CANADA-UAE BUSINESS COUNCIL GUIDE TO DOING BUSINESS IN THE UNITED ARAB

1ST EDITION

This document offers an overview of each federal government’s strategies and initiatives, key organizations, main women’s events & key people. This Canada-UAE Business Council Guide to Doing Business in the is intended UAE to educate Canadians interested in conducting FACT SHEET business in the United Arab Emirates (UAE). The Guide gives an overview of the UAE—its government structure, demographics, and economy. It presents considerations for business, including reasons to do business in the UAE, business etiquette, establishing a business, labour laws, and taxation. It also incorporates a section on Canada-UAE commercial relations to provide context for the broader bilateral business relationship. This Guide is not an exhaustive resource on every FOUNDED aspect of doing business in the UAE and therefore should only be used as a starting point for Canadian businesses exploring potential opportunities in 1971 the UAE. It is not a substitute for specific business ST or legal advice. Section 12 provides a list of FOUNDER/1 PRESIDENT RELIGION organizations in both the UAE and Canada that can HIS HIGHNESS SHEIKH ZAYED OFFICIALLY ISLAM; be contacted for further information and assistance. BIN SULTAN AL NAHYAN OTHER RELIGIONS PRACTICED This Guide was inspired by the US-UAE Business POLITICAL SYSTEM Council Guide to Doing Business in the United Arab LANGUAGE Emirates CONSTITUTIONAL FEDERATION OFFICIALLY ARABIC; designed for American businesses. The (THE MONARCH OF IS THE HEAD OF STATE) Canada-UAE Business Council (CUBC) developed ENGLISH IS WIDELY SPOKEN this Guide after reviewing dozens of other similar FEDERATION GDP guides published by various trade and investment SEVEN EMIRATES entities and law active in the UAE. These (ABU DHABI, , SHARJAH, RAS AL KHAIMAH, AED 1.4 TRILLION (C$495 BILLION) FUJAIRAH, UMM AL QUWAIN, AND AJMAN) tools are listed in the Sources section. GDP PER CAPITA The CUBC has made every effort to provide CAPITAL CITY AED 151,000 (C$53,391) information that is accurate and current. Feedback is ABU DHABI welcome. This Guide is updated on a regular basis. TRADE (AS % OF GDP) Please visit the Resources page of the CUBC’s GEOGRAPHIC AREA 93.8% website (www.canadauaebusiness.org) for other 84,000 SQUARE KM resources such as sector profiles, studies, and CURRENCY market intelligence reports. POPULATION UAE DIRHAM EST. 9.4 MILLION (2017) (OFFICIALLY ABBREVIATED “AED”, “DH” OR “DHS”); THE DIRHAM IS PEGGED TO THE US DOLLAR; 1 DIRHAM = 0.27 US DOLLARS Published by the Canada-UAE Business Council EMIRATI NATIONALS Head : EST. 11% CLIMATE 161 Bay Street, Suite 2700 19°C (JANUARY) TD Canada Trust Tower Toronto, ON WORKFORCE: TO 36°C (AUGUST) M5J 2S1 6,330,540 PEOPLE (2016) © Canada-UAE Business Council. All rights reserved 2019.

3 CONTENTS

Section 1 — About the Gender ...... 30 Canada-UAE Business Council ...... 4 Youth ...... 31

Section 2 — President’s Message ...... 8 5.6 Culture & History ...... 32 5.7 World Expo 2020 Dubai UAE ...... 34 Section 3 — Introduction ...... 10 Section 6 — Canada-UAE ...... 40 Section 4 — Why Do Business in the UAE? . . 12 6.1 Trade ...... 42 Section 5 — About the UAE ...... 14 6.2 investment ...... 42 5.1 Beginnings ...... 15 6.3 Agreements & Announcements . . . . 43 Section 8 — Establishing a Business . . . . 56 10.3 Customs Duty ...... 69 5.2 Seven Emirates ...... 17 6.4 Successes ...... 44 8.1 Mainland or Onshore Company . . . . 58 10.4 Other Taxes ...... 69 5.3 Government ...... 21 6.5 Key Sectors ...... 46 8.2 Free Zone Company ...... 59 Section 11 — Tips ...... 70 5.4 Economy ...... 24 6.6 Visiting Entry Requirements ...... 46 8.3 Offshore Company or Overview ...... 24 Section 12 — Resources ...... 72 6.7 Travel ...... 49 Commerical Agency ...... 61 Trade ...... 25 Section 13 — Appendix ...... 76 Investment ...... 26 Section 7 — Business Etiquette ...... 50 Section 9 — Labour Laws ...... 62 Currency ...... 26 13.1 Business Structures 7.1 Language of Business ...... 51 9.1 Emiratisation ...... 63 Comparison Chart ...... 77 5.5 Demographics ...... 29 7.2 Meeting & Greeting ...... 52 9.2 Visas for Foreign Workers ...... 64 Population ...... 29 13.2 List of UAE Free Zones 7.3 Attire ...... 53 Diversity ...... 29 Section 10 — Taxation ...... 66 & Designated Zones ...... 78 Religion ...... 29 7.4 Gender ...... 54 10.1 Corporate Tax ...... 67 13.3 Sources ...... 80 Language ...... 29 7.5 Working Hours & Holidays ...... 55 10.2 Value-Added Tax (VAT) ...... 68 13.4 Acronyms ...... 82 5

SECTION 1 ABOUT THE CANADA-UAE BUSINESS COUNCIL

OUR VISION is to achieve the shared goal of The CUBC is the premier business-led enhancing economic prosperity organization facilitating greater trade for both countries. and investment between Canada and OUR ROLE the United Arab Emirates (UAE). In is to provide value to our members 2013, the foreign ministers of Canada by leveraging our high-level and the UAE announced the Canada- networks; and, to advance the bilateral relationship by serving UAE Strategic Agenda to strengthen as a meeting point for the private and energize the bilateral relationship. and public sectors to strategically The Agenda had three pillars: diversify and grow trade and investment. Prosperity, Security, and Development.

The CUBC was formally established OUR MISSION in 2016 as one of the strategic is to facilitate long-term recommendations that resulted from relationships and strategic 18 months of deliberations between initiatives that will improve overall bilateral market-accessibility and business leaders from Canada and the will increase diverse trade and UAE to support the Prosperity pillar. investment opportunities.

4 LEADERSHIP

EXECUTIVE COMMITTEE BOARD MEMBERS The Honourable Jean Charest Khalifa Al Mansouri CUBC Co-Chair CEO, Abu Dhabi Securities Exchange (ADX) Partner, McCarthy Tétrault LLP Fatima Al Jaber Musabbeh Al Kaabi Chief Operating Officer, Al Jaber Group 7 CUBC Co-Chair Otaiba Al Otaiba CEO Petroleum & Petrochemicals, Chairman, Al Otaiba Group Mubadala Investment Company Anuj Ranjan Omar Alhashmi Managing Partner, Private Equity, Middle CUBC Vice Chair East and South Asia, Brookfield Asset Executive Director Asset Management Inc. Management, Abu Dhabi Power Corporation Omar Al Muhairi Director, Government Affairs, DP World Jody Becker CUBC Vice Chair Jody Becker The Honourable Jean Charest Jefferey Graham Senior VP Emerging Markets and CUBC Vice Chair and Senior VP, Emerging CUBC Co-Chair and Partner, CUBC Secretary and Senior VP, Chief Strategy Officer, EllisDon Markets and Chief Strategy Officer, McCarthy Tétrault LLP SkyPower Global EllisDon Jefferey Graham Musabbeh Al Kaabi Graham Richardson CUBC Secretary Essa Al Ghurair CUBC Co-Chair and CEO Petroleum President, TAQA North Ltd. Chairman, Essa Al Ghurair Investment LLC & Petrochemicals, Mubadala Senior VP, SkyPower Global Saeed Al Darei Investment Company Aziz Shariff Ahmed Al Qubaisi Executive VP Government Affairs and CUBC Finance Chair Senior VP, Government Relations, Omar Alhashmi Corporate, TAQA Global Etihad Airways CUBC Vice Chair and Executive Director, Chairman, Trimark Capital Group Drew MacIntyre Asset Management, Abu Dhabi Mustafa Sahin Joe Lombard Vice Chair, Head – Global Energy, Power Power Corporation CUBC President and Global Managing Director, Metals, Hatch & Utilities Group, TD Securities Inc. Executive Director Kerry Adler John Prato Founder, President and CEO, Deputy Chair and Executive Managing Director, SkyPower Global TD Securities Inc. Aziz Shariff CUBC Finance Chair and Chairman, Trimark Capital Group

6 SECTION 2 PRESIDENT’S

This Guide to Doing Business in the United Arab MESSAGE Emirates is for Canadian businesses and organizations of any size operating in any sector. Readers will learn more about a remarkable country where Canadians are already thriving and where there is great potential for others to also succeed. The United Arab Emirates (UAE) is a market full of opportunities for Canadian goods, services, investments, and expertise. The Canada-UAE Business Council (CUBC) has developed this booklet as an overview for Canadians interested in the UAE. The Guide is part of a suite of business resources that like the CUBC has created with input from our to extend stakeholders in both countries. I encourage you a special thank to access those resources on our website to you to the embassies and continue to learn more about the Canada-UAE consulate generals for their leadership relationship and the potential for your business. and contribution to bilateral economic relations. As the global economy continues to shift and This is a particularly opportune time for respond to new forces and challenges affecting Canadians to consider doing business in the growth, Canada and the UAE are uniquely aligned UAE. Never before has Canada placed as as innovative, open, and forward-thinking nations much emphasis on trade diversification. The looking to meet these challenges head on. Government of Canada’s goal is to increase Looking to the future, there are common focuses exports by 50 per cent by 2025, and many in the two countries: diversifying international programs are focused on Canadian businesses, trade, major infrastructure investments, including small and medium-sized enterprises, attracting talent, unlocking innovation, and accessing new markets. The UAE is a priority enabling diversification and participation in key market for Canada; in 2018 alone, several new sectors, particularly for women. At the CUBC, agreements between Canada and the UAE were we see the vast potential for further cooperation, signed to make doing business between the two and we have the honour of working within a great countries even smoother. ecosystem of supports for Canadian businesses. I hope you find this Guide useful. I am grateful to have esteemed and committed Sincerely, members guiding and participating in the CUBC. Our exemplary executive committee, and other passionate volunteers, work alongside our dedicated CUBC staff to identify, promote, Mustafa Sahin and facilitate opportunities. Furthermore, our President and CEO partners in Canada and the UAE are pillars of the Canada-UAE Business Council relationship and as such deserve recognition. I’d canadauaebusiness.org

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SECTION 3 INTRODUCTION

On the surface, Canada and the UAE seem energy of a youthful and highly educated Emirati quite different. However, they actually share population. many similarities. Both countries have federal Canadian business leaders that experience the structures, both were founded on natural UAE immediately see the potential there for their resources and multicultural societies, and both businesses and investments to grow. It helps that are strategically located close to major global the UAE is ranked one of the friendliest places markets and have similar open outlooks on to do business in . English is widely tolerance, women’s empowerment, and trade spoken in the UAE, policies and low taxes make it and investment. This Guide highlights some of attractive to establish a business there, and the these similarities as areas of shared economic lifestyle is familiar for western professionals. opportunity. The CUBC’s Bilateral Economic Story: United Arab Emirates and Canada goes into more Nevertheless, awareness and understanding of detail and is another useful resource to download the UAE remain low across Canada. The CUBC from our website. is actively working to educate Canadians and promote opportunities in the UAE. Contrary This Guide is about the UAE and doing business to Canadian opinion, the UAE has a diversified there as a Canadian company. The UAE has economy and is a place where women enjoy high consistently been Canada’s top trading partner and equal rights. Indeed, not only are in the Middle East and North Africa (MENA) women’s rights enshrined in the constitution, but region and is a growing source of foreign direct two-thirds of government employees are women, investment (FDI). There are more than 40,000 and 50 per cent of corporate board members Canadians living in the UAE and over 150 Canadian must be women. The UAE also ranks number one brands are represented. Canadian businesses are in the world for women’s literacy, with more than thriving in the country, even serving other markets 70 per cent of university graduates being women. in the Gulf Cooperation Council (GCC) states1 and beyond. The UAE is a strategic global hub; it is 2018 was a pivotal year in Canada-UAE relations a transportation and logistics superpower that that further opened the door for increased trade provides access for Canadian companies to more and investment. The governments added more than 3 billion potential customers with a combined direct flights, agreed to further cooperation, Gross Domestic Product (GDP) of US$ 6.5 trillion finalized protections for investments, and much (C$8.7 trillion). more. Canadian CUBC members are benefiting from their business interests in the UAE and Expatriates make up the majority of the other Canadian businesses can, too. Contact the population of the UAE. They live and work CUBC or any one of the organizations listed in alongside UAE Nationals or , who are this Guide for more information on how to conduct the current and future leaders of the country. business in the UAE. The UAE enjoys political stability and is ranked among the safest countries in the world. It is a global economic leader where innovation and visionary strategies are harnessing the skills and

1 The GCC is a political and economic alliance of six countries: Saudi Arabia, Kuwait, the United Arab Emirates, Qatar, Bahrain, and Oman.

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SECTION 5 WHY DO

• Access to a regional population of 3.2 billion • Familiar Western brands, amenities, lifestyle, BUSINESS people with a collective GDP of more than and nightlife US$6.5 trillion (C$8.7 trillion). IN THE UAE? • English is widely spoken • A strategic global hub for transportation and • Multicultural and tolerant society logistics • Low taxation and low customs tariffs • One-third of the world’s population lives within a four-hour flight and two-thirds within • Laws to protect foreign capital an eight-hour flight • Various business set-up options, including • Two world-class airlines: Emirates Airlines more than 45 free zones (Dubai) and Etihad Airways (Abu Dhabi) • Highly educated and young population • Busiest airport in the world for international • Women’s rights are enshrined in the travelers constitution and women’s empowerment is a • Largest airport in the world under priority • Hosting World Expo 2020 Dubai (October • Largest maritime port in the Middle East and 2020 to April 2021): the largest event ever the 8th largest in the world held in the Arab world and the first World’s Fair in the Middle East, Africa, and South Asia • Modern infrastructure, ranked best in the world • Visionary leadership focused on bringing together innovation and technology from • Some of the top conferences and trade shows around the world to solve challenging in the world in sectors such as problems facing the country and humanity and agri-, and gas, defense, aerospace, health, real estate, construction, • A supportive environment in Canada and the and UAE of economic development organizations and experts to help • 1st in the MENA region for ease of doing business; 11th in the world • Large Canadian expat community (40,000) and already 150+ brands represented • 1st in the MENA region for innovation; 38th in the world • Canada’s brand and image are strong • Ranked consistently as one of the safest places in the world • Least corrupt country in the MENA region • Stable government and healthy relations with the rest of the world • Stable currency

• 1st in the Arab region for happiness; 21st in the world

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SECTION 5 ABOUT THE UAE 5.1 BEGINNINGS

In the early 19th century, the region now known as the UAE was a collection of independent coastal and desert settlements. The General Maritime Treaty of 1820 between the United Kingdom of Great Britain and the sheikhs or rulers of these settlements was the first of a series of agreements that would bring the emirates together. Under the General Maritime Treaty of 1820 and the agreement that followed, the Perpetual Maritime Truce of 1853, the sheikhs had to ensure peace at sea and refrain from building large ships and fortifications along the coast. Under these treaties and truces, the emirates would come to be known collectively as the Trucial States. In 1892 the Trucial States entered into the Exclusive Agreement with Britain in which they could not form any formal relationships with any other foreign government without the consent of the United Kingdom. In return, the Trucial States became protectorates of Britain. This agreement ended in 1968, when Britain declared it would withdraw from the Gulf by the end of 1971.

His Highness Sheikh Zayed bin Sultan Al Nahyan formed the UAE on December 2nd, 1971 as a federation between six emirates, with the seventh joining in February 1972. The seven emirates in the UAE include: Abu Dhabi, Dubai, Sharjah, Ras Al Khaimah, Fujairah, Umm Al Quwain, and Ajman. Abu Dhabi city is the federal capital of the UAE.

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HIS HIGHNESS SHEIKH ZAYED BIN SULTAN AL NAHYAN Known as the Father of the Nation for his role in forming the United Arab Emirates, the late Sheikh Zayed bin Sultan Al Nahyan was the first President of the UAE. He served this position from the formation of the UAE on December 2nd, 1971 until he passed away in 2004. He also served as the Ruler of the emirate of Abu Dhabi from 1966 to 2004. Sheikh Zayed is revered in the UAE and was considered a man of the people. He worked to ensure unity among the emirates 5.2 SEVEN EMIRATES and brought the UAE’s economy into the 20th century. He also laid the foundation for the UAE as an open and tolerant society. The UAE is a federation of seven emirates. Each of these emirates has different strategic His balanced approach to foreign policy and his reputation for philanthropy are industries, based on their location, their resources, and their workforce expertise. known globally. Sheikh Zayed’s enduring legacy is memorialized in the principles and philosophy that he brought to the UAE The real wealth is ABU DHABI Abu Dhabi is the largest Emirate in the UAE, government and in the world-famous occupying 84 per cent of the national landmass . hard work that benefits Population: Est. 2.9 million (2016) territory. In 2016, the estimated population of Abu the person and the Dhabi was 2.91 million. Out of the total population UAE leaders named 2018 The Year of Zayed GDP: AED 785.6 billion (2017) approximately 19 per cent were UAE nationals to commemorate the anniversary of the community. It is (C$275 billion) and 81 per cent were expatriates. th leader’s 100 Birthday. The Year of Zayed immortal and eternal, featured a series of events and initiatives % UAE’s GDP: 55.3% Abu Dhabi houses the federal government and in the UAE and internationally to promote and forms the value of is also the oil and gas hub of the UAE, with 95 per cent of the UAE’s proven oil reserves. Sheikh Zayed’s values. the human and Key Industries: Oil & Gas; Business & Professional/Technical The emirate is making key strides towards Sheikh Zayed’s portrait can be seen the nation. Services; Healthcare & diversifying its economy away from oil reliance throughout the UAE on billboards and Life Science; Aerospace with sector development focused on areas such inside of buildings. HIS HIGHNESS SHEIKH ZAYED & Defense. as life science, healthcare, aerospace, defense, zayed.ae BIN SULTAN AL NAHYAN, and education. 18 19

DUBAI SHARJAH RAS AL KHAIMAH AJMAN

Population: Est. 3.2 million (2018) Population: Est. 1.4 million (2015) Population: Est. 345,000 (2015) Population: Est. 504,850 (2017)

GDP: AED 389.4 billion (2017) GDP: AED 92.7 billion (2017) GDP: AED 28.4 billion (2015) GDP: AED 17.2 billion (2014) (C$141 billion) (C$34 billion) (C$10 billion) (C$6.2 billion)

% UAE’s GDP: 27.4% % UAE’s GDP: 6.5% % UAE’s GDP: 2% % UAE’s GDP: 1.2%

Key Industries: Business & Professional/ Key Industries: Manufacturing; Mining; Key Industries: Manufacturing; Key Industries: Manufacturing; Technical Services; Arts & Culture. Agriculture; Tourism. Construction; Real Estate. Finance; Tourism; Trade. Sharjah is the third largest emirate in the UAE, Ras Al Khaimah is the fourth largest emirate in Ajman is the smallest emirate in the UAE, Dubai is the second largest emirate in the occupying 3.3 per cent of the total area of the the UAE, occupying 3.2 per cent of the total area occupying 0.3 per cent of the total area of the UAE, occupying approximately 5 per cent of the national landmass territory (without islands). of the national landmass territory. national landmass territory (without islands). national landmass territory (without islands). In The emirate is the UAE’s industrial and 2018, the estimated population of Dubai was 3.2 The emirate’s economy is primarily driven by The emirate’s economy is quite diversified with manufacturing centre. It is also known for its million. Out of the total population approximately industrial activities, including cement production manufacturing and construction being two of emphasis on education, arts, and culture as 8.2 per cent were UAE nationals and 91.8 per cent and pharmaceutical manufacturing, as well its top sectors. The emirate has become an confirmed by its 1998 UNESCO designation as the were expatriates. as agriculture. The emirate is now focused on attractive place for investment since it offers 100 Cultural Capital of the Arab World and Capital of growing itself as a tourism hub. per cent freehold ownership of real estate to non- The most internationally recognized emirate, Islamic Culture 2014. Emiratis. Dubai is the commercial centre of the UAE, with its economy built on finance, tourism, and shipping and trade. 20 21

5.3 GOVERNMENT

The United Arab Emirates is a constitutional federation of seven emirates, each with its own hereditary monarch as its ruler. The government of the UAE works at three levels: federal, emirate, and municipal. The federal government structure comprises five bodies: , President, Cabinet or Council of Ministers, , and Federal Judiciary.

1 — THE FEDERAL SUPREME Al Sharqi, Ruler of Al Fujairah COUNCIL • His Highness Sheikh Saud bin Rashid Al The Federal Supreme Council or Supreme Mu’alla, Ruler of Umm Al Quwain Council is the highest constitutional authority in • His Highness Sheikh Humaid bin Rashid Al the United Arab Emirates. It is also the highest Nuaimi, Ruler of Ajman FUJAIRAH UMM AL QUWAIN legislative and executive authority that develops general policies and approves various federal Population: Est. 236,800 (2017) Population: Est. 49,150 (2005) legislations. 2 — PRESIDENT The President and Vice President are both GDP: AED 15.4 billion (2017) GDP: N/A The Supreme Council consists of the rulers of elected from the Supreme Council’s membership (C$5.6 billion) all seven emirates or of their substitutes. Each % UAE’s GDP: N/A emirate has a single vote in the deliberations of for renewable five-year terms. Since % UAE’s GDP: 1.1% the Council. confederation, the Ruler of Abu Dhabi has been Key Industries: Fishing; Poultry; Tourism. President and the Ruler of Dubai has been Vice President. Key Industries: Shipping & Bunkering; The Supreme Council includes: Agriculture; Fishing. Umm Al Quwain is the second smallest emirate in the UAE, occupying 1 per cent of the total area • His Highness Sheikh Khalifa bin Zayed Al 3 — CABINET OR COUNCIL Fujairah is the third smallest emirate in the UAE, of the national landmass territory. Nahyan, Ruler of Abu Dhabi and President of OF MINISTERS occupying 2.7 per cent of the total area of the the UAE The emirate’s economy is primarily built on The Cabinet or Council of Ministers is the national landmass territory. • His Highness Sheikh Mohammed bin fishing, but is also growing in its touristic executive branch of the UAE. It executes all The emirate is a major shipping, ship service, and Rashid Al Maktoum, Ruler of Dubai and Vice importance, having some of the best beaches and internal and external affairs of the federation as bunkering location due to its position on the Gulf President and Prime Minister of the UAE attractions in the UAE. per the provisions of the UAE Constitution and of Oman and its access to the Indian Ocean. In • His Highness Sheikh Sultan bin Mohammed federal laws. addition to its port industry, much of the emirate’s Al Qasimi, Ruler of Sharjah economy is based on agriculture and fishing. • His Highness Sheikh Saud bin Saqr Al Qasimi, The Cabinet consists of: Ruler of Ras Al Khaimah • the Prime Minister • His Highness Sheikh Hamad bin Mohammed • two Deputy Prime Ministers 22 23

• the Ministers of the UAE 12. Minister of State for International Cooperation — Reem bint Ibrahim Al Hashimy • a General Secretariat 13. Minister of Energy and Industry — Suhail bin The Cabinet is led by the Prime Minister Mohammed Faraj Al Mazroui who chooses the members from among representatives of the seven Emirates. The 14. Minister of Education — Hussain bin Ibrahim membership of the Cabinet is then ratified by the Al Hammadi President. 15. Minister of Infrastructure Development — Dr. As of 2017, there are 31 Cabinet Ministers, 9 of Abdullah bin Mohammed Belhaif Al Nuaimi whom are women. 16. Minister of Justice — Sultan bin Saeed Al 1. Prime Minister and Minister of Defence — Badi Sheikh Mohammed bin Rashid Al Maktoum 28. Minister of State — Zaki Anwar 17. Minister of State for Defence Affairs — Nusseibeh 2. Deputy Prime Minister and Minister of Mohammed bin Ahmed Al Bowardi Interior — Sheikh Saif bin Zayed Al Nahyan 29. Minister of State for Future Food Security 18. Minister of Culture and Knowledge — Maryam bint Mohammed Saeed Hareb Al 3. Deputy Prime Minister and Minister of Development — Noura bint Mohammed Al Mehairi Presidential Affairs — Sheikh Mansour bin Kaabi Zayed Al Nahyan 30. Minister of State for Advanced Sciences — 19. Minister of Climate Change and Environment Sara bint Yousuf Al Amiri 4. Minister of Finance — Sheikh Hamdan bin — Dr. Thani bin Ahmed Al Zeyoudi Rashid Al Maktoum 31. Minister of State for Artificial Intelligence — 20. Minister of Human Resources and Omar Sultan Al Olama 5. Minister of Foreign Affairs and International Emiratisation — Nasser Thani Al Hameli Cooperation — Sheikh Abdullah bin Zayed Al 32. Abdullah Mohammad bin Touq is the 21. Minister of Community Development — Nahyan Secretary General of the UAE Cabinet. Hessa bint Essa Buhumaid 6. Minister of Tolerance — Sheikh Nahyan bin 22. Minister of State for General Education — Mubarak Al Nahyan 4 — THE FEDERAL NATIONAL Jameela bint Salem Al Muhairi COUNCIL 7. Minister of Cabinet Affairs and Future — 23. Minister of State for Higher Education and Mohammed bin Abdullah Al Gergawi The Federal National Council (FNC) is the Advanced Skills and Chair of the Federal consultative council and parliamentary body of 8. Minister of Economy — Sultan bin Saeed Al Authority for Human Resources — Dr. Ahmad the UAE. It examines proposed new legislation Mansouri bin Abdulla Humaid Belhoul Al Falasi and provides advice to the Cabinet, as required. 5 — THE FEDERAL JUDICIARY 9. Minister of Health and Prevention and 24. Minister of State — Dr. Sultan bin Ahmed The FNC is empowered to call and question The Federal Judiciary includes the Federal Minister of State for Federal National Council Sultan Al Jaber Ministers in regard to their own performance, Supreme Court, Federal Courts, and Public Affairs — Dr. Abdul Rahman bin Mohammed providing an additional degree of accountability 25. Minister of State — Dr. Maitha bint Salem Al Prosecution. The Federal Supreme Court as bin Nasser Al Owais to the system. Half of the FNC members are Shamsi the highest judicial authority in the UAE. The indirectly elected while the other half are 10. Minister of State for Foreign Affairs — Dr. Supreme Court decides on the constitutionality 26. Minister of State for Happiness and Wellbeing nominated by the ruler of each Emirate. Anwar bin Mohammed Gargash of federal laws and arbitrates on inter-Emirate — Ohood bint Khalfan Al Roumi The Federal National Council has 40 members, disputes between the Federal Government and 11. Minister of State for Financial Affairs — Obaid 27. Minister of State for Youth Affairs — Shamma with the number of seats being assigned the Emirates. The Supreme Court consists of five bin Humaid Al Tayer bint Sohail Faris Al Mazrui proportionately to each Emirate’s population. judges appointed by the Supreme Council. 24 25

5.4 ECONOMY Construction: a customs union, with a common tariff of 5 per cent imposed on all imports coming from outside Construction is the fourth largest sector in the GCC to any GCC state. Additionally, the GCC the UAE. As of 2018, the UAE has an estimated takes responsibility for negotiating any trade US$800.0 billion (C$1.06 billion) worth of major agreements on behalf of its members. Thus far, TOP SECTORS UAE as it sets short and long-term targets and projects in the works. It is projected that an the GCC has concluded free trade agreements embraces technology and innovation to reach additional US$40.0 billion (C$53.2 billion) worth The UAE’s four top sectors are: oil and gas, with Singapore and the European Free Trade those targets. of construction contracts will be awarded each wholesale and retail trade, finance, and Association. It has ongoing negotiations with year for the next three years in the country. construction. Almost two-thirds of the country’s Australia, China, the European Union, India, Wholesale and Retail Trade: A key driver of this construction activity is gross domestic product (GDP) is derived from Japan, Mercosur, New Zealand, Pakistan, South infrastructure development, which continues to industries other than oil and gas, and measures The second largest sector in the UAE is Korea, and Turkey. receive major injections of capital as the country are in place to increase this amount. Already an wholesale and retail trade. Building on its continues to expand and modernize. In Dubai The UAE has signed bilateral preferential internationally-recognized centre for business, strategic location between Asia, Europe, and alone, infrastructure spending has reached agreements with some Arab Countries (Syria, finance, tourism and trade, the UAE has now Africa, the UAE has evolved into a global trade unprecedented levels as of 2018, much of it Jordan, Lebanon, Morocco and Iraq). According set its sights on becoming a world leader in and logistics hub through major investments allocated to build the facilities and transportation to these agreements, the UAE and its partners innovation across various sectors including in port and airport infrastructure. This position needed for hosting Expo Dubai 2020. accord each other preferential access for a renewable energy, transportation, education, is further enhanced through the development specified list of goods. health, technology, water, and space. Developing of the UAE’s various free zones, which exempt a ‘competitive knowledge economy’ is also one international companies from customs duties on TRADE Major Markets and Products for Trade: of the six pillars of the UAE’s National Agenda in imports and re-exports and provides exemptions International trade is highly important to the line with Vision 2021. These pillars are: from corporate taxes. The UAE also has a UAE’s overall economic wellbeing. The country’s In 2017, the UAE exported US$142 billion and 1. World-Class Healthcare; strong consumer base that drives the local retail trade to GDP ratio is 93.8 per cent. Over 45 imported US$175 billion. trade, boosted by high salaries and a robust per cent of goods exported to the UAE are re- 2. Competitive Knowledge Economy; The UAE’s top markets for export in 2017 were: shopping culture. In 2016 consumer expenditure exported to other markets such as India, China, 3. Safe Public and Fair Judiciary; per household was highest in the UAE when and countries across Africa and the Middle East. 1. India (US$22.1 billion) (C$28.6 billion) 4. Cohesive Society and Preserved Family; compared to all other GCC countries. A large part of the UAE’s trade success is derived 2. Japan (US$18.8 billion) (C$24.4 billion) 5. First-Rate Education System; from its many free zones. The UAE has more Finance: 3. China (US$11.4 billion) (C$14.8 billion) 6. Sustainable Environment and Infrastructure. than 45 free zones across the country, some The UAE’s large amount of wealth and its of which are industry-specific and serve and 4. Oman (US$10.1 billion) (C$13.1 billion) Oil and Gas: investments (in and out) contributes greatly to the regional headquarters for many multinational 5. Switzerland (US$10.0 billion) (C$13 billion) country’s finance and insurance sector, which is corporations (MNCs). Free zones allow foreign The UAE is an energy powerhouse, having the the third largest by GDP value. The UAE has built entities to retain 100 per cent ownership of The UAE’s top markets for import in 2017 were: seventh largest proven reserves of oil and up strong financial reserves and has some of the their companies and they also offer many seventh largest proven reserves of natural gas 1. China ($28.6 billion) (C$37 billion) largest sovereign wealth funds in the world. The other benefits, such as exemption of corporate, in the world. The UAE produces approximately country is a consistent spender on public projects personal, and import/export taxation. 2. India (US$28.0 billion) (C$36.3 billion) 3 million barrels per day. Most of the oil and and invests heavily in assets across the globe. 3. Germany (US$12.2 billion) (C$15.8 billion) gas activity (94 per cent) in the country is in Abu As a hub for international business, the UAE also Free Trade Agreements: Dhabi. In 1980, 79% of the UAE’s GDP came 4. United Kingdom (US$9.6 billion) (C$12.4 attracts high levels of investment from foreign from oil and gas, that figure is now down to 30%. The UAE is part of the GCC, which allows for free billion) entities; the country attracted approximately Diversification within the oil and gas sector and trade between its six members: Bahrain, Kuwait, US$10.4 billion (C$13.5 billion) of foreign direct 5. Turkey (US$9.2 billion) (C$11.9 billion) diversification among sectors is a focus for the Oman, Qatar, Saudi Arabia, and the UAE. It is also investment in 2017. 26 27

TOP EXPORT & IMPORT PRODUCTS BY VALUE — UAE (2017) The UAE’s Vision 2021 supports attracting more

TOP EXPORTS TOP IMPORTS foreign direct investment to the UAE, and so do the eight strategies launched in 2018 to enhance 1. Petroleum 1. Gold 2. Gold 2. Articles of Jewelry & UAE’s competitiveness. 3. Diamonds Parts 4. Aluminum 3. Diamonds Major Markets and Sectors for Investment: 5. Articles of Jewelry & 4. Cars/ Motor Vehicles Parts 5. Refined Petroleum The UAE’s top investor countries (inward stock) in 2017 were: Source: Observatory of Economic Complexity, 2017 1. United Kingdom (US$19.8 billion) (C$25.6 billion) INVESTMENT 2. India (US$6.6 billion) (C$8.5 billion) The total UAE outward FDI stock2 in 2017 was valued at US$124.4 billion (C$161.6 billion) and 3. United States (US$5.2 billion) (C$6.7 billion) inward stock was US$129.9 billion (C$168.7 4. France (US$4.9 billion) (C$6.3 billion) billion). 5. Iran (US$4.8 billion) (C$6.2 billion) The UAE ranked 19th in the world for FDI outflows in 2017, making it a major investor worldwide. TOP INVESTED SECTORS BY % The country is home to four of the 30 largest 1. Wholesale and retail trade sovereign wealth funds in the world: The Abu 2. Real Estate Dhabi Investment Authority, the Investment 3. Financial and Insurance 4. Manufacturing Corporation of Dubai, Mubadala Investment 5. Mining Company, and the Emirates Investment Authority. 6. Construction The Abu Dhabi Investment Authority is the largest sovereign wealth fund in the UAE and has an At the end of April 2017, the UAE had signed estimated US$697 billion (C$929.8 billion) in 65 agreements related to the encouragement assets under management. and protection of investment and signed 102 With respect to inflow investment, all seven agreements on the avoidance of double taxation emirates have adopted measures to create with different countries. a more favourable environment for foreign investors. New laws in recent years make CURRENCY investing in the UAE more attractive and easier. The unit of currency in the UAE is the UAE dirham and has been pegged to the US dollar at a rate 2 Foreign Direct Investment (FDI) is a term used to define foreign ownership in a company. FDI stock (inward and outward) are the value of equity and of AED 3.67 to USD 1 since 1980. The UAE has no net loans measured at a point in time. Stocks are accumulated over time by inflows and/or depleted by outflows. FDI flows (inflow and outflow) are currency exchange controls. measured over an interval and affect stocks. In other words, stocks are the “bank statements” and flows are the deposits and withdrawals. 28 29

5.5 DEMOGRAPHICS

POPULATION Year of Tolerance The total population of the UAE is 9.4 million His Highness Sheikh Khalifa bin Zayed Al Nahyan, (2017). Approximately 11 per cent of the UAE’s President of the UAE, proclaimed 2019 “The Year population are UAE nationals, while the majority of Tolerance.” The aim of the year is to highlight is expatriates. Only UAE nationals are citizens of the UAE as a global capital for tolerance and the country. emphasize tolerance as a universal concept. UAE is implementing legislation and policies aimed All UAE citizens in the seven emirates carry the at entrenching the values of tolerance, dialogue, unified nationality of the UAE, which is recognized coexistence and openness to different cultures, internationally. The demonym is Emirati. especially among youth. The largest expatriate communities come from The Year of Tolerance embodies the approach India (27.5%), followed by Pakistan (12.7%), adopted by the UAE since its establishment to be Bangladesh (7.4%), Philippines (5.6%), Iran (4.8%), a bridge of communication between the people and Egypt (4.23%). There are an estimated 40,000 of the world and their various cultures, in an Canadians living in the UAE. To put that number environment of openness and respect that rejects into context, there are an estimated 50,000 extremism and promotes coexistence. Americans, 25,000 French, 16,000 Australians, and more than 130,000 Brits living in the UAE. Pope Francis visited the UAE in February 2019. It was the first ever visit by a sitting pontiff to the Gulf. In the presence of a global audience DIVERSITY of religious leaders from Christianity, Islam, The UAE is one of the most culturally diverse Judaism and other faiths, Pope Francis and the countries in the world. More than 200 different Grand Imam of Al Azhar, Islam’s most prestigious ethnic and culture backgrounds are represented. seat of learning, signed a historic declaration Indians form the largest foreign community in the of fraternity calling for peace between nations, UAE, followed by Pakistanis, Bangladeshis, other religions, and races. Asians, Europeans, and Africans. LANGUAGE RELIGION Arabic is the UAE’s official language, but English Islam is the official religion of the UAE and is is spoken widely. Other widely spoken languages practiced by approximately 76% of the population. include Bengali, English, Farsi, Hindi, Malayalam, Much of the national values and culture revolve Mandarin, Nepali, Russian, Sinhalese, Tagalog around Islam. The UAE does, however, believe in and Urdu. and advocate for freedom of religion. 30 31

GENDER YOUTH The UAE leads the region in women’s economic supports the UAE’s vision to become one The overall median age for the UAE is 37.2. 35 per After restructuring the Cabinet, the Prime empowerment and education. Women constitute of the world’s top 25 countries for gender cent of the population is under the age of 24 and Minister announced the establishment of the more than 25 per cent of the UAE Cabinet. As much equality by 2021. the majority of this group are women. Emirates Youth Council. The Council presents as 60 per cent of the government workforce is youth ideas, aspirations, and solutions to the • In September 2017, the Gender Balance Council The UAE Government attaches great importance made up of women and 30 per cent occupy senior government. Her Excellency Shamma Al Mazrui, launched the UAE Gender Balance Index. to the role of youth and their empowerment in leadership positions. The UAE ranks 1st in the world Minister of State for Youth Affairs heads the order to enable them to shoulder responsibilities, in women’s literacy and more than 70 per cent • The UAE launched the National Strategy for the Council. The Council includes 13 young members innovate, and contribute to the welfare of the UAE. of the country’s graduates are women. Women- Empowerment of Emirati Women 2015-2021. of mixed gender who serve as government In February 2016, the Prime Minister announced owned businesses contributes to 10 per cent of advisors on youth issues. the government of the future as part of major total value to the private sector and there are an structural changes to the UAE Government. The In 2017, the UAE Government launched Youth Hub, estimated 21,000 women employers in the country. government of the future focuses on happiness, a community space for UAE youth where they One of the challenges that the UAE faces is innovation, tolerance, youth, and climate change. can meet and connect. Youth Hub caters to young translating the high levels of education among To emphasize the focus on youth, the UAE people between the ages of 15 and 35 irrespective Emirati women into jobs. Once in the workforce, established a Minister of State for Youth Affairs, of whether they are studying or working. women still face similar barriers to career who is herself a youth. advancement as do women in other developed countries. Lack of support within organizations and preconceptions of women’s roles and responsibilities are the two factors identified as The question of whether to hindering women’s career progression the most. empower women to progress The UAE Government embraces and encourages is no longer a matter of debate employers to support women through diversity — it is simply the right thing to and inclusion programs, and policies such as do socially and economically, it good maternity and paternity leave, providing nurseries at work, and offering flexible work is the norm. All over the world, schedules for men and women with families. All the benefit of inclusiveness is corporate boards in the UAE must now include evident in the growth of various women. The UAE Cabinet also recently approved a sectors. Women’s participation law on equal wages. in the economy not only boosts

Key Initiatives/Steps: development, it also diversifies national economies and opens • In April 2018, the UAE Cabinet approved the Law on Equal Wages and Salaries for Men a nation up to new ideas and and Women. approaches. • In May 2015, the UAE established the UAE Gender Balance Council to ensure that HER EXCELLENCY NOURA BINT MOHAMMED AL KAABI, UAE MINISTER Emirati women continue to play a leading role OF CULTURE AND KNOWLEDGE in the development of the UAE. The Council DEVELOPMENT 32 33

5.6 CULTURE & HISTORY

There are many resources to learn more about Emirati culture, history, and contemporary society. Below is a short list.

IN PRINT: ONLINE: • Spirit of the Union by Sheikh Mohammed bin • Culture — The Official Portal of the UAE Rashid Al Maktoum Government governmnet.ae/en/about-the-uae-culture • My Vision: Challenges in the Race for Excellence by Sheikh Mohammed bin Rashid Al Maktoum • Cultural Foundation UAE culturalfoundation.ae • My Story: 50 Memories of 50 Years of Service by Sheikh Mohammed bin Rashid Al Maktoum • Abu Dhabi Culture tcaabudhabi.ae • City of Gold: Dubai and the Dream of Capitalism by Jim Krane • Dubai Culture dubaiculture.gov.ae • Keepers of the Golden Shore: A History of the United Arab Emirates by Michael Quentin Morton • UAE 101: Stories & Cultural Learnings by Roudha Al Marri and Ilaria Caielli • UAE – Culture Smart! – The Essential Guide to Customs and Culture by John Walsh • Abu Dhabi Residents Guide by Explorer Publishing • Uncommon Dubai edited by Hind Shoufani • From Rags to Riches: A Story of Abu Dhabi by Mohammed Al Fahim 34 35

5.7 WORLD EXPO 2020 DUBAI UAE

From October 20, 2020 to April 10, 2021, the UAE will be the first country in the Middle East, Africa, and South Asia to host the World’s Fair.

WHAT IS THE WORLD EXPOSITION/ well as the UAE’s values of inclusion, tolerance, EXPO OR WORLD’S FAIR? and cooperation. Expo 2020 aspires to create a meaningful legacy that will benefit generations The Bureau International des Expositions (BIE) to come, both locally and globally, spanning is the intergovernmental organization in charge everything from innovations and architecture to of overseeing and regulating World Expos, since friendships and business opportunities. 1931. BIE defines expos as “large-scale, global events organized and facilitated by governments that serve to educate the public, share innovation, WHAT IS THE THEME? promote progress, and foster cooperation.” The The main theme of Expo 2020 is “Connecting Great Exhibition of 1851 in London was the first Minds, Creating the Future” and is underpinned fair. Since then, there have been dozens of others by three interwoven sub-themes: Opportunity, around the world, including Expo ’67 in Montréal Mobility, and Sustainability. The Expo 2020 Dubai and Expo ’86 in Vancouver. UAE website describes these themes as follows: World expositions are some of the greatest Opportunity: We all have the power to shape the events on earth. They showcase the best of future. Expo 2020 aims to unlock this potential in mankind’s ingenuity, debut innovations, and with multiple ways, such as supporting solutions to national pavilions, give each country a chance social problems through the Expo Live program to showcase their culture. World expos can and introducing visitors to new ideas that inspire have a major impact on a city and a country’s them to act. infrastructure and their respective economies, identities, global brands, and business Mobility: When we enable smarter movement environments. of knowledge, ideas, and goods, a new world of possibilities unfolds. Expo 2020 looks at how this has helped explore new frontiers, and how WHAT MAKES THE DUBAI EXPO humanity is making greater leaps than ever SPECIAL? through digital connectivity. The largest event ever staged in the Arab world Sustainability: The need to live in balance with is set to welcome 190 participating countries. the world we inhabit has never been more More than 25 million visitors are expected over 6 critical. Expo 2020 is embracing alternative months, and organizers expect that over 70 per sources of food, water, and clean and renewable cent of these visitors will come from outside the energy, and encouraging us all to reassess how UAE. They will experience Emirati hospitality, as we can preserve the planet. 36 37

Expo Live is a flagship program that recognizes innovation and will allocate approximately C$120 million to back projects offering creative solutions to challenges that affect people’s lives and help WHERE IS THE EXPO 2020 DUBAI matching buyers to suppliers and is designed preserve the world – or both. Grants SITE? to help small and medium enterprises (SMEs), are about C$120,000 per initiative. home businesses, and individuals to grow and The site is located between Dubai and Abu Dhabi Three Canadian companies were integrate into global supply chains. The OMP was near the Al Maktoum International Airport and chosen among 1000 applicants in inspired by the Expo 2020 Dubai theme and has the Port, approximately a 30 min drive the 2017 intake. Enersion Inc. won a commitment to allocating 20 per cent of the and short metro ride from downtown Dubai. The for its green chillers that reduce the overall spend to local and international SMEs, Expo site covers 438 hectares. cost and environmental impact of representing billions of dirhams in opportunities. air conditioners and refrigerators. This includes Canadian businesses. Attolllo won for its talking-stickers WHAT HAPPENS AFTER THE EXPO? Canadian companies interested in growing their that help children read. Plastic Bank Expo 2020 revealed its legacy plans in 2017. business through the OMP are encouraged received an Expo Live grant to offer The Expo site will be repurposed into a ‘city’ to sign up. There are resources available incentives to the poorest people called District 2020. District 2020 will house through the Canada-UAE Business Council in developing countries to recycle a combination of office, retail, residential, (CUBC) and the Canadian Trade Commissioner plastics that would otherwise end up and leisure developments, as well as all the Service (TCS) to further support interested in the world’s oceans. amenities and public facilities required for a companies. In February 2019, the CUBC and TCS vibrant campus-style business community and partnered with the Expo Procurement Team lifestyle hub. to host a webinar for Canadian companies. A The focus on legacy is a departure from copy of that presentation is available online at previously held world expos in other parts of canadauaebusiness.org. the world. Ill-conceived legacy plans can cause Visit CanadaExpo2020.ca, Canada’s official Expo considerable adverse impacts on the host’s website for more information about business With the eyes of the world on economy rather than meaningful regenerative or opportunities related to Expo 2020 Dubai. Dubai, our presence at Expo growth opportunities. 2020 affirms the vitality of Expo 2020 is an economic driver in the UAE and Canada-UAE relations, while is projected to bring returns of over US$35 billon showcasing the best Canada (C$46.7 billion). Currently, billions are being spent has to offer. We only need each year on long-term infrastructure. to look at the lasting effects that hosting two world fairs WHAT BUSINESS OPPORTUNITIES ARE AVAILABLE FOR CANADIAN has had on the fabric of our COMPANIES? own nation to understand the The Expo 2020 Dubai Online Marketplace (OMP) potential this represents for is a free of charge, interactive business to Canada and for Canadians. business (B2B), government to business (G2B) and business to consumer (B2C) platform. This THE HONOURABLE JIM CARR, is a site created for businesses to network, CANADA’S MINISTER OF advertise products and services, and compete INTERNATIONAL TRADE for opportunities across borders. The OMP is DIVERSIFICATION 38 39

WHAT IS CANADA’S PARTICIPATION 1. the design and construction of the Pavilion According to the RFP, Canada’s pavilion theme achieve its key objectives of diversifying its IN EXPO 2020 DUBAI? and site; will be “The Future in Mind.” It is intended to international markets, attracting foreign be expressive of the Exposition’s theme and investment, promoting Canadian innovation Canada officially confirmed its participation 2. the design and development of the Public will serve to deliver Canada’s message that it and international education to build support for in World Expo 2020 Dubai UAE on January Presentation/Exhibition element; is an innovation powerhouse, a leader in global Canadian initiatives and values on the world 25th, 2019, becoming one of 190 confirmed 3. the continuing operation and maintenance governance and progressive ideas, sustainably stage, and to strengthen our relationship with the participating countries. This will be Canada’s of the Pavilion and the Public Presentation/ managing its natural resources, and is open for UAE. first pavilion at a World Expo since Exhibition throughout the six-month Expo business and tourism. Canada’s pavilion will also in 2010. Expo 2020 provides a platform to Future RFPs related to content, programming, operation period; and feature three sub-themes titled: (1) Diversity: The showcase Canada’s innovation, knowledge, communications and other areas are anticipated. Source, (2) Artificial Intelligence and Machine and expertise in business and cultural pursuits 4. the dismantling and removal of the Pavilion Learning: The Enablers, and (3) Space and for which Canada is recognized around the and Pavilion components, restoration of the Aerospace: The Next Frontier. globe. Participating in Expo 2020 aligns with site to its original state and the completion of Canada’s trade diversification strategy which related documentation. The Pavilion will be the physical and visual helps Canadian exporters and investors access representation of Canada. The overarching more opportunities around the globe so they can objective of the Canada Pavilion is to present compete and succeed in thriving global markets an image of a Canada as a global leader, abroad. In 2018, the Government of Canada innovator, and ally—particularly in innovation and announced that it will invest C$1.1 billion over the sustainability—with solutions to offer the world For up-to-date information next six years to develop infrastructure that will in many different sectors, and as an ideal place about Expo 2020 Dubai and boost international trade. for study, tourism, business, investment, and Canada’s participation, stay immigration. The Canadian government tuned to the following social Canada’s participation in Expo 2020 Dubai is led will use the Pavilion as media accounts: by the Government of Canada – Global Affairs a platform to @Expo2020Dubai Canada. In January 2019, Canada’s official It is welcome news that Expo2020 expo team was announced. The team is based Canada is rejoining the Expo in Ottawa and works closely with Canadian @CanadaExpo2020 Canada’s official expo account run diplomats on the ground in the UAE. movement to participate at Expo 2020 Dubai. We by Global Affairs Canada In March 2019, the Government of Canada are looking forward to @CanadainUAE opened the first Request for Proposals (RFP) Embassy of Canada to the UAE; for the Canadian pavilion at Expo 2020 on its leveraging the Expo platform Consulate General of Canada in procurement site www.buyandsell.ca. The scope to continue to build on Dubai is for Design-Build-Operate-Maintain-Dismantle investment ties with Canada, @UAEembassyCA professional services. This includes: Canadian companies, and Embassy of the UAE in Ottawa the Canadian community @UAEConsulateTO Consulate General of the UAE in here who call the UAE their Toronto home. @CanUAEBusiness Canada-UAE Business Council HIS EXCELLENCY MOHAMMAD AL @CanadaGoExpo2020 SHAIBANI, DIRECTOR-GENERAL OF THE Canadian cultural and business DUBAI RULER’S COURT leaders that support Canada’s participation in Expo 2020 Dubai 41

SECTION 6 CANADA-UAE

Canada and the UAE enjoy a positive and Etihad Airways—between Toronto, and Dubai prosperous relationship. Despite a setback in and Abu Dhabi. There are still no direct flights the relationship between 2010 and 2012, when from the UAE to other major Canadian cities landing rights were an issue that temporarily despite the UAE’s interest in expanding to other strained relations, Canada and the UAE have parts of Canada. There are, however, many more been close allies and friendly nations for agreements that signal positive relations and decades. The landing rights issue pointed to continued progress between the two countries. a desire by the UAE to increase the flow of Many of these agreements were signed in 2018. people and goods between the two countries Canada and the UAE share common values, by increasing the number of flights and the especially with respect to tolerance, diversity, destinations within Canada for Emirates Airlines women’s rights, and free trade. Companies and Etihad Airways. Canada was purportedly from Canada and the UAE are doing business concerned about its own airlines. Air Canada successfully in both markets. One of the largest launched its non-stop service between Toronto investments into Ontario’s economy in the past and Dubai in November 2015. decade was by a UAE company, and one of In 2013, the foreign ministers of both countries the largest developments in Dubai’s history is began to rebuild relations and further reinforce managed by a Canadian company. There are the bilateral foundation. They jointly released many successes, but there is a long way to go the Canada-UAE Strategic Agenda based on to realizing the full potential of the bilateral three core themes: Prosperity, Security, and commercial relationship. The good news is that Development. Part of the Agenda and their shared private and public sector stakeholders in Canada vision was the establishment of a Canada-UAE and the UAE are working together closely to Business Council, which eventually became a achieve greater mutual prosperity. formal organization in 2016. The creation of a Canada is represented in the UAE at the Embassy UAE Consulate in Toronto and other important of Canada in Abu Dhabi and Consulate General of measures were also taken to strengthen ties. Canada in Dubai. The UAE is represented at the In May 2018, Canada and the UAE agreed to Embassy of the United Arab Emirates in Ottawa increase the number of direct flights for major and the Consulate General of the United Arab airlines—Air Canada, Emirates Airlines, and Emirates in Toronto.

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MAIN SECTORS AND COMPANIES OF INVESTMENT FROM MAIN SECTORS OF INVESTMENT FROM CANADA TO THE 6.1 TR ADE THE UAE TO CANADA (UAE MINISTRY OF ECONOMY, 2018) UAE (UAE MINISTRY OF ECONOMY, 2018)

SECTORS COMPANIES SECTORS

• Wood products industry • Dubai World • Real estate activities The UAE has consistently been Canada’s top trading partner in the MENA region. Canada is • Aircraft and parts • • Wholesale and retail trade industry the UAE’s second largest export market in North America. In terms of overall trade, there • Emirates Global • Repair of motor vehicles and motorcycles • Aluminum industry Aluminum (EGA) • Professional, scientific and technical activities is room to grow. The UAE ranks 22nd for Canada, while Canada ranks 56th for the UAE. • Oil and natural gas • Drydocks World • Construction production • TAQA • Manufacturing • Chemical products and • Abu Dhabi Investment • Financial and insurance activities BILATERAL MERCHANDISE TRADE — CANADA AND THE UAE (millions of Canadian dollars) plastics industry Company • Administrative and support service activities • Real estate activities • Danta 2014 2015 2016 2017 2018 • Information and communication • Power generating • Mubadala Investment C$1,864.4 C$2,166.3 C$1,918.5 C$1,791.5 C$1,657 • Shipping and storage Company • Education • Tourism and Travel • S.S.Lootah Group Source: Statistics Canada, 2019 • Healthcare services • Crescent Petroleum

TOP EXPORT PRODUCTS BETWEEN CANADA AND UAE (2018, BY NAICS)

CANADA’S TOP EXPORTS TO UAE UAE’S TOP EXPORTS TO CANADA

1. Oilseed 1. Ferro-Alloys (Steel) 2. Aerospace Product & Parts 2. Plastic Products 3. Dry Pea and Bean (Lentils) 3. Jewelry & Silverware 4. 4. Aluminum 6.3 AGREEMENTS & ANNOUNCEMENTS 5. Automobile & Motor Vehicle Parts 5. Petroleum Oils

Source: Trade Data Online, 2018 2019 Canada confirms its participation in World Expo 2020 Dubai UAE 2019 Canada and the UAE sign an agreement to boost cooperation in clean energy 2019 Canada joins the UAE-based International Renewable Energy Agency (IRENA) 6.2 INVESTMENT 2018 Memorandum of Understanding (MOU) to cooperate for the peaceful use and exploration of space 2018 Agreement on Consular Affairs and Services: to cooperate on bilateral consular affairs The UAE is Canada’s largest investor market from the MENA region and is among and services Canada’s top 20 investors globally. 2018 Visa exemption for Emirati citizens 2018 Canada expands its air transport agreement with the UAE, effectively increasing the DIRECT INVESTMENT IN 2017 (In millions of Canadians dollars) number of direct flights UAE DIRECT INVESTMENT TO CANADA CANADA DIRECT INVESTMENT TO UAE 2018 Canada and the UAE announce the successful completion of a foreign investment C$3,874 C$165 promotion and protection agreement (FIPA) Source: Statistics Canada, Table 36-10-0008-01 2017 Defence Cooperation Agreement 2016 Joint Economic Committee 2013 Canada-UAE Strategic Agenda 44 45

6.4 SUCCESSES

Below are just a few examples of recent bilateral successes.

CANADIAN FIRMS INVOLVED agreement to build industrial-level software IN MAJOR UAE DEVELOPMENT to monitor, predict, and interact with network PROJECTS: operators in real time and enable renewable 2nd largest manufacturing investment in the last SUPPLYING CANADIAN-MADE energy integration within the UAE power system. century in Ontario. Canadian engineering, architecture, and The software aims to help the integration and SOLAR POWER TECH TO THE UAE: construction firms are well represented in reliable operation of existing power systems In June 2017, Canadian Solar, one of the world’s the UAE and have been involved in a number MAJOR CANADIAN OIL & GAS with large scale renewable energy sources. largest solar power companies, was selected of large developments that reflect Canada’s ASSET ACQUISITION BY UAE: The project also aims to develop the knowledge as the sole module supplier to provide more commitment to the region. Many have established and capability of future engineers to cope with than 800,000 double-glass Dymond modules TAQA North—subsidiary of TAQA, a flagship local subsidiaries and have also expanded into systems employing renewable technology. (equivalent to 268MW) for the third phase of the company of the Abu Dhabi National Energy neighboring markets in the GCC region. Some 800MW Mohammed bin Rashid Al Maktoum Solar Corporation—has made significant acquisitions key ongoing construction projects that involve in Canadian oil and gas. In 2007, the company HEALTH PARTNERSHIP FOR Park in Dubai. Canadian firms include: Rosemont 5-Star Hotel acquired Calgary-based Northrock Resources KNOWLEDGE TRANSFER: & Residence (ZAS Architects + Interiors); ICD for US$2 billion (C$2.2 billion), Calgary-based UAE INVESTMENT INTO CANADIAN Brookfield Place (Brookfield); and Dubai Hills In January 2018, The Hospital for Sick PrimeWest Energy Trust for C$5 billion and the PETROCHEMICAL FACILITIES: Estates (EllisDon). The project values are US$550 Children (SickKids) in Toronto and Danat Al Canadian assets of Texas-based Pioneer Natural million (C$713 million), US$1 billion (C$1.3 billion), Emarat Hospital for Women & Children (part In 2009, Mubadala Investment Company, a state- Resources for US$540 million (C$580 million). and US$10 billion (C$13 billion) respectively. of United Eastern Medical Services Group) owned holding company of Abu Dhabi, acquired Through these acquisitions, TAQA has extensive in Abu Dhabi began a clinical partnership to Calgary-based petrochemicals manufacturer land holdings in North America with exploration COLLABORATION FOR RENEWABLE bring advanced pediatric care to the UAE. The Nova Chemicals, for US$2.3 billion (C$2.37 and production rights. In Canada, TAQA has at ENERGY TECH DEVELOPMENT: partnership covers the exchange of experience billion). Through this deal, Mubadala gained least two million acres of producing land and and knowledge, the training of physicians petrochemical assets across Canada and the one million acres of non-producing land. The In January 2019, Manitoba Hydro International, and nurses, and placing SickKids-trained USA. In 2017, Mubadala made a significant majority of this land is in Alberta, where they Khalifa University of Science and Technology, physicians at Danat Al Emarat Hospital to investment of C$2 billion to upgrade and expand operate gas plants in Sousa, Chinchaga, Valhalla, and the Abu Dhabi Transmission and Dispatch care for complicated cases utilizing SickKids two Nova Chemical facilities in the Sarnia- Whitecourt, Bearberry, Caroline, Columbia, Company (TRANSCO) signed a collaboration International clinical protocols and standards. Lambton area of Ontario. This investment was the Sundre, and Brewster. 46 47

6.5 KEY SECTORS

There are many opportunities for Canadian companies in the UAE for technology, goods, and services, including training and knowledge transfer.

The UAE is particularly interested in areas To learn more about some of these sectors, where Canadian companies traditionally excel, see the Canada-UAE Business Council’s such as Technology (Artificial Intelligence, Sector Profiles. The Sector Profiles showcase blockchain, etc.), Aerospace, Agriculture and multiple sectors in Canada and the UAE and Food, Clean Technology, Education, Healthcare, include information about key statistics, recent Infrastructure and Construction, Life Sciences government policies, strategies, and investments, (Health innovation), Oil and Gas, Renewable as well as existing bilateral partnerships, current Energy, Information, and Communications. projects, and opportunities for business.

6.6 VISITING ENTRY REQUIREMENTS

A visa prior to arrival is not required for entry As of June 2018, a visa prior to arrival is no longer into the UAE for Canadian citizens travelling with required for entry into Canada for UAE nationals. a Canadian passport that is valid for at least 6 However, UAE nationals will need an Electronic months beyond the date of entry. Visitors are Travel Authorization (ETA) to fly to, or transit able to stay for 30 days, with the option to renew through, a Canadian airport. Visitors are able to beyond those 30 days. stay up to six months. 48 49

6.7 TRAVEL

There are two ways to fly from Canada to the UAE: direct and indirect.

INDIRECT DIRECT Air Canada is a member of Star Alliance, According to the most recent flight agreement so it leverages its partner airlines and their between the countries, there is an allowance connections from Europe (Lufthansa, Austrian, for up to 17 direct flights per week between the Swiss, and Turkish Airlines) and Asia (Singapore, UAE and Canada: 7 for Air Canada (to Dubai); 5 Thailand) as alternative routes for passengers for Emirates Airlines (to Dubai); and, 5 for Etihad traveling from Canadian cities other than Toronto. Airways (to Abu Dhabi). All direct flights operate from Toronto. There are currently no direct flights Emirates Airlines flies daily direct to 11 US cities to other Canadian cities. Typical flight times are from Dubai. This includes direct flights to New 12-14 hours depending on the direction of travel York, Boston, Chicago, and Seattle, which all and the prevailing winds. provide convenient connections to Canadian cities through their codeshare agreements with WestJet, Alaska Airlines, and JetBlue. Etihad Airways operates direct flight to New York, Washington, Chicago, and LA in the US and to most major European cities. They enjoy codeshare agreements with Air Canada, WestJet, and JetBlue in North America to allow for connections through Toronto or their US destinations from other Canadian cities for their direct flights to Abu Dhabi. The distance between Dubai and Abu Dhabi is approximately 130 kilometres with a driving time of about 90 minutes so air travel to either city is fairly convenient depending on your itinerary for work and meetings in the UAE. 51

SECTION 7 BUSINESS

The UAE is an international business hub. For Westerners, the UAE offers an environment that is in many ETIQUETTE ways very familiar. The UAE is welcoming and tolerant of tourists and foreign businesses. Nevertheless, anyone interested in doing business in the UAE should have some awareness of the local culture and the basic business etiquette common in the Middle East.

7.1 LANGUAGE OF BUSINESS

English is generally understood to be a language of business and is spoken widely. Although generally not required, efforts should be made to print business cards, at the very least, and even presentation materials, in both English and Arabic, the official language of the UAE.

COMMON ARABIC EXPRESSIONS As-salamu alaikum Peace be upon you (a customary greeting) Wa alaikum as-salam And upon you be peace (the customary reply) Ma’a salamaa Goodbye Min Fadlek Please Shukran Thank you Insha’Allah God willing (a very common response when discussing next steps that does not mean ‘yes’ or ‘no’) Mabrook Congratulations

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7.2 MEETING & GREETING 7.3 AT TIRE

The UAE is very multicultural. When it comes to business, western-style etiquette is Emirati nationals typically wear traditional dress when doing business in the UAE and common. In the case of dealing with Arabs, specifically UAE and GCC nationals, the Western attire when in a Western country. following are norms to consider.

MEN’S ATTIRE WHAT TO WEAR? In the UAE it is important to take the time to build this as a sign of disrespect as it is likely due to cultural personal relationships and establish trust. A hard- reasons. One may wish to place a hand over their heart Men wear the kandura, also known as the thawb, Canadians doing business in the UAE should hitting approach to business is generally not welcome. or nod as a sign of acknowledgement instead. thobe, or dishdash(a). The kandura is an ankle dress conservatively and professionally. Men Business deals and decisions may take time and many length, loose-fitting robe, usually white in colour. should wear suits in high-level meetings meetings to develop. Gifts are a nice touch but are not expected. If one The gutrah is a typical headscarf worn by men and business casual in other settings when wants to give a gift, it should be something personal in various colours and patterns. It is draped appropriate. Sport jackets are recommended It is important to be punctual to meetings. In Arabic such as a company memento or something related to in various styles depending on preference. regardless. Women should wear business culture, people may be kept waiting before a meeting, the other’s background or hobbies. The gutrah covers the ghafiya or hat worn over clothing that covers their arms and legs at least but this is less common than in the past. It’s best to be the head. The agal is a black band secured to the knee. It is not necessary for women to patient and not take tardiness as a sign of disrespect. As part of the hospitality culture in the UAE, guests tightly around the gutrah to keep it in place. On wear a headscarf. It is recommended that women will be offered refreshments in a meeting. Often their feet, men typically wear sandals with the carry a light jacket or a scarf to be prepared for Always greet and acknowledge the most senior person guests will be served tea or coffee, and sometimes kandura. a more conservative situation and even air- first when meeting a group of people. This is a sign of dates. When cardamom-flavoured Arabic coffee is conditioned interiors that can be chilly. respect. offered, a coffee server will keep filling the small coffee cup until the recipient shakes it left to right to WOMEN’S ATTIRE Outside of business hours, and in certain parts of communicate being done. the country, foreigners can be seen wearing typical Status is important. Use Sheikh or Sheikha or Your Women wear the abaya, an elegant long cloak, casual hot-weather western clothing such as Highness to address members of the ruling family. traditionally black in colour, which covers the shorts, bikinis, dresses, workout gear, and t-shirts. When addressing government ministers or senior Meetings should start with a brief conversation, whole body. Abayas can be plain or include ranking diplomats, use Your Excellency. Find out rather than jumping straight into business. It is always embellishments and embroidery. Some women Signage throughout the UAE reminds visitors to beforehand if the minister is royalty and should good to ask about the health and well-being of the may choose to wear a hijab to cover their hair, dress modestly and appropriately for the venue or therefore be addressed as Your Highness. When counterpart’s family in general terms. It is best not to ears, and neck. One of the most popular styles activity. Dubai is more lenient during the evenings addressing others, one should use Sayed (Mr.) or directly ask questions about a wife or daughter as this of hijab in the UAE is the shayla, which consists in locations where nightlife comes alive. Sayeda (Mrs.). It is common to hear someone referred is considered private information. of a long, rectangular scarf that crosses over In short, the UAE is very open compared with other to Mr./Mrs. [First name]. E.g. Mr. John for John Smith. the shoulder, and is traditionally black in colour. countries in the region; anything goes. One should It is common for meetings to be interrupted by other Women may also choose to wear a gishwa or a remember, however, that they are representing One should always use their right hand for guests, telephone conversations, or text messages. Do burqa, which are different ways to provide more their company and country while in the UAE, which handshakes. Handshakes may last a long time. It is not take this as a sign of disrespect. coverage including to the face, though these are is a progressive, yet Islamic nation. recommended that one waits for the other to withdraw not typical to see in a UAE business setting. It is their hand first before doing the same. One’s word means a great deal. In the UAE, oral not uncommon for Emirati women in business to agreements can be considered binding and any wear makeup and high heels. When introduced to a member of the opposite sex, it is negotiator must be careful not to commit verbally advisable to wait and see if a hand is extended first. If unless they intend to do. not, refrain from the initial handshake and do not take 54 55

7.5 WORKING HOURS & HOLIDAYS

WORKING HOURS IN THE UAE The UAE’s typical work week runs from Sunday to Thursday, with Friday and Saturday being the official weekend. Government offices typically open at 7:30am and close at 2:30 or 3:00pm. Private offices tend to keep longer hours, adopting either a “straight shift” (ex. from 9am to 5pm) or a “split shift” (ex. from 8am to 1pm and 4pm to 7pm). During Ramadan, working hours are shortened by two to three hours with most of the work accomplished in the early hours of the morning or much later in the evening after the day’s fast is broken (at sunset).

PUBLIC HOLIDAYS IN THE UAE

HOLIDAY DATE (GREGORIAN) DATE (ISLAMIC) DAYS OFF New Year’s Day January 1 N/A 1 Day Al Isra'a Wal Mi’raj – Ascension Day* N/A 27 Rajab 1 Day Eid Al Fitr* N/A 1 Shawwal 3 Days Arafat Day* N/A 9 Dhu al Hijjah 1 Day Eid Al Adha – Feast of Sacrifice* N/A 10 Dhu al Hijjah 3 Days Al Hijri - Islamic New Year* N/A 1 Muharram 1 Day November 30 N/A 1 Day National Day December 2 N/A 2 Days 7.4 GENDER Birthday of Prophet Mohammad* N/A 12 Rabi al Awwal 1 Day * Islamic holidays are determined according to the lunar calendar and thus the dates change annually. Source: Official Portal of the UAE Government, 2019 One of the most common questions Canadians When doing business with an Emirati woman, be In March 2019, the UAE Government approved public ask before doing business in the UAE is about the respectful and professional. A man should only holidays for the public sector and granted the private status of women. Previous sections of this Guide shake hands if she shakes his hand first. sector equal holidays in an effort to bring balance explained the UAE’s progress and emphasis on As a Canadian woman doing business in the UAE, and further support the economy. women’s empowerment. do not shake a man’s hand unless he does so first.

Other frequently asked questions are: Dress modestly and conservatively. • How do I conduct business with Emirati Women are welcome to participate fully in meetings women? and often do. Women may also lead the meetings and could be the most senior people in the room. • How do I conduct business as a Canadian woman? 57

SECTION 8 ESTABLISHING A BUSINESS Once an individual or company decides to setup a business in the UAE, their first decision is whether they should setup an entity in one of the Emirates in the UAE (also known as mainland or onshore company), in a free zone, or as an off-shore company or commercial agency.

Every company setup in the UAE is provided a manufactured, reconfigured or re-exported ‘license’ for its activities. The license types or without the intervention of the customs authority. categories can be broadly classified into four Only when the goods are moved to consumers types: (1) service license; (2) commercial or within the country do they become subject to the trading license; (3) industrial license; and (4) prevailing customers duties. There are more professional license. than 45 free zones in the UAE. Each has its own licensing regime and regulatory authority. ONSHORE OFFSHORE Businesses can be either licensed through the economic department of one of the Emirates or Individuals and companies that do not set up a through free zones. Companies licensed through physical presence in the UAE are called offshore the economic department of an Emirate are companies. They can only conduct limited entitled to undertake those activities covered business through specified free zones. Another by its license within that Emirate. These are way to do business in the UAE without setting mainland or onshore companies. up a physical presence is through a commercial agency or local agent that handles all trading, FREE ZONES buying, and selling. Free zones are separate geographical areas There are advantages and disadvantages to each located in various Emirates. A free zone, which is structure. It is advised that Canadians work with also often called a free trade zone or economic professionals to know these well before making a zone, is a designated area where certain tax decision. restrictions on business, employment or trade Read the following section to learn more, and do not apply in the same manner that they apply see the Appendix for a Business Structures to the country in which the zone is located. In Comparison Chart. a free zone, goods may be landed, handled,

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8.1 MAINLAND OR ONSHORE COMPANY Both types of offices require the appointment of company but is paid to assist the company in a UAE national as a local service agent (LSA). obtaining the proper documentation and deal with The LSA is not involved in the operations of the administrative matters.

Companies established on the mainland Businesses wanting to establish onshore are As of October 30, 2018, the restrictions on onshore company ownership have been loosened through (onshore) are governed by the UAE’s Federal Law restricted in that a UAE partner(s) must hold at the UAE’s Federal Law No. 19 of 2018 on Foreign Direct Investment. This new law allows up to No. 2 of 2015 on Commercial Companies (CCL). least 51 per cent of share capital of the company. 100 per cent foreign ownership of onshore companies working in specific strategic sectors. These The application of this law and the list of licensed Ownership structure does not necessarily dictate sectors (called “the positive list”) are currently being decided by an FDI Committee and will be activities allowed is different in each emirate. how profits and management is allocated. Often proposed to UAE Cabinet for approval at an unspecified date. Under the CCL, business entities shall take one of protections are put in place to provide the foreign the following five structures (only those listed in shareholder with a higher level of comfort in italics may have part foreign ownership): regard to benefits and controls of a company. These protections are implemented through a 1. Joint Liability Company: a company formed series of contractual agreements to govern the by two or more partners who are jointly liable 8.2 FREE ZONE COMPANY relationship between UAE partner(s) and the to the extent of their entire personal wealth foreign shareholder. for the company’s obligations; Free zones were introduced throughout the UAE There are approximately 45 free zones in the 2. Simple Commandite Company: a company MAINLAND BRANCH & to attract foreign investment. They are a one- UAE. Each one caters to specific activities and or formed by two or more partners who REPRESENTATIVE OFFICES stop-shop option that offer incentive packages industries. A list of these free zones can be found are jointly liable to the extent of their to make setting up a company easier. Free in the appendix of this guide. The following is a entire personal wealth for the company’s Establishing a branch office or representative zones allow companies (either LCCs, Branch list of some of the largest free zones in the UAE, obligations and other partners, who have office are two other options for companies Offices, or Representative Offices) to have 100 and two main financial free zones in the UAE: invested in the company but are not involved wanting to locate onshore. These options per cent foreign ownership as well as provide in its management, ie limited partners, who allow firms to retain 100 per cent ownership. incentives such as easy start-up and licensing are liable for the company’s obligations only Unlike the other business structures, branch DUBAI MULTI COMMODITIES procedures, zero or low taxes, and various to the extent of the capital contributed by or representative offices can only carry out CENTRE (DMCC) supports. Companies located in a free zone are them; specific activities and are usually excluded from not permitted to carry out business activities in DMCC was established in 2002 to enhance commercial and trading activities. The activities 3. Limited Liability Company: a company mainland UAE. commodity flows through Dubai. Today, it is allowed of these businesses vary depending on formed by one or more people who are a global centre for 15,000 businesses in a the emirate. The decision to choose between establishing not personally liable for the company’s wide range of industries and sectors, such as an onshore company or locating in a free zone obligations; • Branch Office: an office that is an extension agriculture, energy, finance, diamonds, gold, and depends greatly on the location of clients and of the parent company and is permitted base metals. 4. Public Joint Stock Company: a company customers, and on the nature of the business to perform contracts and conduct other in which shares of the company’s stock activity. For example, locating in a free zone activities locally as specified in its license; can be bought and sold by the public as may make more sense if the customer base is RAS AL KHAIMAH ECONOMIC ZONE shareholders; • Representative Office: an office limited across the MENA or GCC regions rather than (RAKEZ) to gathering information, carrying out 5. Private Joint Stock Company: a company in purely in the UAE. The choice between free zones In 2017, RAKEZ was established to oversee and marketing, and or soliciting orders and which shares of the company’s stock can be depends largely on the industry or sector of the consolidate the specialized parks and clients projects to be performed by the company’s bought and sold privately by a relatively small business, since most each free zone has its own of both Ras Al Khaimah Free Trade Zone (RAK head office. number (no more than 200) of shareholders geographic, sector-specific, and service benefits FTZ) and Ras Al Khaimah Investment Authority or company members. to compare and consider. (RAKIA). RAKEZ is an investment destination for over 13,000 companies from 100 countries. 60 61

JEBEL ALI FREE ZONE (JAFZA) DUBAI AIRPORT FREE ZONE 8.3 OFFSHORE COMPANY OR COMMERICAL AGENCY (DAFZA) Founded in 1985, Jafza has grown from 19 companies to over 7,500 today, which includes 100 DAFZA hosts over 1,450 free zone entities. It is a Global Fortune 500 companies. Jafza is a leading services and logistics hub located in the centre of For those wishing to carry out business in the • A commercial agency is a company that free trade zone in the world and the region’s most Dubai near the Dubai International Airport, which UAE without a physical presence, there are two enlists a local commercial agent to represent efficient logistics hub, located next to Jebel Ali allows for express cargo clearance. options: establishing an offshore company or them within the UAE through distribution, Port (8th largest in the world) and Al Maktoum establishing a commercial agency. selling, or providing goods and services. International Airport (largest in the world). Jafza DUBAI INTERNATIONAL FINANCIAL • An offshore company is a company that Commercial agencies are an attractive option for accounts for approximately 32 per cent of total CENTRE (DIFC) cannot conduct commercial activities, foreign companies wishing to trade onshore in FDI flow into the country and contributes 21 per but can carry out other activities such as the UAE with minimal investment and less risk. cent of Dubai’s GDP. Member companies serve DIFC is a free zone in established in 2004 in international trading, consulting, or owning They are governed by the UAE’s Federal Law 18 of more than 3.5 billion customers. Dubai that has its own civil and commercial laws, and its own English-language common-law assets or real estate; 1981 Concerning the Organisation of Commercial Agencies as amended, also known as the courts. DIFC is modeled on international best Offshore companies can only be established SHARJAH AIRPORT Commercial Agencies Law (CAL), and must be practice and has been designed to appeal to the in free zones, specifically, INTERNATIONAL FREE ZONE (SAIF- registered with the UAE Ministry of Economy. international business community. The currency in Dubai, the Ras Al Khaimah Free Trade Zone ZONE) used in the DIFC is the U.S. dollar. in Ras Al Khaimah, or the Ajman Free Zone in Sharjah’s SAIF ZONE is accessible to seaports Ajman. Offshore companies established in one of on the Gulf of Oman (Port Khor Fakkan) and the ABU DHABI GLOBAL MARKET these three free zones are governed by the rules Arabian Gulf (Port Khalid), and is built adjacent to (ADGM) and regulations of that specific free zone, which the Sharjah Airport. SAIF-ZONE offers its 4,000+ are dictated by its regulatory authority. Each clients base manufacturing facilities, storage, ADGM is an international financial center free zone also has a licensing authority which workforce aid, and networking opportunities with that opened in October 2015. Established by is responsible for issuing licenses to offshore world-class companies operating in the region. UAE Federal Decree, ADGM plays a pivotal companies. role in augmenting Abu Dhabi’s position as a global business and financial hub, connecting the Middle East, Africa, and South Asia and the rest of the world. ADGM helps financial entities and firms to operate and grow within an international regulatory framework that is based on Common Law. 63

SECTION 9 LABOUR

Private sector labour is governed by the UAE’s Federal Law No. 8 of 1980 Regarding the Organisation of LAWS Labour Relations as amended, also known as the UAE Labour Law. The Labour Law handles matters related to working hours, vacation and public holidays, sick leave, employing juveniles, maternity leave, employee records, safety standards, termination of employment, medical benefits, and end of service gratuity payments. Some free zones have their own rules and regulations as dictated by their respective free zone authority. The Ministry of Human Resources and Emiratisation is responsible for overseeing employer-employee relations and maintaining labour rights for the private sector.

9.1 EMIRATISATION

UAE nationals are called Emiratis. Emiratisation is a set of procedures aimed at including more nationals in the workforce in order to reduce reliance on an expatriate workforce, empower the local population, and build multi-sectoral capacity and skill sets among employable citizens.

There are a series of Ministerial Resolutions that mandate certain businesses in the private sector to employ nationals: companies with over 50 employees or more must have 2 per cent of their employees as UAE Nationals; Emiratis should make up 5 per cent for the insurance sector, and 4 per cent of the banking sector; companies with 100 employees or more must employ a UAE or GCC national as a public relations officer; companies with more than 1,000 employees must employ at least two UAE nations to access and enter data on the national labour system; construction companies with more than 500 employees or more should have a UAE National as an occupational health and safety officer.

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9.2 VISAS FOR FOREIGN WORKERS

To live and work in the UAE, an expatriate or foreigner, also called a foreign national, must be sponsored on the basis of ownership of a business in the UAE or through an employment contract with an employer in the UAE. The sponsorship requirements include obtaining a work permit (issued by the Ministry of Labour) and a residence visa (issued by the General Directorate of Residency and Foreign Affairs, specific to the emirate of choice).

FOREIGN NATIONAL BUSINESS FOREIGN NATIONAL EMPLOYEE OWNER/ PARTNER It is the employer’s responsibility to process and Once a license to do business is received, a obtain permits and visas for foreign national company must designate a UAE national as the employees. To apply for a work permit and Public Relations Officer (PRO) who will then residence visa, an employment offer, signed by deal with the Ministry of Labour and the General both the employer and the employee, must first Directorate of Residency and Foreign Affairs on be submitted to the Ministry of Human Resources behalf of the company. If a partner of a company and Emiratisation (or free zone authority if the is a foreign national, then the PRO will act as the employer is established in the free zone). sponsor for their work permit and residency visa. Fixed-term contracts cannot exceed a two-year term on the mainland and a three-year term in a free zone. The contract can be renewed at the end of the fixed term for equal or shorter periods. 67

SECTION 10 TAXATION

The UAE currently does not charge personal income tax, capital gains tax, withholding tax, or foreign exchange controls on the remittance of profits or repatriation of capital.

10.1 CORPORATE TAX

The UAE does not currently have a federal business in their respective emirate. However, in corporate tax system; instead, the responsibility practice, taxes are only enforced on oil and gas of taxation is up to the individual emirate, with companies and foreign banks. four of the seven emirates having their own If a business is established in a free zone, they tax decrees (Abu Dhabi, Dubai, Sharjah, and receive a tax holiday (no corporate tax) of 50 Fujairah). These decrees impose corporate taxes years. on all corporate entities carrying out trade or

10.2 VALUE-ADDED TAX (VAT)

The UAE has a value-added tax (sales tax) Businesses with a taxable turnover of AED of five per cent on most goods and services. 375,000 (approximately C$135,000) are required The equivalent to VAT in Canada is the Goods to register for VAT, while businesses under and Services Tax (GST). The UAE’s VAT was this threshold may voluntarily register. Once implemented in 2018 and is governed by the registered, businesses and traders must charge UAE’s Federal Law No. 8 of 2017 on Value-Added VAT (output tax) to all of their customers at the Tax and the Cabinet Decision No. 52 of 2017 on standard rate (5%) and incur VAT on goods/ the Executive Regulations of the Federal Law No services that they buy from suppliers (input tax). 8 of 2017 on Value Added Tax. The input tax can be reclaimed by businesses provided that they have a tax invoice or other evidence of having paid VAT on their business expenses.

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ZERO-RATE VAT & EXEMPTIONS 10.3 CUSTOMS DUTY Although most goods and services are subject to supplier cannot recover any VAT on expenses the standard VAT rate there are some zero-rate incurred in making exempt supplies. These items. These are goods and services that are still include: The UAE generally applies a flat-rate of 5 per cent • Imports by philanthropic societies (charities); VAT taxable, but the rate is zero per cent. These customs duty on the cost, insurance, and freight • Local Passenger Transportation; • Imports into free zones; include: of all imported/exported goods. However, specific • Residential Buildings (not including zero- goods can expect to pay higher duties, namely • Imports of national goods originating in GCC • Goods and Services for Export; rated); alcoholic products (duty of 50%) and tobacco member states and member countries of the • International Movement of Goods; Greater Arab Free Trade Agreement (GAFTA) • Bare Land; (duty of 100%). and Singapore. • International Passenger Travel; • Certain Financial Services. Custom duty exemptions include: The same customs duty and exemptions are • Certain Preventative and Basic Health Care • Imports of diplomatic corps, consulates, applied across the Gulf Cooperation Council Services; international organizations, and the members DESIGNATED ZONES (GCC) countries as part of the GCC Customs of the diplomatic and consular corps • Certain Educational Services; Designated zones are free zone areas treated Union (established in 2002). The law that governs accredited by government; • First Sale/Rent of Residential Buildings; for tax purposes as though they are outside of customs duty is the GCC’s Common Customs the UAE. Cabinet Decision No. 52 of 2017 on • Imports for all sectors of the military forces Law. • Certain Investment Precious Metals; Executive Regulations classifies a number of free and internal security forces; • Aircrafts or Vessels Designated for Rescue zones in the UAE as Designated Zones. These and Assistance by Air or Sea; zones are also subject to special rules regarding VAT (see table below). • Crude Oil & Natural Gas. A list of designated zones can be found in the 10.4 OTHER TAXES There are also goods and services that are appendix of this guide. exempt from the VAT. VAT is not charged and the MUNICIPALITY TAXES EXCISE TAX

VAT TAXABILITY ON SUPPLY OF GOODS FOR DESIGNATED ZONES Service fees (also known as tourism fees) are Excise tax was introduced across the UAE in FROM TO TAX often imposed on accommodation services, 2017 under Federal Law No 7 of 2017 on Excise Designated Zone Designated Zone Non-Taxable restaurants, and entertainment across the UAE. Tax. Excise tax is a form of indirect tax levied Designated Zone Mainland Taxable at 5% VAT The rates vary among the emirates, but generally on specific goods which are typically harmful to Mainland Designated Zone Taxable at 5% VAT fall between 3.5 per cent and 7 per cent, as of human health or the environment. These goods Designated Zone Overseas/ GCC Countries Non-Taxable 2018. These service fees are usually included in are referred to as “excise goods”. These taxes are Overseas/ GCC Countries Designated Zone Non-Taxable the customer’s bill, which the municipality then applied to carbonated drinks (50%), energy drinks collects from the restaurant and hotels. (100%), and tobacco products (100%). Source: TallySolutions, 2018 Most emirates also impose a tax on the annual rental value of residential properties for expatriates. The rates vary among the emirates, however, both Abu Dhabi and Dubai charge a rate of 5 per cent. The overall amount is divided by 12 months and charged with the utility bill. 71

SECTION 11 TIPS

1. Success in your home market does not guarantee 7. Do not assume free-zones are the best options success abroad. Take time to conduct proper for establishing a business or that restrictions on due diligence, study the market thoroughly, foreign ownership should be avoided at all costs. and consider things like cultural adaptations to Take time to determine the best legal set-up products, services, marketing, etc. options based on your intended business activity. Professional advice is strongly advised. 2. Follow up is very important. Email is fine, but phone and WhatsApp, which is widely used in 8. Businesses in doubt as to whether they, or others business, can bring a better response rate. in their supply chain are covered by a Designated Zone, should seek counsel from UAE-based law, accounting, and/or business consulting firms. 3. Build personal relationships before entering into a business deal. Make efforts for regular face-to- face engagements. 9. Contact the many federal, provincial, and Emirate-based resources that are available to Canadian companies interested in seeking new 4. Business people in the UAE are just as astute as markets. They will point you in the right direction. anywhere else and there are varying degrees of See the list provided in Section 12. wealth throughout the country. It is incorrect to assume that everyone has extreme wealth or that they are willing to invest without due diligence. 10. Join a business council to become a member of the right group to support your business goals in the UAE and the many countries that the UAE 5. The UAE is an ideal base to capture opportunities serves as a strategic business and logistics hub. across the GCC and Middle East. However, each See the list provided in Section 12. country has its own unique culture, market, system of government, laws, and ways of doing business which could vary greatly from the UAE.

6. Local laws and regulations are constantly being updated. Be aware of these updates and be prepared to adapt quickly as transition periods tend to be shorter than in Western countries. Also, local laws between Emirates could vary as well.

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SECTION 12 RESOURCES CANADA

FEDERAL Northwest Territories: • Embassy of Canada to the United Arab • Northwest Territories Department of Emirates in Abu Dhabi Industry, Tourism, and Investment • Consulate General of Canada in Dubai Nova Scotia: • Canadian Trade Commissioner Service • Nova Scotia Department of Business • Export Development Canada • Invest in Canada Ontario: • Global Affairs Canada; International Trade • Ontario Department of Economic Diversification Canada Development, Job Creation, and Trade

PROVINCES AND TERRITORIES Prince Edward Island: • Prince Edward Island Department of Alberta: Economic Development and Tourism; Innovation PEI/Trade Team PEI • Alberta Department of Economic Development and Trade; Invest Alberta Québec:

British Columbia: • Québec Department of Economy and Innovation • Trade and Invest British Columbia

Saskatchewan: Manitoba: • Saskatchewan Investment and Economic • Manitoba Department of Growth, Trade, and Development; Saskatchewan Trade & Export Investment Partnership

Newfoundland and Labrador: Yukon: • Newfoundland and Labrador Department of • Yukon Economic Development Tourism Culture, Industry, and Innovation

New Brunswick: MAJOR CITIES

• Opportunities New Brunswick • Consider Canada City Alliance • Toronto Global

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• Montreal International • Economic Development Winnipeg BUSINESS COUNCILS AND CHAMBERS OF COMMERCE • Vancouver Economic Commission • Hamilton Economic Development • Canada-UAE Business Council • Abu Dhabi Chamber of Commerce & Industry • Calgary Economic Development • Waterloo Economic Development Corporation • Canadian Business Council of Abu Dhabi • Ajman Chamber of Commerce & Industry • Invest Ottawa • London Economic Development • Canadian Business Council of Dubai and • Dubai Chamber of Commerce & Industry Northern Emirates • Edmonton Global • Halifax Partnership • Fujairah Chamber of Commerce & Industry • Canada-Arab Business Council • Québec International Economic Development • Saskatoon Region Economic Development • Ras Al Khaimah Chamber of Commerce & Authority • Business Council of Canada Industry • Canadian Chamber of Commerce • Sharjah Chamber of Commerce & Industry • UAE Federation of Chambers of Commerce & • Umm Al Quwain Chamber of Commerce & UAE Industry Industry

FEDERAL Sharjah: • Embassy of the United Arab Emirates in • Sharjah Economic Development Department; Ottawa Sharjah Investment and Development Authority (SHUROOQ); Sharjah FDI Office • Consulate General of the United Arab (Invest in Sharjah) Emirates in Toronto

• UAE Ministry of Foreign Affairs and Ras Al Khaimah: International Cooperation • Ras Al Khaimah Department of Economic • UAE Ministry of Economy Development

EMIRATES Ajman: • Ajman Department of Economic Development Abu Dhabi:

• Abu Dhabi Department of Economic Fujairah: Development; Abu Dhabi Council for • Fujairah Department of Economic Economic Development; Abu Dhabi Development Investment Office

Umm Al Quwain: Dubai: • Umm Al Quwain Department of Economic • Department of Economic Development Dubai; Development Dubai Investment Development Agency (Dubai FDI); Dubai Export Development Corp.; Dubai Trade 77

SECTION 13 APPENDIX 13.1 BUSINESS STRUCTURES COMPARISON CHART

BUSINESS STRUCTURE OWNERSHIP REGULATION & LICENSING ACTIVITY LIMITATIONS

MAINLAND/ONSHORE

Joint Liability Company UAE Nationals Governed by Federal CCL; N/A Only Licensed by Emirate Simple Commandite Company UAE Nationals Governed by Federal CCL; N/A Only Licensed by Emirate Limited Liability Company UAE National Governed by Federal CCL; N/A 51%, Foreign 49% Licensed by Emirate Public Joint Stock Company UAE National Governed by Federal CCL; N/A 51%, Foreign 49% Licensed by Emirate Private Joint Stock Company UAE National Governed by Federal CCL; N/A 51%, Foreign 49% Licensed by Emirate Branch Office Foreign 100% Governed by Federal CCL; May only perform contracts and conduct Licensed by Emirate other activities on the mainland as an extension of the parent company and as specified in its license. Must have a local service agent. Representative Office Foreign 100% Governed by Federal CCL; May only gather information, carry out Licensed by Emirate marketing activities, and or soliciting orders and projects to be performed by the company’s head office. Must have a local service agent.

FREE ZONE

Limited Liability Company Foreign 100% Governed & Licensed Cannot perform business activities on by Free Zone Authority mainland. Branch Office Foreign 100% Governed & Licensed Cannot perform business activities on by Free Zone Authority mainland. May only perform contracts and conduct other activities on the mainland as an extension of the parent company and as specified in its license. Must have a local service agent. Representative Office Foreign 100% Governed & Licensed Cannot perform business activities on by Free Zone Authority mainland. May only gather information, carry out marketing activities, and or soliciting orders and projects to be performed by the company’s head office. Must have a local service agent.

OFFSHORE

Offshore Company (LLC) Foreign 100% Governed & Licensed Can only be established in three specific by Free Zone Authority UAE free zones—Jebel Ali Free Zone, Ras Al Khaimah Free Trade Zone, or Ajman Free Zone. Cannot conduct commercial activities. Commercial Agency Foreign 100% Governed by CAL, Must enlist a local commercial agent. Registered with UAE Ministry of Economy 76 78 79

13.2 LIST OF UAE FREE ZONES & DESIGNATED ZONES

Free zones have existed in the UAE for decades. They are geographical areas where special business rules apply. Designated Zones are free zones established in 2017 in the UAE that are subject to special rules regarding value-added tax (VAT). Free Zones that are also classified as Designated Zones are italicized.

FREE ZONES IN ABU DHABI Dubai Healthcare City RAK Maritime City Abu Dhabi Airports Free Zone Dubai Industrial Park Dubai Textile City (See Jebel Ali Free Zone Authority) Ras Al Khaimah Free Trade Zone

Abu Dhabi Global Market Dubai International Academic City International Humanitarian City Ras Al Khaimah Media Free Zone Khalifa Industrial Zone Abu Dhabi Dubai International Financial Centre Jebel Ali Free Zone Authority FREE ZONES IN FUJAIRAH Masdar City Free Zone Jumeirah Lakes Towers Free Zone (See Dubai Multi Commodities Centre) Creative City Fujairah TwoFour54 Abu Dhabi Fujairah Free Zone Dubai Logistics City FREE ZONES IN DUBAI Free Zone Area in Al Quoz Fujairah Oil Industry Zone Dubai Maritime City Authority Dubai Airport Free Zone Free Zone Area in Al Qusais FREE ZONES IN UMM AL QUWAIN Dubai Auto Zone Dubai Multi Commodities Centre FREE ZONES IN SHARJAH UAQ Free Trade Zone Dubai Aviation City Dubai National Industries Park Hamriya Free Zone Authority Dubai Cars and Automotive Zone FREE ZONES IN AJMAN Dubai Outsource City Sharjah Airport International Free Zone Dubai Design District Dubai Science Park USA Regional Trade Center Ajman Free Zone Dubai Flower Centre Dubai Silicon Oasis Free Zones in Ras Al Khaimah Dubai Gold and Diamond Park 80 81

13.3 SOURCES

Baker, McKenzie, Habib Al Mulla. (2017). Doing Value-Added Tax. Source: https://government. PwC. (2015). Doing Business in the UAE – A Tax UAE. Source: https://tallysolutions.com/mena/ Business in the United Arab Emirates. Source: ae/-/media/Information-and-services/Finance- and Legal Guide. Source: https://www.pwc.com/ designated-zone-uae-vat/ https://www.bakermckenzie.com/-/media/files/ and-Investment/En-VATDecreeLawNo8of2017. m1/en/tax/documents/doing-business-guides/ UHY. (2015). Doing Business in the United Arab insight/publications/2017/05/doingbusinessuae/ ashx?la=en doing-business-guide-uae.pdf Emirates. Source: http://www.uhy.com/wp- bk_uae_dbi_2017.pdf?la=en Government of the United Arab Emirates. (2015). RSM International (2018). A Guide to Doing content/uploads/Doing-Business-in-United- CIA World Factbook. (2018). The United Arab Federal Law No. 2 of 2015 on Commercial Business in the UAE. Source: https://www.rsm. Arab-Emirates.pdf Emirates. Source: https://www.cia.gov/library/ Companies. Source: http://ejustice.gov.ae/ global/uae/sites/default/files/media/publications/ US-UAE Business Council. (2018). Doing publications/the-world-factbook/geos/ae.html downloads/latest_laws2015/federal_law_2_2015_ dbi_uae_3.4.2.pdf Business in the United Arab Emirates. Source: commercial_companies_en.pdf Dechert LLP. (2018). The Essential Guide to Statistics Canada. (2018). International https://www.usuaebusiness.org/wp-content/ Setting UP Business in the United Arab Emirates. Government of the United Arab Emirates. Investment Position, Canadian Direct Investment uploads/2018/05/Doing-Business-in-the- Source: https://www.dechert.com/content/dam/ (1981). Federal Law No. 18 of 1981 Concerning Abroad and Foreign Direct Investment in Canada, UAE-2018.pdf dechert%20files/publication/2018/1/The%20 the Organisation of Commercial Agencies. by Country, Annual (x 1,000,000). Table 36-10- World Trade Organization. (2018). United Arab Essential%20Guide%20to%20setting%20up%20 Source: http://www.unindustria.bo.it/flex/ 0008-01 Source: https://www150.statcan.gc.ca/ Emirates Trade Profile. Source: https://www. business%20in%20the%20UAE%20-%2001-18.pdf cm/pages/ServeAttachment.php/L/IT/D/ t1/tbl1/en/tv.action?pid=3610000801 wto.org/english/res_e/statis_e/daily_update_e/ D.89c45713e2df5d541d60/P/BLOB:ID%3D27762 Government of Canada. (2018). Trade Data Online. Tally Solutions. (2018). VAT on Designated Zone in trade_profiles/AE_e.pdf Source: http://www.ic.gc.ca/eic/site/tdo-dcd.nsf/ Gulf Cooperation Council Secretariat-General. eng (2002). Common Customs Law, Rules of Implementation and Explanatory Notes. Source: Government of the United Arab Emirates. (N.D.). https://www.dubaicustoms.gov.ae/en/Publications/ About the UAE. Source: https://www.government. Documents/GCCCommonCustomsLawEnglish.pdf ae/en/about-the-uae Gulf News. (2017). 45 Free Zones in the UAE: Find Government of the United Arab Emirates. (2018). the Right One for your New Business. Source: Federal Law No. 19 of 2018 on Foreign Direct https://gulfnews.com/lifestyle/community/45-free- Investment. Source: http://www.economy.gov. zones-in-the-uae-find-the-right-one-for-your-new- ae/LawsAndRegulationsEn/Federal%20Law%20 business-1.1716197 Regarding%20Foreign%20Direct%20Investment. pdf Netherlands Worldwide. (2017). Doing Business in the United Arab Emirates. Source: https:// Government of the United Arab Emirates. (2017). www.netherlandsworldwide.nl/binaries/ Cabinet Decision No. 52 of 2017 on the Executive en-nederlandwereldwijd/documents/ Regulations of the Federal Law No 8 of 2017 on publications/2017/10/29/doing-business-in-the- Value Added Tax. Source: https://www.mof.gov. uae/Doing+Business+in+the+UAE.pdf ae/en/lawsAndPolitics/CabinetResolutions/ Documents/Cabinet%20Decision%20No%2052%20 HSBC Group and Grant Thornton. (2016). Doing of%202017.pdf Business in the UAE. Source: https://www. business.hsbc.co.in/-/media/library/markets/uae/ Government of the United Arab Emirates. (2017). pdf/uae-countryguide.pdf Federal Law No. 8 of 2017 Federal Law 18 on 82 83

13.4 ACRONYMS

AED UAE Dirham / Emirati Dirham (official currency abbreviation); “DH” or “DHs” B2B Business to Business B2C Business to Consumer CAL Commercial Agencies Law CCL Commercial Companies Law CUBC Canada-UAE Business Council ETA Electronic Travel Authorization FNC Federal National Council FIPA Foreign Investment Promotion and Protection Agreement G2B Government to Business GAFTA Greater Arab Free Trade Agreement GCC Gulf Cooperation Council GDP Gross Domestic Product GST Goods and Service Tax IRENA International Renewable Energy Agency LSA Local Service Agent MENA Middle East Norther Africa MNCs Multinational Corporations MOU Memorandum of Understanding OMP Online Marketplace RFP Request for Proposal SMEs Small and Medium-Sized Enterprises TSC Canadian Trade Commissioner Service UAE United Arab Emirates VAT Value-Added Tax

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