
Paying taxes Payments, time, total tax and contribution rate for a firm to comply with all tax regulations as
well as post-filing processes
Trading across borders Time and cost to export the product of comparative advantage and import auto parts
Enforcing contracts Time and cost to resolve a commercial dispute and the quality of judicial processes
Resolving insolvency Time, cost, outcome and recovery rate for a commercial insolvency and the strength of the
legal framework for insolvency
Labor market regulation Flexibility in employment regulation and aspects of job quality
Page 2Doing Business 2019 United Arab Emirates
About Doing Business
The Doing Business project provides objective measures of business regulations and their enforcement across 190 economies and selected
cities at the subnational and regional level.
The Doing Business project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations applying
to them through their life cycle.
Doing Business captures several important dimensions of the regulatory environment as it applies to local firms. It provides quantitative
indicators on regulation for starting a business, dealing with construction permits, getting electricity, registering property, getting credit,
protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. Doing Business also
measures features of labor market regulation. Although Doing Business does not present rankings of economies on the labor market
regulation indicators or include the topic in the aggregate ease of doing business score or ranking on the ease of doing business, it does
present the data for these indicators.
By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and over time,
Doing Business encourages economies to compete towards more efficient regulation; offers measurable benchmarks for reform; and serves
as a resource for academics, journalists, private sector researchers and others interested in the business climate of each economy.
In addition, Doing Business offers detailed subnational reports, which exhaustively cover business regulation and reform in different cities and
regions within a nation. These reports provide data on the ease of doing business, rank each location, and recommend reforms to improve
performance in each of the indicator areas. Selected cities can compare their business regulations with other cities in the economy or region
and with the 190 economies that Doing Business has ranked.
The first Doing Business report, published in 2003, covered 5 indicator sets and 133 economies. This years report covers 11 indicator sets
and 190 economies. Most indicator sets refer to a case scenario in the largest business city of each economy, except for 11 economies that
have a population of more than 100 million as of 2013 (Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the
Russian Federation and the United States) where Doing Business also collected data for the second largest business city. The data for these
11 economies are a population-weighted average for the 2 largest business cities. The project has benefited from feedback from
governments, academics, practitioners and reviewers. The initial goal remains: to provide an objective basis for understanding and improving
the regulatory environment for business around the world.
More about Doing Business (PDF, 5MB)
Page 3Doing Business 2019 United Arab Emirates
Ease of Doing Business in
Region Middle East & North Africa DB 2019 Rank
190 1
United Arab Emirates
Income Category High income 11
DB 2019 Ease of doing business score
Population 9,400,145
0 100
City Covered Dubai 81.28
DB 2019 Ease of Doing Business Score
0 100
81.28: United Arab Emirates (Rank: 11)
69.85: Bahrain (Rank: 62)
63.50: Saudi Arabia (Rank: 92)
62.20: Kuwait (Rank: 97)
60.98: Jordan (Rank: 104)
58.30: Regional Average (Middle East & North Africa)
Note: The ease of doing business score captures the gap of each economy from the best regulatory performance observed on each of the indicators across all economies
in the Doing Business sample since 2005. An economys ease of doing business score is reflected on a scale from 0 to 100, where 0 represents the lowest and 100
represents the best performance. The ease of doing business ranking ranges from 1 to 190.
Rankings on Doing Business topics - United Arab Emirates
5 1 2
1 7 9
15
25
28
44
55
75
82
Rank
98
109
136
163
190
Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving
a with Electricity Property Credit Minority Taxes across Contracts Insolvency
Business Construction Investors Borders
Permits
Ease of Doing Business Score on Doing Business topics - United Arab Emirates
100.00 99.44
100 94.06
90.88
86.41
80 75.00 75.88
70.00 71.50
Score
60
49.67
40
20
0
Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving
a with Electricity Property Credit Minority Taxes across Contracts Insolvency
Business Construction Investors Borders
Permits
Page 4Doing Business 2019 United Arab Emirates
Starting a Business
This topic measures the number of procedures, time, cost and paid-in minimum capital requirement for a small- to medium-sized limited
liability company to start up and formally operate in each economys largest business city.
To make the data comparable across 190 economies, Doing Business uses a standardized business that is 100% domestically owned, has
start-up capital equivalent to 10 times the income per capita, engages in general industrial or commercial activities and employs between 10
and 50 people one month after the commencement of operations, all of whom are domestic nationals. Starting a Business considers two
types of local limited liability companies that are identical in all aspects, except that one company is owned by 5 married women and the
other by 5 married men. The ranking of economies on the ease of starting a business is determined by sorting their scores for starting a
business. These scores are the simple average of the scores for each of the component indicators.
The most recent round of data collection for the project was completed in May 2018. See the methodology for more information.
What the indicators measure Case study assumptions
Procedures to legally start and formally operate To make the data comparable across economies, several assumptions about the
a company (number) business and the procedures are used. It is assumed that any required information is
readily available and that the entrepreneur will pay no bribes.
" Preregistration (for example, name verification or
reservation, notarization)
The business:
" Registration in the economys largest business
- Is a limited liability company (or its legal equivalent). If there is more than one type
city
of limited liability company in the economy, the most common among domestic firms
" Postregistration (for example, social security is chosen. Information on the most common form is obtained from incorporation
registration, company seal) lawyers or the statistical office.
- Operates in the economys largest business city. For 11 economies the data are
" Obtaining approval from spouse to start a
also collected for the second largest business city.
business or to leave the home to register the
- The entire office space is approximately 929 square meters (10,000 square feet).
company
- Is 100% domestically owned and has five owners, none of whom is a legal entity;
" Obtaining any gender specific document for has a start-up capital of 10 times income per capita and has a turnover of at least
company registration and operation or national 100 times income per capita.
identification card - Performs general industrial or commercial activities, such as the production or sale
of goods or services to the public. The business does not perform foreign trade
Time required to complete each procedure
activities and does not handle products subject to a special tax regime, for example,
(calendar days)
liquor or tobacco. It does not use heavily polluting production processes.
" Does not include time spent gathering - Leases the commercial plant or offices and is not a proprietor of real estate and the
information amount of the annual lease for the office space is equivalent to the income per
capita.
" Each procedure starts on a separate day (2
- Does not qualify for investment incentives or any special benefits.
procedures cannot start on the same day)
- Has at least 10 and up to 50 employees one month after the commencement of
" Procedures fully completed online are recorded operations, all of whom are domestic nationals.
as ‰ day - Has a company deed that is 10 pages long.
" Procedure is considered completed once final
The owners:
document is received
- Have reached the legal age of majority. If there is no legal age of majority, they are
" No prior contact with officials
assumed to be 30 years old.
Cost required to complete each procedure (% of - Are sane, competent, in good health and have no criminal record.
income per capita) - Are married and the marriage is monogamous and registered with the authorities.
- Where the answer differs according to the legal system applicable to the woman or
" Official costs only, no bribes man in question (as may be the case in economies where there is legal plurality), the
" No professional fees unless services required by answer used will be the one that applies to the majority of the population.
law or commonly used in practice
Paid-in minimum capital (% of income per
capita)
" Funds deposited in a bank or with third party
before registration or up to 3 months after
incorporation
Page 5Doing Business 2019 United Arab Emirates
Starting a Business - United Arab Emirates
Standardized Company
Legal form Limited Liability Company
Paid-in minimum capital requirement AED 0
City Covered Dubai
Indicator United Arab Middle East & OECD high Best Regulatory
Emirates North Africa income Performance
Procedure Men (number) 2 7.2 4.9 1 (New Zealand)
Time Men (days) 3.5 20.5 9.3 0.5 (New Zealand)
Cost Men (% of income per capita) 22.8 22.6 3.1 0.0 (Slovenia)
Procedure Women (number) 3 7.9 4.9 1 (New Zealand)
Time Women (days) 4.5 21.2 9.3 0.5 (New Zealand)
Cost Women (% of income per capita) 22.8 22.6 3.1 0.0 (Slovenia)
Paid-in min. capital (% of income per capita) 0.0 8.1 8.6 0.0 (117 Economies)
Figure Starting a Business in United Arab Emirates and comparator economies Ranking and Score
DB 2019 Starting a Business Score
0 100
94.06: United Arab Emirates (Rank: 25)
89.57: Bahrain (Rank: 66)
84.43: Jordan (Rank: 106)
82.00: Regional Average (Middle East & North Africa)
81.40: Kuwait (Rank: 133)
80.07: Saudi Arabia (Rank: 141)
Note: The ranking of economies on the ease of starting a business is determined by sorting their scores for starting a business. These scores
are the simple average of the scores for each of the component indicators.
Page 6Doing Business 2019 United Arab Emirates
Figure Starting a Business in United Arab Emirates Procedure, Time and Cost
Time (days) Cost (% of income per capita)
4.5 25
4
20
3.5
Cost (% of income per capita)
3
Time (days)
15
2.5
2
10
1.5
1
5
0.5
0 0
1 2 3
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology). For details on the procedures reflected here, see the summary below.
Page 7Doing Business 2019 United Arab Emirates
Details Starting a Business in United Arab Emirates Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 APPLIES TO WOMEN ONLY: Obtain husband’s approval to leave the 1 day No charge
marriage home
Agency : Home
As per Personal Status law, art. 71 and 72 the wife must seek her husband’s consent to
leave the marital home. A wife may lose her maintenance if she refuses to move to the
marital home, or leaves the home, or prevents her husband from entering the marital
home, or refuses to travel with her husband, all without legitimate excuses (Art. 71). The
law also requires a wife to be obedient to her husband, maintain the house and its
belongings, and breastfeed infant children unless there is an impediment. A woman may
be considered disobedient, with few exceptions, if she decides to engage in activities
without her husbands consent.
2 Reserve a company name, notarize MoA and Apply for registration at the Less than one day see procedure details
Department of Economic Development (DED) (online procedure)
Agency : Department of Economic Development
To obtain a general trading license and register an LLC, the entrepreneur must complete
an online application using the Instant License service. This application is launched
through the e-services website of the Dubai Department of Economic Development.
Upon completion of the online application, the entrepreneur automatically receives an
establishment card reference number from the Ministry of Human Resources and
Emiratisation. The entrepreneur is also automatically registered for membership at the
Dubai Chamber of Commerce and Industry.
The entrepreneur must carry out the following steps in the Instant License application:
1) Select legal form
2) Select business activities
3) Add the partners according to the legal form, and identify the following points:
- Partners’ share in the Capital
- Distribution of profits and losses between the partners
4) Reserve a new trade name through the following ways:
- Reserve a new trade name
- Use an automatically generated trade name which consists of the trade name reservation
number
5) Add the value of the Capital in the commercial register data of the Company, and the
rest of the fields will be filled automatically
6) An option will be shown to issue an electronic memorandum of association within the
available electronic service, and the customer may choose this option or just skip it.
7) A payment voucher shall be issued
8) Pay the fees
Through the Instant License service, entrepreneurs have the option to sign an electronic
memorandum of association in the same application. They can also skip this step, in
which case they must provide a notarized MoA when it is time to renew their license after
the first year.
Entrepreneurs do not need to have a company lease or location during the first year.
However, when it is time to renew the license a year later, they need to submit a
document proving they have a location and a lease contract.
The following fees must be paid as part of the Instant License application:
1) Department of Economic Development fees: AED 600 (commercial license fee) +
AED 100 (preliminary approval fee) + AED 600 (trade name reservation fee) + AED
2,000 (foreign name containing numbers fee) + AED 15,000 (general trading license
issuing fee) + AED 30 (government cultural fee) + AED 30 (Innovation Dirham fee) +
AED 50 (administrative services fee) + AED 350 (trade name advertisement fee)
2) Dubai Municipality fees: AED 10,000 (market fee) + AED 1,000 (public waste-related
services fees) + AED 80 (service improvement fees)
3) Dubai Chamber of Commerce fees: AED 1,200
4) Ministry of Economy fees: AED 3,000
5) Local trade license fees: AED 100
6) Commercial License - Tejari fees: AED 200
Total fees: AED 34,340
Page 8Doing Business 2019 United Arab Emirates
3 Register native workers with the Ministry of Human Resources and 3 days no charge
Emiratization and with the General Authority for Pension and Social
Security
Agency : Ministry of Human Resources and Emiratization
According to Ministerial decree No 1215/2005, native workers must be registered with
the Ministry of Human Resources and Emiratization and with the General Authority for
Pension and Social Security
The following documents are required for submission during this registration:
- 3 copies of the employment contract
- A copy of employer’s passport
- A copy of the trading license
- A proof that the worker is a UAE citizen
Applies to women only.
Takes place simultaneously with previous procedure.
Page 9Doing Business 2019 United Arab Emirates
Dealing with Construction Permits
This topic tracks the procedures, time and cost to build a warehouseincluding obtaining necessary the licenses and permits, submitting all
required notifications, requesting and receiving all necessary inspections and obtaining utility connections. In addition, the Dealing with
Construction Permits indicator measures the building quality control index, evaluating the quality of building regulations, the strength of
quality control and safety mechanisms, liability and insurance regimes, and professional certification requirements. The most recent round of
data collection was completed in May 2018. See the methodology for more information
What the indicators measure Case study assumptions
Procedures to legally build a warehouse To make the data comparable across economies, several assumptions about the
(number) construction company, the warehouse project and the utility connections are used.
" Submitting all relevant documents and obtaining The construction company (BuildCo):
all necessary clearances, licenses, permits and
certificates - Is a limited liability company (or its legal equivalent) and operates in the economys
largest business city. For 11 economies the data are also collected for the second
" Submitting all required notifications and receiving
largest business city.
all necessary inspections
- Is 100% domestically and privately owned; has five owners, none of whom is a
" Obtaining utility connections for water and legal entity. Has a licensed architect and a licensed engineer, both registered with
sewerage the local association of architects or engineers. BuildCo is not assumed to have any
other employees who are technical or licensed experts, such as geological or
" Registering and selling the warehouse after its
topographical experts.
completion
- Owns the land on which the warehouse will be built and will sell the warehouse
Time required to complete each procedure upon its completion.
(calendar days)
The warehouse:
" Does not include time spent gathering
- Will be used for general storage activities, such as storage of books or stationery.
information
- Will have two stories, both above ground, with a total constructed area of
" Each procedure starts on a separate day approximately 1,300.6 square meters (14,000 square feet). Each floor will be 3
though procedures that can be fully completed meters (9 feet, 10 inches) high and will be located on a land plot of approximately
online are an exception to this rule 929 square meters (10,000 square feet) that is 100% owned by BuildCo, and the
" Procedure is considered completed once final warehouse is valued at 50 times income per capita.
document is received - Will have complete architectural and technical plans prepared by a licensed
architect. If preparation of the plans requires such steps as obtaining further
" No prior contact with officials
documentation or getting prior approvals from external agencies, these are counted
as procedures.
Cost required to complete each procedure (% of
- Will take 30 weeks to construct (excluding all delays due to administrative and
income per capita)
regulatory requirements).
" Official costs only, no bribes
The water and sewerage connections:
Building quality control index (0-15)
- Will be 150 meters (492 feet) from the existing water source and sewer tap. If there
" Quality of building regulations (0-2) is no water delivery infrastructure in the economy, a borehole will be dug. If there is
no sewerage infrastructure, a septic tank in the smallest size available will be
" Quality control before construction (0-1)
installed or built.
" Quality control during construction (0-3) - Will have an average water use of 662 liters (175 gallons) a day and an average
" Quality control after construction (0-3) wastewater flow of 568 liters (150 gallons) a day. Will have a peak water use of
1,325 liters (350 gallons) a day and a peak wastewater flow of 1,136 liters (300
" Liability and insurance regimes (0-2) gallons) a day.
" Professional certifications (0-4) - Will have a constant level of water demand and wastewater flow throughout the
year; will be 1 inch in diameter for the water connection and 4 inches in diameter for
the sewerage connection.
Page 10Doing Business 2019 United Arab Emirates
Dealing with Construction Permits - United Arab Emirates
Standardized Warehouse
Estimated value of warehouse AED 7,527,720.50
City Covered Dubai
Indicator United Arab Middle East & OECD high Best Regulatory
Emirates North Africa income Performance
Procedures (number) 14 16.6 12.7 None in 2017/18
Time (days) 50.5 137.4 153.1 None in 2017/18
Cost (% of warehouse value) 2.3 4.7 1.5 None in 2017/18
Building quality control index (0-15) 15.0 12.1 11.5 15.0 (3 Economies)
Figure Dealing with Construction Permits in United Arab Emirates and comparator economies Ranking and Score
DB 2019 Dealing with Construction Permits Score
0 100
86.41: United Arab Emirates (Rank: 5)
75.71: Saudi Arabia (Rank: 36)
73.40: Bahrain (Rank: 57)
62.35: Kuwait (Rank: 131)
60.47: Jordan (Rank: 139)
59.17: Regional Average (Middle East & North Africa)
Note: The ranking of economies on the ease of dealing with construction permits is determined by sorting their scores for dealing with
construction permits. These scores are the simple average of the scores for each of the component indicators.
Figure Dealing with Construction Permits in United Arab Emirates Procedure, Time and Cost
Time (days) Cost (% of warehouse value)
50 2.5
40 2
Cost (% of warehouse value)
Time (days)
30 1.5
20 1
10 0.5
0 0
1 2 3 4 5 6 7 8 9 10 11 * 12 13 * 14
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology). For details on the procedures reflected here, see the summary below.
Page 11Doing Business 2019 United Arab Emirates
Figure Dealing with Construction Permits in United Arab Emirates and comparator economies Measure of Quality
15.0
15
13.0
12.0 12.0 12.1
11.0
10
Index score
5
0
United Arab Emirates Bahrain Jordan Kuwait Saudi Arabia Middle East & North Africa
Details Dealing with Construction Permits in United Arab Emirates Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Hire a Consultant to supervise construction and undertake all the 1 day AED 150,554
necessary pre-approvals
Agency : Private Firm
Only consultant companies can exclusively apply for a building permit contractor
companies are not eligible to apply.
2 Obtain soil test results 0.5 days no charge
Agency : Dubai Municipality
The consultant must verify soil test results on the following website:
http://login.dm.gov.ae/wps/wcm/connect/0f8cb91f-710b-48e4-9523-
15892858e90c/Soil+Baring+Capacity+-+Industrial+plots.pdf?MOD=AJPERES
3 Request and obtain all No Objection Certificates (NOCs), Civil Defense 25 days AED 13,151
approval and building permit online from the Building Department of Dubai
Municipality
Agency : Building Department of Dubai Municipality
As of 2012, all No Objection Certificates (NOCs) can be applied for online through the
Dubai Municipality portal at the same time as the building permit. NOCs are required
from the following departments and are valid for 2 years:
" Dubai Electricity and Water Authority (DEWA) on electrical wiring installation
drawings
" Dubai Electricity and Water Authority (DEWA) on water connection
" Drainage and Irrigation Department of Dubai Municipality on drainage and sewage
" Etisalat on phone connection
BuildCo also submits the final drawings online at the Building Department of the Dubai
Municipality for approval.
As of May 2014, Dubai Municipality granted direct access for the Dubai Civil Defense
Authority to the Building Permit Control System to review and grant approval for
applicants. Therefore, it became possible to request and obtain the civil defense approval
jointly with the request for the NOCs and building permit. However, it now takes a bit
longer to receive the building permit, as the Civil Defense approval can take up to 1
month.
4 Receive site immobilization inspection 1 day no charge
Agency : Dubai Municipality
Dubai Municipality conducts phased inspections at different stages of the construction.
All inspections and approvals can be requested online and are free of charge.
5 Receive excavation works inspection 1 day no charge
Agency : Building Department of Dubai Municipality
Each industrial area/zone has a nominated inspector who has a list of under-construction
projects and their updated stage of works. The inspector conducts a periodic inspection to
the construction site without the prior knowledge or request of the consultant.
Furthermore, pursuant to the Building Law of 2013, the consultant is required to submit a
systematic checklist online (throughout the project life) to document that the engineering
standards, specifications and stages of work are being executed per the applicable
regulations and checklists. Such a submission is usually made every 2 weeks, in addition
to risk stages. Dubai Municipality has an access to the systematic report in order to track
the progress of the project.
6 Receive inspection at the foundations stage 1 day no charge
Agency : Dubai Municipality
An inspection at the foundations stage is one of the phased inspections conducted by
Dubai Municipality.
Page 12Doing Business 2019 United Arab Emirates
7 Receive special risks inspections (footings) during construction 1 day no charge
Agency : Dubai Municipality
For the case-study warehouse measured by Doing Business, Dubai Municipality performs
2 risk-based inspections at the stages of a) footings and b) frame erection.
8 Receive special risks inspections (frame erection) during construction 1 day no charge
Agency : Dubai Municipality
9 Receive inspection of the structure 1 day no charge
Agency : Dubai Municipality
The inspection of the structure is one of the phased inspections conducted by Dubai
Municipality during construction.
10 Receive unscheduled patrol inspection during construction 1 day no charge
Agency : Dubai Municipality
Patrol inspections are conducted without the prior knowledge or request of the customer.
They are done to check/control the environmental effect of the project on its
surroundings.
11 Request and receive final joint inspection from Dubai Municipality and 3 days AED 100
Dubai Civil Defense and Obtain the completion certificate
Agency : Dubai Municipality
Dubai Municipality introduced a final joint inspection with the Civil Defense. This joint
inspection takes place within 3-5 days of requesting it.
Obtain inspection and approval from DEWA for final water supply 1 day no charge
12 Agency : Dubai Electricity and Water Authority (DEWA)
13 Obtain final water connection from DEWA 14 days AED 2,250
Agency : Dubai Electricity and Water Authority (DEWA)
Build septic tank 3 days AED 4,000
14 Agency : Drainage and Irrigation Department
Takes place simultaneously with previous procedure.
Page 13Doing Business 2019 United Arab Emirates
Details Dealing with Construction Permits in United Arab Emirates Measure of Quality
Answer Score
Building quality control index (0-15) 15.0
Quality of building regulations index (0-2) 2.0
How accessible are building laws and regulations in your economy? (0-1) Available online; 1.0
Free of charge;
In official gazette.
Which requirements for obtaining a building permit are clearly specified in the building List of required 1.0
regulations or on any accessible website, brochure or pamphlet? (0-1) documents; Fees
to be paid;
Required
preapprovals.
Quality control before construction index (0-1) 1.0
Which third-party entities are required by law to verify that the building plans are in Licensed 1.0
compliance with existing building regulations? (0-1) architect;
Licensed
engineer.
Quality control during construction index (0-3) 3.0
What types of inspections (if any) are required by law to be carried out during construction? Inspections by in- 2.0
(0-2) house engineer;
Inspections by
external engineer
or firm;
Inspections at
various phases;
Risk-based
inspections.
Do legally mandated inspections occur in practice during construction? (0-1) Mandatory 1.0
inspections are
always done in
practice.
Quality control after construction index (0-3) 3.0
Is there a final inspection required by law to verify that the building was built in accordance Yes, final 2.0
with the approved plans and regulations? (0-2) inspection is
done by
government
agency; Yes, in-
house engineer
submits report for
final inspection.
Do legally mandated final inspections occur in practice? (0-1) Final inspection 1.0
always occurs in
practice.
Liability and insurance regimes index (0-2) 2.0
Which parties (if any) are held liable by law for structural flaws or problems in the building Architect or 1.0
once it is in use (Latent Defect Liability or Decennial Liability)? (0-1) engineer;
Professional in
charge of the
supervision;
Construction
company; Owner
or investor.
Which parties (if any) are required by law to obtain an insurance policy to cover possible No party is 1.0
structural flaws or problems in the building once it is in use (Latent Defect Liability Insurance required by law
or Decennial Insurance)? (0-1) to obtain
insurance ;
Construction
company;
Insurance is
commonly taken
in practice.
Professional certifications index (0-4) 4.0
Page 14Doing Business 2019 United Arab Emirates
What are the qualification requirements for the professional responsible for verifying that the Minimum number 2.0
architectural plans or drawings are in compliance with existing building regulations? (0-2) of years of
experience;
University degree
in architecture or
engineering;
Being a
registered
architect or
engineer;
Passing a
certification
exam.
What are the qualification requirements for the professional who supervises the construction Minimum number 2.0
on the ground? (0-2) of years of
experience;
University degree
in engineering,
construction or
construction
management;
Being a
registered
architect or
engineer;
Passing a
certification
exam.
Page 15Doing Business 2019 United Arab Emirates
Getting Electricity
This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly
constructed warehouse. Additionally, the reliability of supply and transparency of tariffs index measures reliability of supply, transparency of
tariffs and the price of electricity. The most recent round of data collection for the project was completed in May 2018. See the methodology
for more information.
What the indicators measure Case study assumptions
Procedures to obtain an electricity connection To make the data comparable across economies, several assumptions about the
(number) warehouse, the electricity connection and the monthly consumption are used.
" Submitting all relevant documents and obtaining The warehouse:
all necessary clearances and permits
- Is owned by a local entrepreneur and is used for storage of goods.
" Completing all required notifications and
- Is located in the economys largest business city. For 11 economies the data are
receiving all necessary inspections
also collected for the second largest business city.
" Obtaining external installation works and possibly - Is located in an area where similar warehouses are typically located and is in an
purchasing material for these works area with no physical constraints. For example, the property is not near a railway.
- Is a new construction and is being connected to electricity for the first time.
" Concluding any necessary supply contract and
- Has two stories with a total surface area of approximately 1,300.6 square meters
obtaining final supply
(14,000 square feet). The plot of land on which it is built is 929 square meters
Time required to complete each procedure (10,000 square feet).
(calendar days)
The electricity connection:
" Is at least 1 calendar day
- Is a permanent one with a three-phase, four-wire Y connection with a subscribed
" Each procedure starts on a separate day capacity of 140-kilo-volt-ampere (kVA) with a power factor of 1, when 1 kVA = 1
" Does not include time spent gathering kilowatt (kW).
information - Has a length of 150 meters. The connection is to either the low- or medium-voltage
distribution network and is either overhead or underground, whichever is more
" Reflects the time spent in practice, with little common in the area where the warehouse is located and requires works that involve
follow-up and no prior contact with officials the crossing of a 10-meter road (such as by excavation or overhead lines) but are all
carried out on public land. There is no crossing of other owners private property
Cost required to complete each procedure (% of
because the warehouse has access to a road.
income per capita)
- Does not require work to install the internal wiring of the warehouse. This has
" Official costs only, no bribes already been completed up to and including the customers service panel or
switchboard and the meter base.
" Value added tax excluded
The reliability of supply and transparency of The monthly consumption:
tariffs index (0-8)
- It is assumed that the warehouse operates 30 days a month from 9:00 a.m. to 5:00
" Duration and frequency of power outages (03) p.m. (8 hours a day), with equipment utilized at 80% of capacity on average and that
there are no electricity cuts (assumed for simplicity reasons) and the monthly energy
" Tools to monitor power outages (01)
consumption is 26,880 kilowatt-hours (kWh); hourly consumption is 112 kWh.
" Tools to restore power supply (01) - If multiple electricity suppliers exist, the warehouse is served by the cheapest
supplier.
" Regulatory monitoring of utilities performance
(01) - Tariffs effective in January of the current year are used for calculation of the price of
electricity for the warehouse. Although January has 31 days, for calculation
" Financial deterrents limiting outages (01) purposes only 30 days are used.
" Transparency and accessibility of tariffs (01)
Price of electricity (cents per kilowatt-hour)*
" Price based on monthly bill for commercial
warehouse in case study
*Note: Doing Business measures the price of
electricity, but it is not included in the ease of doing
business score nor the ranking on the ease of
getting electricity.
Page 16Doing Business 2019 United Arab Emirates
Getting Electricity - United Arab Emirates
Standardized Connection
Price of electricity (US cents per kWh) 11.0
Name of utility Dubai Electricity And Water Authority (DEWA)
City Covered Dubai
Indicator United Arab Middle East & OECD high Best Regulatory
Emirates North Africa income Performance
Procedures (number) 2 4.7 4.5 3 (25 Economies)
Time (days) 10 72.4 77.2 18 (3 Economies)
Cost (% of income per capita) 0 479.9 64.2 0.0 (3 Economies)
Reliability of supply and transparency of tariff 8 4.2 7.5 8.0 (27 Economies)
index (0-8)
Figure Getting Electricity in United Arab Emirates and comparator economies Ranking and Score
DB 2019 Getting Electricity Score
0 100
80.49: Jordan (Rank: 62)
79.89: Saudi Arabia (Rank: 64)
74.82: Bahrain (Rank: 82)
71.78: Kuwait (Rank: 95)
69.45: Regional Average (Middle East & North Africa)
100.00: United Arab Emirates (Rank: 1)
Note: The ranking of economies on the ease of getting electricity is determined by sorting their scores for getting electricity. These scores are
the simple average of the scores for all the component indicators except the price of electricity.
Page 17Doing Business 2019 United Arab Emirates
Figure Getting Electricity in United Arab Emirates Procedure, Time and Cost
Time (days) Cost (% of income per capita)
10 1.2
1
8
Cost (% of income per capita)
0.8
Time (days)
6
0.6
4
0.4
2
0.2
0 0
1 2
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology). For details on the procedures reflected here, see the summary below.
Figure Getting Electricity in United Arab Emirates and comparator economies Measure of Quality
8
8
7
6 6 6
6
5
Index score
5
4.2
4
3
2
1
0
United Arab Emirates Bahrain Jordan Kuwait Saudi Arabia Middle East & North Africa
Page 18Doing Business 2019 United Arab Emirates
Details Getting Electricity in United Arab Emirates Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Submit application to Dubai Electricity and Water Authority (DEWA) 2 calendar days AED 0
Agency : Dubai Electricity and Water Authority (DEWA)
Customers are required to have their internal installation executed through an electrical
contracting company with a license issued by the Department of Economic Development.
The contractor is granted access to apply for an electrical connection through the utility’s
online portal as authorized by the trade licenses for electrical works. The system allows
customers’ contractors to submit their application on the online portal. The contractor also
schedules the internal wiring inspection as the application is submitted.
In addition, when the application is submitted, the excavation permit is granted internally
due to DEWAs earlier agreement with Roads and Transport Authority.
The licensed contractor needs to submit the following documents online with the
application through the portal:
1) Affection plan
2) Copy of Building Permit
3) Site layout plan of the project
4) Technical drawings and details
The online application portal can be accessed using the following link:
https://www.dewa.gov.ae/en/consultants-and-contractors/services/connection-services/al-
namoos
2 Receive external connection works and meter installation for final 8 calendar days AED 0
connection
Agency : Dubai Electricity and Water Authority (DEWA)
DEWA proceeds to complete the external connection works, and install the meter to
energize the warehouse. The external works can commence without payment (or any
additional authorization or signature), as the utility has waived electrical connection fees
for all connections up to 150 kVA since February 2018. Moreover, the external
connections works and meter installation is combined with the internal wiring check as
the meter box is installed outside the premises of the customers property.
The only interaction between the utility and the customers contractor is the internal
wiring check - which the utility does in parallel with the external works and meter
installation. Staff from DEWA will check the internal wiring of the building without the
need of any separate application or request (all the needed paperwork is lodged on the
initial application. The check is needed to ensure the installation complies with the
approved drawings as scheduled by the contractor(s). The check is completed with the
presence of the customers’ contractor(s) on the premises. The inspection approval is
processed internally without further customer interaction. If the full electrical installation
complies with the regulations and approved drawings, the electricity can be turned-on
within 2 days.
Takes place simultaneously with previous procedure.
Page 19Doing Business 2019 United Arab Emirates
Details Getting Electricity in United Arab Emirates Measure of Quality
Answer
Reliability of supply and transparency of tariff index (0-8) 8
Total duration and frequency of outages per customer a year (0-3) 3
System average interruption duration index (SAIDI) 0.3
System average interruption frequency index (SAIFI) 0.3
What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI 5.0
Mechanisms for monitoring outages (0-1) 1
Does the distribution utility use automated tools to monitor outages? Yes
Mechanisms for restoring service (0-1) 1
Does the distribution utility use automated tools to restore service? Yes
Regulatory monitoring (0-1) 1
Does a regulatorthat is, an entity separate from the utilitymonitor the utilitys performance on reliability of Yes
supply?
Financial deterrents aimed at limiting outages (0-1) 1
Does the utility either pay compensation to customers or face fines by the regulator (or both) if outages Yes
exceed a certain cap?
Communication of tariffs and tariff changes (0-1) 1
Are effective tariffs available online? Yes
Link to the website, if available online https://www.dewa.go
v.ae/en/customer/ser
vices/consumption-
services/calculator
Are customers notified of a change in tariff ahead of the billing cycle? Yes
Note:
If the duration and frequency of outages is 100 or less, the economy is eligible to score on the Reliability of supply and transparency of tariff
index.
If the duration and frequency of outages is not available, or is over 100, the economy is not eligible to score on the index.
If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index.
Page 20Doing Business 2019 United Arab Emirates
Registering Property
This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to
purchase land and a building that is already registered and free of title dispute. In addition, the topic also measures the quality of the land
administration system in each economy. The quality of land administration index has five dimensions: reliability of infrastructure, transparency
of information, geographic coverage, land dispute resolution, and equal access to property rights. The most recent round of data collection for
the project was completed in May 2018. See the methodology for more information.
What the indicators measure Case study assumptions
Procedures to legally transfer title on To make the data comparable across economies, several assumptions about the
immovable property (number) parties to the transaction, the property and the procedures are used.
" Preregistration procedures (for example, The parties (buyer and seller):
checking for liens, notarizing sales agreement,
paying property transfer taxes) - Are limited liability companies (or the legal equivalent).
- Are located in the periurban area of the economys largest business city. For 11
" Registration procedures in the economy’s largest
economies the data are also collected for the second largest business city.
business city.
- Are 100% domestically and privately owned.
" Postregistration procedures (for example, filling - Have 50 employees each, all of whom are nationals.
title with municipality) - Perform general commercial activities.
Time required to complete each procedure The property (fully owned by the seller):
(calendar days)
- Has a value of 50 times income per capita, which equals the sale price.
" Does not include time spent gathering - Is fully owned by the seller.
information - Has no mortgages attached and has been under the same ownership for the past
10 years.
" Each procedure starts on a separate day -
- Is registered in the land registry or cadastre, or both, and is free of title disputes.
though procedures that can be fully completed
online are an exception to this rule - Is located in a periurban commercial zone, and no rezoning is required.
- Consists of land and a building. The land area is 557.4 square meters (6,000
" Procedure is considered completed once final square feet). A two-story warehouse of 929 square meters (10,000 square feet) is
document is received located on the land. The warehouse is 10 years old, is in good condition, has no
" No prior contact with officials heating system and complies with all safety standards, building codes and legal
requirements. The property, consisting of land and building, will be transferred in its
Cost required to complete each procedure (% of entirety.
property value) - Will not be subject to renovations or additional construction following the purchase.
- Has no trees, natural water sources, natural reserves or historical monuments of
" Official costs only (such as administrative fees,
any kind.
duties and taxes).
- Will not be used for special purposes, and no special permits, such as for
" Value Added Tax, Capital Gains Tax and illicit residential use, industrial plants, waste storage or certain types of agricultural
payments are excluded activities, are required.
- Has no occupants, and no other party holds a legal interest in it.
Quality of land administration index (0-30)
" Reliability of infrastructure index (0-8)
" Transparency of information index (06)
" Geographic coverage index (08)
" Land dispute resolution index (08)
" Equal access to property rights index (-20)
Page 21Doing Business 2019 United Arab Emirates
Registering Property - United Arab Emirates
Indicator United Arab Middle East & OECD high Best Regulatory
Emirates North Africa income Performance
Procedures (number) 2 5.6 4.7 1 (4 Economies)
Time (days) 1.5 29.7 20.1 1 (New Zealand)
Cost (% of property value) 0.2 5.7 4.2 0.0 (Saudi Arabia)
Quality of the land administration index (0-30) 22.0 14.2 23.0 None in 2017/18
Figure Registering Property in United Arab Emirates and comparator economies Ranking and Score
DB 2019 Registering Property Score
0 100
90.88: United Arab Emirates (Rank: 7)
81.61: Saudi Arabia (Rank: 24)
81.07: Bahrain (Rank: 26)
67.54: Kuwait (Rank: 69)
66.40: Jordan (Rank: 72)
62.11: Regional Average (Middle East & North Africa)
Note: The ranking of economies on the ease of registering property is determined by sorting their scores for registering property. These
scores are the simple average of the scores for each of the component indicators.
Figure Registering Property in United Arab Emirates Procedure, Time and Cost
Time (days) Cost (% of property value)
0.14
1.4
0.12
1.2
Cost (% of property value)
0.1
1
Time (days)
0.08
0.8
0.06
0.6
0.4 0.04
0.2 0.02
0 0
1 2
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology). For details on the procedures reflected here, see the summary below.
Page 22Doing Business 2019 United Arab Emirates
Figure Registering Property in United Arab Emirates and comparator economies Measure of Quality
30
25 22.5
22.0
20
Index score
17.5 17.0
15 14.2
10.5
10
5
0
United Arab Emirates Bahrain Jordan Kuwait Saudi Arabia Middle East & North Africa
Details Registering Property in United Arab Emirates Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 The parties’ submit the application at the Registration trustee’s office 1 day AED 4,000;
Agency : Registration trustee (Registration trustee
fee of AED 2,000 (If
In October 2012, the Dubai Land Department started licensing companies to act in its
the
behalf and use its system for property registration, among other services. As of August
registered/transferred
2013, all transactions must be made through the 13 Registration trustees throughout
property value less
Dubai.
Moreover, in April, 2014, the United Arab Emirates enacted administrative decree 52. It than AED 500,000) or
launched a standard contract for property transfers making it possible for parties to AED 4,000 (If the
process a transfer without the need to consult a legal expert. registered/transferred
The parties have to present themselves at one of the registration trustee’s office with the property value equal
standard contract along with the following documents. or more than AED
1) Company Trade License (Original or Copy) 500,000))
2) Shareholder Certificate (Arabic & English)
3) Memorandum of the company (Arabic & English)
4) Board Resolution (Arabic & English)
5) Power of Attorney from Company (Arabic & English)
6) Passport copies of shareholders
Parties then sign the contract and submit the application to one of the office’s employees.
2 Register title at the Dubai Land Department Less than one day, AED 10,000; (AED 10
Agency : Land Department online for registering each
Once the documentation is submitted, the trustee proceeds to register the new owner on square meter of land,
the Dubai Land Department. The offices have access to the Land Department system and
with a minimum of
registration is completed on the spot within a couple of hours.
AED 10,000)
Takes place simultaneously with previous procedure.
Page 23Doing Business 2019 United Arab Emirates
Details Registering Property in United Arab Emirates Measure of Quality
Answer Score
Reliability of infrastructure index (0-8) 8.0
What is the institution in charge of immovable property registration? Dubai Land
Department
In what format are the majority of title or deed records kept in the largest business cityin a Computer/Fully 2.0
paper format or in a computerized format (scanned or fully digital)? digital
Is there an electronic database for checking for encumbrances (liens, mortgages, restrictions Yes 1.0
and the like)?
Institution in charge of the plans showing legal boundaries in the largest business city: Dubai Land
Department
In what format are the majority of maps of land plots kept in the largest business cityin a Computer/Fully 2.0
paper format or in a computerized format (scanned or fully digital)? digital
Is there an electronic database for recording boundaries, checking plans and providing Yes 1.0
cadastral information (geographic information system)?
Is the information recorded by the immovable property registration agency and the cadastral Different 1.0
or mapping agency kept in a single database, in different but linked databases or in separate databases but
databases? linked
Do the immovable property registration agency and cadastral or mapping agency use the Yes 1.0
same identification number for properties?
Transparency of information index (06) 4.0
Who is able to obtain information on land ownership at the agency in charge of immovable Freely accessible 1.0
property registration in the largest business city? by anyone
Is the list of documents that are required to complete any type of property transaction made Yes, online 0.5
publicly availableand if so, how?
Link for online access: http://www.dubail
and.gov.ae/Engli
sh/services/Real
estateservices/P
ages/Real-
Estate-
Services.aspx
Is the applicable fee schedule for any property transaction at the agency in charge of Yes, online 0.5
immovable property registration in the largest business city made publicly availableand if
so, how?
Link for online access: http://www.dubail
and.gov.ae/Engli
sh/services/Real
estateservices/P
ages/Real-
Estate-
Services.aspx
and in
registration
trustees’
websites
Does the agency in charge of immovable property registration commit to delivering a legally Yes, online 0.5
binding document that proves property ownership within a specific time frameand if so, how
does it communicate the service standard?
Link for online access: http://www.dubail
and.gov.ae/Engli
sh/services/Real
estateservices/P
ages/Real-
Estate-
Services.aspx
Is there a specific and separate mechanism for filing complaints about a problem that No 0.0
occurred at the agency in charge of immovable property registration?
Contact information:
Page 24Doing Business 2019 United Arab Emirates
Are there publicly available official statistics tracking the number of transactions at the Yes 0.5
immovable property registration agency?
Number of property transfers in the largest business city in 2017: 49279.0
Who is able to consult maps of land plots in the largest business city? Only 0.0
intermediaries
and interested
parties
Is the applicable fee schedule for accessing maps of land plots made publicly available Yes, online 0.5
and if so, how?
Link for online access: http://www.dubail
and.gov.ae/Engli
sh/Real%20Estat
e%20Services/S
urvey%20Service
s.pdf
Does the cadastral or mapping agency commit to delivering an updated map within a Yes, online 0.5
specific time frameand if so, how does it communicate the service standard?
Link for online access: http://www.dubail
and.gov.ae/Engli
sh/Real%20Estat
e%20Services/S
urvey%20Service
s.pdf
Is there a specific and separate mechanism for filing complaints about a problem that No 0.0
occurred at the cadastral or mapping agency?
Contact information:
Geographic coverage index (08) 4.0
Are all privately held land plots in the economy formally registered at the immovable property No 0.0
registry?
Are all privately held land plots in the largest business city formally registered at the Yes 2.0
immovable property registry?
Are all privately held land plots in the economy mapped? No 0.0
Are all privately held land plots in the largest business city mapped? Yes 2.0
Land dispute resolution index (08) 6.0
Does the law require that all property sale transactions be registered at the immovable Yes 1.5
property registry to make them opposable to third parties?
Is the system of immovable property registration subject to a state or private guarantee? Yes 0.5
Is there a specific compensation mechanism to cover for losses incurred by parties who No 0.0
engaged in good faith in a property transaction based on erroneous information certified by
the immovable property registry?
Does the legal system require a control of legality of the documents necessary for a property Yes 0.5
transaction (e.g., checking the compliance of contracts with requirements of the law)?
If yes, who is responsible for checking the legality of the documents? Registrar;
Does the legal system require verification of the identity of the parties to a property Yes 0.5
transaction?
If yes, who is responsible for verifying the identity of the parties? Registrar;
Is there a national database to verify the accuracy of identity documents? Yes 1.0
For a standard land dispute between two local businesses over tenure rights of a property Dubai court of
worth 50 times gross national income (GNI) per capita and located in the largest business first instance
city, what court would be in charge of the case in the first instance?
How long does it take on average to obtain a decision from the first-instance court for such a Between 1 and 2 2.0
case (without appeal)? years
Are there any statistics on the number of land disputes in the first instance? No 0.0
Page 25Doing Business 2019 United Arab Emirates
Number of land disputes in the largest business city in 2017:
Equal access to property rights index (-20) 0.0
Do unmarried men and unmarried women have equal ownership rights to property? Yes
Do married men and married women have equal ownership rights to property? Yes 0.0
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