Doing Business 2018 United Arab Emirates
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Doing Business 2018 United Arab Emirates
Page 1
Doing Business 2018 United Arab Emirates
Economy Profile of United Arab Emirates
Doing Business 2018 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, 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 and total tax 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 2018 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 distance to frontier 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 year’s 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.
The distance to frontier (DTF) measure shows the distance of each economy to the “frontier,” which represents the best performance
observed on each of the indicators across all economies in the Doing Business sample since 2005. An economy’s distance to frontier is
reflected on a scale from 0 to 100, where 0 represents the lowest performance and 100 represents the frontier. The ease of doing business
ranking ranges from 1 to 190. The ranking of 190 economies is determined by sorting the aggregate distance to frontier scores, rounded to
two decimals.
More about Doing Business (PDF, 5MB)
Page 3Doing Business 2018 United Arab Emirates
Ease of Doing Business in DB 2018 Rank
Region Middle East & North Africa
190 1
United Arab Emirates
Income Category High income 21
DB 2018 Distance to Frontier (DTF)
Population 9,269,612
0 100
City Covered Dubai 78.73
DB 2018 Distance to Frontier (DTF)
0 100
78.73: United Arab Emirates (Rank: 21)
68.13: Bahrain (Rank: 66)
62.50: Saudi Arabia (Rank: 92)
61.23: Kuwait (Rank: 96)
60.58: Jordan (Rank: 103)
56.72: Regional Average (Middle East & North Africa)
Note: The distance to frontier (DTF) measure shows the distance of each economy to the “frontier,” which represents the best performance observed on each of the
indicators across all economies in the Doing Business sample since 2005. An economy’s distance to frontier is reflected on a scale from 0 to 100, where 0 represents the
lowest performance and 100 represents the frontier. The ease of doing business ranking ranges from 1 to 190.
Rankings on Doing Business topics - United Arab Emirates
2 1 1
1 10 10 12
28
51
55
69
82 90 91
Rank
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
Distance to Frontier (DTF) on Doing Business topics - United Arab Emirates
99.92 99.44
100
91.16 90.02
86.38
80 75.00 74.02
71.50
60
DTF
50.00 49.80
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 2018 United Arab Emirates
Starting a Business
This topic measures the paid-in minimum capital requirement, number of procedures, time and cost for a small- to medium-sized limited
liability company to start up and formally operate in economy’s 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 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 distance to frontier score for each indicator is the average of the scores obtained for each of the component indicators.
The most recent round of data collection for the project was completed in June 2017. 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) business and the procedures are used. It is assumed that any required information is
readily available and that the entrepreneur will pay no bribes.
â— Submitting all relevant documents and obtaining
all necessary clearances, licenses, permits and
The business:
certificates
â— Submitting all required notifications and receiving - Is a limited liability company (or its legal equivalent). If there is more than one type
all necessary inspections of limited liability company in the economy, the most common among domestic firms
is chosen. Information on the most common form is obtained from incorporation
â— Obtaining utility connections for water and
lawyers or the statistical office.
sewerage
- Operates in the economy’s largest business city and the entire office space is
â— Registering and selling the warehouse after its approximately 929 square meters (10,000 square feet). For 11 economies the data
completion are also collected for the second largest business city.
- Is 100% domestically owned and has five owners, none of whom is a legal entity;
Time required to complete each procedure
and has a start-up capital of 10 times income per capita and has a turnover of at
(calendar days)
least 100 times income per capita.
â— Does not include time spent gathering information - Performs general industrial or commercial activities, such as the production or sale
â— Each procedure starts on a separate day (2 of goods or services to the public. The business does not perform foreign trade
procedures cannot start on the same day) activities and does not handle products subject to a special tax regime, for example,
liquor or tobacco. It does not use heavily polluting production processes.
â— Procedures fully completed online are recorded
- Leases the commercial plant or offices and is not a proprietor of real estate and the
as ½ day
amount of the annual lease for the office space is equivalent to 1 times income per
â— Procedure is considered completed once final capita.
document is received - Does not qualify for investment incentives or any special benefits.
â— No prior contact with officials - Has at least 10 and up to 50 employees one month after the commencement of
operations, all of whom are domestic nationals.
Cost required to complete each procedure (% of - Has a company deed 10 pages long.
income per capita)
The owners:
â— Official costs only, no bribes
â— No professional fees unless services required by - Have reached the legal age of majority. If there is no legal age of majority, they are
law or commonly used in practice assumed to be 30 years old.
- Are sane, competent, in good health and have no criminal record.
Paid-in minimum capital (% of income per capita - Are married and the marriage is monogamous and registered with the authorities.
â— Funds deposited in a bank or with third party - Where the answer differs according to the legal system applicable to the woman or
before registration or up to 3 months after man in question (as may be the case in economies where there is legal plurality), the
incorporation answer used will be the one that applies to the majority of the population.
Page 5Doing Business 2018 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 Overall Best
Emirates North Africa income Performer
Procedure – Men (number) 4 7.7 4.9 1.00 (New Zealand)
Time – Men (days) 8 18.6 8.5 0.50 (New Zealand)
Cost – Men (% of income per capita) 13.4 18.7 3.1 0.00 (United Kingdom)
Procedure – Women (number) 5 8.4 4.9 1.00 (New Zealand)
Time – Women (days) 9 19.3 8.5 0.50 (New Zealand)
Cost – Women (% of income per capita) 13.4 18.7 3.1 0.00 (United Kingdom)
Paid-in min. capital (% of income per capita) 0.0 9.9 8.7 0.00 (113 Economies)
Figure – Starting a Business in United Arab Emirates and comparator economies – Ranking and DTF
DB 2018 Distance to Frontier (DTF)
0 100
91.16: United Arab Emirates (Rank: 51)
87.87: Bahrain (Rank: 75)
84.40: Jordan (Rank: 105)
82.05: Regional Average (Middle East & North Africa)
80.04: Saudi Arabia (Rank: 135)
77.21: Kuwait (Rank: 149)
Note: The ranking of economies on the ease of starting a business is determined by sorting their distance to frontier scores for starting a
business. These scores are the simple average of the distance to frontier scores for each of the component indicators.
Page 6Doing Business 2018 United Arab Emirates
Figure – Starting a Business in United Arab Emirates – Procedure, Time and Cost
Time (days) Cost (% of income per capita)
9 9
8 8
Cost (% of income per capita)
7 7
6 6
Time (days)
5 5
4 4
3 3
2 2
1 1
0 0
1 2 3 4 5
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 2018 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 husband’s consent.
2 Reserve a company name, notarize MoA and Apply for registration at the 1 day see procedure details
Department of Economic Development (DED)
Agency : Department of Economic Development
To register a company and submit a registration application, the entrepreneur must first
obtain preliminary approvals from the Licensing Section of the Dubai Department of
Economic Development (DED) on the business activities, trade name, and identity of
partners. The name availability check, reservation, and payment can now be done online
at the website of DED.
Reserve a company name and Apply for registration at the Department of Economic
Development (DED) and notarize the company’s MoA costs: AED 600 (trade name
reservation) + AED 100 (initial approval) +AED 10 for Innovation Dirham Fees + AED
10 Government Cultural fees+ AED 500 for the printing the electronic MoA + notary
fees of 0.25% of the capital with a cap at AED 10,000.
Page 8Doing Business 2018 United Arab Emirates
3 File company documents with the Department for Economic Development 3 days see procedure details
(DED); Obtain trade license and Register for membership at the Dubai
Chamber of Commerce and Industry (DCCI)
Agency : Department for Economic Development
To obtain the Trade License and Commercial Registration Certificate, the LLC must
submit the following original documents to the Commercial Registry at the DED Trade
License and Commercial Registration Department. These documents can also be
submitted online due to the ongoing efforts by DED to render electronic registration
available and convenient.
- The prescribed application form, signed by the company manager(s) or their legal
representative(s).
- The memorandum of association (an original and a copy).
- A letter issued by the DED, attesting to the company name approval.
- The original letter of company approval, issued by the DED Committee of Limited
Liability Companies.
- Passport copy of each partner.
If Commercial Registry officials deem the documentation to be in order, the company
name will be entered into the Commercial Register. The DED in integrated with the
Federal Ministry of Economy and can arrange for publication:
- Notarized memorandum of association (copy).
- The application for entry of the company name in the Commercial Register (copy).
- Extract of the entry of the company name in the Commercial Register.
Publication takes several months. However, this time frame is not important because the
authorities will accept a copy of the Ministry's receipt of publication fee payment. After
the publication, the Ministry of Economy issues its approval letter.
Before the newly formed company can begin operations, it must apply to the DED for a
trade license. After the notary public at the Commercial Registry notarizes the
memorandum of association, a license application form is completed in Arabic, signed by
the authorized company signatory and filed with the DED in duplicate. The DED files
one copy and forwards the other to the UAE Federal Ministry of Economy.
The trade license application must be filed with the applicable fee and the following
documents:
- The prescribed form for setting out the proposed company name in Arabic and English.
- The original lease for the company’s office premises.
- The prescribed form for obtaining the Dubai Municipality Building Department’s
clearance on the suitability of the office premises.
All business activities fall into three categories of licenses: (1) commercial licenses,
covering all kinds of trading activity; (2) professional licenses, covering professions,
services, craftsmen, and artisans; and (3) industrial licenses, establishing industrial or
manufacturing activity.
Upon the conclusion of this procedure, the DED issues the original Trade License and
Commercial Registration certificates. Upon presentation of the receipts showing payment
of the Ministry publication fee and the Chamber of Commerce membership fee, the DED
will issue the original trade license and certificate of commercial registration for the
limited liability company and the DCCI membership. Alternatively, the online license
application is available whereby the applicant submits the filled-in form, completes
online payment and instantly receives the license certificate which can then be printed
out.
Fees are: 5% of the value of the lease agreement + AED 3,000 waste fees + AED 500 for
company registration + AED 350 fees for name board + AED 1,200 for Chamber of
Commerce membership registration
4 Apply for the establishment card at the Ministry of Human Resources and 1 day AED 2,000
Emiratization
Agency : Ministry of Human Resources and Emiratization
Either the entrepreneur or the authorized representative of the company should go in
person to apply for the "Establishment Card" at the Ministry of Labor. Provided the trade
license is obtained and the fees are paid, the "Establishment Card" can be issued the same
day.
Page 9Doing Business 2018 United Arab Emirates
5 Register native workers with the Ministry of Human Resources and 1 day 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 10Doing Business 2018 United Arab Emirates
Dealing with Construction Permits
This topic tracks the procedures, time and cost to build a warehouse—including 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 June 2017. 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.
â— 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 economy’s
â— Submitting all required notifications and receiving largest business city. For 11 economies the data are also collected for the second
all necessary inspections largest business city.
- Is 100% domestically and privately owned; has five owners, none of whom is a
â— 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
â— Registering and selling the warehouse after its other employees who are technical or licensed experts, such as geological or
completion topographical experts.
- 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)
â— Does not include time spent gathering information The warehouse:
â— Each procedure starts on a separate day— - Will be used for general storage activities, such as storage of books or stationery.
though procedures that can be fully completed - Will have two stories, both above ground, with a total constructed area of
online are an exception to this rule approximately 1,300.6 square meters (14,000 square feet). Each floor will be 3
â— Procedure is considered completed once final meters (9 feet, 10 inches) high and will be located on a land plot of approximately
document is received 929 square meters (10,000 square feet) that is 100% owned by BuildCo, and the
warehouse is valued at 50 times income per capita.
â— No prior contact with officials
- Will have complete architectural and technical plans prepared by a licensed
Cost required to complete each procedure (% of architect. If preparation of the plans requires such steps as obtaining further
income per capita) documentation or getting prior approvals from external agencies, these are counted
as procedures.
â— Official costs only, no bribes
- Will take 30 weeks to construct (excluding all delays due to administrative and
regulatory requirements).
Building quality control index (0-15)
â— Sum of the scores of six component indices: The water and sewerage connections:
â— Quality of building regulations (0-2) - Will be 150 meters (492 feet) from the existing water source and sewer tap. If there
â— Quality control before construction (0-1) 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
â— Quality control during construction (0-3)
installed or built.
â— Quality control after construction (0-3) - Will have an average water use of 662 liters (175 gallons) a day and an average
â— Liability and insurance regimes (0-2) wastewater flow of 568 liters (150 gallons) a day. Will have a peak water use of
â— Professional certifications (0-4) 1,325 liters (350 gallons) a day and a peak wastewater flow of 1,136 liters (300
gallons) a day.
- 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 11Doing Business 2018 United Arab Emirates
Dealing with Construction Permits - United Arab Emirates
Standardized Company
Estimated value of warehouse AED 6,950,717.20
City Covered Dubai
Indicator United Arab Middle East & OECD high Overall Best
Emirates North Africa income Performer
Procedures (number) 14 16.2 12.5 7.00 (Denmark)
Time (days) 50.5 132.1 154.6 27.5 (Korea, Rep.)
Cost (% of warehouse value) 2.3 4.3 1.6 0.10 (5 Economies)
Building quality control index (0-15) 15.0 11.8 11.4 15.00 (3 Economies)
Figure – Dealing with Construction Permits in United Arab Emirates and comparator economies – Ranking and DTF
DB 2018 Distance to Frontier (DTF)
0 100
86.38: United Arab Emirates (Rank: 2)
75.52: Saudi Arabia (Rank: 38)
73.73: Bahrain (Rank: 47)
65.74: Jordan (Rank: 110)
62.20: Kuwait (Rank: 129)
59.84: Regional Average (Middle East & North Africa)
Note: The ranking of economies on the ease of dealing with construction permits is determined by sorting their distance to frontier scores for
dealing with construction permits. These scores are the simple average of the distance to frontier scores for each of the component
indicators.
Figure – Dealing with Construction Permits in United Arab Emirates – Procedure, Time and Cost
Time (days) Cost (% of income per capita)
50 2.5
Cost (% of income per capita)
40 2
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 12Doing Business 2018 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 11.8
11.0
Index score
10
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 139,014
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 13Doing Business 2018 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 14Doing Business 2018 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.
Page 15Doing Business 2018 United Arab Emirates
Professional certifications index (0-4) 4.0
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 16Doing Business 2018 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 June 2017. 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) construction company, the warehouse project and the utility connections are used.
â— Submitting all relevant documents and obtaining
The construction company (BuildCo):
all necessary clearances and permits
â— Completing all required notifications and - Is a limited liability company (or its legal equivalent) and operates in the economy’s
receiving all necessary inspections largest business city. For 11 economies the data are also collected for the second
largest business city.
â— Obtaining external installation works and possibly
- Is 100% domestically and privately owned; has five owners, none of whom is a
purchasing material for these works
legal entity. Has a licensed architect and a licensed engineer, both registered with
â— Concluding any necessary supply contract and the local association of architects or engineers. BuildCo is not assumed to have any
obtaining final supply other employees who are technical or licensed experts, such as geological or
topographical experts.
Time required to complete each procedure
- Owns the land on which the warehouse will be built and will sell the warehouse
(calendar days)
upon its completion.
â— Is at least 1 calendar day
The warehouse:
â— Each procedure starts on a separate day
â— Does not include time spent gathering information - Will be used for general storage activities, such as storage of books or stationery.
- Will have two stories, both above ground, with a total constructed area of
â— Reflects the time spent in practice, with little
approximately 1,300.6 square meters (14,000 square feet). Each floor will be 3
follow-up and no prior contact with officials
meters (9 feet, 10 inches) high and will be located on a land plot of approximately
Cost required to complete each procedure (% of 929 square meters (10,000 square feet) that is 100% owned by BuildCo, and the
warehouse is valued at 50 times income per capita.
income per capita)
- Will have complete architectural and technical plans prepared by a licensed
â— Official costs only, no bribes architect. If preparation of the plans requires such steps as obtaining further
â— Value added tax excluded documentation or getting prior approvals from external agencies, these are counted
as procedures.
The reliability of supply and transparency of - Will take 30 weeks to construct (excluding all delays due to administrative and
tariffs index (0-8) regulatory requirements).
â— Duration and frequency of power outages (0–3)
The water and sewerage connections:
â— Tools to monitor power outages (0–1)
- Will be 150 meters (492 feet) from the existing water source and sewer tap. If there
â— Tools to restore power supply (0–1)
is no water delivery infrastructure in the economy, a borehole will be dug. If there is
â— Regulatory monitoring of utilities’ performance no sewerage infrastructure, a septic tank in the smallest size available will be
(0–1) installed or built.
â— Financial deterrents limiting outages (0–1) - Will have an average water use of 662 liters (175 gallons) a day and an average
wastewater flow of 568 liters (150 gallons) a day. Will have a peak water use of
â— Transparency and accessibility of tariffs (0–1)
1,325 liters (350 gallons) a day and a peak wastewater flow of 1,136 liters (300
Price of electricity (cents per kilowatt-hour)* gallons) a day.
- Will have a constant level of water demand and wastewater flow throughout the
â— Price based on monthly bill for commercial
year; will be 1 inch in diameter for the water connection and 4 inches in diameter for
warehouse in case study
the sewerage connection.
*Note: Doing Business measures the price of
electricity, but it is not included in the distance to
frontier score nor the ranking on the ease of getting
electricity.
Page 17Doing Business 2018 United Arab Emirates
Getting Electricity - United Arab Emirates
Standardized Company
Price of electricity (US cents per kWh) 12.3
Name of utility Dubai Electricity And Water Authority (DEWA)
City Covered Dubai
Indicator United Arab Middle East & OECD high Overall Best
Emirates North Africa income Performer
Procedures (number) 2 4.8 4.7 2 (United Arab
Emirates)
Time (days) 10 81.4 79.1 10 (United Arab
Emirates)
Cost (% of income per capita) 25.2 780.3 63.0 0.00 (Japan)
Reliability of supply and transparency of tariff 8 4.2 7.4 8.00 (28 Economies)
index (0-8)
Figure – Getting Electricity in United Arab Emirates and comparator economies – Ranking and DTF
DB 2018 Distance to Frontier (DTF)
0 100
99.92: United Arab Emirates (Rank: 1)
83.33: Jordan (Rank: 40)
79.88: Saudi Arabia (Rank: 59)
74.83: Bahrain (Rank: 79)
69.60: Kuwait (Rank: 97)
67.21: Regional Average (Middle East & North Africa)
Note: The ranking of economies on the ease of getting electricity is determined by sorting their distance to frontier scores for getting
electricity. These scores are the simple average of the distance to frontier scores for each of the component indicators.
Page 18Doing Business 2018 United Arab Emirates
Figure – Getting Electricity in United Arab Emirates – Procedure, Time and Cost
Time (days) Cost (% of income per capita)
10 30
Cost (% of income per capita)
25
8
20
Time (days)
6
15
4
10
2
5
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
7
6 6
6
Index score
5
5
4.2
4
3
2
1
0
United Arab Emirates Bahrain Jordan Kuwait Saudi Arabia Middle East & North Africa
Page 19Doing Business 2018 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) and 8 calendar days AED 0
obtain external works
Agency : Dubai Electricity and Water Authority (DEWA)
The customer is required to have their electrical works 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 through the trade licenses for electrical works. The system
allows customers to submit their application and track the status of it online.
The licensed contractor needs to submit the following documents:
1) Affection plan
2) Copy of Building Permit
3) Site layout plan of the project
4) Technical drawings and details
For more details and the online application portal:
https://www.dewa.gov.ae/en/consultants-and-contractors/services/connection-services/al-
namoos
2 Apply for and receive internal wiring inspection and obtain meter 2 calendar days AED 35,000
installation and final connection from DEWA
Agency : Dubai Electricity and Water Authority (DEWA)
Internal wiring inspection is scheduled through the online portal by the licensed
contractor.
Staff from DEWA then check the internal wiring of the building to ensure it complies
with the approved drawings. DEWA will install the meter and connect the warehouse to
electricity upon successful inspections. Inspections approval is communicated internally
within the utility, enabling the utility to carry out external electrical works immediately
without the need for the customer to be present.
If the full electrical installation is in compliance with the regulations and approved
drawings, then inspection and final supply can be carried out within 2 days.
Takes place simultaneously with previous procedure.
Page 20Doing Business 2018 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 regulator—that is, an entity separate from the utility—monitor the utility’s 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 21Doing Business 2018 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 June 2017.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.
â— 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).
â— Registration procedures in the economy's largest - Are located in the periurban area of the economy’s largest business city. For 11
business citya. economies the data are also collected for the second largest business city.
- Are 100% domestically and privately owned.
â— 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.
â— Does not include time spent gathering information
- Is fully owned by the seller.
â— Each procedure starts on a separate day - though - Has no mortgages attached and has been under the same ownership for the past
procedures that can be fully completed online are 10 years.
an exception to this rule
- Is registered in the land registry or cadastre, or both, and is free of title disputes.
â— Procedure is considered completed once final - Is located in a periurban commercial zone, and no rezoning is required.
document is received - Consists of land and a building. The land area is 557.4 square meters (6,000
â— No prior contact with officials square feet). A two-story warehouse of 929 square meters (10,000 square feet) is
located on the land. The warehouse is 10 years old, is in good condition, has no
Cost required to complete each procedure (% of heating system and complies with all safety standards, building codes and legal
property value) requirements. The property, consisting of land and building, will be transferred in its
â— Official costs only (such as administrative fees, entirety.
duties and taxes). - Will not be subject to renovations or additional construction following the purchase.
- Has no trees, natural water sources, natural reserves or historical monuments of
â— Value Added Tax, Capital Gains Tax and illicit
any kind.
payments are excluded
- Will not be used for special purposes, and no special permits, such as for
Quality of land administration index (0-30) residential use, industrial plants, waste storage or certain types of agricultural
activities, are required.
â— Reliability of infrastructure index (0-8) - Has no occupants, and no other party holds a legal interest in it.
â— Transparency of information index (0–6)
â— Geographic coverage index (0–8)
â— Land dispute resolution index (0–8)
â— Equal access to property rights index (-2–0)
Page 22Doing Business 2018 United Arab Emirates
Registering Property - United Arab Emirates
Standardized Company
Property value AED 6,950,717.20
City Covered Dubai
Indicator United Arab Middle East & OECD high Overall Best
Emirates North Africa income Performer
Procedures (number) 2 5.7 4.6 1.00 (4 Economies)
Time (days) 1.5 30.3 22.3 1.00 (3 Economies)
Cost (% of property value) 0.2 6.0 4.2 0.00 (5 Economies)
Quality of the land administration index (0-30) 21.0 13.4 22.7 29.00 (Singapore)
Figure – Registering Property in United Arab Emirates and comparator economies – Ranking and DTF
DB 2018 Distance to Frontier (DTF)
0 100
90.02: United Arab Emirates (Rank: 10)
81.19: Saudi Arabia (Rank: 24)
81.07: Bahrain (Rank: 25)
67.55: Kuwait (Rank: 70)
66.40: Jordan (Rank: 72)
60.91: Regional Average (Middle East & North Africa)
Note: The ranking of economies on the ease of registering property is determined by sorting their distance to frontier scores for registering
property. These scores are the simple average of the distance to frontier scores for each of the component indicators.
Figure – Registering Property in United Arab Emirates – Procedure, Time and Cost
Time (days) Cost (% of income per capita)
0.16
1.4
0.14
Cost (% of income per capita)
1.2
0.12
1
Time (days)
0.1
0.8
0.08
0.6
0.06
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 23Doing Business 2018 United Arab Emirates
Figure – Registering Property in United Arab Emirates and comparator economies – Measure of Quality
30
25 22.5
21.0
Index score
20 17.5 17.0
15 13.4
10.0
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 Registration trustee
Agency : Registration trustee fee of AED 2,000 (If
the
In October 2012, the Dubai Land Department started licensing companies to act in its registered/transferred
behalf and use its system for property registration, among other services. As of August
property value less
2013, all transactions must be made through the 13 Registration trustees throughout
than AED 500,000) or
Dubai.
AED 4,000 (If the
Moreover, in April, 2014, the United Arab Emirates enacted administrative decree 52. It
launched a standard contract for property transfers making it possible for parties to registered/transferred
process a transfer without the need to consult a legal expert. property value equal
The parties have to present themselves at one of the registration trustee's office with the or more than AED
standard contract along with the following documents. 500,000)
1) Company Trade License (Original or Copy)
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 for
Agency : Land Department (online procedure) 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 24Doing Business 2018 United Arab Emirates
Details – Registering Property in United Arab Emirates – Measure of Quality
Answer Score
Quality of the land administration index (0-30) 21.0
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 city—in 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 city—in 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 (0–6) 3.0
Who is able to obtain information on land ownership at the agency in charge of immovable Only 0.0
property registration in the largest business city? intermediaries
and interested
parties
Is the list of documents that are required to complete any type of property transaction made Yes, online 0.5
publicly available–and if so, how?
Link for online access: http://www.dubail
and.gov.ae/Englis
h/services/Reale
stateservices/Pa
ges/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 available–and if
so, how?
Link for online access: http://www.dubail
and.gov.ae/Englis
h/services/Reale
stateservices/Pa
ges/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 frame–and if so, how
does it communicate the service standard?
Link for online access: http://www.dubail
and.gov.ae/Englis
h/services/Reale
stateservices/Pa
ges/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?
Page 25Doing Business 2018 United Arab Emirates
Contact information:
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 2016: 41776.0
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/Englis
h/Real%20Estate
%20Services/Sur
vey%20Services.
pdf
Does the cadastral or mapping agency commit to delivering an updated map within a Yes, online 0.5
specific time frame—and if so, how does it communicate the service standard?
Link for online access: http://www.dubail
and.gov.ae/Englis
h/Real%20Estate
%20Services/Sur
vey%20Services.
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 (0–8) 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 (0–8) 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
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