Smart Exporter guide to doing business in Dubai
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Smart Exporter guide to doing
business in Dubai
Become a Smart Exporter!
call 0800 019 1953
email enquiries@smartexporter.co.uk
visit www.smartexporter.co.uk
Smart Exporter is an international trade skills
development programme, delivered in partnership
by Scottish Development International (SDI),
Scottish Chambers of Commerce (SCC) and funded
by the European Social Fund.
Contents
Introduction
P5 Some quick facts and figures
P5 Key sectors
Some useful tips
Opportunities in P6 Overview
dynamic Dubai P6
P6
Incentives for foreign investors
Free sectors
P7 Religion
A truly global city, there’s nowhere on earth quite like Dubai. P7 Climate
P7 Banks and foreign exchange
Where the Arabia of old co-exists with the world’s largest
man-made harbour and the world’s tallest building; Dubai is P7 Building relationships
a place of contrasts. Here, traditional and modern, east and P8 Greetings
west blend seamlessly to produce a vibrant, dynamic city P8 Body language
with a very distinctive personality. P8 Business hours
There are fantastic opportunities in Dubai to be explored P9 Translators
by Western companies of all shapes and sizes. P9 Business meals
This Smart Exporter guide is full of useful info and tips P10 Things to remember
to get you started. P11 Licence
P11 Legal structures for business
P12 Did you know
P14 How we can help
P15 Useful addresses
Some quick facts and figures
Population: 1.422 million
Area: 4,114 sq km
Time zone: Dubai is 4 hours ahead of GMT
Language: Arabic
Local currency: UAE Dirham
GNI per capita: US $25,000
Main export: Crude oil, natural gas, re-exports, dried fish
and dates
Ethnic groups: Emirati 19%, other Arab and Iranian 23%, South
Asian 50%, other expatriates (includes Westerners
and East Asians) 8%
Government: Constitutional monarchy
Key sectors
The past 10 years have witnessed incredible growth throughout all sectors of
Dubai’s economy.
Despite having abundant oil reserves, the country has always made efforts to broaden
its economic base. Sound and effective economic policies have reduced its dependence
on oil and natural gas revenues, and the economy is diversified, relying heavily on trade,
services and finance sectors.
Significant investments in cutting edge technology industries and projects like Dubai
Internet City and Dubai Media City have ensured that Dubai is at the forefront of the
global economy.
With its central geographic location between Asian and European markets, Dubai has
also worked hard to establish itself as a popular and accessible tourist destination.
4 5
Overview
Religion
Islam is the official religion of Dubai with In Dubai business is conducted on the basis
the majority being Sunni Muslims. Dubai is of personal relationships and mutual trust.
one of the most liberal and tolerant places So it’s vitally important to build on these.
Dubai is the second largest member of the What makes doing business in Dubai even in the Gulf and followers of most other Although it is changing rapidly and large
United Arab Emirates (UAE). It’s home to the more attractive is the fact that taxation is religions are welcomed. Friday is a holy day firms are structured as in the rest of the
most important port and is the commercial minimal and mostly non-existent. The only so most government offices, businesses and world, companies are still often a family
capital of the UAE. industrial sectors that are significantly schools are closed. affair, with the ultimate decision-maker
assessed in taxation are banking, oil and being the head of the family.
It offers easy access to the 1.5 billion
consumer markets situated in Africa, West
cigarette manufacturing. Climate Even if this is not the case, it is essential to
Asia, CIS countries, and Eastern Europe as
well as the areas surrounding the Red Sea
Incentives for Dubai has a subtropical and arid climate clearly identify the decision-maker.
and the Gulf. In fact, Dubai International foreign investors with the weather usually very hot and often
humid. The temperature ranges from a
Good manners and courtesy are prized
attributes. Although you should always
Airport offers 300 flights daily to and from pleasant 10°C (50°F) in winter to over 40°C
The country offers lucrative investment arrive on time, punctuality isn’t considered
some 100 destinations. (104°F) in the summer. This means humidity
incentives and opportunities to international all-important. You may well be kept waiting
Having long since consolidated its position investors that are not generally available in Dubai is roughly 60% in the summer.
before or during your meeting. Take the
among the top oil producing nations, the elsewhere. Rainfall is sporadic and light, with rainfall
time to chat and drink the coffee and
diversified economy of the UAE is doing well primarily occurring in the first quarter of
establish a relationship with your hosts.
Significant among these are absence of the year.
and it has swelled by more than six times
corporate and income tax, no personal Don’t be put off if your meeting is
over the past 26 years, to become the fourth
biggest economy in the Arab world.
income taxes, no foreign exchange controls,
100% repatriation of capital and profits. Banks and foreign interrupted by other guests or telephone
conversations. Be aware that what may
In general, establishing a business exchange seem like evasiveness on the part of your
presence in Dubai is relatively easy and
straightforward. With progressive, forward
Free sectors Dubai has a large network of local and
host is usually an unwillingness to say no
to your face.
thinking government policies in place, the Dubai’s many free zones are also an important international banks offering a wide array of
commercial and personal banking services. Once a deal is made, an Arab businessman’s
business environment in Dubai actively aspect of the city’s growing economy.
All the banks are controlled by the UAE word is his bond and you are also expected
encourages foreign investors.
Established as a way of attracting more Central Bank. Banking hours are usually to perform accordingly, even if the
The government provides all industrial foreign investment, free zones come under Saturday - Thursday, 8.00am - 2.00pm. agreement is just a verbal one.
facilities, and has brought in several liberal unique laws regarding ownership, taxation
Hospitality is a way of life in the Arab world
commercial laws and regulations that are
hugely appealing to overseas businesses.
and labour.
Building relationships and business is frequently conducted over
Normally businesses in the rest of Dubai lunch or dinner – more than likely in a hotel
Generous incentives are granted to Dubai has developed over the past three
require at least 51% ownership by a UAE or restaurant. It is also considered polite to
investors along with the simplicity of decades into a cosmopolitan, truly
national. But free zone businesses can have return the invitation.
procedures for practicing business in UAE. international business location. However
100% foreign ownership.
there are still many local customs you have
Free zones also tend to assist new businesses to observe, and a professional etiquette
in the set up process. Presently, there are to learn, before you can successfully
over a dozen free trade zones in UAE, offering secure business deals and build solid work
more or less the same incentives. relationships.
6 7
Greetings Translators
When doing business in Dubai, it is proper It is acceptable etiquette for international
etiquette to shake hands with the right hand, professionals to request that a translator
as the left hand is considered unclean. be present at business meetings. Some
companies in Dubai do not permit female
It is also inappropriate for a man to shake
translators, so you should do research
hands with a woman unless she extends her
to figure out which organisations will
hand first.
permit this. Proper etiquette also suggests
You should acknowledge each person in the presenting business cards that are
room before the business meeting begins, translated in Arabic on one side.
and take a few minutes to engage in small
talk before getting down to business. Any
discussions involving politics or religion Business meals
should be avoided.
It is quite common for professionals in
Dubai to schedule a lunch meeting with
Body language
clients. Discussing business over a meal
is considered acceptable etiquette. Lunch
meetings are scheduled much more often
Hand gestures should not be used in excess
than dinner negotiations, as businesspeople
when attending business meetings in Dubai,
in Dubai prefer to be finished with work at
and it is considered rude to point.
5.00 pm.
It’s important to sit up straight during
Professional meetings may take place at
meetings and to avoid crossing your
restaurants that do not serve alcohol. It’s
legs, as slouching and crossed legs are
best not to order alcohol with a meal, as this
considered improper behaviour. You should
could cause offense.
avoid checking your watches or phone in
meetings as this sends a message that the
businessperson is bored.
Business hours
Don’t try to schedule a business meeting on
Friday in Dubai, as Friday is considered a day
of prayer and rest. It is also not appropriate
to call Arab professionals on this day to
discuss business.
8 9
Some DON’Ts Licence
to remember Before you can do business in Dubai, you will
have to acquire a license. Licenses for businesses
DON’T dress down. A suit and tie is the norm, whatever in Dubai are divided into industrial licenses
the weather. Women in Dubai on business should dress for manufacturing and industrial businesses,
modestly. While Dubai is very cosmopolitan, always professional licenses for professional services and
remember its roots in Islamic culture. commercial licenses for trading.
DON’T bring up business immediately. Your first People who wish to do business in Dubai will
meeting with a Sheik or high-level Emirati may be have to acquire the appropriate license from the
a general, non-specific chat. When it’s time to talk Department of Economic Development.
business, your host will bring it up. It might not happen
until the second meeting, so be patient. In some cases, there are exceptions to the rule.
Financial institutions that want to do business in
DON’T forget to ask where you’re going. There are no Dubai will have to get approval from the United
street numbers and there’s every chance your taxi Arab Emirate’s central bank.
driver will be a new immigrant himself and has no
idea where he is going. Ask the hotel concierge for Approval is required from the ministry of
directions before you go. Finance and Industry for manufacturing while
the Department of Health must be consulted for
DON’T fly in on a Sunday – you’ll miss the beginning of anything medical in nature.
the working week, which runs
from Sunday through Thursday.
DON’T go in July or August. Most the decision-makers Legal structures
are on holiday then, because it’s so hot and humid.
for business
In Dubai, foreign companies operate in one of
three ways: with a local sponsor, through a
partnership with a UAE national or company,
or through a private limited company or public
shareholding company.
10 11
Did you know?
• Dubai is the fastest growing city in the world
• Dubai has one of the highest per capita incomes
• In Dubai, there are no taxes on income and there
are no personal taxes either
• In Dubai Emirates Mall, you can ski indoors while
shopping, measuring 400 meters and using 6000
tons of snow
• Burj Dubai is the world’s tallest building
• 80% of the residents of Dubai are foreigners
• Dubai is the Middle East supply hub for the
jewellery market
• Dubai is the world’s second largest distributor
of bullion. It imports 360 tonnes and re-exports
almost all of it
• Dubai has the first man-made island in UAE,
the Palm Island
• No matter which part of Dubai you are in, you will
hear calls to prayer at least five times a day. Even
in shopping malls, the calls to prayer are put out
over the speakers, to remind Muslims that it is
time to pray
• Dubai shares legal, political, military and
economic functions with the other emirates,
within a federal framework
• Dubai has the largest population of all the United
Arab Emirates (UAE)
• Apart from Abu Dhabi, Dubai is the only emirate
to have veto power over critical matters of
national importance in the country’s legislature
• Since 1833, Dubai has been ruled by the Al
Maktoum dynasty
• Trade, real estate and financial services provide
Dubai with majority of its revenues
• Revenues from petroleum and natural gas
contribute less than 6% to the economy of Dubai
12 13
How we
Useful Addresses
SDI Local Offices
can help
Dubai
Scottish Development International,
c/o British Embassy,
Al Seef Road,
Dubai.
Initial Contact: Colin Crabbe -
International Manager, Dubai office
Telephone: +971 4 309 4259
The transition from national to international business is an exciting step which can
significantly grow your business. Smart Exporter support can help your business achieve
global growth through an international network of key contacts and expertise that will
help make the transition a smooth one. UK Trade & Investment
Support will:
To find out more about commissioning work,
• Assess your export potential. Visit www.sdi.co.uk/exporttraining please contact your local UKTI office.
• Increase your knowledge of international markets See www.uktradeinvest.gov.uk
• Assist with the development of your international strategy Team:
• Upskill your business in preparation for exporting UKTI Address: British High Commission
• Enable your business to tap into a network of international experts Contact Name: Justin Davies
Role: National Unit Manager
• Help with trade documentation, customs and taxes Telephone (include international dialling code):
+ 91 11 2419 2169.
Email address: Justin.Davies@fco.gov.uk
Become a Smart Exporter!
Call: 0800 019 1953
Email: enquiries@smartexporter.co.uk
Visit: www.smartexporter.co.uk
14 15
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